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Last updated on April 19, 2014 at 18:42 EDT

CERF INCORPORATED Announces Results for the First Quarter of 2012

June 1, 2012

TSX Venture Symbol: CFL

CALGARY, June 1, 2012 /PRNewswire/ – 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(TM) 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.

Forward-Looking Statements

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:

    CERF INCORPORATED

    Condensed Consolidated Interim Statements of Financial Position

    Unaudited; In Canadian dollars

                                         March 31, 2012 December 31, 2011

    Assets                                                               

    Current assets                                                       

      Cash                                    3,313,979         4,370,989

      Accounts receivable                     5,453,970         5,900,994

      Inventory                               1,154,920           848,403

      Prepaid expenses and deposits             357,333           216,326

                                             10,280,202        11,336,712

    Non-current assets                                                   

      Loan receivable                           614,458           665,674

      Property and equipment                 22,173,345        22,269,785

      Intangibles and goodwill                3,487,878         3,599,104

                                             26,275,681        26,534,563

    Total assets                             36,555,883        37,871,275

    Liabilities and Shareholders' Equity                                 

    Current liabilities:                                                 

      Bank indebtedness                       1,687,956         1,164,707

      Accounts payable and accrued            2,555,321         3,755,003
      liabilities

      Dividends payable                         579,915           579,915

      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

                                              8,797,390        10,309,931

    Non-current liabilities:                                             

      Long-term debt                          7,979,737         7,151,519

      Obligation under finance leases         4,725,689         4,874,181

      Deferred income taxes                     564,266           623,822

                                             13,269,692        12,649,522

    Shareholders' equity                                                 

      Share capital                          17,701,144        17,701,144

      Share purchase loans receivable         (309,532)         (309,532)

      Contributed surplus                       383,794           382,615

      Deficit                               (3,286,605)       (2,862,405)

                                             14,488,801        14,911,822

    Total liabilities and shareholders'      36,555,883        37,871,275
    equity


    CERF INCORPORATED

    Condensed Consolidated Interim Statements of Comprehensive Income

    Unaudited; In Canadian dollars

                                                     Three months ended
                                                          March31

                                                         2012       2011

    Revenues                                                            

      Equipment rental                              3,177,039  3,088,564

      Waste management                              2,511,716    246,279

      Sales of equipment, fuel and parts            1,238,742  1,434,675

      Service and other                               282,129    301,641

                                                    7,209,626  5,071,159

    Direct expenses                                                     

      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

                                                    5,858,616  3,623,979

      Gross margin                                  1,351,010  1,447,180

    Operating expenses                                                  

      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

                                                      868,383    559,906

    Other expenses                                                      

      Finance costs                                   250,947    198,779

    Income before income taxes                        231,680    688,495

    Income taxes (recovery)                                             

      Current                                         136,301    --

      Deferred                                       (59,556)    197,379

                                                       76,745    197,379

    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.
 

SOURCE CERF Inc.


Source: PR Newswire