Reversal for CERF LP in 2009

Apr. 26, 2010 – Canadian Equipment Rental Fund (CERF) Limited Partnership  reported a major decline in revenue and earnings in 2009 on Friday, citing its decision to hang onto equipment and staff despite falling sales during the recession.

The Calgary-based concern involved in the rental, sale and service of industrial and construction equipment posted full-year earnings of $420,952 or seven cents a diluted share, down sharply from $3.3 million or 56 cents a diluted share in 2008.

Revenue was $13.1 million, down 23 per cent from $17.1 million in 2008.

Wayne Wadley, president of CERF GP Corp., the general partner of Canadian Equipment Rental LP, said the economic downturn had a major impact on the results.

"Canadian Equipment Rental Fund LP was affected but survived, thanks in large part to our product and customer diversity, our conservative fiscal policies and the growth we have delivered over the past four years," he said in a statement.

Although the company institutes a number of "prudent" cost-cutting measures, it decided early in the recession not to make deep cuts in staff and equipment.

"Our experience has taught us that all recessions end and while the strategy not to make deep cuts would cause us some short-term pain in 2009, when the recession finally ended we would be in good position to benefit from the recovery," Wadley said.

"Skilled labour is essential to our services and investing in people has always been a key to our success," he said. "…In the future, other rental companies will struggle to attract key personnel and rebuild their rental fleets to meet the renewed customer demand. Because of our longer term strategies, we feel we will be ahead of these competitors. …"

Meanwhile, Wadley said early indications from the first quarter indicate that "2010 will be a better year for the partnership."

The company's units were down 40 cents at $2.50 in midday trading Friday on the TSX Venture Exchange.