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FLORIDA ROCK INDUSTRIES ANNOUNCES THIRD QUARTER RESULTS

 JACKSONVILLE, Fla., Aug. 4 /PRNewswire/ -- Florida Rock Industries, Inc. (AMEX: FRK) announced today that the long awaited gradual recovery in our markets has begun. Third quarter sales increased over last year. Moreover, net income and earnings per share more than doubled as a result of management's cost reduction actions over the past years and the positive operating leverage inherent in the business from volume increases.
 For the third quarter, ended June 30, 1993, consolidated net sales increased 17 percent to $82,682,000 from $70,614,000 in the same quarter last year. Gross profit was $14,621,000 as compared to $10,122,000 last year. The increase in sales was due primarily to increases in demand for construction products in all principal markets served. Gross profit increased 44 percent and the gross profit margin increased to 17.7 percent from 14.3 percent. Selling, general and administrative expenses were down $193,000, or approximately 3 percent, as a result of the continuing efficiencies being realized from the consolidation of operations. However, total selling, general, and administrative expenses increased due to the impact of profit sharing and incentive compensation that are linked directly to profitability. Operating profit and operating profit margin both increased. Interest expense increased slightly as the effects of lower rates were more than offset by the $12,300,000 increase in average indebtedness due to the continuing major capital expenditure program and the purchase of a limestone operation in Frederick, Md. Net income was $4,527,000 up 133 percent from $1,943,000, and earnings per share correspondingly increased to $.49 from $.21.
 In the nine months ended June 30, 1993, net sales increased 7 percent to $213,310,000 from $199,640,000 for the same period last year. Gross profit increased 16 percent to $29,736,000 from $25,611,000. Interest expense decreased to $2,101,000 from $2,546,000 principally as a result of a decrease in the average interest rate. Net income was $4,904,000 , or $.53 per share, a 148 percent increase over net income of $1,978,000 or $.21 per share last year.
 With the end of what was a severe winter in the Virginia and Maryland markets, the modest sales recovery that began in the Florida markets during the second quarter also became evident in the Georgia, Maryland and Virginia markets. Although activity levels still vary widely by local market, it now appears that a gradual recovery is underway in most of the construction markets served excluding the commercial market. Any meaningful recovery in the commercial real estate market still awaits the absorption of the overbuilt conditions in that market. Homebuilding continues its very gradual recovery as a result of both pent-up demand and continuing low mortgage rates. Federal and state spending continues to increase for the much needed infrastructure programs in all markets. However, these activities remain constrained by the ability of various states to fund the programs.
 The company is continuing its major capital expenditure program to make its operations more efficient and to provide additional capacity where projected demand warrants. Some of the benefits of these programs became evident in the results for the third quarter in the expanding profit margins.
 The severe four-year cyclical downturn in the construction industry appears to have ended. The company continues to expect a slow recovery through the balance of this year which should gradually gain momentum in the future years. Management continues to explore opportunities that will permit the company to maximize its position in its markets which are still expected to experience long-term secular growth in addition to the cyclical recovery.
 Management continues to expect improved results for the balance of this year and on into next year. The combined effect of improving volumes on more efficient operations and a reduced cost structure should continue to provide percentage increases in earnings greater than in revenues.
 Florida Rock Industries, Inc. is a southeastern construction materials company concentrating in construction aggregates and concrete products.
 FLORIDA ROCK INDUSTRIES, INC.
 Summary of Consolidated Sales and Earnings
 (Dollars in thousands except per share amounts)
 FOR THE THIRD QUARTER ENDED JUNE 30, 1993 AND 1992
 1993 1992
 Net sales $82,682 $70,614
 Gross profit $14,621 $10,122
 Income before income taxes $ 6,219 $ 2,590
 Net income $ 4,527 $ 1,943
 Income per common share $.49 $.21
 Number of shares (A) 9,208,164 9,202,715
 FOR THE NINE MONTHS ENDED JUNE 30, 1993 AND 1992
 1993 1992
 Net sales $213,310 $199,640
 Gross profit $ 29,736 $ 25,611
 Income before income taxes $ 6,718 $ 2,637
 Net income $ 4,904 $ 1,978
 Earnings per common share $.53 $.21
 Number of shares (A) 9,195,752 9,203,355
 (A) -- Weighted average number of shares used in computing earnings per common share.
 -0- 8/4/93
 /CONTACT: Ruggles B. Carlson, vice president-finance and treasurer of Florida Rock Industries, 904-355-1781/
 (FRK)


CO: Florida Rock Industries, Inc. ST: Florida IN: CST SU: ERN

AW-SS -- FL009 -- 9395 08/04/93 12:54 EDT
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Publication:PR Newswire
Date:Aug 4, 1993
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