Canadian Equipment Rental Fund Limited Partnership Results for the First
Quarter 2010

TSX Venture Symbol: CFL.UN

CALGARY, May 28 /CNW/ - Mr. Wayne Wadley, president of CERF GP Corp., the general partner of Canadian Equipment Rental Fund Limited Partnership ("CERF" or the "Partnership"), is pleased to announce the results for the three months ended March 31, 2010.

Full details of the Partnership's results, in the form of the unaudited financial statements for the three months ended March 31, 2010 and Management's Discussion and Analysis of the results dated May 27, 2010 are available on SEDAR at www.sedar.com and on the Partnership's website www.cerflp.com.

Highlights of the quarter ended March 31, 2010 were:

    
    - Revenue for the quarter was $3,867,080.

    - Net income per unit of $0.08 basic.

    - EBITDAC for the quarter was $1,511,645

    - EBIDAC per unit of $0.26 basic.

    - Distributions of $0.06 per unit were declared for the quarter.
    

FORWARD LOOKING STATEMENTS

This press release contains forward looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances, cash flows or the ability to pay distributions to be materially different from the results, performances, cash flow or the ability to pay distributions expressed or implied by such forward looking statements.

Mr. Wadley makes the following statements:

"Early indications of an economic recovery cause us to believe that 2010 will be a better year for the Partnership. According to the Edmonton Construction Association, there were 33% more posted projects between January and March 2010 as compared to the same period in 2009. We have seen a 12% increase in rental revenues for the quarter ended March 2010 compared to the quarter ended December 2009. Contractors are optimistic about the year ahead with further recovery anticipated towards the last quarter of 2010 and continuing into 2011. There is more activity in housing construction as the builders have sold most of their inventory and the threat of rising interest rates is motivating buyers. Our refractory customers are experiencing increased work levels as they are busy with scheduled plant turn around projects. Certain oilfield service clients are also seeing renewed demand for their services. Indications from commercial contractors are that bidding has increased and that the projects they are bidding on are more substantial than in 2009. Federal Government infrastructure spending is starting to take hold as the lag time for permitting and approvals have now passed and projects can advance to the building phase.

Finally the waste disposal and recycling business we acquired in October 2009 is showing great promise. At present we are experiencing high demand for our recycling and disposal services."

CERF is an Alberta limited partnership engaged in the rental, sale and service of industrial and construction equipment. CERF trades on the TSX Venture Exchange under the symbol "CFL.UN" and currently has 6,096,450 units issued and outstanding.

    

    CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

    Consolidated Balance Sheets - unaudited
    -------------------------------------------------------------------------
                                                    March 31,    December 31,
                                                      2010           2009
    -------------------------------------------------------------------------

    Assets

    Current assets:
      Cash                                        $     35,521  $     42,502
      Accounts receivable                            3,236,708     2,370,047
      Inventory and other                              960,728       764,249
      Prepaid expense                                  169,391       215,506
    -------------------------------------------------------------------------
                                                     4,402,348     3,392,304

    Property and equipment                          18,400,471    17,995,205
    Goodwill                                           203,477       203,477
    Financial derivatives                               32,783        19,697
    -------------------------------------------------------------------------
                                                  $ 23,039,079  $ 21,610,683
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Partners' Equity

    Current liabilities:
      Bank indebtedness                           $    835,846  $    317,193
      Accounts payable and accrued
       liabilities                                   1,774,702     1,053,376
      Distributions payable                            365,787       365,334
      Note payable                                     300,000       300,000
      Current portion of long-term debt              1,833,892     1,681,313
      Current portion of capital lease
       obligation                                       98,294        95,646
    -------------------------------------------------------------------------
                                                     5,208,521     3,812,862

    Long-term debt                                   5,198,651     5,296,964
    Obligation under capital lease                   4,405,170     4,430,759
    Future income taxes                                345,405       301,340
    -------------------------------------------------------------------------
                                                    15,157,747    13,841,925
    -------------------------------------------------------------------------

    Partners' equity:
      Limited partnership units                      9,082,330     9,068,408
      Unit purchase loans receivable                  (438,659)     (438,659)
      Contributed surplus                              471,593       470,613
      Deficit                                       (1,233,932)   (1,331,604)
    -------------------------------------------------------------------------
                                                     7,881,332     7,768,758
    -------------------------------------------------------------------------
                                                  $ 23,039,079  $ 21,610,683
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

    Statements of Consolidated Operations
    - unaudited
    -------------------------------------------------------------------------
                                                  Three months  Three months
                                                      ended         ended
                                                    March 31,     March 31,
                                                       2010          2009
    -------------------------------------------------------------------------

    Revenues                                      $  3,867,080  $  4,171,986

    Expenses:
      General and administrative                       299,450       322,551
      Interest on long term debt                       199,953        75,859
      Operating                                      2,076,836     2,015,633
      Amortization of property and equipment           797,606       829,980
      (Gain) on financial derivatives                  (13,086)            -
    -------------------------------------------------------------------------
                                                     3,360,759     3,244,023
    -------------------------------------------------------------------------

    Income before income taxes                         506,321       927,963

    Future income taxes                                 44,065        33,374

    -------------------------------------------------------------------------

    Net income and comprehensive income for
     the period                                        462,256       894,589

    (Deficit) retained earnings, beginning
     of period                                      (1,331,604)      700,466

    Partner distributions declared                    (364,584)     (693,296)

    -------------------------------------------------------------------------
    (Deficit) retained earnings, end of
     period                                       $ (1,233,932) $    901,759
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Net income per unit
      Basic                                       $       0.08  $       0.16
      Diluted                                     $       0.08  $       0.15
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    

Full financial statements and notes thereto as well as management discussion and analysis are available on the SEDAR website at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

%SEDAR: 00022335E

SOURCE CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

For further information: For further information: contact Wayne Wadley, President & CEO at (403) 850-4095 or by email at wwadley@cerflp.com; or Ken Stephens, CFO at (403) 298-8695 or by email at kstephens@cerflp.com

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CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

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