Canadian Equipment Rental Fund Limited Partnership Announces Third Quarter 2007 Results



    TSX Venture Symbol: CFL.UN

    CALGARY, Nov. 28 /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 third quarter ended
September 30, 2007.

    
    Highlights of the three month period ended September 30, 2007 were:

    -   Revenue for the quarter amounted to $2,799,138 representing an
        increase of 12% over the same quarter in 2006. This is a direct
        result of the continued strong demand for rental equipment in the
        Edmonton area and our increased rental equipment available to supply
        that demand.

    -   Operating margin increased to 48% from 42% in 2006. This reflects the
        economies of scale we are experiencing from our increased sales
        volumes and rental fleet.

    -   Distributions of $0.15 per unit were declared for the quarter
        bringing total distributions for the year to $0.43 not including the
        special distribution of $0.065 made in the first quarter of the year
        that related to 2006 performance.

    -   The Partnerships working capital ratio at September 30, 2007 was
        1:1 and its debt to Partner's equity was 0.78:1 reflecting
        management's commitment to maintain a conservative debt level and
        solid balance sheet.

    Highlights of the nine month period ended September 30, 2007 were:

    -   Revenues for the nine months were $10,263,951 representing an
        increase of 49% over the 2006 nine month revenues of $6,900,474.

    -   Operating margin increased to 50% from 43% achieved in the same nine
        months of 2006.

    -   Income before tax increased to $2,502,306 or $0.48 per unit - basic,
        compared to $1,500,729 or $0.46 per basic unit in 2006.
    

    Mr. Wadley comments, "The Partnership continues to make significant gains
when compared to the same period of the prior year. This comes even though the
second and third quarters are historically the slowest quarters as the demand
for winter heating and lighting equipment diminishes.
    Equipment diversification is a key factor in our strategy in continuing
to meet customer demand. CERF continues to respond by adding equipment that is
in demand to our rental fleet. Almost all equipment is priced in U.S. dollars
and the high Canadian dollar has increased our purchasing power greatly.
Management is looking forward to a strong fourth quarter and a record 2008.

    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 5,440,033 units
issued and outstanding."

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

    
    Canadian Equipment Rental Fund Limited Partnership
    Operating as 4-Way Equipment Rentals

    Balance Sheets
    (unaudited)
    -------------------------------------------------------------------------
                                                  September 30,  December 31,
                                                          2007          2006
    -------------------------------------------------------------------------

    Assets
    Current assets:
      Cash                                        $    726,350  $          -
      Accounts receivable                            3,138,538     3,581,326
      Inventory and other                              520,671       452,601
    -------------------------------------------------------------------------
                                                     4,385,559     4,033,927

    Property and equipment                          11,923,902     9,054,413

    Prepaid rent                                        88,200        88,200

    -------------------------------------------------------------------------
                                                  $ 16,397,661  $ 13,176,540
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Partners' Equity

    Current liabilities:
      Bank indebtedness                           $          -  $    150,059
      Accounts payable and accrued liabilities       1,750,248     1,629,045
      Partner distributions payable                    815,505       562,553
      Notes payable                                    300,000             -
      Current portion of long-term debt              1,500,312       763,584
    -------------------------------------------------------------------------
                                                     4,366,065     3,105,241

    Long-term debt                                   3,991,874     1,967,997

    Notes payable                                            -       300,000

    Future income taxes                                595,485             -
    -------------------------------------------------------------------------
                                                     8,953,424     5,373,238
    -------------------------------------------------------------------------

    Partners' equity:
      Limited Partnership units                      6,955,668     6,199,626
      Unit purchase loans receivable                  (530,740)            -
      Contributed surplus                              352,037       215,869
      Retained earnings                                667,272     1,387,807
    -------------------------------------------------------------------------
                                                     7,444,237     7,803,302
    -------------------------------------------------------------------------

                                                  $ 16,397,661  $ 13,176,540
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Statements of Operations
    (unaudited)
    -------------------------------------------------------------------------
                      Three Months  Three Months   Nine months   Nine months
                             ended         ended         ended         ended
                      September 30, September 30, September 30, September 30,
                              2007          2006          2007          2006
    -------------------------------------------------------------------------
    Revenue           $  2,799,138  $  2,499,116  $ 10,263,951  $  6,900,474
    -------------------------------------------------------------------------

    Expenses:
      General and
       administrative      170,413       122,347       540,897       393,155
      Interest on long
       term debt            87,989        66,487       216,355       171,241
      Operating          1,465,064     1,449,011     5,136,774     3,937,152
      Stock based
       compensation         63,697        36,173       207,343        79,505
      Amortization of
       property and
       equipment           582,639       338,064     1,660,276       818,692
    -------------------------------------------------------------------------
                         2,369,802     2,012,082     7,761,645     5,399,745
    -------------------------------------------------------------------------

    Income before taxes    429,336       487,034     2,502,306     1,500,729

    Future income taxes     26,953             -       595,485             -
    -------------------------------------------------------------------------
    Net income for the
     period                402,383       487,034     1,906,821     1,500,729

    Other comprehensive
     income                      -             -             -             -
    -------------------------------------------------------------------------

    Comprehensive net
     income for the
     period                402,383       487,034     1,906,821     1,500,729
    Retained earnings,
     beginning of
     period              1,072,615     1,175,752     1,387,807       487,314
    Partner
     distributions
     declared             (807,726)     (361,684)   (2,627,356)     (686,941)

    -------------------------------------------------------------------------
    Retained earnings,
     end of period    $    667,272  $  1,301,102  $    667,272  $  1,301,102
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income per
     unit:
      Basic           $       0.08  $       0.15  $       0.37  $       0.46
      Diluted         $       0.07  $       0.15  $       0.35  $       0.45
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %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, Fax: (403) 261-3834,
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

Organization Profile

CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890