Rocky Mountain Dealerships Inc. reported net annual earnings of $23.975 million last year, up 3.3 percent from $23.209 million in 2011.
The company operates 40 Case and New Holland dealerships in Western Canada. Revenue rose 20.3 percent to $966.1 million.
Normalized earnings before interest, taxes, depreciation and amortization rose by 4.7 percent to $46.5 million.
Matt Campbell, chief executive officer of Calgary-based Rocky, said in a news release the company undertook several initiatives to en-hance shareholder value.
“We were able to repurchase our convertible debentures, resulting in considerable interest savings, as well as eliminating the dilutive effect the debentures created,”he said.
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“We increased our dividend by 50 percent in 2012.”
Results were also enhanced by generally good conditions in agriculture and construction.
The company re-branded its dealership network, unifying it under the name Rocky Mountain Equipment.
Campbell said the improved environment in agriculture resulted in a shift to increased sales of new equipment and fewer used equipment sales. The profit margin on new sales is less than other aspects of the business, but the sales increase market share and customer base, which creates future opportunities.
“We will now work towards translating this larger equipment base into increased product support revenues going forward.”
