CERF GP Corp., the general partner of Canadian Equipment Rental Fund Limited Partnership, is pleased to report the results for the second quarter ended Sept. 30, 2005.
The three months ended Sept. 30, 2005 represent the first quarter of operations as a limited partnership since Edmonton, Alberta-based 4-Way Equipment Rentals Ltd. reorganized to become Canadian Equipment Rental Fund, a public limited partnership. To reflect this continuity the comparative periods presented prior to June 23, 2005 are those of 4-Way, which had a 2004 year end of April 30, therefore the comparative quarters are the three months ended July 31, 2004, Oct. 31, 2004 and Jan. 31, 2005. Net income for the quarter was $153,266 and $254,355 for the six months that ended. This represents basic earnings per unit of $0.049 for the three months and $0.096 for the six month period.
"Our success this quarter has been accomplished through our focus on improved utilization and expanding our rental fleet,” said Wayne Wadley, president of Canadian Equipment Rental Fund. “The fact that sales for the quarter ended Sept. 30, 2005 exceeded sales for the quarter ended Oct. 31, 2004 and that net income for the current quarter were almost equal to those of the 2004 quarter is a great achievement and represents a significant increase in sales volume while controlling costs.
Demand for rental equipment in the construction and industrial sectors continues to be strong heading into the winter season, company officials said. Equipment shortages in key areas remain prevalent as renovation and new construction contractors in the residential, commercial, and light industrial sectors attempt to complete projects before the colder weather arrives. The industrial maintenance sector was busy this quarter as maintenance contractors struggled to meet tight plant maintenance schedules. Many of the plants that had put their maintenance projects on hold in latter 2003 and 2004 have begun to execute their maintenance schedules putting a strain on refractory companies. The seasonally warm weather helped many customers complete projects ahead of schedule and rent equipment longer than anticipated.
The company also said that recent economic forecasts for its Alberta trading area indicated demand will continue to grow with new projects coming online in the Fort McMurray region and throughout northern Alberta. Edmonton continues to be the hub of manufacturing and service sectors that support conventional oil and gas drilling and the development of the oil sands.
