TSX Venture Symbol: CFL.UN
CALGARY, Aug. 28 /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 second quarter ended June 30, 2007.
Quarter Highlights Include:
- Revenues for the three months were $3,146,455 up $1,058,314 or 50%
over the quarter ended June 30, 2006.
- Revenues for the six months ended June 30, 2007 were $7,464,813 up
$3,063,455 or 70% over the $4,401,358 of revenues recorded for the
same period in 2006.
- Income before income tax was $568,349 for the three months ended
June 30, 2007 representing an increase of 71% compared with $331,698
of income earned in the three months ended June 30, 2006.
- Income before tax for the six months ended June 30, 2007 was
$2,072,970 which was more than double the $1,013,695 of income earned
in the same six months of 2006.
- Income before tax of $2,072,970 for the first half year of 2007 was
90% of the $2,291,121 of income earned in all of 2006.
- Basic income per unit before tax was $0.40 for the six months ended
June 30, 2007 compared to $0.31 for the same six months of 2006, and
$0.63 per unit earned in the year ended December 31, 2006.
- Distributions per unit were $0.345 for the first six months of 2007
compared to $0.10 for the first six months of 2006 and $0.32 per unit
for the entire year of 2006.
- Capital expenditures net of proceeds of disposals totaled $2,970,359
compared to $1,859,271 for the same six months of 2006.
- To handle our increased activity and maintain our level of service to
our customers, we increased our work force from 33 in June of 2006 to
41 at the end of June 2007 with 95% retention of employees. All
employees of the Partnership have limited partnership units or
options to acquire units that will allow them to participate in the
present and future success of the Partnership.
Mr. Wadley comments, "The Partnership continues to make significant gains when compared to the same period of the prior year. This comes even though the second quarter is historically the slowest quarter as the demand for winter heating and lighting equipment diminishes and the wet weather experienced in the spring generally slows construction and the demand for construction related rental equipment.
Edmonton and area continues to be in an economic boom despite a slow down in predominantly natural gas drilling in other areas of the province. Driven by strong energy prices and capital investment estimated to total $114 billion in oil sands related construction and other sectors, Edmonton's diverse economy is projected to experience annual GDP growth greater than 4% in the next five years. These projects include 8 upgraders totaling $27.5 billion and are estimated to require direct expenditures exceeding $100 billion during their 30-50 year life span using 6.6 million person years to build and maintain. Although oil and gas development is the main driving force behind the economy, all sectors will benefit from this development. This is evident is the ongoing and recent project announcements for new hospitals and health centers, retail, commercial and residential real estate development, bridge construction, utility upgrades and manufacturing of which many of our customers are directly involved. Edmonton hits the news again by being recently recognized as having the best economic potential of a large city in North America by Foreign Investment News magazine.
Equipment diversification is a key factor in our strategy in continuing to meet customer demand in these various industries surrounding Edmonton and area. Customers have indicated that they are looking for various equipment solutions with leading edge technological advances to help manage their labor challenges and costs. With an average fleet age of only 2.18 years, CERF continues to respond by adding the latest aerial work, material handling and concrete equipment and general tool inventory.
Management continues to remain optimistic about customer activity levels and corresponding Partnership operating results through 2007 and into 2008."
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 5,431,283 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
Operating as 4-Way Equipment Rentals
Balance Sheets
(unaudited)
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June 30, December 31,
2007 2006
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Assets
Current assets:
Cash $ 910,551 $ -
Accounts receivable 3,082,963 3,581,326
Inventory and other 723,491 452,601
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4,717,005 4,033,927
Property and equipment 10,927,136 9,054,413
Prepaid rent 88,200 88,200
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$ 15,732,341 $ 13,176,540
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Liabilities and Partners' Equity
Current liabilities:
Bank indebtedness $ - $ 150,059
Accounts payable and accrued liabilities 2,030,737 1,629,045
Partner distribution payable 814,692 562,553
Notes payable 300,000 -
Current portion of long-term debt 1,158,412 763,584
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4,303,841 3,105,241
Long-term debt 3,079,681 1,967,997
Notes payable - 300,000
Future income taxes 129,850 -
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7,513,372 5,373,238
Partners' equity 7,930,456 7,587,433
Contributed surplus 288,513 215,869
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$ 15,732,341 $ 13,176,540
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Statements of Operations
(unaudited)
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Three Months Three Months Six months Six months
ended ended ended ended
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
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Revenue: $ 3,146,455 $ 2,088,141 $ 7,464,813 $ 4,401,358
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Expenses:
Cost of sales 539,665 381,895 1,383,336 743,380
General and
administrative 206,557 148,171 370,484 270,807
Interest on
long term debt 70,099 54,402 128,367 104,754
Operating 1,089,254 897,775 2,288,374 1,744,762
Stock based
compensation 74,120 25,243 143,646 43,331
Amortization of
property and
equipment 598,411 248,957 1,077,636 480,629
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2,578,106 1,756,443 5,391,843 3,387,663
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Income before taxes 568,349 331,698 2,072,970 1,013,695
Future income taxes 129,850 - 129,850 -
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Net income for
the period $ 438,499 $ 331,698 $ 1,943,120 $ 1,013,695
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Net income
per unit:
Basic $ 0.08 $ 0.10 $ 0.38 $ 0.31
Diluted $ 0.08 $ 0.10 $ 0.37 $ 0.31
%SEDAR: 00022335E
