Canada NewsWire
CALGARY, Aug. 8, 2019
CALGARY, Aug. 8, 2019 /CNW/ - Cervus Equipment Corporation ("Cervus" or the "Company") (TSX: CERV) today announced its financial results and operational highlights for the three months ended June 30, 2019.
"The second quarter results highlight two key messages for our business. First, the strength of our recurring, stable, and profitable product support business is made stronger by diversification of industry segments and geographies," said Angela Lekatsas, President and CEO of Cervus. "Second, our Western Canadian Agriculture operations are facing compounding headwinds that have highlighted opportunities to improve our profitability across market cycles."
Second Quarter 2019 Highlights
Three month | Six month | ||||||
($ thousands, except per share | 2019 |
| 2018 | 2019 |
| 2018 | |
Equipment revenue | 244,464 | (26%) | 328,788 | 405,705 | (20%) | 507,513 | |
Product support revenue | 83,141 | 4% | 79,797 | 156,698 | 5% | 149,778 | |
Total revenue | 327,605 | (20%) | 408,585 | 562,403 | (14%) | 657,291 | |
Gross profit | 46,879 | (19%) | 57,848 | 89,603 | (8%) | 97,198 | |
Income for the period | 2,817 | (70%) | 9,516 | 105 | (99%) | 7,568 | |
Income per basic share | 0.18 | (70%) | 0.61 | 0.01 | (98%) | 0.48 | |
EBITDA(1) | 11,981 | (38%) | 19,385 | 18,876 | (15%) | 22,078 | |
Adjusted income (loss) before income | 2,186 | (84%) | 13,621 | (554) | (105%) | 10,835 |
Second Quarter 2019 Summary
Revenue
Gross Profit
Selling, General and Administrative ("SG&A") Expenses and Net Finance Costs
Income
Inventory
Select Financial Information
Three month | Six month | ||||||
($ thousands, except per share | 2019 |
| 2018 | 2019 |
| 2018 | |
Equipment revenue | 244,464 | (26%) | 328,788 | 405,705 | (20%) | 507,513 | |
Product support revenue | 83,141 | 4% | 79,797 | 156,698 | 5% | 149,778 | |
Total revenue | 327,605 | (20%) | 408,585 | 562,403 | (14%) | 657,291 | |
Gross profit | 46,879 | (19%) | 57,848 | 89,603 | (8%) | 97,198 | |
Total other income | 1,390 | 85% | 751 | 2,495 | 84% | 1,354 | |
Selling, general and administrative | (42,397) | (3%) | (43,655) | (85,518) | 0% | (85,342) | |
Income from operating activities | 5,872 | (61%) | 14,944 | 6,580 | (50%) | 13,210 | |
Net finance costs | (3,061) | 106% | (1,485) | (5,911) | 120% | (2,692) | |
Share of income of equity accounted | - | (100%) | 124 | - | (100%) | 124 | |
Income before income tax expense | 2,811 | (79%) | 13,583 | 669 | (94%) | 10,642 | |
Income tax recovery (expense) | 6 | 100% | (4,067) | (564) | (82%) | (3,074) | |
Income for the period | 2,817 | (70%) | 9,516 | 105 | (99%) | 7,568 | |
Income attributable to shareholders | 2,817 | (70%) | 9,516 | 105 | (99%) | 7,568 | |
EBITDA(1) | 11,981 | (38%) | 19,385 | 18,876 | (15%) | 22,078 | |
Ratios | |||||||
Gross profit margin as a % of | 14.3% | 14.2% | 15.9% | 14.8% | |||
SG&A as a % of gross profit | 90.4% | 75.5% | 95.4% | 87.8% | |||
Income (loss) per share | |||||||
Basic | 0.18 | (70%) | 0.61 | 0.01 | (98%) | 0.48 | |
Diluted | 0.17 | (71%) | 0.58 | 0.01 | (98%) | 0.46 | |
Basic - Adjusted(1) | 0.15 | (75%) | 0.61 | (0.05) | (110%) | 0.49 | |
Reconciliation of adjusted income | |||||||
Income before income tax expense | 2,811 | (79%) | 13,583 | 669 | (94%) | 10,642 | |
Adjustments: | |||||||
Unrealized foreign currency (gain) | (625) | 38 | (1,223) | 673 | |||
(Gain) on sale of Commercial | - | - | - | (480) | |||
Adjusted income (loss) before income | 2,186 | (84%) | 13,621 | (554) | (105%) | 10,835 |
Conference Call Information
Cervus will host its second quarter 2019 results conference call and webcast on Friday, August 9, 2019 at 11:00 a.m. Eastern Time. President and CEO Angela Lekatsas and CFO Adam Lowther will discuss Cervus's financial and operating results for the quarter ended June 30, 2019, and then take questions from securities analysts and institutional shareholders.
Interested parties may access the conference call by dialling (647) 427-7450 or 1-888-231-8191. Please connect approximately 10 minutes prior to the beginning of the call. The conference call will be archived for replay until Friday, August 16, 2019 at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 3778254 followed by the number sign.
Interested parties may access the webcast of the conference call which includes a slide presentation at:
https://event.on24.com/wcc/r/2007003/5A8CD20CCB0D1295D149002717A8215B.
Please connect approximately 10 minutes prior to the beginning of the call to ensure adequate time for any software download that may be required to join the webcast and view the slides being presented. The webcast will be archived at the above website for 90 days.
About Cervus Equipment
Cervus acquires and operates authorized agricultural, transportation and materials handling equipment dealerships. The Company has interests in 63 dealerships in Canada, New Zealand, and Australia, employing more than 1,500 people. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Peterbilt transportation equipment; and Clark, Sellick, Doosan, JLG and Baumann material handling equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CERV".
Footnotes | |
(1) | These non-IFRS financial measures do not have any standardized meaning under IFRS, may not be comparable to similar measures presented by other issuers and are defined and reconciled to their most directly comparable IFRS measure within Cervus' Management's Discussion and Analysis for the quarter ended June 30, 2019 under the section "Non-IFRS Financial Measures", which is available electronically at www.sedar.com under Cervus' profile. |
Forward Looking Information
This press release contains certain forward‐looking information ("forward‐looking information") within the meaning of applicable Canadian securities laws. Forward‐looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. Forward‐looking information is not a guarantee of future performance and involves a number of assumptions and a number of risks and uncertainties some of which are described herein. These risks and uncertainties include the risks identified under the heading "Business Risks and Uncertainties" in the Second Quarter 2019 Management Discussion & Analysis of Cervus Equipment Corporation dated August 7, 2019, available electronically at www.sedar.com under Cervus' profile. Cervus believes the expectations reflected in such forward‐looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward‐looking information should not be unduly relied upon. You are cautioned that the preceding list of assumptions and risks is not exhaustive. Any forward‐looking information is made as of the date hereof and, except as required by law, Cervus assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Cervus Equipment Corp.
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