Canadian distributor Strongco posted third quarter revenues of CDN $86.7 million, almost equaling its total of $87.3 million in the third quarter of 2015. For the first nine months of 2016, the company also almost equaled last year’s numbers with revenue of $280.1 compared to $283.6 million in the year-ago frame.
“2016 is a year of transition for Strongco; a time to refocus, simplify and streamline the business to be better positioned to generate sustainable performance,” said Robert Beutel, executive chairman of Strongco. “Reduced cash expenses, equipment inventories, and the associated notes payable, continue to move in a more positive direction. In the quarter, management took an impairment charge against its SAP computer system, recorded an additional restructuring provision for further headcount reductions, sold its U.S. subsidiary Chadwick-BaRoss for a small gain, and booked a valuation allowance against deferred tax assets, all in an effort to bring additional stability to our operations and the balance sheet.
“With ongoing weak market conditions expected to continue to impact cash flow, we believe the actions taken in the near term will help to deliver better value over the long term.”
Based in Mississauga, Ontario, Canada, Strongco Corp. is No. 82 on the RER 100.
