Rocky Mountain Dealerships Inc. (TSX:RME) Announces Record Third Quarter
Sales for the Period ended September 30, 2009
- Third quarter revenue increased 56% year over year to
- Third quarter net earnings increased 98% year over year to
- Declares quarterly cash dividend of
(Stock Symbol "RME" - TSX)
For the fiscal 2009 third quarter, net sales increased 56% to
Gross profit for the fiscal 2009 third quarter increased 22% to
Selling, general and administrative expenses improved to 8.6% of sales in the fiscal 2009 third quarter, 9.3% when normalized for the foreign exchange gain recognized in the quarter of approximately
Operating income in the third quarter 2009 increased to
Net income for the third quarter of fiscal 2009 was
Cash Flow & Liquidity
The Company ended the third quarter fiscal 2009 in a very solid financial position. The Company's net debt to EBITDA ratio was 0.45, which is below the Company's goal of 1.0x - 1.5x. The bought deal financing the Company completed in the third quarter has decreased the net debt to EBITDA ratio and has positioned the Company well to continue with its expansion strategies. Working capital at the end of the third quarter fiscal 2009 was
Quarterly Cash Dividend
The Company announces that the Board of Directors of
This dividend is designated by
Conference Call
The Company will host a conference call to discuss its third quarter results on
About
Additional information on
Income Statements (Unaudited) ------------------------------------------------------------------------- Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 $ $ $ $ ---------------------------------------------- SALES New units 69,353 46,535 207,461 149,851 Used units 46,144 21,110 124,122 47,150 Product support 29,068 23,213 72,545 53,713 Finance and insurance 527 786 1,403 1,972 Rental and leases 713 1,598 2,551 4,521 ---------------------------------------------- 145,805 93,242 408,082 257,207 COST OF SALES (including amortization of $294 and $1,136 for the three and nine months ended) (2008 - $1,239 and $3,555) 123,537 75,053 347,917 210,243 ---------------------------------------------- GROSS PROFIT 22,268 18,189 60,165 46,964 ---------------------------------------------- EXPENSES Selling and administrative 12,497 11,650 38,321 30,493 Interest on short-term debt 1,481 1,034 4,586 3,182 Interest on long-term debt 237 339 784 1,045 Amortization of intangible assets - 758 - 2,274 Amortization of property, plant and equipment 810 579 2,170 1,365 ---------------------------------------------- 15,025 14,360 45,861 38,359 ---------------------------------------------- EARNINGS BEFORE INCOME TAXES 7,243 3,829 14,304 8,605 ---------------------------------------------- PROVISION FOR (RECOVERY OF) INCOME TAXES Current 2,484 1,634 5,038 3,799 Future (182) (296) (232) (956) ---------------------------------------------- 2,302 1,338 4,806 2,843 ---------------------------------------------- NET EARNINGS AND COMPREHENSIVE INCOME 4,941 2,491 9,498 5,762 (DEFICIT) RETAINED EARNINGS, BEGINNING OF PERIOD 3,339 3,033 (89,116) 328 REDUCTION OF STATED CAPITAL - - 89,116 - DIVIDENDS (624) (592) (1,842) (1,158) ---------------------------------------------- RETAINED EARNINGS, END OF PERIOD 7,656 4,932 7,656 4,932 ---------------------------------------------- ---------------------------------------------- Earnings per share Basic $0.34 $0.19 $0.69 $0.46 ---------------------------------------------- ---------------------------------------------- Diluted $0.34 $0.19 $0.69 $0.45 ---------------------------------------------- ---------------------------------------------- Balance Sheets (Unaudited) ------------------------------------------------------------------------- September 30, December 31, 2009 2008 $ $ --------------------------- ASSETS CURRENT Cash 14,952 493 Accounts receivable and other 23,369 40,614 Inventory 209,955 207,467 Prepaid expenses 559 392 --------------------------- 248,835 248,966 Property, plant and equipment 18,260 21,458 Intangible assets - - Goodwill and other 3,902 - --------------------------- 270,997 270,424 --------------------------- --------------------------- LIABILITIES CURRENT Bank indebtedness 3,667 5,223 Accounts payable and accrued liabilities 25,347 29,973 Floor plan payable 133,927 150,449 Deferred revenue 2,369 9,437 Due to related parties 226 3,691 Current portion of long-term debt 8,198 5,910 Current portion of obligations under capital lease 496 300 --------------------------- 174,230 204,983 Long-term debt 14,424 17,803 Obligations under capital lease 720 343 Future income taxes 1,017 1,126 --------------------------- 190,391 224,255 --------------------------- CONTINGENCY AND GUARANTEE COMMITMENTS SHAREHOLDERS' EQUITY Common shares 70,410 133,879 Contributed surplus 2,540 1,406 Retained earnings (deficit) 7,656 (89,116) --------------------------- 80,606 46,169 --------------------------- 270,997 270,424 --------------------------- --------------------------- RECONCILIATION OF NET EARNINGS TO EBITDA 3 Months 3 Months 9 Months 9 Months ended ended ended ended Sept 30, Sept 30, Sept 30, Sept 30, 2009 2008 2009 2008 (unaudited) (unaudited) (unaudited) (unaudited) ----------------------------------------------- EBITDA $ $ $ $ Net Earnings 4,941 2,491 9,498 5,762 Long-term interest 237 339 784 1,045 Depreciation 810 579 2,170 1,365 Amortization of intangibles - 758 - 2,274 Income taxes 2,302 1,338 4,806 2,843 Rental depreciation 241 816 776 1,881 Lease depreciation 53 423 360 1,674 ----------------------------------------------- EBITDA 8,584 6,744 18,394 16,844 ----------------------------------------------- ----------------------------------------------- Overhead Absorption 114% 87% 92% 78%
For further information: Rocky Mountain Dealerships Inc., M.C. (Matt) Campbell, Chairman and Chief Executive Officer; Brian Taschuk, Chief Operating Officer; or Garrett Ganden, Chief Financial Officer, 828 - 46th Avenue S.E., Calgary, Alberta, T2G 2A6, Telephone: (403) 243-8600, Fax (403) 243-2264; Investor Relations, Renmark Financial Communications Inc., John Boidman, Vice President, Telephone: (514) 939-3989, Email: [email protected]
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