Canadian Equipment Rental Fund Limited Partnership
TSX VENTURE : CFL.UN

September 12, 2005 12:45 ET

Canadian Equipment Rental Fund Limited Partnership: News Release

CALGARY, ALBERTA--(CCNMatthews - Sept. 12, 2005) - Canadian Equipment Rental Fund Limited Partnership (TSX VENTURE:CFL.UN) (the "LP") operating as 4-Way Equipment Rentals has just completed its financial information for the three months ended June 30, 2005. Financial statements and management discussion and analysis are available at www.sedar.com.

Formation and structure of the Partnership

The Partnership was formed under the laws of Alberta on January 21, 2005.

On January 24, 2005, the LP entered into an agreement (the "Agreement") with 4-Way Equipment Rentals Ltd. ("4-Way") and Affirm Capital Inc. ("Affirm"), a TSX Venture listed company. Under the Agreement the LP acquired the operating name, business assets and goodwill and assumed the liabilities of 4-Way. As consideration the LP issued 2,100,000 LP units, and promissory notes in the amount of $859,764. Concurrently with the Agreement, Affirm subscribed for 1,036,300 LP units. Upon the closing of the agreement Affirm distributed the 1,036,300 LP units to its shareholders and will apply for voluntary dissolution in due course. This resulted in the LP units being listed on the TSX Venture Exchange on June 27, 2005.

The transaction was accounted for as a reverse takeover because 4-Way controlled the LP upon the closing of the agreement. Under the reverse takeover 4-Way is deemed to be acquirer and continuing entity. The acquisition of the LP and Affirm was accounted for using the purchase method. Canadian Equipment Rental Fund Limited Partnership is deemed to be the continuation of 4-Way Equipment Rentals Ltd. reorganized into a public limited partnership. To reflect this continuity the comparative periods presented prior to June 23, 2005 are those of 4-Way.

Wayne Wadley President of the General Partner CERF GP Corp. comments: "the partnership's sales for the period were $1,276,046 compared to $856,282 for the three months ended July 31, 2004. Income before tax was $110,089 compared to a loss of ($15,418) for the prior year.

Demand for rentals continues to be strong across the entire customer base as all industries experience high demand. Of particular note early this spring was the demand for compaction equipment and air compressors as project starts continue to bolster the rental market. We saw a slight dip in sales late in the quarter as a particularly prolonged rainy period slowed jobsite progress. Normally this leads to increased demand down the road but this peak has not yet hit.

Equipment sales, both new and used continue to be strong as confidence abounds with contractors looking at projects lined up ahead of them for the next 2 to 5 years, depending on the industry. Recent predictions indicate increased demand for rental equipment as key customers acquire increased workloads.

4-Way was able to meet the higher demands in some key areas due to our aggressive fleet expansion program but we are still challenged to supply equipment to meet the demand in all areas. Key shortages at present are in the extended reach forklift and reach equipment areas.

As major projects in Northern Alberta demand more services from the Edmonton area, demand for new, larger, and/or improved fabrication facilities increases. Along with this demand is the need for rental equipment to create these facilities. Recent announcements for increased large diameter pipeline capacity should also have future impact on the rental industry. Increased demand normally leads to increased rental rates and profitability across the market."

Canadian Equipment Rental Fund LP is a Canadian limited partnership and trades on the TSX Venture Exchange under the symbol "CFL.UN". The LP currently has 3,136,301 partnership units issued and outstanding.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • CERF GP Corp., the General Partner
    Wayne Wadley
    President
    (403) 261-3835
    Email: wwadley@4-way.com
    or
    CERF GP Corp.
    Ken Stephens
    C.F.O.
    (403) 298-8695
    Website: www.4-way.com