Cervus Equipment Corp. announces third quarter 2013 results

Symbol: CVL (TSX)

CALGARY, Nov. 13, 2013 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced its financial results and operational highlights for the quarter ended September 30, 2013.

"Record harvests in Western Canada contributed to a consecutive quarter of record overall revenue," said Graham Drake, President and CEO of Cervus. "The bumper crop is a positive indicator of farm incomes for the 2013 crop year, while the steady growth we are seeing in our Commercial and Industrial segment indicates a more positive outlook into the fourth quarter."

Highlights for the Quarter:

• Revenue for the three months ended September 30, 2013 increased by $26.8 million to $260.8 million, compared to $234.0 million for the three months ended September 30, 2012.
• Same store revenue for the three month period ended September 30, 2013 increased $12.0 million to $246.0 million compared to total same store revenue of $234.0 million for the three months ended September 30, 2012.
• Net profit available to shareholders for the three months ended September 30, 2013 was $8.6 million, consistent with the three months ended September 30, 2012.

Financial Highlights:

During the three month period ended September 30, 2013, revenue grew by $26.8 million or 11.5% to $260.8 million compared to the same period in 2012. This increase is attributable to a revenue increase in the agricultural equipment segment of 8.9% (increase of 0.1% on a same store basis) and an 18.4% increase in revenues in the commercial and industrial equipment segment.

Profit for the three month period ended September 30, 2013 remained consistent at $8.6 million, primarily due to increased equipment sales volume offset by margin pressure on equipment, increased amortization on trade name intangibles, and increased commission expense on higher unit sales.  Selling, general and administrative expenditures increased to 13.5% of total revenue for the three month period ended September 30, 2013, compared to 12.7% for the same period in 2012.

As at September 30, 2013, Cervus had working capital of $113.8 million, up $26.6 million when compared to $87.1 million at December 31, 2012.

Selected Quarterly Information

(in $ thousands, except per share amounts)				Three Months Ended September 30, 2013			Three Months Ended September 30, 2012			% change			Nine Months Ended September 30, 2013			Nine Months Ended September 30, 2012			% change
Revenues				260,796			233,997			11.5%			661,945			538,465			22.9%
Gross profit				47,445			41,990			13.0%			120,122			101,599			18.2%
Gross margin				18.2%			17.9%			1.4%			18.1%			18.9%			-3.8%
Net profit				8,741			8,606			1.6%			16,954			16,722			1.4%
Net profit attributable to shareholders				8,646			8,606			0.5%			16,841			16,534			1.9%
Per share  - Basic				0.58			0.58			-0.6%			1.13			1.12			0.5%
Per share - Diluted				0.55			0.56			-1.0%			1.08			1.08			0.1%
Cash provided by operating activities				20,046			2,936			582.8%			18,252			20,467			-10.8%
Per share - Basic				1.34			0.20			575.3%			1.22			1.39			-12.0%
EBITDA^[1]				17,337			16,984			2.1%			38,879			35,316			10.1%
EBITDA margin^1				6.6%			7.3%			-8.4%			5.9%			6.6%			-10.4%
Per share - basic				1.16			1.15			1.0%			2.60			2.39			8.6%
Dividends declared to shareholders				2,961			2,780			6.5%			8,756			8,200			6.8%
Per share				0.20			0.19			6.7%			0.59			0.56			5.4%
Weighted average shares outstanding
Basic				14,989			14,825			1.1%			14,955			14,756			1.3%
Diluted				15,650			15,416			1.5%			15,615			15,344			1.8%
Actual shares outstanding													14,994			14,880			0.8%
Closing market price per share													20.79			19.60			6.1%
Total assets													455,311			418,863			8.7%
Long-term liabilities													79,493			75,366			5.5%
Total liabilities													240,601			222,477			8.1%
Shareholders' equity													211,192			196,086			7.7%
Net book value per share - diluted													13.52			12.78			5.8%

Notes:  (1) These financial measures are identified and defined under the section "Non-IFRS Financial Measures".

Conference Call Information

Cervus will host its third quarter 2013 results conference call on Thursday, November 14, 2013 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, November 21, 2013 at midnight. To access the archived conference call, dial [phone] or 1-855-859-2056 and enter the reservation number 90504938 followed by the number sign.

About Cervus Equipment Corporation

Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 55 dealership locations in Western Canada, New Zealand, and Australia. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick, Nissan 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
Telephone: [phone]
Fax: [phone]
Email: [email protected]

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