B.C.’s WesternOne Posts Double-Digit Profitability and Revenue Growth in 2012

March 13, 2013

Canadian equipment rental company WesternOne Inc. posted a 39-percent increase in consolidated revenue, a 50-percent jump in gross profit and adjusted EBITDA of 44 percent in the fourth quarter of 2012, compared with the previous year’s fourth quarter, with organic growth from WesternOne Rentals & Sales and WesternOne’s Britco modular-buildings manufacturing division.

For the 2012 fiscal year, the annual growth was 99 percent for revenue, 97 percent for gross profit and 94 percent for adjusted EBITDA compared with the 2011 fiscal year.

In the fourth quarter, WRS recorded organic growth in revenue and adjusted EBITDA of 19 percent and 47 percent respectively, compared with Q4 2011 because of solid demand for construction heating services and aerial equipment rentals in Western Canada’s commercial construction and infrastructure segments. After launching new construction heating operations in central and southern British Columbia in the fall of 2012, incremental revenue and earnings were added to the platform. WRS’ annual growth in 2012 was 9 percent for revenue, 27 percent for gross profit and 27 percent adjusted EBITDA compared with 2011.

The Britco division posted 52 percent revenue growth in the fourth quarter and a 34-percent adjusted EBITDA hike. Strong demand for modular buildings led to strong manufacturing activity and related services in workforce accommodation and infrastructure sectors. Annual revenue growth was 197 percent, with 188 percent for gross profit and 206 percent for adjusted EBITDA compared with 2011.

In December 2012, WesternOne announced that Britco executed a contract to design, build and install the first phase of a 2,000-room workforce accommodation complex for Manitoba Hydro, with the first two phases of the project aggregately valued at $207 million.

Total revenue for the fourth quarter was $54.5 million, compared with $39.3 million for Q411. Full-year revenue totaled $217.8 million, compared with $109.4 million for 2011. Equipment rental revenue for 2012 was $40.4 million, WesternOne told RER.

“Our disciplined growth strategy has led to record revenue, gross profit and adjusted EBITDA in 2012,” WesternOne CEO Darren Latoski said. “Along with these results, our Britco and WRS platforms have delivered strong operating cash flow. This allowed us to distribute monthly dividends to our shareholders with a 41-percent payout ratio for the year and redeploy capital towards growth mandates such as rental fleet expansion and the recent acquisition of APB in Australia.”

Latoski was bullish about 2013 prospects. “WesternOne is well-positioned for growth with our deep management team across corporate, Britco and WRS. We look forward to another exciting year in 2013 as we diversify our revenue base into the Australian markets and the utility sector as we commence the Manitoba Hydro project in the spring of 2013. We will also identify ways to enhance returns on our rental fleet and profitability, through targeting new niche rental markets. We will continue to seek accretive acquisition opportunities to grow WesternOne’s business.”

Based in Vancouver, B.C., Canada, WesternOne Rentals & Sales is No. 51 on the RER 100.