Rocky Mountain Revenues Rise 20.8% in 3Q
CALGARY, ALBERTA, November 5, 2012 — Rocky Mountain Dealerships Inc. (TSX:RME, OTCQX:RCKXF, hereinafter “Rocky”) today reported financial results for the three and nine months ended September 30, 2012.
HIGHLIGHTS FOR THE QUARTER ENDED SEPTEMBER 30, 2012:
- Increased revenues by 20.8% to $247.5 million (15.2% on a same store basis).
- Gross profit increased by 19.2% to $39.7 million (16.0% of sales).
- Normalized Diluted Earnings per Share(1) of $0.45, up from $0.35 in 2011.
- Generated Cash Flow from Net Earnings(1) of $10.3 million.
- EBITDA(1) increased by 12.6% to $13.5 million.
- Paid dividends of $0.0675 per share
- Completed the acquisition of Camrose Farm Equipment Ltd.
HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012:
- Increased revenues by 18.3% to $665.3 million (15.7% on a same store basis).
- Gross profit increased by 15.2% to $101.6 million (15.3% of sales).
- Normalized Diluted Earnings per Share(1) of $0.83, up from $0.81 in 2011
- Generated Cash Flow from Net Earnings(1) of $17.4 million.
Matt Campbell, CEO of Rocky, noted, “An excellent growing season translated into strong earnings for the period. The elimination of the dilution associated with the convertible debentures, coupled with these favourable results, generated record diluted earnings per share for our shareholders this quarter.
“As previously discussed, Rocky has made a significant investment over the last year in preparing our organization for the future. We have initiated new training programs, new procedural and technological improvements and rationalized our stores under a single, strong brand. The largest part of these costs has now been incurred, and we look forward to realizing their returns through improved operating efficiency, better brand recognition and, ultimately, an enhanced relationship with our customers.
“During the quarter, we acquired 100% of the outstanding common shares of Camrose Farm Equipment Ltd, a Case IH and New Holland Agriculture dealer with stores in Camrose and Killam, Alberta. Subsequent to the quarter end, we purchased the Case IH Agriculture dealership assets of Houlder Automotive Ltd., with stores in Grimshaw and Falher, Alberta. With these acquisitions, Rocky continues to expand its reach across the Alberta agriculture market.
“Overall, the continued strong economic conditions in both agriculture and construction have played a part in Rocky’s success and growth, while at the same time our ability to be a partner of choice for equipment purchasers allowed us to expand our same store revenues. The impact of previously acquired dealerships and trade areas, along with our strong OEM relationships, position us well to pursue our revenue and earnings growth initiatives.”
Quarterly Cash Dividend
On November 5, 2012, Rocky’s Board of Directors declared a quarterly dividend of $0.0675 per common share on the Company's outstanding common shares. The common share dividend is payable on December 31, 2012, to shareholders of record at close of business on November 30, 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.
Rocky will host a conference call to discuss its Q3 results on Tuesday, November 6, 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: 37830714. The archive will remain available until Tuesday, November 20, 2012.
Rocky is one of Canada's largest agriculture and construction equipment dealership networks with branches located throughout Alberta, Saskatchewan and Manitoba. Through its network of Rocky Mountain Equipment locations, 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.
For further information, please contact:
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