Q1 Financial Report - 2011
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OVERVIEW<br />
Trade sales for the three month period ended March 31, <strong>2011</strong> increased $14.4 million or<br />
28% compared to the same period in the prior year due to strong demand for commercial<br />
equipment and contributions from newly acquired entities. International sales increased<br />
by 62% to $11.3 million largely due to commercial projects in Eastern Europe, South<br />
America and the Middle East. In North America, strong demand for commercial handling<br />
equipment more than offset the effect of less than optimal crop conditions in western<br />
Canada and a continuing strong Canadian dollar. Trade sales excluding newly acquired<br />
divisions increased $1.6 million, and had the foreign exchange rates experienced in 2010<br />
been in effect in <strong>2011</strong>, trade sales net of acquisitions would have increased approximately<br />
$4.3 million or 8% over 2010.<br />
The Company also realized significant increases in EBITDA (14%) and adjusted<br />
EBITDA (20%) in <strong>2011</strong> compared to 2010. The growth in EBITDA was largely due to<br />
increased sales and earnings from two of its commercial divisions, Hi Roller and Union<br />
Iron, which resulted from strong demand both in North America and overseas. The<br />
EBITDA contribution from newly acquired divisions was limited in the first quarter<br />
primarily due the extreme seasonality of Finland based Mepu. Profit for the period<br />
increased 8% and basic and fully diluted net profit per share both increased 15%<br />
compared to the same period in the prior year.<br />
ADOPTION OF IFRS<br />
This MD&A is the Company’s first under IFRS. A comprehensive summary of all of the<br />
significant changes including the various reconciliations of CGAAP financial statements to those<br />
prepared under IFRS is included in Note 35 to the Company’s unaudited interim consolidated<br />
financial statements for the three month period ended March 31, <strong>2011</strong>. Additional information<br />
regarding the Company’s adoption of IFRS may also be found in “Transition to IFRS” in this<br />
MD&A.<br />
Although the adoption of IFRS resulted in adjustments to the Company’s financial statements, it<br />
did not materially affect the underlying cash flows or profitability trends of the Company. The<br />
following table reconciles net income as reported under CGAAP in 2010 to profit restated under<br />
IFRS for the three month period ended March 31, 2010 and the year ended December 31, 2010:<br />
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