Click here to close now.

Welcome!

.NET Authors: Greg O'Connor, Jayaram Krishnaswamy, Adine Deford, Peter Silva, Pat Romanski

News Feed Item

Commercial Solutions Announces Fiscal 2012 Net Earnings of $1.0 Million, Up by 4.3% from Prior Year

EDMONTON, ALBERTA -- (Marketwire) -- 12/17/12 --


          ------------------------------------------------------------------
All                                                                         
 figures       For the three months ended       For the twelve months ended 
 in CAD                      September 30                      September 30 
          ------------------------------------------------------------------
                                        %                                 % 
                 2012         2011 Change          2012         2011 Change 
          ------------------------------------------------------------------
Revenue   $28,017,866  $29,182,088   -4.0% $115,701,729 $107,702,207    7.4%
EBITDA                                                                      
 (i)      $   139,779  $ 1,458,767  -90.4% $  3,906,215 $  4,339,969  -10.0%
Net                                                                         
 (Loss)                                                                     
 Earnings $  (266,493) $   559,633 -147.6% $    950,584 $    911,403    4.3%
Basic EPS                                                                   
 (ii)     $     (0.01) $      0.03         $       0.05 $       0.04        
Diluted                                                                     
 EPS (ii) $     (0.01) $      0.03         $       0.04 $       0.04        
          ------------------------------------------------------------------
                                                                            
(i) EBITDA is defined as Earnings Before Interest, Taxes, Depreciation &    
Amortization                                                                
(ii) EPS is defined as Earnings (Loss) Per Share                            

COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission equipment, oilfield, industrial, and safety products today announced its financial results for the three-month and twelve-month periods ended September 30, 2012. A complete copy of the Company's report will be available on the Internet at www.sedar.com.

Financial highlights from fiscal 2012 are as follows:

For the twelve-month period ended September 30, 2012, Commercial reported revenue of $115.7 million compared to revenue of $107.7 million for the same period last year, representing a year-over-year increase of 7.4 percent, as previously announced. EBITDA decreased by $0.4 million and net earnings improved by $0.04 million from the prior year.

For the three-month period ended September 30, 2012, Commercial reported revenue of $28.0 million compared to revenue of $29.2 million for the same period last year, representing a decrease of 4.0 percent. EBITDA for the quarter was $0.1 million in comparison to $1.5 million in the same period last year. The Company reported net loss of $0.3 million for the quarter compared to net earnings of $0.6 million during the fourth quarter of fiscal 2011.

The Company's increase in revenues primarily relates to growth in the first two quarters of the fiscal year. During these periods, capital expenditures for rig building and rig utilization rates were higher. During the third quarter, although rig utilization rates were lower due to the wetter than normal weather conditions in Western Canada, the Company benefited from its strategic efforts in expanding its service to customers who provide well completion and production maintenance activities. These companies are less impacted by weather and therefore less seasonal. As well, oil and gas exploration activity in Saskatchewan strengthened which directly enhanced revenues generated by the Company's service centers in this region. The growth in Saskatchewan also includes increases in revenues generated from the agriculture, construction, mining and manufacturing sectors. For the last quarter of the fiscal year, the Company experienced a decrease in revenues as rig utilization rates continued to be low due to continued wet weather over the summer. As well, exploration and production companies were dealing with numerous uncertainties including pipeline limitations, volatile crude oil prices and unpredictable capital markets. These factors contributed to curtailed or delayed capital spending which directly affected the Company's revenues.

The Company experienced significant EBITDA improvement in the first two quarters of the year when revenue levels were high; however, the improvement in EBITDA was fully offset by the EBITDA decrease experienced during the last quarter. Fiscal 2012's fourth quarter EBITDA was at the lowest quarter in the current year compared to 2011 fourth quarter EBITDA which was the highest for the 2011 year. The current year's last quarter EBITDA decrease was due to a decrease in revenues coupled to an increase in operating expenses. The increase in operating expenses was primarily a result of increased personnel costs as Commercial adjusted staffing and wages levels to meet increased demand during the first half of the fiscal year. These levels were maintained to ensure that a quality workforce was retained for expected activity post spring break-up. Net earnings improved from the prior year despite lower EBITDA. This was primarily due to interest costs savings as the Company paid down the mezzanine debt as well as having lower tax expenses in the current year.

Outlook

The Company is approaching fiscal 2013 purposefully and cautiously. A significant portion of the Company's revenue is derived from the Western Canadian energy sector which is impacted by drilling activity in Western Canada. The current global economic activity is resulting in subdued expectations in Western Canada and this is anticipated to be sustained throughout fiscal 2013.

Commercial has organized its business to serve different sectors. In addition to the energy sector, the Company's other primary markets include construction, mining, agriculture and forestry. Very strong agricultural commodity prices are expected to drive an increase in overall planting acreage in Alberta and Saskatchewan in the next fiscal year, subject to weather conditions. The forestry sector in British Columbia is also showing growth as recovery in the United States is experiencing accelerating housing starts. Growth in these other sectors and new growth in the United States energy sector will benefit the company as it continues developing its operations in Texas. These factors are important in mitigating the seasonal impact of lower revenues from oil drilling in Western Canada.

Jim Barker, President and CEO of Commercial noted, "This has been a unique year where we started out with high activity in the energy sector providing us opportunity to grow at double-digit rates. With the exception of the last quarter, we have delivered nine consecutive quarters of revenue increases. While the market continues to be uncertain, I am encouraged by the potential growth in some of the diverse sectors we serve. We are also increasing our market share in the energy sector through strong relationships with regional customers. With the recent announcement of a pending consolidation with a larger company, we believe it further enhances our capability to be successful in the competitive markets we serve."

About Commercial

Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 23 Services Centres and approximately 270 employees located primarily in Western Canada. Commercial offers more than 160,000 items critical to maintenance repair and operations (MRO) and original equipment manufacturer (OEM) customers. The Company represents 450 leading manufacturers and serves over 11,000 customer accounts within a broad cross-section of industries, including oil and gas, forestry, agriculture, firefighting, food processing, chemical processing, mining, utilities, manufacturing, and construction. Commercial trades under the symbol "CSA" on the Toronto Stock Exchange. For further information on the Company, please visit www.commercialsolutions.ca and for detailed financial information visit www.sedar.com.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust I...
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment.
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dr...
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabilities include HD voice, video, multimedia messaging, mobility, conferencing, Web collaboration, deskt...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.