Canadian Equipment Rental Fund Limited Partnership Announces Results for Q3 2009

TSX Venture Symbol: CFL.UN

CALGARY, Nov. 27 /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, 2009.

Full details of the Partnership's results, in the form of the unaudited financial statements for the three and nine months ended September 30, 2009 and Management's Discussion and Analysis of the results dated November 26, 2009 are available on SEDAR at www.sedar.com.

Highlights of the nine month period ended September 30, 2009 were:

    -  Revenue for the nine months was $9,609,466.

    -  Net income per unit of $0.08 basic.

    -  Distributions of $0.12 per unit were declared for the quarter.

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:

"Commercial projects became fewer than in the fall of 2008 which caused a slow down in overall rental activity for the Partnership. Homebuilders however, are finally picking up the pace and in some cases experiencing a 10 fold increase in housing starts from the fall of 2008. Their previous inventories have now been sold and more buyers are now looking at entering the market. Multi housing projects are also starting to become active again as financing is being freed up. We have seen a steady improvement in activity in all sectors as well as increasingly optimistic growth forecasts. We are expecting the commercial construction market to actually accelerate in 2010 as the stimulus spending for infrastructure construction by both the Federal and Provincial Governments finally starts to get spent. It is the opinion of management that rental revenues will continue to improve over the remainder of 2009 and into 2010.

On October 23, 2009 the Partnership closed the acquisition of a waste disposal and recycling business and assets of a private company located in Edmonton, Alberta. The acquisition was made through the Partnership's wholly owned newly incorporated subsidiary, The Smart-Way Disposal and Recycling Company Ltd. and is effective as of October 1, 2009. Management feels that waste disposal and especially recycling will become an increasingly important aspect of all construction in the near future.

Currently, construction and demolition waste accounts for about 25% of the total amount of municipal solid waste sent to landfills in Alberta, however, only about 10% of these waste materials are currently being recycled. It is estimated that at least 80% of material currently sent to landfills in Alberta can be recovered. To address this issue, regulations are being considered by Alberta Environment, under the Landmark Agreement, that propose that at least 50% of construction and demolition material be diverted from landfills to approved recycling facilities. The completion of the acquisition allows CERF to offer additional services to our existing customers which will enable them to increase the ratio of materials to be recycled in anticipation of the pending regulations. An additional benefit to the acquisition is that we gain access to new customers that were previously serviced by our predecessor. They will require additional rental equipment and services we currently offer."

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 6,088,900 units issued and outstanding.

    CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

    Consolidated Balance Sheets - unaudited
    -------------------------------------------------------------------------
                                                  September 30,  December 31,
                                                          2009          2008
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    Assets
    Current assets:
      Cash                                         $         -   $   227,425
      Accounts receivable                            2,215,016     3,870,472
      Inventory and other                            1,017,602       796,329
      Prepaid expense                                  164,368       118,242
    -------------------------------------------------------------------------
                                                     3,396,986     5,012,468
    Property and equipment                          14,373,783    14,449,882
    Financial derivatives                               11,306             -
    Prepaid rent                                        88,200        88,200
    -------------------------------------------------------------------------
                                                   $17,870,275   $19,550,550
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Partners' Equity
    Current liabilities:
      Bank indebtedness                            $   127,045   $         -
      Accounts payable and accrued liabilities       1,215,269     1,669,591
      Distributions payable                            701,208       929,476
      Note payable                                     300,000       300,000
      Current portion of long-term debt              1,707,846     1,461,502
    -------------------------------------------------------------------------
                                                     4,051,368     4,360,569
    Long-term debt                                   5,652,510     5,640,673
    Future income taxes                                713,577       594,740
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                                                    10,417,455    10,595,982
    -------------------------------------------------------------------------
    Partners' equity:
      Limited Partnership units                      8,345,491     8,272,782
      Unit purchase loans receivable                  (438,659)     (487,877)
      Contributed surplus                              466,637       469,197
      (Deficit) retained earnings                     (920,649)      700,466
    -------------------------------------------------------------------------
                                                     7,452,820     8,954,568
    -------------------------------------------------------------------------
                                                   $17,870,275   $19,550,550
    -------------------------------------------------------------------------
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    CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP

    Statements of Consolidated Operations - unaudited
    -------------------------------------------------------------------------
                      Three Months  Three Months   Nine months   Nine months
                             ended         ended         ended         ended
                      September 30, September 30, September 30, September 30,
                              2009          2008          2009          2008
    -------------------------------------------------------------------------
    Revenue:           $ 2,482,010   $ 3,020,798   $ 9,609,466   $12,084,012
    -------------------------------------------------------------------------
    Expenses:
      General and
       administrative      301,872       154,462       925,681       766,082
      Interest on long
       term debt            63,276        93,347       226,507       304,127
      Operating          1,564,644     1,669,513     5,358,914     5,911,118
      Unit based
       compensation          3,567        24,923        16,720        86,566
      Amortization of
       property and
       equipment           840,605       833,465     2,506,310     2,508,258
    -------------------------------------------------------------------------
                         2,773,964     2,775,710     9,034,132     9,576,151
    -------------------------------------------------------------------------
    Other:
      Loss (gain) on
       derivatives          10,418             -       (11,306)            -
    -------------------------------------------------------------------------
    (Loss) income before
     taxes                (302,372)      245,088       586,640     2,507,861
    Future income taxes
     (recovery)            153,974        38,244       118,837        86,879
    -------------------------------------------------------------------------
    Net and
     comprehensive
     income            $  (456,346) $    206,844  $    467,803  $  2,420,982
    -------------------------------------------------------------------------
    Retained earnings,
     beginning of period   235,675     1,424,111       700,466     1,043,393
    Partner
     distributions
     declared             (699,978)     (923,758)   (2,088,918)   (2,757,178)
    -------------------------------------------------------------------------
    (Deficit) retained
     earnings, end of
     period            $  (920,649) $    707,197  $   (920,649) $    707,197
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net (loss) income
     per unit :
      Basic                 $(0.08)        $0.04         $0.08         $0.44
      Diluted               $(0.08)        $0.03         $0.08         $0.41
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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