For the three months ended December 31, 2012, revenue increased to $44.0 million. On a pro forma basis, the Company achieved organic revenue growth of $7.2 million or 20% over the $36.8 million combined revenue of ENTREC and each of its 2012 business acquisitions in the same three-month period in 2011. Growth was primarily achieved through the capital-driven expansion of the Company's equipment fleet and cross-utilization of ENTREC's people and equipment among its geographic areas.
Adjusted EBITDA increased to $32.2 million during the year ended December 31, 2012 from $4.9 million in the comparative 14-month transitional year ended December 31, 2011. Likewise, for the three months ended December 31, 2012, adjusted EBITDA increased to $10.4 million from $2.1 million during the comparative two months ended December 31, 2011. Higher revenue, combined with an increased gross profit margin, were the key factors in these increases. As a percentage of revenue, adjusted EBITDA margin increased to 24.3% in the year ended December 31, 2012 from 15.1% in 2011.
Due to higher revenue and a higher gross margin during the year ended December 31, 2012, adjusted net income increased to $13.0 million or $0.19 per share, from $1.0 million or $0.05 per share in the comparative period ended December 31, 2011. Likewise, adjusted net income grew to $3.6 million or $0.04 per share in the quarter ended December 31, 2012 from $0.7 million or $0.02 per share in the comparative two months ended December 31, 2011.
In the fourth quarter of 2012, ENTREC introduced adjusted net income as a new non-IFRS financial measure to exclude the after-tax amortization of acquisition-related intangible assets, non-cash interest accretion expense arising from its convertible debentures, and the related change in fair value of the embedded derivative. These exclusions represent non-cash charges the Company does not consider indicative of business performance.
Net income during the year ended December 31, 2012 also grew to $12.1 million from $0.8 million in the comparative 14-month transitional year ended December 31, 2011. Net income during the three months ended December 31, 2012 was $3.4 million (two months ended December 31, 2011 - $0.6 million).
"We are proud of our performance and grateful to our industry leading employees, loyal customers and supportive shareholders for enabling us to make it happen," adds Mr. Stevens. "The year's financial results reflect our founding principle of doing what you say you are going to do. Today ENTREC is solidly positioned for further profitable growth in 2013."
Strong Outlook for 2013 and 2014
Capital spending on projects in the Alberta oil sands region and across western Canada remains robust, resulting in high demand for crane and heavy haul transportation services. Utilization rates for ENTREC's fleet are strong and the Company continues to field many requests for additional equipment from its customers. Based on expected schedules for future projects, the Company also believes demand for its crane and heavy haul transportation services will continue to grow sequentially in 2014 over anticipated 2013 activity.
ENTREC is also benefiting from the burgeoning industrial development occurring in northern B.C. This includes the anticipated development of liquefied natural gas (LNG) facilities in northwest B.C. in the coming years, as well as ongoing mining, hydro-electric, pipeline, and oil and natural gas projects throughout these areas. In addition, ENTREC is providing crane services to support a multi-billion-dollar revitalization of an aluminum smelter in Kitimat, B.C. ENTREC first entered this region through its acquisition of Rain Coast Cranes & Equipment Inc. in October 2012. Consistent with the outlook for the Alberta oil sands region, ENTREC expects demand for crane and heavy haul transportation services in northern B.C. to grow further as it looks out to 2014 and 2015, based on estimated project schedules and overall industrial activity.
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