- SECOND QUARTER REVENUES INCREASED 14.9% - BOARD APPROVES DIVIDEND OF $0.045 PER COMMON SHARE
CALGARY, Aug. 13 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky Mountain" or the "Company"), a leading Canadian network of full service agricultural and construction equipment dealerships, today reported financial results for the three and six month periods ended June 30, 2008. Rocky Mountain 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.
Second Quarter Results
For the second quarter, revenue increased 14.9% to $94.3M from revenue of $82.1M for the second quarter of the prior year. All three of the Company's main revenue sources - Equipment, Parts and Service - contributed to this period over period organic revenue growth. Net income for the second quarter was $2.7M, or $0.21 per diluted share.
First Half Results
For the first six months ended June 30, 2008, revenues increased $23.5M, or 16.7% to $164.0M from revenue of $140.5M in the same period last year. Net income was $3.3M or $0.26 per diluted share.
Commenting on the Company's results for the second quarter and first half of the year, Matt Campbell, CEO of Rocky Mountain said, "We are extremely pleased with the organic growth achieved in all three of our primary revenue sources. Our integration initiatives throughout the Company are progressing well and we continue to pursue the aggressive expansion of our agricultural equipment business through selective strategic acquisitions to augment our strong organic growth. During the second quarter, we completed the acquisition of Roydale International Ltd., consolidating Case distribution for Southern Alberta and announced our intention to expand our business into Manitoba and Saskatchewan through the proposed acquisition of Miller Farm Equipment 2005 Inc., a six dealer network with revenues exceeding $100M."
DIVIDEND
The Company announces that the Board of Directors of Rocky Mountain declared a dividend of $0.045 per common share on the Company's outstanding common shares. The common share dividend is payable on September 30, 2008 to shareholders of record at close of business on August 29, 2008.
This dividend is designated by Rocky Mountain to be an eligible dividend for purpose 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.
About Rocky Mountain:
Rocky Mountain represents one of Canada's largest agriculture and construction equipment dealerships with 14 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".
Forward Looking Information
Certain statements contained in this press release constitute "forward-looking information" within the meaning of applicable Canadian securities legislation.
In particular in the quote from Matt Campbell under "First Half Results" he stated "During the second quarter we ... announced our intention to expand the business into Manitoba and Saskatchewan through the proposed acquisition of Miller Farm Equipment 2005 Inc...a six dealer network with revenues exceeding $100M."
The foregoing statement assumes that the Company will complete this purchase. Although the Company has been working toward completing this acquisition, no formal agreement has yet been entered into and it is possible that such agreement will not ultimately be completed, although the Company is not aware of any reason that such purchase should not take place.
%SEDAR: 00026106E