CALGARY, Alberta — Cervus Equipment Corp. (TSX: CVL) announced its financial results and operational highlights for the quarter ended September 30, 2014. 

"Enabled by the strong relationships with our OEMs, Cervus executed on its growth strategy by acquiring Peterbilt of Ontario, further diversifying revenue streams with 13 transportation dealerships in Ontario. Subsequent to quarter end, the Company completed the acquisition of Evergreen Equipment representing four John Deere dealerships. Overall, we increased our Canadian footprint by a total of 17 dealerships in 2014," said Graham Drake, president and CEO of Cervus. "Record third quarter revenues were achieved in our agriculture segment due to the late harvest, and improved farm cash flow from the resolution of grain transportation issues. Our same store Ag equipment sales year to date 2014 are now within 1.6% of the equipment sales achieved in the nine months ended September 30, 2013." 

Highlights of the Quarter

  • On August 11, 2014, the Company acquired the business and assets of Peterbilt of Ontario Inc. ("POI"), adding 13 Peterbilt dealerships throughout Ontario, with average revenues over the past three years of $157 million. 
  • On September 18, 2014, the Company announced a Definitive Agreement to acquire Evergreen Equipment Ltd. and completed the acquisition subsequent to quarter-end, adding four John Deere dealerships in Alberta with average revenues over the past three years of $87 million. 
  • Revenue for the three months ended September 30, 2014 was $286.2 million, an increase of $36.8 million, or 14.8%, over the same period in 2013. 
  • Gross profit dollars increased $4.9 million to $52.3 million for the three months ended September 30, 2014, when compared to the period ended September 30, 2013. 
  • On a same store basis, selling, general and administrative ("SG&A") costs as a percentage of revenue declined to 13.9% for the three month period ended September 30, 2014, compared to 14.1% for the same period in 2013. 
  • Net profit attributable to shareholders for the three months ended September 30, 2014 decreased $0.9 million to $7.7 million, partly attributable to $1.0 million of acquisition costs in the quarter. 
  • Dividends of $0.2075 per share were declared to shareholders of record as at Sept. 30, 2014. 
  • The Company improved to #72 from #78 on the Alberta Venture's 2014 Venture 250 rankings. 

As at September 30, 2014, Cervus had working capital of $95.3 million, including $8.7 million in cash and cash equivalents, down $17.9 million compared to $113.2 million at December 31, 2013. 

Selected Quarterly Information (in $ thousands, except per share amounts)
  3 Months Ended Sept. 30 2014 3 Months Ended Sept. 30 2013 % Change 9 Months Ended Sept. 30 2014 9 Months Ended Sept. 30 2013 % Change
 
Revenues 286,192 249,393 14.8% 690,569 635,325 8.7%
Gross Profit 52,345 47,445 10.3% 130,719 120,122 8.8%
Gross Profit Percentage 18.3% 19.0% -3.7% 18.9% 18.9% 0.0%
Net Profit 7,707 8,741 -11.8% 12,568 16,954 -25.9%

Net Profit Attributable

to shareholders

 7,707 8,646 -10.9% 12,492 16,841 -25.8%
Per Share - Basic  0.51 0.58 -12.1% 0.83 1.13 -26.5%
Per Share - Diluted 0.49 0.55 -10.9% 0.79 1.08 -26.9%
Cash Provided (used) in operating activities 22,145 20,046 10.5% 40,831 18,252 123.7%
Per Share - Basic 1.46 1.34 9.0% 2.70 1.22 121.3%
EBITDA (1) 17,599 17,242 2.1% 34,902 38,766 -10.0%
EBITDA margin (1) 6.1% 6.9% -11.6% 5.1% 6.1% -16.4%
Per Share - Basic 1.16 1.15 0.9% 2.31 2.59 -10.8%
Dividends Declared to Shareholders 3,159 2,961 6.7% 9,351 8,756 6.8%
Per Share 0.2075 0.2000 3.7% 0.6150 0.5900 4.2%
Weighted Shares Outstanding  
Basic 15,148 14,989 1.1% 15,106 14,955 1.0%
Diluted 15,884 15,650 1.5% 15,844 15,615 1.5%
Actual Shares Outstanding 15,156 14,993 1.1% 15,156 14,993 1.1%
Closing Market Price Per Share 18.90 20.79 -9.1% 18.90 20.79 -9.1%
Total Assets   604,257 455,311 32.7%
Long-term Liabilities   102,372 79,493 28.8%
Total Liabilities   382,150 240,601 58.8%
Shareholders' Equity   222,107 211,192 5.2%
Net Book Value Per Share - Diluted   14.02 13.52 3.7%
Note: (1) These financial measures are identified and defined under the section "Non-IFRS Financial Measures."