Canadian distributor and rental company Strongco posted CA$79.6 million (about U.S. $79.6 million), in third-quarter revenue, a 6.7-percent year-over-year increase compared with CA $74.6 million for the same period last year. Gross margin increased from CA$14.5 million to CA$14.8 million, while EBIDTA soared 53 percent to CA$6.9 million, compared with CA$4.5 million a year ago.
Rental revenues in the third quarter were CA$6.9 million, a 60-percent year-over-year sequential jump compared with $4.3 million for the second quarter and a 92-percent leap compared with $3.6 million for the third quarter of last year. For the first nine months of 2010, rental revenue was $14.9 million, compared with $10.1 million for the same period a year ago, a 47.5-percent increase. Rental activity was higher generally across all product categories, including cranes, and in all regions of the country.
In Eastern Canada, equipment rentals were at $2.8 million, leaping 75 percent from the second quarter and more than 100 percent compared with $1.3 million in Q309.
“Our revenues in the third quarter, once again, improved over the previous quarter this year despite the traditional seasonal downturn that occurred in our markets,” said president and CEO Robert Dryburgh. “Importantly, we achieved improvement in our national market share over the second quarter this year and the third quarter of 2009. At the same time, we are seeing substantial increases in rentals, particularly big-ticket items such as articulated trucks and high-value cranes, reflecting ongoing customer caution, despite the resurgence of construction markets that began in the second quarter. Our backlog level remains encouraging and we expect to convert the majority of rental arrangements into sales this year.”
Strongco, which represents Volvo Construction Equipment, Case Construction, Manitowoc Crane, Terex, Skyjack and a number of other lines, is based in Mississauga, Ontario. Strongco is No. 82 on the RER 100.
