CALGARY, ALBERTA -- (Marketwired) -- 05/29/15

CERF Incorporated (the "Company" or "CERF") (TSX VENTURE:CFL) today announced 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 CEO 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

                                                Three months ended March 31,
(in $ 000s except for per share amounts)                 2015           2014
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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
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1,2 See Financial Measures Reconciliations on page 7 of CERF's first quarter
2015 MD&A and see accompanying notes to the Condensed Consolidated Interim  
Financial Statements.                                                       

FINANCIAL HIGHLIGHTS

--  Revenue increased by 42% for the quarter ended March 31, 2015 to $17.7
    million when compared to 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. ("Empire") and the acquisition of
    Winalta Inc. ("Winalta") in 2014. The revenue increase was also
    supported by strong results from the Waste Management Segment, which
    posted revenue growth of 13% quarter-over-quarter. 
    
--  Net income for the quarter decreased slightly to $1.2 million compared
    to $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 EBITDA in the first quarter of 2015 increased 37% to $5.5
    million when compared to the same period in 2014. 

OPERATING HIGHLIGHTS

Energy Services Division - Oilfield Rentals Segment

--  TRAC reported record revenues of $9.7 million during the first quarter,
    representing a 289% 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 $0.1 million or 4% from the comparable quarter in 2014. 
    
--  Third party revenue for the quarter ended March 31, 2015 was $4.1
    million representing 43% 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%, primarily resulting from the Winalta and Empire
    acquisitions. 
    
--  For the Oilfield Rentals Segment, gross margins as a percentage of
    revenues declined to 29% for the quarter ended March 31, 2015, compared
    to 56% 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 to total revenue. 

Industrials Division - Industrial Rentals Segment and Waste Management Segment

Industrial Rentals Segment

--  Revenue declined by $1.5 million or 27% compared to 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% 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% 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
    to 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 8:00 a.m. MDT (10:00 a.m. EDT) to discuss the first quarter results in greater detail. Canadian and U.S. 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 at www.sedar.com and on the Company's website at www.cerfcorp.com.

About CERF Incorporated

CERF is a Canadian public corporation with two primary divisions: Industrials and Energy Services. The Industrials Division is engaged in the rental of industrial and construction equipment and waste management. The Energy Services division is engaged in the rental of surface and downhole equipment and provision of modular accommodations to the oil and gas industry in western Canada. CERF has paid consecutive quarterly dividends since 2005 and trades on the TSX Venture Exchange under the symbol "CFL". CERF currently has 36,300,248 common shares issued and outstanding.

FORWARD-LOOKING STATEMENTS

Certain statements included or incorporated by reference in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information may contain statements with the words "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", "would have realized', "may have been" or similar words suggesting future outcomes or expectations. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements because the Company can give no assurance that such statements will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties. These assumptions include that demand for industrial rental equipment, will remain relatively constant or grow marginally through 2015, that the economic downturn caused by the low oil price environment will not affect the performance of the waste management segment, that the Company's proactive cost cutting measures currently being implemented will protect future margins and that the Company's diverse operations will protect against profound down swings in the economic environment. Although management believes these assumptions are reasonable, there can be no assurance that they will be proved to be correct, and actual results will differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward- looking statements or information, whether as a result of new contrary information, future events or any other reason, unless it is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.

This press release also makes reference to certain non-IFRS measures, which management believes assists in assessing the Company's financial performance. Readers are directed to the section below entitled "Financial Measures Reconciliations" for an explanation of the non-IFRS measures used.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
CERF Incorporated
Wayne Wadley
President and CEO
(403) 850-4095
wwadley@cerfcorp.com

CERF Incorporated
Derrek Wong, MBA, CFA, FCMA
Vice President, Finance and CFO
(403) 354-5440
drwong@cerfcorp.com