press release 2007-5
FOR IMMEDIATE RELEASE
Toronto Stock Exchange
Symbol “TSX: CSA”
Commercial Reports Revenue Growth of 9.6% in Fiscal 2007 Q3
Edmonton Alberta, Canada, August 14, 2007 - COMMERCIAL SOLUTIONS INC. ("Commercial" or the "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 third quarter ended June 30, 2007. A complete copy of the Company's report is available on the Internet at www.sedar.com. Financial highlights from the fiscal 2007 third quarter are as follows:
For the three-month period ended June 30, 2007, Commercial reported revenue of $36.2 million compared to revenue of $33.1 million for the same period last year, representing a year-over-year increase of 9.6 percent. Gross Margins in the quarter remained relatively flat, with a 0.1% increase to 27.5% from 27.4% in the third quarter of 2006. The Company reported Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $0.75 million versus $2.7 million for the same period last year. Net Ioss for the quarter was $0.20 million compared to a gain of $1.5 million during the third quarter of fiscal 2006.
For the nine-month period ended June 30, 2007, Commercial reported revenue of $122.3 million compared to revenue of $97.6 million for the same period last year, representing a year-over-year increase of 25.3 percent. Gross profit improved to 28.1% from 27.9%. However, EBITDA fell 17.8 percent to $7.5 million versus $9.2 million for the same period last year. Net income decreased to $3.2 million compared to $5.1 million for the nine months ended June 30, 2006.
"We are going through a difficult market period with a slowdown in the drilling industry due to poor weather and continued reductions in capital spending by oil and gas producers. In addition, the forest industry reflects the housing slowdown in the United Sates. As long as we anticipate the market corrections to be short term, we will continue to be committed to our core infrastructure and operating costs" noted James Barker, President & CEO of Commercial. "Going forward we will be vigilant on operating costs as we monitor developing market conditions. In addition, we will continue to seek growth opportunities through acquisitions."
As at June 30, 2007, the basic average number of shares outstanding was 19,468,416 (19,468,416 fully diluted) versus 17,531,525 (19,719,234 fully diluted) at the end of the same period in the year prior.
The Company will host a conference call to discuss the third quarter results on Tuesday August 14, 2007 at 4:00 p.m. Eastern Standard Time (EST). Scheduled speakers for the call will include Jim Barker, President and CEO, and Eric Sauze, CFO of Commercial Solutions Inc. Participants should dial 1-866-542-4236 or 416-641-6125 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 1-800-408-3053 or 416-695-5800 passcode 3230957 until midnight, August 28, 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
(416) 962-3300
+1 (866) 430-6247
info@genoa.ca
www.genoa.ca
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