521 0 Kommentare CERF Incorporated Announces 2015 Second Quarter Results - Seite 2

SELECT FINANCIAL RESULTS

Revenue decreased by 7.2% in the quarter ended June 30, 2015 to $9.3 million when compared to the $10.0 million generated in the prior year's quarter. The decrease was largely the result of declines in both the Industrial Rentals and the Waste Management segments. The declines were partially offset by a $1.1 million increase from the Oilfield Rentals segment, which benefited from the addition of the operations of Winalta and the assets of Empire.

Net income decreased from $0.3 million in the second quarter of 2014 to a net loss of $2.0 million in the quarter ended June 30, 2015. The loss was due in part to weaker revenues resulting from fewer active drilling rigs, increased competition in the Edmonton construction rentals market, and a decrease in special waste volumes originating from the oil and gas sector.

Adjusted EBITDA for the quarter ended June 30, 2015 was $1.3 million compared to $2.6 million for the similar quarter in 2014.

SELECT OPERATING RESULTS

Energy Services Division

TRAC reported revenues of $2.4 million in the second quarter, an increase of 96% over Q2 2014. This growth was driven primarily by the acquisition of Winalta and Empire, contributing $1.8 million revenue. TRAC's revenue excluding the Winalta and Empire acquisitions decreased 50% from the comparable quarter in 2014. Low oil prices have reduced drilling activities in western Canada, resulting in lower utilization of rental assets and a corresponding decrease in revenue.

Gross margin was negative 33% in the second quarter of 2015. The gross margin loss resulted from increased rent, depreciation costs and decreased margin on third party revenue when compared to the second quarter of 2014.

Industrials Division - Equipment Rentals & Waste Management Segments

Industrial Rentals Segment

Industrial rental revenue declined by $0.5 million or 16% compared to the similar quarter in 2014. As noted in prior quarters, the decrease resulted from a combination of factors which include: reduced rental day rate pricing because of increased competition, and decreased fleet utilization because of certain construction projects delays, which have been affected by the weakened economy.

Gross margin for the quarter ended June 30, 2015 decreased 61% to $303,000 in the second quarter of 2015. The decrease was largely due to the factors listed above.