-- Cervus Equipment Corporation (“Cervus” or the “Company”) (TSX: CERV) today announced its financial results and operational highlights for the quarter ended September 30, 2017.
 These financial measures are identified and defined within Cervus’ third quarter Management’s Discussion and Analysis under the section “Non-IFRS Financial Measures”.
Income before tax for the three months ended September 30, 2017 decreased $0.7 million, comprised of a $0.9 million increase in our Agriculture segment, a $0.5 million increase in our C&I segment, offset by a $2.0 million decrease in our Transportation segment. EBITDA decreased $3.3 million compared to the third quarter of 2016.
Agriculture income before tax increased $0.9 million for the three-month period ended September 30, 2017, while EBITDA decreased $1.1 million compared to the third quarter of 2016. Focused sales efforts combined with significant harvest activity in the quarter drove increased equipment, parts, and service sales. Gross profit increased $1.5 million, while overall gross profit margin decreased 1.2%, due to the sales mix impact of a 34% increase in new equipment sales in the quarter.
Transportation loss before tax increased by $2.0 million in the third quarter, while EBITDA decreased by $2.5 million compared to the three-month period ended September 30, 2016. In our Saskatchewan dealerships, revenue increased by 2.8% while overall gross profit percentage remained consistent with 2016, resulting in income from operating activities of $0.5 million. In Ontario, overall revenue decreased 2.5%, while gross profit margin percentage decreased 1.4%, resulting in a loss from operating activities of $1.0 million.
Income before tax in our C&I segment improved by $0.5 million compared to the three-month period ended September 30, 2016, as our parts and service departments have accelerated significantly, along with a 5% increase in equipment sales. The additional sales generated were achieved on a flat expense base, reducing SG&A to 24.1% as a percent of revenue, while EBITDA increased by $0.3 million quarter over quarter.
Selected Quarterly Information
 These financial measures are identified and defined within Cervus’ second quarter Management’s Discussion and Analysis under the section “Non-IFRS Financial Measures”.
Conference Call Information
Cervus will host its third quarter 2017 results conference call on November 9, 2017 at 11:00 a.m. Eastern Time. Interested parties may access the conference call by dialling (647) 427-7450 or 1-888-231-8191. Please connect approximately 10 minutes prior to the beginning of the call. The conference call will be archived for replay until Thursday, November 16, 2017 at midnight. To access the archived conference call, dial (416) 849-0833 or 1-855-859-2056 and enter the reservation number 3279348 followed by the number sign.
A live audio webcast of the conference call will be available.
Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above website for 90 days.
About Cervus Equipment Corporation
Cervus acquires and operates authorized agricultural, construction, materials handling and transportation equipment dealerships. The company has interests in 63 dealerships in Canada, New Zealand and Australia, employing more than 1,500 people. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Peterbilt transportation equipment; Bobcat, CMI and JCB construction equipment; and Clark, Sellick and Doosan material handling equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CERV".
For more information please contact:
Graham Drake – President & CEO
Randy Muth – Chief Financial Officer
Forward Looking Information
This press release contains certain forward‐looking information ("forward‐looking information") within the meaning of applicable Canadian securities laws. Forward‐looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. Forward‐looking information is not a guarantee of future performance and involves a number of assumptions and a number of risks and uncertainties some of which are described herein. These risks and uncertainties include the risks identified under the heading "Risk Factors – Risks Related to the Business" in the 2016 Annual Information Form of Cervus Equipment Corporation dated March 15, 2017, available electronically at www.sedar.com under Cervus’ profile. Cervus believes the expectations reflected in such forward‐looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward‐looking information should not be unduly relied upon. You are cautioned that the preceding list of assumptions and risks is not exhaustive. Any forward‐looking information is made as of the date hereof and, except as required by law, Cervus assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.