Canadian Equipment Rental Fund Limited Partnership Results for the First
Quarter 2010
TSX Venture Symbol: CFL.UN
CALGARY, May 28 /CNW/ - 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 months ended March 31, 2010.
Full details of the Partnership's results, in the form of the unaudited financial statements for the three months ended March 31, 2010 and Management's Discussion and Analysis of the results dated May 27, 2010 are available on SEDAR at www.sedar.com and on the Partnership's website www.cerflp.com.
Highlights of the quarter ended March 31, 2010 were:
- Revenue for the quarter was $3,867,080.
- Net income per unit of $0.08 basic.
- EBITDAC for the quarter was $1,511,645
- EBIDAC per unit of $0.26 basic.
- Distributions of $0.06 per unit were declared for the quarter.
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:
"Early indications of an economic recovery cause us to believe that 2010 will be a better year for the Partnership. According to the Edmonton Construction Association, there were 33% more posted projects between January and March 2010 as compared to the same period in 2009. We have seen a 12% increase in rental revenues for the quarter ended March 2010 compared to the quarter ended December 2009. Contractors are optimistic about the year ahead with further recovery anticipated towards the last quarter of 2010 and continuing into 2011. There is more activity in housing construction as the builders have sold most of their inventory and the threat of rising interest rates is motivating buyers. Our refractory customers are experiencing increased work levels as they are busy with scheduled plant turn around projects. Certain oilfield service clients are also seeing renewed demand for their services. Indications from commercial contractors are that bidding has increased and that the projects they are bidding on are more substantial than in 2009. Federal Government infrastructure spending is starting to take hold as the lag time for permitting and approvals have now passed and projects can advance to the building phase.
Finally the waste disposal and recycling business we acquired in October 2009 is showing great promise. At present we are experiencing high demand for our recycling and disposal services."
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
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March 31, December 31,
2010 2009
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Assets
Current assets:
Cash $ 35,521 $ 42,502
Accounts receivable 3,236,708 2,370,047
Inventory and other 960,728 764,249
Prepaid expense 169,391 215,506
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4,402,348 3,392,304
Property and equipment 18,400,471 17,995,205
Goodwill 203,477 203,477
Financial derivatives 32,783 19,697
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$ 23,039,079 $ 21,610,683
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Liabilities and Partners' Equity
Current liabilities:
Bank indebtedness $ 835,846 $ 317,193
Accounts payable and accrued
liabilities 1,774,702 1,053,376
Distributions payable 365,787 365,334
Note payable 300,000 300,000
Current portion of long-term debt 1,833,892 1,681,313
Current portion of capital lease
obligation 98,294 95,646
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5,208,521 3,812,862
Long-term debt 5,198,651 5,296,964
Obligation under capital lease 4,405,170 4,430,759
Future income taxes 345,405 301,340
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15,157,747 13,841,925
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Partners' equity:
Limited partnership units 9,082,330 9,068,408
Unit purchase loans receivable (438,659) (438,659)
Contributed surplus 471,593 470,613
Deficit (1,233,932) (1,331,604)
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7,881,332 7,768,758
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$ 23,039,079 $ 21,610,683
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CANADIAN EQUIPMENT RENTAL FUND LIMITED PARTNERSHIP
Statements of Consolidated Operations
- unaudited
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Three months Three months
ended ended
March 31, March 31,
2010 2009
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Revenues $ 3,867,080 $ 4,171,986
Expenses:
General and administrative 299,450 322,551
Interest on long term debt 199,953 75,859
Operating 2,076,836 2,015,633
Amortization of property and equipment 797,606 829,980
(Gain) on financial derivatives (13,086) -
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3,360,759 3,244,023
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Income before income taxes 506,321 927,963
Future income taxes 44,065 33,374
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Net income and comprehensive income for
the period 462,256 894,589
(Deficit) retained earnings, beginning
of period (1,331,604) 700,466
Partner distributions declared (364,584) (693,296)
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(Deficit) retained earnings, end of
period $ (1,233,932) $ 901,759
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Net income per unit
Basic $ 0.08 $ 0.16
Diluted $ 0.08 $ 0.15
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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.
%SEDAR: 00022335E
For further information: contact Wayne Wadley, President & CEO at (403) 850-4095 or by email at [email protected]; or Ken Stephens, CFO at (403) 298-8695 or by email at [email protected]
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