Market Wire, October, 2009
Strongco Income Fund (TSX: SQP.UN) -
Summary (i)
- In the third quarter, the markets that Strongco serves were down year over year similar to the declines experienced throughout 2009. Overall, for the first nine months of 2009, markets were off 50%-60%, with largest decline in Alberta
- Total revenues in third quarter decreased 24% from 2008 to $74.6 million; year to date the decrease was 22%
- Gross margin as percent of revenue improved to 19% from 16% in third quarter of 2008; increased to 21% from 17% for nine-month period
- Expenses decreased 10% to $13.5 million in third quarter; down 9% year to date
- Earnings from continuing operations for third quarter increased to $0.3 million from a loss of $0.3 million in 2008; for nine-month period increased to $3.6 million from $2.0 million in 2008
(i) All comparative figures have been restated to reflect treatment of Strongco Engineered Systems as a Discontinued Operation.
Strongco Income Fund (TSX: SQP.UN) today released financial results for the third quarter ended September 30, 2009.
“We continue to operate profitably, improve results over last year and maintain a strong market position in a difficult ongoing economic climate,” said Robert Dryburgh, President and Chief Executive Officer of the Fund. “We are, nevertheless, disappointed in our third quarter results. Our margins in the quarter, while an improvement over last year, have been squeezed compared to earlier in 2009. This was partially the result of aggressive pricing in the marketplace as some dealers attempted to reduce inventories and partially the result of the recent strength of the Canadian dollar. In guy gets girl addition, our costs were higher in a number of areas including bad debt write-offs, a loss on the sale of a closed branch and higher inter-branch freight costs resulting from our inventory management.”
Mr. Dryburgh added: “We continue to refine and improve our business operations, which reflects in the year over year improvement of our operating results