Rock of Ages reports return to profitability

Rock of Ages Corporation (NASDAQ:ROAC) today announced financial results for the fourth quarter and 2009, highlighted by a return to profitability for the quarter and year versus losses for the prior year periods, an increase in cash generated from operations to approximately $10,800,000 for 2009 compared to about $2,300,000 for 2008, and the reduction of total debt by an additional $7,500,000 in 2009 following the $8,000,000 debt reduction achieved in 2008.
We are optimistic that we can grow both our quarry and manufacturing segments in 2010, even as we maintain our tight control over operating costs and continue deleveraging our balance sheet
Net income for the fourth quarter of 2009 was $609,000, or $0.08 per diluted share, on revenue of $12,279,000. This compares to a net loss for the fourth quarter of 2008 of $2,677,000, or $0.36 per diluted share, on revenue of $16,560,000. Results for the fourth quarter of 2008 included a $3,930,000 charge for the write-off of second-grade granite block inventory and a $1,348,000 write-down of the Company's former headquarters building.
"Contrary to our expectations last November, the quarry yield issues that bedeviled us in the third quarter continued to be a problem in the fourth quarter. The decrease in fourth quarter revenue was a direct result of the poor recovery in our export quarries. Demand for our stone remains extremely high in our key export markets; we simply did not have enough of the desired inventory to satisfy it. We are taking steps to rectify this situation. During the fourth quarter we launched a development program in new areas in our Barre, Bethel and White Gardenia quarries in order to increase production and decrease unit costs beginning in 2010," said Chief Executive Officer Donald Labonte.
"Also encouraging was the improved performance of our manufacturing segment in the fourth quarter of 2009. Revenue was flat with the prior year level, following negative revenue comparisons in each of the first three quarters, and operating income increased 15%, reflecting improved fourth quarter sales from our authorized dealers and of mausoleums," Labonte said.
"We are optimistic that we can grow both our quarry and manufacturing segments in 2010, even as we maintain our tight control over operating costs and continue deleveraging our balance sheet," the CEO added.
Net income from continuing operations for 2009 was $802,000, or $0.11 per diluted share. This compares to a loss from continuing operations for 2008 of $2,054,000, or $0.28 per diluted share, which included the inventory charge and write-down of the Company's former headquarters building mentioned above. Revenue for 2009 decreased to $45,521,000 compared to $55,869,000 for 2008.
SG&A expenses decreased 7% for 2009 compared to 2008, and unallocated corporate overhead decreased 16%. Interest expense for 2009 decreased to $1,158,000 from $1,368,000 for 2008.
Balance Sheet Highlights
Total debt at December 31, 2009 was $14.4 million, 34% below total debt of $21.8 million reported at December 31, 2008.
Stockholders' equity at December 31, 2009 was $26,504,000, or $3.57 per diluted share. This compares to stockholders' equity at December 31, 2008 of $20,431,000, or $2.75 per diluted share.
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; 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, 2008. 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.
Source: BARRE, Vt.--(BUSINESS WIRE)--3.16.2010