While revenues were basically flat in the second quarter compared to last year’s second quarter, Calgary, Alberta, Canada-based CERF Inc., parent company of 4-Way Equipment Rentals, increased net income to $257,000 versus a net loss of $134,000 during the second quarter of 2013. Adjusted EBITDA increased 46 percent to $2.6 million for the quarter compared to $1.78 million for the year-ago period. Total revenues were $10,014,000 compared to $10,065,000 a year ago.
“Despite several construction-related project delays that impacted our 4-Way business, we are very pleased to announce the eighth consecutive quarter in which CERF has delivered results exceeding those reported a year earlier,” said Wayne Wadley, president and CEO.
The second quarter was an eventful one for CERF. On May 28, it enhanced its capability to provide equipment used in directional drilling applications with the acquisition of the business and assets of Empire Tool Inc., a privately owned oilfield service and rental business for $9.2 million. And on June 26 CERF announced the proposed merger with Winalta Inc., a publicly traded oilfield accommodation rentals business.
“The additions of Empire and Winalta greatly enhance our size and scope in the oilfield rental and services space,” said Wadley. “Both acquisitions complement and significantly grow our equipment fleet, enabling us to service a much broader customer base. Subject to shareholder approval on August 27, 2014, we look forward to welcoming the entire Winalta team to join us in continuing to expand our business and add value for our shareholders.”