CERF INCORPORATED Announces Results for the First Quarter of 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.
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.