Rocky Mountain Dealerships Inc., a leading Canadian network of full service agricultural and construction equipment dealerships, today reported financial results for the three and nine month periods ended September 30, 2008. Rocky Mountain was formed on September 17, 2007 but did not carry on any business until it completed the acquisition of Hammer Equipment Sales Limited and the Hi-Way Service group on December 20, 2007.
Third Quarter Results
For the third quarter of 2008, revenue increased 26.1% to $93.2M from revenue of $73.9M for the third quarter of the prior year. All three of the Company's main revenue sources - Equipment Sales and Leasing, Parts and Service - contributed to this period over period revenue growth. Net income for the third quarter was $2.5M, or $0.19 per diluted share.
Nine Month Results
For the nine months ended September 30, 2008, revenues increased $42.8M, or 19.9% to $257.2M from revenue of $214.4M in the same period last year. Net income was $5.8M or $.45 per diluted share.
Commenting on the Company's results for the third quarter and year to date results, Matt Campbell, CEO of Rocky Mountain said, "We are extremely pleased with the organic growth achieved in all three of our primary revenue sources. Our integration initiatives throughout the Company are progressing well and we continued to pursue the aggressive expansion of our agricultural equipment business through selective strategic acquisitions to augment our strong organic growth. During the third quarter, we completed the acquisition of Miller Farm Equipment (2005) Inc., expanding our business into Manitoba and Saskatchewan through this six dealer network which had annual revenues exceeding $100M. In addition we closed the acquisition of Lakeland Implements Ltd. an agricultural dealership in Vermilion, Alberta, and are continuing to deliver on our stated objectives."
Dividend
The Company announces that the Board of Directors of Rocky Mountain declared a dividend of $0.045 per common share on the Company's outstanding common shares. The common share dividend is payable on December 31, 2008 to shareholders of record at close of business on November 28, 2008.
This dividend is designated by Rocky Mountain to be an eligible dividend for purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. -- www.cnxmarketlink.com
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