VANCOUVER, B.C. — WesternOne Equity Income Fund, doing business as WesternOne Rentals and Sales posted a 127-percent jump in consolidated revenue, a 123-percent hike in gross profit and adjusted EBITDA increase of 81 percent compared to 2010 as a result of organic growth in the WRS segment as well as the acquisition of the Britco group of companies in June 2011.
Britco contributed incremental revenue of $52.4 million and adjusted EBITDA of $9.2 million for the seven-month period since June 1, 2011.
WRS achieved annual organic growth of 19 percent in revenue and 12 percent in adjusted EBITDA. The growth was driven by strong demand for equipment rentals and related services in Western Canada's construction and infrastructure sectors, in spite of unseasonably warm winter weather during the fourth quarter.
Consolidated revenue increased 175 percent in the fourth quarter compared to the same period of 2010, from CDN $14.3 million in 2010 to CDN $39.3 million in 2011 (about U.S. $39.6 million).
Total revenue for 2011 was CDN $109.4 million, compared with CDN $48.2 million in 2010.
Britco began work on an 880-room, 280,000-square-foot workforce accommodation project valued at about $45 million for a large energy company in Alberta, with piling work beginning onsite in November 2011 and production of the workforce accommodation units beginning in December. Britco entered into full-production mode at its new Waco, Texas, facility with the first modular buildings completed in early 2012.
Britco acquired Alberta Modulars in Edmonton, Alberta, in February 2012 and enhanced manufacturing capacity and market presence in Alberta.
WRS also launched a construction heat division in southern British Columbia, providing construction heat and humidity control solutions to the construction and movie production sectors.
“We are very pleased to see the solid growth in the operating results due to both organic growth and business acquisition,” said Darren Latoski, CEO. “Our disciplined growth strategy has led to record revenue, gross profit and adjusted EBITDA in 2011, along with significant improvements in payout percentage.”
Latoski expressed optimism about 2012.
“Going forward we see our two strategic operating segments, WRS and Britco, continue to benefit from the positive economic environment in Western Canada,” said Latoski. “Capital investments in the construction and infrastructure sectors are expected to fuel demand for WRS' rental equipment and services and Britco's modular space products. To achieve continued growth we will make disciplined fleet acquisitions, and will increase Britco's production capacity by streamlining manufacturing processes and adding staff at its four facilities in B.C., Alberta and Texas. We will also continue to seek accretive acquisition opportunities to grow WesternOne Equity's business.”
WesternOne is based in Vancouver, B.C., Canada and is No. 57 on the RER100.