CERF Inc., Calgary, Alberta, Canada-based parent company of 4-Way Equipment Rental, posted CDN $58 million (about U.S. $45.7 million) in 2014, a 24-percent increase compared to $46.8 million in 2013. For the fourth quarter, CERF increased 64 percent year over year to $20.5 million, compared to $12.5 million in the fourth quarter of 2013. Both increases were largely driven by the contributions of the assets acquired from Empire Tool and the acquisition of Winalta Inc. in May and August, respectively.
Equipment rental revenue increased 5 percent to $22.3 million, compared to $21.3 million in 2014. Fourth quarter 2014 revenue declined by $1.5 million or 22 percent, compared to Q413. The quarterly decrease, including declines in rental revenues on both owned and re-rented equipment, resulted from warmer average temperatures that reduced demand for the company’s large heater fleet. Margins for the fourth quarter decreased by $0.7 million or 30 percent as 18-percent decreases in direct costs were not significant enough to offset decreased revenue.
“We made large strides during the year, effectively acquiring and integrating two significant entities and expanding our footprint in Western Canada’s energy services industry,” said Wayne Wadley, president and CEO of CERF. “Both have added to our earnings and provide a great platform for future growth. With these acquisitions, CERF now has a balanced weighting of revenue between its industrials and energy services divisions.
“In context of current oil and gas market conditions, CERF has been proactive to reduce capital expenditures, staffing and operating costs for both divisions. These aggressive steps in combination with a strong balance sheet and industry diversification are the reasons why CERF is able to maintain its dividend. We will continue to be vigilant in monitoring the performance of each division.”
CERF’s Energy Services Division recorded record revenues of $21.5 million, a 165-percent year-over-year increase. The growth was primarily driven by the acquisition of Empire and Winalta. Revenue for CERF’s Waste Management segment declined $3.2 million or 19 percent, resulting from $3.6 million revenue generated from a one-time special project not repeated in 2014. Increased revenues derived from growth in the municipal solid waste volumes only partially offset the decrease.
4-Way Equipment Rental, based in Edmonton, Alberta, is No. 90 on the RER 100.
