November 6, 2018 - 6:50 PM EST
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WesternOne Inc. Reports 2018 Q3 Results

Canada NewsWire

VANCOUVER, Nov. 6, 2018 /CNW/ - WesternOne Inc. ("WesternOne") (Toronto Stock Exchange: WEQ and WEQ.DB) today announced the release of its financial results for the three and nine months ended September 30, 2018.

The results, consisting of WesternOne's unaudited interim financial statements for the three and nine months ended September 30, 2018 and Management's Discussion and Analysis ("MD&A") dated November 6, 2018, are available on SEDAR (

2018 Q3 financial summary:

  • Consolidated revenue from continuing operations increased 14.2% to $14.6 million from $12.8 million in the prior year period. The growth was primarily attributable to higher rental activity levels particularly in the Vancouver Island markets, higher fuel sales from the Alberta markets, and a general increase in service and delivery revenues.

  • Dollar utilization(1) remained consistent at 36.1% compared to 36.0% in the prior year period.  OEC on rent(2) increased 1.4% year-over-year, reflecting increased rental activity levels of aerial equipment in the Vancouver Island markets but partially offset by general decreases in heat equipment rentals due to temperature variations in Alberta during the quarter.

  • Gross profit increased 62.8% to $2.7 million from $1.7 million in the prior year period and gross margin increased to 18.7% from 13.2% in the prior year period. The growth was in part due to higher operating efficiencies derived from a larger revenue base which was mainly driven by higher rental activity levels and related service and delivery revenues. 

  • Adjusted EBITDA (as defined below) of the WesternOne Infrastructure Services division ("WIS") was negative $0.6 million, compared to negative $1.0 million in the prior year period due to the factors described above. Consolidated adjusted EBITDA was negative $1.9 million, compared to negative $1.7 million in the prior year period. The change was mainly due to higher corporate overhead and professional fees relating to the agreement to sell the business of WIS and substantially all of the related assets as announced by WesternOne on October 22, 2018, which is subject to various conditions (the "WIS Sale"). The WIS Sale is anticipated to be completed on or about November 30, 2018 and in any event no later than December 31, 2018.

  • Net cash from operating activities of continuing operations was $1.6 million, compared to negative $1.3 million in the prior year primarily due to collection of accounts receivable from an increased revenue base and timing of accounts payable payments. Net change in cash position from continuing operations was negative $4.0 million, compared to negative $7.0 million in the prior year period. 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 $7.3 million ($0.44 per share), compared to net loss of $6.7 million ($0.39 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 $7.1 million ($0.43 per share), compared to net loss of $6.8 million ($0.40 per share) in the prior year period.



Calculated as annualized rental and related services revenue divided by the average total original equipment costs  ("OEC") fleet value for the period.


Represents the OEC of fleet that were on rent for the period.


Summary Financial Overview

Three months ended
September 30,

Nine months ended
September 30,

($ millions except per share amounts)





Revenue from Continuing Operations









Gross Profit from Continuing Operations





Adjusted EBITDA (1) (2)





Net Loss from Continuing Operations 





Income/(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 November 6, 2018.


Represents amount attributable to shareholders.


The completion of the WIS Sale will allow WesternOne to wind-up its operations and return to its shareholders the net proceeds of the sale, after repayment of all bank debt and other liabilities including its outstanding debentures, taxes and transaction related expenses as part of a Court approved liquidation process. Following the completion of the sale, the common shares and its outstanding debentures are expected to cease trading and, pursuant to a voluntary application to be made to the Toronto Stock Exchange ("TSX"), be delisted.

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: the estimated completion date of the WIS Sale; the repayment of all of WesternOne's obligations; WesternOne's intention to wind-up its operations following closing of the WIS Sale; and WesternOne's intention to make application to the TSX for the voluntary delisting of its common shares and debentures in connection with the WIS sale and proposed wind-up. 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: (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 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 its $35.0 million secured asset-based revolving credit facility are met, the WIS Sale will be completed in accordance with the terms of the agreement and with the timing currently anticipated; and all conditions under the agreement to the completion of the transaction will be obtained. 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 November 6, 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


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 (November 6, 2018 - 6:50 PM EST)

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