May 10, 2011 (Canada NewsWire Group) --
Issued: 18,708,400 shares
CALGARY, May 10 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky" or the "Company") today reported financial results for the three months ended March 31 ("Q1"), 2011.
- Revenue increased 31% to $157.6 million from $120.5 million in Q1 2010
- Net earnings increased 52% from $1.8 million to $2.7 million compared with Q1 2010
- Same-store revenue growth of $5.1 million in addition to $31.9 million of acquired growth
- Gross profit margin increase from 16.0% of total revenue in Q1 2010 to 16.3% in 2011
- Diluted earnings per share increased to $0.14 per share from $0.10 per share in Q1 2010
- EBITDA increase of 45% from Q1 2010 to $7.1 million
Commenting on the first quarter, Matthew Campbell, Rocky's Executive Chairman of the Board, said, "2011 has started off strong for Rocky due to increases in new equipment sales, used equipment sales and product support sales in the quarter. New equipment deliveries increased in both construction and agriculture. While product support was strong at our construction locations, confidence in the Alberta market was somewhat offset by lingering issues with snow pack and flooding in Manitoba. Our diverse geographic footprint helped us substantially increase our earnings in the quarter in spite of inclement weather."
Mr. Campbell continued, "The late spring thaw will shift some of our typical first quarter product support business to the second quarter. With the current high commodity prices expectations for both construction and agriculture are good for the remainder of 2011."
Organizational Changes
Rocky also announced today that Brian Taschuk tendered his resignation as a director and Chief Executive Officer of Rocky for personal reasons. M.C. (Matt) Campbell has reassumed the duties of Chief Executive Officer, and will also continue on in his current capacity as Executive Chairman of the Board of Directors. Brian Taschuk commented, "Although my departure may seem sudden I know the depth Rocky has in their management team and I feel the infrastructure is in place for its continued success." The Board of Directors would like to thank Brian for his contribution to the success of Rocky and wishes him all the best in his future endeavours.
In addition, Mr. Garrett Ganden, Rocky's Chief Financial Officer, has been appointed Chief Operating Officer and will report directly to Mr. Campbell. Mr. Ganden, who has done an outstanding job as the company's CFO for the past several years, will retain his CFO responsibilities in his new role until his successor has been announced.
Mr. Derek Stimson remains as President of Rocky and a director of the Company and continues to be the driving force in the development of the company's agriculture equipment business.
Commenting on these changes, CEO Matt Campbell stated "I feel confident that the announced changes will ultimately streamline and strengthen Rocky's management team. Rocky's prospects for revenue and earnings growth both in the near and longer term continue to remain positive, and I have the utmost confidence in both Derek Stimson and Garrett Ganden, who will continue to assist me in the leadership of our company."
Quarterly Cash Dividend
On May 9, 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 June 30, 2011, to shareholders of record at close of business on May 31, 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 Q1 results on Tuesday, May 10, 2011, at 9:00 am MT. Investors interested in participating in the live call can dial 1-888-231-8191 (toll free) or 1-647-427-7450. An archived recording of the call will be available approximately two hours after its completion on Rocky Mountain's website or by dialling 1-800-642-1687 (toll free) or 1-416-849-0833, passcode: 60862403. The archive will remain available until Tuesday, May 24, 2011.
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 Sheet Expressed in thousands of Canadian dollars (Unaudited) |
||||||||||||
|
March 31, 2011 |
December 31, 2010 |
January 1, 2010 |
||||||||||
| $ | $ | $ | ||||||||||
| ASSETS | ||||||||||||
| CURRENT | ||||||||||||
| Cash | 15,221 | 17,139 | 8,912 | |||||||||
| Trade receivables and other | 28,053 | 27,509 | 24,186 | |||||||||
| Inventories | 358,693 | 327,739 | 247,627 | |||||||||
| Prepaid expenses | 2,341 | 1,611 | 509 | |||||||||
| 404,308 | 373,998 | 281,234 | ||||||||||
| NON-CURRENT | ||||||||||||
| Property, plant and equipment | 22,343 | 20,600 | 19,343 | |||||||||
| Goodwill | 8,655 | 8,574 | 4,316 | |||||||||
| 30,998 | 29,174 | 23,659 | ||||||||||
| 435,306 | 403,172 | 304,893 | ||||||||||
| LIABILITIES | ||||||||||||
| CURRENT | ||||||||||||
| Bank indebtedness | - | - | 1,947 | |||||||||
| Trade payables, accruals and other | 35,475 | 29,480 | 30,825 | |||||||||
| Floor plan payable | 233,558 | 210,425 | 158,793 | |||||||||
| Deferred revenue | 2,616 | 337 | 3,154 | |||||||||
| Current portion of long-term debt | 7,505 | 6,574 | 8,545 | |||||||||
| Current portion of obligations under finance leases | 1,032 | 825 | 619 | |||||||||
| 280,186 | 247,641 | 203,883 | ||||||||||
| NON-CURRENT | ||||||||||||
| Long-term debt | 13,959 | 13,058 | 12,968 | |||||||||
| Obligations under finance leases | 1,969 | 1,387 | 896 | |||||||||
| Convertible debentures | 28,496 | 28,411 | - | |||||||||
| Deferred tax liability | 2,181 | 6,851 | 1,051 | |||||||||
| 46,605 | 49,707 | 14,915 | ||||||||||
| 326,791 | 297,348 | 218,798 | ||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
| Common shares | 76,707 | 76,144 | 70,601 | |||||||||
| Convertible debentures | 539 | 539 | - | |||||||||
| Contributed surplus | 5,134 | 4,837 | 3,213 | |||||||||
| Retained earnings | 26,135 | 24,304 | 12,281 | |||||||||
| 108,515 | 105,824 | 86,095 | ||||||||||
| 435,306 | 403,172 | 304,893 | ||||||||||
| Appendix 2 | ||||||
|
ROCKY MOUNTAIN DEALERSHIPS INC. Consolidated Statement of Net Earnings and Comprehensive Income Three Month Periods Ended Expressed in thousands of Canadian dollars (Unaudited) |
||||||
|
March 31, 2011 |
March 31, 2010 |
|||||
| $ | $ | |||||
| REVENUE | ||||||
| New units | 84,724 | 61,938 | ||||
| Used units | 46,542 | 38,087 | ||||
| Parts | 14,693 | 10,738 | ||||
| Service | 10,614 | 9,129 | ||||
| Other | 1,006 | 583 | ||||
| 157,579 | 120,475 | |||||
| COST OF SALES | 131,878 | 101,244 | ||||
| GROSS PROFIT | 25,701 | 19,231 | ||||
| EXPENSES | ||||||
| Selling, general and administrative | 19,687 | 15,062 | ||||
| Interest on short-term debt | 1,544 | 1,363 | ||||
| Interest on long-term debt | 867 | 228 | ||||
| 22,098 | 16,653 | |||||
| EARNINGS BEFORE INCOME TAXES | 3,603 | 2,578 | ||||
| PROVISION FOR (RECOVERY OF) INCOME TAXES | ||||||
| Current | 5,610 | 965 | ||||
| Deferred | (4,670) | (143) | ||||
| 940 | 822 | |||||
| NET EARNINGS AND COMPREHENSIVE INCOME | 2,663 | 1,756 | ||||
| Earnings per share | ||||||
| Basic | 0.14 | 0.10 | ||||
| Diluted | 0.14 | 0.10 | ||||
| Appendix 3 | |||||||
| RECONCILIATION OF NET EARNINGS TO EBITDA | |||||||
| $ In Thousands (unaudited) | |||||||
| For the Three Months Ended March 31, | |||||||
| 2011 | 2010 | ||||||
| $ | $ | ||||||
| Net earnings |
2,663 |
1,756 | |||||
| Long-term interest |
867 |
228 | |||||
| Amortization of property, plant and equipment |
1,275 |
976 | |||||
| Income taxes |
940 |
822 | |||||
| Rental depreciation |
87 |
69 | |||||
| Lease depreciation |
- |
16 | |||||
| EBITDA before floor plan interest | 5,832 | 3,867 | |||||
| Floor plan interest | 1,309 | 1,069 | |||||
| EBITDA | 7,141 | 4,936 | |||||
| Overhead Absorption | 64% | 70% | |||||
Rocky Mountain Dealerships Inc.
Matt Campbell, Chief Executive Officer; or
Garrett Ganden, Chief Operating Officer & Chief Financial Officer
828 - 46th Avenue S.E.
Calgary, Alberta T2G 2A6
Telephone: (403) 243-8600, Fax (403) 243-2264