FRK Florida Rock Inds

Florida Rock Industries, Inc. (NYSE:FRK) 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. The Company will host a conference call at 10:00 a.m. E.S.T. on Thursday, February 1, 2007. Analysts, stockholders and other interested parties may access the teleconference live by calling 1-888-682-4386 (security code FLORIDA ROCK), or via the Internet through the Conference America, Inc. website at http://www.yourcall.com/real/players/frk020107.ram or via the Company's website at 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-mix 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 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. FLORIDA ROCK INDUSTRIES, INC. Summary of Consolidated Sales and Earnings (Amounts in thousands except per share amounts) (Unaudited) � FOR THE QUARTER ENDED DECEMBER 31 � 2006� 2005� Net Sales $ 287,059� 297,834� Freight Revenues 8,290� 8,418� Total Sales 295,349� 306,252� Gross Profit 91,423� 89,325� Operating Profit 66,906� 61,749� Interest Income/Expense (net) 1,193� 477� Other Income/Expense (net) 877� 3,939� Income before taxes 68,976� 66,165� Net Income $ 44,279� 42,015� Earnings per common share: Basic $ .68� .64� Diluted $ .67� .63� Weighted average shares outstanding: Basic 65,339� 65,557� Diluted 66,453� 66,828� FLORIDA ROCK INDUSTRIES, INC. Balance Sheet Data (Amounts in thousands) (Unaudited) � December 31, 2006 September 30, 2006 Cash and cash equivalents $ 69,164� 93,353� Accounts receivable, net 134,332� 150,088� Inventories 52,934� 53,015� Other current assets 8,371� 8,735� Property, plant and equipment, net 760,982� 690,012� Other non-current assets 245,232� 241,057� � Total Assets $ 1,271,015� 1,236,260� � Current liabilities $ 148,043� 151,266� Long-term debt (excluding current maturities) 16,364� 16,423� Deferred income taxes 93,102� 92,449� Other non-current liabilities 60,760� 60,226� Shareholders' equity 952,746� 915,896� Total Liabilities and Shareholders' Equity $ 1,271,015� 1,236,260� FLORIDA ROCK INDUSTRIES, INC. Business Segments Volumes and Price Comparisons (Unaudited) � 2007 First Quarter 2006 First Quarter Product Volumes: Ready-Mix Yards 1,546,488� 1,777,170� Block 14,892,928� 21,879,330� Aggregate Producing Tons 9,673,002� 10,249,142� Cement Tons 470,730� 582,362� � Average Prices: Ready-Mix Yards $ 100.64� 88.07� Block $ 1.40� 1.28� Aggregate Producing Tons $ 8.34� 7.02� Cement Tons $ 102.92� 91.11� 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 December 31 2006� 2005� Net Sales, excluding freight Aggregates $ 92,181� 84,487� Concrete products 183,658� 195,110� Cement and calcium 48,194� 54,066� Inter-segment sales (36,974) (35,829) � Total Net Sales, excluding freight $ 287,059� 297,834� Operating Profit Aggregates $ 24,678� 20,601� Concrete products 27,256� 31,320� Cement and calcium 19,566� 15,101� Corporate overhead (4,594) (5,273) � Total Operating profit $ 66,906� 61,749�