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
[email protected]

CERF Incorporated
Ken Stephens
Vice President Finance & CFO
(780) 410-2998 ext 371
[email protected]
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
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
As more and more companies are making the shift from on-premises to public cloud, the standard approach to DevOps is evolving. From encryption, compliance and regulations like GDPR, security in the cloud has become a hot topic. Many DevOps-focused companies have hired dedicated staff to fulfill these requirements, often creating further siloes, complexity and cost. This session aims to highlight existing DevOps cultural approaches, tooling and how security can be wrapped in every facet of the bu...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
Docker containers have brought great opportunities to shorten the deployment process through continuous integration and the delivery of applications and microservices. This applies equally to enterprise data centers as well as the cloud. In his session at 20th Cloud Expo, Jari Kolehmainen, founder and CTO of Kontena, discussed solutions and benefits of a deeply integrated deployment pipeline using technologies such as container management platforms, Docker containers, and the drone.io Cl tool. H...
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
Connecting to major cloud service providers is becoming central to doing business. But your cloud provider’s performance is only as good as your connectivity solution. Massive Networks will place you in the driver's seat by exposing how you can extend your LAN from any location to include any cloud platform through an advanced high-performance connection that is secure and dedicated to your business-critical data. In his session at 21st Cloud Expo, Paul Mako, CEO & CIO of Massive Networks, wil...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.