VANCOUVER, May 9, 2018 /CNW/ - WesternOne Inc. ("WesternOne") (Toronto Stock Exchange: WEQ and WEQ.DB) today announced the release of its financial results for the three-month period ended March 31, 2018.

The results, consisting of WesternOne's unaudited interim financial statements for the three-month period ended March 31, 2018 and Management's Discussion and Analysis ("MD&A") dated May 9, 2018, are available on SEDAR (www.sedar.com).

2018 Q1 financial summary:

• Consolidated revenue from continuing operations increased 31.9% to $34.3 million from $26.0 million in the prior year period. The growth was primarily attributable to continued strong activity in the construction sector and cold winter conditions in Alberta, increasing demand for rental equipment and construction heat-related fuel and services.
  
  
• OEC on rent⁽¹⁾ increased 10.7% and dollar utilization⁽²⁾ increased to 73.1% from 62.5% in the prior year period due to growth in both heat and aerial rental activity levels and revenue on fleet capital in major heat-related markets including Calgary, Edmonton and Major Projects locations in Northern Alberta.
  
  
• Rental and related services revenue increased 22.8% to $21.8 million from $17.7 million in the prior year period primarily due to increased rental demand for heat-related equipment. Fuel and other product sales increased 51.4% to $12.5 million from $8.3 million in the prior year period primarily due to a 43.5% growth in fuel sales volume and generally higher commodity price levels.
  
  
• Gross profit increased 36.4% to $14.6 million from $10.7 million in the prior year period primarily due to an increased revenue base driven by higher rental volumes and related fuel sales. Gross margin was 42.4% and increased from 41.0% in the prior year period primarily due to higher operating efficiencies which stemmed from the rental volume growth.
  
  
• Adjusted EBITDA (as defined below) increased 63.6% to $10.0 million from $6.1 million in the prior year period and adjusted EBITDA margin increased to 29.3% from 23.6% due to the factors described above.
  
  
• Net cash from operating activities of continuing operations was negative $1.7 million. Net of cash inflow from operating earnings, the net cash outflow from operating activities was due to seasonal working capital deployment in relation to the construction heat operations. Net change in cash position from continuing operations was negative $3.9 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 repurchases of WesternOne's common shares pursuant to its normal course issuer bid announced in late 2017.
  
  
• Net income from continuing operations attributable to shareholders was $4.1 million ($0.24 per share), compared to a net loss of $4.8 million ($0.28 per share) in the prior year period. Included in net income or 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 income would have been $4.6 million ($0.28 per share), compared to a net income of $0.2 million ($0.01 per share) in the prior year period.

"Our strong Q1 operating results were driven by ongoing positive trending in industry demand for rental equipment, favourable weather conditions in Alberta, and above all, dedication from our front line employees delivering quality services to our customers in urban and remote markets," said Peter Blake, CEO of WesternOne. "We are encouraged with the continued signs of gradual economic growth in the Western Canadian markets as we execute our business strategy to enhance capital returns through managing revenue growth, redeploying fleet within branches and leveraging our WEDGE remote monitoring technology."

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 Thursday, May 10, 2018 to review the financial results and corporate developments for the three-month period ended March 31, 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.

Conference Call Replay

If you cannot participate on May 10, 2018, a replay of the conference call will be available on WesternOne's website at www.weq.ca or by dialing one of the following replay numbers. Please enter the Replay ID number 065481 followed by the # key.

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 expectation of the continued gradual economic growth in the Western Canadian markets and its execution of business strategy to enhance capital returns through managing revenue growth, redeploying fleet within branches and leveraging its WEDGE remote monitoring technology. 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 May 9, 2018, which are both available on SEDAR (www.sedar.com).

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 www.sedar.com or on WesternOne's website at www.weq.ca.

Trading Symbols

Toronto Stock Exchange: WEQ and WEQ.DB

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.

SOURCE WesternOne Inc.