Welcome!

Microsoft Cloud Authors: Kevin Benedict, Pat Romanski, Liz McMillan, Lori MacVittie, Elizabeth White

News Feed Item

Commercial Solutions Announces First Quarter Fiscal 2013 Results

EDMONTON, ALBERTA -- (Marketwire) -- 02/12/13 --

All figures in CAD    For the three months ended December 31                
                             2012            2011   % Change       $ Change 
Revenue             $  27,405,643   $  29,521,360       -7.2%  $ (2,115,717)
EBITDA (i)          $     404,220   $   1,257,768      -67.9%  $   (853,548)
Net Earnings        $    (160,325)  $     368,018     -143.6%  $   (528,343)
Basic EPS (ii)      $       (0.01)  $        0.02                           
Diluted EPS (ii)    $       (0.01)  $        0.02                           
                                                                            
(i) EBITDA is defined as Earnings Before Interest, Taxes, Depreciation &    
 Amortization                                                               
(ii) EPS is defined as Earnings 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 period ended December 31, 2012. A complete copy of the Company's report will be available on the Internet at www.sedar.com.

Financial highlights from first quarter of fiscal 2013 are as follows:

Commercial reported revenues of $27.4 million, a $2.1 million decline from the same period in the prior year. EBITDA for the quarter was $0.4 million in comparison to $1.3 million in the same period last year, representing a $0.9 million decline. The Company reported net loss of $0.2 million for the quarter compared to net earnings of $0.4 million during the same quarter of fiscal 2012 representing a $0.6 million decline.

The decrease in earnings was primarily due to lower revenues, lower gross margin rates and higher operating expenses. After normalizing for the one-time legal expenses directly related to the potential sale of the Company, operating expenses were consistent with the prior year. Lower gross margin rates were directly related to sales mix as a higher proportion of sales related to high dollar value capital equipment sold for rig building in comparison to the prior year. There were several reasons that contributed to the reduced revenues:

1.  Christmas holiday timing reduced the number of business days and drove
    dramatic shifts in sales activity in December. Total of October and
    November revenues were consistent with the revenues reported in the same
    period of the prior year. For December 2012, sales were lower than prior
    year primarily due to number of billing days in the month. Normalized
    for this effect, first quarter sales were approximately 1.6% ($476,450)
    lower than the same period in the prior year. 
2.  Reduction in drilling activity in Western Canada. The Canadian
    Association of Oilwell Drilling Contractors rig utilization data in the
    first quarter of fiscal 2013 was 43.5% compared to 60.7% in the same
    period of the prior year. 
3.  United States "fiscal cliff" concerns contracted expected December
    customer spending. 

With respect to the recent announcement of the purchase offer withdrawn by Industrial Distribution Group ("IDG"), Jim Barker, President and CEO of Commercial noted, "We are disappointed in IDG's decision to withdraw its offer to purchase Commercial Solutions. While no detailed reasons were forthcoming, we will continue to run our business to enhance profitability by maintaining a strong balance sheet and a cost structure that helps withstand the ongoing volatility in our key markets. We have built an enterprise with a fundamentally sound business model with high quality people and excellent relationships with our senior lender, key vendors, and customers. We believe that we are well positioned to continue to support ongoing operations in our business driving organic growth as well as opportunistically pursue selective acquisitions. Due to recent events, our Board of Directors and Officers of the Company will be reviewing strategic alternatives with a serious examination of options that would provide additional value to all shareholders. The review of these alternatives will start immediately and is expected to be ongoing over the next two quarters. Updates will be provided as appropriate."

About Commercial

Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 23 Service s Centres and approximately 275 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.
Dan Patience
Investor Relations
(800) 499-2388
[email protected]

Commercial Solutions Inc.
Rozina Kassam, CA
CFO
(780) 577-4360
[email protected]
www.commercialsolutions.ca

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.

IoT & Smart Cities Stories
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to great conferences, helping you discover new conferences and increase your return on investment.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...