Business
Rocky Mountain Dealerships Inc. (TSX:RME) Announces Record Second Quarter Sales for the Period ended June 30, 2009
- Second quarter revenue increased 65% year over year to $155.1 million - Second quarter net earn...
About this update from Roland Mineral Enterprises Corp.
[{"type":"text","content":"\n\n\n\n- Second quarter revenue increased 65% year over year to $155.1 million\n\n- Second quarter net earnings increased 43% year over year to\n $3.8 million\n\n- Declares quarterly cash dividend of $0.045 per share\n\n\nCALGARY, AB, Aug. 11 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky\nMountain" or the "Company") (TSX: RME), a leading Canadian network of full\nservice agricultural and construction equipment dealerships, today reported\nfinancial results for the periods ended June 30, 2009.\n\n\nFor the fiscal 2009 second quarter, net sales increased 64.5% to $155.1\nmillion, compared to net sales of $94.3 million for the second 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 $90.6\nmillion in the second quarter of fiscal 2009 compared to $61.7 million in the\nprior year period. Used equipment sales were $38.8 million in the second\nquarter of 2009, up 188% compared to $13.5 million in the second quarter of\nfiscal 2008. Revenue generated from product support increased to $24.4 million\nin the second quarter of fiscal 2009 compared to $16.8 million in the second\nquarter of fiscal 2008.\n\n\nGross profit for the fiscal 2009 second quarter increased 35% to $21.8\nmillion, compared to $16.1 million in the second quarter of the prior year.\nThe Company's gross profit margin was 14% in the fiscal 2009 second quarter\nversus 17.1% in the second 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 some lower margin highly competitive\nsales. In addition, during the first six months of 2009 the Company maintained\na strong focus on the reduction of aged construction equipment inventory which\nput pressure on the margins.\n\n\nSelling, general and administrative expenses improved to 8.6% of sales,\nin the fiscal 2009 second quarter versus 10.3% of sales, in the second quarter\nof the prior year. This 170 basis point improvement was due to the Company's\nability to achieve the benefits of economies of scale following acquisitions\ncompleted in 2008 and 2009 allowing expenses to be allocated over a larger\ngroup of dealerships. In addition, synergies obtained through systems\nintegration and cost...