Symbol: CVL (TSX)
CALGARY, May 9, 2012 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced its financial results and operational highlights for the quarter ended March 31, 2012.
"Cervus experienced increased revenue during the first quarter of this year compared to the same period last year, largely driven by higher sales of industrial and agricultural equipment as a result of greater consumer confidence and higher commodity prices when compared to last year," said Graham Drake, President and CEO of Cervus. "We believe these trends will continue well into 2012, and, along with healthy indicators of expansion in the oil and gas industry, expect healthy unit sales in both of our operating segments this year."
Highlights for the Quarter:
- On March 15, 2012, completed the acquisition of Frontier Peterbilt Sales Ltd. and Frontier Collision Center Ltd. (collectively "Frontier") which included four Peterbilt dealerships and one collision center dealership in Saskatchewan, including related land and building for a purchase price of $35.0 million
- Revenue increased by $25.5 million (same store $22.1 million) to $109.8 million from $84.3 million in the first quarter of 2011
- Profit for the period was $1.4 million, an increase of $1.6 million over the first quarter 2011 loss of $155 thousand
- Net income per share was $0.08 compared to a net loss per share of $0.01 in the first quarter of 2011
- Net cash from operating activities increased by $15.6 million to $15.8 million from $185 thousand in the first quarter of 2011
During the first quarter of 2012, revenue grew by $25.5 million or 30.3% to $109.8 million when compared to the same period of 2011. Same store sales increased by $22.1 million or 26%. Both operating segments reported increases in revenues with the agricultural equipment segment increasing by 29.7% and the commercial and industrial equipment segment increasing by 31.4% (26% on a same store basis).
For the quarter ended March 31, 2012, overall gross margin decreased slightly to 21.0% from 21.5% reported in the same period of 2011.
The increase in sales, combined with the marginal change in overall gross profit margins resulted in an increase in profit for the three month period ended March 31, 2012 when compared to 2011. Profit for the period increased by $1.6 million to $1.4 million from a loss of $155 thousand in 2011. Selling, general and administrative expenditures decreased to 17.9% of total revenue for the three month period ended March 31, 2012 compared to 20.3% for the same period in 2011.
EBITDA increased by $3.2 million to $5.3 million, or $0.35 per fully diluted share, in the first quarter of 2012 compared with $0.15 per fully diluted share for the same period in 2011. The most significant factor contributing to the increase in EBITDA for the quarter was the increase in net profit before income taxes which amounted to $2.4 million.
As at March 31, 2012, Cervus had working capital of $55.4 million, including $6.3 million in cash and cash equivalents, down $23.7 million compared to $79.1 million at December 31, 2011.
|Selected Quarterly Information|
|$ thousands, except per share amounts||March 31, 2012||March 31, 2011||% change|
|Profit (loss) for the period||1,397||(155)||n/a|
|Per share - Basic and diluted||0.08||(0.01)||-|
|Net cash provided by (used in) operating activities||15,818||185||8450.3|
|Per share - Basic||1.07||0.01||n/a|
|Per share - basic||0.36||0.15||140.0|
|Dividends declared to common shareholders||2,686||2,557||5.0|
|Weighted average shares outstanding|
|Actual common shares outstanding||14,717||14,204||3.6|
|Closing market price per share||18.75||16.15||16.1|
|Net book value per share - diluted||12.01||11.68||2.8|
Notes: (1) These financial measures are identified and defined under the section "Non-IFRS Financial Measures".
Conference Call Information
Cervus will host its first quarter 2012 results conference call on May 10, 2012 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, May 17, 2012 at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 77436705 followed by the number sign.
About Cervus Equipment Corporation
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships in Western Canada through 42 dealership locations in Alberta, Saskatchewan and
Manitoba. Cervus holds an approximate 60% equity interest in Agriturf Limited, a New Zealand-based
corporation that offers authorized John Deere equipment, parts and service in the Manawatu, Rotorua, Hawke's Bay and Taranaki regions. 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".
For further information:
Graham Drake - President & CEO
Telephone: (403) 567-2095
Fax: (403) 567-0309
Randy Muth - Chief Financial Officer
Telephone: (403) 567-2097
Fax: (403) 567-0392