Cervus Equipment Corp. Announces 2011 Year End Results and Quarterly Dividend Increase

Symbol: CVL (TSX)

CALGARY, March 7, 2012 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced its financial results and operational highlights for the year ended 2011. In addition, the Company announced that its Board of Directors has approved an increase in its quarterly dividend of $0.0025 per share starting with the March 31, 2012 quarterly dividend.  Subject to Board approval, an additional $0.0025 increase is expected to continue for each of the three remaining quarters of 2012. If approved by the Board, the total dividend will be $0.19 per share per quarter at December 31, 2012, representing an increase of $0.01 or 5.6% compared with the past dividend rate of $0.18 per quarter.

"Continued improvement in our industrial and construction segment, favorable weather conditions and positive market trends have resulted in a strong year for Cervus. With a positive market outlook for the coming year and Cervus' ongoing evaluation of opportunities for expansion, we are well positioned for continued growth in 2012 and beyond," said Peter Lacey, President and CEO of Cervus. "Cervus will also be increasing its quarterly dividend as a reflection of our strong performance, opportunities for future growth, and our strategy to provide competitive total returns to our shareholders."

Highlights for the Quarter:

• Gross revenue increased by $90.5 million or by 19.3% to $559.6 million for the year ended 2011 over $469.1 million reported in the year ended 2010.  Same store sales accounted for $80.2 million or 17.6% of the increase.
• Profit for the year increased by $6.6 million or 57.4% to $18.1 million for the year ended 2011 from $11.5 million reported in the year ended 2010.
• Basic earnings per share for the year ended December 31, 2011 increased to $1.27 per share or 54.9% from $0.82 per share for the same period of 2010.
• Same store revenues from the agricultural equipment segment and the construction and industrial equipment segment increased $43.4 million or 12.7% and $36.8 million or 32.5%, respectively, when compared with the same period in 2010.

Financial Highlights:

During the year ended December 31, 2011, revenue increased by $90.5 million or 19.3% ($53.7 million from the agricultural equipment segment and $36.8 million from the construction and industrial equipment segment). Same store revenue increased $80.2 million or 17.6% ($43.4 million or 12.7% from the agricultural equipment segment and $36.8 million or 32.5% from the construction and industrial equipment segment).

For the year ended December 31, 2011, overall gross margin increased slightly to 19.0% from 18.9% reported in the same period of 2010, an increase of 0.1 basis points.

The increase in our sales, combined with the marginal change in overall gross profit margins, resulted in an increase in our profit for the year ended 2011 when compared to 2010 of $6.6 million or 57.4%.  Selling, general and administrative expenditures decreased to 14.8% of total revenue in 2011 when compared to 15.3% of total revenue for 2010.  This is a decrease of 0.6% of total revenue or 4.0% over the prior year.

EBITDA increased by $7.4 million to $35.6 million, or $2.37 per fully diluted share, in 2011 compared with $1.94 per fully diluted share for the same period in 2010. The most significant factor contributing to the increase in EBITDA for the year was the increase in net profit before income taxes which amounted to $6.6 million increase over 2010.

As at December 31, 2011, Cervus had working capital of $79.1 million, including $6.5 million in cash and cash equivalents, up $11.1 million compared to $68.0 million at December 31, 2010.

Selected Annual Information
$ thousands, except per share amounts	December 31, 2011	December 31, 2010	December 31, 2009^1
Revenues	559,598	469,131	377,475
Gross profit	106,335	88,729	71,955
Gross margin	19.0%	18.9%	19.1%
Profit before income tax expense	26,026	18,607	18,869
Profit for the year	18,126	11,513	17,177
Profit attributable to shareholders	18,444	11,584	17,177
Net earnings per share
Basic	1.27	0.82	1.22
Diluted	1.22	0.79	1.19
Cash provided by operating activities	25,795	22,801	7,749
Per share - Basic	1.77	1.67	0.55
EBITDA^2	35,643	28,263	24,386
EBITDA margin^2	6.4%	6.0%	6.5%
Per share - basic	2.45	2.00	1.73
Dividends to preferred shares	78	318	-
Dividends declared to shareholders	10,484	10,203	10,152
Per share	0.72	0.72	0.72
Weighted average shares outstanding
Basic	14,546	14,169	14,095
Diluted	15,061	14,593	14,400
Actual shares outstanding	14,703	14,191	14,140
Closing market price per share	14.72	15.10	12.60
Price earnings ratio^2 - basic	11.9	11.7	10.3
	December 31, 2011	December 31, 2010	January 1, 2010
Total assets	281,455	260,760	225,846
Long-term liabilities	9,928	11,692	2,331
Total debt	97,736	87,173	62,343
Shareholders' equity	183,719	173,587	163,503
Market capitalization	216,428	214,284	178,164
Net book value per share - diluted	12.20	11.98	11,35

Conference Call Information

Cervus will host its 2011 year end results conference call on March 8, 2012 at 10:00 a.m. Eastern Time. Interested parties may access the conference call by dialling [phone] (domestic) or [phone] (international). The conference call will be archived for replay until Thursday, March 15, 2012 at midnight. To access the archived conference call, dial [phone] or 1-855-859-2056 and enter the reservation number 57649384 followed by the number sign.

About Cervus Equipment Corporation

Cervus acquires and manages authorized agricultural, commercial and industrial equipment dealerships in Western Canada through 30 dealership locations in Alberta, Saskatchewan and Manitoba. Cervus holds an approximate 60% equity interest in Agriturf Limited, a New Zealand-based corporation that offers authorized John Deere equipment, parts and service in the Manawatu, Rotorua, Hawke's Bay and Taranaki regions. The primary equipment brands represented by Cervus include John Deere agricultural equipment, Bobcat and JCB construction equipment, and Clark, Sellick, Nissan and Doosan material handling equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".

^{____________________}

¹ The December 31, 2009 selected annual data was prepared using previously used Canadian Generally Accepted Accounting Principles.  (See "Summary of Quarterly Results" section of the MD&A that describes the impact regarding previously reported income tax expense.)
² These financial measures are identified and defined under the section "Non-IFRS Financial Measures" in the MD&A.

Peter Lacey - President & CEO
Telephone: [phone]
Fax: [phone]
Email: [email protected]

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