Cervus Equipment Corp., John Deere’s only publicly traded farm equipment dealer group, reported last week that its net profit for the year increased by $6.5 million, or 35.6%, to $24.6 million for the year ended 2012 from $18.1 million in 2011.

The Calgary, Alberta-based company also said its gross revenue increased by $174.6 million or by 31.2% to $734.2 million for the year ended 2012 from $559.6 million in 2011. Same store sales increased 12.7% or $71.2 million last year.

The dealership group currently operates 55 locations in Western Canada, New Zealand and Australia handling ag, commercial, industrial and transportation equipment.

“Cervus experienced strong overall growth in 2012 driven largely by our agricultural equipment segment and the Frontier Peterbilt transportation group we acquired in March. Based on the positive market outlook in these sectors, we expect continued growth in 2013,” said Graham Drake, president and CEO of Cervus. “We also continued to execute on our international growth strategy by expanding in New Zealand and entering into the Australian market during 2012.”

Slightly more than 31% of total revenue, or $70.7 million, for the year came from the agricultural equipment segment and $116.5 million from the commercial and industrial equipment segment. Same store revenue increased $71.2 million, or 12.7%, ($62.5 million or 15.3% from the agricultural equipment segment and $8.7 million or 5.8% from the commercial and industrial equipment segment).

For the year ended December 31, 2012, overall gross margin increased slightly to 19.1% from 19% reported in 2011, an increase of 10 basis points. The increase in sales, combined with the marginal change in overall gross profit margins, resulted in an increase in profit for the year ended 2012 when compared to 2011 of $6.5 million or 35.6%. Selling, general and administrative expenditures remained the same in 2012 at 14.8% of total revenue when compared to 2011.

EBITDA increased by $12.8 million to $48.4 million, or $3.14 per fully diluted share in 2012 compared with $2.36 per fully diluted share for the same period in 2011. The most significant factor contributing to the increase in EBITDA for the year was the increase in net profit before income taxes, which amounted to $7.7 million.

As at December 31, 2012, Cervus had working capital of $90.2 million, including $8.2 million in cash and cash equivalents, up $11.1 million compared to $79.1 million at December 31, 2011.

The company also announced its board of directors of has approved a cash dividend to Cervus shareholders of $0.1925 per share for the first quarter of 2013. Payment will be made on or about April 15, 2013 to shareholders of record as of the close of business on March 28, 2013. 

Cervus Equipment Corp. Selected Annual Information