August 9, 2018 - 6:20 PM EDT
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WesternOne Inc. Reports 2018 Q2 Results

Canada NewsWire

VANCOUVER, Aug. 9, 2018 /CNW/ - WesternOne Inc. ("WesternOne") (Toronto Stock Exchange: WEQ and WEQ.DB) today announced the release of its financial results for the three and six months ended June 30, 2018.

The results, consisting of WesternOne's unaudited interim financial statements for the three and six months ended June 30, 2018 and Management's Discussion and Analysis ("MD&A") dated August 9, 2018, are available on SEDAR (

2018 Q2 financial summary:

  • Consolidated revenue from continuing operations increased 26.7% to $17.9 million from $14.1 million in the prior year period. The growth was primarily attributable to higher rental activity levels, improved rental rates in certain markets and fleet categories, volume-induced increase in service and delivery revenues, and higher heat and power related rentals and fuel sales from the Alberta markets at the beginning of the quarter due to comparatively cooler spring conditions.

  • Dollar utilization(1) increased to 42.3% from 37.8% in the prior year period while OEC on rent(2) increased 2.4% year-over-year, reflecting growth in both revenue on fleet capital and rental activity levels.

  • Gross profit increased 100.3% to $4.2 million from $2.1 million in the prior year period and gross margin increased to 23.6% from 14.9% in the prior year period. The growth was primarily due to higher operating efficiencies derived from a larger revenue base which was driven by higher rental activity levels, improved rental rates, increased service and delivery revenues and higher heat and power related rentals and fuel sales as mentioned above.

  • Adjusted EBITDA (as defined below) improved to negative $0.6 million from negative $1.8 million in the prior year period due to the factors described above.

  • Net cash from operating activities of continuing operations increased 99.4% to $11.1 million from $5.6 million in the prior year primarily due to collection of significantly larger accounts receivable generated from the previous construction heat season as a result of increased heat-related business activity levels. Net change in cash position from continuing operations increased 40.7% to $5.6 million from $4.0 million. Other major factors leading to the net change in cash position included ordinary fleet capital expenditures, loan advances (net of repayments) and related interest, and repayment of finance lease obligations.

  • Net loss from continuing operations attributable to shareholders was $6.9 million ($0.42 per share), compared to net loss of $9.8 million ($0.58 per share) in the prior year period. Included in net loss were non-cash finance expenses relating to changes in the fair value of convertible debentures at period-end. Excluding the related non-cash effects on an after-tax basis, net loss would have been $6.0 million ($0.36 per share), compared to net loss of $6.8 million ($0.40 per share) in the prior year period.

Summary Financial Overview
($ millions except per share amounts)

Three months ended

 June 30,


Six months ended
June 30,






Revenue from Continuing Operations

$     17.9

$    14.1

$     52.2

$    40.2

Gross Profit from Continuing Operations





Adjusted EBITDA (1) (2)





Net Loss from Continuing Operations 





Net Loss from Discontinued Operations





Net Loss





Loss per share from Continuing Operations (2)





Loss per share (2)






"Adjusted EBITDA" is not a recognized measure under IFRS and does not have a standardized meaning prescribed by IFRS. "Adjusted EBITDA" refers to net income or loss from continuing operations before interest, taxes, depreciation and amortization, and other specified items that would impact comparability including, where applicable, non-operational income and expenses, securities-based compensation and other gains or losses. The use of the term "non-operational income and expenses" is defined by WesternOne as those that do not impact operating decisions taken by WesternOne's management as well as items of an unusual nature that do not reflect WesternOne's ongoing operations. For a full description of adjusted EBITDA, refer to "Non-IFRS Measures" in the MD&A dated August 9, 2018.


Represents amount attributable to shareholders.

"We are encouraged with the continued positive trending in rental demand from the major industrial sectors in Western Canada. Our Q2 operating results were supported by the improving business environment, in particular the construction sector in Alberta, giving rise to improvements in rental rates in some markets and higher operating margins," said Peter Blake, CEO of WesternOne. "We strive to maintain this positive momentum and increase shareholder value through effectively managing fleet capital for enhanced returns and expanding our WEDGE remote monitoring capability for a wider market appeal."

Conference Call

Peter Blake, CEO, and the management team will host a conference call at 11:00am (Eastern time) or 8:00am (Pacific time), on Friday, August 10, 2018 to review the financial results and corporate developments for the three and six months ended June 30, 2018.

To participate in this conference call, please dial one of the following numbers approximately 10 minutes prior to the commencement of the call and ask to join the WesternOne conference call.

Dial in numbers: 

Toll Free......................................................1-888-390-0546

International or Local Toronto........................ 1-416-764-8688

Conference Call Replay

If you cannot participate on August 10, 2018, a replay of the conference call will be available on WesternOne's website at or by dialing one of the following replay numbers. Please enter the Replay ID number 205592 followed by the # key.

Replay Dial-In: 

Toll Free......................................................1-888-390-0541

International or Local Toronto........................ 1-416-764-8677

Forward-looking Information

Certain statements in this news release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such information includes, without limitation, statements with respect to: WesternOne's strategy to manage fleet capital for enhanced returns and expand its WEDGE remote monitoring capability for a wider market appeal. Actual events or results may differ materially.

Forward-looking information contained in this news release is based on certain key expectations and assumptions made by WesternOne, including, without limitation: net receivables are collectible and payments to suppliers will continue under current terms, the stability of the economy in Western Canada; the impact of the current economic climate in Western Canada on WesternOne's operations will remain consistent with WesternOne's current expectations; the increased competitive environment in which WesternOne and its business units operate; a protracted period of lower crude oil prices; rental rates will be subject to supply-related and competitive pressure in 2018; the supply and demand for WesternOne's products and services and the related impact on the pricing on such products and services will remain consistent with WesternOne's current expectations; management's assessment of future plans and operations; WesternOne will be able to purchase and cancel common shares pursuant to WesternOne's normal course issuer bid (the "NCIB"); WesternOne will have adequate cash to conduct the NCIB as contemplated; purchases made under the NCIB will be advantageous to shareholders; WesternOne will be able to grow through acquisitions and organic expansion; WesternOne will be able to: (i) fund debt maturities and to meet current and future obligations; (ii) collect net receivables; (iii) integrate newly acquired businesses; (iv) maintain payments to suppliers under current terms; and (v) expand its product offering and customer base; critical accounting estimates; WesternOne will be able to discharge its liabilities; the impact from the wind-down of WesternOne's Australian operations will remain consistent with WesternOne's current expectations; no principal repayments will be required under WesternOne's $35.0 million secured asset-based revolving credit facility (the "ABL Facility") prior to maturity; the impact on rental rates from supply-related and competitive pressure will remain consistent with the WesternOne's current expectations; rental activity levels are expected to continue its moderate growth trend; and the contractual requirements of WesternOne under the ABL Facility are met. Although the forward-looking information contained in this news release is based upon what WesternOne's management believes to be reasonable assumptions, WesternOne cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this news release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risk Factors" in WesternOne's Annual Information Form dated March 27, 2018 and MD&A dated August 9, 2018, which are both available on SEDAR (

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to WesternOne. The forward-looking information is made as of the date of this news release and WesternOne assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

About WesternOne

WesternOne seeks to acquire and grow businesses in the construction and infrastructure services sectors in order to generate value for its shareholders.

Additional Information

Additional information relating to WesternOne and other public filings, is available on SEDAR at or on WesternOne's website at

Trading Symbols

Toronto Stock Exchange: WEQ and WEQ.DB



Calculated as annualized rental and related services revenue divided by the average total OEC fleet value for the period.


Represents the average original equipment costs ("OEC") of fleet that were on rent for the period


SOURCE WesternOne Inc.

View original content:

For investor relations information, please contact: Andrew Greig, Manager of Investor Relations, WesternOne Inc., Suite 910, 925 West Georgia Street, Vancouver, BC V6C 3L2, Phone: (604) 678-4042, E-mail: [email protected] CNW Group 2018

Source: Canada Newswire (August 9, 2018 - 6:20 PM EDT)

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