WesternOne Equity Income Fund posted a 91.4-percent rental volume increase in the first quarter of 2009, largely as a result of having added acquisitions in 2008. First-quarter revenue was CAD $14.1 million (about U.S. $12 million), compared with $7.37 million for the same period in 2008.
Gross profit grew from CAD $5.17 million in Q108 to $9.1 million (about U.S. $7.7 million) in the first quarter this year, a 75.8-percent growth.
“WesternOne Equity continues to enhance its unitholders’ value through its growth strategy that gives rise to diversified product and service offerings in expanded geographical markets,” said Darren Latoski, CEO. “Our Q1 financial results benefited from a successful operation in northern Alberta during the second half of the construction heater season. Our acquisition of the businesses of Davis Heater Service Ltd. and Sure-Fire Propane Ltd. on Oct. 1, 2008 and the subsequent integration with WesternOne Equity’s other operations yielded incremental earnings that helped offset declines from other business lines, and gave rise to an impressive 47.8-percent payout percentage for the quarter.”
Latoski said the economic downturn continues to present challenges to WesternOne’s business environment, particularly in the residential construction sector. “We believe diversifying our businesses through accretive acquisitions remains an effective strategy to create synergies within our business network and address the impact from the current downturn through effective cross-selling and fleet deployment,” added Latoski. “This will strengthen our position to generate operating cash flow and continue to deliver stable distributions to our unitholders.”
Based in Vancouver, B.C., WesternOne Equity Income Fund has acquired a half dozen companies in the past few years and seeks to continue to acquire equipment and infrastructure-related businesses located primarily in the western Canadian provinces of British Columbia, Alberta and Saskatchewan. The company is No. 81 on the new RER 100.
