press release 2007-5
FOR IMMEDIATE RELEASE
Toronto Stock Exchange
Symbol “TSX: CSA”
Commercial Reports $0.10 EPS (diluted) for Fiscal 2007 Q2
Edmonton Alberta, Canada, May 14, 2007 - COMMERCIAL SOLUTIONS INC. ("Commercial" or the "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission, oilfield, industrial, safety, survey and resource management equipment products and services, today announced its financial results for the second quarter ended March 31, 2007. A complete copy of the Company's report is available on the Internet at
www.sedar.com. Financial highlights from the fiscal 2007 second quarter are as follows:
For the three-month period ended March 31, 2007, Commercial reported revenue of $45.4 million compared to revenue of $34.5 million for the same period last year, representing a year-over-year increase of 31.5 percent. The Company reported a 5.3 percent increase in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $4.0 million versus $3.8 million for the same period last year. Net income for the quarter decreased by 4.0 percent to $2.1 million compared to $2.2 million during the second quarter of fiscal 2006.
For the six-month period ended March 31, 2007, Commercial reported revenue of $86.0 million compared to revenue of $64.5 million for the same period last year, representing a year-over-year increase of 33.3 percent. This resulted in a 5.2 percent increase in EBITDA of $6.8 million versus $6.5 million for the same period last year. Net income decreased by 3.9 percent to $3.4 million compared to $3.6 million for the six months ended March 31, 2006.
"During the second quarter, we sustained acquisition and organic sales growth, however the continued slowdown in the oil and gas industry, driven by low commodity prices, and significantly reduced activity in the shallow gas sector caused some pressure on our profit margins," noted James Barker, President & CEO of Commercial. "Based on what we are hearing from industry analysts, we expect the slowdown to ease off later this calendar year and we remain committed to our infrastructure to ensure further growth and profitability."
As at March 31, 2007, the basic average number of shares outstanding was 19,375,670 (20,333,497 fully diluted)
versus 14,519,870 (16,476,329 fully diluted) at the end of the same period in the year prior.
The Company will host a conference call to discuss the second quarter results on Monday May 14, 2007 at 4:00 p.m. Eastern Standard Time (EST). Scheduled speakers for the call will include Jim Barker, President and CEO, and Eric Sauze, CFO of Commercial Solutions Inc. Participants should dial 1-866-852-2121 or 416-695-5259 at least 10 minutes prior to the conference time of 4:00 p.m. For those unable to participate on the call, a replay will be available after 6:00 p.m. at 1-888-509-0081 or 416-695-5275 passcode 644325 until midnight, May 28, 2007.
About Commercial
Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 40 Services Centres and approximately 400 employees located across Canada. Commercial offers more than 160,000 items critical to maintenance repair and operations (MRO) and original equipment manufacturer (OEM) customers. The Company represents 450 leading manufacturers and serves over 11,000 customer accounts within a broad cross-section of industries, including oil and gas, forestry, food processing, chemical processing, mining and aggregate, utilities, agriculture and construction. Commercial trades under the symbol "CSA" on the Toronto Stock Exchange. For further information on the Company, please visit www.commercialsolutions.ca and for detailed financial information visit www.sedar.com.
Forward Looking Statements
From time to time, the Company may publish forward-looking statements relating to such matters as expected
financial performance, business prospects, development activities and like matters. These statements involve risk and uncertainties, including but not limited to the risk factors previously described. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. Commercial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.
FOR FURTHER INFORMATION PLEASE CONTACT:
Commercial Solutions Inc.
Eric Sauze
Chief Financial Officer
(780) 577-2215
esauze@csinet.ca
or
Genoa Management Limited
Ali Mahdavi
(416) 962-3300
+1 (866) 430-6247
info@genoa.ca
www.genoa.ca
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