Canadian distributor Strongco posted a 10-percent revenue increase to CDN $462 million in 2012 (about U.S. $452 million, according to current conversion rates), with gross margin increasing by 7 percent to $86.5 million. Operating earnings jumped 9 percent to $18.5 million, while EBITDA increased to $49.1 million to $43.1 million. Rental revenue for Strongco was CDN $32.3 million, a 9-percent increase compared to 2011.
For the fourth quarter, Strongco posted a 2-percent total revenue increase, $116.0 million, compared with $113.2 million a year ago. Rental revenues jumped 17 percent in the fourth quarter from $8.9 million in Q411 to $10.4 million in 2012.
“In 2012, Strongco increased revenues, gross margin and EBITDA,” said Robet Dryburgh, president and CEO of Strongco. “At the same time, we expanded our market presence with the opening of four new branches in regional markets across Canada. We are already seeing the benefit of the investment in these new branches as our clients have responded positively to our greater commitment to better service. However, we have accumulated a higher level of inventory to mitigate our concerns arising from the poor delivery of equipment we experienced in 2011. As a result, related equipment notes were higher than planned as was the corresponding interest that offset the gains we made in operating profits, reducing net income year over year.”
Rental revenue in Canada hiked $1.6 million or 6 percent in 2012, with $1.4 million of the increase coming from Strongco’s crane business. Its U.S. rental division from Chadwick-BaRoss was $4.7 million, a 31-percent increase compared with $3.6 million in 2011. Rental revenues increased for Strongco all across Canada with the exception of Alberta, where, at $9.6 million, it was essentially flat. In Central Canada, rental revenue jumped 31 percent to $6.7 million in 2012. In Eastern Canada, rental revenue increased slightly to $11.3 million.
Strongco is based in Mississauga, Ontario, Canada, and is No. 61 on the RER 100.
