Canada’s WesternOne Rentals & Sales posted $26.7 million in consolidated revenue in the fourth quarter of 2017 compared to $20.7 million in the fourth quarter of 2016, a 28.7-percent jump. The growth was primarily because of increased activity in the construction sector and a comparatively colder winter in Alberta, benefiting the company’s construction heater rental demand. OEC on rent increased 15 percent and dollar utilization hiked from 53.2 percent in Q416 to 62.1 percent., reflecting a general increase in rental activity levels and revenue on fleet capital in major heat-related markets including Calgary, Edmonton and major projects locations in Northern Alberta.
Rental and rental-related services increased 19.8 percent to $17.9 million compared to $15 million in the previous year’s fourth quarter. Fuel and other product sales increased 52.2 percent to $8.7 million compared to $5.7 million in the prior-year period. Generally higher commodity price levels benefited WesternOne as well.
Gross profit increased 32.6 percent to $8.9 million compared to $6.7 million in the prior-year period primarily because of higher rental volumes. Gross margin was 33.4 percent compared to 32.4 percent in the year ago period.
Adjusted EBITDA increased 67.2 percent to $5.2 million from $3.1 million in the prior-year frame, and adjusted EBITDA margin increased to 19.3 percent from 14.9 percent.
For the full year, revenue from continuing operations was $79.6 million compared to $68.9 million in 2016, a 15.5-percent climb.
“We are very pleased to report strong year-over-year growth in Q4 as it reflects the ongoing favorable trend in rental activity levels in Western Canada, supported by the region’s gradual economic recovery,” said Peter Black, CEO of WesternOne. “While the improving business environment and cold weather in Alberta played a factor, the growth in the Q4 operating results was also attributable to our team’s continuing focus on executing our business strategy including optimizing rental rates where opportunities exist, managing costs, and leveraging our Wedge environmental monitoring technology to grow the Major Projects business within the heat division. We strive to maintain this positive momentum in the evolving business environment through managing our invested capital, including investments in new and replacement fleet and further potential acquisitions, as opportunities arise.”
Based in Vancouver, B.C., Canada, WesternOne Rentals & Sales is No. 57 on the RER 100.