Canadian Equipment Rental Fund Limited Partnership Results for the Second Quarter 2010
TSX Venture Symbol: CFL.UN
CALGARY, Aug. 27 /PRNewswire-FirstCall/ - Mr. Wayne Wadley, president of CERF GP Corp., the general partner of Canadian Equipment Rental Fund Limited Partnership ("CERF" or the "Partnership"), is pleased to announce the results for the three and six months ended June 30, 2010.
Full details of the Partnership's results, in the form of the unaudited financial statements for the three and six months ended June 30, 2010 and Management's Discussion and Analysis of the results dated August 25, 2010 are available on SEDAR at www.sedar.com and on the Partnership's website www.cerflp.com.
Highlights of the six months ended June 30, 2010 were: - Revenue for the six months was $6,738,004. - Net loss per unit of $0.02 basic. - EBITDA for the period was $2,168,763 - EBITDA per unit of $0.37 basic. - Distributions of $0.12 per unit were declared for the six months.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances, cash flows or the ability to pay distributions to be materially different from the results, performances, cash flow or the ability to pay distributions expressed or implied by such forward looking statements.
Mr. Wadley makes the following statements:
"We are still seeing indications of an economic recovery that cause us to believe that 2010 will be a better year for the Partnership. The second quarter of 2010 was hampered by a warm and wet spring which reduced the demand for winter equipment and put many construction projects on hold as it was too wet to continue. Also some projects were put on hold due to the tightening of credit caused by the fear of a worsening economy related to the crisis in Europe. With those events behind us we are looking to the last half of the year with optimism.
The waste disposal and recycling business we acquired in October 2009 is continuing to grow. We are experiencing higher demand for our recycling and disposal services as we continue to roll out innovative new products and services. Our 4-Way customers have embraced this additional product line as they are seeking more single source solutions for their construction needs. We look forward to continuing to expand in this sector."
CERF is an Alberta limited partnership engaged in the rental, sale and service of industrial and construction equipment. CERF trades on the TSX Venture Exchange under the symbol "CFL.UN" and currently has 6,096,450 units issued and outstanding.
CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP Consolidated Balance Sheets - unaudited ------------------------------------------------------------------------- June 30, December 31, 2010 2009 ------------------------------------------------------------------------- Assets Current assets: Cash $ 76,632 $ 42,502 Accounts receivable 2,337,291 2,370,047 Inventory and other 1,324,357 764,249 Prepaid expense 265,832 215,506 ------------------------------------------------------------------------- 4,004,112 3,392,304 Property and equipment 16,572,369 17,995,205 Goodwill 203,477 203,477 Financial derivatives 109 19,697 ------------------------------------------------------------------------- $ 20,780,067 $ 21,610,683 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Partners' Equity Current liabilities: Bank indebtedness $ 329,322 $ 317,193 Accounts payable and accrued liabilities 1,374,206 1,053,376 Distributions payable 365,787 365,334 Note payable 300,000 300,000 Current portion of long-term debt 1,817,576 1,681,313 Current portion of capital lease obligation 100,099 95,646 ------------------------------------------------------------------------- 4,286,990 3,812,862 Long-term debt 4,824,302 5,296,964 Obligation under capital lease 4,379,788 4,430,759 Future income taxes 301,290 301,340 ------------------------------------------------------------------------- 13,792,370 13,841,925 ------------------------------------------------------------------------- Partners' equity: Limited partnership units 9,082,330 9,068,408 Unit purchase loans receivable (374,535) (438,659) Contributed surplus 475,618 470,613 Deficit (2,195,716) (1,331,604) ------------------------------------------------------------------------- 6,987,697 7,768,758 ------------------------------------------------------------------------- $ 20,780,067 $ 21,610,683 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP Consolidated Statements of Operations - unaudited ------------------------------------------------------------------------- Three Months Three Months Six months Six months ended ended ended ended June 30, June 30, June 30, June 30, 2010 2009 2010 2009 ------------------------------------------------------------------------- Revenue: $ 2,870,924 $ 2,955,470 $ 6,738,004 $ 7,127,456 ------------------------------------------------------------------------- Expenses: General and administrative 445,485 308,361 744,935 623,809 Interest on long term debt 195,835 87,372 395,788 163,231 Operating 1,836,654 1,784,687 3,913,490 3,807,423 Amortization of property and equipment 754,144 824,581 1,587,580 1,638,721 Loss on disposal of property and equipment 245,908 11,144 210,078 26,984 Loss (gain) on derivatives 33,680 (21,724) 20,594 (21,724) ------------------------------------------------------------------------- 3,511,706 2,994,421 6,872,465 6,238,444 ------------------------------------------------------------------------- (Loss) income before taxes (640,782) (38,951) (134,461) 889,012 Future income taxes (recovery) (44,115) (68,511) (50) (35,137) ------------------------------------------------------------------------- Net and comprehensive (loss) income $ (596,667) $ 29,560 $ (134,411) $ 924,149 ------------------------------------------------------------------------- (Deficit) retained earnings, beginning of period (1,233,932) 901,759 (1,331,604) 700,466 Partner distributions declared (365,117) (695,644) (729,701) (1,388,940) ------------------------------------------------------------------------- (Deficit) retained earnings, end of period $ (2,195,716) $ 235,675 $ (2,195,716) $ 235,675 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net (loss) income per unit: Basic $ (0.10) $ 0.00 $ (0.02) $ 0.16 Diluted $ (0.10) $ 0.00 $ (0.02) $ 0.16 ------------------------------------------------------------------------- -------------------------------------------------------------------------
Full financial statements and notes thereto as well as management discussion and analysis are available on the SEDAR website at www.sedar.com.
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 Canadian Equipment Rental Fund Limited Partnership
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