Business
Rocky Mountain Dealerships Inc. (TSX:RME) Announces First Quarter Results for the Period ended March 31, 2009
- First quarter revenue increased 54% year over year to $107.2 million - First quarter net earnin...
About this update from Roland Mineral Enterprises Corp.
[{"type":"text","content":"\n\n\n\n- First quarter revenue increased 54% year over year to $107.2 million\n\n- First quarter net earnings increased 24% year over year to $728,000\n\n- Declares quarterly cash dividend of $0.045 per share\n\n\nCALGARY, May 12 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky Mountain"\nor the "Company") (TSX: RME), a leading Canadian network of full service\nagricultural and construction equipment dealerships, today reported financial\nresults for the three month period ended March 31, 2009.\n\n\nFor the fiscal 2009 first quarter, net sales increased 53.7% to $107.2\nmillion, compared to net sales of $69.7 million for the first quarter of\nfiscal 2008. This growth in revenue was due to improved sales from all three\nof the Company's primary revenue sources. New equipment sales were $47.5\nmillion in the first quarter of fiscal 2009 compared to $41.6 million in the\nprior year period. Used equipment sales were $39.2 million in the first\nquarter of 2009, up 212% compared to $12.6 million in the first quarter of\nfiscal 2008. Revenue generated from product support increased to $19.1 million\nin the first quarter of fiscal 2009 compared to $13.7 million in the first\nquarter of fiscal 2008.\n\n\nGross profit for the fiscal 2009 first quarter increased 27.6% to $16.1\nmillion, compared to $12.6 million in the first quarter of the prior year. The\nCompany's gross profit margin was 15.0% in the fiscal 2009 first quarter\nversus 18.1% in the first quarter of the prior year. The decrease in gross\nprofit margin was due primarily to a higher percentage of agriculture sales\nthat requires less product support and a reduction in new construction gross\nmargins as we compete in a market with excess capacity.\n\n\nSelling, general and administrative expenses improved to 11.7% of sales,\nin the fiscal 2009 first quarter versus 13.0% of sales, in the first quarter\nof the prior year. This 130 basis point improvement was primarily due to the\nCompany's ability to achieve the benefits of economies of scale following\nacquisitions completed in 2008 allowing expenses to be allocated over a larger\ngroup of dealerships and a reduction of expenses incurred as a result of the\nongoing consolidation of the acquired companies.\n\n\nOperating income in the first quarter fiscal 2009 decreased to $1.2\nmillion from $1.7 million in t...