Welcome!

News Feed Item

Commercial Solutions Announces First Quarter Fiscal 2013 Results

EDMONTON, ALBERTA -- (Marketwire) -- 02/12/13 --


All figures in CAD    For the three months ended December 31                
                             2012            2011   % Change       $ Change 
Revenue             $  27,405,643   $  29,521,360       -7.2%  $ (2,115,717)
EBITDA (i)          $     404,220   $   1,257,768      -67.9%  $   (853,548)
Net Earnings        $    (160,325)  $     368,018     -143.6%  $   (528,343)
Basic EPS (ii)      $       (0.01)  $        0.02                           
Diluted EPS (ii)    $       (0.01)  $        0.02                           
                                                                            
(i) EBITDA is defined as Earnings Before Interest, Taxes, Depreciation &    
 Amortization                                                               
(ii) EPS is defined as Earnings Per Share                                   

COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission equipment, oilfield, industrial, and safety products today announced its financial results for the three-month period ended December 31, 2012. A complete copy of the Company's report will be available on the Internet at www.sedar.com.

Financial highlights from first quarter of fiscal 2013 are as follows:

Commercial reported revenues of $27.4 million, a $2.1 million decline from the same period in the prior year. EBITDA for the quarter was $0.4 million in comparison to $1.3 million in the same period last year, representing a $0.9 million decline. The Company reported net loss of $0.2 million for the quarter compared to net earnings of $0.4 million during the same quarter of fiscal 2012 representing a $0.6 million decline.

The decrease in earnings was primarily due to lower revenues, lower gross margin rates and higher operating expenses. After normalizing for the one-time legal expenses directly related to the potential sale of the Company, operating expenses were consistent with the prior year. Lower gross margin rates were directly related to sales mix as a higher proportion of sales related to high dollar value capital equipment sold for rig building in comparison to the prior year. There were several reasons that contributed to the reduced revenues:


1.  Christmas holiday timing reduced the number of business days and drove
    dramatic shifts in sales activity in December. Total of October and
    November revenues were consistent with the revenues reported in the same
    period of the prior year. For December 2012, sales were lower than prior
    year primarily due to number of billing days in the month. Normalized
    for this effect, first quarter sales were approximately 1.6% ($476,450)
    lower than the same period in the prior year. 
2.  Reduction in drilling activity in Western Canada. The Canadian
    Association of Oilwell Drilling Contractors rig utilization data in the
    first quarter of fiscal 2013 was 43.5% compared to 60.7% in the same
    period of the prior year. 
3.  United States "fiscal cliff" concerns contracted expected December
    customer spending. 

With respect to the recent announcement of the purchase offer withdrawn by Industrial Distribution Group ("IDG"), Jim Barker, President and CEO of Commercial noted, "We are disappointed in IDG's decision to withdraw its offer to purchase Commercial Solutions. While no detailed reasons were forthcoming, we will continue to run our business to enhance profitability by maintaining a strong balance sheet and a cost structure that helps withstand the ongoing volatility in our key markets. We have built an enterprise with a fundamentally sound business model with high quality people and excellent relationships with our senior lender, key vendors, and customers. We believe that we are well positioned to continue to support ongoing operations in our business driving organic growth as well as opportunistically pursue selective acquisitions. Due to recent events, our Board of Directors and Officers of the Company will be reviewing strategic alternatives with a serious examination of options that would provide additional value to all shareholders. The review of these alternatives will start immediately and is expected to be ongoing over the next two quarters. Updates will be provided as appropriate."

About Commercial

Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 23 Service s Centres and approximately 275 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, agriculture, firefighting, food processing, chemical processing, mining, utilities, manufacturing, 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It doe...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
As cloud adoption continues to transform business, today’s global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at @DevOpsSummit at 19th Cloud Expo, Charles Kendrick, CTO at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and deve...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...