Mar. 8, 2011 (Canada NewsWire Group) --
Issued: 18,483,982 shares
CALGARY, March 8 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky" or the "Company") today reported financial results for the three months ("Q4") and year ended ("YTD") December 31, 2010.
- Q4 revenue increased 33% to $196.3 million versus 2009 Q4 of $147.7 million.
- YTD revenue increased 14% to $633.4 million versus 2009 YTD of $555.8 million.
- Q4 net earnings increased 18% to $6.7 million and YTD increased 2% to $15.5 million.
- Diluted earnings of $0.34 per share for Q4 and $0.83 per share YTD
- Q4 EBITDA increased 22% to $12.9 million and YTD increased 3% to $33.8 million.
- Declares quarterly cash dividend of $0.045 per share
New equipment sales were $121.3 million for Q4 compared to $92.9 million in the prior year. Used equipment sales were $45.6 million for Q4, compared to $32.5 million for the same period of 2009. Parts and service revenue were $17.4 million and $11.1 million for Q4, both up from $11.8 million and $9.4 million in 2009, respectively.
Gross profit margin was at 16.0% for Q4, down slightly from 16.6% in 2009. For the full year 2010 gross profit margin was up to 15.7% from 15.2% in 2009.
Selling, general, and administrative expenses was 10.4% of revenue in Q4, up from 9.4% in the prior year. This increase arose mainly from the addition of 9 branches during 2010.
Commenting on the performance of Rocky, Brian Taschuk, Chief Executive Officer said, "We ended 2010 strong. Both our construction and agricultural stores grew organically, and through acquisitions in the fourth quarter. Given the current commodity prices, recent trends of economic improvement in the construction industry and the opportunity to fully realize the synergies available as a result of our recent acquisitions, we are optimistic heading into 2011. We acquired 12 new locations in the past year and we expect to slow down on acquisitions this year to ensure they are properly integrated and performing to our expectations. Our strong end markets, growth from past acquisitions, and improving asset utilization should add value for shareholders this year."
Quarterly Cash Dividend
On March 1, 2011, the Company announced that its Board of Directors declared a dividend of $0.045 per common share on the Company's outstanding common shares. The common share dividend is payable on March 31, 2011, to shareholders of record at close of business on March 10, 2011.
This dividend is designated by Rocky to be an eligible dividend for the purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.
Conference Call
The Company will host a conference call to discuss the year-end and Q4 results on Tuesday, March 8, 2011, at 9:00 am MT. Investors interested in participating in the live call can dial 1-800-642-1687 (toll free) or 1-416-849-0833. An archived recording of the call will be available approximately two hours after its completion on Rocky's website or by dialling 1-800-642-1687 (toll free) or 1-416-849-0833, passcode: 48497790. The archive will remain available until Tuesday, March 22, 2011. A live webcast of the conference call will be accessible on Rocky's website at www.rockymtn.com.
About Rocky
Rocky is one of Canada's largest agriculture and construction equipment dealerships with branches throughout Alberta, Saskatchewan and Manitoba. Rocky sells, rents, and leases new and used construction and agriculture equipment and offers product support, and finance to its customers.
Additional information on Rocky is available at www.rockymtn.com and on SEDAR at www.sedar.com.
| Appendix 1 | ||
| ROCKY MOUNTAIN DEALERSHIPS INC. | ||
| Consolidated Balance Sheets | ||
| In thousands of dollars (Unaudited) | ||
|
December 31, 2010 |
December 31, 2009 |
|
| $ | $ | |
| ASSETS | ||
| CURRENT | ||
| Cash | 17,139 | 8,912 |
| Accounts receivable and other | 27,509 | 24,186 |
| Inventory | 327,739 | 247,627 |
| Prepaid expenses | 1,611 | 509 |
| 373,998 | 281,234 | |
| Property, plant and equipment | 20,600 | 19,343 |
| Future income taxes | 611 | - |
| Goodwill | 8,528 | 4,086 |
| 403,737 | 304,663 | |
| LIABILITIES | ||
| CURRENT | ||
| Bank indebtedness | - | 1,947 |
| Accounts payable and accrued liabilities | 29,480 | 30,595 |
| Floor plan payable | 210,425 | 158,793 |
| Deferred revenue | 337 | 3,154 |
| Current portion of long-term debt | 6,574 | 8,545 |
| Current portion of obligations under capital lease | 825 | 619 |
| 247,641 | 203,653 | |
| Long-term debt | 13,058 | 12,968 |
| Obligations under capital lease | 1,387 | 896 |
| Convertible debentures | 28,411 | - |
| Future income taxes | 6,593 | 1,051 |
| 297,090 | 218,568 | |
| SHAREHOLDERS' EQUITY | ||
| Common shares | 75,913 | 70,601 |
| Convertible debentures - equity component | 1,343 | - |
| Contributed surplus | 4,630 | 2,915 |
| Retained earnings | 24,761 | 12,579 |
| Accumulated and other comprehensive income | - | - |
| 106,647 | 86,095 | |
| 403,737 | 304,663 | |
| Appendix 2 | ||||
| ROCKY MOUNTAIN DEALERSHIPS INC. | ||||
| Consolidated Statements of Net Earnings, Comprehensive Income | ||||
| and Retained Earnings (Deficit) | ||||
| Three and Twelve Month Periods Ended | ||||
| In thousands of dollars, except per share amounts (Unaudited) | ||||
|
Three Months Ended December 31, 2010 |
Three Months Ended December 31, 2009 |
Twelve Months Ended December 31, 2010 |
Twelve Months Ended December 31, 2009 |
|
| $ | $ | $ | $ | |
| SALES | ||||
| New units | 121,302 | 92,878 | 333,603 | 300,924 |
| Used units | 45,553 | 32,526 | 189,315 | 156,648 |
| Parts | 17,382 | 11,761 | 65,047 | 56,077 |
| Service | 11,088 | 9,442 | 41,585 | 37,671 |
| Other | 972 | 1,066 | 3,869 | 4,435 |
| 196,297 | 147,673 | 633,419 | 555,755 | |
| COST OF SALES | 164,972 | 123,150 | 533,861 | 471,067 |
| GROSS PROFIT | 31,325 | 24,523 | 99,558 | 84,688 |
| EXPENSES | ||||
| Selling and administrative | 18,364 | 13,903 | 65,213 | 52,224 |
| Interest on short-term debt | 1,831 | 1,541 | 6,425 | 6,127 |
| Interest on long-term debt | 943 | 240 | 2,064 | 1,024 |
| Amortization of property, plant and equipment | 1,270 | 898 | 4,444 | 3,068 |
| 22,408 | 16,582 | 78,146 | 62,443 | |
| EARNINGS BEFORE INCOME TAXES | 8,917 | 7,941 | 21,412 | 22,245 |
| PROVISION FOR (RECOVERY OF) INCOME TAXES | ||||
| Current | (70) | 2,183 | 1,314 | 7,221 |
| Future | 2,264 | 34 | 4,641 | (198) |
| 2,194 | 2,217 | 5,955 | 7,023 | |
| NET EARNINGS AND COMPREHENSIVE INCOME | 6,723 | 5,724 | 15,457 | 15,222 |
| RETAINED EARNINGS (DEFICIT), BEGINNING OF PERIOD | 18,875 | 7,656 | 12,579 | (89,116) |
| REDUCTION OF STATED CAPITAL | - | - | 89,116 | |
| DIVIDENDS | (830) | (801) | (3,268) | (2,643) |
| CHARGE FOR NORMAL COURSE ISSUER BID | (7) | - | (7) | - |
| RETAINED EARNINGS, END OF PERIOD | 24,761 | 12,579 | 24,761 | 12,579 |
| Earnings per share | ||||
| Basic | 0.37 | 0.35 | 0.85 | 1.03 |
| Diluted | 0.34 | 0.35 | 0.83 | 1.02 |
Appendix 3
RECONCILIATION OF NET EARNINGS TO EBITDA
IN THOUSANDS
|
3 months ended December 31, 2010 (unaudited) |
3 months ended December 31, 2009 (unaudited) |
12 months ended December 31, 2010 (unaudited) |
12 months ended December 31, 2009 (unaudited) |
||
| Net earnings | 6,723 | 5,724 | 15,457 | 15,222 | |
| Long-term interest | 943 | 240 | 2,064 | 1,024 | |
| Amortization of property, plant and equipment | 1,270 | 898 | 4,444 | 3,068 | |
| Income taxes | 2,194 | 2,217 | 5,955 | 7,023 | |
| Rental depreciation | 246 | 173 | 805 | 949 | |
| Lease depreciation | 1 | 36 | 31 | 396 | |
| EBITDA before floor plan interest | 11,377 | 9,288 | 28,756 | 27,682 | |
| Floor plan interest | 1,502 | 1,298 | 5,091 | 5,048 | |
| EBITDA | 12,879 | 10,586 | 33,847 | 32,730 | |
| Overhead Absorption | 79% | 67% | 76% | 84% | |
Rocky Mountain Dealerships Inc.
Brian Taschuk, Chief Executive Officer; or
Garrett Ganden, Chief Financial Officer
828 - 46th Avenue S.E.
Calgary, Alberta T2G 2A6
Telephone: (403) 243-8600, Fax (403) 243-2264