Alberta’s CERF Enjoys Strong Q3 Rental and Total Revenue Growth

Nov. 30, 2012
Canadian Equipment Rental Fund (CERF), owner of Edmonton, Alberta, Canada-based 4-Way Equipment Rentals posted a 6-percent third-quarter year-over-year increase in its rental revenue, coming in at CDN $3.9 million (U.S. $3.9 million).

Canadian Equipment Rental Fund (CERF), owner of Edmonton, Alberta, Canada-based 4-Way Equipment Rentals posted a 6-percent third-quarter year-over-year increase in its rental revenue, coming in at CDN $3.9 million (U.S. $3.9 million). The company’s total revenue, including its oilfield rental and waste management segments increased 11 percent in the third quarter to $7.8 million.

For the first nine months of 2012, the company increased 27 percent compared to the same period a year ago, to $22.5 million.

“The company is pleased to be in the ‘sweet spot’ of North America in terms of the strong secular growth trends driving the Alberta economy and in turn the company’s equipment rental business and waste management business,” said CEO Wayne Wadley. “For example, according to the Conference Board of Canada’s Fall Outlook, Edmonton had a real GDP growth of 6.3 percent in 2011 and is forecasted to grow at 4.6 percent in 2012, the highest growth of 3.8 percent in 2012. And Edmonton and Calgary are expected to be the fastest-growing economies in Canada over the next four years. Construction and the oil sands have put Edmonton’s growth at the top of the country and are driving the economy. Approximately 97 percent of Alberta’s oil is found in the greater Edmonton service area where both our equipment rental business and waste management business are located.”

Wadley said the company will continue to grow organically and by acquisition.

“Currently, activity levels are high as the weather turned cold quickly in the Edmonton market and created significant demand for our large-sized heater fleet,” said Wadley in discussing the prospects for the rental business. “Much of this equipment is scheduled to be rented for most of the winter. Historically, the equipment rental business rents certain equipment specifically designed and required for cold weather construction in the winter months. As a result, the equipment rental business’ revenues and cash flows are greater in the first and fourth quarters of the year than they are in the summer months.”

Edmonton-based 4-Way Equipment Rentals is No. 94 on the RER 100.