Revenue for Canada’s Strongco Jumps 21 Percent in Second Quarter
Strongco Corp., a Canadian distributor and rental operation, posted CDN $122 million in revenue for the second quarter, compared to $100.7 million in the second quarter a year ago, a 21.2-percent increase. EBITDA doubled from $3.68 million in the second quarter of 2017 to $7.34 million this year.
Strongco attributed the increase to several factors. Rental revenues leaped 68 percent in the quarter, with increases across all regions. Rental revenue was up 31 percent for the first six months of the year. Construction equipment sales increased 25 percent year over year in the quarter, with increases in all regions of the country, led by strong sales and RPO conversions in Western Canada. For the first six months of the year, construction equipment sales jumped 28 percent. Crane sales jumped 13 percent in the quarter, with stronger sales in Alberta and Quebec, although crane sales were down 39 percent year to date.
For the first six months of the year, total revenue was $211 million, compared to $190.6 million for the first six months of last year, a 10.7-percent uptick.
“We are pleased to report significant year-over-year growth for the quarter, the result of ongoing market recovery in Alberta and Quebec, combined with sales improvements in equipment, rentals and product support, and overall market share increases for GPE across the country,” said Robert Beutel, executive chairman of Strongco. “While management is encouraged by the positive performance to date, some uncertainties remain with respect to the extent of the rebound in Alberta, the specific impact of U.S.-Canada trade tariffs, and the resulting demand for heavy construction equipment. Nevertheless, we are confident that the streamlining initiatives over the past two years have positioned the business for greater financial stability and enhanced stakeholder value over the long term.”
Strongco has 26 branches in Canada and represents manufacturers such as Volvo Construction Equipment, Case Construction, Manitowoc Crane including National and Grove, Terex Cedarapids, Terex Trucks, Konecranes, SDLG and more. Based in Mississauga, Ontario, Canada, Strongco is No. 92 on the RER 100.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.