TSX Venture Symbol: CFL
CALGARY, Aug. 27, 2012 /CNW/ - Mr. Wayne Wadley, President of CERF Incorporated (the "Company" or "CERF Inc."), is pleased to announce the results for the three and six months ended June 30, 2012.
Full details of the Company's results, in the form of the unaudited condensed consolidated interim financial statements and notes thereto for the three and six months ended June 30, 2012 and Management's Discussion and Analysis of the results dated August 23, 2012 are available on SEDAR at www.sedar.com and on the Company's website at www.cerfcorp.com.
Q2 2012 financial highlights and recent events:
- Q2 revenues exceeded Q2 2011 revenues by over 34%. Revenues for the six months exceed the same period in 2011 by 38%.
- Waste management revenue for the second quarter increased 73% over Q2 2011.
- Rental revenues for the quarter increased 8% over Q2 of 2011.
- Cash flow from operations continues to be strong, generating $3,176,636 for the first six months of the year.
- CERF continues to build an infrastructure of quality people and systems to support organic growth and pursue outside expansionary activities.
- The Company paid dividends of $0.06 per share to the shareholders in the second quarter of 2012 for total of $0.12 per share for the six months ended June 30, 2012.
- On April 20, 2012, CERF's wholly owned subsidiary The Smart-Way Disposal
& Recycling Company Ltd. completed the acquisition of all, or
substantially all, of the assets used in the business of The Bin
Company Inc. ("Bin Company"). Bin Company's business involves waste
collection, reduction and disposal in and around the Edmonton, Alberta
area market.
Management believes that the operations of Bin Company will integrate nicely with Smart-Way's existing operations in the Edmonton area. Smart-Way's strategy to increase its presence in the homeowner and retail markets with products like EZ-Bag® will now be accelerated with the addition of Bin Company's BinBag™. Bin Company's fleet of trucks and disposal bins and diverse customer base will also complement Smart-Way's fleet of similar assets.
Mr. Wadley makes the following statements:
"With the housing and commercial sectors continually expanding to meet the ongoing demand of Alberta's economy the future is looking very bright for both the rental and waste management industries. As we move into Q3, 4-Way revenue is expected to continue on the upslope toward the busy winter season. MCL's special projects, which were delayed by the wet weather in Q1 and Q2, should bring increased revenue in Q3 as clients rush to complete the projects before the onset of winter. Demand for the Smart-Way's EZ-Bag® system continues to grow in both the Calgary and Edmonton marketplaces, and the addition of the Bin Company assets and customers are expected to provide additional revenues during the summer renovation season."
CERF Inc. is engaged in the rental, sale and service of industrial and construction equipment and provides waste management and environmental services. CERF Inc. which trades on the TSX Venture Exchange under the symbol "CFL" and currently has 9,643,367 shares issued and outstanding.
Forward-Looking Statements
Certain information contained herein relating to, but not limited to, CERF Inc. and its predecessor CERF LP and its businesses, and the statements of Mr. Wadley, constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that CERF Inc. expects or anticipates may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "may", "estimate", "anticipate", "believe", "expect", 'plan", "intend", "target", "project", 'forecast" or similar words suggesting future outcomes or outlook. Forward-looking statements in this news release include, but are not limited to, statements with respect to the future economic wellbeing of Western Canada and by implication of CERF Inc.
Although CERF Inc. believes that the expectations conveyed by the forward-looking information are reasonable based on information available on the date of preparation, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the information contained herein, as actual results achieved will vary from the information provided herein and the variations may be material. CERF Inc. makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof and CERF Inc. does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
Summarized financial results for the three and six months ended June 30, 2012 follow:
CERF INCORPORATED
Condensed Consolidated Interim Statements of Financial Position
Unaudited; In Canadian dollars
| June 30, 2012 | December 31, 2011 | ||
| Assets | |||
| Current assets | |||
| Cash | 881,543 | 4,370,989 | |
| Accounts receivable | 5,205,136 | 5,900,994 | |
| Inventory | 1,171,415 | 848,403 | |
| Income taxes recoverable | 170,314 | — | |
| Prepaid expenses and deposits | 308,332 | 216,326 | |
| 7,736,740 | 11,336,712 | ||
| Non-current assets | |||
| Loan receivable | 562,503 | 665,674 | |
| Property and equipment | 23,430,408 | 22,269,785 | |
| Intangibles and goodwill | 3,654,528 | 3,599,104 | |
| 27,647,439 | 26,534,563 | ||
| Total assets | 35,384,179 | 37,871,275 | |
| Liabilities and Shareholders' Equity | |||
| Current liabilities: | |||
| Bank indebtedness | 1,227,786 | 1,164,707 | |
| Accounts payable and accrued liabilities | 2,587,155 | 3,755,003 | |
| Dividends payable | 579,915 | 579,915 | |
| Income taxes payable | — | 65,463 | |
| Current portion of long-term debt | 7,151,113 | 4,151,093 | |
| Current portion of finance leases | 557,150 | 593,750 | |
| 12,103,119 | 10,309,931 | ||
| Non-current liabilities: | |||
| Long-term debt | 4,217,530 | 7,151,519 | |
| Obligation under finance leases | 4,614,876 | 4,874,181 | |
| Deferred income taxes | 420,316 | 623,822 | |
| 9,252,722 | 12,649,522 | ||
| Shareholders' equity | |||
| Share capital | 17,701,144 | 17,701,144 | |
| Share purchase loans receivable | (254,932) | (309,532) | |
| Contributed surplus | 385,463 | 382,615 | |
| Deficit | (3,803,337) | (2,862,405) | |
| 14,028,338 | 14,911,822 | ||
| Total liabilities and shareholders' equity | 35,384,179 | 37,871,275 | |
CERF INCORPORATED
Condensed Consolidated Interim Statements of Comprehensive Income
Unaudited; In Canadian dollars
| Three months ended June 30 | Six months ended June 30 | ||||
| 2012 | 2011 | 2012 | 2011 | ||
| Revenues | |||||
| Equipment rental | 2,607,226 | 2,407,469 | 5,784,265 | 5,496,034 | |
| Waste management | 3,915,691 | 2,258,910 | 6,427,407 | 2,505,188 | |
| Sales of equipment, fuel and parts | 730,409 | 678,264 | 1,969,151 | 2,112,939 | |
| Service and other | 295,519 | 262,111 | 577,648 | 563,752 | |
| 7,548,845 | 5,606,754 | 14,758,471 | 10,677,913 | ||
| Direct expenses | |||||
| Cost of sales of equipment, fuel and parts | 605,134 | 539,669 | 1,530,033 | 1,675,416 | |
| Depreciation of equipment | 1,010,870 | 855,863 | 1,941,844 | 1,520,853 | |
| Direct operating costs | 4,829,921 | 3,051,816 | 8,832,664 | 4,875,058 | |
| 6,445,925 | 4,447,348 | 12,304,541 | 8,071,327 | ||
| Gross margin | 1,102,920 | 1,159,406 | 2,453,930 | 2,606,586 | |
| Operating expenses | |||||
| General and administrative | 545,336 | 411,760 | 1,204,023 | 792,100 | |
| Depreciation of other property and equipment | 88,074 | 76,301 | 179,529 | 166,797 | |
| Amortization of intangible assets | 160,351 | 68,333 | 271,576 | 68,333 | |
| Business acquisition expenses | 10,947 | 38,312 | 17,963 | 127,382 | |
| 804,708 | 594,706 | 1,673,091 | 1,154,612 | ||
| Other expenses | |||||
| Finance costs | 288,169 | 237,214 | 539,116 | 435,993 | |
| Income before income taxes | 10,043 | 327,486 | 241,723 | 1,015,981 | |
| Income taxes (recovery) | |||||
| Current | 90,889 | 55,777 | 227,190 | 506,936 | |
| Deferred | (143,950) | (7,453) | (203,506) | (261,233) | |
| (53,061) | 48,324 | 23,684 | 245,703 | ||
| Net income and comprehensive income for the period | 63,104 | 279,162 | 218,039 | 770,278 | |
| Net income per share | |||||
| Basic | 0.01 | 0.03 | 0.02 | 0.09 | |
| Diluted | 0.01 | 0.03 | 0.02 | 0.09 | |
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.
SOURCE: CERF Inc.
Wayne Wadley, President and CEO at (403) 850-4095 or by email at [email protected] or Ken Stephens CFO at (403) 281-1042, by fax at (403) 238-2720 or by email at [email protected].