Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify Blog

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.

Contacts:
Commercial Solutions Inc.
Rozina Kassam, CA
CFO
(780) 577-4360
[email protected]

Noble Investment Corp.
Dan Patience
Investment Relations Agent
1 (800) 499-2388
[email protected]

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
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...