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6 MONTHS: ROCKY MOUNTAIN DELERSHIPS SALES DOWN 1%, NET EARNINGS DOWN 11%
Source: Rocky Mountain Dealerships news release

To view the complete report, click here.

Rocky Mountain Dealerships Inc. (hereinafter "Rocky") today reported its financial results for the quarter ended June 30, 2014.

In the second quarter of 2014, sales of whole goods were relatively flat, but product support growth enabled the business to realize a modest overall revenue increase. Gross margin and net profitability were also positively influenced by a variety of management actions.

Commenting on the quarter, Rocky's CEO Matt Campbell stated, "As agriculture industry demand cycles to lower levels of whole good unit sales, a strong product support business helps to maintain stable cash flows. Sales in these departments increased for the second consecutive quarter compared to the same period last year.

This drove an improvement in both our gross profit and EBITDA. Inventory also decreased slightly over the same period in 2013, as we work to ensure our customers have an appropriate range of products available at competitive prices."

Rocky's construction segment continued to make progress in the second quarter, as sales of new whole goods improved by 38.9% to $12.8 million. Gross margin and gross profit were up for the entire segment, which continued to improve over 2013.

Mr. Campbell further noted, "Management has undertaken significant efforts to restore our construction business. We are beginning to see the fruits of those labours, as are our customers. The initiatives we began earlier in the year have resulted in improvements in sales and net profitability.

Although the construction segment still has significant work to do, we are encouraged by the results to date and the dedication of our people to the task.

Our overall business results rebounded from the first quarter of the year and improved over the same period last year. Crop forecasts for most regions are generally positive, with the noted exception of the areas in Saskatchewan and Manitoba hit by flooding in July.

The agriculture industry remains a market that provides stability over the long-term. Similarly, the construction market in Alberta continues to lead the nation in growth. Overall, we are pleased in the progress of our operational efforts and their positive reflection in our financial results."

CEO and President to Retire December 31, 2014
Rocky also announced today that Mr. Matt Campbell has declared his intention to retire as CEO of Rocky effective December 31, 2014.

Mr. Derek Stimson also announced his intention to retire as President of Rocky as at that date. Both individuals will remain as directors of Rocky, with Mr. Campbell remaining as Rocky's Chairman of the Board of Directors.


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