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.

Contacts:
Commercial Solutions Inc.
Dan Patience
Investor Relations
(800) 499-2388
[email protected]

Commercial Solutions Inc.
Rozina Kassam, CA
CFO
(780) 577-4360
[email protected]
www.commercialsolutions.ca

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
The technologies behind big data and cloud computing are converging quickly, offering businesses new capabilities for fast, easy, wide-ranging access to data. However, to capitalize on the cost-efficiencies and time-to-value opportunities of analytics in the cloud, big data and cloud technologies must be integrated and managed properly. Pythian's Director of Big Data and Data Science, Danil Zburivsky will explore: The main technology components and best practices being deployed to take advantage...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Today, we have more data to manage than ever. We also have better algorithms that help us access our data faster. Cloud is the driving force behind many of the data warehouse advancements we have enjoyed in recent years. But what are the best practices for storing data in the cloud for machine learning and data science applications?
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
They say multi-cloud is coming, but organizations are leveraging multiple clouds already. According to a study by 451 Research, only 21% of organizations were using a single cloud. If you've found yourself unprepared for the barrage of cloud services introduced in your organization, you will need to change your approach to engaging with the business and engaging with vendors. Look at technologies that are on the way and work with the internal players involved to have a plan in place when the ine...