TSX Venture Symbol: CFL.UN
CALGARY, Nov. 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 third quarter ended September 30, 2008.
Highlights of the three and nine month periods ended September 30, 2008 were:
- Revenue for the quarter amounted to $3,020,798 representing an
increase of 8% over the same quarter in 2007.
- Net income increased 27% over the first nine months of 2007.
- Net income per unit for the nine months ended September 30, 2008
increased to $0.44 basic compared to $0.37 for the nine months ended
September 30, 2007.
- Distributions of $0.16 per unit were declared for the quarter, $0.48
for the nine months.
Mr. Wadley comments, "CERF continues to grow its rental fleet and customer base which results in greater revenues and cash flows. There are a number of major infrastructure projects in progress and planned to begin in the greater Edmonton area. These projects are funded in part by the Government of Alberta's 20 year infrastructure funding initiative. The provincial Governments commitment to provide $6 billion a year to the municipalities for infrastructure funding allows them to plan for and make long term commitments for major projects including highways, bridges, and access roads, schools, medical facilities, community facilities, water works and government buildings. We are currently supplying rental equipment to contractors involved in these projects and expect that we will continue to supply equipment for future projects.
Residential housing and condominium development in the Edmonton area continues to be slower than in recent years. This has translated into lower demand for equipment servicing those sectors. However, with the onset of winter weather, the heater and winter related equipment is now starting to be utilized.
CERF 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. We are looking forward to steady demand for our services for the remainder of 2008 and continued into 2009."
Canadian Equipment Rental Fund Limited Partnership
Operating as 4-Way Equipment Rentals
Balance Sheets - unaudited
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September 30, December 31,
2008 2007
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Assets
Current assets:
Cash $ 1,596,186 $ 254,833
Accounts receivable 2,900,847 4,874,826
Inventory 633,921 398,492
Prepaid expenses 125,294 64,289
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5,256,248 5,592,440
Property and equipment 14,420,815 13,297,555
Prepaid rent 88,200 88,200
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$ 19,765,263 $ 18,978,195
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Liabilities and Partners' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,483,084 $ 2,160,026
Distributions payable 928,676 861,016
Note payable 300,000 300,000
Current portion of long-term debt 1,463,825 1,627,525
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4,175,585 4,948,567
Long-term debt 6,006,083 4,420,689
Future income taxes 659,394 572,515
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10,841,062 9,941,771
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Partners' equity:
Limited Partnership units 8,249,352 8,125,047
Unit purchase loans receivable (487,877) (530,740)
Contributed surplus 455,529 398,724
Retained earnings 707,197 1,043,393
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8,924,201 9,036,424
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$ 19,765,263 $ 18,978,195
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Statements of 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,
2008 2007 2008 2007
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Revenue: $ 3,020,798 $ 2,799,138 $ 12,084,012 $ 10,263,951
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Expenses:
General and
administrative 154,462 170,413 766,082 540,897
Interest on long
term debt 93,347 87,989 304,127 216,355
Operating 1,669,513 1,465,064 5,911,118 5,136,774
Unit based
compensation 24,923 63,697 86,566 207,343
Amortization of
property and
equipment 833,465 582,639 2,508,258 1,660,276
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2,775,710 2,369,802 9,576,151 7,761,645
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Income before
taxes 245,088 429,336 2,507,861 2,502,306
Future income
taxes 38,244 26,953 86,879 595,485
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Net income for the
period $ 206,844 $ 402,383 $ 2,420,982 $ 1,906,821
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Retained earnings,
beginning of
period 1,424,111 1,072,615 1,043,393 1,387,807
Partner distributions
declared (923,758) (807,726) (2,757,178) (2,627,356)
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Retained earnings,
end of period $ 707,197 $ 667,272 $ 707,197 $ 667,272
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Net income per
unit:
Basic $ 0.04 $ 0.08 $ 0.44 $ 0.37
Diluted $ 0.03 $ 0.07 $ 0.41 $ 0.35
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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 5,804,228 units
issued and outstanding.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00022335E