WesternOne Equity Income Fund, known in the market as WesternOne Rentals & Sales posted year-over-year organic growth of 12.9 percent in third-quarter revenue and 10.7 percent in EBITDA as a result of solid construction equipment rentals and services in British Columbia and Alberta.
WesternOne’s Britco division generated revenue of $22.6 million and EBITDA of $4.1 million from modular building manufacturing, leasing and site services. Management executed its expansion strategy to enter into the southern U.S. modular workforce housing market by setting up Britco Structures USA LLC with two minority investors in September.
“We are pleased to see the improvements in Q3 under the execution of our growth strategy through rental fleet expansion and business acquisition,” said Darren Latoski, CEO. “We continue to see solid activities in the construction and infrastructure sector, which gives rise to growth in demand and rental rates for our rental equipment and modular trailers. Britco’s modular manufacturing business also benefits from the growth in the oil and gas and other resource sectors, as evidenced by the signing of a $45 million workforce housing contract in northern Alberta earlier this summer. We are well positioned to serve this increasing demand for workforce housing by increasing capacity at our existing plants and expanding in the southern U.S. energy sector.”
Revenue, which includes the Britco acquisition, increased 214.5 percent to CDN $35.3 million (about U.S. $34.7) for the third quarter compared with CDN $11.2 million in the same period a year ago. Revenue for the first nine months of 2011 more than doubled to CDN $73.3 million compared with $35.4 million for the first nine months of 2010.
WesternOne Rentals & Sales now has 11 locations in British Columbia and Alberta. The company is No. 57 on the RER 100.