Business
Rocky Mountain Dealerships Inc. (TSX:RME, OTCQX:RCKXF) announces second quarter 2015 results
CALGARY , Aug. 11, 2015 /CNW/ - Rocky Mountain Dealerships Inc. (hereinafter " Rocky ") t...
About this update from Roland Mineral Enterprises Corp.
[{"type":"text","content":"\n\nCALGARY, Aug. 11, 2015 /CNW/ - Rocky Mountain Dealerships Inc. (hereinafter \"Rocky\") today reported its financial results for the quarter ended June 30, 2015. \n\nSUMMARY OF FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2015\n\n\nUsed equipment sales increased by 6.9% to $75.5 million from $70.6 million.  \nNew equipment sales decreased by 28.3% to $95.4 million from $133.1 million. \nInventory decreased by $30.2 million or 5.7% (excluding $43.9 million of Chabot inventory acquired). \nProduct support revenues increased by 9.8% to $41.4 million from $37.7 million. \nDiluted earnings per share were $0.10 as compared to $0.31 in 2014.  \nEBITDA(1) decreased to $5.2 million from $10.6 million in 2014. \nCompleted the acquisition of Chabot.\n\n\n\n(1)\n\n\nSee further discussion in \"Non-IFRS Measures\" and \"Reconciliation of Non-IFRS Measures to IFRS\" sections below. \n\n\nA warm and exceptionally dry growing season across much of the prairies, combined with increased foreign exchange premiums on equipment manufactured in the U.S., has tempered demand for new agriculture equipment in Western Canada.  Although July brought with it some much needed rainfall, accumulated moisture levels across the Canadian Prairies remain well below historical averages.  These difficult climatic conditions, as well as sales activity pushed into the first quarter as a result of the early spring in 2015, precipitated a decline in new agriculture equipment sales and contributed to the decrease in EBITDA during the second quarter.  \n\n\"We are encouraged with the progress on a number of our key initiatives, notwithstanding the headwinds affecting our industry at present\", remarked Garrett Ganden, President and CEO of Rocky. \"The reduction of our overall inventory levels, and the deleveraging of our balance sheet, continue to be a top priority for us.  We view the shift in demand from new to used agriculture equipment as a positive development as it pertains to the reduction of inventory.  To the extent that our customers' demand is met with units already on hand, we are able to reduce procurement and consequently, overall inventory levels.  During the second quarter, we saw evidence of this in the $30.2 million reduction in inventory, excluding inventory acquired as part of the Chabot acquisition. \n\n...