TSX Venture Symbol: CFL.UN
CALGARY, May 29 /CNW/ - Mr. Wayne Wadley, president of CERF GP Corp., the general partner of Canadian Equipment Rental Fund limited Partnership ("CERF"), is pleased to announce the results for the first quarter ended March 31, 2007.
Quarter Highlights Include (compared with last year's first quarter):
- Revenues of $4,318,358 representing an increase by 86%,
- Earnings of $1,504,621 representing an increase of 121%,
- Net income per unit increase to $0.29 representing an increase of
38%,
- Total assets increased to $14,767,848 representing an increase of
105%.
Mr. Wadley comments, "It is my pleasure to present Canadian Equipment Rental Fund Limited Partnership ("CERF") results for the three months ending March 31, 2007. Once again, the partnership reached record breaking sales of $4,318,358 for the period representing an 86% increase in gross revenues over the same period last year. Net income for the quarter was $ 0.29 per unit compared to $0.21 for the same period last year. Increases in gross revenues are a result of several factors including the additional private placement financing of $4 million raised in October. This funding was immediately invested in equipment needed to meet customer needs during our recently developed peak period of the year. With record snow falls in February and March, the winter season continued into spring prolonging the demand for typical winter construction equipment. Equipment sales were once again strong as customers prepared for another busy year in the excavating, compaction, concrete and finishing industries.
For the second quarter of 2007, revenues are expected to remain strong as most contractors predict no slowing in the pace leading into the spring and summer construction seasons. High demand is expected in particular for air compressors, forklifts, telehandlers and skidsteer loaders and their accessories; all areas of the fleet we have been expanding in for some time. New equipment sales continue at fervent rate as contractors plan for summer and fall projects.
Management also continues to be very optimistic for the balance of 2007 and beyond as the economy in northern Alberta continues to be robust. Edmonton and area continues to see exceptional year over year growth, high employment rates and personal prosperity. Although housing starts in the City of Edmonton are expected to decline marginally in 2007, they are still expected to be above 10,000 units per year for the rest of the decade which bodes well for our homebuilding customers. Once again, in our backyard of Strathcona County, CERF has and will continue to reap spin-offs from existing and new mega oil upgrader projects, as well as local refinery expansions. These upgraders have received approval for development representing total capital expenditures of over $16 billion. Many of our customers will be involved in these projects as well as in projects in Fort McMurray region and the NWT. As we continue to diversify our equipment fleet base, we will see more of our revenues coming directly and indirectly from these projects as well as the Edmonton region's commercial and home building industries. Other sectors that we service, including sandblasting, refractory, industrial and commercial construction, all continue to report high demand for their services and in turn, demand for our equipment to complete their projects."
CERF LP is an Alberta limited partnership engaged in the rental, sale and service of industrial and construction equipment. CERF LP trades on the TSX Venture Exchange under the symbol "CFL.UN" and currently has 5,166,095 units issued and outstanding.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP
Balance Sheets (unaudited)
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March 31, December 31,
2007 2006
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Assets
Current assets:
Cash $ 809,073 $ -
Accounts receivable 4,222,651 3,581,326
Inventory and other 395,636 452,601
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5,427,360 4,033,927
Property and equipment 9,252,288 9,054,413
Prepaid rent 88,200 88,200
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$ 14,767,848 $ 13,176,540
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Liabilities and Partners' Equity
Current liabilities:
Bank indebtedness $ - $ 150,059
Accounts payable and accrued liabilities 1,550,490 1,629,045
Distributions to partners payable 1,004,938 562,553
Current portion of long-term debt 915,825 763,584
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3,471,253 3,105,241
Long-term debt 2,552,235 1,967,997
Notes payable 300,000 300,000
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6,323,488 5,373,238
Partners' equity 8,199,440 7,587,433
Contributed surplus 244,920 215,869
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$ 14,767,848 $ 13,176,540
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Canadian Equipment Rental Fund Limited Partnership
Operating as 4-Way Equipment Rentals
Statements of Operations
(unaudited)
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Three months Three months
ended ended
March 31, March 31,
2007 2006
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Revenue: $ 4,318,358 $ 2,313,217
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Expenses:
Cost of sales 843,671 361,485
General and administrative 163,926 122,636
Interest 58,267 50,352
Operating 1,199,119 846,987
Stock based compensation 69,527 18,088
Amortization of property and equipment 479,227 231,672
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2,813,737 1,631,220
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Net income for the period $ 1,504,621 $ 681,997
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Net income per unit
Basic $ 0.29 $ 0.21
Diluted $ 0.29 $ 0.21
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%SEDAR: 00022335E
