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, 2006.
Quarter Highlights Include (compared with last year's third quarter):
<<
- Revenues of $2,499,116 representing an increase by 67% over same
period last year,
- Earnings of $487,034 ($0.15 per unit) representing an increase of
218% over same period last year,
- Total assets increased $9,697,131 representing an increase of
61% over same period last year.
>>
Mr. Wadley comments, "Once again, the partnership reached record breaking
sales of $6,900,474 for the nine month period representing a 65% increase in
gross revenues over the same period last year. Net income was $1,500,729 for
the first nine months, an increase of 259% compared with $418,340 for the same
period last year. Net income for the quarter was $ 0.15 per unit and $0.46 for
the nine months. Increases in gross revenues are a result of several factors
including our aggressive fleet growth married with an unprecedented customer
demand for new and used equipment sales and customer repairs of equipment.
Going into our final quarter, sales are expected to be strong as most
contractors are predicting a need for higher levels of heaters and light
equipment than in the past. This increase in heater demand will also drive
higher than normal accessory rental and fuel sales. We expect that because of
the early winter, that we will exceed heater rental revenue forecasts.
Equipment sales continue at double our forecasted rate as contractors purchase
new equipment in lieu of renting long term.
Management continues to be very optimistic going into 2007 as the economy
in Northern Alberta continues to be very strong. Of particular note, in our
home County of Strathcona, CERF is expecting to reap spin-offs from mega
projects such as the refinery expansions, oil upgrader construction projects,
and pipeline terminals expansions. These projects have all received approval
for development representing a staggering total capital expenditure of
$8.24 Billion. Many of our customers will be involved in these projects as
well as in projects in Fort McMurray region and the NWT. Our revenues will
also come from the 'trickle down' effect on the greater Edmonton region's
commercial and home building industries. All sectors including sandblasting,
refractory, industrial and commercial construction continue to report higher
than normal demand for their services and in turn, demand for our equipment to
complete their projects.
Subsequent to the quarter end, CERF closed a fully subscribed $4,000,000
non-brokered private placement (press release of October 24th, 2006) of
1,600,000 units priced at $2.50 per unit. This financing will enable us to
expand our fleet to help satisfy some of these project demands which will
translate into future profits."
<<
Canadian Equipment Rental Fund Limited Partnership
Operating as 4-Way Equipment Rentals
Balance Sheets
(unaudited)
-------------------------------------------------------------------------
September 30, December 31,
2006 2005
-------------------------------------------------------------------------
Assets
Current assets:
Accounts receivable $ 2,500,867 $ 1,888,359
Inventory and other 415,563 397,200
-------------------------------------------------------------------------
2,916,430 2,285,559
Property and equipment 6,692,501 4,265,327
Prepaid rent 88,200 88,200
-------------------------------------------------------------------------
$ 9,697,131 $ 6,639,086
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Partners' Equity
Current liabilities:
Bank indebtedness $ 723,246 $ 560,749
Accounts payable and accrued liabilities 1,703,332 983,365
Partner distribution payable 361,684 -
Callable bank debt - 340,060
Current portion of long-term debt 732,542 477,901
-------------------------------------------------------------------------
3,520,804 2,362,075
Long-term debt 2,168,733 1,331,625
Notes payable 800,000 800,000
-------------------------------------------------------------------------
6,489,537 4,493,700
Partners' equity 3,146,920 2,145,386
Contributed surplus 60,674 -
-------------------------------------------------------------------------
$ 9,697,131 $ 6,639,086
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Canadian Equipment Rental Fund Limited Partnership
Operating as 4-Way Equipment Rentals
Statements of Operations
(unaudited)
-------------------------------------------------------------------------
Three Months Three Months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2006 2005 2006 2005
-------------------------------------------------------------------------
Revenue: $ 2,499,116 $ 1,494,622 $ 6,900,474 $ 4,166,505
Expenses:
Cost of sales 442,589 227,195 1,185,969 599,262
General and
administrative 122,347 101,381 393,155 427,286
Interest 66,487 44,878 171,241 108,272
Operating 1,006,422 778,321 2,751,183 2,160,010
Stock based
compensation
(note 9) 36,173 - 79,505 -
Amortization of
property and
equipment 320,386 203,502 821,771 572,141
Loss (gain) on
disposal of
property and
equipment 17,678 (13,921) (3,079) (118,806)
-------------------------------------------------------------------------
2,012,082 1,341,356 5,399,745 3,748,165
-------------------------------------------------------------------------
Net income for
the period $ 487,034 $ 153,266 $ 1,500,729 $ 418,340
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net income per unit
Basic $ 0.15 $ 0.06 $ 0.46 $ 0.17
Diluted $ 0.15 $ 0.06 $ 0.45 $ 0.17
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
Additional information and full financial statements for current and past
periods may be found on the SEDAR web site at www.sedar.com.
CERF LP is a Canadian 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 4,914,119 units
issued and outstanding.
%SEDAR: 00022335E
