CALGARY, Nov. 27 /CNW/ -- 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 and nine months ended September 30, 2009.
Full details of the Partnership's results, in the form of the unaudited financial statements for the three and nine months ended September 30, 2009 and Management's Discussion and Analysis of the results dated November 26, 2009 are available on SEDAR at www.sedar.com.
Highlights of the nine month period ended September 30, 2009 were:
- Revenue for the nine months was $9,609,466.
- Net income per unit of $0.08 basic.
- Distributions of $0.12 per unit were declared for the quarter.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances, cash flows or the ability to pay distributions to be materially different from the results, performances, cash flow or the ability to pay distributions expressed or implied by such forward looking statements.
Mr. Wadley makes the following statements:
"Commercial projects became fewer than in the fall of 2008 which caused a slow down in overall rental activity for the Partnership. Homebuilders however, are finally picking up the pace and in some cases experiencing a 10 fold increase in housing starts from the fall of 2008. Their previous inventories have now been sold and more buyers are now looking at entering the market. Multi housing projects are also starting to become active again as financing is being freed up. We have seen a steady improvement in activity in all sectors as well as increasingly optimistic growth forecasts. We are expecting the commercial construction market to actually accelerate in 2010 as the stimulus spending for infrastructure construction by both the Federal and Provincial Governments finally starts to get spent. It is the opinion of management that rental revenues will continue to improve over the remainder of 2009 and into 2010.
On October 23, 2009 the Partnership closed the acquisition of a waste disposal and recycling business and assets of a private company located in Edmonton, Alberta. The acquisition was made through the Partnership's wholly owned newly incorporated subsidiary, The Smart-Way Disposal and Recycling Company Ltd. and is effective as of October 1, 2009. Management feels that waste disposal and especially recycling will become an increasingly important aspect of all construction in the near future.
Currently, construction and demolition waste accounts for about 25% of the total amount of municipal solid waste sent to landfills in Alberta, however, only about 10% of these waste materials are currently being recycled. It is estimated that at least 80% of material currently sent to landfills in Alberta can be recovered. To address this issue, regulations are being considered by Alberta Environment, under the Landmark Agreement, that propose that at least 50% of construction and demolition material be diverted from landfills to approved recycling facilities. The completion of the acquisition allows CERF to offer additional services to our existing customers which will enable them to increase the ratio of materials to be recycled in anticipation of the pending regulations. An additional benefit to the acquisition is that we gain access to new customers that were previously serviced by our predecessor. They will require additional rental equipment and services we currently offer."
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 6,088,900 units issued and outstanding.
CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP
Consolidated Balance Sheets - unaudited
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September 30, December 31,
2009 2008
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Assets
Current assets:
Cash $ - $ 227,425
Accounts receivable 2,215,016 3,870,472
Inventory and other 1,017,602 796,329
Prepaid expense 164,368 118,242
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3,396,986 5,012,468
Property and equipment 14,373,783 14,449,882
Financial derivatives 11,306 -
Prepaid rent 88,200 88,200
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$17,870,275 $19,550,550
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Liabilities and Partners' Equity
Current liabilities:
Bank indebtedness $ 127,045 $ -
Accounts payable and accrued liabilities 1,215,269 1,669,591
Distributions payable 701,208 929,476
Note payable 300,000 300,000
Current portion of long-term debt 1,707,846 1,461,502
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4,051,368 4,360,569
Long-term debt 5,652,510 5,640,673
Future income taxes 713,577 594,740
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10,417,455 10,595,982
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Partners' equity:
Limited Partnership units 8,345,491 8,272,782
Unit purchase loans receivable (438,659) (487,877)
Contributed surplus 466,637 469,197
(Deficit) retained earnings (920,649) 700,466
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7,452,820 8,954,568
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$17,870,275 $19,550,550
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CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP
Statements of Consolidated Operations - unaudited
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Three Months Three Months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
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Revenue: $ 2,482,010 $ 3,020,798 $ 9,609,466 $12,084,012
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Expenses:
General and
administrative 301,872 154,462 925,681 766,082
Interest on long
term debt 63,276 93,347 226,507 304,127
Operating 1,564,644 1,669,513 5,358,914 5,911,118
Unit based
compensation 3,567 24,923 16,720 86,566
Amortization of
property and
equipment 840,605 833,465 2,506,310 2,508,258
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2,773,964 2,775,710 9,034,132 9,576,151
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Other:
Loss (gain) on
derivatives 10,418 - (11,306) -
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(Loss) income before
taxes (302,372) 245,088 586,640 2,507,861
Future income taxes
(recovery) 153,974 38,244 118,837 86,879
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Net and
comprehensive
income $ (456,346) $ 206,844 $ 467,803 $ 2,420,982
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Retained earnings,
beginning of period 235,675 1,424,111 700,466 1,043,393
Partner
distributions
declared (699,978) (923,758) (2,088,918) (2,757,178)
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(Deficit) retained
earnings, end of
period $ (920,649) $ 707,197 $ (920,649) $ 707,197
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Net (loss) income
per unit :
Basic $(0.08) $0.04 $0.08 $0.44
Diluted $(0.08) $0.03 $0.08 $0.41
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Full financial statements and notes thereto as well as management discussion and analysis are available on the SEDAR website at www.sedar.com.
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.
%SEDAR: 00022335E
