• Increased the annual dividend by 6.5% to $0.49 per common share representing a current yield of approximately 5.6%;
  • Reported record sales of $1.05 billion, a 9.6% increase year-over-year, reflecting growth in both same store and acquired sales;
  • Executed strategic acquisitions in the year, increasing footprint in Saskatchewan and further solidifying position in Alberta;
  • Commenced a Normal Course Issuer Bid (“NCIB”) in the fourth quarter to repurchase up to 1.6 million shares. As at Dec. 31, 2018, RME had repurchased and cancelled 0.4 million shares, representing approximately 2% of the total shares outstanding;
  • Maintained a solid balance sheet position — with net debt of $26.6 million and net debt to Adjusted EBITDA ratio of 0.77x.

CALGARY, Alta. — Rocky Mountain Dealerships Inc. (TSX: RME), Canada's largest agriculture equipment dealer, reported its financial results for the 3 and 12 months ended Dec. 31, 2018. With record sales of $1.05 billion, a 9.6% year-over-year increase, Rocky Mountain Dealerships (RME) ended 2018 on a strong note despite an uncertain start to the year.

RME 2018 Earnings

2018 4Q Results

Net sales for the fourth quarter finished at $295.4 million, which is up $21.7 million, or 7.9% compared to $273.7 million in same quarter in 2017. Gross profit also increased, up 4.8% at $40.2 million vs. $38.3 million the previous year.

The increase in sales is primarily attributed to RME’s $16 million of acquired sales in the fourth quarter.

2018 Full Year Results

RME hit a significant milestone in 2018 reporting record revenues of over $1.05 billion, up 9.6% year-over-year. Gross profit was up to $141.5 million vs. $139.4 million in 2017, a 1.5% increase. The increase in revenue for 2018 is in part due to $65.4 million rise in new equipment sales. RME’s execution of its 5 year plan, announced in May 2018, also played a role in increasing revenue in 2018.

Despite the growth in revenue, RME’s adjusted earnings and adjusted EBITDA targets have not been reached yet. Results for the year end saw a decrease with EBITDA falling 13.3%.

Commenting on the year’s results, Garrett Ganden, president and CEO said, “The execution of our strategic plan helped RME deliver a strong 2018. In addition to record revenue and used equipment sales, we added two stores in the heartland of Saskatchewan, as well as another location in Alberta. We were able to return more capital to our shareholders by increasing our dividend by 6.5%. Since 2012, RME's dividend has risen from $0.18 to $0.49 annually, an increase of more than 170%. In 2018, we implemented a Normal Course Issuer Bid that has, at present, resulted in our purchasing and cancelling 400,000 shares. We were also able to open our used equipment outlet in Kansas early in 2019 and have been encouraged with the initial activity within that store so far.

“Canadian agriculture continues to be a steady business, with a stable base of customers that continue the demand for our products and services. With our strong sales culture, excellent cost structure and solid balance sheet, RME is ready to seize the opportunities that 2019 will bring.