TSX Venture Symbol: CFL.UN
CALGARY, May 28 /CNW/ - Mr. Wayne Wadley, president of CERF GP Corp., the general partner of Canadian Equipment Rental Fund Limited Partnership ("CERF"), is pleased to announce the results for the first quarter ended March 31, 2008.
Quarter Highlights Include:
- Revenues for the three months were $5,345,599 up $1,027,241 or 24%
over the quarter ended March 31, 2007.
- Income before income tax was $1,946,746 for the quarter representing
an increase of 29% compared with $1,540,621 of income earned in the
three months ended March 31, 2007.
- Basic income per unit before tax was $0.35 for the quarter compared
to $0.29 for the same three months of 2007.
- Net income before interest, taxes, depreciation, amortization and
unit based compensation (EDITDAC) for the quarter was $2,927,033 up
39% compared with $2,111,642 of the same period last year.
- Distributions per unit were $0.16 for the first three months of 2008
compared to $0.13 for the first three months of 2007.
- Capital expenditures net of proceeds of disposals totaled $1,541,903
compared to $677,102 for the same three months of 2007.
Mr. Wadley comments, "We are very pleased with the results of the first quarter. While the total revenues remained flat from the fourth quarter of 2007, the operating margin increased significantly due to an increase of funds generated from rental equipment. Net income before taxes was up almost $739,000 to $1,946,746 ($0.35/unit) compared to the previous quarter and represents an all time quarterly record for the Partnership.
The residential housing construction market in the Edmonton area has slowed somewhat as contractors serving that sector are looking to lower current inventory levels. However, on the commercial and infrastructure construction fronts, activity levels continue very high. These contractors still report a backlog of projects to be completed over the next several years. As the financial results of the quarter have shown, the increased activity by commercial contractors and the corresponding need for our equipment and services has more than offset any slowdown seen from our residential construction customers. We anticipate this trend to continue through the summer construction season as more infrastructure projects get into full swing. We expect our residential construction customer's activity levels to pick up again in the fall and winter months as new home inventories return to more normal levels."
Balance Sheets - unaudited
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March 31, December 31,
2008 2007
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Assets
Current assets:
Cash $ 110,021 $ 254,833
Accounts receivable 4,473,589 4,874,826
Inventory and other 451,741 462,781
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5,035,351 5,592,440
Property and equipment 14,008,043 13,297,555
Prepaid rent 88,200 88,200
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$ 19,131,594 $ 18,978,195
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Liabilities and Partners' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,576,867 $ 2,160,026
Distributions payable 921,231 861,016
Note payable 300,000 300,000
Current portion of long-term debt 1,604,095 1,627,525
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4,402,193 4,948,567
Long-term debt 4,024,620 4,420,689
Future income taxes 580,945 572,515
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9,007,758 9,941,771
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Partners' equity:
Limited Partnership units 8,167,172 8,125,047
Unit purchase loans receivable (530,740) (530,740)
Contributed surplus 420,310 398,724
Retained earnings 2,067,094 1,043,393
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10,123,836 9,036,424
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$ 19,131,594 $ 18,978,195
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Statements of Operations - unaudited
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Three months Three months
ended ended
March 31, March 31,
2008 2007
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Revenues $ 5,345,599 $ 4,318,358
Expenses:
General and administrative 256,495 163,926
Interest on long term debt 114,873 58,267
Operating 2,162,071 2,042,790
Unit based compensation 33,998 69,527
Amortization of property and equipment 831,416 479,227
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3,398,853 2,813,737
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Income before income taxes 1,946,746 1,504,621
Future income taxes 8,430 -
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Net income and comprehensive income for the
period 1,938,316 1,504,621
Retained earnings, beginning of period 1,043,393 1,387,807
Partner distributions declared (914,615) (1,004,938)
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Retained earnings, end of period $ 2,067,094 $ 1,887,490
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Net income per unit
Basic $ 0.35 $ 0.29
Diluted $ 0.33 $ 0.29
CERF LP is an Alberta limited partnership engaged in the rental, sale and service of industrial and construction equipment. CERF LP trades on the TSX Venture Exchange under the symbol "CFL.UN" and currently has 5,781,028 units issued and outstanding.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00022335E