The Canadian Equipment Rental Fund, doing business as 4-Way Rentals, posted a 22.8-percent rental revenue increase in the second quarter ended June 30, the company reported today, with CDN $2.41 million (about U.S. $2.46 million) compared with $1.95 million for the same period a year ago. For the first six months of 2011, CERF posted a 21.5-percent hike in rental revenue, from CDN $4.52 in the first six months of 2010 to CDN $5.5 million (about U.S. $5.63 million) this year.
On April 29, the company completed its acquisition of Maplethorpe Contractors, a private integrated waste management company. The company expects significant synergies to be realized in the future. Total revenues, excluding those contributed by MCL, for the quarter increased 29 percent.
Last week the board of directors approved an arrangement to convert CERF from a limited partnership to a taxable Canadian corporation. The arrangement must be approved by a 2/3 majority of the shareholders.
“The quarter ended June 30, 2011, incorporates the financial performance of Maplethorpe Contractors Ltd. with the results of the partnership,” said Wayne Wadley, CEO. “MCL represents a step change for the organization adding approximately $1.9 million in revenue since closing the acquisition … only for two of the three months of Q2 due to the closing date of the transaction being April 29, 2011. Revenues for the quarter increased 95 percent from the same period last year and increased 58 percent for the corresponding six-month periods. Rental and disposal operations from 4-Way and Smart-Way independently also saw an increase in revenues of 29 percent for Q2 and 30 percent for the six months compared to last year.”
Wadley added that 4-Way is experiencing increased activity levels in all sectors, “from new equipment sales to demand for more rentals, stemming from heightened economic activity in the Edmonton area but also from the expansion in the oil sands and construction of oil up-graders. Although Q2 saw a 29-percent increase in revenues it was tempered by wet weather that delayed some of the summer projects into the fall. This backlog is expected to put even further demand on our busy rental fleet. Indications from home builders are that they are expecting more activity as we approach 2012 which bodes well for continued rental equipment demand.”
Wadley added that with Smart-Way, the waste management division, making inroads into the Calgary market, 4-Way had added equipment to that market to service new contracts.
Edmonton, Alberta, Canada-based 4-Way Equipment Rentals is No. 90 on the RER 100.