Cervus Corp., which owns many John Deere and Peterbilt dealerships, posted annual adjusted earnings of $13.3 million, down from $20.2 million the previous year.
President Graham Drake said 2015 was a year of growth, but there were also challenges caused by falling commodity prices.
“We started the year with 19 more dealerships than at the beginning of 2014, which generated an additional $245 million in revenue, and Cervus exceeded $1 billion of revenue for the first time,” he said in a news release.
The unadjusted bottom line was a loss of $27.4 million because of a $36.9 million non-cash settlement with the Canada Revenue Agency that caused the company to write off a portion of its deferred tax asset.
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Overall revenue rose 16 percent to $1.134 billion as a result of the company acquiring more dealerships over the year. Same store revenue fell nine percent to $889.2 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were $46.3 million, down nine percent.
Performance in the company’s agriculture equipment sector decreased across all business segments.
The stronger U.S. dollar, which raised the cost of new equipment in Canadian dollar terms, also weighed down sales.
The company partly offset these reductions by promoting its service and parts business and by sales of used equipment.
In the agriculture segment, revenue from sales of new equipment rose four percent while used equipment sales revenue rose 25 percent.
Parts sales rose 24 percent and service climbed 14 percent.
darce.mcmillan@producer.com
