Business
Rocky Mountain Dealerships Inc. (TSX:RME) Announces Record Third Quarter Sales for the Period ended September 30, 2009
Rocky Mountain Dealerships Inc. (TSX:RME) Announces Record Third Quarter Sales for the Period end...
About this update from Roland Mineral Enterprises Corp.
[{"type":"text","content":"\n\n\n\nNov. 10, 2009 (Canada NewsWire Group) -- CALGARY, Nov. 10 /CNW/ -- Rocky Mountain Dealerships Inc. (\"Rocky Mountain\" or the \"Company\") (TSX: RME), a leading Canadian network of full service agricultural and construction equipment dealerships, today reported financial results for the period ended September 30, 2009. In addition to announcing consecutive record quarters the Company closed two acquisitions effective as of November 1, 2009, Enns Agri in Winkler, Manitoba and Mayor Equipment in Neepawa, Manitoba.For the fiscal 2009 third quarter, net sales increased 56% to $145.8 million, compared to net sales of $93.2 million for the third quarter of fiscal 2008. This growth in revenue was due to improved sales from all three of the Company's primary revenue sources. New equipment sales were $69.4 million in the third quarter of fiscal 2009 compared to $46.5 million in the prior year period. Used equipment sales were $46.1 million in the third quarter of 2009, an increase of 119% compared to $21.1 million in the third quarter of fiscal 2008. Revenue generated from product support increased to $29.1 million in the third quarter of fiscal 2009 compared to $23.2 million in the third quarter of fiscal 2008.Gross profit for the fiscal 2009 third quarter increased 22% to $22.3 million, compared to $18.2 million in the third quarter of the prior year. The Company's gross profit margin was 15.3% in the fiscal 2009 third quarter, 16.0% when normalized for the construction equipment inventory write-down of $1.0 million taken in the quarter due to an exchange rate variance. Gross profit margin has increased from 14.0% in the previous quarter reflecting the improved margins of the acquisitions as we integrate them into the Company's business system and share best practices.Selling, general and administrative expenses improved to 8.6% of sales in the fiscal 2009 third quarter, 9.3% when normalized for the foreign exchange gain recognized in the quarter of approximately $1.0 million, versus 10.3% of sales, in the third quarter of the prior year. This 100 basis point improvement was due to the Company's ability to achieve the benefits of economies of scale following acquisitions completed in 2008 and 2009 allowing expenses to be allocated over a larger group of dealerships. In addition, synergies obtained through systems integration an...