|By Marketwired .||
|April 9, 2014 06:30 AM EDT||
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 except percentages 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% Direct 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% Adjusted 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.
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.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Jul. 29, 2015 09:00 AM EDT
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Jul. 29, 2015 07:30 AM EDT Reads: 229
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Jul. 29, 2015 07:00 AM EDT Reads: 176
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Jul. 29, 2015 06:00 AM EDT Reads: 1,661
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
Jul. 29, 2015 04:00 AM EDT Reads: 1,721
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Jul. 28, 2015 11:00 PM EDT Reads: 1,352
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 28, 2015 10:45 PM EDT Reads: 1,008
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 28, 2015 08:00 PM EDT Reads: 586
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Jul. 28, 2015 07:15 PM EDT Reads: 715
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Jul. 28, 2015 06:30 PM EDT Reads: 1,371
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Jul. 28, 2015 05:30 PM EDT Reads: 254
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
Jul. 28, 2015 04:30 PM EDT Reads: 1,752
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
Jul. 28, 2015 04:00 PM EDT Reads: 2,184
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Jul. 28, 2015 04:00 PM EDT Reads: 219
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at @DevOpsSummit, Haseeb Budhani, CEO and Co-founder of Soha, shared five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the friction an...
Jul. 28, 2015 03:30 PM EDT Reads: 487