Strongco posted a 64-percent second-quarter revenue jump with CDN $114.1 million (about U.S. $116.1 million), compared to $69.6 million in the second quarter of 2010. Rental revenues were CDN $6.1 million, a 53-percent leap from the previous year’s second quarter.
Revenue for the first six months of 2011 jumped 63.4 percent from $123.3 million last year to $201.5 million this year.
“We achieved substantial revenue growth in the quarter in all regions, with western Canada particularly strong and there were increases in all revenue categories,” said Strongco president and CEO Robert Dryburgh. “While demand for equipment was certainly stronger, we also benefited from better sales execution, increased market share and contributions from Chadwick-Baross.” Strongco finalized its acquisition of the Westbrook, Maine-based distributor Chadwick-Baross in February of this year.
Equipment sales increased by 51 percent to CDN $77.1 during the second quarter. Product support revenues gained 29 percent to CDN $30.9 million.
Gross margin leapt 51 percent to CDN $21.2 million during the quarter. EBITDA increased to $10.5 million from $4.5 million a year ago.
The company is optimistic that Strongco will continue to demonstrate improved performance compared with 2010 for the rest of the year, but anticipates some impact from the industry’s traditional seasonality in the third and fourth quarters. The company expects the economy and construction markets across Canada to continue to improve throughout 2011, spurring demand for heavy equipment. Oil prices have continued strong, supporting Alberta’s economic recovery. Accelerating activity in the oil sands region has boosted spending on heavy equipment in northern Alberta, with an increase in construction activity throughout the province.
Demand for cranes has increased in 2011.
Mississauga, Ontario, Canada-based Strongco is a distributor for several equipment lines, with Volvo Construction Equipment, Case Corp., and Manitowoc Crane Group being its leading brands. Also a major rental player, Strongco is No. 67 on the RER 100.