In announcing its second-quarter earnings ended June 30, Cervus Equipment Corp. said it posted record revenues during the period.
Graham Drake, president and CEO of the Calgary, Alberta-based John Deere dealer group, said, “During the second quarter, corporate sales initiatives and positive customer outlook contributed to a 48% increase in agricultural equipment sales and record overall quarterly revenue.“Having established operations in Australia in July of last year, Cervus increased our interest in Windmill in the second quarter, which is another step forward in Cervus’ proven consolidation process.”
Highlights for the Quarter:
– On May 28, 2013, Cervus purchased an additional 18.6% interest in Windmill AG Pty Ltd. for $1.8 million, comprising a $0.5 million equity investment and a $1.3 million shareholder loan, increasing the company`s ownership interest in Windmill to 53.3%.
– Revenue increased by $58.1 million or 29.6% to $254.8 million for the quarter ended June 30, 2013, from $196.7 million in 2012. Same store sales increased 24.6% or $48.3 million to $244.9 million.
– Profit increased by $1.3 million or 17.3% to $8.7 million for the quarter ended June 30, 2013, from $7.4 million in 2012.
During the 3 month period ended June 30, 2013, revenue grew by $58.1 million or 29.6% to $254.8 million compared to the same period in 2012. This increase is attributable to a revenue increase in the agricultural equipment segment of 45.5% (37.5% on a same store basis) and a 2.6% increase in revenue in the commercial and industrial equipment segment.
Profit for the 3 month period ended June 30, 2013 increased by $1.3 million to $8.7 million. This increase is primarily due to sales volume increases, partially offset by a decrease in overall gross margin and an increase in interest expense. Selling, general and administrative expenditures decreased to 12.9% of total revenue for the three month period ended June 30, 2013, compared to 14.6% for the same period in 2012.
As at June 30, 2013, Cervus had working capital of $99.8 million, up $9.6 million when compared to $90.2 million at December 31, 2012.
About Cervus Equipment Corp.
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 55 dealership locations in Western Canada, New Zealand and Australia. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick, Nissan and Doosan material handling equipment; and Peterbilt transportation equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL."