Welcome!

Microsoft Cloud Authors: John Basso, Liz McMillan, Pat Romanski, Glenn Rossman, Elizabeth White

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 @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices 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 opportuni...