Canadian Equipment Rental Fund Limited Partnership Results for the Second
Quarter 2010
TSX Venture Symbol: CFL.UN
CALGARY, Aug. 27 /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 and six months ended June 30, 2010.
Full details of the Partnership's results, in the form of the unaudited financial statements for the three and six months ended June 30, 2010 and Management's Discussion and Analysis of the results dated August 25, 2010 are available on SEDAR at www.sedar.com and on the Partnership's website www.cerflp.com.
Highlights of the six months ended June 30, 2010 were:
- Revenue for the six months was $6,738,004.
- Net loss per unit of $0.02 basic.
- EBITDA for the period was $2,168,763
- EBITDA per unit of $0.37 basic.
- Distributions of $0.12 per unit were declared for the six months.
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:
"We are still seeing indications of an economic recovery that cause us to believe that 2010 will be a better year for the Partnership. The second quarter of 2010 was hampered by a warm and wet spring which reduced the demand for winter equipment and put many construction projects on hold as it was too wet to continue. Also some projects were put on hold due to the tightening of credit caused by the fear of a worsening economy related to the crisis in Europe. With those events behind us we are looking to the last half of the year with optimism.
The waste disposal and recycling business we acquired in October 2009 is continuing to grow. We are experiencing higher demand for our recycling and disposal services as we continue to roll out innovative new products and services. Our 4-Way customers have embraced this additional product line as they are seeking more single source solutions for their construction needs. We look forward to continuing to expand in this sector."
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
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June 30, December 31,
2010 2009
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Assets
Current assets:
Cash $ 76,632 $ 42,502
Accounts receivable 2,337,291 2,370,047
Inventory and other 1,324,357 764,249
Prepaid expense 265,832 215,506
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4,004,112 3,392,304
Property and equipment 16,572,369 17,995,205
Goodwill 203,477 203,477
Financial derivatives 109 19,697
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$ 20,780,067 $ 21,610,683
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Liabilities and Partners' Equity
Current liabilities:
Bank indebtedness $ 329,322 $ 317,193
Accounts payable and accrued liabilities 1,374,206 1,053,376
Distributions payable 365,787 365,334
Note payable 300,000 300,000
Current portion of long-term debt 1,817,576 1,681,313
Current portion of capital lease obligation 100,099 95,646
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4,286,990 3,812,862
Long-term debt 4,824,302 5,296,964
Obligation under capital lease 4,379,788 4,430,759
Future income taxes 301,290 301,340
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13,792,370 13,841,925
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Partners' equity:
Limited partnership units 9,082,330 9,068,408
Unit purchase loans receivable (374,535) (438,659)
Contributed surplus 475,618 470,613
Deficit (2,195,716) (1,331,604)
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6,987,697 7,768,758
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$ 20,780,067 $ 21,610,683
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CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP
Consolidated Statements of Operations - unaudited
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Three Months Three Months Six months Six months
ended ended ended ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
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Revenue: $ 2,870,924 $ 2,955,470 $ 6,738,004 $ 7,127,456
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Expenses:
General and
administrative 445,485 308,361 744,935 623,809
Interest on
long term debt 195,835 87,372 395,788 163,231
Operating 1,836,654 1,784,687 3,913,490 3,807,423
Amortization
of property
and equipment 754,144 824,581 1,587,580 1,638,721
Loss on disposal
of property
and equipment 245,908 11,144 210,078 26,984
Loss (gain) on
derivatives 33,680 (21,724) 20,594 (21,724)
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3,511,706 2,994,421 6,872,465 6,238,444
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(Loss) income
before taxes (640,782) (38,951) (134,461) 889,012
Future income
taxes (recovery) (44,115) (68,511) (50) (35,137)
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Net and
comprehensive
(loss) income $ (596,667) $ 29,560 $ (134,411) $ 924,149
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(Deficit)
retained earnings,
beginning of
period (1,233,932) 901,759 (1,331,604) 700,466
Partner
distributions
declared (365,117) (695,644) (729,701) (1,388,940)
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(Deficit)
retained
earnings, end
of period $ (2,195,716) $ 235,675 $ (2,195,716) $ 235,675
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Net (loss)
income per unit:
Basic $ (0.10) $ 0.00 $ (0.02) $ 0.16
Diluted $ (0.10) $ 0.00 $ (0.02) $ 0.16
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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
For further information: Wayne Wadley, President & CEO at (403) 850-4095 or by email at [email protected]; or Ken Stephens, CFO at (403) 298-8695 or by email at [email protected]
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