CALGARY, Nov. 8, 2011 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced its financial results and operational highlights for the quarter ended September 30, 2011.
"We continue to see improvements in our construction and industrial equipment segment which are on a positive turnaround from the lows experienced in late 2009 through 2010," said Peter Lacey, President and CEO of Cervus. "Cervus' agricultural equipment segment is experiencing increases in revenues and profit over the prior year as most of the Company's primary operations were not affected by the wetter than normal conditions experienced in parts of Saskatchewan and Manitoba. In addition, increased commodity prices continue to have a positive impact on this segment."
Highlights for the Quarter:
- Gross revenue increased by $22.5 million or 14% to $186.9 million for the third quarter of 2011 over $164.4 million reported in the third quarter of 2010. Same store sales accounted for the entire increase.
- Net profit for the period increased by $1.3 million or 19% to $8.0 million for the third quarter of 2011 from $6.7 million reported in the third quarter of 2010.
- Basic earnings per share for the three month period ended September 30, 2011 increased to $0.56 per share or 17% from $0.48 per share for the same period of 2010.
- Same store revenues from the agricultural equipment segment and the construction and industrial equipment segment increased $12.4 million or 9.6% and $10.2 million or 37.2%, respectively, when compared with the same period in 2010.
Financial Highlights:
During the three month period ended September 30, 2011, revenue increased by $22.5 million ($12.3 million for the agricultural equipment segment and $10.2 million for the construction and industrial equipment segment) to $186.9 million from $164.4 million for the same period of 2010, an increase of 14%. Same store revenue increased $22.6 million or 14% ($12.4 million or 9.6% from the agricultural equipment segment and $10.2 million or 37.2% from the construction and industrial equipment segment).
For the three month period ended September 30, 2011, overall gross margin decreased slightly to 17.3% from 17.4% reported in the same period of 2010. The decrease was primarily a result of change in sales mix.
The increase in sales, combined with the marginal change in overall gross profit margins, resulted in an increase in our net profit for the third quarter of 2011 when compared with 2010. Selling, general and administrative expenditures remained relatively consistent as a percentage of sales during the third quarter of 2011 at 11.8% of gross revenue when compared with 11.3% for the same period of 2010.
As at September 30, 2011, Cervus had working capital of $73.7 million, including $22.8 million in cash and cash equivalents, up $5.7 million compared to $68.0 million at December 31, 2010.
Selected Quarterly Information
| $ thousands, except per share amounts | Three Months Ended September 30, 2011 | Three Months Ended September 30, 2010 | % change | Nine Months Ended September 30, 2011 | Nine Months Ended September 30, 2010 | % change | |
| Revenues | 186,878 | 164,461 | 13.6 | 418,242 | 359,589 | 16.3 | |
| Gross profit | 32,286 | 28,687 | 12.5 | 78,188 | 66,149 | 18.2 | |
| Gross margin | 17.3% | 17.4% | (0.6) | 18.7% | 18.4% | 1.6 | |
| Net profit | 8,025 | 6,773 | 18.5 | 13,601 | 9,414 | 44.5 | |
| Net profit attributable to shareholders | 8,193 | 6,753 | 21.3 | 14,048 | 9,394 | 49.5 | |
| Per share - Basic | 0.56 | 0.48 | 16.7 | 0.97 | 0.66 | 47.0 | |
| Per share - Diluted | 0.54 | 0.47 | 14.9 | 0.94 | 0.65 | 44.6 | |
| Cash provided by (used in) operating activities | 14,600 | 8,056 | 81.2 | 22,369 | 9,409 | 137.7 | |
| Per share - Basic | 1.00 | 0.57 | 75.4 | 1.54 | 0.66 | 133.3 | |
| EBITDA1 | 13,365 | 13,382 | (0.1) | 26,189 | 22,160 | 18.2 | |
| EBITDA margin1 | 7.2% | 8.1% | (11.1) | 6.3% | 6.2% | 1.6 | |
| Per share - basic | 0.91 | 0.94 | (3.2) | 1.81 | 1.56 | 16.0 | |
| Dividends declared to shareholders | 2,643 | 2,552 | 3.6 | 7,837 | 7,649 | 2.5 | |
| Per share | 0.18 | 0.18 | - | 0.54 | 0.54 | - | |
| Weighted average shares outstanding | |||||||
| Basic | 14,659 | 14,176 | 3.4 | 14,495 | 14,163 | 2.3 | |
| Diluted | 15,152 | 14,517 | 4.4 | 14,988 | 14,510 | 3.3 | |
| Actual shares outstanding | 14,686 | 14,178 | 3.6 | ||||
| Closing market price per share | 14.41 | 11.60 | 24.2 | ||||
| Total assets | 282,105 | 277,672 | 1.6 | ||||
| Long-term liabilities | 7,639 | 13,199 | (42.1) | ||||
| Total liabilities | 100,806 | 104,249 | (3.3) | ||||
| Shareholders' equity | 181,299 | 173,423 | 4.5 | ||||
| Net book value per share - diluted | 12.10 | 11.95 | 1.2 | ||||
Notes: (1) These financial measures are identified and defined under the section "Non-IFRS Financial Measures".
Conference Call Information
Cervus will host its third quarter 2011 results conference call on November 9, 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, November 16, 2011 at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 24215948 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".