CERF Reports Revenue of $12 million, Adjusted EBITDA of $4 million and Net Income of $1.5 million for Q1 2014
CALGARY, ALBERTA--(Marketwired - May 15, 2014) - Mr. Wayne Wadley, President of CERF Incorporated (the "Company" or "CERF") (TSX VENTURE:CFL) is pleased to announce financial and operating results for the Company for the three months ended March 31, 2014.
"CERF had a successful start to 2014, and we are very pleased to announce the seventh consecutive quarter in which CERF has delivered results that exceeded those reported a year earlier," stated Mr. Wadley. " In the first quarter we recorded meaningful increases in our net income, and adjusted free cash flow coupled with a significant decrease in our payout ratio were driven by higher demand for service in our rental equipment division."
Full details of the Company's financial results, in the form of the unaudited, condensed, consolidated interim financial statements and notes for the three months ended March 31, 2014 and Management's Discussion and Analysis of the results are available on SEDAR at www.sedar.com and on the Company's website at www.cerfcorp.com.
Selected Financial Highlights for Q1 2014 Include:
Summary of the First Quarter 2014 Consolidated Financial Results:
In C$,000's except percentages and per share data | Three months ended March 31, 2014 | Three months ended March 31, 2013 | $ change |
% |
Revenue | 12,424 | 11,444 | 980 | 9% |
Direct Expenses |
8,326 | 7,763 | 563 | 7% |
Gross Margin % |
33% | 32% | 1% | |
Net Income |
1,488 | 1,110 | 378 | 34% |
Net income per share, basic |
0.092 | 0.095 | (0.003) | (3)% |
Adjusted EBITDA |
4,026 | 4,001 | 25 | 1% |
Adjusted Free Cash Flow |
724 | (963) | 1,687 | 175% |
Trailing 12 Month payout ratio |
44% | 89% | (45)% | |
Dividend per share |
0.06 | 0.06 | - | 0% |
Summarized financial results for the three months ended March 31, 2014 follow:
CERF INCORPORATED
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
IN THOUSANDS OF CANADIAN DOLLARS
Unaudited | March 31, 2014 | December 31, 2013 | |
Assets | |||
Current assets: | |||
Cash | 176 | 557 | |
Accounts receivable | 9,182 | 8,433 | |
Inventory | 1,574 | 1,561 | |
Income taxes recoverable | - | - | |
Prepaid expenses and deposits | 364 | 397 | |
11,296 | 10,948 | ||
Non-current assets: | |||
Long term receivable | 177 | 238 | |
Property and equipment | 38,010 | 36,890 | |
Intangibles and goodwill | 10,463 | 10,714 | |
48,650 | 47,842 | ||
Total assets | 59,946 | 58,790 | |
Liabilities and Shareholders' Equity | |||
Current liabilities: | |||
Bank indebtedness | - | - | |
Accounts payable and accrued liabilities | 5,159 | 5,339 | |
Dividends payable | 968 | 963 | |
Income taxes payable | 260 | 559 | |
Current portion of long-term debt | 1,502 | 1,502 | |
Current portion of finance leases | 290 | 314 | |
8,179 | 8,677 | ||
Non-current liabilities: | |||
Long-term debt | 15,871 | 14,801 | |
Obligation under finance leases | 4,042 | 4,106 | |
Deferred income taxes | 2,011 | 2,115 | |
21,924 | 21,022 | ||
Total liabilities | 30,102 | 29,699 | |
Shareholders' equity |
|||
Share capital | 33,106 | 32,894 | |
Warrants | 835 | 835 | |
Share purchase loans receivable | (148) | (148) | |
Contributed surplus | 765 | 744 | |
Deficit | (4,714) | (5,234) | |
29,844 | 29,091 | ||
Total liabilities and shareholders' equity | 59,946 | 58,790 |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME AND COMPREHENSIVE INCOME
IN THOUSANDS OF CANADIAN DOLLARS
(unaudited) | Three months ended March 31, 2014 | Three months ended March 31, 2013 |
|
Revenues | 12,424 | 11,444 | |
Direct expenses | |||
Direct operating costs | 5,460 | 5,491 | |
Cost of sales of equipment, fuel and parts | 1,475 | 862 | |
Depreciation of equipment | 1,391 | 1,410 | |
8,326 | 7,763 | ||
Gross margin | 4,098 | 3,681 | |
Operating expenses | |||
General and administrative | 1,484 | 1,374 | |
Depreciation of other property and equipment | 31 | 28 | |
Amortization of intangible assets | 251 | 251 | |
Business acquisition expenses | - | 10 | |
1,766 | 1,663 | ||
Other expenses | |||
Finance costs | 316 | 424 | |
Income before income taxes | 2,016 | 1,594 | |
Income taxes |
|||
Current | 631 | 577 | |
Deferred | (103) | (93) | |
528 | 484 | ||
Net income and comprehensive income for the period | 1,488 | 1,110 | |
Net income per share | |||
Basic | $0.092 | $ 0.095 | |
Diluted | $0.092 | $ 0.095 |
About CERF Incorporated
CERF is in the equipment rental business (the "Equipment Rental Segment") and the waste management business (the "Waste Management Segment") in Alberta. The Equipment Rental Segment includes the rental of residential, commercial and industrial construction-related equipment, including sales and service of equipment. It also includes the rental and sale of equipment to the drilling and service sectors of the oil and natural gas industry. The Waste Management Segment consists of complete waste facility management (six landfill sites in central Alberta) including waste facility design and construction services, recycling management and collection services, and consulting services. The Waste Management Segment also consists of waste removal and disposal from commercial, industrial and residential customers. CERF Incorporated trades on the TSX Venture Exchange under the symbol "CFL".
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.
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