CERF Incorporated Announces Audited Financial Results for the Year Ended December 31, 2013

CALGARY, ALBERTA--(Marketwired - April 28, 2014) - Mr. Wayne Wadley, President of CERF Incorporated (the "Company" or "CERF")(TSX VENTURE:CFL), is pleased to announce audited financial and operating results for the Company for the year ended December 31, 2013.

Full details of the Company's financial results, in the form of the audited consolidated financial statements and notes thereto for the year ended December 31, 2013 and Management's Discussion and Analysis of the results are available on SEDAR at www.sedar.com and on the Company's website at www.cerfcorp.com.

Selected Highlights of the year ended 2013 include:

• Revenue increased 38% to $46,757,000 for the year ended December 31, 2013 versus the year ended December 31, 2012;

• Net income increased 1,094% to $3,129,000 or $0.23 per basic share in 2013 versus $262,000 or $0.02 per share in 2012;

• Adjusted EBITDA increased 64% to $13,027,000 for the year ended December 31, 2013 versus $7,960,000 for 2012. Further, EBITDA per share, basic in 2013 was $0.96 versus $0.76 in 2012;

• The Company paid dividends of $0.24 per share to shareholders in 2013 while reducing the annualized payout ratio to 52% from an annualized payout ratio of 76% in 2012;

• Adjusted free cash flow generated during 2013 was $6,521,000 compared to adjusted free cash flow of $3,214,000 in 2012;

• Long term debt was reduced by $7,789,000; and

• Debt to equity was improved to a ratio of 0.95 to 1.00 from a 2012 debt to equity ratio of 2.05 to 1.00.

Summary of fourth Quarter and Year to Date Consolidated Financial Results:

In C$,000's except percentages and per share data	Q42013		Q42012		$change	%		YTD 2013		YTD2012		$change	%
Revenue	12,522		11,252		1,270	11	%	46,757		33,770		12,987	38	%
Direct Expenses	9,260		8,346		914	11	%	34,687		27,159		7,528	28	%
Gross Margin %	26	%	26	%		0	%	26	%	20	%		6	%
Net Income	1,005		669		336	50	%	3,129		262		2,867	1,094	%
Net income per share, basic	0.06		0.06		-	0	%	0.23		0.02		0.21	1050	%
Adjusted EBITDA	3,629		3,372		257	8	%	13,027		7,960		5,067	64	%
Adjusted Free Cash Flow	2,006		1,937		69	4	%	6,521		3,214		3,307	103	%
Trailing 12 Month payout ratio								52	%	76	%		(24	)%
Dividend per share	0.06		0.06		-	0	%	0.24		0.24		-	0	%

Summarized financial results for the year ended December 31, 2013 follow:

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

IN THOUSANDS OF CANADIAN DOLLARS

		December 31, 2013		December 31, 2012
Assets
Current assets:
	Cash	557		-
	Accounts receivable	8,433		7,765
	Inventory	1,561		1,369
	Income taxes recoverable	-		590
	Prepaid expenses and deposits	397		297
		10,948		10,021
Non-current assets:
	Long term receivable	238		456
	Property and equipment	36,890		35,041
	Intangibles and goodwill	10,714		11,719
		47,842		47,216
Total assets		58,790		57,237
Liabilities and Shareholders' Equity
Current liabilities:
	Bank indebtedness	-		1,569
	Accounts payable and accrued liabilities	5,339		5,771
	Dividends payable	963		700
	Income taxes payable	559		-
	Current portion of long-term debt	1,502		4,430
	Current portion of finance leases	314		451
		8,677		12,921
Non-current liabilities:
	Long-term debt	14,801		19,662
	Obligation under finance leases	4,106		4,420
	Deferred income taxes	2,115		2,190
		21,022		26,272
Total liabilities		29,699		39,193
Shareholders' equity
	Share capital	32,894		22,897
	Warrants	835		-
	Share purchase loans receivable	(148	)	(203	)
	Contributed surplus	744		387
	Deficit	(5,234	)	(5,037	)
		29,091		18,044
Total liabilities and shareholders' equity		58,790		57,237

CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME

IN THOUSANDS OF CANADIAN DOLLARS

		Year ended December 31
		2013	2012
Revenues		46,757	33,770
Direct expenses
	Direct operating costs	25,284	18,786
	Cost of sales of equipment, fuel and parts	3,716	3,391
	Depreciation of equipment	5,687	4,982
		34,687	27,159
	Gross margin	12,070	6,611
Operating expenses
	General and administrative	4,999	3,638
	Depreciation of other property and equipment	108	98
	Amortization of intangible assets	1,005	678
	Impairment of goodwill	-	203
	Business acquisition expenses	15	241
		6,127	4,858
Other expenses
	Finance costs	1,590	1,352
Income before income taxes		4,353	401
Income taxes
	Current	989	276
	Deferred	235	(137	)
		1,224	139
Net income and comprehensive income for the year		3,129	262
Net income per share
	Basic	$ 0.23	$ 0.02
	Diluted	$ 0.23	$ 0.02

The Company is also announcing it has retained 5 Quarters Investor Relations, Inc. ("5QIR") to provide strategic investor relations (IR) services on behalf of the Company. 5QIR is a Calgary-based capital markets communications firm providing strategic counsel on financial communications, continuous disclosure compliance and proactive corporate outreach programs.

Under the terms of the agreement, 5QIR will provide investor relations services to the Company for two six month terms, subject to termination upon 30 days' written notice by either party. As consideration for the services, 5QIR will be paid a retainer fee of $7,000 per month. 5QIR acts at arm's length to CERF and does not have any interest, directly or indirectly, in CERF or its securities, or any right or intent to acquire such an interest. 5QIR has many years of experience managing in-house IR programs for numerous issuers.

The appointment of 5QIR remains subject to approval by the TSX Venture Exchange.

About CERF Incorporated

CERF is in the equipment rental business (the "Equipment Rental Segment") and the waste management business (the "Waste Management Segment") in Alberta. The Equipment Rental Segment includes the rental of residential, commercial and industrial construction-related equipment, including sales and service of equipment. It also includes the rental and sale of equipment to the drilling and service sectors of the oil and natural gas industry. The Waste Management Segment consists of complete waste facility management (six landfill sites in central Alberta) including waste facility design and construction services, recycling management and collection services, and consulting services. The Waste Management Segment also consists of waste removal and disposal from commercial, industrial and residential customers. CERF Incorporated trades on the TSX Venture Exchange under the symbol "CFL".

About 5QIR

Based on the belief that effective Investor Relations goes beyond four quarters, 5 Quarters Investor Relations, Inc. was established to support public companies with financial communications, continuous disclosure compliance and proactive investor outreach programs. The firm is based in Calgary, Alberta, and is owned and operated by Cindy Gray, a seasoned IR professional with over 16 years of experience working in IR as well as leading the oil & gas business development practice for TSX and TSX Venture Exchange from Calgary. For further information, please visit www.5qir.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.