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Press release from CNW Group

Cervus Equipment Corp. Announces First Quarter 2013 Results

Thursday, May 09, 2013

Cervus Equipment Corp. Announces First Quarter 2013 Results

21:12 EDT Thursday, May 09, 2013

Symbol: CVL (TSX)

CALGARY, May 9, 2013 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced its financial results and operational highlights for the quarter ended March 31, 2013.

"Cervus continues to generate year-over-year organic growth," said Graham Drake, President and CEO of Cervus. "Looking forward, we expect stable near-term commodity prices and sustained high farm incomes to contribute to another fairly strong year in our agricultural segment. We anticipate overall performance will remain relatively stable in our commercial and industrial segment, with weakness being felt in the construction sector."

Highlights for the Quarter:

  • Revenue increased by $39.2 million or 35.7% to $148.9 million for the quarter ended March 31, 2013 from $109.8 million in 2012. Same store sales increased 142% or $15.1 million.
  • Profit decreased by $896 thousand or 64.2% to $500 thousand for the quarter ended March 31, 2013 from $1.4 million in 2012.
  • Net cash used in operating activities for the quarter ended March 31, 2013 was $7.9 million, compared to $15.8 million of net cash generated from operating activities for the same quarter in 2012

Financial Highlights:

For the quarter ended March 31, 2013, revenue increased by $39.2 million or 35.7% when compared to the same period in 2012. Same store revenue increased $15.1 million or 14.2%. This increase is attributable to an increase in revenues in the agricultural equipment segment of $20.4 million or 28.5% ($15.8 million or 22.1% on a same store basis) and an $18.8 million or 49% increase in revenues in the commercial and industrial equipment segment (a $712 thousand or 2.0% decrease on a same store basis).

Profit for the three month period ended March 31, 2013 decreased by $896 thousand to $500 thousand from $1.4 million in 2012, due to the decrease in overall gross margin and an increase in interest expense.  Selling, general and administrative expenditures decreased to 18.4% of total revenue for the three month period ended March 31, 2013 compared to 19.4% for the same period in 2012.

As at March 31, 2013, Cervus had working capital of $89.3 million, down $876 thousand compared to $90.2 million at December 31, 2012.

Selected Quarterly Information

       
$ thousands, except per share amounts March 31, 2013 March 31, 2012 % change
Revenues 148,932 109,782 35.7
Gross profit 28,522 23,055 23.7
Gross margin 19.2% 21.0% (8.6)
Profit (loss) for the period 500 1,396 (64.2)
  Per share - Basic and diluted 0.03 0.08 (62.5)
Net cash provided by (used in) operating activities (7,871) 15,839 n/a
  Per share - Basic (0.53) 1.07 n/a
EBITDA1 5,289 5,290 n/a
EBITDA margin1 3.6% 4.8% (25.0)
  Per share - basic 0.35 0.36 (2.8)
Dividends declared to common shareholders 2,877 2,686 7.1
  Per share 0.1925 0.1825 5.5
Weighted average shares outstanding      
  Basic 14,918 14,715 1.4
  Diluted 15,535 15,240 1.9
Actual common shares outstanding 14,943 14,717 1.5
Closing market price per share 20.50 18.75 9.3
Total assets 414,408 351,836 17.8
Long-term liabilities 72,808 42,733 70.4
Total liabilities 213,319 168,814 26.4
Total equity 201,089 183,022 9.9
Net book value per share - diluted 12.94 12.01 7.7
Notes:  (1) These financial measures are identified and defined under the section "Non-IFRS Financial Measures".

Conference Call Information

Cervus will host its first quarter 2013 results conference call on Friday May 10, 2013 at 11:00 a.m. Eastern Time. Interested parties may access the conference call by dialling (888) 231-8191 (domestic) or (647) 427-7450 (international). The conference call will be archived for replay until Friday, May 17, 2013 at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 60214897 followed by the number sign.

Report on Voting Results from the 2013 Annual Meeting of Shareholders

At Cervus' annual meeting of shareholders held on April 25, 2013, the following matters were approved by the shareholders (with the percentage of votes in favour of each matter indicated in parentheses after each matter): (i) the number of directors to be elected at the meeting was fixed at not more than 6 (94.66%); (ii) the following persons were re-elected as directors of Cervus: Peter Lacey (78.75%), Graham Drake (97.66%); Steven Collicutt (97.66%), Gary Wayne Harris (97.66%), Don Bell (93.64%) and Larry Benke (97.67%); (iii) KPMG LLP was reappointed as auditor of Cervus (97.86%); (iv) the amended and restated by-laws of Cervus were ratified and confirmed (100%); and (v) amendments to Cervus' equity compensation plans were approved (82.23%).  For further details on these matters, see Cervus' management information circular dated March 13, 2013 available electronically at www.sedar.com.

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

For further information:

Graham Drake - President & CEO
Telephone: (403) 567-2095
Fax: (403) 567-0392
Email: gdrake@cervusequipment.com


Randy Muth - Chief Financial Officer
Telephone: (403) 567-2097
Fax: (403) 567-0392
Email: rmuth@cervusequipment.com

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