Rock of Ages Corporation (NASDAQ:ROAC) announced today
that net income for the second quarter of 2010 increased 9% to
$1,561,000, or $.21 per share, which included costs associated with
the exploration of strategic options and shareholder lawsuit
expenses of $493,000, or $0.07 per share. For the second quarter of
2009, net income was $1,433,000, or $.19 per share. Revenue for
this year's second quarter increased 2% to $14,663,000 compared to
$14,424,000 for the second quarter of 2009.
Divisional operating income increased 26% to $3,200,000 compared
to $2,536,000 last year, and unallocated corporate overhead
decreased to $669,000 from $692,000.
Manufacturing revenue for the second quarter of 2010 increased
7% to $8,025,000 compared to $7,512,000 for the second quarter of
2009, as sales of monuments and industrial products both increased.
Operating income in the manufacturing segment increased to
$1,562,000 from $1,373,000 a year ago, reflecting the higher
revenue and cost reduction steps initiated last year. "We remain
confident regarding the performance of our manufacturing operations
for 2010 as a whole," said Chief Executive Officer Donald
Labonte.
Quarry revenue for the second quarter of 2010 decreased 4% to
$6,638,000 compared to $6,912,000 for the second quarter of 2009,
but operating income increased 41% to $1,638,000 compared to
$1,163,000 last year, reflecting lower operating expenses and
higher productivity due to the development and production
improvements undertaken in the past year. "Our quarry development
programs have increased our ability to produce and deliver higher
quantities of saleable granite. Demand for our granites remains
strong, so we are optimistic about quarry performance going
forward," Labonte said.
Six Months Results
For the six months ended July 3, 2010, revenue increased 9% to
$22,174,000 from $20,362,000 for the first six months of 2009.
Gross profit increased 21%, SG&A was down slightly, and
divisional income increased 97% compared to the first half of
2009.
The net loss for the first half of 2010 was $531,000, or $0.07
per share, which included costs associated with the exploration of
strategic options and shareholder lawsuit expenses of $493,000, or
$0.07 per share. For the first six months of 2009, the net loss was
$1,341,000, or $0.18 per share.
About Rock of Ages
Rock of Ages (www.RockofAges.com) is the largest integrated
granite quarrier and manufacturer of finished granite memorials and
granite blocks for memorial use in North America.
Forward-Looking Statements
This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on current
expectations, estimates and projections about our business or
expected events based, in part, on assumptions made by management.
These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to
predict. Therefore, actual events, results or outcomes may differ
materially from what is expressed or forecasted in such
forward-looking statements due to numerous factors, including the
challenge of successfully implementing our strategic plan intended
to enhance our overall profitability; unanticipated overhead or
other expenses including possible expenses we may incur in
connection with responding to the recently disclosed acquisition
proposal from Swenson Granite Company LLC and related matters; and
other risks discussed from time to time in the Company's Securities
and Exchange Commission filings and reports including, but not
limited to, the risks discussed in the Company's Annual Report on
Form 10-K for the year ended December 31, 2009. Such
forward-looking statements speak only as of the date on which they
are made, and the Company does not undertake any obligation to
update any forward-looking statement to reflect events or
circumstances after the date of this release.
ROCK OF AGES
CORPORATION
Consolidated Statements of
Operations
(In thousands, except per share
amounts) (Unaudited)
Three Months Ended
Six Months Ended
July 3,
July 4,
July 3,
July 4,
2010
2009
2010
2009
Net revenue:
Quarry
$
6,638
$
6,912
$
10,260
$
10,036
Manufacturing
8,025
7,512
11,914
10,326
Total net revenue
14,663
14,424
22,174
20,362
Gross profit:
Quarry
2,134
1,746
1,784
1,521
Manufacturing
2,668
2,431
3,113
2,534
Total gross profit
4,802
4,177
4,897
4,055
Selling, general and
administrative expenses:
Quarry
496
583
1,089
1,130
Manufacturing
1,106
1,058
2,035
2,026
Total SG&A expenses
1,602
1,641
3,124
3,156
Divisional operating income:
Quarry
1,638
1,163
695
391
Manufacturing
1,562
1,373
1,078
508
Total divisional operating
income
3,200
2,536
1,773
899
Unallocated corporate overhead
669
692
1,357
1,733
Strategic options and lawsuit
expenses
493
--
493
--
Foreign exchange gain
--
--
(84
)
--
Effect of pension curtailment
--
--
--
95
Other income, net
(52
)
(55
)
(145
)
(144
)
Income (loss) before interest and
income taxes
2,090
1,899
152
(785
)
Interest expense, net
279
331
573
537
Income (loss) before income
taxes
1,811
1,568
(421
)
(1,322
)
Income tax expense
250
135
110
19
Net income (loss)
$
1,561
$
1,433
$
(531
)
$
(1,341
)
Net income (loss) per share -
basic
$
0.21
$
0.19
$
(0.07
)
$
(0.18
)
Net income (loss) per share -
diluted
$
0.21
$
0.19
$
(0.07
)
$
(0.18
)
Weighted average common shares
outstanding - basic
7,416
7,416
7,416
7,416
Weighted average common shares
outstanding -diluted
7,439
7,416
7,416
7,416
ROCK OF AGES
CORPORATION
Consolidated Balance Sheets
(in thousands, except per share
amounts) (Unaudited)
Jul. 3,
Dec. 31,
Assets
2010
2009
Current assets:
Cash and cash equivalents
$ 2,200
$ 1,713
Trade receivables, net
8,539
7,241
Inventories
14,767
15,077
Other current assets
1,880
1,620
Assets held for sale
621
758
Total current assets
28,007
26,409
Property, plant and equipment,
net
30,658
30,559
Identified intangible assets,
net
407
582
Goodwill
387
387
Other long-term assets
530
515
Total assets
$ 59,989
$ 58,452
Liabilities and Stockholders'
Equity
Current liabilities:
Borrowings under line of
credit
--
$ 214
Current installments of long-term
debt
1,289
801
Current installments of retirement
benefits
702
691
Trade payables
1,642
1,285
Accrued expenses
1,998
1,264
Customer deposits
1,176
774
Deferred tax liabilities
--
236
Total current liabilities
6,807
5,265
Long-term debt, excluding current
installments
14,335
13,361
Salary continuation
5,243
5,386
Accrued pension cost
4,522
4,810
Deferred salary
1,504
1,504
Accrued post retirement
benefits
1,637
1,622
Total liabilities
34,048
31,948
Stockholders' equity:
Preferred stock $0.01 par value.
Authorized 2,500,000 shares; none issued
--
--
Common stock Class A, $0.01 par
value, Authorized 30,000,000 shares;
4,812,342 issued and outstanding
at July 3, 2010 and December 31, 2009
48
48
Common stock Class B, $0.01 par
value. Authorized 15,000,000 shares;
2,603,721 issued and outstanding
at July 3, 2010 and December 31, 2009
26
26
Additional paid-in capital
65,777
65,751
Accumulated deficit
(35,277)
(34,746)
Accumulated other comprehensive
loss
(4,633)
(4,575)
Total stockholders' equity
25,941
26,504
Total liabilities and
stockholders' equity
$ 59,989
$ 58,452
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