Florida Rock Industries, Inc. Announces Record First Quarter Results
biz.yahoo.com
Tuesday January 24, 4:20 pm ET
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Jan. 24, 2006--Florida Rock Industries, Inc. (NYSE:FRK) today announced record first quarter net income of $42,015,000 or $.63 per diluted share for the first quarter of fiscal year 2006 versus $30,087,000 or $.45 per diluted share for the same quarter of fiscal year 2005. This year's first quarter included after-tax gains of $2,562,000 ($.04 per diluted share) from the sale of real estate and the exchange of land parcels in the settlement of a lawsuit.
First Quarter Results
Consolidated total sales for the quarter increased 22.0% to $306,252,000 from $250,928,000 in the same quarter last year. Average selling prices and product volumes increased in all three segments. Gross profit increased approximately 28.4% to $89,325,000 compared to $69,539,000 in the same quarter last year. Gross profit and margin improved in all three segments despite increases in fuel costs of $3,662,000.
First quarter operating profit increased 31.5% to $61,749,000 ($1,196,000 of which were real estate gains) versus $46,947,000 in the first quarter of fiscal 2005.
Selling, general and administrative expenses for the first quarter of fiscal year 2006 increased to $28,772,000 (9.4% of sales) from $22,638,000 (9.0% of sales) last year primarily due to management incentive compensation and profit sharing which are both linked to earnings growth exclusive of real estate gains. In addition, stock option expenses related to the adoption of FAS123R increased costs $1,378,000.
Acquisitions
In the first quarter of fiscal year 2006, the Company closed on the acquisition of Grand Rivers Quarry, a newly developed limestone quarry located on the Tennessee River in Western Kentucky. On or about January 31, 2006, the Company anticipates closing on the acquisition of Newington Concrete Corporation. Newington operates four ready-mix concrete facilities in the Northern Virginia area.
Commenting on the first quarter of fiscal year 2006 results, President and CEO John Baker stated that:
"Despite interruptions from Hurricane Wilma early in the quarter, we are pleased to report earnings growth of 39.6% year over year for the first quarter of 2006. This impressive performance is a product of the attention given to constant improvement from our dedicated work force to whom we again express our sincere appreciation."
Outlook: For the coming quarter, demand remains strong in the majority of our markets. Price increases implemented January 1 have had good traction and most markets appear to be anticipating additional price increases on July 1. |
