Acquisitions and strong growth in the manufacturing sector drove revenue at Exchange Income Corp. up 87 per cent to $147 million in the first quarter of 2012.
The Winnipeg-based diversified, acquisition-oriented company also generated increased EBITDA of $14.4 million up 15 per cent from the year before.
The revenue growth was primarily due to the acquisition of WesTower which was completed in April of 2011. Revenue growth was also due to the strong performance of its pre-existing manufacturing segment companies, particularly Stainless Fabrication.
But the company recorded profits of less than half as much as the previous year’s first quarter — $0.9 million this year compared to $2 million in the first quarter of 2011.
The decline was attributable to a number of factors, including equipment leasing charges expensed by Calm Air for aircraft needed to service customer contracts, higher fuel charges that were not offset by corresponding customer surcharges, increased competition within the eastern Canada markets served by Bearskin, and higher interest charges stemming from previous financing activities.
Exchange Income shares were down 10 cents in midday trading to $25.10.