A bigger and busier fleet helped drive a Sylvan Lake hydrovac and vacuum truck company to strong earnings for the three months ended March 31.
Lonestar West Inc. (TSXV: LSI) reported on Thursday that it generated revenues of $5.8 million and an operating profit of $667,000 during the third quarter of its 2012 fiscal year. Those figures topped the comparable numbers for the same period in 2011 — when revenues were $4 million and net earnings $569,000 — by 45 per cent and 17 per cent respectively.
The company said in a release that it benefited from favourable commodity prices and infrastructure development activities in Western Canada. It also noted that its fleet has grown larger and had a higher utililization rate than a year earlier.
At the end of Lonestar’s third quarter its fleet consisted of 33 trucks, including 25 hydrovac and eight vacuum units. As of Dec. 31, 2011, the company’s fleet was made up of 21 hydrovac and six vacuum trucks.
“Our strategy is to add to our fleet while maintaining a high overall utilization rate,” said CEO James Horvath. “We anticipate receiving additional HVAC trucks over the next several quarters, and are actively seeking out acquisitions to grow our fleet.”
Lonestar operates throughout Western Canada from its base in Sylvan Lake.