Press Release 2009-011
FOR IMMEDIATE RELEASE
Toronto Stock Exchange
Symbol "TSX: CSA"
Commercial Announces Third Quarter Fiscal 2009 Results
Edmonton, Alberta, August 14, 2009 - 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, today announced its financial results for the third quarter ended June 30, 2009. A complete copy of the Company’s report is available on the Internet at www.sedar.com.
Financial highlights from the fiscal 2009 third quarter are as follows:
For the three-month period ended June 30, 2009, Commercial reported revenue of $20.7 million compared to revenue of $33.9 million for the same period last year, representing a year-over-year decrease of 38.8 percent. For the quarter, the Company reported an EBITDA loss of $1.5 million versus $0.6 million income for the same period last year. Net loss for the quarter is $1.6 million versus $0.1 million in the prior year, excluding the goodwill impairment charge of $15 million in the prior year. Similarly, basic and diluted loss per share for the period is $0.08 versus $0.00 excluding the goodwill impairment charge in the same period last year.
For the nine-month period ended June 30, 2009, revenues decreased by 18.3% from $105.1 million to $85.9 million and EBITDA decreased from income of $3.4 million to a loss of $1.3 million. Year-to-date net loss in the current year is $22.2 million compared to a net loss of $14.4 million in the prior year. Excluding goodwill impairment charges, year-to-date net loss in the current year is $2.7 million versus income of $0.6 million in the prior year.
The global economic and financial market challenges continue to significantly impact the Company’s revenues. The Company has a large portion of its customers in the energy sector who continue to have lower drilling activity which directly impacts the demand for the Company’s products. To mitigate the impact of declining revenues, the Company has taken aggressive measures in reducing its operating costs. This has resulted in a substantial decrease in its operating expenses versus comparable periods. Jim Barker, President & CEO of Commercial noted "We are cautious regarding the near to medium term impact of the global financial crisis and ensuing economic challenges and we expect the next several quarters to be challenging. We continue to concentrate our efforts on adjusting the Company’s cost structure and to-date, have already realized a reduction of 20% from last year. We have implemented cost-cutting measures that reduce both variable and fixed costs and the impact of these measures are ongoing. Annualized savings from these measures approximate $8 million. We will continue to review and ensure that we work towards our objective of improving the Company’s EBITDA and cash position."
About Commercial
Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 29 Services Centres and approximately 275 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, and 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, with an exception to securities laws requirements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Commercial Solutions Inc.
Rozina Kassam, CA
Chief Financial Officer
(780) 577-4360
rkassam@csinet.ca
or
Jim Barker
President and Chief Executive Officer
(780) 577-2220
jbarker@csinet.ca
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