Florida Rock Industries, Inc today announced record first quarter net income of $44,279,000 or $.67 per diluted share for the first quarter of fiscal year 2007 versus $42,015,000 or $.63 per diluted share for the same quarter of fiscal year 2006. This year’s first quarter included after-tax gains of $2,550,000 ($.04 per diluted share) from the sale of real estate as compared to $2,562,000 ($.04 per diluted share) last year from the sale of real estate and the exchange of land parcels in the settlement of a lawsuit.
Consolidated total sales for the quarter decreased 3.6% to $295,349,000 from $306,252,000 in the same quarter last year. Average selling prices increased in all three segments. Gross profit increased approximately 2.3% to $91,423,000 compared to $89,325,000 in the same quarter last year. Gross profit and margin improved in the aggregates and cement and calcium segments, but declined in the concrete products segment.
First quarter operating profit increased 8.4% to $66,906,000 ($3,972,000 from real estate gains) versus $61,749,000 in the first quarter of fiscal 2006.
Selling, general and administrative expenses for the first quarter of fiscal year 2007 decreased to $28,489,000 (9.6% of sales) from $28,772,000 (9.4% of sales) last year, primarily due to reduced spending on new site permitting.
Depreciation, depletion and amortization increased to $19,017,000 in the first quarter of fiscal year 2007 compared to $16,806,000 for the same quarter of fiscal year 2006. Capital expenditures were $92,291,000 in the first quarter of fiscal year 2007 compared to $36,615,000 in the first quarter of fiscal year 2006.
Commenting on the first quarter of fiscal year 2007 results, President and CEO John Baker stated that: "Although our volumes were off in all three segments, the pricing improvements achieved earlier in the year seemed to hold through the quarter helping us to still achieve year over year earnings improvement. Our second quarter does not look to be as promising on a year over year basis as we had both incredible markets and favorable weather in the second quarter of fiscal 2006 when we achieved a then all-time quarterly earnings record. Nevertheless January aggregate price increases in most markets should offset to some degree the continuing trend of volume declines on the back of falling residential construction."
Outlook: For the coming quarter, residential demand continues to decline along with slight declines in non-residential demand. Improved highway spending in most markets is the one positive market demand force along with aggregates price improvements implemented January 1.