Vancouver, B.C., Canada-based WesternOne Equity Income Fund last week announced the release of financial results for the first quarter with total revenues of CD$7.37 million (about U.S. $7.46 million), a 96.6-percent increase compared with CD$3.75 million for the same period in 2007.
“Our business growth continued to be driven by the strong construction and general equipment rental sectors in western Canada,” said CEO Darren Latoski. “WesternOne has recorded strong financial results this quarter, with respect to growth in revenues and earnings. The strong results are attributable to organic growth within our operations, which achieved a combined growth of 5.8 percent in revenue and 6.4 percent in EBITDA compared to the same period last year, as well as acquisitions of new businesses as we acquired the assets of C&N Motors Ltd. in Comox, B.C., and Deerfoot Equipment Rentals, in Calgary, Alberta, on Jan. 1, and Feb. 15, 2008 respectively.”
WesternOne acquired Vancouver Island rental companies Production Equipment Rentals in August, 2006, and Old Country Rentals in June 2007. PER contributed $4.05 million for the three months period. Old Country and C&N contributed $1.55 million and $0.46 million of incremental revenue for the first quarter, and Deerfoot contributed $1.31 million of incremented revenue for the three-month period.
Gross income increased by 88 percent, or $2.42 million, to $5.17 for the quarter. The change in margin related to the change in product sales mix resulting from the acquisitions of OCR, C&N and Deerfoot, which focus on high-volume general rental and retail product offerings.
EBITDA jumped 104.5 percent, from $1.15 million a year ago to $2.35 million in this year’s first quarter.
“We are excited about the growth opportunities that our recent acquisitions will provide,” added Latoski. “The acquisition of the assets of C&N enables us to further consolidate the equipment rental and sales market on Vancouver Island, while Deerfoot provides us with a strong platform to extend our businesses into other parts of western Canada. We will continue to execute our growth strategy through organic growth and seeking accretive acquisition opportunities.”