Nov. 26, 2010 (Canada NewsWire Group) --
TSX Venture Symbol: CFL.UN
CALGARY, Nov. 26 /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, 2010.
Full details of the Partnership's results, in the form of the unaudited financial statements for the three and nine months ended September 30, 2010 and Management's Discussion and Analysis of the results dated November 25, 2010 are available on SEDAR at www.sedar.com and on the Partnership's website www.cerflp.com.
Highlights of the nine months ended September 30, 2010 were:
-
Revenue for the three months ended September 30, 2010 was $3,275,339 up
28% over the three months ended September 30, 2009.
-
Revenue for the nine months was $10,013,343 up 2.5% over the nine months
ended September 30, 2009.
-
Net loss per unit of $0.05 basic.
-
EBITDA for the nine month period was $3,139,869
-
EBITDA per unit of $0.53 basic.
- Distributions of $0.18 per unit were declared for the nine months.
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:
"The third quarter of 2010 has seen a 28% increase in revenues compared to the third quarter of 2009. Revenues for the nine months ended September 30, 2010 have increased 2.5% over the nine months ended September 2009. This has been driven by increasing demand for our products and services relating to the improving economy in the sectors we service.
The first half of 2010 was hampered by a warm and wet spring which reduced the demand for winter equipment and put many construction projects on hold as it was too wet to continue. Also some projects were put on hold due to the tightening of credit caused by the fear of a worsening economy related to the crisis in Europe. With those events behind us we have seen a significant increase in revenues for the third quarter which is continuing into the fourth quarter of 2010. We feel that this trend will continue into and throughout 2011."
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
6,116,450 units issued and outstanding.
CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP
| Consolidated Balance Sheets - unaudited | |||||||
| September 30, | December 31, | ||||||
| 2010 | 2009 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash | $ | 28,788 | $ | 42,502 | |||
| Accounts receivable | 2,736,228 | 2,370,047 | |||||
| Inventory | 1,134,194 | 764,249 | |||||
| Prepaid expense | 313,266 | 215,506 | |||||
| 4,212,476 | 3,392,304 | ||||||
| Property and equipment | 15,613,170 | 17,995,205 | |||||
| Goodwill | 203,477 | 203,477 | |||||
| Financial derivatives | — | 19,697 | |||||
| $ | 20,029,123 | $ | 21,610,683 | ||||
| Liabilities and Partners' Equity | |||||||
| Current liabilities: | |||||||
| Bank indebtedness | $ | 255,378 | $ | 317,193 | |||
| Accounts payable and accrued liabilities | 1,606,682 | 1,053,376 | |||||
| Distributions payable | 365,787 | 365,334 | |||||
| Note payable | 300,000 | 300,000 | |||||
| Current portion of long-term debt | 1,718,135 | 1,681,313 | |||||
| Current portion of capital lease obligation | 103,811 | 95,646 | |||||
| 4,349,793 | 3,812,862 | ||||||
| Long-term debt | 4,540,802 | 5,296,964 | |||||
| Obligation under capital lease | 4,351,847 | 4,430,759 | |||||
| Financial derivatives | 17,041 | — | |||||
| Future income taxes | 302,554 | 301,340 | |||||
| 13,562,037 | 13,841,925 | ||||||
| Partners' equity: | |||||||
| Limited partnership units | 9,082,330 | 9,068,408 | |||||
| Unit purchase loans receivable | (374,535) | (438,659) | |||||
| Contributed surplus | 478,048 | 470,613 | |||||
| Deficit | (2,718,757) | (1,331,604) | |||||
| 6,467,086 | 7,768,758 | ||||||
| $ | 20,029,123 | $ |
21,610,683 |
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|
|
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CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP
| Consolidated Statements of Operations - unaudited | |||||||||||||||
| Three Months | Three Months | Nine months | Nine months | ||||||||||||
| ended | ended | ended | ended | ||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||
| Revenue: | $ | 3,275,339 | $ | 2,544,596 | $ | 10,013,343 | $ | 9,763,440 | |||||||
| Expenses: | |||||||||||||||
| General and administrative | 399,836 | 301,872 | 1,144,771 | 925,681 | |||||||||||
| Interest on long term debt | 197,985 | 63,276 | 593,773 | 226,507 | |||||||||||
| Operating | 1,934,064 | 1,630,797 | 5,847,554 | 5,529,608 | |||||||||||
|
|
Amortization of property and equipment |
|
723,758 |
|
827,909 |
|
2,311,338 |
|
2,466,630 |
||||||
| Loss on disposal of property and equipment | 160,486 | 12,696 | 370,564 | 39,680 | |||||||||||
| Loss (gain) on derivatives | 16,144 | 10,418 | 36,738 | (11,306) | |||||||||||
| 3,432,273 | 2,846,968 | 10,304,738 | 9,176,800 | ||||||||||||
| (Loss) income before taxes | (156,934) | (302,372) | (291,395) | 586,640 | |||||||||||
| Future income taxes (recovery) | 1,264 | 153,974 | 1,214 | 118,837 | |||||||||||
| Net (loss) income | $ | (158,198) | $ | (456,346) | $ | (292,609) | $ | 467,803 | |||||||
| (Deficit) retained earnings, beginning of period |
|
(2,195,716) |
|
235,675 |
|
(1,331,604) |
|
700,466 |
|||||||
| Partner distributions declared | (364,843) | (699,978) | (1,094,544) | (2,088,918) | |||||||||||
| (Deficit), end of period | $ | (2,718,757) | $ | (920,649) | $ | (2,718,757) | $ | (920,649) | |||||||
| Net (loss) income per unit: | |||||||||||||||
| Basic | $ | (0.03) | $ | (0.08) | $ | (0.05) | $ | 0.08 | |||||||
| Diluted | $ | (0.03) | $ | (0.08) | $ | (0.05) | $ | 0.08 | |||||||
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
Wayne Wadley, President & CEO at (403) 850-4095 or by email at wwadley@cerflp.com or Ken Stephens CFO at (403) 298-8695 or by email at kstephens@cerflp.com.