Rocky Mountain Dealerships Inc. (TSX:RME, OTCQX:RCKXF) announces second quarter 2014 results and future management succession

About this update from Roland Mineral Enterprises Corp.

[{"type":"text","content":"\n\nCALGARY, Aug. 5, 2014 /CNW/ - Rocky Mountain Dealerships Inc. (hereinafter \"Rocky\") today reported its financial results for the quarter ended June 30, 2014. \n\nSUMMARY OF FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2014\n\n\nTotal revenues increased by 1.8% to $242.4 million. \nProduct support revenues increased by 10.9% to $37.7 million.   \nGross profit increased by 5.2% to $37.8 million (15.6% of sales). \nInventory decreased by $13.3 million to $522.2 million compared to Q2 2013. \nDiluted earnings per share increased by 34.8% to $0.31. \nEBITDA(1) increased by 23.8% to $10.6 million. \nIncreased dividend by 15% to $0.115 for the quarter ($0.46 on an annual basis).\n\n\n\n\n(1) See further discussion in \"Non-IFRS Measures\" and \"Reconciliation of Non-IFRS Measures to IFRS\" sections below.\n\n\n\nIn the second quarter of 2014, sales of whole goods were relatively flat, but product support growth enabled the business to realize a modest overall revenue increase.  Gross margin and net profitability were also positively influenced by a variety of management actions.\n\nCommenting on the quarter, Rocky's CEO Matt Campbell stated, \"As agriculture industry demand cycles to lower levels of whole good unit sales, a strong product support business helps to maintain stable cash flows.  Sales in these departments increased for the second consecutive quarter compared to the same period last year.  This drove an improvement in both our gross profit and EBITDA.  Inventory also decreased slightly over the same period in 2013, as we work to ensure our customers have an appropriate range of products available at competitive prices.\"\n\nRocky's construction segment continued to make progress in the second quarter, as sales of new whole goods improved by 38.9% to $12.8 million.  Gross margin and gross profit were up for the entire segment, which continued to improve over 2013.\n\nMr. Campbell further noted, \"Management has undertaken significant efforts to restore our construction business.  We are beginning to see the fruits of those labours, as are our customers.  The initiatives we began earlier in the year have resulted in improvements in sales and net profitability.  Although the construction segment still has significant work to do, we are encouraged by the results to da...

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