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 work around really protecting the confidentiality of information, and by doing so we've developed implementations of encryption through a patented process that is known as superencipherment," explained Richard Blech, CEO of Secure Channels Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
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, provided 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 oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.