Cervus clarifies ICFR & DC&P conclusions - no impact on previously filed financial results

Symbol: CVL (TSX)

TORONTO, Oct. 3, 2014 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced that it has re-filed certain documents on SEDAR in order to clarify its conclusions concerning disclosure controls and procedures ("DC&P") contained in those documents.

As disclosed in the amended and restated annual MD&A re-filed on July 23, 2014, the Company identified a material weakness in internal controls over financial reporting ("ICFR") related to inter-department revenue and cost elimination. The impact on correction was an equal reduction in both revenue and costs with nil impact to total comprehensive income, the statement of financial position, statement of changes in equity, or statement of cash flows.  Management has updated the procedures whereby inter-department revenues and costs are captured and eliminated on a quarterly basis and therefore the material weakness was remediated prior to the end of the second quarter of 2014.

However, the amended and restated annual MD&A as filed on July 23, 2014 did not identify a material weakness in the Company's DC&P for the year ended December 31, 2013.  The CEO and CFO have since concluded that the material weakness in Cervus' ICFR, as described above, also represented a weakness that is significant to Cervus' DC&P. Consequently, as of October 3, 2014, the Company has filed on SEDAR an amended and restated annual MD&A and related CEO and CFO certificates to properly reflect those conclusions concerning the DC&P.  The October 3, 2014 re-filing has no impact on the previously reported financial results of the Company.

The Company's first quarter 2014 interim MD&A, and related CEO and CFO certificates have also been re-filed on SEDAR, as of October 3, 2014, to provide essentially the same information regarding the identification of a material weakness in both ICFR and DC&P as at March 31, 2014.  As noted above, the material weakness related to ICFR and DC&P was remediated prior to the end of the second quarter of 2014.

About Cervus

Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 67 dealership locations in Canada, New Zealand, and Australia. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick and Doosan material handling equipment; and Peterbilt transportation equipment.   The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".

SOURCE: Cervus Equipment Corporation

Graham Drake - President & CEO   
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Email: [email protected]

Randy Muth - Chief Financial Officer  
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Email: [email protected]