Florida Rock Industries, has announced record net income of $45,878,000 or $.69 per diluted share for the third quarter of fiscal year 2005 versus $33,050,000 or $.50 per diluted share (split adjusted as a result of the 3-for-2 split on July 1, 2005) for the same quarter of fiscal year 2004.
Consolidated total sales for the quarter increased 25% to $313,499,000 from $251,649,000 in the same quarter last year. Product volumes increased in all segments versus the third quarter of 2004 with aggregate volumes up 3.6 per cent, concrete yardage and block up 9.6 per cent and 9.7 per cent respectively and cement volume up 16.8 per cent. Improved pricing occurred in all segments as well generating an increase in gross profit of approximately 37 per cent to $102,116,000 compared to $74,812,000 in the same quarter last year.
The third quarter operating profit of fiscal year 2005 increased 50 per cent to $76,890,000 versus $51,153,000 in the third quarter of fiscal year 2004.
Included in this quarter’s income were real estate gains of $1,842,000 ($1,157,000 after tax) and insurance proceeds of $3,871,000 ($2,653,000 after tax). These non-recurring items were partially offset at the net income line by a depletion adjustment to deferred taxes of $2,862,000.
Commenting on the third quarter results, President and CEO John Baker stated that: Although the hurricane season began earlier than normal in the southeast, we were fortunate that none of our operations were affected by the first storms of the season. Despite plenty of rain in June, we enjoyed strong sales in all of our product segments. The demand for cement remains at an all time high and most of our facilities are operating near capacity. Rail transportation performance improved during the quarter but still is not back to the levels we enjoyed two years ago.
For the nine months ended June 30, 2005, consolidated total sales increased 17% to $824,992,000 from $705,643,000 in fiscal 2004. Gross profit for the first nine months of fiscal year 2005 was $249,176,000 versus $194,115,000 through the third quarter of fiscal year 2004, an increase of 28%. Net income for the nine months increased 24% to $111,105,000 or $1.67 per diluted share versus $89,675,000 or $1.36 per diluted share in fiscal 2004. During the third quarter of fiscal year 2005, the Company reduced its long-term debt by $22,955,000 from $43,612,000 at the end of the second quarter to $20,657,000 at the end of the third quarter.
Product demand levels in our markets continue to be strong and appear to be sustainable for the coming fourth quarter. July pricing improvements have again been effected in our Florida cement, stone and concrete operations and have the potential to improve our future performance subject to the risks of an already active hurricane season.