WesternOne Inc. posted consolidated revenue of $46.8 million compared to $88 million in the third period of 2014, a decline mainly caused by lower manufacturing output and onsite work volume from the Britco modular space operations and higher operating costs from WesternOne Infrastructure Services’ expanded heat operations, compared to the year-ago period.
WesternOne’s aerial work platform rental segment was a strong point for the company increasing 10.5 percent from $9.6 million in the third quarter of 2014 to $10.6 million because of strong demand for aerial products from the general construction sectors in major markets in Alberta and the film and television production segment in British Columbia.
WesternOne generated strong cash flow in the third quarter from operations, totaling $22.5 million. The operating cash flow generation primarily related to earnings from the continuing operations, receipt of cash from the large workforce accommodations projects and improving working capital efficiency. Cash generated year to date from operating activities of the continuing operations was $71 million, compared to $38.7 million in the Q314.
The company strengthened its balance sheet by reducing bank indebtedness. During the third quarter, WesternOne reduced its senior bank indebtedness by $21.7 million from $69 million to $47.3 million as of the end of the third quarter.
Britco’s modular space rental division posted $3.4 million in revenue, a 13.2-percent hike compared to $3 million a year ago, in large part because of increased installation and transportation services to the general construction sector in B.C.
Overall, WesternOne’s infrastructure services division posted Q3 revenue of $15.2 million and adjusted EBITDA of $2.4 million, compared to the respective amounts of $15.8 million and $3.8 million in the previous year.
“The ongoing macroeconomic headwinds continue to impact our ability to grow our businesses,” said Peter Blake, CEO of WesternOne. “Our management team remains focused on executing our business plans and strengthening the balance sheet through operating cash flow generation and debt reduction. Our business plans include pursuing emerging opportunities in the B.C. LNG and other commercial and industrial sectors, including permanent modular construction through executing on project design and estimation and sales capabilities for Britco, and managing our rental fleet to maximize earnings and optimize return on investment for WIS.”
Based in Vancouver, B.C., Canada, WesternOne Rentals & Sales is No. 43 on the RER 100.