Numbers Drop in Third Quarter for Western Canada’s WesternOne

Vancouver, Canada-based WesternOne posted third quarter consolidated revenue of $25.7 million, gross profit of $3.4 million and adjusted EBITDA of negative $1.9 million, compared to respective amounts of $46.8 million in revenue, $6.7 million gross profit and adjusted EBITDA of positive $1 million in the third quarter of 2015.

The revenue and profit declines were primarily the results of reduced volume of onsite modular installation work at Britco and lower rental fleet utilization from WesternOne Infrastructure Services.

The drops were partially offset by organic growth from Britco’s modular space rental division, which posted an 8.4 percent rental revenue boost. Product sales jumped from $1.7 million a year ago to $2.7 million because of a diversified mix of permanent modular and relocatable buildings at Britco Canada.

WIS, WesternOne’s infrastructure services division, recorded Q3 revenue of $13.2 million and adjusted EBITDA of negative $0.2 million, compared to $15.2 million in Q315 and positive $2.3 million in adjusted EBITDA. Excess supply of fleet from competitors and lower rental demand, especially in Alberta markets, continued to pressure on fleet utilization and was the main downward factor on revenue and earnings.

The drop was partially offset by higher fuel sales volume, a 3.4-percent increase in gross profit.

“Our Q3 results were negatively impacted by persistent economic headwinds and continuing challenging market conditions,” said CEO Peter Blake. “However, going forward we are encouraged to see some signs of positive sales momentum from Britco’s modular construction division in Canada. We are also experiencing early signs of success in WIS from our strategic focus on major projects within the head business.”

WesternOne Rental & Sales in No. 45 on the RER 100.