Cervus Announces Second Quarter 2020 Results, $6 Million Increase in Adjusted Income Before Income Tax(1)
Cervus Announces Second Quarter 2020 Results, $6 Million Increase in Adjusted Income Before Income Tax(1) |
[12-August-2020] |
CALGARY, AB, Aug. 12, 2020 /CNW/ - Cervus Equipment Corporation ("Cervus" or the "Company") (TSX: CERV) today announced its financial results and operational highlights for the three months ended June 30, 2020. Cervus generated $8 million in adjusted income before income tax, a nearly fourfold improvement compared to second quarter of 20191. This was driven by the strong performance of our Agriculture segment, supported by the profitability of our Transportation and Industrial segments despite the formidable challenges presented by the COVID-19 pandemic. "Achieving the current results in the face of COVID-19 is a testament to the dedication of the Cervus team, the resilience of our customers across all sectors, and our ability to deliver customer value in partnership with our Original Equipment Manufacturers across all market cycles," said Angela Lekatsas, President and CEO of Cervus. "While the results of the second quarter of 2020 have been particularly hard won, we continue to see the potential of our business as we focus on the attributes and capabilities that embody Cervus." Second Quarter 2020 Highlights
Second Quarter 2020 Results Increased profitability was driven by the performance of our Agriculture segment which serves producers in some of the most fertile land across Western Canada, New Zealand and Australia. This performance was enabled by the focus of our restructured team, enhanced by the right equipment models and level of inventory for our market, implementation of new product support initiatives, and sustainable cost reductions across the segment. This improvement was partly offset by the significant impact of COVID-19 on our Transportation and Industrial segments, which remained profitable in the quarter due to disciplined expense management, despite a decrease in demand. In response to the impact of COVID-19, we took proactive measures such as senior leadership and Corporate wage reductions, temporarily adjusting staffing levels and utilizing government work-share programs. In the implementation of these measures, our focus has been on supporting the people and families who comprise the decades of experience reflected in our customer service teams and ensuring we are ready to quickly respond to accelerating market demand when conditions ease. Due to the strong performance of our Agriculture segment, the Company did not qualify for payments under the Canadian Emergency Wage Subsidy ("CEWS") during the quarter, and the results of the quarter do not include any Canadian government assistance. However, subsequent to the quarter legislation was passed on July 27, 2020, which we anticipate will provide some limited eligibility for our Transportation and Industrial segments, retroactive to the second quarter of 2020. Revenue
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Conference Call Information Cervus will host its second quarter 2020 earnings results conference call and webcast on August 13, 2020, at 10:00 a.m. Eastern Time. President and CEO Angela Lekatsas and CFO Adam Lowther will discuss Cervus' financial and operating results for the quarter ended June 30, 2020, followed by questions from securities analysts and institutional shareholders. Interested parties may access the conference call by dialling (647) 427-7450 or 1-888-231-8191. Please connect approximately 10 minutes prior to the beginning of the call. The conference call will be archived for replay until Thursday, August 20, 2020, at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 7271827 followed by the number sign. The webcast of the conference call, which includes a slide presentation may be accessed at: Please connect approximately 10 minutes prior to the beginning of the call to ensure adequate time for any software download that may be required to join the webcast and view the slides being presented. The webcast will be archived at the above website for 90 days. Financial Results All financial information presented in this press release has been prepared in accordance with International Financial Reporting Standards ("IFRS") and are reported in Canadian dollars. This press release contains only selected financial and operational highlights and should be read in conjunction with Cervus' unaudited condensed interim consolidated financial statements and related notes and Management's Discussion and Analysis ("MD&A"), as at and for the three and six month periods ended June 30, 2020, which are available on SEDAR at www.sedar.com and on the Company's website at www.cervusequipment.com. Additional information is contained in the Company's filings with Canadian securities regulators, including the 2019 Annual Report and 2019 Annual Information Form, also available on SEDAR and the Company's website. Forward Looking Information Information in this press release and in other filings with Canadian securities regulators and in other communications include forward-looking statements within the meaning of applicable securities laws ("forward-looking statements"). These statements include, but are not limited to, statements about the Company's objectives, strategies and initiatives, financial performance expectations and other statements made herein, whether with respect to the Company's businesses or the economies of the countries where the Company operates. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases which state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur", "be achieved", or other similar expressions of future or conditional verbs. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to general economic conditions, the industries and customers served by the Company, its principal equipment partners, currency exchange rates, funding requirements, fluctuating interest rates, legislative and regulatory developments, changes in accounting standards, and competition as well as those factors discussed under the heading "Business Risks and Uncertainties" in Cervus' most recent annual and quarterly Management Discussion and Analysis ("MD&A"), available electronically at www.sedar.com under Cervus' profile. All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business, economic and market conditions and trends. Although the Company believes the assumptions used to make such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material assumptions are applied by the Company in making forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Footnotes
About Cervus Equipment The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release. SOURCE Cervus Equipment Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: Toronto:CERV |
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