News Feed Item

CERF INCORPORATED Announces Preliminary Unaudited Financial Results for the Year Ended December 31, 2013

CALGARY, ALBERTA -- (Marketwired) -- 04/09/14 -- Mr. Wayne Wadley, President of CERF Incorporated (TSX VENTURE:CFL) (the "Company" or "CERF"), is pleased to announce preliminary selected unaudited financial and operating results for the Company for the year ended December 31, 2013. The financial information contained herein is based on management's estimates and has not been approved by the Company's Audit Committee or Board of Directors, nor has it been audited or reviewed by the Company's Auditors.

Full details of the Company's financial results, in the form of the audited consolidated financial statements and notes thereto for the year ended December 31, 2013 and Management's Discussion and Analysis of the results are expected to be available on or about April 29, 2014 on SEDAR at www.sedar.com and on the Company's website at www.cerfcorp.com.

Selected Highlights of the year ended 2013 include:

--  Revenue increased 38% to $46,757,000 for the year ended December 31,
    2013 versus the year ended December 31, 2012; 
--  Net income increased 1,094% to $3,129,000 or $0.23 per share, basic in
    2013 versus $262,000 or $0.02 per share in 2012; 
--  Adjusted EBITDA increased 64% to $13,027,000 for the year ended December
    31, 2013 versus $7,960,000 for 2012. Further, EBITDA per share, basic in
    2013 was $0.96 versus $0.76 in 2012; 
--  The Company paid dividends of $0.24 per share to shareholders in 2013
    while reducing the annualized payout ratio to 52% from an annualized
    payout ratio of 76% in 2012; 
--  Adjusted free cash flow generated during 2013 was $6,521,000 compared to
    adjusted free cash flow of $3,214,000 in 2012; 
--  Long term debt was reduced by $7,789,000; and 
--  Debt to equity was improved to a ratio of 0.95 to 1.00 from a 2012 debt
    to equity ratio of 2.05 to 1.00. 

Summary of fourth Quarter and Year to Date Unaudited Consolidated Financial Results:

In C$,000's                                                                 
 and per            Q4      Q4       $    %      YTD     YTD       $       %
 shares data      2013    2012  change          2013    2012  change        
Revenue         12,522  11,252   1,270   11%  46,757  33,770  12,987     38%
 Expenses        9,260   8,346     914   11%  34,687  27,159   7,528     28%
Gross Margin %     26%     26%            0%     26%     20%              6%
Net Income       1,005     669     336   50%   3,129     262   2,867  1,094%
Net income per                                                              
 share, basic     0.06    0.06       -    0%    0.23    0.02    0.21   1050%
 EBITDA          3,629   3,372     257    8%  13,027   7,960   5,067     64%
Adjusted Free                                                               
 Cash Flow       2,006   1,937      69    4%   6,521   3,214   3,307    103%
Trailing 12                                                                 
 Month payout                                                               
 ratio                                           52%     76%           (24)%
Dividend per                                                                
 share            0.06    0.06       -    0%    0.24    0.24       -      0%

Mr. Wadley, President & CEO makes the following comments:

"In early March, Statistics Canada filed their employment data that showed that Alberta now accounts for 87% of all the jobs created in the country year over year. Alberta added 82,300 jobs in 2013 and the unemployment rate has declined from 4.6% in 2012 to 4.3% in 2013. Alberta's 2013 GDP was 3.3% with population growth of 3.5% and Alberta is expected to reach 4.3 million persons by 2016. This heightened level of economic activity in the Province throughout 2013 is reflected in our record 2013 year end results.

Looking ahead, the Alberta Government's 2014 Capital Plan in their recently announced budget predicted that their infrastructure spending is expected to be $19.2 billion over the next three years with $5.1 billion for municipal infrastructure, $5 billion for provincial highways, $2.6 billion for health care facilities and $2.5 billion for schools. According to the Statistics Canada January 2014 report, there are over $1 billion of residential and non-residential building permits issued in the Edmonton and Calgary metropolitan areas alone.

The high level of economic activity in Alberta and specifically in the Edmonton area market where CERF operates bodes well for the continued work load and the growth from our diverse customer base. Locally, there are eleven major strategic projects confirmed ranging from the new NHL arena project with an estimated $6 billion of redevelopment surrounding it, downtown arts area development, southeast and northwest light rail transit expansion, an energy and technology park in the south, and the former Municipal Airport redevelopment project to name a few. Our market research indicates that we need to aggressively bolster our construction rental fleet to meet the future demand of our customers. This is why we recently added an incremental $3.6 million (almost doubling) to our original growth capital budget for 2014. The bulk of this capital will be dedicated to expanding 4-Way's equipment fleet. Our total capital investment this year is expected to be $11.3 million, of which $4.0 million will be maintenance capital, with the remaining $7.3 million will be growth capital.

Increased economic activity in Alberta creates the potential for increased placement of special waste (impacted soils) and construction debris into our managed landfill facilities, thereby generating more revenue and profit for our waste and environmental division. We have added three facility management contract extensions in this division for various periods up to five years, with combined projected future revenue of approximately $23 million over the extension period.

The cold winter in Alberta and North America has had positive effects on CERF. Firstly, the local demand for our construction heater fleet has been exceptional. At times the heater fleet was fully utilized. Heat equipment accounts for over 20% of our rental fleet. Increased utilization translates into increased profitability. Secondly, and perhaps more importantly from a long term perspective, natural gas storage inventories have declined significantly. At the end of February 2014, United States natural gas storage levels were 40% below last year and 35% below the five year average. Alberta natural gas storage levels have also dropped dramatically and have caused the AECO spot price to jump well beyond $4.30/Gigajoule from the $3.00/Gigajoule range over that past couple of years. Permitting for the construction of liquefied natural gas ("LNG") plants on the west coast of Canada has reached 14.6 billion cubic feet/day ("bcf/d") of exports to primarily Southeast Asian markets. For perspective, Canada's total current production is 12.7 bcf/d. The National Energy Board on March 20, 2014 granted approval to export up to a further 1.55 bcf/d to the United States for LNG export. This diversification of markets bodes well for increasing demand for Canadian natural gas and a more sustainable pricing regime.

The WTI oil price continues to hover around the $US99/barrel range and importantly for Canadian producers; the differential of the Canadian dollar has fallen to about $0.90 US. Canadian oil and natural gas exports are priced in US dollars so there is currently a 10% premium paid on those commodities. With rising prices, increased demand and a favorable currency differential, oil and natural gas producers should have increased revenues and cash flows for development in 2014 and beyond. As a result, we should see increased drilling and completion activity which would positively impact CERF oilfield rentals."

CERF Incorporated trades on the TSX Venture Exchange under the symbol "CFL" and currently has 16,134,441 shares issued and outstanding.

Forward-Looking Statements

Certain statements included or incorporated by reference in this press release constitute forward-looking statements or forward looking-information. Forward-looking statements or information may contain statements with the words "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "project", "would have realized', "may have been" or similar words suggesting future outcomes or expectations. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements because the Company can give no assurance that such statements will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties, such as the continued growth of Alberta economy resulting in additional revenues for the Company and that the increase in oil and natural gas prices will lead to increased drilling activity and that increased drilling activity will result in increased oilfield and construction rental revenue for CERF and that the increase in capital spending on CERF's rental fleets will result in increased rental revenues in the future. These uncertainties could cause actual results to differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. Such risks and uncertainties include, but are not limited to: general economic conditions, industry conditions, weather conditions, commodity prices, currency fluctuations and competition from other equipment rental companies. The forward-looking statements or information contained herein are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless it is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Governments around the world are adopting Safe Harbor privacy provisions to protect customer data from leaving sovereign territories. Increasingly, global companies are required to create new instances of their server clusters in multiple countries to keep abreast of these new Safe Harbor laws. Is it worth it? In his session at 19th Cloud Expo, Adam Rogers, Managing Director of Anexia, Inc., will discuss how to keep your data legal and still stay in business.
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Successful transition from traditional IT to cloud computing requires three key ingredients: an IT architecture that allows companies to extend their internal best practices to the cloud, a cost point that allows economies of scale, and automated processes that manage risk exposure and maintain regulatory compliance with industry regulations (FFIEC, PCI-DSS, HIPAA, FISMA). The unique combination of VMware, the IBM Cloud, and Cloud Raxak, a 2016 Gartner Cool Vendor in IT Automation, provides a co...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Although it has gained significant traction in the consumer space, IoT is still in the early stages of adoption in enterprises environments. However, many companies are working on initiatives like Industry 4.0 that includes IoT as one of the key disruptive technologies expected to reshape businesses of tomorrow. The key challenges will be availability, robustness and reliability of networks that connect devices in a business environment. Software Defined Wide Area Network (SD-WAN) is expected to...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...