press release 2007-2
FOR IMMEDIATE RELEASE
Toronto Stock Exchange
Symbol “TSX: CSA”
Commercial Announces First Quarter Fiscal 2007 Results
Edmonton Alberta, Canada, February 14, 2007 - COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission, oilfield, industrial, safety, survey and resource management equipment products and services, today announced its financial results for the first quarter ended December 31, 2006. A complete copy of the Company's report is available on the Internet at www.sedar.com. Financial highlights from the fiscal 2007 first quarter are as follows:
For the three-month period ended December 31, 2006, Commercial reported revenue of $40.7 million compared to revenue of $30.1 million for the same period last year, representing a year-over-year increase of 35.3 percent. For the quarter, the Company reported a 5.2 percent increase in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $2.8 million versus $2.6 million for the same period last year. Net income for the quarter decreased by 3.8 percent to $1.3 million compared to $1.4 million during the first quarter of fiscal 2006.
"The first quarter reflected a period of growth which was offset by a slowdown in the oilfield sector due to low commodity prices in the shallow gas sector, while EPS figures were somewhat hurt by the increase in the diluted share count related to the 3 million common shares issued in the March 2006 financing," noted James Barker, President & CEO of Commercial. "We expect the slowdown in the oil and gas sector to continue through fiscal 2007. However, as we continue to diversify our sales segments and begin to benefit from the synergies of our recent acquisitions, we believe that we will be less impacted by these industry-specific slowdowns in the future."
As at December 31, 2006, the basic average number of shares outstanding was 18,955,694 (20,023,503 fully diluted) versus 14,366,291 (16,047,823 fully diluted) at the end of the same period in the year prior.
The Company will host a conference call to discuss the first quarter results on Wednesday, February 14, 2007 at 4:00 p.m. Eastern Standard Time (EST).
Participants should dial 1-877-888-4210 or 416-695-5261 at least 10 minutes prior to the conference time of 4:00 p.m.
For those unable to participate on the call, a replay will be available after 6:00 p.m. at 1-888-509-0081 or 416-695-5275 passcode 640017 until midnight, February 16, 2007.
About Commercial
Headquartered in Edmonton, Alberta, Commercial is one of Canada’s leading independent industrial distributors with 40 Services Centres and approximately 400 employees located across 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, food processing, chemical processing, mining and aggregate, utilities, 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.
Forward Looking Statements
From time to time, the Company may publish forward-looking statements relating to such matters as expected financial performance, business prospects, development activities and like matters. These statements involve risk and uncertainties, including but not limited to the risk factors previously described. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. Commercial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.
FOR FURTHER INFORMATION PLEASE CONTACT:
Commercial Solutions Inc.
Eric Sauze
Chief Financial Officer
(780) 577-2215
esauze@csinet.ca
or
Genoa Management Limited
Ali Mahdavi
+1 (866) 430-6247
info@genoa.ca
www.genoa.ca
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