Florida Rock Industries, Inc. Announces
Record First Quarter Results & Stock Split
01/20/2004
How FRK has done for us: 60.1% annualized (up 20% in 4.7 months).
This week Florida Rock Industries split their stock 3:2. The
company also announced that their quarterly sales increased
37%. Details follow in the company's press release.
Jacksonville, Florida: January 21, 2004
- Florida Rock Industries, Inc. (NYSE-FRK) today announced
record net income of $32,128,000 or $.73 per diluted share
for the first quarter of fiscal year 2004 versus $12,729,000
or $.29 per diluted share for fiscal 2003. Real estate gains
from the sale of the balance of the Company’s Naples, Florida
closed quarry site contributed $8,273,000 of after tax gain
($.19 per diluted share) on gross sale proceeds of $20,250,000
during this 2004 first quarter.
Consolidated total sales for the quarter
increased 37.2% to $225,392,000 from $164,246,000 in the same
quarter last year. The cement operations acquired in August
2003 contributed sales of $25,384,000 during the quarter.
First quarter total operating profit was
$49,517,000 inclusive of $12,932,000 of real estate gains
from the sale of the Naples quarry site. Last years first
quarter operating profit had no real estate gains and was
$18,643,000. Excluding the real estate gains, the year-over-year
increase in operating profit for first quarter was 96%.
Sales volumes increased in all three business
segments over first quarter 2003 as more favorable weather
prevailed in all major markets. The cement segment showed
the most dramatic volume improvement as a result of the addition
of the tonnages gained from the cement acquisition of August
2003. Cement volumes were also unusually high at our Newberry
plant as certain of our trading partners transferred extra
volumes to us during the quarter to accommodate short-term
operating changes at their respective facilities.
The higher volumes in the aggregates and
concrete segments enabled lower operating costs per ton and
per yard respectively thereby enhancing margins in both segments.
Year-over-year comparisons for the quarter show a 28% increase
in aggregates volumes, a 16% increase in ready-mix yards sold
and a strong 34% increase in block sales units.
Selling, general and administrative expenses
for the first quarter increased to $22,218,000 versus $17,377,000
last year but declined as a percentage of sales from 10.6%
last year to 9.9% this year. The real dollar increase in S,G&A
expense was primarily the result of increased profit sharing
expense (which is linked to profitability before real estate
gains) and additional new site permitting costs. Net interest
expense was up to $339,000 from a positive $60,000 last year
as the closing of the Naples quarry site eliminated a 6% per
annum income stream on the remaining balance due for the property
and net debt was slightly increased as a result of the cement
acquisition in August 2003.
Included in other income is the Company’s
interest in operating results of 50% owned joint ventures.
The equity in these ventures was a gain of $655,000 for the
first 2004 quarter versus a slight gain of $13,000 in first
quarter 2003.
Commenting on the quarter results, President
and CEO John Baker stated that “our 2004 first quarter clearly
constituted a ‘sweet spot’ as very favorable weather, recovering
commercial construction, resilient residential construction
and strong road-building in Florida combined to give us record
results! Our Newberry cement plant came through its planned
shutdown admirably and combined with our newly acquired cement
facilities in Tampa and Port Manatee to produce an impressive
contribution to our first quarter operating profit. Once again
this record performance is a credit to the efforts and abilities
of all our Florida Rock employees to whom we express our continuing
appreciation.”
OUTLOOK: While we can't
anticipate the continuation of the very favorable weather
we experienced in the first quarter, we remain very optimistic
about our markets in the near term. Commercial construction
demand does seem to be still slightly better than a year ago
and residential construction continues to enjoy sustained
strength.
Investors are cautioned that any statements
in this press release which relate to the future are, by their
nature, subject to risks and uncertainties that could cause
actual results and events to differ materially from those
indicated in such forward-looking statements. These include
general business conditions, competitive factors, political,
economic, regulatory and weather conditions, pricing, government
spending levels on transportation projects, interest rate
changes, energy and transportation costs and technological
contingencies. Additional information regarding these and
other risk factors and uncertainties may be found in the Company's
filings with the Securities and Exchange Commission.
Contact:
Florida Rock Industries, Inc., Jacksonville
John D. Milton, Jr., 904/355-1781, Ext. 258
Source: Florida Rock Industries, Inc.
The complete press release can be found
at:
http://www.flarock.com/
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