Rock of Ages Third Quarter Net Income More Than Triples to $0.35 Per Diluted Share On a 34% Increase in Revenue to $22.0 Million
Nine-month Net Income is $0.64 Per Diluted Share vs. $0.20 on Revenue of $60.1 Million vs. $37.1 Million
CONCORD, N.H.--(BUSINESS WIRE)--Oct. 26, 1998-- Rock of Ages Corp. (Nasdaq/NM:ROAC - news) Monday announced that net income for the third quarter ended Sept. 30, 1998 more than tripled to $2,754,000, or $0.35 per diluted share on 7,970,000 diluted shares outstanding.
This compares with net income of $833,000, or $0.19 per diluted share on 4,472,000 diluted shares outstanding, for the third quarter of 1997. Revenue increased 34% to $22,006,000 from $16,374,000 for the same period last year. The increase in diluted shares outstanding is attributable to the company's initial public offering of common stock completed on Oct. 21, 1997.
For the nine months ended Sept. 30, 1998, net income increased more than six-fold to $5,110,000, or $0.64 per diluted share, from $841,000, or $0.20 per diluted share, for last year's first nine months. Revenue increased 62% to $60,132,000 from $37,141,000 for the same period last year.
''Our program to expand Rock of Ages' granite quarrying and manufacturing operations, combined with the acquisition of higher margin memorial retailers, was designed to stimulate revenue growth and enhance profitability. This is exactly what is happening,'' said Chairman and Chief Executive Officer Kurt M. Swenson.
He noted that gross margin for the third quarter rose to 40% from 27% a year ago, while operating margin improved to 16% from 10%.
Quarrying revenue increased 34% to $4,787,000 for the third quarter. Retailing revenue increased to $5,640,000 for the period, reflecting the acquisitions of monument retailers completed through Sept. 30, 1998. The company had no revenue from retail operations for the 1997 third quarter or first nine months.
Total manufacturing revenue was $11,579,000, compared with $12,815,000 for last year's third quarter, as sales of finished granite to industrial customers declined by approximately $1,500,000 from last year's unusually strong pace. Revenue from memorial manufacturing increased 3% for the period.
Since its acquisition program was launched a year ago, Rock of Ages has acquired 56 retail locations in eight states, representing approximately $28.2 million in annual revenue. The company acquired North Hill Marble & Granite Co., Akron, Ohio, during the third quarter, and completed the acquisitions of Gallagher Memorials Co., Malaga, Ohio; Kotecki Monument Co., Cleveland; and the Owatonna Monument Co., Owatonna, Minn., in October.
These latter three acquisitions will be reflected in operating results for the fourth quarter.
Swenson said that approximately $43 million of Rock of Ages' $50 million line of credit remains available to the company for its continuing retail acquisition program.
Rock of Ages is the largest integrated granite quarrier, manufacturer and retailer of finished granite memorials and granite blocks for memorial use in North America.
The statements contained in this release that are not historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties including, without limitation, demand and competition for the company's products, and other risks or uncertainties detailed in the company's filings with the Securities and Exchange Commission. |
