Canadian distributor Strongco posted a 36-percent revenue leap to CDN $108.4 million (about U.S. $106.4 million). The numbers included $12.9 million from U.S. distributor Chadwick-BaRoss, acquired in February 2011. Same-store revenues increased 20 percent in the quarter.
Rental revenues for Strongco were $9.2 million, compared with $6.9 million in the year-ago quarter, a 33-percent jump.
EBITDA for the quarter increased to $13.3 million (12.3 percent of revenue), compared with $7.2 million (9 percent of revenue) a year earlier.
The company said the improving trend in heavy equipment markets which has been evident since the middle of 2010 continued to show strength. The ongoing strength of oil prices during 2011 has powered a robust recovery in Alberta, one of Strongco’s key markets. Accelerating activity in the oil sands has led to increased spending for heavy equipment in northern Alberta. The generally improving economy has fueled an increase in construction and infrastructure activity in Alberta.
Strongco is building a new branch in Edmonton, Alberta, and plans a new branch in Fort McMurray during 2012.
“While we are building our presence in western Canada, we are also extremely pleased with our performance in Quebec and Ontario, which are strong markets in Strongco’s geographic diversification,” said Robert Dryburgh, president and CEO of Strongco. The company expects these markets to continue contributing to growth in sales and profitability, as Chadwick-Baross is expected to in New England.
Based in Mississauga, Ontario, Strongco is No. 67 on the RER 100.
