Press Release 2010-04
FOR IMMEDIATE RELEASE
Toronto Stock Exchange
Symbol “TSX: CSA”
Commercial Announces Continued Improvement in EBITDA for Fiscal 2010 Second Quarter
Edmonton, Alberta, Canada, May 14, 2010 - COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission equipment, oilfield, industrial, safety, survey and resource management equipment products, today announced its financial results for the second quarter ended March 31, 2010. A complete copy of the Company's report is available on the Internet at www.sedar.com.
Financial highlights from the fiscal 2010 second quarter are as follows:
For the three-month period ended March 31, 2010, Commercial reported revenue of $23.1 million compared to revenue of $29.3 million for the same period last year and positive EBITDA of $0.8 million versus negative EBITDA of $0.7 million for the same period last year. The Company incurred a net loss of $0.02 million compared to a normalized net loss of $1.1 million in the same period prior year **.
For the six-month period ended March 31, 2010, Commercial reported revenue of $44.3 million compared to revenue of $65.1 million for the same period last year and positive EBITDA of $0.5 million versus positive EBITDA of $0.2 million for the same period last year. The Company incurred a net loss of $0.9 million compared to a normalized net loss of $1.1 million in the same period prior year **.
After several consecutive quarters of negative growth since the end of fiscal 2008, Commercial has now achieved a second consecutive quarter with positive growth in revenues. Revenue has increased from the preceding quarter partially due to the higher drilling activity in the winter season and partially due to the implementation of new sales and marketing programs. For the three-month period ended March 31, 2010, Commercial reported revenue of $23.1 million compared to revenue of $29.3 million for the same period last year and positive EBITDA of $0.8 million versus negative EBITDA of $0.7 million for the same period last year. The Company incurred a net loss of $0.02 million compared to a normalized net loss of $1.1 million in the same period prior year **.
For the six-month period ended March 31, 2010, Commercial reported revenue of $44.3 million compared to revenue of $65.1 million for the same period last year and positive EBITDA of $0.5 million versus positive EBITDA of $0.2 million for the same period last year. The Company incurred a net loss of $0.9 million compared to a normalized net loss of $1.1 million in the same period prior year **.
After several consecutive quarters of negative growth since the end of fiscal 2008, Commercial has now achieved a second consecutive quarter with positive growth in revenues. Revenue has increased from the preceding quarter partially due to the higher drilling activity in the winter season and partially due to the implementation of new sales and marketing programs.
In comparison to the same period in the prior year, revenues have decreased due to lower rig building activity. Rig building activity was at higher levels in the same period last year as Commercial's customers were completing capital projects that were initiated and committed earlier in calendar year 2008 when oil and gas prices were strong. Commercial's revenues decreased once these projects were completed as rig building activity has been at minimal levels over the last twelve months.
The Company achieved positive EBITDA in the current quarter in comparison to EBITDA losses in the same period
last year and preceding quarters. Improvement in EBITDA in the three and six months ended March 31, 2010 was primarily due to improved gross profit and lower operating costs, partially offset by lower revenues. Jim Barker, President and CEO of Commercial noted, "In fiscal
2009, we focused on restructuring the operations to adjust the Company's cost structure. Now that we have substantially completed this, we are focused on returning to a growth oriented company. We have implemented sales and marketing programs to better serve our customers while achieving an optimal level of exposure within the various industry sectors that we serve. We expect that future profitability will be enhanced as these programs go full-scale and management continues refining the re-sized cost structure".
About Commercial
Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 24 Services Centres and approximately 230 employees located across 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, food processing, chemical processing, mining and aggregate, utilities, agriculture 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.
Forward Looking Statements
From time to time, the Company may publish forward-looking statements relating to such matters as expected financial performance, business prospects, development activities and like matters. These statements involve risk and uncertainties, including but not limited to the risk factors previously described. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. Commercial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, with an exception to securities laws requirements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Commercial Solutions Inc.
Rozina Kassam CA
Chief Financial Officer
(780) 577-4360
rkassam@csinet.ca
or
Jim Barker
President and Chief Executive Officer
(780) 577-2220
jbarker@csinet.ca
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