RME - <span class="simulate_din_font">Rocky Mountain Dealerships Inc. announces Q1 results and 50% increase in dividend</span> (CAD 0.0675)

Company: Rocky Mountain Dealerships Inc.
Stock Name: RME
Amount: CAD 0.0675
Announcement Date: 14/05/2012
Record Date: 29/05/2012

Dividend Detail:

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Strong sales growth in all sectors, offer to repurchase debentures lead
highlights

CALGARY, May 14, 2012 /CNW/ - Rocky Mountain Dealerships Inc. (TSX: RME, hereinafter "Rocky") today reported financial results for the three
months ended March 31, 2012.

HIGHLIGHTS:

• 
  Increased revenues by 28.2% to $192.1 million.
  


• 
  Gross profit increased by 16.3% to $27.7 million.
  


• 
  Generated net earnings of $2.2 million ($0.11 per fully diluted share)
  compared to $2.7 million ($0.14 per fully diluted share) in 2011.
  


• 
  Cash Flow from Net Earnings^* of $2.3 million, up from ($0.3) million in 2011.
  


• 
  Announced 50% increase in annual dividend to $0.27 per common share.
  


• 
  Announced offer, and repurchased, all of the 7% unsecured subordinated
  convertible debentures in the principal amount of $31.5 million (the
  "Debentures"), reducing future dilution and interest rate costs.
  

* Non-IFRS measures are defined and discussed further in the Management's Discussion and Analysis for the three months ended March 31, 2012, which can be found at www.sedar.com.

Matt Campbell, CEO of Rocky, noted "Our results for the first quarter of
2012 reflect our success across several key areas, including same-store
equipment and product support sales.�� Although our gross margin
percentage declined, due primarily to a decrease in manufacturer
incentives in the amount of $1.2 million, our increased revenues
bolstered our total gross profit.

Of particular note, we posted yet another quarter of positive cash flow
from operations, further enhancing our already strong cash position.��
As a result of continued generation of free cash flow, we have
increased our annual dividend by 50% to $0.27 per common share.�� This
reflects our continued confidence not only in our industry, but in our
ability to generate cash and return value to shareholders.

SG&A as a percentage of revenue declined in the quarter, despite the
increased costs associated with the ongoing assessment of our
organizational structure and rebranding initiatives, as well as
increased commissions associated with our elevated sales levels.

Rocky's success and growth, while predicated on improved economic
conditions and factors, was also affected by our ability to be a
partner of choice for equipment purchasers. The positive outlook for
the agriculture and construction end-markets, the impact of previously
added dealerships and trade areas, and the number of available
acquisition targets in our core operating areas leave us in a good
position for revenue and earnings growth into the future.

Subsequent to the quarter end, we announced that we were successful in
repurchasing 100% of our Debentures.�� We expect that this will result
in cash interest savings for Rocky and an increase in shareholder value
by eliminating the dilutive impact caused by the Debentures."

Quarterly Cash Dividend

On May 14, 2012, Rocky's Board of Directors declared a dividend of
$0.0675 per common share on its outstanding common shares.�� The common
share dividend is payable on June 29, 2012 to shareholders of record at
close of business on May 31, 2012.

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

Rocky will host a conference call to discuss Q1 results on Tuesday, May
15^th, 2012, 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:
74706466.�� The archive will remain available until Tuesday, May 29,
2012.

Caution regarding forward-looking statements

Certain information set forth in this news release, including, without
limitation, the information regarding agriculture and construction
outlooks, the economic impact of previously-acquired stores, and the
financial impact of potential acquisition targets, is forward-looking
information within the meaning of applicable Canadian securities laws.��
By its nature, forward-looking information is subject to numerous risks
and uncertainties, some of which are beyond Rocky's control.�� There is
significant risk that the forward-looking statements will prove not to
be accurate.�� Readers are cautioned not to place undue reliance on
forward-looking statements as a number of factors could cause actual
future performance and events to differ materially from that expressed
in the forward-looking statements.�� Accordingly, this news release is
subject to the disclaimer and qualified by risks and other factors
discussed by Rocky in its management's discussion and analysis ("MD&A")
for the period ended March 31, 2012, and as discussed in Rocky's Annual
Information Form dated March 19, 2012 under the heading "Risk
Factors."�� Except as required by law, Rocky disclaims any intention or
obligation to update or revise forward-looking statements, and further
reserves the right to change, at any time, at its sole discretion, its
current practice of updating its guidance and outlooks.

About Rocky

Rocky is one of Canada's largest agriculture and construction equipment
dealerships with 36 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)
��	��	��	��
��		March 31, 2012	December 31, 2011
Assets		��	��
��	Current assets	485,946	434,479
��	Property and equipment	17,941	21,369
��	Goodwill	9,961	9,961
Total assets		513,848	465,809
��		��	��
Liabilities and equity		��	��
��	Current liabilities	334,909	286,175
��	Long-term debt	11,119	11,701
��	Obligations under finance leases	1,440	1,589
��	Convertible debenture	28,853	28,761
��	Deferred income taxes	6,782	8,283
��	Derivative financial instruments	477	1,139
��		383,580	337,648
��	Shareholders' equity	130,268	128,161
Total liabilities and equity		513,848	465,809

Selected Financial Information For the three months ended March 31 Expressed in thousands of Canadian dollars, except per share amounts and percentages (Unaudited)
��	��	��	��	��	��
��		2012		2011
Sales		��	��	��	��
��	New equipment	112,432	58.5%	84,724	56.5%
��	Used equipment	58,004	30.2%	46,542	31.1%
��	Parts	13,840	7.2%	11,905	7.9%
��	Service	6,640	3.5%	5,650	3.8%
��	Other	1,135	0.6%	1,006	0.7%
��		192,051	100.0%	149,827	100.0%
Cost of sales		164,331	85.6%	125,990	84.1%
Gross profit		27,720	14.4%	23,837	15.9%
��		��	��	��	��
Selling, general and administrative		22,084	11.5%	17,823	11.9%
Interest on short-term debt		1,727	0.9%	1,544	1.0%
Interest on long-term debt		870	0.4%	867	0.6%
Earnings before income taxes		3,039	1.6%	3,603	2.4%
Provision for income taxes		880	0.5%	940	0.6%
Net earnings		2,159	1.1%	2,663	1.8%
Earnings per share		��	��	��	��
��	Basic	0.12	��	0.14	��
��	Diluted	0.11	��	0.14	��
Dividends per share		0.045	��	0.045	��
��		��	��	��	��
Non-IFRS Measures*		��	��	��	��
EBITDA		5,342	2.8%	5,832	3.9%
Operating SG&A��		20,916	10.9%	16,548	11.0%
Cash Flow from Net Earnings		2,310	1.2%	(280)	(0.2%)
Normalized Diluted Earnings per Share		0.11	��	0.14

* Non-IFRS measures are defined and discussed further in the Management's Discussion and Analysis for the three months ended March 31, 2012, which can be found at www.sedar.com.

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For further information:

Rocky Mountain Dealerships Inc.
Matt Campbell, Chief Executive Officer; or
Garrett Ganden, Chief Operating Officer
#301, 3345 - 8^th Street S.E.
Calgary, Alberta T2G 3A4
Telephone: (403) 265-7364, Fax (403) 214-5644