CALGARY - Cervus Equipment Corporation ("Cervus" or the "Company") (TSX: CERV) today announced its financial results and operational highlights for the quarter ended June 30, 2018.
"The strength of the Canadian Agriculture segment has once again generated a record sales quarter with the highest new equipment deliveries to customers for a single quarter in Cervus' history. In Ontario, our transportation dealership performance is continuing the positive trend from the first quarter of 2018, a result of efficiency improvements, cost management efforts and positive market demand," said Graham Drake, President and CEO of Cervus. "Looking ahead, weather factors throughout the growing months and into harvest season will impact used equipment demand, as well as parts and service opportunities in our Agriculture segment, while we reaffirm our commitment to profitability in the Transportation segment for 2018."
Highlights of the Quarter:
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- Income in the second quarter of 2018 was $9.5 million, a $1.1 million improvement compared to income of $8.4 million for the same period of 2017.
- For the three months ended June 30, 2018, adjusted income before income tax expense(1) was $13.6 million, a $3.2 million improvement compared to $10.4 million of adjusted income before income tax expense in the second quarter of 2017.
- The Company reported income per basic share of $0.61 in the second quarter of 2018, a $0.08 per share improvement compared to income of $0.53 per basic share in the second quarter of 2017.
- The Transportation segment achieved a $1.1 million improvement in adjusted income before income tax expense(1), due to a $1.3 million improvement in the Ontario Transportation dealerships.
- Cervus achieved record second quarter new equipment sales in our Agriculture segment, increasing 24% compared to the second quarter of 2017.
- Selling, general, and administrative ("SG&A") as a percentage of revenue improved to 10.7% in the current quarter, compared to 12.6% in the second quarter of 2017.
- Dividends of $0.10 per share were declared to shareholders of record as of June 29, 2018.