Mr. Wayne Wadley reports

CERF INCORPORATED ANNOUNCES 2015 FIRST QUARTER RESULTS

CERF Inc. has released its financial and operating results for the three months ended March 31, 2015.

"Despite significant headwinds faced by all Western Canadian energy services participants, CERF once again demonstrated the strength of our diversified model in providing the earnings stability that underpins our dividend," said Wayne Wadley, president and chief executive officer of CERF. "I am very pleased to announce that CERF generated record first-quarter revenue and adjusted EBITDA in a very challenging market."

                        2015 FIRST-QUARTER HIGHLIGHTS
            (in thousands of dollars, except for per-share amounts)

                                                 Three months ended March 31,
                                                          2015           2014

Revenue                                                $17,660        $12,424
Gross margin                                             4,652          4,098
Adjusted EBIT (1)                                        2,698          2,583
Net income                                               1,242          1,488
Net income per share
Basic                                                     0.03           0.09
Diluted                                                   0.03           0.09
Adjusted EBITDA (2)                                      5,534          4,026
Dividends paid per share                                  0.06           0.06

(1) (2) See financial measures reconciliations on page seven of CERF's 
first-quarter 2015 management's discussion and analysis and see accompanying
notes to the condensed consolidated interim financial statements.                                                       

Financial highlights:

• Revenue increased by 42 per cent for the quarter ended March 31, 2015, to $17.7-million when compared with the $12.4-million generated in the prior year's quarter. The increase was largely the result of contributions from the assets acquired from Empire Tool Inc. and the acquisition of Winalta Inc. in 2014. The revenue increase was also supported by strong results from the waste management segment, which posted revenue growth of 13 per cent quarter over quarter.
• Net income for the quarter decreased slightly to $1.2-million compared with $1.5-million for the first quarter of 2014. The stronger earnings generated from the waste management segment largely offset softer earnings performance from the industrial rentals segment.
• Adjusted earnings before interest, taxes, depreciation and amortization in the first quarter of 2015 increased 37 per cent to $5.5-million when compared with the same period in 2014.

Operating highlights

Energy services division -- oil field rentals segment:

• TRAC reported record revenues of $9.7-million during the first quarter, representing a 289-per-cent increase over the comparable quarter in 2014. This growth was largely a result of the acquisitions of Winalta and Empire, which contributed $6.7-million and $500,000, respectively, to quarterly revenue. Excluding the two acquisitions, TRAC's revenue decreased marginally by $100,000 or 4 per cent from the comparable quarter in 2014.
• Third party revenue for the quarter ended March 31, 2015, was $4.1-million, representing 43 per cent of TRAC's total revenue. Third party revenues are primarily generated through catering and other services provided in the operation of drill camps.
• Gross margin for the quarter ended March 31, 2015, increased by $1.4-million or 99 per cent, primarily resulting from the Winalta and Empire acquisitions.
• For the oil field rentals segment, gross margins as a percentage of revenues declined to 29 per cent for the quarter ended March 31, 2015, compared with 56 per cent for the same quarter in 2014, reflecting lower activity levels across the oil and gas industry, and resulted from a greater proportion of third party revenues being lower margin compared with total revenue.

Industrials division -- industrial rentals segment and waste management segment

Industrial rentals segment:

• Revenue declined by $1.5-million or 27 per cent compared with the same quarter in 2014. The decrease was mainly due to increased competition, lower rental fleet utilization because of delays on certain construction projects and warmer average temperatures, which reduced demand for heating equipment.
• Gross margin for the quarter ended March 31, 2015, decreased by $1.2-million, although a 19-per-cent reduction in direct costs partially offset lower revenue.
• On May 11, 2015, the vice-president of industrial rentals segment resigned. The company is actively engaged in recruiting a suitable replacement. Management is reviewing and refining operational processes and the organization structure to increase efficiency and operating performance.

Waste management segment:

• Revenue increased by $358,000 or 13 per cent over the first quarter of 2014, largely due to increased industrial waste volumes, higher revenue collection related to a municipal transfer contract and greater volumes directed to MCL managed waste facilities. These increases were slightly muted by lower contract landfill revenues that were approximately $360,000 lower than the same quarter in 2014, attributable to the loss of a municipal landfill management contract.
• Direct costs in the first quarter of 2015 decreased by $107,000 compared with the same period in 2014, resulting from reduced repair and maintenance costs as the company continues to insource repair and maintenance requirements for its trucks and equipment.

Conference call

CERF will host a conference call on May 29, 2015, at 8 a.m. MDT (10 a.m. EDT) to discuss the first-quarter results in greater detail. Canadian and United States participants may access the conference call toll-free at 1-866-223-7781, while Toronto-area participants may call 416-340-2216. Please connect approximately 10 minutes prior to the beginning of the call.

A replay of the call will be available two hours after its conclusion by calling toll-free to 1-800-408-3053 (905-694-9451 for local Toronto participants) and entering passcode 3161373. The replay will remain available at the numbers above until June 12, 2015.

Full details of the company's financial results for the three months ended March 31, 2015, including management's discussion and analysis, and the condensed, consolidated interim financial statements and notes are available on SEDAR and on the company's website.

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