“Achieving the current results in the face of COVID-19 is a testament to the dedication of the Cervus team, the resilience of our customers across all sectors, and our ability to deliver customer value in partnership with our Original Equipment Manufacturers across all market cycles,” said Angela Lekatsas, President and CEO of Cervus. “While the results of the second quarter of 2020 have been particularly hard won, we continue to see the potential of our business as we focus on the attributes and capabilities that embody Cervus.”

Second Quarter 2020 Highlights

• The Company reported income of $9.3 million or $0.59 per basic share in the second quarter of 2020, an improvement compared to income of $2.8 million or $0.18 per basic share in the second quarter of 2019.
• Adjusted income per basic share was $0.44, compared to $0.15 in the second quarter of 2019.¹
• Total revenue increased 4% in the quarter, due to a 16% increase in Agriculture revenue, partly offset by a 15% decrease in Transportation revenue, and a 29% decrease in Industrial revenue.
• General and administrative (“G&A”) expenses, excluding equipment commissions, decreased by 6% or $2.2 million compared to the second quarter of 2019, reflecting the ongoing efficiencies of the 2019 restructuring in Agriculture, along with COVID-19 specific cost discipline.
• At June 30, 2020, Cervus had $102 million available under its syndicated operating facility, along with a $31 million cash balance and well positioned financial covenants.
• Our Agriculture used equipment inventory turnover for the trailing twelve-month period ended June 30, 2020, improved to 2.31 times, compared to 1.62 times at June 30, 2019.¹
• Adjusted cash flow from operations¹ increased $21 million, to $26 million for the six months ended June 30, 2020.
• A quarterly dividend of $0.015 per share was declared to shareholders as at June 30, 2020. Subsequent to June 30, 2020, and as of August 11, 2020, the Company repurchased 255 thousand common shares under the Normal Course Issuer Bid at a cost of $1.8 million.
  

Second Quarter 2020 Results