FRK Florida Rock Inds

Florida Rock Industries, Inc. (NYSE:FRK) today announced net income of $26,210,000 or $.39 per diluted share for the second quarter of fiscal year 2007 versus $57,810,000 or $.86 per diluted share for the same quarter of fiscal year 2006. Consolidated total sales for the quarter decreased 31.5% to $249,387,000 from $364,087,000 in the same quarter last year driven by volume decreases in all three segments and lower sales prices for cement and concrete block. Aggregate volumes decreased 27.7%, ready-mix yards decreased 34.0%, block volume fell 50.4% and cement tonnage decreased 34.7% over the second quarter of 2006. Gross profit decreased 44.3% to $69,114,000 compared to $124,073,000 in the same quarter last year. Aggregate prices at producing locations were up 18.2% over the second quarter last year and ready-mix concrete prices held on to a 5.7% year over year gain. Second quarter FY 2007 operating profit decreased 55.1% to $40,585,000 as compared to $90,376,000 in the second quarter of fiscal year 2006. Included in this quarter�s operating profit are real estate gains of $4,000 versus $495,000 for the same quarter last year. Selling, general and administrative expenses for the second quarter of fiscal year 2007 were $28,533,000 or 11.4% of sales as compared to $34,192,000 and 9.4% of sales for the second quarter of 2006. The dollar decrease is primarily attributable to the decrease in profit sharing and management incentive compensation, which is tied to earnings exclusive of real estate gains. This year�s second quarter included $3 million of expenses (before taxes) related to the proposed merger of the Company with Vulcan Materials Company. Commenting on the second quarter of fiscal year 2007 results, President and CEO John Baker stated that: "While the decline in residential construction has been immediate and large, we are encouraged that new permits in Florida have now shown several months of positive trending. Transportation spending remains strong and non residential starts in our markets in the March quarter were up 18% over the same quarter last year. "Until residential construction recovers, however, volumes will continue to trail last year�s numbers. As you can see from the price and volume charts on our website, aggregate prices went up strongly in January. Cement prices are down as we ship further to pick up volume and because the high-priced bag goods are the most affected by the home building slowdown. Concrete prices appear flat but are being buoyed by jobs bid last year. For the six months ended March 31, 2007, consolidated total sales decreased 18.7% to $544,736,000 from $670,339,000 in the same period of fiscal year 2006. For the same period gross profit decreased 24.8% to $160,537,000 from $213,398,000. Net income for the six months decreased 29.4% to $70,489,000 versus $99,825,000 in fiscal year 2006. After-tax real estate gains in 2007 were $2,553,000 compared to after-tax real estate gains in the first six months of 2006 of $2,876,000 (including after-tax gains of $1,802,000 from an exchange included in other income). Outlook: Our demand levels are significantly below the record levels of a year ago, but permits for Florida residences show a positive trend and the Dodge reports for our markets show improved non-residential construction activity over year-ago levels. Highway and infrastructure spending remains strong; nevertheless, our volumes will remain below year-ago levels until the excess residential inventory is absorbed. We continue to be optimistic about our markets and the incredible long term future they hold. The Company will host a conference call at 10:00 a.m. E.D.T. on Tuesday, May 1, 2007. Analysts, stockholders and other interested parties may access the teleconference live by calling 1-888-682-4386 (security code FLORIDA ROCK), or via the Internet through the Conference America, Inc. website at http://www.yourcall.com/real/players/frk050107.ram or via the Company's website at www.flarock.com. If using the Company's website, click on Investor Relations - Florida Rock Industries, Inc. Conference Stream. There will be a 30-40 minute delay until the archive is available following the conclusion of the conference call. Florida Rock Industries, Inc. is one of the nation�s leading producers of construction aggregates, a major provider of ready-mixed concrete and concrete products in the Southeastern and Mid-Atlantic States and a significant supplier of cement in Florida and Georgia. 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 our ability to continue to mine at the Miami quarry following the recent court ruling invalidating our permit, risks and uncertainties related to approval and consummation of the proposed merger with Vulcan Materials Company, 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 FLORIDA ROCK INDUSTRIES, INC. Summary of Consolidated Sales and Earnings (Amounts in thousands except per share amounts) (Unaudited) � FOR THE THREE AND SIX MONTHS ENDED MARCH 31 � THREE MONTHS SIX MONTHS 2007� 2006� 2007� 2006� Net Sales $ 242,806� 354,500� 529,865� 652,334� Freight Revenues 6,581� 9,587� 14,871� 18,005� Total Sales 249,387� 364,087� 544,736� 670,339� Gross Profit 69,114� 124,073� 160,537� 213,398� Operating Profit 40,585� 90,376� 107,491� 152,125� Interest Income/Expense (net) 763� 592� 1,956� 1,069� Other Income/Expense (net) (529) 66� 348� 4,005� Income before taxes 40,819� 91,034� 109,795� 157,199� Net Income $ 26,210� 57,810� 70,489� 99,825� Earnings per common share: Basic $.40� $.88� 1.08� 1.52� Diluted $.39� $.86� 1.06� 1.49� Weighted average shares outstanding: Basic 65,557� 65,680� 65,447� 65,618� Diluted 66,817� 66,879� 66,634� 66,892� FLORIDA ROCK INDUSTRIES, INC. Balance Sheet Data (Amounts in thousands) (Unaudited) � March 31, 2007 September 30, 2006 Cash and cash equivalents $ 57,818� 93,353� Accounts receivable, net 148,356� 150,088� Inventories 54,648� 53,015� Other current assets 11,808� 8,735� Property, plant and equipment, net 801,752� 690,012� Other non-current assets 244,555� 241,057� Total Assets $1,318,937� 1,236,260� � Current liabilities $ 156,453� 151,266� Long-term debt (excluding current maturities) 16,308� 16,423� Deferred income taxes 95,221� 92,449� Other non-current liabilities 60,853� 60,226� Shareholders' equity 990,102� 915,896� Total Liabilities and Shareholders' Equity $ 1,318,937� 1,236,260� FLORIDA ROCK INDUSTRIES, INC. Business Segments Volumes and Price Comparisons. (Unaudited) � 2007 Second Quarter 2006 Second Quarter 2007 YTD 2006 YTD Product Volumes: Ready-Mix Yards 1,292,728� 1,958,782� 2,839,216� 3,735,952� Block 11,636,439� 23,440,507� 26,529,367� 45,319,837� Aggregate Producing Tons 8,029,235� 11,102,852� 17,702,237� 21,351,994� Cement Tons 415,496� 636,089� 886,226� 1,218,450� � Average Prices: Ready-Mix Yards $ 101.60� 96.10� $ 101.08� 92.28� Block $ 1.38� 1.41� $ 1.39� 1.34� Aggregate Producing Tons $ 9.10� 7.70� $ 8.69� 7.37� Cement Tons $ 97.79� 100.81� $ 100.51� 96.18� FLORIDA ROCK INDUSTRIES, INC. Business Segments (Amounts in thousands) (Unaudited) � The Company has identified its business segments as Aggregates, Concrete Products, Cement and Calcium Products. All of the Company's operations are located in the southeastern and mid-Atlantic states and each is managed separately along product lines. Operating results for the Company's business segments are as follows: � Three Months Ended March 31 Six Months Ended March 31 � � 2007� 2006� 2007� 2006� Net Sales, excluding freight Aggregates $ 81,279� 98,944� 173,460� 183,431� Concrete products 152,935� 234,207� 336,593� 429,317� Cement and calcium 41,935� 65,256� 90,129� 119,322� Inter-segment sales (33,343) (43,907) (70,317) (79,736) Total Net Sales, excluding freight $ 242,806� 354,500� 529,865� 652,334� Operating Profit Aggregates $ 18,384� 29,451� 43,062� 50,052� Concrete products 13,325� 45,333� 40,581� 76,653� Cement and calcium 12,103� 25,257� 31,669� 40,358� Corporate overhead (3,227) (9,665) (7,821) (14,938) Total Operating profit $ 40,585� 90,376� 107,491� 152,125�