Rocky Mountain Dealerships Inc. (hereinafter "Rocky") reported its financial results for the quarter ended June 30, 2013.
HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2013
- Increased revenues by 5.5% to $238.1 million
- Gross profit increased by 5.0% to $35.9 million (15.1% of sales)
- Normalized Diluted Earnings Per Share of $0.22
- Generated Cash Flow from Net Earnings of $5.6 million
- EBITDA of $8.6 million
- Increased quarterly dividend by 48.1% to $0.10 per share
Commenting on the quarterly results, Matt Campbell, CEO of Rocky, stated, "Rocky delivered growth in both revenue and gross profit while retaining relatively consistent earnings on a normalized basis versus last year. This despite weather related challenges and a disappointing performance from our construction stores.
"A late spring abbreviated the 2013 seeding window. The flooding in late June caused little damage to crops, but was enough to create some apprehension amongst some of our customers. Weather conditions notwithstanding, the crops across the Canadian Prairies are maturing well and although commodity prices have softened as of late, they remain healthy and should contribute to strong crop receipts.
"Despite softer sales during the quarter, we achieved a $28 million sequential decrease in our inventory levels. This remains an area of focus for Rocky going forward, and we expect this trend to continue throughout the balance of the year.
"The underlying business fundamentals of Rocky remain strong. We have exclusive distribution rights for some of the world's leading equipment brands in a vibrant agriculture and construction market. Our installed base and customer relationships create an annuity of equipment sales and product support revenue, which help drive dependable earnings and cash flow. It is these strong fundamentals that continue to provide stability in our results and value to our shareholders."
Appointment of Lead Director
Rocky also announced today that it has appointed Paul Walters as its Lead Director. Commenting on this appointment, Matt Campbell noted, "We are grateful that Mr. Walters has accepted this appointment as Lead Director of Rocky. He possesses a wealth of experience, having chaired public company boards in the past, and is well suited to assist Rocky in this capacity."
Rocky Announces Quarterly Cash Dividend
The Board of Directors ("Board") of Rocky declared a dividend today of $0.10 per common share on its outstanding common shares. The common share dividend is payable on September 30, 2013, to shareholders of record as of August 30, 2013. 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. Please consult with your own tax advisor for advice with respect to the income tax consequences to you from Rocky designating its dividends as "eligible dividends."
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 agriculture and construction equipment and offers product support and finance to its customers.