Quarrying, Sales Up at Rock of Ages

CONCORD, N.H. – Operations looked good in 2004 at Rock of Ages Corp.
Revenue in the company’s quarrying division increased to $29,927,000 last year, compared to $28,381,000 for 2003, and operating income rose 9.3 percent to a record $8,771,000, according to Kurt Swenson, Rock of Ages chairman/CEO. Manufacturing division revenue also increased, to $20,865,000 in 2004 from $20,373,000 the previous year.
Manufacturing operating income declined, however, as the company increased staffing to support anticipated growth in the division; also, more than $600,000 of fully completed private mausoleums expected to ship in the fourth quarter ran into third-party delays in the installation of necessary foundations.
“Demand for our granites and memorials remains strong, so we are optimistic about the outlook for our quarrying and manufacturing operations in 2005,” Swenson says.
The company is also moving forward in expanding its retail distribution network, with agreements with 102 funeral homes and cemeteries since a new retail program was rolled out last October. The move should generate $2 million in additional revenue annually.
Rock of Ages’ net loss for 2004, however, totaled $3,221,000, after net income in 2003 of $1,447,000. Results for 2004 included a $260,000 severance charge and approximately $500,000 in additional expenses for a change from commission to salary-based compensation in the Retail division, a charge of $400,000 for impairment of a note receivable., as well as pre-tax litgation settlement costs of $6,500,000.