Cervus Equipment Corp. announces third quarter 2013 results

Symbol: CVL (TSX)

CALGARY, Nov. 13, 2013 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced its financial results and operational highlights for the quarter ended September 30, 2013.

"Record harvests in Western Canada contributed to a consecutive quarter of record overall revenue," said Graham Drake, President and CEO of Cervus. "The bumper crop is a positive indicator of farm incomes for the 2013 crop year, while the steady growth we are seeing in our Commercial and Industrial segment indicates a more positive outlook into the fourth quarter."

Highlights for the Quarter:

  • Revenue for the three months ended September 30, 2013 increased by $26.8 million to $260.8 million, compared to $234.0 million for the three months ended September 30, 2012.
  • Same store revenue for the three month period ended September 30, 2013 increased $12.0 million to $246.0 million compared to total same store revenue of $234.0 million for the three months ended September 30, 2012.
  • Net profit available to shareholders for the three months ended September 30, 2013 was $8.6 million, consistent with the three months ended September 30, 2012.

Financial Highlights:

During the three month period ended September 30, 2013, revenue grew by $26.8 million or 11.5% to $260.8 million compared to the same period in 2012. This increase is attributable to a revenue increase in the agricultural equipment segment of 8.9% (increase of 0.1% on a same store basis) and an 18.4% increase in revenues in the commercial and industrial equipment segment.

Profit for the three month period ended September 30, 2013 remained consistent at $8.6 million, primarily due to increased equipment sales volume offset by margin pressure on equipment, increased amortization on trade name intangibles, and increased commission expense on higher unit sales.  Selling, general and administrative expenditures increased to 13.5% of total revenue for the three month period ended September 30, 2013, compared to 12.7% for the same period in 2012.

As at September 30, 2013, Cervus had working capital of $113.8 million, up $26.6 million when compared to $87.1 million at December 31, 2012.

Selected Quarterly Information

                                       
(in $ thousands, except per share amounts)       Three
Months
Ended
September
30, 2013
    Three
Months
Ended
September
30, 2012
    % change     Nine
Months
Ended
September
30, 2013
    Nine
Months
Ended
September
30, 2012
    % change
Revenues       260,796     233,997     11.5%     661,945     538,465     22.9%
Gross profit       47,445     41,990     13.0%     120,122     101,599     18.2%
Gross margin       18.2%     17.9%     1.4%     18.1%     18.9%     -3.8%
Net profit       8,741     8,606     1.6%     16,954     16,722     1.4%
Net profit attributable to shareholders       8,646     8,606     0.5%     16,841     16,534     1.9%
  Per share  - Basic       0.58     0.58     -0.6%               1.13               1.12     0.5%
  Per share - Diluted       0.55     0.56     -1.0%               1.08               1.08     0.1%
Cash provided by operating activities       20,046     2,936     582.8%     18,252     20,467     -10.8%
  Per share - Basic       1.34     0.20     575.3%     1.22     1.39     -12.0%
EBITDA[1]       17,337     16,984     2.1%     38,879     35,316     10.1%
EBITDA margin 1       6.6%     7.3%     -8.4%     5.9%     6.6%     -10.4%
  Per share - basic                 1.16     1.15     1.0%               2.60               2.39     8.6%
Dividends declared to shareholders       2,961     2,780     6.5%     8,756     8,200     6.8%
  Per share                 0.20     0.19     6.7%               0.59               0.56     5.4%
Weighted average shares outstanding                                      
  Basic       14,989     14,825     1.1%     14,955     14,756     1.3%
  Diluted             15,650     15,416     1.5%           15,615     15,344     1.8%
Actual shares outstanding                         14,994     14,880     0.8%
Closing market price per share                                 20.79             19.60            6.1%
Total assets                         455,311     418,863     8.7%
Long-term liabilities                         79,493     75,366     5.5%
Total liabilities                         240,601     222,477     8.1%
Shareholders' equity                         211,192     196,086     7.7%
Net book value per share - diluted                         13.52     12.78     5.8%
Notes:  (1) These financial measures are identified and defined under the section "Non-IFRS Financial Measures".

Conference Call Information

Cervus will host its third quarter 2013 results conference call on Thursday, November 14, 2013 at 10:00 a.m. Eastern Time. Interested parties may access the conference call by dialling (888) 231-8191 (domestic) or (647) 427-7450 (international). The conference call will be archived for replay until Thursday, November 21, 2013 at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 90504938 followed by the number sign.

About Cervus Equipment Corporation

Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 55 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, Nissan 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".  

SOURCE: Cervus Equipment Corporation

For further information:

Graham Drake - President & CEO
Telephone: (403) 567-2095
Fax: (403) 567-0392
Email: gdrake@cervusequipment.com

Randy Muth - Chief Financial Officer
Telephone: (403) 567-2097
Fax: (403) 567-0392
Email: rmuth@cervusequipment.com


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