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
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
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).
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading the...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
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...
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
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.
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.