ROAC Rock of Ages (VT) (MM)

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.

 

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