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SYS-CON MEDIA Authors: Liz McMillan, Elizabeth White, Esmeralda Swartz, Andy Jonak, Carmen Gonzalez

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CERF Incorporated Announces Solid 2014 First Quarter Results

CERF Reports Revenue of $12 million, Adjusted EBITDA of $4 million and Net Income of $1.5 million for Q1 2014

CALGARY, ALBERTA -- (Marketwired) -- 05/15/14 -- Mr. Wayne Wadley, President of CERF Incorporated (the "Company" or "CERF") (TSX VENTURE:CFL) is pleased to announce financial and operating results for the Company for the three months ended March 31, 2014.

"CERF had a successful start to 2014, and we are very pleased to announce the seventh consecutive quarter in which CERF has delivered results that exceeded those reported a year earlier," stated Mr. Wadley. " In the first quarter we recorded meaningful increases in our net income, and adjusted free cash flow coupled with a significant decrease in our payout ratio were driven by higher demand for service in our rental equipment division."

Full details of the Company's financial results, in the form of the unaudited, condensed, consolidated interim financial statements and notes for the three months ended March 31, 2014 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 Financial Highlights for Q1 2014 Include:


--  Revenue increased 9% to $12,424,000 for the quarter versus 11,444,000 in
    the quarter ended March 31, 2013; 
--  Net income increased 34% to $1,488,000 share in Q1 2014 versus
    $1,110,000 in Q1 2013; 
--  Net Income per share decreased 3% to $0.092 per share in Q1 2014 from
    $0.095 per share in Q1 2013 despite a 38% increase in the number of
    shares outstanding. 
--  Adjusted EBITDA increased 1% to $4,026,000 for the first quarter of 2014
    versus $4,001,000 for 2013; 
--  The Company paid dividends of $0.06 per share to shareholders in 2014
    while reducing the annualized payout ratio to 44% from an annualized
    payout ratio of 89% as at Q1 2013; and 
--  Adjusted free cash flow generated during 2014 was $724,000 compared to
    adjusted free cash flow of $(963,000) in Q1 2013; 

Summary of the First Quarter 2014 Consolidated Financial Results:


---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                 Three months  Three months                
In C$,000's except percentages    ended March   ended March       $        
and per share data                   31, 2014      31, 2013  change       %
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                           
Revenue                                12,424        11,444     980      9%
                                                                           
Direct Expenses                         8,326         7,763     563      7%
                                                                           
Gross Margin %                            33%           32%              1%
                                                                           
Net Income                              1,488         1,110     378     34%
                                                                           
Net income per share, basic             0.092         0.095 (0.003)    (3)%
                                                                           
Adjusted EBITDA                         4,026         4,001      25      1%
                                                                           
Adjusted Free Cash Flow                   724         (963)   1,687    175%
                                                                           
Trailing 12 Month payout ratio            44%           89%           (45)%
                                                                           
Dividend per share                       0.06          0.06       -      0%
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Summarized financial results for the three months ended March 31, 2014 follow:

CERF INCORPORATED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

IN THOUSANDS OF CANADIAN DOLLARS


Unaudited                                March 31, 2014   December 31, 2013
---------------------------------------------------------------------------
Assets                                                                     
Current assets:                                                            
  Cash                                              176                 557
  Accounts receivable                             9,182               8,433
  Inventory                                       1,574               1,561
  Income taxes recoverable                            -                   -
  Prepaid expenses and deposits                     364                 397
---------------------------------------------------------------------------
                                                 11,296              10,948
---------------------------------------------------------------------------
Non-current assets:                                                        
  Long term receivable                              177                 238
  Property and equipment                         38,010              36,890
  Intangibles and goodwill                       10,463              10,714
---------------------------------------------------------------------------
                                                 48,650              47,842
---------------------------------------------------------------------------
Total assets                                     59,946              58,790
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Liabilities and Shareholders'                                              
 Equity                                                                    
Current liabilities:                                                       
  Bank indebtedness                                   -                   -
  Accounts payable and accrued                                             
   liabilities                                    5,159               5,339
  Dividends payable                                 968                 963
  Income taxes payable                              260                 559
  Current portion of long-term debt               1,502               1,502
  Current portion of finance leases                 290                 314
---------------------------------------------------------------------------
                                                  8,179               8,677
---------------------------------------------------------------------------
Non-current liabilities:                                                   
  Long-term debt                                 15,871              14,801
  Obligation under finance leases                 4,042               4,106
  Deferred income taxes                           2,011               2,115
---------------------------------------------------------------------------
                                                 21,924              21,022
---------------------------------------------------------------------------
                                                                           
Total liabilities                                30,102              29,699
---------------------------------------------------------------------------
                                                                           
                                                                           
Shareholders' equity                                                       
  Share capital                                  33,106              32,894
  Warrants                                          835                 835
  Share purchase loans receivable                 (148)               (148)
  Contributed surplus                               765                 744
  Deficit                                       (4,714)             (5,234)
---------------------------------------------------------------------------
                                                 29,844              29,091
---------------------------------------------------------------------------
Total liabilities and shareholders'                                        
 equity                                          59,946              58,790
---------------------------------------------------------------------------
---------------------------------------------------------------------------

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME AND COMPREHENSIVE INCOME

IN THOUSANDS OF CANADIAN DOLLARS


                                     Three months ended  Three months ended
(unaudited)                              March 31, 2014          March 31, 
                                                                       2013
---------------------------------------------------------------------------
Revenues                                         12,424              11,444
---------------------------------------------------------------------------
                                                                           
Direct expenses                                                            
  Direct operating costs                          5,460               5,491
  Cost of sales of equipment, fuel                                         
   and parts                                      1,475                 862
  Depreciation of equipment                       1,391               1,410
---------------------------------------------------------------------------
                                                  8,326               7,763
---------------------------------------------------------------------------
Gross margin                                      4,098               3,681
---------------------------------------------------------------------------
Operating expenses                                                         
  General and administrative                      1,484               1,374
  Depreciation of other property                     31                  28
   and equipment                                                           
  Amortization of intangible assets                 251                 251
  Business acquisition expenses                       -                  10
---------------------------------------------------------------------------
                                                  1,766               1,663
---------------------------------------------------------------------------
Other expenses                                                             
  Finance costs                                     316                 424
---------------------------------------------------------------------------
                                                                           
Income before income taxes                        2,016               1,594
                                                                           
Income taxes                                                               
  Current                                           631                 577
  Deferred                                        (103)                (93)
---------------------------------------------------------------------------
                                                    528                 484
---------------------------------------------------------------------------
Net income and comprehensive income                                        
 for the period                                   1,488               1,110
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                           
Net income per share                                                       
  Basic                                          $0.092             $ 0.095
  Diluted                                        $0.092             $ 0.095

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".

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.

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