TSX Venture Symbol: CFL.UN
CALGARY, Nov. 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 third quarter ended September 30, 2007.
Highlights of the three month period ended September 30, 2007 were:
- Revenue for the quarter amounted to $2,799,138 representing an
increase of 12% over the same quarter in 2006. This is a direct
result of the continued strong demand for rental equipment in the
Edmonton area and our increased rental equipment available to supply
that demand.
- Operating margin increased to 48% from 42% in 2006. This reflects the
economies of scale we are experiencing from our increased sales
volumes and rental fleet.
- Distributions of $0.15 per unit were declared for the quarter
bringing total distributions for the year to $0.43 not including the
special distribution of $0.065 made in the first quarter of the year
that related to 2006 performance.
- The Partnerships working capital ratio at September 30, 2007 was
1:1 and its debt to Partner's equity was 0.78:1 reflecting
management's commitment to maintain a conservative debt level and
solid balance sheet.
Highlights of the nine month period ended September 30, 2007 were:
- Revenues for the nine months were $10,263,951 representing an
increase of 49% over the 2006 nine month revenues of $6,900,474.
- Operating margin increased to 50% from 43% achieved in the same nine
months of 2006.
- Income before tax increased to $2,502,306 or $0.48 per unit - basic,
compared to $1,500,729 or $0.46 per basic unit in 2006.
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 and third quarters are historically the slowest quarters as the demand for winter heating and lighting equipment diminishes.
Equipment diversification is a key factor in our strategy in continuing to meet customer demand. CERF continues to respond by adding equipment that is in demand to our rental fleet. Almost all equipment is priced in U.S. dollars and the high Canadian dollar has increased our purchasing power greatly. Management is looking forward to a strong fourth quarter and a record 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 5,440,033 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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September 30, December 31,
2007 2006
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Assets
Current assets:
Cash $ 726,350 $ -
Accounts receivable 3,138,538 3,581,326
Inventory and other 520,671 452,601
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4,385,559 4,033,927
Property and equipment 11,923,902 9,054,413
Prepaid rent 88,200 88,200
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$ 16,397,661 $ 13,176,540
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Liabilities and Partners' Equity
Current liabilities:
Bank indebtedness $ - $ 150,059
Accounts payable and accrued liabilities 1,750,248 1,629,045
Partner distributions payable 815,505 562,553
Notes payable 300,000 -
Current portion of long-term debt 1,500,312 763,584
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4,366,065 3,105,241
Long-term debt 3,991,874 1,967,997
Notes payable - 300,000
Future income taxes 595,485 -
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8,953,424 5,373,238
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Partners' equity:
Limited Partnership units 6,955,668 6,199,626
Unit purchase loans receivable (530,740) -
Contributed surplus 352,037 215,869
Retained earnings 667,272 1,387,807
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7,444,237 7,803,302
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$ 16,397,661 $ 13,176,540
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Statements of Operations
(unaudited)
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Three Months Three Months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2007 2006 2007 2006
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Revenue $ 2,799,138 $ 2,499,116 $ 10,263,951 $ 6,900,474
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Expenses:
General and
administrative 170,413 122,347 540,897 393,155
Interest on long
term debt 87,989 66,487 216,355 171,241
Operating 1,465,064 1,449,011 5,136,774 3,937,152
Stock based
compensation 63,697 36,173 207,343 79,505
Amortization of
property and
equipment 582,639 338,064 1,660,276 818,692
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2,369,802 2,012,082 7,761,645 5,399,745
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Income before taxes 429,336 487,034 2,502,306 1,500,729
Future income taxes 26,953 - 595,485 -
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Net income for the
period 402,383 487,034 1,906,821 1,500,729
Other comprehensive
income - - - -
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Comprehensive net
income for the
period 402,383 487,034 1,906,821 1,500,729
Retained earnings,
beginning of
period 1,072,615 1,175,752 1,387,807 487,314
Partner
distributions
declared (807,726) (361,684) (2,627,356) (686,941)
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Retained earnings,
end of period $ 667,272 $ 1,301,102 $ 667,272 $ 1,301,102
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Net income per
unit:
Basic $ 0.08 $ 0.15 $ 0.37 $ 0.46
Diluted $ 0.07 $ 0.15 $ 0.35 $ 0.45
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%SEDAR: 00022335E
