Le Lézard
Classified in: Mining industry, Oil industry, Environment, Business
Subject: ERN

Strongco Announces Fourth Quarter and Full Year 2018 Results


TSX Symbol: SQP      

?Strong sales performance, improved margins and lower expenses
result in top-line growth and bottom-line profitability?

MISSISSAUGA, ON, March 19, 2019 /CNW/ - Strongco Corporation (TSX: SQP) today reported financial results for the fourth quarter and year ended December 31, 2018.

Financial Summary ? Continuing Operations
($ millions except percentages and per share amounts)

Period Ended December 31

3 Months

12 Months


2018

2017

2018

2017

Revenues

102.1

97.6

412.1

376.1

Gross Profit

18.1

18.0

73.4

68.1

Operating Income

2.9

0.8

11.8

4.7

Restructuring Costs

-

-

3.4

0.7

Pretax Earnings (Loss)

0.8

(0.9)

0.2

(2.2)

Net Income (Loss)

0.8

(0.9)

0.2

(2.2)

Basic and Diluted Earnings (Loss) Per Share

0.06

(0.07)

0.01

(0.17)

EBITDA*

7.9

6.1

30.0

21.0

Equipment Inventory



167.5

153.3

Equipment Notes Payable



141.4

131.0

 

"We're pleased with the ongoing progress the business has made in 2018, which resulted in both top-line growth and bottom-line profitability. Performance improvements were driven largely by strong equipment sales, and notable upturns in rentals and product support and lower expenses resulting in a substantial year-over-year increase in operating income," said Robert Beutel, Executive Chairman of Strongco. "While stronger market demand contributed, in part, to the overall increase, economic uncertainties in key regions are expected to persist over the course of 2019. Nevertheless, we remain confident that continued financial stability, combined with exceptional customer service and a focus on our core, world-class brands, will further improve our market position and allow Strongco to deliver greater value over the longer term." 

Activities During the Fourth Quarter and the Year

Fourth Quarter and Year-End Results Materials
The complete fourth quarter and year-end 2018 MD&A and Audited Consolidated Financial Statements are available on our website at www.strongco.com/en/investor-relations/financial-reports/.

Conference Call Details
Strongco will hold a conference call on Wednesday, March 20 at 10:00am ET to discuss fourth quarter and year-end results. Analysts and investors can participate by dialing 1-800-319-4610 or +1-604-638-5340 outside of Canada and the USA. Following management's introductory remarks, a question and answer session will take place for analysts and institutional investors.

An archived recording will be available to listeners following the call until midnight on April 20, 2019. To access it, dial 1-855-669-9658 or +1-604-674-8052 outside of Canada and the U.S., and enter passcode 3002#.

About Strongco Corporation
Strongco Corporation is a major multiline mobile equipment dealer with operations across Canada. Strongco sells, rents and services equipment used in diverse sectors such as construction, infrastructure, mining, oil and gas, utilities, municipalities, waste management and forestry. The Company has approximately 500 employees serving customers from 25 branches in Canada. Strongco represents leading equipment manufacturers with globally recognized brands, including Volvo Construction Equipment, Case Construction, Manitowoc Crane, including National and Grove, Terex Trucks, Fassi, Sennebogen, Konecranes and SDLG. Strongco is listed on the Toronto Stock Exchange under the symbol SQP.

Forward-Looking Statements
This news release contains forward-looking statements that involve assumptions and estimates that may not be realized and other risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions which are based on information currently available to the Company's management. The forward-looking statements include but are not limited to: (i) the ability of the Company to meet contractual obligations through cash flow generated from operations, (ii) the expectation that customer support revenues will grow following the warranty period on new machine sales, and (iii) the outlook for 2019. There is significant risk that forward-looking statements will not prove to be accurate. These statements are based on a number of assumptions, including, but not limited to, continued demand for Strongco's products and services. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. The inclusion of this information should not be regarded as a representation of the Company or any other person that the anticipated results will be achieved and investors are cautioned not to place undue reliance on such information. These forward-looking statements are made as of the date of this press release, or as otherwise stated and the Company does not assume any obligation to update or revise them to reflect new events or circumstances.

Additional information, including the Company's Annual Information Form, may be found on SEDAR at www.sedar.com.

Footnotes
* "EBITDA" refers to earnings before interest, income taxes, amortization of capital assets, amortization of equipment inventory on rent, amortization of rental fleet and lease termination costs. EBITDA is presented as a measure used by many investors to compare issuers on the basis of ability to generate cash flow from operations. EBITDA is not a measure of financial performance or earnings recognized under International Financial Reporting Standards ("IFRS") and therefore has no standardized meaning prescribed by IFRS and may not be comparable to similar terms and measures presented by other similar issuers. The Company's management believes that EBITDA is an important supplemental measure in evaluating the Company's performance and in determining whether to invest in shares. Readers of this information are cautioned that EBITDA should not be construed as an alternative to net income or loss determined in accordance with IFRS as indicators of the Company's performance or to cash flows from operating, investing and financing activities as measures of the Company's liquidity and cash flows.

SOURCE Strongco Corporation


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News published on 19 march 2019 at 18:06 and distributed by: