Canadian Equipment Rental Fund Limited Partnership Announces March 31, 2011 Results
TSX Venture Symbol: CFL.UN
CALGARY, June 24, 2011 /PRNewswire/ - 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 months ended March 31, 2011.
Full details of the Partnership's results, in the form of the unaudited condensed interim consolidated financial statements and notes thereto for the three months ended March 31, 2011 and Management's Discussion and Analysis of the results dated June 23, 2011 are available on SEDAR at www.sedar.com and on the Partnership's website www.cerflp.com .
Highlights of the three months ended March 31, 2011 were:
- Revenue for the quarter ended March 31, 2011 increased 31% when compared to revenue for the same quarter of 2010.
- EBITDA increased 15% compared to the first quarter of 2010.
- Net income per limited partnership unit was $0.06, in comparison to the 2010 net income per unit of $0.08.
- The Partnership distributed $0.06 per unit to unit holders of record as at March 31, 2011.
On April 29, 2011 the acquisition of Maplethorpe Contractors Ltd. was completed.
The board of directors of CERF GP Corp. general partner for Canadian Equipment Rental Fund Limited Partnership is pleased to announce that David Maplethorpe, CEO and founder of Maplethorpe Contractors Ltd. ("MCL") has been appointed to the board of directors of CERF GP Corp. at the Partnerships annual meeting which was held on June 23, 2011. David Maplethorpe's extensive managerial experience will bring additional expertise and insights into the waste recycling business to the board.
Mr. Wadley makes the following statements:
"The recent acquisition of MCL has brought a new dimension to the CERF organization. MCL has an abundance of interesting opportunities that it looks to pursue within its field of expertise. Both from a geographical and an operational perspective, MCL is actively sourcing opportunities that are synergistic and accretive to its various business units. CERF will provide MCL with the potential to access the capital markets in order to act on these opportunities.
MCL is actively engaged with CERF's existing subsidiaries, 4-Way and Smart-Way, in identifying areas where cross marketing and co-ordination of services can add to the bottom line of CERF. MCL's facility management and material handling expertise in conjunction with Smart-Way's innovative waste products and collection services provides for a more efficient and cost effective strategy to handle the waste and recyclables that are generated by Smart-Way's customers. Smart-Way will now have a greater ability to service specific customer waste management needs through MCL's larger roll-off bin fleet, bulk material transfer equipment and operational foot print in central and northern Alberta.
4-Way Equipment continues to see growth as more construction projects get under way. This is evidenced by our stronger financial results for Q4 2010 and Q1 2011. The decisions in 2009 and 2010 to maintain or increase staffing levels and to systematically rationalize the rental fleet are paying off as we are currently in a position to provide our traditional high level of service combined with an up to date and modern rental fleet that our customers demand as their activity levels increase.
When polling our customers, most report that they expect to see continued growth in 2011 and even busier times for 2012. In a recent article published by the Edmonton Journal dated June 15, 2011, they quote recent research by Peters and Co., forecasting capital spending on oil sands projects of $180 billion in the next decade with annual spending expected to peak at $22 billion by 2014. Additionally and important to CERF is that "annual spending on oil sands operations and maintenance now exceeds new capital investment pushing the total current outlay to more than $30 billion a year." The energy industry provides a great economic stimulus for the Province of Alberta. This translates into busier industrial, commercial, residential and institutional construction contractors that we service. Also, by virtue of our diverse rental fleet, we enjoy the activity created from the renovation and ongoing maintenance sectors.
These are exciting times for CERF as we grow and add more products and services in all three subsidiaries. Our continuing strategy is to expand the scope and reach of the CERF businesses and to add to other complimentary business so that each can realize their true potential and contribute to the overall growth of the Partnership."
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 9,530,906 units issued and outstanding.
Forward-Looking Statements
Certain statements contained in this press release, including the statements of Mr. Wayne Wadley below, constitute "forward-looking statements" under applicable securities laws. These statements relate to future events or future performance and are based on the Partnership's current expectations, estimates, projections, assumptions and beliefs. Although the Partnership believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Accordingly, undue reliance should not be placed on these forward-looking statements. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements. In particular, but without limiting the foregoing, this press release contains forward-looking information pertaining to the anticipated completion of the Reorganization. All such forward-looking statements involve known and unknown risks and uncertainties, certain of which are beyond the control of the Partnership. The forward-looking statements contained in this press release are made as of the date hereof and the Partnership does not intend, and does not assume any obligation, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
Summarized financial results for the three months ended March 31, 2011 follow:
CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP
Condensed Interim Consolidated Statements of Financial Position
Unaudited, in Canadian dollars
| March 31, | December 31, | January 1, | |||||||
| 2011 | 2010 | 2010 | |||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash | $ | 4,067,192 | $ | 5,011,552 | $ | 42,502 | |||
| Accounts receivable | 4,297,748 | 3,972,819 | 2,370,047 | ||||||
| Inventory | 684,014 | 713,026 | 764,249 | ||||||
| Prepaid expenses and deposits | 172,329 | 222,111 | 215,506 | ||||||
| 9,221,283 | 9,919,508 | 3,392,304 | |||||||
| Non-current assets: | |||||||||
| Property and equipment | 16,361,876 | 15,802,840 | 17,995,205 | ||||||
| Goodwill | 203,477 | 203,477 | 203,477 | ||||||
| Deferred income taxes | 409,174 | 155,394 | — | ||||||
| Financial derivatives | 8,683 | 2,240 | 19,697 | ||||||
| 16,983,210 | 16,163,951 | 18,218,379 | |||||||
| Total assets | $ | 26,204,493 | $ | 26,083,459 | $ | 21,610,683 | |||
| Liabilities and Partners' Equity | |||||||||
| Liabilities | |||||||||
| Current liabilities: | |||||||||
| Bank indebtedness | $ | — | $ | — | $ | 317,193 | |||
| Accounts payable and accrued liabilities | 2,140,398 | 2,297,724 | 1,053,376 | ||||||
| Distributions payable | 518,454 | 366,987 | 365,334 | ||||||
| Income taxes payable | 451,159 | — | — | ||||||
| Note payable | 300,000 | 300,000 | 300,000 | ||||||
| Current portion of long-term debt | 1,495,952 | 1,714,645 | 1,681,313 | ||||||
| Current portion of finance leases | 121,073 | 106,685 | 95,646 | ||||||
| 5,027,036 | 4,786,041 | 3,812,862 | |||||||
| Non-current liabilities: | |||||||||
| Long-term debt | 3,999,019 | 4,154,666 | 5,296,964 | ||||||
| Obligation under finance leases | 4,350,750 | 4,324,074 | 4,430,759 | ||||||
| Deferred income taxes | — | — | 301,340 | ||||||
| 8,349,769 | 8,478,740 | 10,029,063 | |||||||
| Partners' equity: | |||||||||
| Limited Partnership units | 14,809,615 | 14,765,518 | 9,068,408 | ||||||
| Unit purchase loans receivable | (374,535) | (374,535) | (438,659) | ||||||
| Contributed surplus | 541,053 | 548,802 | 470,613 | ||||||
| Deficit | (2,148,445) | (2,121,107) | (1,331,604) | ||||||
| 12,827,688 | 12,818,678 | 7,768,758 | |||||||
| Subsequent event | |||||||||
| Total Liabilities and Partners' Equity | $ | 26,204,493 | $ | 26,083,459 | $ | 21,610,683 | |||
CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP
Statements of Condensed Interim Consolidated Comprehensive Income
Unaudited, in Canadian dollars
| Three months ended | |||||
| March 31 | |||||
| 2011 | 2010 | ||||
| Revenues: | |||||
| Equipment rental | $ | 3,334,843 | $ | 2,733,476 | |
| Sales of equipment, fuel and parts | 1,434,675 | 898,696 | |||
| Service and other | 301,641 | 234,908 | |||
| 5,071,159 | 3,867,080 | ||||
| Cost of Sales: | |||||
| Cost of equipment rentals and other | 1,823,242 | 1,424,231 | |||
| Depreciation of rental equipment | 664,990 | 706,302 | |||
| Cost of sales of equipment, fuel and parts | 1,135,747 | 652,605 | |||
| 3,623,979 | 2,783,138 | ||||
| 1,447,180 | 1,083,942 | ||||
| Operating Expenses: | |||||
| General and administrative | 380,340 | 282,703 | |||
| Depreciation of non-rental property and equipment | 90,496 | 91,304 | |||
| Business acquisition | 89,070 | — | |||
| 559,906 | 374,007 | ||||
| Other Expense: | |||||
| Finance costs | 198,779 | 203,614 | |||
| Income before income taxes | 688,495 | 506,321 | |||
| Income taxes | 197,379 | 44,065 | |||
| Net income and comprehensive income for the period | $ | 491,116 | $ | 462,256 | |
| Net income per unit | |||||
| Basic | $ | 0.06 | $ | 0.08 | |
| Diluted | $ | 0.06 | $ | 0.08 | |
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
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article