BARRE, Vt. – After a series of less-than-happy financial announcements, Rock of Ages Corp. (NASDAQ:ROAC) had good news for investors today.
The quarrying and fabrication company, in announcing third-quarter (3Q) 2008 operating income, scored a 24-percent increase in revenues, with this year’s $16,593,000 outpacing the $13,357,000 recorded in 3Q 2007.
Rock of Ages’ manufacturing division noted a 36-percent revenue increase compared to last year third quarter, although this also marked a shift in sales; the orders from the company’s formerly owned retail outlets are now included in manufacturing revenue. Gross profit increased 28 percent to $2,523,000 compared to $1,966,000 last year.
Gross margin, however, decreased to 31 percent this year from 33 percent in 3Q 2007 because fewer high-margin mausoleums were sold this year.
Net income showed the sharpest rise – a 262 percent increase in net income from the previous year, earning $3,059,000. In 3Q 2007, net income came to $845,000.
"Gross profit in our quarries rose 26 percent to $3,411,000 compared to $2,706,000, and gross profit margin increased by four full percentage points to 40 percent for the third quarter of 2008," said CEO Donald Labonte, "as we began to reap the benefits we anticipated from our investments in new diamond-wire-saw technology and other production improvements we implemented earlier this year.
"Demand for our granites remains strong, and we are optimistic about the outlook for our quarries in the fourth quarter."
ROAC stock ended the day at $2.88, up 28 cents from the previous day's close.
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