CALGARY, ALBERTA--(Marketwired - Aug. 28, 2015) - CERF Incorporated (the "Company" or "CERF") (TSX VENTURE:CFL) today announced its financial and operating results for the three and six months ended June 30, 2015.

"The second quarter of 2015 continued to be a challenging time for the energy industry. While the prolonged weakness in oil prices resulted in sharp year-over-year rig count declines CERF continues to be well positioned to withstand this current downturn," said Wayne Wadley, President and CEO of CERF. "Our diversified business platforms continue to help mitigate the full impact of the lower energy price environment. We have prudently managed our assets, headcount and expenses in the context of these weak economic conditions. When coupled with our strong balance sheet, CERF is well positioned to weather this downturn and has the ability to capitalize on investment opportunities as they arise."


Three months ended June 30 Six months ended June 30
(in $ 000s) 2015 2014 2015 2014
Revenue 9,292 10,014 26,953 22,439
Adjusted EBIT1 (1,672) 987 1,026 3,051
Net (loss) income (1,966) 257 (723) 1,756
Net income [loss] per share
Basic (0.05) 0.02 (0.02) 0.11
Diluted (0.05) 0.02 (0.02) 0.11
Adjusted EBITDA2 1,255 2,602 6,790 6,628
Dividends Declared 2,178 1,055 4,353 2,023

1,2 See Financial Measures Reconciliations on page 6 of CERF's second quarter 2015 MD&A and see accompanying notes to the Condensed Consolidated Interim Financial Statements.


  • Revenue decreased by 7.2% in the quarter ended June 30, 2015 to $9.3 million when compared to the $10.0 million generated in the prior year's quarter. The decrease was largely the result of declines in both the Industrial Rentals and the Waste Management segments. The declines were partially offset by a $1.1 million increase from the Oilfield Rentals segment, which benefited from the addition of the operations of Winalta and the assets of Empire.
  • Net income decreased from $0.3 million in the second quarter of 2014 to a net loss of $2.0 million in the quarter ended June 30, 2015. The loss was due in part to weaker revenues resulting from fewer active drilling rigs, increased competition in the Edmonton construction rentals market, and a decrease in special waste volumes originating from the oil and gas sector.
  • Adjusted EBITDA for the quarter ended June 30, 2015 was $1.3 million compared to $2.6 million for the similar quarter in 2014.


Energy Services Division

  • TRAC reported revenues of $2.4 million in the second quarter, an increase of 96% over Q2 2014. This growth was driven primarily by the acquisition of Winalta and Empire, contributing $1.8 million revenue. TRAC's revenue excluding the Winalta and Empire acquisitions decreased 50% from the comparable quarter in 2014. Low oil prices have reduced drilling activities in western Canada, resulting in lower utilization of rental assets and a corresponding decrease in revenue.
  • Gross margin was negative 33% in the second quarter of 2015. The gross margin loss resulted from increased rent, depreciation costs and decreased margin on third party revenue when compared to the second quarter of 2014.

Industrials Division - Equipment Rentals & Waste Management Segments

Industrial Rentals Segment

  • Industrial rental revenue declined by $0.5 million or 16% compared to the similar quarter in 2014. As noted in prior quarters, the decrease resulted from a combination of factors which include: reduced rental day rate pricing because of increased competition, and decreased fleet utilization because of certain construction projects delays, which have been affected by the weakened economy.
  • Gross margin for the quarter ended June 30, 2015 decreased 61% to $303,000 in the second quarter of 2015. The decrease was largely due to the factors listed above.

Waste Management Segment

  • Revenue in the Waste Management Segment decreased by 20% or $0.8 million compared to the same three month period in 2014. This revenue decrease primarily results from reduced volumes of special waste combined with lower facility management revenue. The decrease in industrial soils volume is consistent with the overall decrease in economic activity in Alberta during the quarter. The lower facility management revenue results from the net effect of losing a landfill management contract in late 2014 and gaining a new transfer station management contract in January 2015.
  • The decline was partially offset by a $0.4 million increase in collections revenue, resulting from rate increases instituted in Q1 2015, an increase in waste hauling activities, and an increase in recoverable landfill charges.

Conference Call

CERF will host a conference call on August 31, 2015 at 8:00 a.m. MDT (10:00 a.m. EDT). To access the conference call by telephone dial toll-free 1-866-223-7781. Callers from the Toronto area should use (416) 340-2216. Please connect approximately 10 minutes prior to the beginning of the call.

The conference call will be available for replay two hours after the call ends at toll-free 1-800-408-3053. Callers from the Toronto area should use (905) 694-9451. Callers from the Toronto area should use (905) 694-9451. The replay passcode is: 2780331. It will remain available at the link above until September 10, 2015.

Full details of the Company's financial results, in the form of the condensed, consolidated interim financial statements and notes for the three and six months ended June 30, 2105 and Management's Discussion and Analysis of the results are available on SEDAR at and on the Company's website at

About CERF Incorporated

CERF is a Canadian public corporation with two primary divisions: industrials and energy services. The Industrials division is engaged in the rental of industrial and construction equipment and waste management. The energy services division is engaged in the rental of surface rentals, downhole equipment and accommodations to the Western Canadian Oil and Gas Industry. CERF has paid consecutive quarterly dividends since 2005 and trades on the TSX Venture Exchange under the symbol "CFL". CERF currently has 36,374,148 common shares issued and outstanding.


Certain statements included or incorporated by reference in this press release constitute forward-looking statements or forward-looking information, including management's assessment of expected activity levels continuing through 2015, and expected decrease in demand for rental equipment over the next year as well as forecasted economic measures for the Province of Alberta and oil and natural gas prices and the effect on drilling programs as a result of the decline in oil prices. Forward-looking statements or information may contain statements with the words "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", "would have realized', "may have been" or similar words suggesting future outcomes or expectations. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements because the Company can give no assurance that such statements will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties. These assumptions include that demand for industrial rental equipment, will remain relatively constant or grow marginally through 2015, that the economic downturn caused by the low oil price environment will not affect the performance of the waste management segment, that the Company's proactive cost cutting measures currently being implemented will protect future margins and that the Company's diverse operations will protect against profound down swings in the economic environment. Although management believes these assumptions are reasonable, there can be no assurance that they will be proved to be correct, and actual results will differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless it is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.

This press release also makes reference to certain non-IFRS measures, which management believes assists in assessing the Company's financial performance. Readers are directed to the section below entitled "Financial Measures Reconciliations" for an explanation of the non-IFRS measures used.

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.

Contact Information:

Wayne Wadley
President and CEO
P: (403) 850-4095

Derrek Wong, MBA, CFA, FCMA
Vice President, Finance and CFO
P: (403) 354-5440