CALGARY, Aug. 9, 2011 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced its financial results and operational highlights for the quarter ended June 30, 2011.
"Our construction and industrial equipment segment has improved dramatically during the second quarter of 2011 when compared to the same period of 2010. Sales revenue and profit increases have been driven by increased activity in the oil and gas sector," said Peter Lacey, President and CEO of Cervus. "This activity, in addition to positive market indicators in the agricultural industry, suggests favourable conditions for continued growth in both our operating segments for the remainder of 2011."
Highlights for the Quarter:
- Gross revenue increased by $19.2 million or by 15% to $147.1 million for the second quarter of 2011 over $127.9 million reported in the second quarter of 2010. Same store sales accounted for $13.5 million or 10.5% of the increase.
- Net profit for the period increased by $2.4 million or 76% to $5.7 million for the second quarter of 2011 from $3.3 million reported in the second quarter of 2010.
- EBITDA increased by $3.1 million or 41% to $10.7 million in the second quarter of 2011 from $7.6 million reported in the same period of 2010.
- Cervus ranked 324th out of 1000 in The Globe and Mail's Top 1000 which ranks Canadian companies based on profit.
- Cervus ranked 434th out of 500 in the Financial Post Magazine's 2011 listing of Canada's 500 Largest Corporations 2011 based on gross revenue.
Financial Highlights:
During the three month period ended June 30, 2011, revenue increased by $19.2 million ($11.6 million for the agricultural equipment segment and $7.6 million for the construction and industrial equipment segment) to $147.1 million from $127.9 million, an increase of 15.0%. Same store revenue increased $13.5 million or 10.5%. The agricultural equipment segment reported an increase in gross revenue of $11.6 million (same store $6.0 million or 5.7%) and the construction and industrial equipment segment reported an increase in gross revenues of $7.5 million or 26.0%.
For the three month period ended June 30, 2011, overall gross margin increased to 18.9% from 17.3% reported in the same period of 2010, a 1.6 basis point increase. This increase was primarily led by an increase in gross profit margin being on used equipment sales. Used equipment margins were lower in 2010 due to used equipment sent to auction.
The increase in sales, combined with an overall increase in gross profit margins, resulted in an increase in net profit. Selling, general and administrative expenditures remained consistent as a percentage of sales during the second quarter of 2011 when compared to the same period of 2010.
| Selected Quarterly Information | |||||||
| $ thousands, except per share amounts | Three Months Ended June 30, 2011 | Three Months Ended June 30, 2010 | % change | Six Months Ended June 30, 2011 | Six Months Ended June 30, 2010 | % change | |
| Revenues | 147,091 | 127,927 | 15.0 | 231,364 | 195,128 | 18.5 | |
| Gross profit | 27,808 | 22,190 | 25.3 | 45,903 | 37,462 | 22.5 | |
| Gross margin | 18.9% | 17.3% | 9.2 | 19.8% | 19.2% | 3.1 | |
| Net profit | 5,730 | 3,254 | 76.1 | 5,576 | 2,641 | 111.1 | |
| Net profit attributable to shareholders | 5,912 | 3,254 | 81.7 | 5,855 | 2,641 | 121.7 | |
| Per share - Basic | 0.40 | 0.23 | 73.9 | 0.39 | 0.19 | 115.8 | |
| Per share - Diluted | 0.39 | 0.22 | 77.2 | 0.38 | 0.18 | 116.7 | |
| Cash provided by (used in) operating activities | 7,243 | 4,166 | 73.9 | 7,768 | 1,352 | 474.6 | |
| Per share - Basic | 0.50 | 0.29 | 72.4 | 0.54 | 0.10 | 440.0 | |
| EBITDA1 | 10,687 | 7,561 | 41.3 | 12,824 | 8,761 | 46.4 | |
| EBITDA margin1 | 7.3% | 5.9% | 23.7 | 5.5% | 4.5% | 22.2 | |
| Per share - basic | 0.73 | 0.53 | 37.7 | 0.89 | 0.62 | 43.5 | |
| Dividends declared to shareholders | 2,637 | 2,550 | 3.4 | 5,194 | 5,097 | 1.9 | |
| Per share | 0.18 | 0.18 | - | 0.36 | 0.36 | - | |
| Weighted average shares outstanding | |||||||
| Basic | 14,618 | 14,162 | 3.2 | 14,410 | 14,156 | 1.8 | |
| Diluted | 15,074 | 14,504 | 3.9 | 14,865 | 14,500 | 2.5 | |
| Actual shares outstanding | 14,649 | 14,164 | 3.4 | ||||
| Closing market price per share | 17.00 | 10.65 | 59.6 | ||||
| Total assets | 278,407 | 260,733 | 6.8 | ||||
| Long-term liabilities | 7,767 | 10,767 | (27.9) | ||||
| Total liabilities | 103,899 | 93,737 | 10.8 | ||||
| Shareholders' equity | 174,933 | 166,996 | 4.7 | ||||
| Net book value per share - diluted | 11.76 | 11.52 | 2.1 | ||||
Notes: (1) These financial measures are identified and defined under the section "Non-IFRS Financial Measures".
Conference Call Information
Cervus will host its second quarter 2011 results conference call on August 10, 2011 at 10:00 a.m. Eastern Time. Interested parties may access the conference call by dialling (888) 231-8191 (domestic) or (647) 427-7450 (international). The conference call will be archived for replay until Wednesday, August 17, 2011 at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 86787944 followed by the number sign.
About Cervus Equipment Corporation
Cervus acquires and manages authorized agricultural, commercial and industrial equipment dealerships in Western Canada through 30 dealership locations in Alberta, Saskatchewan and Manitoba. Cervus holds an approximate 60% equity interest in Agriturf Limited, a New Zealand-based corporation that offers authorized John Deere equipment, parts and service in the Manawatu, Rotorua, Hawke's Bay and Taranaki regions. The primary equipment brands represented by Cervus include John Deere agricultural equipment, Bobcat and JCB construction equipment, and Clark, Sellick, Nissan and Doosan material handling equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".