Business
Rocky Mountain Dealerships Inc. (TSX:RME, OTCQX:RCKXF) Announces 2013 Results
CALGARY , March 11, 2014 /CNW/ - Rocky Mountain Dealerships Inc. (hereinafter " Rocky ")...
About this update from Roland Mineral Enterprises Corp.
[{"type":"text","content":"\n\n\nCALGARY, March 11, 2014 /CNW/ - Rocky Mountain Dealerships Inc.\n (hereinafter \"Rocky\") today reported its financial results for the three and twelve months\n ended December 31, 2013.\n\n\nSUMMARY OF FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2013\n\n\n\nTotal revenues declined by 3.4% to $290.6 million.\n\n\nUsed equipment revenues increased by 6.5% to $84.9 million.\n\n\nRecorded one time impairment charge of $5.0 million ($0.19 per fully\n diluted share).\n\n\nGross profit declined to $33.3 million (11.4% of sales).\n\n\nDiluted Earnings per Share of $0.11.\n\n\nEBITDA(1) of $4.9 million.\n\n\n\nSUMMARY OF FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2013\n\n\n\nTotal revenues increased by 4.3% to $1,007.8 million.\n\n\nEquipment inventory decreased by $14.8 million.\n\n\nGross profit of $140.4 million (13.9% of sales).\n\n\nDiluted Earnings per Share of $0.80.\n\n\nEBITDA(1) of $29.7 million.\n\n\nPaid dividends of $0.3675 per share.\n\n\n\n(1) See further discussion in \"Non-IFRS Measures\" and \"Reconciliation of\n Non-IFRS Measures to IFRS\" sections below.\n\n\nRocky's results for the fourth quarter reflect continuing weakness in\n the Construction segment of the business. These results were compounded\n by a one time inventory impairment charge, which reflects its estimate\n of the reduced value of certain construction inventory related to an\n OEM's divestiture of a product line recently sold to one of its\n competitors. \"While never an exact science, our experience suggests\n that in circumstances like this, it is prudent to revalue inventory\n where there is a risk, from the customer's vantage point, that future\n support for the product line remains uncertain,\" Matt Campbell, CEO of\n Rocky noted.  He further noted, \"While no formal announcement has yet\n been made with respect to the future of this product line, what is\n clear is that the value proposition to our customers has diminished and\n our decision to revalue the product reflects that.\n\n\n\"This latest development caps off a very challenging year for Rocky's\n construction business as we look to reposition the business for future\n success. We have a number of strategic initiatives underway in this\n regard, including new leadership, which we believe will lead to a\n positive turnaround in our results over time.\n\n\n\"Also...