Florida Rock Industries, Inc. Announces Second Quarter Results

Florida Rock Industries, Inc. (NYSE:FRK) today announced net income of $26,210,000 or $.39 per diluted share for the second quarter of fiscal year 2007 versus $57,810,000 or $.86 per diluted share for the same quarter of fiscal year 2006. Consolidated total sales for the quarter decreased 31.5% to $249,387,000 from $364,087,000 in the same quarter last year driven by volume decreases in all three segments and lower sales prices for cement and concrete block. Aggregate volumes decreased 27.7%, ready-mix yards decreased 34.0%, block volume fell 50.4% and cement tonnage decreased 34.7% over the second quarter of 2006. Gross profit decreased 44.3% to $69,114,000 compared to $124,073,000 in the same quarter last year. Aggregate prices at producing locations were up 18.2% over the second quarter last year and ready-mix concrete prices held on to a 5.7% year over year gain. Second quarter FY 2007 operating profit decreased 55.1% to $40,585,000 as compared to $90,376,000 in the second quarter of fiscal year 2006. Included in this quarter’s operating profit are real estate gains of $4,000 versus $495,000 for the same quarter last year. Selling, general and administrative expenses for the second quarter of fiscal year 2007 were $28,533,000 or 11.4% of sales as compared to $34,192,000 and 9.4% of sales for the second quarter of 2006. The Dollar decrease is primarily attributable to the decrease in profit sharing and management incentive compensation, which is tied to earnings exclusive of real estate gains. This year’s second quarter included $3 million of expenses (before taxes) related to the proposed merger of the Company with Vulcan Materials Company. Commenting on the second quarter of fiscal year 2007 results, President and CEO John Baker stated that: "While the decline in residential construction has been immediate and large, we are encouraged that new permits in Florida have now shown several months of positive trending. Transportation spending remains strong and non residential starts in our markets in the March quarter were up 18% over the same quarter last year. "Until residential construction recovers, however, volumes will continue to trail last year’s numbers. As you can see from the price and volume charts on our website, aggregate prices went up strongly in January. Cement prices are down as we ship further to pick up volume and because the high-priced bag goods are the most affected by the home building slowdown. Concrete prices appear flat but are being buoyed by jobs bid last year. For the six months ended March 31, 2007, consolidated total sales decreased 18.7% to $544,736,000 from $670,339,000 in the same period of fiscal year 2006. For the same period gross profit decreased 24.8% to $160,537,000 from $213,398,000. Net income for the six months decreased 29.4% to $70,489,000 versus $99,825,000 in fiscal year 2006. After-tax real estate gains in 2007 were $2,553,000 compared to after-tax real estate gains in the first six months of 2006 of $2,876,000 (including after-tax gains of $1,802,000 from an exchange included in other income). Outlook: Our demand levels are significantly below the record levels of a year ago, but permits for Florida residences show a positive trend and the Dodge reports for our markets show improved non-residential construction activity over year-ago levels. Highway and infrastructure spending remains strong; nevertheless, our volumes will remain below year-ago levels until the excess residential inventory is absorbed. We continue to be optimistic about our markets and the incredible long term future they hold. The Company will host a conference call at 10:00 a.m. E.D.T. on Tuesday, May 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/frk050107.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-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 at the Miami quarry following the recent court ruling invalidating our permit, risks and uncertainties related to approval and consummation of the proposed merger with Vulcan Materials Company, 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 THREE AND SIX MONTHS ENDED MARCH 31   THREE MONTHS SIX MONTHS 2007  2006  2007  2006  Net Sales $ 242,806  354,500  529,865  652,334  Freight Revenues 6,581  9,587  14,871  18,005  Total Sales 249,387  364,087  544,736  670,339  Gross Profit 69,114  124,073  160,537  213,398  Operating Profit 40,585  90,376  107,491  152,125  Interest Income/Expense (net) 763  592  1,956  1,069  Other Income/Expense (net) (529) 66  348  4,005  Income before taxes 40,819  91,034  109,795  157,199  Net Income $ 26,210  57,810  70,489  99,825  Earnings per common share: Basic $.40  $.88  1.08  1.52  Diluted $.39  $.86  1.06  1.49  Weighted average shares outstanding: Basic 65,557  65,680  65,447  65,618  Diluted 66,817  66,879  66,634  66,892  FLORIDA ROCK INDUSTRIES, INC. Balance Sheet Data (Amounts in thousands) (Unaudited)   March 31, 2007 September 30, 2006 Cash and cash equivalents $ 57,818  93,353  Accounts receivable, net 148,356  150,088  Inventories 54,648  53,015  Other current assets 11,808  8,735  Property, plant and equipment, net 801,752  690,012  Other non-current assets 244,555  241,057  Total Assets $1,318,937  1,236,260    Current liabilities $ 156,453  151,266  Long-term debt (excluding current maturities) 16,308  16,423  Deferred income taxes 95,221  92,449  Other non-current liabilities 60,853  60,226  Shareholders' equity 990,102  915,896  Total Liabilities and Shareholders' Equity $ 1,318,937  1,236,260  FLORIDA ROCK INDUSTRIES, INC. Business Segments Volumes and Price Comparisons. (Unaudited)   2007 Second Quarter 2006 Second Quarter 2007 YTD 2006 YTD Product Volumes: Ready-Mix Yards 1,292,728  1,958,782  2,839,216  3,735,952  Block 11,636,439  23,440,507  26,529,367  45,319,837  Aggregate Producing Tons 8,029,235  11,102,852  17,702,237  21,351,994  Cement Tons 415,496  636,089  886,226  1,218,450    Average Prices: Ready-Mix Yards $ 101.60  96.10  $ 101.08  92.28  Block $ 1.38  1.41  $ 1.39  1.34  Aggregate Producing Tons $ 9.10  7.70  $ 8.69  7.37  Cement Tons $ 97.79  100.81  $ 100.51  96.18  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 March 31 Six Months Ended March 31     2007  2006  2007  2006  Net Sales, excluding freight Aggregates $ 81,279  98,944  173,460  183,431  Concrete products 152,935  234,207  336,593  429,317  Cement and calcium 41,935  65,256  90,129  119,322  Inter-segment sales (33,343) (43,907) (70,317) (79,736) Total Net Sales, excluding freight $ 242,806  354,500  529,865  652,334  Operating Profit Aggregates $ 18,384  29,451  43,062  50,052  Concrete products 13,325  45,333  40,581  76,653  Cement and calcium 12,103  25,257  31,669  40,358  Corporate overhead (3,227) (9,665) (7,821) (14,938) Total Operating profit $ 40,585  90,376  107,491  152,125