TSX Venture Symbol: CFL.UN
CALGARY, Aug. 29 /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 second quarter ended June 30, 2008.
Highlights of the three and six month periods ended June 30, 2008 were:
- Revenue for the quarter amounted to $3,717,615 representing an
increase of 18% over the same quarter in 2007 and up 21% over the
same six months of 2007.
- Operating margins increased to 53% compared to 51% for the six months
ended June 10, 2007.
- Net income increased 47% over the first six months of 2007.
- Net income per unit increased to $0.40 basic compared to $0.29 for
the six months ended June 30, 2007.
- Distributions of $0.16 per unit were declared for the quarter, $0.32
for the six months.
Mr. Wadley comments, "Alberta is still experiencing robust growth in most sectors of its economy. The Province is dedicated to seeing that Alberta's infrastructure keeps pace with this growth. Recently the Government of Alberta announced a 20-year strategic plan for infrastructure wherein Premier Stelmach reinforced his commitment to invest on average of $6 billion (2007 dollars) per year for the next 20 years to meet short and medium long term infrastructure goals. This plan captures eight specific areas including: municipal infrastructure; provincial highway network, other transportation and corridors; health facilities; schools; post secondary; housing and government facilities; community facilities; and water and wastewater facilities. Alberta's per capita spending on infrastructure remains at more than three times the average of other provinces. No previous infrastructure plan has looked 20 years ahead with this range and scope. The 20-year commitment will allow Municipalities in Alberta to undertake long range infrastructure projects and commit to long term construction contracts. Most of CERF LP's customers are directly involved in these capital infrastructure projects and have applauded the government for having the initiative to plan so far in advance for Alberta's infrastructure needs.
The residential building market has experienced a slight slowdown. Several large real estate brokerage firms remain confident the excess inventory will be sold by end of the year. Therefore, our large home builders and commercial condominium contractors are continuing with their development projects in Edmonton and area.
The office, industrial and retail sectors remain strong with vacancy at an all time low pushing demand for more development. Vacancy rates for office space remains at under 2.5%, industrial at 1.44% and retail ranging from 1.44% to 5.41% depending on the area. Large scale projects such as the EPCOR Tower, currently being built in downtown Edmonton, and the new REXALL Place slated for a downtown location, are prime examples of the optimism of mega projects with spin offs in retail and office development.
CERF LP continues to focus on equipment solution provision for our customers. Providing equipment to meet their demand in a timely manner has been a key to our success. CERF LP's board and management are optimistic about the opportunities and are looking forward to a continued strong demand for our services in 2008 and 2009."
Canadian Equipment Rental Fund Limited Partnership
Operating as 4-Way Equipment Rentals
Balance Sheets - unaudited
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June 30, December 31,
2008 2007
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Assets
Current assets:
Cash $ 418,101 $ 254,833
Accounts receivable 2,662,389 4,874,826
Inventory 429,892 398,492
Prepaid expenses 141,041 64,289
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3,651,423 5,592,440
Property and equipment 14,751,251 13,297,555
Prepaid rent 88,200 88,200
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$ 18,490,874 $ 18,978,195
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Liabilities and Partners' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,511,026 $ 2,160,026
Distributions payable 925,036 861,016
Note payable 300,000 300,000
Current portion of long-term debt 1,032,398 1,627,525
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3,768,460 4,948,567
Long-term debt 4,515,890 4,420,689
Future income taxes 621,150 572,515
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8,905,500 9,941,771
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Partners' equity:
Limited Partnership units 8,211,032 8,125,047
Unit purchase loans receivable (487,877) (530,740)
Contributed surplus 438,108 398,724
Retained earnings 1,424,111 1,043,393
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9,585,374 9,036,424
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$ 18,490,874 $ 18,978,195
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Statements of Operations
(unaudited)
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Three Months Three Months Six months Six months
ended ended ended ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
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Revenue: $ 3,717,615 $ 3,146,455 $ 9,063,214 $ 7,464,813
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Expenses:
General and
administrative 355,125 206,557 611,620 370,484
Interest on long
term debt 95,907 70,099 210,780 128,367
Operating 2,079,534 1,628,919 4,241,605 3,671,710
Unit based
compensation 27,645 74,120 61,643 143,646
Amortization of
property
and equipment 843,377 598,411 1,674,793 1,077,636
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3,401,588 2,578,106 6,800,441 5,391,843
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Income before
taxes 316,027 568,349 2,262,773 2,072,970
Future income taxes 40,205 568,532 48,635 568,532
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Net income (loss)
for the period $ 275,822 $ (183) $ 2,214,138 $ 1,504,438
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Retained earnings,
beginning of
period 2,067,094 1,887,490 1,043,393 1,387,807
Partner
distributions
declared (note 10) (918,805) (814,692) (1,833,420) (1,819,630)
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Retained earnings,
end of period $ 1,424,111 $ 1,072,615 $ 1,424,111 $ 1,072,615
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Net income per unit
(note 13):
Basic $ 0.05 $ 0.00 $ 0.40 $ 0.29
Diluted $ 0.05 $ 0.00 $ 0.37 $ 0.28
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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 5,792,228 units
issued and outstanding."
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00022335E