TSX Venture Symbol: CFL.UN
CALGARY, Aug. 27 /PRNewswire-FirstCall/ - Mr. Wayne Wadley, president of CERF GP Corp., the general partner of Canadian Equipment Rental Fund Limited Partnership ('CERF'), is pleased to announce the results for the three and six months ended June 30, 2009.
Highlights of the six month period ended June 30, 2009 were:
- Revenue for the six months was $7,127,456.
- Net income for the six months was $942,149.
- Net income per unit of $0.16 basic.
- Distributions of $0.12 per unit were declared for the quarter.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances, cash flows or the ability to pay distributions to be materially different from the results, performances, cash flow or the ability to pay distributions expressed or implied by such forward looking statements.
Although the economy in Edmonton and area has not returned to the level of activity experienced in the latter half of 2007 and first quarter of 2008, we have seen a steady improvement in activity in all sectors as well as increasingly optimistic growth forecasts. We are expecting the commercial construction market to actually accelerate for many of our customers in 2009 compared to levels experienced in the last half of 2008. Commercial and infrastructure construction is definitely starting to see the effect of the stimulus spending by both the Federal and Provincial Governments. Housing starts in the Edmonton area are up as a result of the price reductions and low interest rates and condominium construction is showing signs of recovery with halted projects under construction once again. It is the opinion of management that rental revenues will slowly improve over the remainder of 2009.
Canadian Equipment Rental Fund Limited Partnership
Operating as 4-Way Equipment Rentals
Balance Sheets - Unaudited
-------------------------------------------------------------------------
June 30, December 31,
2009 2008
-------------------------------------------------------------------------
Assets
Current assets:
Cash $ 108,764 $ 227,425
Accounts receivable 2,646,784 3,870,472
Inventory and other 946,196 796,329
Prepaid expense 176,104 118,242
-------------------------------------------------------------------------
3,877,848 5,012,468
Property and equipment 14,651,258 14,449,882
Financial derivatives 21,724 -
Prepaid rent 88,200 88,200
-------------------------------------------------------------------------
$ 18,639,030 $ 19,550,550
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Partners' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,115,424 $ 1,669,591
Distributions payable 699,708 929,476
Note payable 300,000 300,000
Current portion of long-term debt 1,637,151 1,461,502
-------------------------------------------------------------------------
3,752,283 4,360,569
Long-term debt 5,739,443 5,640,673
Future income taxes 559,603 594,740
-------------------------------------------------------------------------
10,051,329 10,595,982
-------------------------------------------------------------------------
Partners' equity:
Limited Partnership units 8,322,439 8,272,782
Unit purchase loans receivable (438,659) (487,877)
Contributed surplus 468,246 469,197
Retained earnings 235,675 700,466
-------------------------------------------------------------------------
8,587,701 8,954,568
-------------------------------------------------------------------------
$ 18,639,030 $ 19,550,550
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Statements of Operations - Unaudited
-------------------------------------------------------------------------
Three Months Three Months Six months Six months
ended ended ended ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
-------------------------------------------------------------------------
Revenue: $ 2,955,470 $ 3,717,615 $ 7,127,456 $ 9,063,214
-------------------------------------------------------------------------
Expenses:
General and
administrative 308,361 355,125 623,809 611,620
Interest on long
term debt 87,372 95,907 163,231 210,780
Operating 1,778,637 2,079,534 3,794,270 4,241,605
Unit based
compensation 6,050 27,645 13,153 61,643
Amortization of
property and
equipment 835,725 843,377 1,665,705 1,674,793
-------------------------------------------------------------------------
3,016,145 3,401,588 6,260,168 6,800,441
-------------------------------------------------------------------------
Other:
Loss (gain) on
derivatives (21,724) - (21,724) -
-------------------------------------------------------------------------
(Loss) income
before taxes (38,951) 316,027 889,012 2,262,733
Future income
taxes (recovery) (68,511) 40,205 (35,137) 48,635
-------------------------------------------------------------------------
Net and
comprehensive
income $ 29,560 $ 275,822 $ 924,149 $ 2,214,138
-------------------------------------------------------------------------
Retained earnings,
beginning of
period 901,759 2,067,094 700,466 1,043,393
Partner
distributions
declared (695,644) (918,805) (1,388,940) (1,833,420)
-------------------------------------------------------------------------
Retained earnings,
end of period $ 235,675 $ 1,424,111 $ 235,675 $ 1,424,111
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net income per unit:
Basic $ 0.00 $ 0.05 $ 0.16 $ 0.40
Diluted $ 0.00 $ 0.05 $ 0.16 $ 0.37
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CERF is an Alberta limited partnership engaged in the rental, sale and service of industrial and construction equipment. CERF trades on the TSX Venture Exchange under the symbol 'CFL.UN' and currently has 5,842,897 units issued and outstanding.'
Full financial statements and notes thereto as well as management discussion and analysis are available on the SEDAR website at www.sedar.com.
Neither 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 Canadian Equipment Rental Fund Limited Partnership
