Rocky Mountain Dealerships Inc. (TSX:RME, OTCQX:RCKXF) Announces First Quarter 2014 Results and a 15% Increase in Annual Dividend

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[{"type":"text","content":"\n\n\nCALGARY, May 6, 2014 /CNW/ - Rocky Mountain Dealerships Inc.\n (hereinafter \"Rocky\") today reported its financial results for the three months ended March\n 31, 2014.\n\n\nSUMMARY OF FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2014\n\n\n\nInventory decreased over March 31, 2013 by $46.9 million to $516.4\n million.\n\n\nTotal revenues declined by 4.0% to $198.2 million.\n\n\nProduct support revenues increased by 15.3% to $22.5 million.\n\n\nGross profit declined by 10.0% to $29.2 million (14.8% of sales).\n\n\nDiluted earnings per share of $0.03.\n\n\nEBITDA(1) of $3.2 million.\n\n\nSuccessfully executed on previously announced strategy to dispose of\n rock trucks.\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\nThe first quarter of 2014 saw a number of successes as well as some\n continued challenges.  \"Product support sales showed encouraging growth\n during the first quarter realizing a 15.3% increase over 2013.  Our\n construction segment has realized a net income improvement of $0.9\n million over the prior year as a result of market penetration and\n operational efficiencies,\" Matt Campbell, CEO of Rocky noted.  He\n further added, \"Agriculture equipment revenues were down as demand was\n affected by a backlog in grain haulage by rail affecting customer cash\n flow and record low temperatures affecting foot traffic in our\n dealership yards.\n\n\nFurther commenting on the quarter, Mr. Campbell stated, \"In December of\n 2013, Rocky took an impairment charge against our articulated and rigid\n rock truck inventory in response to an OEM's announcement of its\n pending exit from that line of business.  During the first quarter of\n 2014, we were successful in our plan to divest ourselves of\n substantially all of these vehicles for proceeds which approximated our\n assessed valuation.\n\n\n\"The 2014 thaw is behind 2013 in many areas.  A shortage of rail cars to\n haul grain combined with 2013's bumper crop and softening in commodity\n prices resulted in an elevated retention of crop inventory as we\n entered 2014.  The impact of this has been felt within the agriculture\n segment, particularly with respect to used equipment sales which were\n down $20.1 million over the first quarter of last ye...

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