Strongco., a Mississauga, Ont.-based equipment rental and distribution company returned to profitability in the second quarter, the company announced last week. Strongco earned CD $2.3 million or 24 cents a share for the three months ended June 30, compared with a net loss of $1.2 million or 13 cents a share for the same period last year.
Quarterly revenue was $93.1 million, slightly up from $92.3 million last year. Strongco officials said the financial turnaround this year resulted from higher gross profit margins combined with lower operating and interest expenses.
For the first six months of 2003, Strongco earned net profit of $1.7 million on revenue of $165.3 million, compared with a loss of $3.1 million on revenues of $164.9 million in the same period last year.
“We were extremely encouraged by Strongco’s second quarter results, particularly in the core equipment distribution segment where we have been focusing on improving working capital efficiencies and increasing the higher margin customer support activities,” said chairman Larry Pirnak. “We were also pleased with the continued reduction in the company’s levels of debt and the consequent reduction in interest expense. We anticipate continued year-over-year improvements in earnings during the second half of this year.”
Strongco also announced the resignation of its president Randy Henderson, effective the end of August. Henderson is resigning “to pursue other career opportunities,” the company said.
Strongco significantly streamlined its operations over the past year, including the divestment of part of its rental operations. Distribution makes up nearly 90 percent of the company’s revenue, with rental only accounting for about 4 percent.
