Cervus Ends 2018 with $36.5MM in Adjusted Pre-Tax Income, Up $8.8MM Y/Y
MAR 19, 2019 - 6:35 am
Cervus Equipment reported its financial results and operational highlights for the full year 2018. The company’s generated adjusted income before income tax expense was $36.5 million, a $8.8 million increase over 2017 adjusted income.
“I am pleased with the accelerated financial results of 2018, reflecting significant objectives achieved in the year. Our Ontario transportation dealerships delivered outstanding performance. Leveraging our scale and consistency was fundamental in marketing a record volume of pre-owned agricultural equipment, in addition to achieving record new agricultural equipment sales. Further, service optimization continues to elevate our customers’ experience, while increasing the efficiency of our service departments,” said Graham Drake, Cervus president and CEO. “Based on this performance, we have increased the quarterly dividend to $0.11 per share. I believe our success and accomplishments in 2018 have enhanced our capabilities as we enter 2019, and I look forward to what the year will bring for our customers, shareholders, OEMs, and employees.”
2018 highlights included:
The company generated income of $26.6 million in 2018, a $6.7 million increase compared to income of $19.9 million in 2017.
The company reported income per basic share of $1.70 in 2018, a $0.43 per share increase compared to income of $1.27 per basic share in 2017.
The Transportation segment achieved a $9.4 million increase in adjusted income before income tax expense compared to 2017, largely due to the performance of the company’s Ontario dealerships.
Cervus achieved record new equipment revenue in the Agriculture segment, increasing 10% over the prior year, while marketing associated used equipment trades in season decreased used equipment margins by 2% in the year.
Total service gross profit margin percentage increased by 3.4% compared to 2017, due to continued service optimization improvement.
Selling, general, and administrative expenses decreased $3.2 million in the year, despite a $128.8 million increase in revenue, decreasing to 12.8% as a percentage of revenue compared to 14.4% in 2017.
Dividends of $0.40 per share were declared to shareholders of record during 2018.
Cervus completed the acquisition of an adjacent John Deere dealership located in Red Deer, Alberta.
Cervus’ Saskatchewan John Deere dealerships were awarded John Deere’s Leaders Club status, an award recognizing the top John Deere dealers in Canada.
Cervus acquires and operates authorized agricultural, transportation and materials handling equipment dealerships. It has interests in 63 dealerships in Canada, New Zealand, and Australia and employs more than 1,500 people.
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