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Canadian Equipment Rental Fund Limited Partnership Results for the Third Quarter 2010

November 26, 2010

TSX Venture Symbol: CFL.UN

CALGARY, Nov. 26 /PRNewswire-FirstCall/ – 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 nine months ended September 30, 2010.

Full details of the Partnership’s results, in the form of the unaudited
financial statements for the three and nine months ended September 30,
2010
and Management’s Discussion and Analysis of the results dated
November 25, 2010 are available on SEDAR at www.sedar.com and on the Partnership’s website www.cerflp.com.

Highlights of the nine months ended September 30, 2010 were:

  • Revenue for the three months ended September 30, 2010 was $3,275,339 up
    28% over the three months ended September 30, 2009.

  • Revenue for the nine months was $10,013,343 up 2.5% over the nine months
    ended September 30, 2009.

  • Net loss per unit of $0.05 basic.

  • EBITDA for the nine month period was $3,139,869

  • EBITDA per unit of $0.53 basic.

  • Distributions of $0.18 per unit were declared for the nine 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:

“The third quarter of 2010 has seen a 28% increase in revenues compared
to the third quarter of 2009. Revenues for the nine months ended
September 30, 2010 have increased 2.5% over the nine months ended
September 2009. This has been driven by increasing demand for our
products and services relating to the improving economy in the sectors
we service.

The first half 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 have seen a significant increase in revenues for the third
quarter which is continuing into the fourth quarter of 2010. We feel
that this trend will continue into and throughout 2011.”

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
6,116,450 units issued and outstanding.

CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

Consolidated Balance Sheets – unaudited            
    September 30,       December 31,
    2010       2009
             
Assets            
Current assets:            
  Cash  $ 28,788     $ 42,502
  Accounts receivable       2,736,228       2,370,047
  Inventory     1,134,194       764,249
  Prepaid expense     313,266       215,506
    4,212,476       3,392,304
             
Property and equipment       15,613,170       17,995,205
Goodwill      203,477       203,477
Financial derivatives     –        19,697
  $ 20,029,123     $ 21,610,683
             
Liabilities and Partners’ Equity            
Current liabilities:            
  Bank indebtedness   $ 255,378     $ 317,193
  Accounts payable and accrued liabilities        1,606,682       1,053,376
  Distributions payable     365,787       365,334
  Note payable      300,000       300,000
  Current portion of long-term debt      1,718,135       1,681,313
  Current portion of capital lease obligation      103,811        95,646
    4,349,793       3,812,862
             
Long-term debt      4,540,802       5,296,964
Obligation under capital lease      4,351,847       4,430,759
Financial derivatives     17,041        –
Future income taxes      302,554       301,340
    13,562,037       13,841,925
Partners’ equity:            
  Limited partnership units   9,082,330       9,068,408
  Unit purchase loans receivable    (374,535)        (438,659)
  Contributed surplus     478,048       470,613
  Deficit     (2,718,757)       (1,331,604)
    6,467,086       7,768,758
  $ 20,029,123     $ 21,610,683

             

CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

Consolidated Statements of Operations – unaudited                            
    Three Months       Three Months       Nine months        Nine months
    ended       ended       ended         ended
    September 30,       September 30,       September 30,       September 30,
    2010       2009       2010       2009
                             
Revenue:   $ 3,275,339     $ 2,544,596     $ 10,013,343     $ 9,763,440
                               
Expenses:                            
  General and administrative    399,836       301,872       1,144,771       925,681
  Interest on long term debt    197,985       63,276       593,773       226,507
  Operating     1,934,064       1,630,797       5,847,554       5,529,608
Amortization of property and equipment 723,758

    827,909

    2,311,338

    2,466,630

  Loss on disposal of property and equipment   160,486       12,696       370,564       39,680
  Loss (gain) on derivatives     16,144       10,418       36,738       (11,306)
    3,432,273       2,846,968       10,304,738       9,176,800
                               
(Loss) income before taxes    (156,934)       (302,372)        (291,395)       586,640
                               
Future income taxes (recovery)    1,264       153,974       1,214       118,837
                               
Net (loss) income   $ (158,198)     $ (456,346)     $  (292,609)     $  467,803
(Deficit) retained earnings, beginning of period

 

(2,195,716)

   

235,675

   

(1,331,604)

   

700,466

                               
Partner distributions declared     (364,843)       (699,978)       (1,094,544)       (2,088,918)
                               
(Deficit), end of period  $ (2,718,757)     $ (920,649)     $  (2,718,757)     $  (920,649)
                               
Net (loss) income per unit:                            
  Basic   $ (0.03)     $ (0.08)     $ (0.05)     $ 0.08
  Diluted  $ (0.03)     $ (0.08)     $ (0.05)     $ 0.08
                               

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.

SOURCE Canadian Equipment Rental Fund Limited Partnership


Source: newswire



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