CALGARY, March 14 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky Mountain" or the "Company") is reporting the results of their initial twelve day period as a publicly traded Company ending December 31, 2007.
The Company was formed on September 17, 2007 but did not carry on any business until it completed the acquisition of Hammer Equipment Sales Limited and the Hi-Way Service group on December 20, 2007. The consolidated financial statements of the Company therefore pertain to the aggregate business carried on by Hammer Equipment Sales Limited and the Hi-Way Service group for the 12 days ended December 31, 2007.
Commenting on the Company's results, Matt Campbell, CEO of Rocky Mountain said, "We are pleased with the progress that has been made since the acquisitions, and we are continuing to focus our attention on the integration of the two companies. The 100 day integration project is proceeding as planned."
The Company has reported net earnings and comprehensive income of $327,950.
Selected consolidated financial information for the twelve day period
ending December 31, 2007
Twelve Days Ended December 31, 2007
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Revenues $11,947,201
Gross profit $2,116,220
Gross margin 17.7%
EBITDA $867,973
EBITDA margin 7.3%
The strength that has been portrayed in the past couple of years in the agriculture industry is expected to continue, as a result of the continued demand for cereal crops for both ethanol production and as feed grains to support the changing diet in the Asian markets. With this continued demand, the farm based commodity prices are expected to continue showing strength over the remainder of 2008 which would be demonstrated in strong farm cash receipts for the year. The continued strength in the commodity prices has brought some difficulties for livestock farms as the input costs have increased, and consequently put a strain on the cash receipts from that segment of the farming economy. An issue that could arise during the 2008 year on the agricultural side of the business is a potential shortage of equipment due to lengthy lead times from the manufacturers. With the increase in agricultural activity the manufacturers have been forced to lengthen their delivery time which may affect RMDI's ability to meet all of our customer demands.
The construction equipment side of our business has been strong over the past few years as the various levels of government have been trying to deal with the infrastructure shortage throughout the province. This process is expected to continue through the 2008 fiscal year and into 2009 which will partially offset the expected slow-down in residential housing starts in the province.
Forward Looking Information
Certain statements contained in this press release, including statements related to the expectation that farm based commodity prices will continue to show strength, the potential shortage of agriculture equipment arising from expected long lead time for deliveries from agriculture equipment manufacturers, the expected strength in construction equipment notwithstanding expected slowdown in residential housing starts due to expected strength in infrastructure spending in Alberta and statements that contain words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "likely" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation.
These statements are based on certain assumptions and analysis made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Company's expectations. Consequently, all of the forward-looking information and statements made in this press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business or operations. Except as may be required by law, the Company assumes no obligations to update publicly any such forward-looking information and statements, whether as a result of new information, future events or otherwise.
About Rocky Mountain
Rocky Mountain represents one of Alberta's largest agriculture and construction equipment dealerships with 13 dealership branches located throughout Alberta. Rocky Mountain sells, rents and leases new and used construction and agriculture equipment, including the Case Construction and Case IH Agriculture brands, as well as offering product support and finance and insurance products to its customers.
Additional information on Rocky Mountain is available on our website at www.rockymtn.com and on SEDAR at www.sedar.com. The Common Shares of Rocky Mountain trade on the Toronto Stock Exchange under the symbol "RME".
%SEDAR: 00026106E