Cervus Equipment Corp. reports that its revenue from sales of ag and construction equipment increased by $28.8 million to $377.5 million compared with $348.7 million in 2008 for the year ended December 31.
Same-store agricultural equipment segment sales remained strong and contributed $31.7 million of the overall increase. Total same-store sales were $325.6 million for 2009 compared to $338.3 million in 2008, a falloff of $12.7 million due to the decrease in sales in the construction equipment segment.
Net earnings decreased by $5 million in 2009 to $17.2 million. The agricultural equipment segment contributed $18 million — an increase of $2.2 million over 2008. The construction equipment segment incurred a loss of $831 thousand — a decrease of $7.2 million from 2008. Revenues and earnings for the agricultural equipment segment have continued to outperform the construction equipment segment during 2009, which had been anticipated due to stronger global grain commodity prices and increased farm income in contrast to the decreased housing and construction sectors of the Alberta economy. The construction equipment segment operates solely in the Alberta market.
As a result of our decrease in earnings and non-cash working capital adjustments of $15.4 million, cash flows from operating activities decreased to $7.7 million ($0.55 per basic share) from $26.4 million ($2.02 per basic share) in 2008 and EBITDA1 decreased to $24.4 million ($1.73 per basic share) in 2009 when compared to $27.9 million ($2.13 per basic share) for 2008.
Peter Lacey, CEO said, "We are very pleased with the performance of our agriculture sector in 2009. The overall reduction in earnings was caused primarily from the economic downturn being experienced during the year and the affect it has had on our construction equipment segment, whose overall revenues decreased by over 40%. In addition we incurred fairly substantial costs related to our conversion to a public corporate entity from a public limited partnership, including $850 thousand in professional fees and $900 thousand related to future income taxes on conversion.
“I am also pleased that even in these economically challenging times we have been successful in expanding through acquisition. We purchased three John Deere dealership stores in Alberta and British Columbia and have also established partnerships with other successful entities. Through our investment in Agriturf Ltd. we hope to close during the second quarter of 2010 on a 42% interest in a group of John Deere dealerships operating on the north island of New Zealand.