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8-K - ROCK OF AGES 8K - ROCK OF AGES CORProac20108kq1results1.htm
 

EXHIBIT 99.1

     
         

 

Rock of Ages

FOR IMMEDIATE RELEASE

Company Contacts:

Laura Plude, CFO

(802) 476‑2208

www.rockofages.com

 

 

Kurt Swenson

Chairman

(603) 225-8397

 

Rock of Ages Reports 26% Increase in Revenue and

Smaller Net Loss For the First Quarter of 2010

 

BARRE, VERMONT, May 11, 2010 . . . Rock of Ages Corporation (NASDAQ:ROAC) announced today that the net loss for the first quarter of 2010 narrowed to $2,092,000, or $.28 per share, compared to a net loss of $2,774,000, or $.37 per share, for the first quarter of 2009.  Revenue increased 26% to $7,511,000 from $5,938,000 for the first quarter of last year.  "We have always reported a loss in the first quarter due to the seasonal nature of our business.  This year's sharply reduced first quarter loss was primarily the result of the substantially improved performance of our manufacturing operations, as well as continued reductions in overhead costs," said Chief Executive Officer Donald Labonte.

Manufacturing revenue for the first quarter of 2010 was up 38% to $3,889,000 compared to $2,814,000 for the first quarter of 2009, as sales of monuments and industrial products both increased.  The operating loss in the manufacturing segment decreased to $484,000 from $864,000 a year ago, reflecting the higher revenue and cost saving steps initiated last year. "Based on current trends, we are optimistic regarding the performance of our manufacturing operations for 2010 as a whole," Labonte said.

Quarry revenue for the three months ended April 3, 2010 increased 16% to $3,622,000 compared to $3,124,000 for the first quarter of 2009, primarily the result of higher shipments from the Company's export quarries.  The operating loss in the quarry segment increased to $944,000 compared to an operating loss of $772,000 last year as the Company employed significantly more manpower in its Barre, Bethel, Gardenia White and Salisbury quarries during the quarter compared to the prior year to prepare more areas for quarrying and build inventory levels.  "Demand for our export granite in particular remains strong, and we expect it to remain strong throughout the year," Labonte said. "The development program in our quarries we launched last year is on schedule, and we expect to produce and deliver increased quantities of saleable granite throughout the rest of the year."

Unallocated corporate overhead decreased 34% to $687,000 for the first quarter of 2010 versus $1,041,000 for the first quarter of 2009.  This decrease is a result of lower salary, pension, audit and franchise tax expenses.  "We are confident that our unallocated corporate overhead for 2010 will be approximately 10% below 2009," said Labonte.

Total debt at April 3, 2010 was $16 million.  This compares to total debt at April 4, 2009 of $19.3 million and $14.4 million at December 31, 2009.  "We continue to focus on reducing our debt and are in discussions with various lenders regarding options that may be available to us to reduce our interest costs," Labonte said.

 

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.

 

(tables attached)

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ROCK OF AGES CORPORATION

 

Consolidated Statements of Operations

(In thousands except per share amounts) (Unaudited)

Three Months Ended

April 3,

April 4,

2010

2009

Net revenues:

  Quarry

$   3,622 

$   3,124 

  Manufacturing

3,889 

2,814 

Total net revenues

7,511 

5,938 

Cost of goods sold:

  Quarry

3,973 

3,349 

  Manufacturing

3,444 

2,710 

Total cost of goods sold

7,417 

6,059 

Gross profit (loss):

  Quarry

(351)

(225)

  Manufacturing

445 

104 

Total gross profit (loss):

94 

(121)

Selling, general and administrative expenses:

  Quarry

593 

547 

  Manufacturing

929 

968 

Total SG&A expenses

1,522 

1,515 

Divisional operating loss:

  Quarry

(944)

(772)

  Manufacturing

(484)

(864)

Divisional operating loss

(1,428)

(1,636)

Unallocated corporate overhead

687 

1,041 

Effect of pension curtailment

--  

95 

Other income, net

(178)

(88)

Loss before interest and taxes

(1,937)

(2,684)

Interest expense

294 

206 

Loss before taxes

(2,231)

(2,890)

Income tax benefit

(139)

(116)

Net loss

$  (2,092)

$  (2,774)

Per share information:

Net loss per share - basic and diluted

$    (0.28)

$    (0.37)

Weighted average number of common

  shares outstanding - basic and diluted

7,416 

7,416 


ROCK OF AGES CORPORATION

Consolidated Balance Sheets

( in thousands, except per share amounts) (Unaudited)

Apr. 3,

Dec. 31,

Assets

2010

2009

Current assets:

Cash and cash equivalents

$    1,124 

$    1,713 

Trade receivables, net

7,062 

7,241 

Inventories

14,827 

15,077 

Other current assets

1,907 

1,620 

Assets held for sale

758 

758 

Total current assets

25,678 

26,409 

Property, plant and equipment, net

31,067 

30,559 

Identified intangible assets, net

548 

582 

Goodwill

387 

387 

Other long-term assets

553 

515 

Total assets

$  58,233 

$  58,452 

Liabilities and Stockholders' Equity

Current liabilities:

Borrowings under line of credit

$         --  

$       214 

Current installments of long-term debt

1,463 

801 

Current installments of retirement benefits

702 

691 

Trade payables

1,244 

1,285 

Accrued expenses

1,419 

1,264 

Customer deposits

897 

774 

Deferred tax liabilities

59 

236 

Total current liabilities

5,784 

5,265 

Long-term debt, excluding current installments

14,546 

13,361 

Salary continuation

5,277 

5,386 

Accrued pension cost 

4,723 

4,810 

Deferred salary

1,504 

1,504 

Accrued post retirement benefits

1,623 

1,622 

Total liabilities

33,457 

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 April 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 April 3, 2010 and December 31, 2009

26 

26 

Additional paid-in capital

65,764 

65,751 

Accumulated deficit

(36,838)

(34,746)

Accumulated other comprehensive loss

(4,224)

(4,575)

Total stockholders' equity

24,776 

26,504 

Total liabilities and stockholders' equity

$  58,233 

$  58,452