TSX Venture Symbol: CFL
CALGARY, June 1, 2012 /CNW/ - Mr. Wayne Wadley, President of CERF Incorporated (the "Company" or "CERF Inc."), (formerly Canadian Equipment Rental Fund Limited Partnership ("CERF LP" or the "Partnership"), is pleased to announce the results for the three months ended March 31, 2012.
Full details of the Company's results, in the form of the unaudited condensed consolidated interim financial statements and notes thereto for the three months ended March 31, 2012 and Management's Discussion and Analysis of the results dated May 31, 2012 are available on SEDAR at www.sedar.com and on the Company's website at www.cerfcorp.com.
Highlights of the three months ended March 31, 2012 were:
- Revenues increased 42% to $7,209,626 for the three months ended March 31, 2012 from $5,071,159 for the three months ended March 31, 2011
- Acquisition of Maplethorpe Contractors Ltd. ("MCL"), a private integrated waste management company, was completed on April 29, 2011. MCL has contributed sales revenues of $2,050,123 and EBITDA of $218,984 to the consolidated results for the quarter.
- The Company paid dividends of $0.06 per share to the shareholders in the first quarter of 2012.
- On April 20, 2012 the Company acquired the assets and business of The Bin Company Inc. (the "Bin Company"). The Bin Company's business involves bin rentals, waste collection and disposal and will provide many synergies with our subsidiary The Smart Way Disposal and Recycling Company Ltd.
Mr. Wadley makes the following statements:
"Construction activity has increased in our operating area with the frost leaving the ground in late April and early May. Rental equipment has been in greater demand as has the demand for new equipment sales.
We often speak of our commitment to customer service and of always trying to exceed our customers' expectations. These commitments paid off when 4-Way was notified that it won the Consumer Choice award in the category of equipment rentals for 2012 for the greater city of Edmonton. Seventeen hundred consumers and businesses were contacted by an independent firm and they placed 4-Way as their first choice for rental products and services.
Smart-Way's activity has increased both on the roll-off bin side as well as more demand for our EZ Bag® and BinBag™ products for the retail consumer and home builder markets in both Edmonton and Calgary. The Bin Company, our recent acquisition, also won a Consumer Choice award in the category of waste management for 2012 for the greater city of Edmonton. This represents the seventh consecutive year that The Bin Company was won this award and highlights their similar commitment to service within their market segment.
MCL's operations remained consistent through Q1 as this time frame represents a slower period for this division. Again, with soil remediation projects and overall general construction activity picking up as summer approaches, MCL is expected to return to its normally busy summer and fall periods. Several internal construction projects on facilities that MCL currently manages will take place this summer with MCL taking the lead on doing that work.
Alberta's economy remains robust as infrastructure projects, housing and commercial construction, oil and gas development all seem to be ramping up from the winter season. This trend is expected to continue into at least next year and we believe that our companies are well positioned to take advantage of that demand."
CERF Inc. is engaged in the rental, sale and service of industrial and construction equipment and provides waste management and environmental services. CERF Inc. which trades on the TSX Venture Exchange under the symbol "CFL" and currently has 9,665,256 shares issued and outstanding.
Certain information contained herein relating to, but not limited to, CERF Inc. and its predecessor CERF LP and its businesses, and the statements of Mr. Wadley, constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that CERF Inc. expects or anticipates may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "may", "estimate", "anticipate", "believe", "expect", 'plan", "intend", "target", "project", 'forecast" or similar words suggesting future outcomes or outlook. Forward-looking statements in this news release include, but are not limited to, statements with respect to the future economic wellbeing of Western Canada and by implication of CERF Inc.
Although CERF Inc. believes that the expectations conveyed by the forward-looking information are reasonable based on information available on the date of preparation, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the information contained herein, as actual results achieved will vary from the information provided herein and the variations may be material. CERF Inc. makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof and CERF Inc. does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
|Summarized financial results for the three months ended March 31, 2012 follow:|
|Condensed Consolidated Interim Statements of Financial Position|
|Unaudited; In Canadian dollars|
|March 31, 2012||December 31, 2011|
|Prepaid expenses and deposits||357,333||216,326|
|Property and equipment||22,173,345||22,269,785|
|Intangibles and goodwill||3,487,878||3,599,104|
|Liabilities and Shareholders' Equity|
|Accounts payable and accrued liabilities||2,555,321||3,755,003|
|Income taxes payable||97,286||65,463|
|Current portion of long-term debt||3,283,162||4,151,093|
|Current portion of finance leases||593,750||593,750|
|Obligation under finance leases||4,725,689||4,874,181|
|Deferred income taxes||564,266||623,822|
|Share purchase loans receivable||(309,532)||(309,532)|
|Total liabilities and shareholders' equity||36,555,883||37,871,275|
|Condensed Consolidated Interim Statements of Comprehensive Income|
|Unaudited; In Canadian dollars|
| Three months ended
|Sales of equipment, fuel and parts||1,238,742||1,434,675|
|Service and other||282,129||301,641|
|Direct operating costs||4,002,743||1,823,242|
|Depreciation of equipment||930,974||664,990|
|Cost of sales of equipment, fuel and parts||924,899||1,135,747|
|General and administrative||658,687||380,340|
|Depreciation of other property and equipment||91,454||90,496|
|Amortization of intangible assets||111,226||—|
|Business acquisition expenses||7,016||89,070|
|Income before income taxes||231,680||688,495|
|Income taxes (recovery)|
|Net income and comprehensive income|
|for the period||154,935||491,116|
|Net income per share|
|Basic||$ 0.01||$ 0.06|
|Diluted||$ 0.01||$ 0.06|
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.
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