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(May 12, 2011)
Revenues improved by 21.7% over the same quarter in the prior year, 25.2% improvement once normalized for branches sold in Eastern Canada
Improvement in EBITDA of 42.3% from same period in the prior year
Positive EPS of $0.01 achieved compared to EPS losses in preceding quarters
EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization
EPS is defined as Earnings (loss) per share
COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission equipment, oilfield, industrial, safety products today announced its financial results for the second quarter of fiscal 2011. A complete copy of the Company's report is available on the Internet at www.sedar.com.
Financial highlights from second quarter of fiscal 2011 are as follows:
Commercial reported revenue of $28.1 million compared to revenue of $23.1 million for the same period last year, representing a quarter-over-quarter increase of 21.7 percent. The Company reported EBITDA of $1.2 million in the quarter compared to $0.8 million in the same period last year. Net income for the quarter amounted to $0.3 million compared to net loss of $0.02 million during the second quarter of fiscal 2010.
The Company achieved significant growth in revenues in comparison to the same period in the prior year. This was driven primarily by increases in drilling and rig building activity in the energy sector. Activity in all of the Company's other primary markets also showed continued steady growth, consistent with the preceding two quarters. Revenue growth of 21.7 percent from same quarter last year was achieved despite the reduced footprint of the Company in Eastern Canada. Normalized for the two branches sold in Eastern Canada late in the second quarter of the prior year, the Company achieved revenue growth of 25.2 percent.
The Company reported positive EPS for the three and six month periods ending March 31, 2011 after several consecutive quarters of negative EPS. Positive EPS was achieved primarily through increased revenues and lower expenses as a percentage of revenue.
Jim Barker, President and CEO of Commercial noted, "Our outlook for the remainder of the fiscal year is optimistic. The economy is recovering and the activity in the energy sector is increasing. We expect to see continued strengthening of our financial results and believe that we are well positioned to grow both organically and through selective acquisitions due to our fiscally streamlined operations and a strong balance sheet. While we anticipate continued recovery, we also view the recovery cautiously. Demand for capital and maintenance programs and increases in drilling activity in the energy sector are anticipated, provided commodity prices hold or improve from current levels. If prices weaken, drilling activity levels may drop and the improving demand for capital equipment could be derailed. We believe that we have improved our ability to manage the economic environment over the last two years through altering our cost structure to increased variable versus fixed costs. We will remain focused on staffing, asset management, discretionary spending and capital investment to continue our flexibility in adjusting to the economic environment and at the same time, allow us to capitalize on opportunities going forward.
About Commercial
Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 25 Services Centres and approximately 245 employees located primarily in Western Canada. Commercial offers more than 160,000 items critical to maintenance repair and operations (MRO) and original equipment manufacturer (OEM) customers. The Company represents 450 leading manufacturers and serves over 11,000 customer accounts within a broad cross-section of industries, including oil and gas, forestry, firefighting, food processing, chemical processing, mining, utilities, manufacturing, agriculture and construction. Commercial trades under the symbol "CSA" on the Toronto Stock Exchange. For further information on the Company, please visit www.commercialsolutions.ca and for detailed financial information visit www.sedar.com.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| T7FC065 KOYO | 65 | 130 | 33.5 |
| 33213JR KOYO | 65 | 120 | 41 |