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Strongco Rental Revenue Declines 19 Percent in 2009

Strongco Income Fund, one of Canada’s largest equipment dealers, posted CA$291.8 million in revenue in 2009 (about U.S. $289.1 million), compared with CA $398.3 million in 2008, a 26.7-percent decline. For the fourth quarter, Strongco revenue was CA$67.5, compared with $103.7 million for the fourth quarter of 2008, a 34.9-percent plunge.

Equipment rentals for the year was CA$14.3 million, a 19-percent drop compared to 2008 numbers. Product support revenues dropped 5 percent to CA$93.7 million.

“Without question, 2009 was a very tough year,” said Robert Dryburgh, president and CEO of Strongco. “However, despite the unprecedented economic downturn, we improved the profitability of Strongco’s core business. We also rationalized our branch network, reduced our people count, disposed of a non-strategic business, improved our balance sheet and established a more solid financial position to support future growth. Critical to that future, we continued to cultivate our customer relationships and maintained overall national market share.”

Rental revenues increased in Ontario, because of the impact of the acquisition of Champion Road Machinery in March 2008, however, rental revenues declined considerably in Alberta and Eastern Canada.

Strongco, based in Mississauga, Ontario, Canada is No. 89 on the RER 100.

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