Canadian Equipment Rental Fund Limited Partnership Announces Second Quarter 2007 Results



    TSX Venture Symbol: CFL.UN

    CALGARY, Aug. 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 second quarter ended
June 30, 2007.

    
    Quarter Highlights Include:

    -   Revenues for the three months were $3,146,455 up $1,058,314 or 50%
        over the quarter ended June 30, 2006.

    -   Revenues for the six months ended June 30, 2007 were $7,464,813 up
        $3,063,455 or 70% over the $4,401,358 of revenues recorded for the
        same period in 2006.

    -   Income before income tax was $568,349 for the three months ended
        June 30, 2007 representing an increase of 71% compared with $331,698
        of income earned in the three months ended June 30, 2006.

    -   Income before tax for the six months ended June 30, 2007 was
        $2,072,970 which was more than double the $1,013,695 of income earned
        in the same six months of 2006.

    -   Income before tax of $2,072,970 for the first half year of 2007 was
        90% of the $2,291,121 of income earned in all of 2006.

    -   Basic income per unit before tax was $0.40 for the six months ended
        June 30, 2007 compared to $0.31 for the same six months of 2006, and
        $0.63 per unit earned in the year ended December 31, 2006.

    -   Distributions per unit were $0.345 for the first six months of 2007
        compared to $0.10 for the first six months of 2006 and $0.32 per unit
        for the entire year of 2006.

    -   Capital expenditures net of proceeds of disposals totaled $2,970,359
        compared to $1,859,271 for the same six months of 2006.

    -   To handle our increased activity and maintain our level of service to
        our customers, we increased our work force from 33 in June of 2006 to
        41 at the end of June 2007 with 95% retention of employees. All
        employees of the Partnership have limited partnership units or
        options to acquire units that will allow them to participate in the
        present and future success of the Partnership.
    

    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 quarter is historically the slowest quarter as the demand for winter
heating and lighting equipment diminishes and the wet weather experienced in
the spring generally slows construction and the demand for construction
related rental equipment.
    Edmonton and area continues to be in an economic boom despite a slow down
in predominantly natural gas drilling in other areas of the province. Driven
by strong energy prices and capital investment estimated to total $114 billion
in oil sands related construction and other sectors, Edmonton's diverse
economy is projected to experience annual GDP growth greater than 4% in the
next five years. These projects include 8 upgraders totaling $27.5 billion and
are estimated to require direct expenditures exceeding $100 billion during
their 30-50 year life span using 6.6 million person years to build and
maintain. Although oil and gas development is the main driving force behind
the economy, all sectors will benefit from this development. This is evident
is the ongoing and recent project announcements for new hospitals and health
centers, retail, commercial and residential real estate development, bridge
construction, utility upgrades and manufacturing of which many of our
customers are directly involved. Edmonton hits the news again by being
recently recognized as having the best economic potential of a large city in
North America by Foreign Investment News magazine.
    Equipment diversification is a key factor in our strategy in continuing
to meet customer demand in these various industries surrounding Edmonton and
area. Customers have indicated that they are looking for various equipment
solutions with leading edge technological advances to help manage their labor
challenges and costs. With an average fleet age of only 2.18 years, CERF
continues to respond by adding the latest aerial work, material handling and
concrete equipment and general tool inventory.
    Management continues to remain optimistic about customer activity levels
and corresponding Partnership operating results through 2007 and into 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 5,431,283 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)
    -------------------------------------------------------------------------
                                                       June 30,  December 31,
                                                          2007          2006
    -------------------------------------------------------------------------
    Assets

    Current assets:
      Cash                                        $    910,551  $          -
      Accounts receivable                            3,082,963     3,581,326
      Inventory and other                              723,491       452,601
    -------------------------------------------------------------------------
                                                     4,717,005     4,033,927

    Property and equipment                          10,927,136     9,054,413

    Prepaid rent                                        88,200        88,200

    -------------------------------------------------------------------------
                                                  $ 15,732,341  $ 13,176,540
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and Partners' Equity

    Current liabilities:
      Bank indebtedness                           $          -  $    150,059
      Accounts payable and accrued liabilities       2,030,737     1,629,045
      Partner distribution payable                     814,692       562,553
      Notes payable                                    300,000             -
      Current portion of long-term debt              1,158,412       763,584
    -------------------------------------------------------------------------
                                                     4,303,841     3,105,241

    Long-term debt                                   3,079,681     1,967,997

    Notes payable                                            -       300,000

    Future income taxes                                129,850             -
    -------------------------------------------------------------------------
                                                     7,513,372     5,373,238

    Partners' equity                                 7,930,456     7,587,433

    Contributed surplus                                288,513       215,869

    -------------------------------------------------------------------------
                                                  $ 15,732,341  $ 13,176,540
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Statements of Operations
    (unaudited)
    -------------------------------------------------------------------------
                      Three Months  Three Months    Six months    Six months
                             ended         ended         ended         ended
                           June 30,      June 30,      June 30,      June 30,
                              2007          2006          2007          2006
    -------------------------------------------------------------------------
    Revenue:          $  3,146,455  $  2,088,141  $  7,464,813  $  4,401,358
    -------------------------------------------------------------------------
    Expenses:
      Cost of sales        539,665       381,895     1,383,336       743,380
      General and
       administrative      206,557       148,171       370,484       270,807
      Interest on
       long term debt       70,099        54,402       128,367       104,754
      Operating          1,089,254       897,775     2,288,374     1,744,762
      Stock based
       compensation         74,120        25,243       143,646        43,331
      Amortization of
       property and
       equipment           598,411       248,957     1,077,636       480,629
    -------------------------------------------------------------------------
                         2,578,106     1,756,443     5,391,843     3,387,663
    -------------------------------------------------------------------------

    Income before taxes    568,349       331,698     2,072,970     1,013,695

    Future income taxes    129,850             -       129,850             -

    -------------------------------------------------------------------------
    Net income for
     the period       $    438,499  $    331,698  $  1,943,120  $  1,013,695
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income
     per unit:
      Basic           $       0.08  $       0.10  $       0.38  $       0.31
      Diluted         $       0.08  $       0.10  $       0.37  $       0.31
    

    %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

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CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

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