WesternOne, which sold its modular structure division to focus on equipment rental, came up flat in the fourth quarter in the challenging Western Canada economic environment.
WesternOne Inc. recorded $20.7 in fourth quarter consolidated revenue compared to $20.5 million in the fourth quarter of 2015. Gross profit was $6.7 million compared to $8 million in the year-ago quarter. Adjusted EBITDA totaled $3.1 million, compared to $4.5 million in the year-ago frame.
Vancouver, B.C., Canada-based WesternOne’s operating results from continuing operations excluded the businesses of its subsidiary Britco LP for 2016 as well as comparative information in previous years because WesternOne recently sold Britco’s rental and U.S. manufacturing businesses in order to focus more on infrastructure opportunities.
Revenue generated from WesternOne Infrastructure Services was consistent with the prior year period because of a comparatively colder winter season in Alberta in late 2016 increasing rental demand for temporary constructionand related fuel and services, although the related positive impact was offset by compressed rental rates and fuel margins as a result of competition. Gross profit and adjusted EBITDA decreased because of the compressed operating leverage, as operating costs remained high to keep up with higher rental volumes.
“The operating environment of our WIS business remained challenging throughout Q4,” said WesternOne CEO Peter Blake. “While we benefited from a colder winter heat season compared to the previous year, WIS continued to be negatively impacted by market-driven factors including reduced construction activities particularly in Alberta and rental rate competition in all major markets. In spite of these challenges, our strategy of re-deploying rental fleet to targeted markets and focusing on major projects within the heat business has helped us to maintain market share and competitiveness. We will continue to focus on growing revenues and managing capital returns and liquidity as we continue to navigate through the current economic environment.”
WesternOne Rental & Sales is No. 45 on the RER 100.