Welcome!

News Feed Item

CERF Incorporated Announces Solid 2014 First Quarter Results

CERF Reports Revenue of $12 million, Adjusted EBITDA of $4 million and Net Income of $1.5 million for Q1 2014

CALGARY, ALBERTA -- (Marketwired) -- 05/15/14 -- Mr. Wayne Wadley, President of CERF Incorporated (the "Company" or "CERF") (TSX VENTURE:CFL) is pleased to announce financial and operating results for the Company for the three months ended March 31, 2014.

"CERF had a successful start to 2014, and we are very pleased to announce the seventh consecutive quarter in which CERF has delivered results that exceeded those reported a year earlier," stated Mr. Wadley. " In the first quarter we recorded meaningful increases in our net income, and adjusted free cash flow coupled with a significant decrease in our payout ratio were driven by higher demand for service in our rental equipment division."

Full details of the Company's financial results, in the form of the unaudited, condensed, consolidated interim financial statements and notes for the three months ended March 31, 2014 and Management's Discussion and Analysis of the results are available on SEDAR at www.sedar.com and on the Company's website at www.cerfcorp.com.

Selected Financial Highlights for Q1 2014 Include:


--  Revenue increased 9% to $12,424,000 for the quarter versus 11,444,000 in
    the quarter ended March 31, 2013; 
--  Net income increased 34% to $1,488,000 share in Q1 2014 versus
    $1,110,000 in Q1 2013; 
--  Net Income per share decreased 3% to $0.092 per share in Q1 2014 from
    $0.095 per share in Q1 2013 despite a 38% increase in the number of
    shares outstanding. 
--  Adjusted EBITDA increased 1% to $4,026,000 for the first quarter of 2014
    versus $4,001,000 for 2013; 
--  The Company paid dividends of $0.06 per share to shareholders in 2014
    while reducing the annualized payout ratio to 44% from an annualized
    payout ratio of 89% as at Q1 2013; and 
--  Adjusted free cash flow generated during 2014 was $724,000 compared to
    adjusted free cash flow of $(963,000) in Q1 2013; 

Summary of the First Quarter 2014 Consolidated Financial Results:


---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                 Three months  Three months                
In C$,000's except percentages    ended March   ended March       $        
and per share data                   31, 2014      31, 2013  change       %
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                           
Revenue                                12,424        11,444     980      9%
                                                                           
Direct Expenses                         8,326         7,763     563      7%
                                                                           
Gross Margin %                            33%           32%              1%
                                                                           
Net Income                              1,488         1,110     378     34%
                                                                           
Net income per share, basic             0.092         0.095 (0.003)    (3)%
                                                                           
Adjusted EBITDA                         4,026         4,001      25      1%
                                                                           
Adjusted Free Cash Flow                   724         (963)   1,687    175%
                                                                           
Trailing 12 Month payout ratio            44%           89%           (45)%
                                                                           
Dividend per share                       0.06          0.06       -      0%
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Summarized financial results for the three months ended March 31, 2014 follow:

CERF INCORPORATED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

IN THOUSANDS OF CANADIAN DOLLARS


Unaudited                                March 31, 2014   December 31, 2013
---------------------------------------------------------------------------
Assets                                                                     
Current assets:                                                            
  Cash                                              176                 557
  Accounts receivable                             9,182               8,433
  Inventory                                       1,574               1,561
  Income taxes recoverable                            -                   -
  Prepaid expenses and deposits                     364                 397
---------------------------------------------------------------------------
                                                 11,296              10,948
---------------------------------------------------------------------------
Non-current assets:                                                        
  Long term receivable                              177                 238
  Property and equipment                         38,010              36,890
  Intangibles and goodwill                       10,463              10,714
---------------------------------------------------------------------------
                                                 48,650              47,842
---------------------------------------------------------------------------
Total assets                                     59,946              58,790
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Liabilities and Shareholders'                                              
 Equity                                                                    
Current liabilities:                                                       
  Bank indebtedness                                   -                   -
  Accounts payable and accrued                                             
   liabilities                                    5,159               5,339
  Dividends payable                                 968                 963
  Income taxes payable                              260                 559
  Current portion of long-term debt               1,502               1,502
  Current portion of finance leases                 290                 314
---------------------------------------------------------------------------
                                                  8,179               8,677
---------------------------------------------------------------------------
Non-current liabilities:                                                   
  Long-term debt                                 15,871              14,801
  Obligation under finance leases                 4,042               4,106
  Deferred income taxes                           2,011               2,115
---------------------------------------------------------------------------
                                                 21,924              21,022
---------------------------------------------------------------------------
                                                                           
Total liabilities                                30,102              29,699
---------------------------------------------------------------------------
                                                                           
                                                                           
Shareholders' equity                                                       
  Share capital                                  33,106              32,894
  Warrants                                          835                 835
  Share purchase loans receivable                 (148)               (148)
  Contributed surplus                               765                 744
  Deficit                                       (4,714)             (5,234)
---------------------------------------------------------------------------
                                                 29,844              29,091
---------------------------------------------------------------------------
Total liabilities and shareholders'                                        
 equity                                          59,946              58,790
---------------------------------------------------------------------------
---------------------------------------------------------------------------

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME AND COMPREHENSIVE INCOME

IN THOUSANDS OF CANADIAN DOLLARS


                                     Three months ended  Three months ended
(unaudited)                              March 31, 2014          March 31, 
                                                                       2013
---------------------------------------------------------------------------
Revenues                                         12,424              11,444
---------------------------------------------------------------------------
                                                                           
Direct expenses                                                            
  Direct operating costs                          5,460               5,491
  Cost of sales of equipment, fuel                                         
   and parts                                      1,475                 862
  Depreciation of equipment                       1,391               1,410
---------------------------------------------------------------------------
                                                  8,326               7,763
---------------------------------------------------------------------------
Gross margin                                      4,098               3,681
---------------------------------------------------------------------------
Operating expenses                                                         
  General and administrative                      1,484               1,374
  Depreciation of other property                     31                  28
   and equipment                                                           
  Amortization of intangible assets                 251                 251
  Business acquisition expenses                       -                  10
---------------------------------------------------------------------------
                                                  1,766               1,663
---------------------------------------------------------------------------
Other expenses                                                             
  Finance costs                                     316                 424
---------------------------------------------------------------------------
                                                                           
Income before income taxes                        2,016               1,594
                                                                           
Income taxes                                                               
  Current                                           631                 577
  Deferred                                        (103)                (93)
---------------------------------------------------------------------------
                                                    528                 484
---------------------------------------------------------------------------
Net income and comprehensive income                                        
 for the period                                   1,488               1,110
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                           
Net income per share                                                       
  Basic                                          $0.092             $ 0.095
  Diluted                                        $0.092             $ 0.095

About CERF Incorporated

CERF is in the equipment rental business (the "Equipment Rental Segment") and the waste management business (the "Waste Management Segment") in Alberta. The Equipment Rental Segment includes the rental of residential, commercial and industrial construction-related equipment, including sales and service of equipment. It also includes the rental and sale of equipment to the drilling and service sectors of the oil and natural gas industry. The Waste Management Segment consists of complete waste facility management (six landfill sites in central Alberta) including waste facility design and construction services, recycling management and collection services, and consulting services. The Waste Management Segment also consists of waste removal and disposal from commercial, industrial and residential customers. CERF Incorporated trades on the TSX Venture Exchange under the symbol "CFL".

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.

Contacts:
CERF Incorporated
Wayne Wadley
President and CEO
(403) 850-4095
wwadley@cerfcorp.com

CERF Incorporated
Ken Stephens
Vice President Finance & CFO
(780) 410-2998 ext 371
kstephens@cerfcorp.com
www.cerfcorp.com

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
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
SYS-CON Events announced today that Hitrons Solutions 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. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
In his session at 20th Cloud Expo, Chris Carter, CEO of Approyo, will discuss the basic set up and solution for an SAP solution in the cloud and what it means to the viability of your company. Chris Carter is CEO of Approyo. He works with business around the globe, to assist them in their journey to the usage of Big Data in the forms of Hadoop (Cloudera and Hortonwork's) and SAP HANA. At Approyo, we support firms who are looking for knowledge to grow through current business process, where even ...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products and services around this fundamentally unique approach to delivering complete software release management solutions. With a combination of Addteq's services and our extensive list of partners,...
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.