FRK Florida Rock Inds

Florida Rock Industries, Inc. (NYSE:FRK) today announced record net income of $58,317,000, or $.87 per diluted share, for its fiscal 2006 third quarter, a 27% increase over the same quarter last year. Consolidated total sales for the quarter rose 15% to $360,993,000 from $313,499,000 in the same quarter last year. Improved pricing in all segments contributed to a 19% increase in gross profit, which rose to $121,405,000 compared to $102,116,000 in the same quarter last year. Product volumes increased 6% in the aggregates segment versus the third quarter of 2005. Concrete yardage rose 1.4% in the quarter while block volumes remained virtually level. Cement volume declined 9.5% from last year's third quarter. Third quarter operating profit increased 17.4% to $90,296,000 from $76,890,000 in the year-ago quarter. Third quarter income included real estate gains of $1,621,000 ($1,029,000 after tax) and insurance proceeds of $1,075,000 ($683,000 after tax) versus real estate gains of $1,842,000 ($1,157,000 after tax) and insurance proceeds of $3,871,000 ($2,653,000 after tax) in third quarter 2005. Last year's third quarter also included a negative depletion adjustment to deferred taxes of $2,862,000. Selling, general and administrative expenses for the third quarter rose to $32,730,000 (9.1% of sales) versus $27,068,000 (8.6% of sales) for the third quarter of fiscal 2005 primarily due to increased profit sharing expense and the recording in 2006 of stock option expense. Commenting on the third quarter results, President and CEO John Baker stated: "Product demand in the third quarter continued at strong levels as non-residential demand grew and residential demand showed a slight decline. Price increases taking effect July 1 should help improve margins in aggregates and cement and help sustain margins in concrete." For the first nine months of fiscal 2006, net income increased 42% to $158,142,000 or $2.36 per diluted share versus $111,105,000 or $1.67 per diluted share in fiscal 2005. Consolidated total sales for the nine months increased 25% to $1,031,332,000 from $824,992,000 in fiscal 2005. Gross profit for the first nine months of fiscal year 2006 was $334,803,000, a 34% increase over the $249,176,000 gross profit achieved in the same period last year. Outlook: Product demand levels in our markets remain strong with commercial and infrastructure spending showing greater strength. Residential demand is clearly on the decline. July pricing improvements have again been effected in most markets albeit in the face of more resistance than we experienced six months and a year ago. The Company will host a conference call at 10:00 a.m. E.D.T. on Wednesday, July 26, 2006. Analysts, stockholders and other interested parties may access the teleconference live by calling 1-888-682-4386 (security code FLAROCK), or via the Internet through Conference America, Inc.'s website at http://www.yourcall.com/real/players/frk072606.smil or via the Company's website at http://www.flarock.com. If using the Company's website, click on Investor Relations - Florida Rock Industries, Inc. Conference Stream. There will be a 30-40 minute delay until the archive is available following the conclusion of the conference call. Florida Rock Industries, Inc. is one of the nation's leading producers of construction aggregates, a major provider of ready-mixed concrete and concrete products in the Southeastern and Mid-Atlantic States and a significant supplier of cement in Florida and Georgia. Investors are cautioned that any statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These include our ability to continue to mine our Miami quarry following the ruling in March invalidating our permit, general business conditions, competitive factors, political, economic, regulatory and weather conditions, pricing, government spending levels on transportation projects, interest rate changes, energy and transportation costs and technological contingencies. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission. -0- *T FLORIDA ROCK INDUSTRIES, INC. Summary of Consolidated Sales and Earnings (Amounts in thousands except per share amounts) (Unaudited) FOR THE THREE AND NINE MONTHS ENDED JUNE 30 THREE MONTHS NINE MONTHS 2006 2005 2006 2005 --------- -------- ---------- -------- Net Sales $349,333 305,514 1,001,667 805,854 Freight Revenues 11,660 7,985 29,665 19,138 --------- -------- ---------- -------- Total Sales 360,993 313,499 1,031,332 824,992 Gross Profit 121,405 102,116 334,803 249,176 SG&A 32,730 27,068 95,694 75,655 (Gain)loss on sale of real estate (1,621) (1,842) (3,312) (6,144) Operating Profit 90,296 76,890 242,421 179,665 Interest Income/Expense (net) 685 243 1,754 (519) Other Income/Expense (net) 890 646 4,895 1,679 Income before taxes 91,871 77,779 249,070 180,825 Net Income $58,317 45,878 158,142 111,105 Earnings per common share: Basic $.89 .70 2.41 1.70 Diluted $.87 .69 2.36 1.67 Weighted average shares outstanding: Basic 65,778 65,407 65,671 65,240 Diluted 67,058 66,821 66,921 66,676 *T -0- *T FLORIDA ROCK INDUSTRIES, INC. Balance Sheet Data (Amounts in thousands) (Unaudited) June 30, September 30, 2006 2005 ----------- ------------- Cash and cash equivalents 81,027 68,921 Accounts receivable, net 165,769 146,501 Inventories 48,133 43,682 Other current assets 12,575 7,721 Property, plant and equipment, net 655,700 578,500 Other non-current assets 241,082 207,666 ----------- ------------- Total Assets 1,204,286 1,052,991 =========== ============= Current liabilities 155,273 145,280 Long-term debt (excluding current maturities) 16,488 18,437 Deferred income taxes 86,762 87,789 Other non-current liabilities 57,527 53,552 Shareholders' equity 888,236 747,933 ----------- ------------- Total Liabilities and Shareholders' Equity 1,204,286 1,052,991 =========== ============= *T -0- *T FLORIDA ROCK INDUSTRIES, INC. Business Segments (Amounts in thousands) (Unaudited) The Company has identified its business segments as Aggregates, Concrete Products, Cement and Calcium Products. All of the Company's operations are located in the southeastern and mid-Atlantic states and each is managed separately along product lines. Operating results for the Company's business segments are as follows: Three Months Ended Nine Months Ended June 30 June 30 2006 2005 2006 2005 -------- -------- ---------- -------- Net Sales, excluding freight Aggregates $98,835 89,883 282,266 233,871 Concrete products 231,296 195,531 660,613 516,195 Cement and calcium 61,200 56,375 180,522 151,884 Inter-segment sales (41,998) (36,275) (121,734) (96,096) -------- -------- ---------- -------- Total Net Sales, excluding freight 349,333 305,514 1,001,667 805,854 ======== ======== ========== ======== Operating Profit Aggregates 31,704 31,474 81,756 70,944 Concrete products 42,953 34,847 119,606 81,052 Cement and calcium 23,787 18,598 64,145 45,395 Corporate overhead (8,148) (8,029) (23,086) (17,726) -------- -------- ---------- -------- Total Operating profit $90,296 76,890 242,421 179,665 ======== ======== ========== ======== *T