News Articlehttps://www.winnipegfreepress.com/business/exchange-incomes-revenue-could-top-500m-this-year-133736128.html
EXCHANGE Income Corp. is on track to top $500 million in revenue this year.
And company CEO Mike Pyle says the expectation is that there ought to be an additional $100 million added next year just from organic growth from existing operations.
The Winnipeg-based acquisitions-oriented company booked record revenue and net profit for the third quarter this year. Revenue was up 126 per cent to $146 million and net profit jumped 64 per cent to $7.6 million. Year-to-date revenue is $362.5 million
Exchange owns regional airlines Perimeter Aviation, Keewatin Air, Calm Air and Bearskin Air. It also owns a number of manufacturing enterprises in Canada and the United States including its most recent acquisition, WesTower Communications, a cellphone tower installation and manufacturing company that operates in Canada and the United States.
The acquisition of WesTower in April balances Exchange's revenue between its aviation and manufacturing sectors, a diversification that helps shield the company from regional or sectoral downturns.
Even though its manufacturing companies, which include Alberta oilsands service companies, did experience a slowdown in the 2009 recession, Pyle said order books throughout its manufacturing holdings are as strong as they have been for three years.
With access to about $200 million in its credit facility, the company continues to be on the lookout for an acquisition that would establish its presence in a third sector.
Pyle said because of its healthy access to capital and the economic uncertainties that limit others in the marketplace, Exchange is becoming competitive on larger deals than was the case a few years ago.
He said Exchange is committed to maintaining its disciplined approach to acquisitions and the expectation is that the strong organic growth experienced in the recent quarter will continue into 2012.
In the third quarter, excluding the combined $5.9 million EBITDA contributions of its latest acquisitions, WesTower and Bearskin, pre-existing companies grew EBITDA by $16.3 million or 32 per cent.
The strategy of the company is to invest in profitable, well-established companies with strong cash flows operating in niche markets in Canada and/or the United States.