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Press release from CNW Group

Cervus Equipment Corp. announces second quarter 2013 results

Wednesday, August 07, 2013

Cervus Equipment Corp. announces second quarter 2013 results

18:34 EDT Wednesday, August 07, 2013

Symbol: CVL (TSX)

CALGARY, Aug. 7, 2013 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced its financial results and operational highlights for the quarter ended June 30, 2013.

"During the second quarter, corporate sales initiatives and positive customer outlook contributed to a 48 percent increase in agricultural equipment sales and record overall quarterly revenue," said Graham Drake, President and CEO of Cervus. "Having established operations in Australia in July of last year, Cervus increased our interest in Windmill in the second quarter, which is another step forward in Cervus' proven consolidation process."

Highlights for the Quarter:

  • On May 28, 2013, Cervus purchased an additional 18.6% interest in Windmill AG Pty Ltd. ("Windmill") for $1.8 million, comprising a $0.5 million equity investment and a $1.3 million shareholder loan, increasing the Company`s ownership interest in Windmill to 53.3%.
  • Revenue increased by $58.1 million or 29.6% to $254.8 million for the quarter ended June 30, 2013, from $196.7 million in 2012. Same store sales increased 24.6% or $48.3 million to $244.9 million.
  • Profit increased by $1.3 million or 17.3 % to $8.7 million for the quarter ended June 30, 2013, from $7.4 million in 2012.

Financial Highlights:

During the three month period ended June 30, 2013, revenue grew by $58.1 million or 29.6% to $254.8 million compared to the same period in 2012. This increase is attributable to a revenue increase in the agricultural equipment segment of 45.5% (37.5% on a same store basis) and a 2.6% increase in revenue in the commercial and industrial equipment segment.

Profit for the three month period ended June 30, 2013 increased by $1.3 million to $8.7 million. This increase is primarily due to sales volume increases, partially offset by a decrease in overall gross margin and an increase in interest expense.  Selling, general and administrative expenditures decreased to 12.9% of total revenue for the three month period ended June 30, 2013, compared to 14.6% for the same period in 2012.

As at June 30, 2013, Cervus had working capital of $99.8 million, up $9.6 million when compared to $90.2 million at December 31, 2012.

Selected Quarterly Information

             
(in $ thousands, except per share amounts) Three
Months
Ended
June 30,
2013
Three
Months
Ended
June 30,
2012
% change Six Months
Ended
June 30,
2013
Six
Months
Ended
June 30,
2012
% change
Revenues 254,798 196,654 29.6% 403,730 306,436 31.8%
Gross profit 45,456 37,610 20.9% 73,978 60,666 21.9%
Gross margin 17.8% 19.1% -6.7% 18.3% 19.8% -7.5%
Net profit 8,723 7,438 17.3% 9,223 8,834 4.4%
Net profit attributable to shareholders 8,705 7,428 17.2% 9,205 8,646 6.5%
  Per share  - Basic 0.58 0.50 16.4%           0.62           0.59 4.4%
  Per share - Diluted 0.56 0.49 14.1%           0.59           0.57 3.8%
Cash provided by operating activities 6,075 1,714 254.4% (1,796) 17,532 -110.2%
  Per share - Basic 0.41 0.12 238.5% (0.12)           1.19 -110.1%
EBITDA[1] 17,554 14,094 24.5% 22,843 19,385 17.8%
EBITDA margin 1 6.9% 7.3% -5.6% 5.7% 6.3% -10.2%
  Per share - basic           1.17           0.96 22.3%           1.53           1.32 15.9%
Dividends declared to shareholders 2,918 2,725 7.1% 5,795 5,411 7.1%
  Per share           0.19           0.19 0.0%           0.39           0.37 4.9%
Weighted average shares outstanding            
  Basic 14,956 14,719 1.6% 14,937 14,721 1.5%
  Diluted       15,576 15,278 2.0%       15,557 15,278 1.8%
Actual shares outstanding       14,967 14,729 1.6%
 Closing market price per share               19.91         17.99        0.11
Total assets       464,578 387,789 19.8%
Long-term liabilities       75,111 47,414 58.4%
Total liabilities       254,357 199,558 27.5%
Shareholders' equity       206,798 188,231 9.9%
Net book value per share - diluted       13.29 12.32 7.9%

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

Conference Call Information

Cervus will host its second quarter 2013 results conference call on Thursday August 8, 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 Thursday, August 15, 2013 at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 23386415 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

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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