TSX Venture Symbol: CFL
CALGARY, April 27, 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 year ended December 31, 2011.
Full details of the Company's results, in the form of the audited consolidated financial statements and notes thereto for the year ended December 31, 2011 and Management's Discussion and Analysis of the results dated April 25, 2011 are available on SEDAR at www.sedar.com and on the Company's website at www.cerfcorp.com.
Highlights of the year ended December 31, 2011 were:
- Revenues increased 78% to $26,609,526 for the year ended December 31, 2011 from $14,908,523 for the year ended December 31, 2010.
- Net income increased to $1,497,392 for the year ended December 31, 2011 compared to net income of $671,084 for 2010. Net income in 2011 was reduced by a onetime charge of $205,119 related to the cost of converting to a public corporation on October 1, 2011.
- Adjusted EBITDA increased 68% to $7,973,542 in 2011 compared to $4,749,072 for 2010.
- Acquisition of Maplethorpe Contractors Ltd. ("MCL"), a private integrated waste management company, was completed on April 29, 2011. The acquisition of MCL is considered to be accretive to the Company's operations and significant synergies are expected to be realized in the future. Since the acquisition on April 29, 2011 MCL has contributed sales revenues of $8,111,951 and net income of $940,532 to the consolidated results.
- Revenues, excluding revenues contributed by MCL, for the year ended 2011 increased 24% when compared to revenue for 2010.
- Net income per share was $0.17 for 2011, in comparison to the 2010 net income per share of $0.11.
- The Company paid dividends of $0.24 per share to the shareholders in 2011.
The Board of Directors of the General Partner of the Partnership (CERF GP Corp. or the "General Partner") received approval of the limited partnership unitholders (the "Unitholders"), at a special meeting held on September 29, 2011, to proceed with a plan of arrangement (the "Arrangement") whereby the Partnership converted to a public corporation, CERF Inc., on October 1, 2011.
The Arrangement resulted in CERF Inc. carrying on the businesses previously carried on by the Partnership. Following the completion of the Arrangement, the Board of Directors of CERF Inc. are comprised of the previous members of the Board of Directors of the General Partner and the management of CERF Inc. is comprised of the previous management of the General Partner and the Partnership.
Pursuant to the Arrangement, Unitholders received one common share of CERF Inc. in exchange for each Limited Partnership Unit held on October 1, 2011. The Arrangement did not result in any benefits for, or change of control, termination or other payments being made to, any officers, directors or employees of the Partnership or any of its subsidiaries or of the General Partner. Subsequent to completion of the arrangement the Partnership and the General Partner were dissolved.
These consolidated financial statements follow the continuity of interest basis of accounting whereby CERF Inc. is considered a continuation of the Partnership. As a result, the comparative statements of financial position, statement of comprehensive income and cash flows include the Partnership's results of operations for the year ended December 31, 2010 and for the period up to and including September 30, 2011. All references to shares, dividends and shareholders in this press release pertain to common shares and common shareholders subsequent to the Arrangement and references to partnership units, distributions and unitholders pertain to the limited partnership units and unitholders prior to the Arrangement.
Mr. Wadley makes the following statements:
"Our commitment in 2010 to retaining our employees, maintaining our fleet of rental equipment and maximizing growth opportunities proved to be solid decision. When the Alberta economy rebounded in 2011 we were well positioned to take advantage of the increased business activity resulting from the recovery. The MCL acquisition took us to another level, adding size and a whole new dynamic to our business platform.
The future is bright with a renewed optimism. Many previously shelved construction projects have been revived. According to National Bank Financial, western Canada is expected to drive the economy and is positioned for stronger economic growth than their Eastern counterparts in 2012. In fact, the Edmonton area added 38,000 new jobs in 2011 and the Conference Board of Canada is forecasting an annual average of 14,000 new positions over the next four years in this area. Western Canadian markets are expected to benefit from global demand for resources and provide the strongest economic growth. High prices for agricultural products, mining and oil may make the outlook for our western cities such as Calgary, Edmonton, Saskatoon and Regina more promising than for cities in Eastern Canada.
Our senior management and staff made several advancements in 2011 and persevered through those turbulent months of 2010 and early 2011. The challenge was to redefine age old problems in what is typically known as a saturated and mature industry, and develop new products and innovations to improve efficiencies and bottom line results. We are very proud of the innovations that were introduced this year and how positively they impacted our customers in more ways than we expected. Several awards were won for our recycling efforts both provincially and nationally. We believe this is attributed to our commitment to continually pursue new solutions for excellence, a trait inherent in our culture from the ground up.
Our continued success is due to several factors but mostly due to our management and staff for their commitment to our customer. Our prudent cash management continues and we have succeeded in maintaining a dividend of $0.24 annually to our shareholders. We have an excellent management team in place who have "raised the bar" with their focus on the customer. This passion to deliver a great customer experience will continue to serve all shareholders well in the years to come."
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 year ended December 31, 2011 follow:
| CERF INCORPORATED
Consolidated Statements of Financial Position
In Canadian dollars
|December 31, 2011||December 31, 2010|
|Prepaid expenses and deposits||216,326||222,111|
|Property and equipment||22,269,785||15,802,840|
|Intangibles and goodwill and goodwill||3,599,104||203,477|
|Deferred income taxes||—||155,394|
|Liabilities and Partners' Equity|
|Accounts payable and accrued liabilities||3,755,003||2,297,724|
|Income taxes payable||65,463||—|
|Current portion of long-term debt||4,151,093||2,014,645|
|Current portion of finance leases||593,750||106,685|
|Obligation under finance leases||4,874,181||4,324,074|
|Deferred income taxes||623,822||—|
|Share purchase loans receivable||(309,532)||(374,535)|
| Statements of Consolidated Comprehensive Income
In Canadian dollars
|Year ended December 31|
|Sales of equipment, fuel and parts||4,523,836||3,432,487|
|Service and other||2,085,825||1,682,404|
|Direct operating costs||13,045,936||6,309,354|
|Depreciation of equipment||3,882,465||3,050,580|
|Cost of sales of equipment, fuel and parts||3,632,542||2,595,967|
|General and administrative||2,170,342||1,267,119|
|Depreciation of other property and equipment||337,737||368,174|
|Amortization of intangible assets||275,700||—|
|Business acquisition expenses||199,371||—|
|Income before income taxes||2,061,363||375,662|
|Income taxes (recovery)||563,971||(295,422)|
|Net income and comprehensive income for the year||$||1,497,392||$||671,084|
|Net income per share|
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.