Business
Rocky Mountain Dealerships Inc. announces Q1 results and 50% increase in dividend
Strong sales growth in all sectors, offer to repurchase debentures lead highlights CA...
About this update from Roland Mineral Enterprises Corp.
[{"type":"text","content":"\n\n\n\n\n\nStrong sales growth in all sectors, offer to repurchase debentures lead\n highlights\n\n\nCALGARY, May 14, 2012 /CNW/ - Rocky Mountain Dealerships Inc. (TSX: RME, hereinafter \"Rocky\") today reported financial results for the three\n months ended March 31, 2012.\n\n\nHIGHLIGHTS:\n\n\nIncreased revenues by 28.2% to $192.1 million.\n\n\nGross profit increased by 16.3% to $27.7 million.\n\n\nGenerated net earnings of $2.2 million ($0.11 per fully diluted share)\n compared to $2.7 million ($0.14 per fully diluted share) in 2011.\n\n\nCash Flow from Net Earnings* of $2.3 million, up from ($0.3) million in 2011.\n\n\nAnnounced 50% increase in annual dividend to $0.27 per common share.\n\n\nAnnounced offer, and repurchased, all of the 7% unsecured subordinated\n convertible debentures in the principal amount of $31.5 million (the\n \"Debentures\"), reducing future dilution and interest rate costs.\n\n\n* Non-IFRS measures are defined and discussed further in the Management's\n Discussion and Analysis for the three months ended March 31, 2012,\n which can be found at www.sedar.com.\n\n\n\n\n\nMatt Campbell, CEO of Rocky, noted \"Our results for the first quarter of\n 2012 reflect our success across several key areas, including same-store\n equipment and product support sales.  Although our gross margin\n percentage declined, due primarily to a decrease in manufacturer\n incentives in the amount of $1.2 million, our increased revenues\n bolstered our total gross profit.\n\n\nOf particular note, we posted yet another quarter of positive cash flow\n from operations, further enhancing our already strong cash position. \n As a result of continued generation of free cash flow, we have\n increased our annual dividend by 50% to $0.27 per common share.  This\n reflects our continued confidence not only in our industry, but in our\n ability to generate cash and return value to shareholders.\n\n\nSG&A as a percentage of revenue declined in the quarter, despite the\n increased costs associated with the ongoing assessment of our\n organizational structure and rebranding initiatives, as well as\n increased commissions associated with our elevated sales levels.\n\n\nRocky's success and growth, while predicated on improved economic\n conditions and factors, was also affected by our ability to be a\n partner of choice for...