Strongco Revenue Jumps 44 Percent in 2011, Plans Fort McMurray Branch
MISSISSAUGA, Ontario — Canadian distributor Strongco posted a 44-percent revenue hike in 2011, with CDN $423.2 million in revenue, compared with $294.7 million in 2010. Fourth-quarter revenues jumped 23 percent year over year, from $91.8 million in Q410 to $113.2 million in 2011.
Strongco's rental revenue was CDN $29.6 million for the year, compared with $22.2 million in 2010, a 25-percent increase.
“We are pleased with Strongco's performance during 2011,” said Robert Dryburgh, president and CEO. “Our results were far ahead of 2010 in every major category — revenues, margins, EBITDA, net earnings and EPS. In addition, our acquisition of Chadwick-Baross Inc. in February 2011 plus the new branches, facility upgrades and brand expansion we announced during the year position Strongco for continued, sustainable growth.”
Strongco's increases in 2011 were fueled by Canada's recovering commercial construction market, infrastructure spending and increased activity in the oil and gas and mining sectors.
“Strongco's order book continued at a strong level throughout 2011 and remains robust in the first quarter of 2012,” added Dryburgh. “This is a solid leading indicator of demand as we proceed into the main selling season this year.”
Strongco's rental revenues in the fourth quarter were $8.9 million, including $1.3 million from Chadwick-Baross, a 22-percent year-over-year increase.
The company last month also signed a contract to purchase six acres of land in Fort McMurray, Alberta, to build a 23,000-square-foot facility to strengthen its presence in energy-rich northern Alberta.
Construction is planned to begin in August, to be completed in February 2013. Finalization of the land purchase is subject to customary due diligence. The new facility will carry Strongco's full line of products from Volvo Construction Equipment, as well as Manitowoc, National and Grove crane products and others.
“This is the second step of our strategy to strengthen Strongco's presence in Alberta and to position the company to build market share in the oil and gas sector,” said Dryburgh. “The first step was construction of a new branch in Edmonton, announced in 2011. Strongco will relocate its regional Volvo operations into that new facility this month and begin the upgrade of its existing Edmonton crane facility. The continuing strength of this market, combined with major capital commitments for further expansion of the energy sector, gives us the confidence to put in place the infrastructure to support our planned growth in this region.”
Strongco has 25 branches in Canada and five in the United States. Based in Mississauga, Ontario, Canada, Strongco is No. 67 on the RER 100.
