Cervus Announces $40M Increase in 2020 Adjusted Income
CALGARY, AB,Ā March 11, 2021Ā /CNW/ – Cervus Equipment Corporation (“Cervus” or the “Company“) (TSX: CERV) today announced its financial results for the quarter and year endedĀ December 31, 2020. Cervus also announced, as part of its strategy to grow product support offerings, a new agriculture facility planned nearĀ Penhold, AlbertaĀ and the acquisition of Vapormatic distribution rights for the North Island ofĀ New Zealand.
2020 Highlights
- Cervus reported income ofĀ $25 millionĀ in 2020, compared to a loss ofĀ $9 millionĀ in 2019.
- Adjusted income before tax increasedĀ $40 million, excluding the impact of wages subsidies, toĀ $28 million, compared to an adjusted loss before tax ofĀ $13 millionĀ in 2019.
- Total revenue increased 8% in the year, comprised of a 12% increase in Agriculture revenue, a 1% increase in Transportation revenue, partly offset by a 12% decrease in Industrial revenue.
- Agriculture used equipment inventory turnover for the trailing twelve-month period endedĀ December 31, 2020, surpassed our long-term objective of 2.50 times, improving to 2.87 times compared to 1.78 times atĀ December 31, 2019.1
- Adjusted free cash flow from operations wasĀ $53 millionĀ for the year endedĀ December 31, 2020, compared toĀ $21 millionĀ in 2019, an increase ofĀ $32 million.1
- The Company repurchased and cancelled 0.3 million shares under its Normal Course Issuer Bid at a cost ofĀ $2.1 millionĀ for the year, and declared an increase in the dividend toĀ $0.11Ā per share for the first quarter of 2021.
New Agriculture Facility Planned Near Penhold, Alberta
To better serve the Central Alberta region, our Red Deer and Olds John Deere dealership locations will be combining into a new facility near Penhold, Alberta, which is anticipated to be in service in early 2022. The new facility will offer increased parts availability and technician specialization, while utilizing technology to provide an enhanced customer experience. A training facility will also provide our customers and team with expanded learning and growth opportunities, while the new location will provide easier access for customers and their equipment.
Acquisition of Vapormatic Distribution Rights for the North Island of New Zealand
The Cervus New Zealand team is pleased to announce the acquisition of Vapormatic’s exclusive distribution rights for the North Island, effective February 28, 2021. Vapormatic sells replacement parts for multiple brands of agriculture equipment, providing Cervus the opportunity to grow our product support offerings for this region.
2020 Annual Results
Our annual results demonstrate significant progress towards our strategic objectives, including a dramatic improvement in profitability, despite the challenges presented by the pandemic.