Cervus Restates Annual Financial Statements - No Impact on Net Earnings or Cash Flow
Symbol: CVL (TSX)
CALGARY, July 23, 2014 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced that it has restated its consolidated annual financial results for 2013 and 2012. The restatement will result in a decrease in parts and service revenue of $38.7 million in 2013 and $29.2 million in 2012, and an equal and offsetting decrease in cost of sales of $38.7 million in 2013 and $29.2 million in 2012. All other income statement items remain unchanged, including net income, cash flow from operating activities and there is no impact on the financial position of the Company. The restatement will result in a slight increase to gross profit percentage and EBITDA as a percentage of revenues, although gross profit and EBITDA dollars will remain unchanged
The restatement arose from the Company's historical practice of recording internal parts and service revenue, related to preparing new and used equipment for sale, as a component of the equipment's cost. This resulted in increased parts and service revenue and increased cost of sales, by equal and offsetting amounts. The Company previously identified and removed the internal profit which arose from the internal sales of parts and service, and this has not changed under the restatement.
The audited restated 2013 annual financial statements, management's discussion and analysis and annual information form will be re-filed on SEDAR.
About Cervus Equipment Corporation
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 56 dealership locations in Western Canada, New Zealand, and Australia. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick and Doosan material handling equipment; and Peterbilt transportation equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Cervus Equipment CorporationFor further information:
Graham Drake - President & CEO
Telephone: (403) 567-2095
Fax: (403) 567-0392
Randy Muth - Chief Financial Officer
Telephone: (403) 567-2097
Fax: (403) 567-0392