Florida Rock Industries, Inc. Announces Third Quarter Results

Florida Rock Industries, Inc. (NYSE:FRK) today announced net income of $36,054,000 or $.54 per diluted share for the third quarter of fiscal year 2007 versus $58,317,000 or $.87 per diluted share for the same quarter of fiscal year 2006. Merger expenses of $4,422,000 ($2,852,000 after tax) are included in this third quarter net income. Consolidated total sales for the quarter decreased 23.6% to $275,631,000 from $360,993,000 in the same quarter last year driven by volume decreases in all three segments and lower sales prices for cement and concrete block. Aggregates volume decreased 20.9%, ready-mix yards decreased 25.8%, block volume fell 52.9% and cement tonnage decreased 27.5% over the third quarter of 2006. Gross profit decreased 30.4% to $84,475,000 compared to $121,405,000 in the same quarter last year. Aggregate prices at producing locations were up 16.8% over the third quarter last year and ready-mix concrete prices held on to a 3.6% year over year gain. Third quarter FY 2007 operating profit decreased 40.0% to $54,181,000 as compared to $90,296,000 in the third quarter of 2006. There are no real estate gains included in this quarter’s operating profit versus $1,621,000 for the same quarter last year. Selling, general and administrative expenses for the third quarter of fiscal year 2007 were $30,294,000 or 11.0% of sales as compared to $32,730,000 and 9.1% of sales for the third 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 third quarter included $4.4 million of expenses (before taxes) related to the proposed merger of the Company with Vulcan Materials Company. Commenting on the third quarter of fiscal year 2007 results, President and CEO John Baker stated that: "While the significant decline in residential construction remains with us and is yet to level out, non-residential and transportation spending remain strong. We continue to focus on our costs even as we pursue the remaining steps to consummate our pending merger with Vulcan.” For the nine months ended June 30, 2007, consolidated total sales decreased 20.5% to $820,367,000 from $1,031,332,000 in the same period of fiscal year 2006. For the same period gross profit decreased 26.8% to $245,012,000 from $334,803,000. Net income for the nine months decreased 32.6% to $106,543,000 versus $158,142,000 in fiscal year 2006. After-tax real estate gains in 2007 were $2,565,000 compared to after-tax real estate gains in the first nine months of 2006 of $2,103,000 (including after-tax gains of $1,802,000 from an exchange included in other income). Merger expenses for the nine months were $7,422,000 ($4,787,000 after tax). Outlook: The outlook for non-residential construction, highway and infrastructure spending remains positive but residential construction continues to show weakness with no clear signs of leveling. The Company will also host a conference call at 11:00 a.m. E.D.T. on Tuesday, July 31, 2007. Analysts, stockholders and other interested parties may access the teleconference live by calling 1-888-682-4386 (security code FLAROCK) within the United States. International callers may dial 334-323-7224 (security code FLAROCK). Computer audio is available via the Internet through the Conference America, Inc. website at http://www.yourcall.com/real/players/frk073107.ram or via the Company’s website at http://www.flarock.com. If using the Company’s website, click on the Investor Relations tab, then select Florida Rock Industries, Inc. Conference Stream, next select the appropriate link for the current conference. An audio replay will be available for sixty days following the conference call. To listen to the audio replay, dial toll free 877-919-4059, international callers dial 334-323-7226. The passcode for the audio replay is 52723035. Replay options: "1” begins playback, "4” rewind 30 seconds, "5” pause, "6” fast forward 30 seconds, "0” instructions, and "9” exits recording. There may 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 NINE MONTHS ENDED JUNE 30   THREE MONTHS NINE MONTHS   2007 2006 2007 2006 Net Sales $ 267,340 349,333 797,205 1,001,667 Freight Revenues 8,291 11,660 23,162 29,665 Total Sales 275,631 360,993 820,367 1,031,332 Gross Profit 84,475 121,405 245,012 334,803 Operating Profit 54,181 90,296 161,672 242,421 Interest Income/Expense (net) 257 685 2,213 1,754 Other Income/Expense (net) 992 890 1,340 4,895 Income before taxes 55,430 91,871 165,225 249,070 Net Income $ 36,054 58,317 106,543 158,142 Earnings per common share: Basic $ .54 $ .89 1.62 2.41 Diluted $ .54 $ .87 1.59 2.36 Weighted average shares outstanding: Basic 66,366 65,778 65,753 65,671 Diluted 67,241 67,058 66,836 66,921 FLORIDA ROCK INDUSTRIES, INC. Balance Sheet Data (Amounts in thousands) (Unaudited)     June 30, 2007 September 30, 2006 Cash and cash equivalents $ 41,570 93,353 Accounts receivable, net 155,368 150,088 Inventories 55,722 53,015 Other current assets 10,983 8,735 Property, plant and equipment, net 830,182 690,012 Other non-current assets   245,366 241,057 Total Assets $ 1,339,191 1,236,260   Current liabilities $ 132,967 151,266 Long-term debt (excluding current maturities) 16,250 16,423 Deferred income taxes 96,965 92,449 Other non-current liabilities 61,519 60,226 Shareholders' equity   1,031,490 915,896 Total Liabilities and Shareholders' Equity $ 1,339,191 1,236,260 FLORIDA ROCK INDUSTRIES, INC. Business Segments Volumes and Price Comparisons. (Unaudited)   2007 Third Quarter 2006 Third Quarter 2007 YTD 2006 YTD Product Volumes: Ready-Mix Yards 1,470,042 1,980,434 4,309,258 5,716,386 Block 10,225,207 21,729,429 36,754,574 67,049,266 Aggregate Producing Tons 9,577,976 12,105,365 27,280,213 33,457,359 Cement Tons 429,552 592,643 1,315,778 1,811,094   Average Prices: Ready-Mix Yards $ 99.00 95.59 $ 100.37 93.43 Block $ 1.33 1.39 $ 1.37 1.36 Aggregate Producing Tons $ 8.90 7.62 $ 8.76 7.46 Cement Tons $ 97.14 101.38 $ 99.41 97.88 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 June 30 Nine Months Ended June 30 2007 2006 2007 2006   Net Sales, excluding freight Aggregates $ 96,320 98,835 269,780 282,266 Concrete products 164,547 231,296 501,140 660,613 Cement and calcium 41,328 61,200 131,457 180,522 Inter-segment sales   (34,855 ) (41,998 ) (105,172 ) (121,734 ) Total Net Sales, excluding freight $ 267,340   349,333   797,205   1,001,667   Operating Profit Aggregates $ 29,247 31,704 72,309 81,756 Concrete products 19,649 42,953 60,230 119,606 Cement and calcium 13,347 23,787 45,016 64,145 Corporate overhead   (8,062 ) (8,148 ) (15,883 ) (23,086 ) Total Operating profit $ 54,181   90,296   161,672   242,421