Click here to close now.




















Welcome!

News Feed Item

CERF Incorporated Announces 2014 Second Quarter Results

CERF Reports Revenue of $10 million, Adjusted EBITDA(1) of $2.6 million and Net Income of $257 thousand for Q2 2014

CALGARY, ALBERTA -- (Marketwired) -- 08/18/14 -- 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 June 30, 2014.

"On the whole, CERF delivered a strong second quarter, increasing net income by more than $390 thousand, Adjusted EBITDA by 46%, and again reported revenues in excess of $10 million," stated Wayne Wadley, President and CEO. "Despite several construction related project delays that impacted our 4-Way business, we are very pleased to announce the eighth consecutive quarter in which CERF has delivered results exceeding those reported a year earlier."

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 June 30, 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 Q2 2014 Financial Highlights:


--  Net income increased to $257,000 or $0.02 per basic share in the quarter
    versus a net loss of $134,000 or ($0.01) per share during the prior
    year's quarter;
--  Adjusted EBITDA increased 46% to $2,602,000 for the quarter ended June
    30, 2014, compared to $1,784,000 for Q2 2013.
--  EBITDA per basic share, increased 7% to $0.16 in the second quarter
    versus $0.15 in 2013;
--  The Company paid dividends of $0.06 per share to shareholders in Q2 2014
    while maintaining the annualized payout ratio to 65% from an annualized
    payout ratio of 89% as at Q1 2013; and
--  During the second quarter, 252,900 warrants were executed resulting in
    proceeds of $796,000 and the exercise of 177,685 agent options resulted
    in proceeds of another $478,000.

Corporate Highlights:

CORPORATE


--  As at August 13, 2014, 2,264,636 warrants have been exercised for total
    proceeds of $7.1 million and 245,006 agent options have been exercised
    for proceeds of $662,000.

EQUIPMENT RENTAL, SALES AND SERVICE ACQUISITIONS


--  On May 28, 2014, CERF enhanced its capability to provide equipment used
    in directional drilling applications with the acquisition of the
    business and assets of Empire Tool Inc. ("Empire"), a privately owned
    oilfield service and rental business for $9.2 million or approximately
    3.3 times Empire's 2013 adjusted and normalized EBITDA.
--  On June 26, 2014, CERF announced the proposed strategic business
    combination with Winalta Inc. ("Winalta")(TSXV: WTA), a publically traded
    oilfield accommodation rentals business. With an implied purchase price
    of approximately $65 million including net debt, CERF is acquiring
    Winalta at approximately 4.8 times EV / 2014E EBITDA creating some of
    the following benefits:
    --  increased EBITDA margins;
    --  reduced cash flow volatility due to the contract backed nature of
        Winalta's business;
    --  expanded geographic positioning;
    --  a more diverse suite of rental assets; and
    --  greater overall market penetration amongst E&P clients.

"The additions of Empire and Winalta greatly enhance our size and scope in the oilfield rental and services space," stated Mr. Wadley. "Both acquisitions complement and significantly grow our equipment fleet, enabling us to service a much broader customer base. Subject to shareholder approval on August 27, 2014, we look forward to welcoming the entire Winalta team to join us in continuing to expand our business and add value for our shareholders."

WASTE MANAGEMENT


--  Margins for MCL were $1,208,000, an increase of 770% when compared those
    delivered in the prior year's quarter. Improvements are a result of
    increased impacted soil volumes, operational productivity and the
    positive result of initiatives to improve the quality of revenue and
    reduce expenses which were implemented in the previous quarter.

Summary of Second Quarter Consolidated Financial Results:


----------------------------------------------------------------------------
                                          Three months ended June 30,
(in $,000s except percentages and
 per share data)                         2014      2013  $ Change         %
----------------------------------------------------------------------------
Revenue                                10,014    10,065       -51        -1%
Direct Expenses                         7,661     8,301      -640        -8%
Gross margin                            2,353     1,764       589        33%
Net income (loss)                         257      -134       391         -
Net income (loss) per basic share        0.02     -0.01      0.03         -
Adjusted EBITDA(1)                      2,602     1,784       818        46%
Adjusted Free Cash Flow                   667      -963     1,630         -
Annualized payout ratio                    65%       89%      -24%        -
Dividends per basic share               $0.06     $0.06         -         -
----------------------------------------------------------------------------

(1) See Financial Measures Reconciliations on page 4 of CERF's Second Quarter 2014 MD&A

Summarized financial results for the three months ended June 30, 2014 follow:

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(Unaudited) IN THOUSANDS OF CANADIAN DOLLARS


                                                               December 31,
                                               June 30, 2014           2013
----------------------------------------------------------------------------
Assets
Current assetsCash                                         -            557
  Accounts receivable                                  8,369          8,433
  Inventory                                            2,261          1,561
  Income taxes recoverable                                21              -
  Prepaid expenses and deposits                          519            397
----------------------------------------------------------------------------
                                                      11,170         10,948
----------------------------------------------------------------------------

Non-current assets
Long-term receivable                                     122            238
  Property and equipment                              44,434         36,890
  Intangibles and goodwill                            14,271         10,714
----------------------------------------------------------------------------
                                                      58,827         47,842
----------------------------------------------------------------------------
Total assets                                          69,997         58,790
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liabilities and Shareholders' Equity
Current liabilities:
  Bank indebtedness                                      957              -
  Accounts payable and accrued liabilities             4,837          5,339
  Dividends payable                                    1,055            963
  Income taxes payable                                     -            559
  Current portion of long-term debt                    2,700          1,502
  Current portion of finance leases                      282            314
----------------------------------------------------------------------------
                                                       9,831          8,677
----------------------------------------------------------------------------

Non-current liabilities:
  Long-term debt                                      20,475         14,801
  Obligation under finance leases                      3,980          4,106
  Deferred income taxes                                2,286          2,115
----------------------------------------------------------------------------
                                                      26,741         21,022
----------------------------------------------------------------------------

Total liabilities                                     36,572         29,699
----------------------------------------------------------------------------
Shareholders' equity
  Share capital                                       37,510         32,894
  Warrants                                               787            835
  Share purchase loans receivable                        (93)          (148)
  Contributed surplus                                    732            744
  Deficit                                             (5,511)        (5,234)
----------------------------------------------------------------------------
                                                      33,425         29,091
----------------------------------------------------------------------------
Total liabilities and shareholders' equity            69,997         58,790
----------------------------------------------------------------------------
----------------------------------------------------------------------------

See accompanying notes to the Condensed Consolidated Interim Financial Statements

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited) IN THOUSANDS OF CANADIAN DOLLARS


----------------------------------------------------------------------------
                                   Three months ended      Six months ended
                                  June 30,   June 30,   June 30,   June 30,
                                      2014       2013       2014       2013
----------------------------------------------------------------------------
Revenues                            10,014     10,065     22,439     21,538
----------------------------------------------------------------------------
Direct expenses
  Direct operating costs             5,166      6,535     10,627     12,026
  Cost of sales of equipment,
   fuel and parts                      941        471      2,416      1,363
  Depreciation of equipment          1,554      1,295      2,945      2,705
  --------------------------------------------------------------------------
                                     7,661      8,301     15,988     16,094
  --------------------------------------------------------------------------
  Gross margin                       2,353      1,764      6,451      5,444
  --------------------------------------------------------------------------
Other expenses
  General and administrative         1,324      1,218      2,808      2,592
  Depreciation of other property
   and equipment                        42         26         73         53
  Amortization of intangible
   assets                              235        251        485        502
  Business acquisition expenses         34          -         34         10
  Finance costs                        339        446        655        870
  --------------------------------------------------------------------------
                                     1,974      1,941      4,055      4,027
----------------------------------------------------------------------------
Income (loss) before income
 taxes                                 379       (177)     2,396      1,417
Income taxes (recovery)
Current                               (179)       (37)       452        540
Deferred                               301         (6)       198        (99)
----------------------------------------------------------------------------
                                       122        (43)       650        441
----------------------------------------------------------------------------
Net income (loss) and
 comprehensive income
for the period                         257       (134)     1,746        976
----------------------------------------------------------------------------
Net income (loss) per share
  Basic                               0.02      (0.01)      0.11       0.08
  Diluted                             0.02      (0.01)      0.11       0.08

Weighted average number of
 shares outstanding
  Basic                         16,629,850 11,671,096 16,362,058 11,671,096
  Diluted                       16,721,603 11,671,096 16,399,818 11,671,096

See accompanying notes to the Condensed Consolidated Interim Financial Statements

About CERF Incorporated

CERF Incorporated is a Canadian public corporation engaged in the rental, sale and service of industrial and construction equipment and waste management and environmental services. 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 TSXV 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.

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
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.
Palerra, the cloud security automation company, announced enhanced support for Amazon AWS, allowing IT security and DevOps teams to automate activity and configuration monitoring, anomaly detection, and orchestrated remediation, thereby meeting compliance mandates within complex infrastructure deployments. "Monitoring and threat detection for AWS is a non-trivial task. While Amazon's flexible environment facilitates successful DevOps implementations, it adds another layer, which can become a ...
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...
"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.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Delphix, the market leader in Data as a Service (DaaS), has been announced winner of the DevOps Solution Award at the prestigious Computing Vendor Excellence Awards in London. The awards celebrate the achievements of the technology vendors and service providers that are leading the field of enterprise IT. Delphix was recognised as the vendor demonstrating the most effective support of DevOps culture for its ability to improve time to market and collaboration between teams.
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
"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.
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...
Sysdig has announced two significant milestones in its mission to bring infrastructure and application monitoring to the world of containers and microservices: a $10.7 million Series A funding led by Accel and Bain Capital Ventures (BCV); and the general availability of Sysdig Cloud, the first monitoring, alerting, and troubleshooting platform specializing in container visibility, which is already used by more than 30 enterprise customers. The funding will be used to drive adoption of Sysdig Clo...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
"We do data integration for B2B also application to application, and we do data management and enable Big Data," explained Pat Adamiak, Vice President, Product Marketing at Liaison Technologies, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.