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CERVUS EQUIPMENT People . Power . Service . " Cervus Announces First Quarter 2021 Results , $ 2.7 Million Increase in Adjusted Income Before Tax CALGARY , Alberta ( May 6 , 2021 ) -- Cervus Equipment Corporation ( " Cervus " or the " Company " ) ( TSX : CERV ) today announced its financial results for the three months ended March 31 , 2021 . Cervus generated $ 3.2 million in adjusted income before tax , a significant increase of $ 2.7 million compared to the $ 0.5 million generated in the first quarter of 2020.¹ This improved performance reflects the Company's strategic focus on growing product support revenue , as well as lower finance costs associated with decreased inventory levels . " In what is typically our slowest quarter , I am proud of our team's successful execution on initiatives to grow parts sales , which increased 11 % in the quarter , driving a 7 % increase in overall product support revenue , " said Angela Lekatsas , President and Chief Executive Officer of Cervus . " Despite a decrease in equipment and service revenues from continued impacts of the global pandemic , we achieved a 5 % increase in gross profit quarter over quarter , from this change in the proportion of revenue from product support . " Strong industry demand , compounded by supply chain constraints related to the pandemic and severe weather events , impacted the availability and timing of equipment from our manufacturers in the quarter . We expect manufacturer supply chain issues , including semiconductor shortages , may continue into the second and third quarters of the year , and are working in partnership with our manufacturers to minimize the impact to our customers and our business . " First Quarter 2021 Highlights • • • • The Company reported income of $ 3.0 million or $ 0.19 per basic share in the first quarter of 2021 , compared to a loss of $ 2.7 million or ( $ 0.17 ) per basic share in the first quarter of 2020 . Adjusted income per basic share was $ 0.15 , compared to $ 0.02 in the first quarter of 2020 , which excludes the impact of government subsidies and unrealized foreign exchange losses.¹ Total revenue decreased 1 % in the quarter , comprised of a 4 % decrease in equipment revenue , partly offset by a 7 % increase in product support revenue . This change in sales mix resulted in a 5 % increase in gross profit . A $ 70 million reduction in total inventory , combined with the repayment of amounts owing under our syndicate and capital facilities in the third quarter of 2020 , resulted in a 41 % decrease in net finance costs compared to the first quarter of 2020 . • Agriculture used equipment inventory turnover for the trailing twelve - month period ended March 31 , 2021 , improved to 3.28 times , compared to 1.89 times at March 31 , 2020.¹ • Adjusted free cash flow from operations was $ 7 million for the three month period ended March 31 , 2021 compared to $ 4.1 million in 2020 , an increase of $ 3.2 million.¹ • A quarterly dividend of $ 0.11 per share was declared to shareholders of record at March 31 , 2021 .