Canadian distributor Strongo posted $98 million in revenue in the third quarter compared to $99 million in the third quarter a year ago. For the first nine months of the year, Strongco posted $302.8 million compared to $310 million in the first nine months of 2018, a 2.3-percent decline.
For the quarter, however, EBITDA improved from $8.2 million a year ago to $13.3 million this year. EBITDA also improved in the nine-month period from $22.6 million a year ago to $33.9 million this year.
Rental revenue for the quarter was $6.6 million compared to $4.8 million a year ago, a 36.5-percent leap. For the first nine months of the year, rental revenue was $15.2 million compared to $13.3 million a year ago, a 13.9-percent hike.
The company said rental revenues were higher across all regions, with increased demand for rentals. It also reported stronger product support revenues, particularly in Quebec. However, sales of construction equipment and cranes were lower in Ontario and Alberta, partially offset by higher sales in Quebec. Strong sales of articulated trucks, particularly in Alberta and Quebec offset weaker sales of other construction equipment.
“For the third quarter of this year, we are pleased to report improved profitability, the direct result of the actions taken over the past few years to generate greater stability for the business,” said executive chairman Robert Beutel. “Stronger rental and product support revenues were the key drivers of top-line performance, offset by a decline in equipment sales, due to softer markets estimated to be down 10 percent year to date. Nevertheless, the resulting increase in gross margins led to higher gross profit, and combined with lower expenses, left us well ahead of the prior year.”
Strongco, No. 89 on the RER 100, is based in Mississauga, Ontario, Canada. The company represents Volvo, Case, Manitowoc and other brands.