WesternOne Equity Income Fund posted CA $37.6 million in revenue (about U.S. $35.3) in 2008, compared with CA $22.5 million in 2007, a 67 percent increase. Revenue for 2008 includes the revenues of four companies WesternOne acquired during 2008. About 65 percent of WesternOne’s revenues come from equipment rental.
Gross margin dropped slightly in 2008 to 69.3 percent compared with 70.4 percent in 2007. Fourth quarter gross margin dropped to 66.3 percent in the fourth quarter of 2008, compared with 77.2 percent in the same period in 2007.
“WesternOne Equity is quickly becoming one of the leading independent solutions providers in western Canada’s construction and infrastructure sectors, with nine locations in British Columbia and Alberta and a rental fleet of over 8,000 pieces of equipment,” said CEO Darren Latoski. “Through acquisitions beginning in January 2008, we have expanded our market from the lower mainland and southern Vancouver Island in British Columbia by adding businesses in northern Vancouver Island in British Columbia and in northern and southern Alberta.”
Although the economic downturn has not spared western Canada, Latoski said good opportunities are presenting themselves. “Management sees strength in its primary markets, the equipment and infrastructure sectors in western Canada,” Latoski added. “Several major commercial and industrial construction and infrastructure projects including the recently announced economic stimulus packages from the federal and provincial governments have been announced in British Columbia and Alberta. WesternOne Equity is positioned to benefit from these projects, given its existing network of operations across our British Columbia and Alberta platform businesses.”