WesternOne Rentals & Sales posted organic first quarter growth of 19.4 percent in revenue and 14.2 percent in adjusted EBITDA compared with the first quarter of 2012. The company attributed the growth to incremental returns from investments in aerial equipment and recently launched construction heat branches in Prince George and Kelowna, B.C., Canada, as well as strong demand for construction heat services because of the cold winter in early 2013.
Total consolidated revenue for the quarter was CDN $77 million (about U.S. $75.7 million), a 48.4-percent jump compared with $51.9 million for the first quarter in 2012. Gross profit of $21.1 million, compared to $17.6 million a year ago, a 19.9-percent jump. Adjusted EBITDA was $12.7 million, compared to $12.9 million in the year-ago period.
In January, WesternOne announced that its wholly owned subsidiary Britco completed the purchase of 80 percent of the modular building construction business of APB Holding Australia Pty Limited for AU$27.6 million (about U.S. $27.3 million). APB serves the mining, resource, commercial, industrial and government industry sectors and designs and builds a wide variety of temporary and permanent buildings including workforce accommodations, office complexes, classrooms, health-care facilities, switch rooms and a variety of construction site offices. APB contributed $22.8 million in revenue and $100,000 in adjusted EBITDA to WesternOne’s consolidated financial results in the first quarter.
In March, Britco began the construction of the modular accommodations units for the Manitoba Hydro Keeyask Generating Station Project. The construction work is expected to continue through to the fall, while the related site preparation and installation work is expected to continue through June 2014.
“WesternOne continues to generate solid operating results and shareholders’ value through delivering consistent dividends at a low payout ratio,” said Darren Latoski, WesternOne CEO. “We look forward to further growth in 2013 through executing disciplined strategies in capital expenditures and business acquisitions.”
WesternOne Rentals & Sales, based in Vancouver, B.C., Canada, is No. 48 on the RER 100.
