Revenue increased 38 percent to CDN $46.8 million (about U.S. $43 million at current exchange rates) in 2013, according to preliminary unaudited results released by CERF Inc., parent company of Edmonton, Alberta, Canada-based 4-Way Equipment Rentals. Net income jumped 1,094-percent to $3.1 million, compared to $262,000 in 2012.
Fourth quarter revenue increased 11 percent to $12.5 million, compared to $11.3 million in 2012.
Wayne Wadley, CERF CEO, recently told RER its equipment rental unit posted CDN $15.7 million in rental volume in 2013.
“In early March, Statistics Canada filed their employment data that showed that Alberta now accounts for 87 percent of all the jobs created in the country year over year,” said Wadley. “Alberta added 82,300 jobs in 2013 and the unemployment rate has declined from 4.6 percent in 2012 to 4.3 percent in 2013. Alberta’s 2013 GDP was 3.3 percent with population growth of 3.5 percent and Alberta is expected to reach 4.3 million persons by 2016. This heightened level of economic activity in the province throughout 2013 is reflected in our record 2013 year-end results.”
Wadley said the Alberta government’s 2014 capital plan predicts a high level of infrastructure spending during the next three years, especially in municipal infrastructure, provincial highways, healthcare facilities and schools.
“The high level of economic activity in Alberta and specifically in the Edmonton area market where CERF operates bodes well for the continued workload and the growth from our diverse customer base,” added Wadley. “Locally, there are 11 major strategic projects confirmed ranging from the new NHL arena project with an estimated $6 billion of redevelopment surrounding it, downtown area arts development, southeast and northwest light rail transit expansion, an energy and technology park in the south, and the former municipal airport redevelopment project to name a few. Our market research indicates that we need to aggressively bolster our construction rental fleet to meet the future demand of our customers.”
Wadley said CERF’s capital investment will almost double in 2014, primarily expanding 4-Way’s equipment fleet.
“The cold winter in Alberta and North America has had positive effects on CERF,” Wadley added. “The local demand for our construction heater fleet has been exceptional. At times the heater fleet was fully utilized. Heat equipment accounts for over 20 percent of our rental fleet.”
4-Way Equipment Rentals is No. 85 on the RER 100.