Cervus Equipment Corp. has announced its financial results and operational highlights for the quarter ended September 30, 2013.

"Record harvests in Western Canada contributed to a consecutive quarter of record overall revenue," said Graham Drake, President and CEO of Cervus. "The bumper crop is a positive indicator of farm incomes for the 2013 crop year, while the steady growth we are seeing in our Commercial and Industrial segment indicates a more positive outlook into the fourth quarter."

Highlights for the Quarter

  • Revenue for the three months ended September 30, 2013 increased by $26.8 million to $260.8 million, compared to $234.0 million for the three months ended September 30, 2012.

  • Same store revenue for the three month period ended September 30, 2013 increased $12.0 million to $246.0 million compared to total same store revenue of $234.0 million for the three months ended September 30, 2012.

  • Net profit available to shareholders for the three months ended September 30, 2013 was $8.6 million, consistent with the three months ended September 30, 2012.

Financial Highlights

During the three month period ended September 30, 2013, revenue grew by $26.8 million or 11.5% to $260.8 million compared to the same period in 2012. This increase is attributable to a revenue increase in the agricultural equipment segment of 8.9% (increase of 0.1% on a same store basis) and an 18.4% increase in revenues in the commercial and industrial equipment segment.

Profit for the three month period ended September 30, 2013 remained consistent at $8.6 million, primarily due to increased equipment sales volume offset by margin pressure on equipment, increased amortization on trade name intangibles, and increased commission expense on higher unit sales. Selling, general and administrative expenditures increased to 13.5% of total revenue for the three month period ended September 30, 2013, compared to 12.7% for the same period in 2012.

As at September 30, 2013, Cervus had working capital of $113.8 million, up $26.6 million when compared to $87.1 million at December 31, 2012.