Press release from CNW Group
CERF INCORPORATED Announces Results for the Second Quarter of 2012
Monday, August 27, 2012
CERF INCORPORATED Announces Results for the Second Quarter of 201207:00 EDT Monday, August 27, 2012TSX Venture Symbol: CFLCALGARY, Aug. 27, 2012 /CNW/ - Mr. Wayne Wadley, President of CERF Incorporated (the "Company" or "CERF Inc."), is pleased to announce the results for the three and six months ended June 30, 2012.Full details of the Company's results, in the form of the unaudited condensed consolidated interim financial statements and notes thereto for the three and six months ended June 30, 2012 and Management's Discussion and Analysis of the results dated August 23, 2012 are available on SEDAR at www.sedar.com and on the Company's website at www.cerfcorp.com.Q2 2012 financial highlights and recent events:Q2 revenues exceeded Q2 2011 revenues by over 34%. Revenues for the six months exceed the same period in 2011 by 38%.Waste management revenue for the second quarter increased 73% over Q2 2011.Rental revenues for the quarter increased 8% over Q2 of 2011.Cash flow from operations continues to be strong, generating $3,176,636 for the first six months of the year.CERF continues to build an infrastructure of quality people and systems to support organic growth and pursue outside expansionary activities.The Company paid dividends of $0.06 per share to the shareholders in the second quarter of 2012 for total of $0.12 per share for the six months ended June 30, 2012.On April 20, 2012, CERF's wholly owned subsidiary The Smart-Way Disposal & Recycling Company Ltd. completed the acquisition of all, or substantially all, of the assets used in the business of The Bin Company Inc. ("Bin Company"). Bin Company's business involves waste collection, reduction and disposal in and around the Edmonton, Alberta area market.Management believes that the operations of Bin Company will integrate nicely with Smart-Way's existing operations in the Edmonton area. Smart-Way's strategy to increase its presence in the homeowner and retail markets with products like EZ-Bag® will now be accelerated with the addition of Bin Company's BinBag™. Bin Company's fleet of trucks and disposal bins and diverse customer base will also complement Smart-Way's fleet of similar assets.Mr. Wadley makes the following statements:"With the housing and commercial sectors continually expanding to meet the ongoing demand of Alberta's economy the future is looking very bright for both the rental and waste management industries. As we move into Q3, 4-Way revenue is expected to continue on the upslope toward the busy winter season. MCL's special projects, which were delayed by the wet weather in Q1 and Q2, should bring increased revenue in Q3 as clients rush to complete the projects before the onset of winter. Demand for the Smart-Way's EZ-Bag® system continues to grow in both the Calgary and Edmonton marketplaces, and the addition of the Bin Company assets and customers are expected to provide additional revenues during the summer renovation season."CERF Inc. is engaged in the rental, sale and service of industrial and construction equipment and provides waste management and environmental services. CERF Inc. which trades on the TSX Venture Exchange under the symbol "CFL" and currently has 9,643,367 shares issued and outstanding.Forward-Looking StatementsCertain information contained herein relating to, but not limited to, CERF Inc. and its predecessor CERF LP and its businesses, and the statements of Mr. Wadley, constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that CERF Inc. expects or anticipates may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "may", "estimate", "anticipate", "believe", "expect", 'plan", "intend", "target", "project", 'forecast" or similar words suggesting future outcomes or outlook. Forward-looking statements in this news release include, but are not limited to, statements with respect to the future economic wellbeing of Western Canada and by implication of CERF Inc. Although CERF Inc. believes that the expectations conveyed by the forward-looking information are reasonable based on information available on the date of preparation, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the information contained herein, as actual results achieved will vary from the information provided herein and the variations may be material. CERF Inc. makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof and CERF Inc. does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement. Summarized financial results for the three and six months ended June 30, 2012 follow: CERF INCORPORATEDCondensed Consolidated Interim Statements of Financial PositionUnaudited; In Canadian dollars June 30, 2012December 31, 2011Assets Current assets Cash881,543 4,370,989 Accounts receivable5,205,1365,900,994 Inventory1,171,415848,403 Income taxes recoverable170,314— Prepaid expenses and deposits308,332216,326 7,736,74011,336,712 Non-current assets Loan receivable562,503665,674 Property and equipment23,430,40822,269,785 Intangibles and goodwill3,654,5283,599,104 27,647,43926,534,563Total assets35,384,17937,871,275 Liabilities and Shareholders' Equity Current liabilities: Bank indebtedness1,227,786 1,164,707 Accounts payable and accrued liabilities2,587,1553,755,003 Dividends payable579,915579,915 Income taxes payable—65,463 Current portion of long-term debt7,151,1134,151,093 Current portion of finance leases557,150593,750 12,103,11910,309,931 Non-current liabilities: Long-term debt4,217,5307,151,519 Obligation under finance leases4,614,8764,874,181 Deferred income taxes420,316623,822 9,252,72212,649,522 Shareholders' equity Share capital17,701,14417,701,144 Share purchase loans receivable(254,932)(309,532) Contributed surplus385,463382,615 Deficit(3,803,337)(2,862,405) 14,028,33814,911,822Total liabilities and shareholders' equity35,384,179 37,871,275 CERF INCORPORATEDCondensed Consolidated Interim Statements of Comprehensive IncomeUnaudited; In Canadian dollars Three months ended June 30Six months ended June 30 2012201120122011Revenues Equipment rental2,607,2262,407,4695,784,2655,496,034 Waste management3,915,6912,258,9106,427,4072,505,188 Sales of equipment, fuel and parts730,409678,2641,969,1512,112,939 Service and other295,519262,111577,648563,752 7,548,8455,606,75414,758,47110,677,913Direct expenses Cost of sales of equipment, fuel and parts605,134539,6691,530,0331,675,416 Depreciation of equipment1,010,870855,8631,941,8441,520,853 Direct operating costs4,829,9213,051,8168,832,6644,875,058 6,445,9254,447,34812,304,5418,071,327 Gross margin1,102,9201,159,4062,453,9302,606,586Operating expenses General and administrative545,336411,7601,204,023792,100 Depreciation of other property and equipment88,07476,301179,529166,797 Amortization of intangible assets160,35168,333271,57668,333 Business acquisition expenses10,94738,31217,963127,382 804,708594,7061,673,0911,154,612Other expenses Finance costs288,169237,214539,116435,993 Income before income taxes10,043327,486241,7231,015,981 Income taxes (recovery) Current90,88955,777227,190506,936 Deferred(143,950)(7,453)(203,506)(261,233) (53,061)48,32423,684245,703Net income and comprehensive income for the period63,104279,162218,039770,278 Net income per share Basic0.010.030.020.09 Diluted0.010.030.020.09Neither 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: CERF Inc.For further information: Wayne Wadley, President and CEO at (403) 850-4095 or by email at email@example.com or Ken Stephens CFO at (403) 281-1042, by fax at (403) 238-2720 or by email at firstname.lastname@example.org.