WesternOne Inc. recorded consolidated second quarter revenue of CDN $112.1 million (about U.S. $103.2 million) compared to $103.2 million in the second quarter of 2013, an 8.6-percent increase. Gross profit was $22.9 million, down from $23.9 million a year ago, and adjusted EBITDA was $10.5 million, down from $14.8 million in the year-ago quarter.
WesternOne’s Infrastructure Services division posted revenue of $18.9 million, and adjusted EBITDA of $6.2 million, representing year-over-year organic growth of 13.3 percent and 11 percent respectively. The growth was driven by higher rental rates and higher returns from incremental fleet investments deployed to WIS’s major markets in British Columbia and Alberta.
Britco, WesternOne’s modular construction and rental division, recorded revenue of $93.2 million and adjusted EBITDA of $5.9 million. Revenue grew 7.7 percent, while adjusted EBITDA declined 44.9 percent year over year. The revenue growth was the result of an increase in site construction work and higher production volume from Britco’s U.S. operations. The EBITDA drop was the result of lower construction margin in Canada because of sales product mix.
WesternOne announced that it is winding down its Australia operations because of the enduring downturn in the Australia resource and energy sector. The move will enable the company to focus its management and capital resources on significant opportunities in North America, including ongoing capital investments in Northern Alberta’s oil and gas sector, new major investments in the shale oil and gas sector in the United States and liquefied natural gas and related infrastructure projects proposed for British Columbia.
“Our second quarter financial results reflect a continuing robust construction and infrastructure market in North America,” said Rob King, CEO. “The decision to wind down our operations in Australia was a result of a detailed strategic review process, in which we considered the challenging market conditions in Australia and identified the importance of focusing our management and capital resources on the tremendous opportunities in North America. We believe this will bolster WesternOne’s competitiveness as we continue to execute our long-term strategic plan that is focused on growth in the primary markets in North America.”
WesternOne is headquartered in Vancouver, B.C., Canada. WesternOne Rentals & Sales is No. 44 on the RER 100.