Canadian Equipment Rental Fund Limited Partnership Announces Second Quarter 2008 Results



    TSX Venture Symbol: CFL.UN

    CALGARY, Aug. 29 /CNW/ - Mr. Wayne Wadley, president of CERF GP Corp.,
the general partner of Canadian Equipment Rental Fund Limited Partnership
("CERF"), is pleased to announce the results for the second quarter ended 
June 30, 2008.
    Highlights of the three and six month periods ended June 30, 2008 were:

    
    -   Revenue for the quarter amounted to $3,717,615 representing an
        increase of 18% over the same quarter in 2007 and up 21% over the
        same six months of 2007.

    -   Operating margins increased to 53% compared to 51% for the six months
        ended June 10, 2007.

    -   Net income increased 47% over the first six months of 2007.

    -   Net income per unit increased to $0.40 basic compared to $0.29 for
        the six months ended June 30, 2007.

    -   Distributions of $0.16 per unit were declared for the quarter, $0.32
        for the six months.
    

    Mr. Wadley comments, "Alberta is still experiencing robust growth in most
sectors of its economy. The Province is dedicated to seeing that Alberta's
infrastructure keeps pace with this growth. Recently the Government of Alberta
announced a 20-year strategic plan for infrastructure wherein Premier Stelmach
reinforced his commitment to invest on average of $6 billion (2007 dollars)
per year for the next 20 years to meet short and medium long term
infrastructure goals. This plan captures eight specific areas including:
municipal infrastructure; provincial highway network, other transportation and
corridors; health facilities; schools; post secondary; housing and government
facilities; community facilities; and water and wastewater facilities.
Alberta's per capita spending on infrastructure remains at more than three
times the average of other provinces. No previous infrastructure plan has
looked 20 years ahead with this range and scope. The 20-year commitment will
allow Municipalities in Alberta to undertake long range infrastructure
projects and commit to long term construction contracts. Most of CERF LP's
customers are directly involved in these capital infrastructure projects and
have applauded the government for having the initiative to plan so far in
advance for Alberta's infrastructure needs.
    The residential building market has experienced a slight slowdown.
Several large real estate brokerage firms remain confident the excess
inventory will be sold by end of the year. Therefore, our large home builders
and commercial condominium contractors are continuing with their development
projects in Edmonton and area.
    The office, industrial and retail sectors remain strong with vacancy at
an all time low pushing demand for more development. Vacancy rates for office
space remains at under 2.5%, industrial at 1.44% and retail ranging from 1.44%
to 5.41% depending on the area. Large scale projects such as the EPCOR Tower,
currently being built in downtown Edmonton, and the new REXALL Place slated
for a downtown location, are prime examples of the optimism of mega projects
with spin offs in retail and office development.
    CERF LP continues to focus on equipment solution provision for our
customers. Providing equipment to meet their demand in a timely manner has
been a key to our success. CERF LP's board and management are optimistic about
the opportunities and are looking forward to a continued strong demand for our
services in 2008 and 2009."


    
    Canadian Equipment Rental Fund Limited Partnership
    Operating as 4-Way Equipment Rentals
    Balance Sheets - unaudited
    -------------------------------------------------------------------------
                                                      June 30,   December 31,
                                                         2008           2007
    -------------------------------------------------------------------------

    Assets
    Current assets:
      Cash                                       $    418,101   $    254,833
      Accounts receivable                           2,662,389      4,874,826
      Inventory                                       429,892        398,492
      Prepaid expenses                                141,041         64,289
    -------------------------------------------------------------------------
                                                    3,651,423      5,592,440

    Property and equipment                         14,751,251     13,297,555

    Prepaid rent                                       88,200         88,200
    -------------------------------------------------------------------------
                                                 $ 18,490,874   $ 18,978,195
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Partners' Equity
    Current liabilities:
      Accounts payable and accrued liabilities   $  1,511,026   $  2,160,026
      Distributions payable                           925,036        861,016
      Note payable                                    300,000        300,000
      Current portion of long-term debt             1,032,398      1,627,525
    -------------------------------------------------------------------------
                                                    3,768,460      4,948,567

    Long-term debt                                  4,515,890      4,420,689

    Future income taxes                               621,150        572,515
    -------------------------------------------------------------------------
                                                    8,905,500      9,941,771
    -------------------------------------------------------------------------

    Partners' equity:
      Limited Partnership units                     8,211,032      8,125,047
      Unit purchase loans receivable                 (487,877)      (530,740)
      Contributed surplus                             438,108        398,724
      Retained earnings                             1,424,111      1,043,393
    -------------------------------------------------------------------------
                                                    9,585,374      9,036,424
    -------------------------------------------------------------------------
                                                 $ 18,490,874   $ 18,978,195
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Statements of Operations
    (unaudited)
    -------------------------------------------------------------------------
                      Three Months  Three Months    Six months    Six months
                             ended         ended         ended         ended
                           June 30,      June 30,      June 30,      June 30,
                              2008          2007          2008          2007
    -------------------------------------------------------------------------

    Revenue:           $ 3,717,615   $ 3,146,455   $ 9,063,214   $ 7,464,813
    -------------------------------------------------------------------------

    Expenses:
      General and
       administrative      355,125       206,557       611,620       370,484
      Interest on long
       term debt            95,907        70,099       210,780       128,367
      Operating          2,079,534     1,628,919     4,241,605     3,671,710
      Unit based
       compensation         27,645        74,120        61,643       143,646
      Amortization of
       property
       and equipment       843,377       598,411     1,674,793     1,077,636

    -------------------------------------------------------------------------
                         3,401,588     2,578,106     6,800,441     5,391,843
    -------------------------------------------------------------------------

    Income before
     taxes                 316,027       568,349     2,262,773     2,072,970

    Future income taxes     40,205       568,532        48,635       568,532

    -------------------------------------------------------------------------
    Net income (loss)
     for the period    $   275,822   $      (183)  $ 2,214,138   $ 1,504,438
    -------------------------------------------------------------------------

    Retained earnings,
     beginning of
     period              2,067,094     1,887,490     1,043,393     1,387,807

    Partner
     distributions
     declared (note 10)   (918,805)     (814,692)   (1,833,420)   (1,819,630)

    -------------------------------------------------------------------------
    Retained earnings,
     end of period     $ 1,424,111   $ 1,072,615   $ 1,424,111   $ 1,072,615
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income per unit
     (note 13):
      Basic            $      0.05   $      0.00   $      0.40   $      0.29
      Diluted          $      0.05   $      0.00   $      0.37   $      0.28
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CERF LP is an Alberta limited partnership engaged in the rental, sale and
service of industrial and construction equipment. CERF LP trades on the TSX
Venture Exchange under the symbol "CFL.UN" and currently has 5,792,228 units
issued and outstanding."

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    

    %SEDAR: 00022335E




For further information:

For further information: Wayne Wadley, President and CEO, CERF GP Corp.,
general partner of CERF LP, Telephone: (403) 850-4095, E-mail:
wwadley@cerflp.com; Ken Stephens, CFO, CERF GP Corp., general partner of CERF
LP, Telephone: (403) 298-8695, Fax: (403) 269-3540, E-mail:
kstephens@cerflp.com

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CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

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