Stock Name: RME
Amount: CAD 0.045
Announcement Date: 10/11/2011
Record Date: 28/11/2011
Dividend Detail:
Achieves strong results in all key operating metrics; EBITDA* increase of 58.3%
CALGARY, Nov. 10, 2011 /CNW/ - Rocky Mountain Dealerships Inc. (TSX:RME) today reported financial results for the three and nine months ended
September 30, 2011.
Third Quarter Highlights:
Increased revenues by 25.5% to $213.9 million as compared to the same
period in 2010.
Increased gross profit as a percentage of sales to 16.5% from 15.3% in
2010.
Generated Normalized Diluted Earnings per Share* of $0.35.
EBITDA* increased by 58.3% to $12.0 million.
Cash flow from Net Earnings* of $12.0 million, up from $5.9 million in 2010.
| | | | * Non-IFRS measurements are defined and discussed further in the Management's Discussion and Analysis for the three and nine month periods ended September 30, 2011, which can be found at www.sedar.com. |
"Favorable commodity prices and harvesting conditions in Western Canada
coupled with growth from our acquisitions helped drive stronger sales,
which, in turn, improved our earnings over the prior year," said Rocky
CEO Matt Campbell. "Our people worked hard to provide the equipment,
parts and service that our customers needed in this period. Our
company-wide commitment to being a reliable partner for our customers
is the largest factor in this success."
"Although we have seen some positive signs from our Manitoba stores, the
Manitoba region is still recovering from the flooding and wet weather
that has impacted much of the province over the past two years."
"Construction market deliveries on a rolling 12 month basis have
continued to improve. Manufacturer delivery delays did result in
somewhat slowed growth for the third quarter, but at current production
and demand levels, our short and mid-term outlooks for the construction
market continue to be positive."
"Our focus during the quarter continued to be driving company efficiency
and consistency throughout our large network. Stronger sales
performance from our legacy stores combined with our deliberate pause
in acquisitions, added strength to our balance sheet, including the net
addition of $9.2 million of cash in the quarter."
Quarterly Cash Dividend
On November 9, 2011, Rocky's 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 December 30, 2011 to
shareholders of record at close of business on November 30, 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. Shareholders should
consult their tax or financial advisor for further information
regarding their specific tax concerns.
Conference Call
The Company will host a conference call to discuss its third quarter
results on Thursday, November 10, 2011, at 9:00 a.m. Mountain Time.
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's website or by calling 1-855-859-2056 (toll free) or
1-416-849-0833, passcode: 15956681. The archive will remain available
until Thursday, November 24, 2011.
Caution regarding forward-looking statements
This news release may contain "forward-looking" statements within the
meaning of applicable securities legislation which involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Rocky or industry
results, to be materially different from any future results, events,
expectations, performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements typically
contain words or phrases such as "may", "outlook", "objective",
"intend", "estimate", "anticipate", "should", "could", "would", "will",
"expect", "believe", "plan" and other similar terminology suggesting
future outcomes or events. Forward-looking statements involve numerous
assumptions and should not be read as guarantees of future performance
or results. Such statements will not necessarily be accurate
indications of whether or not such future performance or results will
be achieved. Readers should not unduly rely on forward-looking
statements as a number of factors, many of which are beyond the control
of Rocky, could cause actual performance or results to differ
materially from the performance or results discussed in the
forward-looking statements, including, but not limited to; general
economic conditions; business cyclicality, construction outlook in both
the short and medium term; relationships with manufacturers; access to
products, reliance on key personnel and competition with existing
business. Although the forward-looking statements contained in this
news release are based upon what management of Rocky believes are
reasonable assumptions, Rocky cannot assure investors that actual
performance or results will be consistent with these forward-looking
statements. These statements reflect current expectations regarding
future events and operating performance and are based on information
currently available to Rocky's management. There can be no assurance
that the plans, intentions or expectations upon which these
forward-looking statements are based will occur. All forward-looking
statements in this news release are qualified in their entirety by the
aforementioned cautionary statements and those set forth in Rocky's
management's discussion and analysis for the three and nine months
ended September 30, 2011 and Rocky's annual information form dated
March 28, 2011 available on SEDAR at www.sedar.com. These forward-looking statements and outlook are made as of the date
of this news release and, except as required by applicable law, Rocky
assumes no obligation to update or revise them to reflect new events or
circumstances.
About Rocky
Rocky is one of Canada's largest agriculture and construction equipment
dealerships with 37 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.
Consolidated Balance Sheet Summary
Expressed in thousands of Canadian dollars except shares
outstanding(Unaudited)
| | | September 30, 2011 | | | December 31, 2010 | | | September 30, 2010 | ||||||
| | | | | | | | | | ||||||
Current assets | | | 387,549 | | | 373,998 | | | 323,426 | ||||||
Property, plant and equipment | | | 22,205 | | | 20,600 | | | 20,280 | ||||||
Goodwill | | | 9,961 | | | 8,482 | | | 7,601 | ||||||
Total assets | | | 419,715 | | | 403,080 | | | 351,307 | ||||||
| | | | | | | | | | ||||||
Current liabilities | | | 249,551 | | | 247,641 | | | 205,802 | ||||||
Long-term debt | | | 13,063 | | | 13,058 | | | 12,650 | ||||||
Obligations under finance leases | | | 1,770 | | | 1,387 | | | 1,308 | ||||||
Convertible debenture | | | 28,670 | | | 28,411 | | | 28,329 | ||||||
Deferred income taxes | | | 5,792 | | | 6,707 | | | 3,996 | ||||||
Derivative financial instruments | | | 972 | | | - | | | - | ||||||
Total liabilities | | | 299,818 | | | 297,204 | | | 252,085 | ||||||
Shareholders' equity | | | 119,897 | | | 105,876 | | | 99,222 | ||||||
Total liabilities and equity | | | 419,715 | | | 403,080 | | | 351,307 | ||||||
Shares outstanding | | | 18,768,399 | | | 18,427,250 | | | 18,332,849 | ||||||
Selected Financial Information
Expressed in thousands of Canadian dollars except per share amounts and
percentages (Unaudited)
| | | | For the three months ended September 30, | ||||||||||||||
| | | | 2011 $ | | | | 2010 $ | | | | Change $ | | | | Change % | ||
Sales | | | | | | | | | | | | | | | | | ||
New equipment | | | | 90,523 | | | | 68,298 | | | | 22,225 | | | | 32.5 | ||
Used equipment | | | | 78,468 | | | | 68,694 | | | | 9,774 | | | | 14.2 | ||
Parts | | | | 30,003 | | | | 21,164 | | | | 8,839 | | | | 41.8 | ||
Service | | | | 13,807 | | | | 11,184 | | | | 2,623 | | | | 23.5 | ||
Other | | | | 1,073 | | | | 1,138 | | | | (65) | | | | (5.7) | ||
Total sales | | | | 213,874 | | | | 170,478 | | | | 43,396 | | | | 25.5 | ||
Cost of sales | | | | 178,546 | | | | 144,434 | | | | 34,112 | | | | 23.6 | ||
Gross profit | | | | 35,328 | | | | 26,044 | | | | 9,284 | | | | 35.6 | ||
Gross profit percentage | | | | 16.5% | | | | 15.3% | | | | - | | | | 1.2 | ||
Expenses | | | | | | | | | | | | | | | | | ||
Selling, general and administrative | | | | 22,944 | | | | 18,210 | | | | 4,734 | | | | 26.0 | ||
Interest on short-term debt | | | | 2,099 | | | | 1,725 | | | | 374 | | | | 21.7 | ||
Interest on long-term debt | | | | 870 | | | | 662 | | | | 208 | | | | 31.4 | ||
Earnings from operations | | | | 9,415 | | | | 5,447 | | | | 3,968 | | | | 72.8 | ||
Income taxes | | | | 2,294 | | | | 1,745 | | | | 549 | | | | 31.5 | ||
Net earnings | | | | 7,121 | | | | 3,702 | | | | 3,419 | | | | 92.4 | ||
Net earnings per share | | | | | | | | | | | | | | | | | ||
Basic | | | | 0.38 | | | | 0.20 | | | | 0.18 | | | | 90.0 | ||
Diluted | | | | 0.34 | | | | 0.20 | | | | 0.14 | | | | 70.0 | ||
Dividends per share | | | | 0.045 | | | | 0.045 | | | | - | | | | - | ||
EBITDA(*) | | | | 11,996 | | | | 7,578 | | | | 4,418 | | | | 58.3 | ||
Operating SG&A (*) as % of sales | | | | 9.9% | | | | 9.9% | | | | - | | | | - | ||
(*) Non-IFRS measurements are defined and discussed further in the
Management's Discussion and Analysis for the three and nine month
periods ended September 30, 2011, which can be found at www.sedar.com.
For further information:
Rocky Mountain Dealerships Inc.
Matt Campbell, Chief Executive Officer; or
Garrett Ganden, Chief Operating Officer
#301, 3345 - 8th Street S.E.
Calgary, Alberta T2G 3A4
Telephone: (403) 265-7364, Fax (403) 214-5644
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