NEW ENTERPRISE, Pa.--()--New Enterprise Stone & Lime Co., Inc. confirmed results for the 2012 fiscal year ended February 29, 2012. The Company filed its 2012 fiscal year results on Form 10-K with the Securities and Exchange Commission on December 17, 2012.
Paul I. Detwiler, III, President of New Enterprise Stone & Lime Co., Inc., commented, "We continued to operate in a challenging market environment, which adversely impacted our results, during our seasonally weakest quarter. Although Congress passed a two-year Federal Transportation Bill in late June, which authorized over $100 billion in spending through the end of the Federal government's fiscal year 2014, this legislation lacks any increase in funding for Pennsylvania, and actually represents a decrease since it hasn’t been adjusted for inflation. While we anticipate negative market trends will persist at least through the next year, we are focusing our efforts to control costs in our operating plants where possible."
Net sales were slightly softer for fiscal year 2012 as compared to the prior year. Segment sales in construction materials were up slightly for the 2012 fiscal year compared to the prior year primarily due to higher sales of aggregates, hot mix asphalt, and precast/prestressed structural concrete. Segment sales in heavy/highway construction declined in the 2012 fiscal year compared to the prior year due to the overall decrease in highway and infrastructure spending at the federal, state and local level, which we anticipate to continue into fiscal year 2013. Segment sales in traffic safety services and equipment were higher for the 2012 fiscal year compared to the prior year as a result of higher highway safety equipment revenue, which was partially offset by a decrease in rental activity. Included in traffic safety service and equipment revenue is a refund of excess taxes remitted to the Commonwealth of Pennsylvania by the Company.
The Company revised operating profit results for the 2012 fiscal year. The Company reported operating profit lower by $4.0 million for the fiscal year 2012, compared to our previous expectations on September 28, 2012 when the Company announced its preliminary 2012 unaudited financial results. The revision of our operating profit was attributable to increased depreciation expense related to the timing of mine reclamation activities.
New Enterprise Stone & Lime Co., Inc. will host a conference call on Friday, January 4, 2013 at 10:00 a.m. ET to review the Company’s 2012 fiscal year financial results and discuss market drivers and outlook. As previously announced, the conference call will be webcast live on the Internet and can be accessed through the Investor Relations page of the Company’s website at www.nesl.com. A replay of the webcast will be available on the Company’s website.
About New Enterprise Stone & Lime Co., Inc.
New Enterprise Stone & Lime Co., Inc. is a leading privately held, vertically integrated construction materials supplier and heavy/highway construction contractor in Pennsylvania and western New York and a national traffic safety services and equipment provider. Our core businesses include: (i) construction materials (aggregate production (crushed stone and construction sand and gravel), hot mix asphalt production, ready mixed concrete production and concrete products (precast/prestressed structural concrete components and masonry block manufacturing)), (ii) heavy/highway construction (heavy construction, blacktop paving and other site preparation services) and (iii) traffic safety services and equipment. For more information, please visit the company’s website at www.nesl.com.
Certain statements contained in this release are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such forward looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and that actual results may vary materially from those in the forward looking statements as a result of various factors. Among the factors that significantly impact our business and could impact our business in the future are: the demand for non-residential and residential construction; the consequences of the continued U.S. and global financial crisis and the accompanying worldwide recession and the impact on the markets we serve; governmental funding in public sector construction; volatility in the credit markets and the impact on the markets we serve and our results of operations; our ability to accurately estimate risks, requirements or costs when bidding on or negotiating contracts; the consequences of seasonal changes and other weather related conditions on our business; our ability to compete within the industry; our ability to secure, obtain or maintain permits for aggregate reserves in strategically located areas; our ability to successfully integrate newly acquired businesses into our operations; our ability to generate sufficient cash to operate our business; changes in legal requirements and governmental policies concerning areas of law that impact our business; our ability to retain or recruit key management personnel; our ability to maintain good relations with our employees and avoid labor disputes; special hazards associated with our operations; unexpected factors affecting self-insurance claims and reserve estimates; our ability to maintain an effective system of internal controls; compliance with environmental, health and safety laws; cancellation of significant contracts or disqualification from bidding for new contracts; our ability to generate a sufficient amount of cash to service our existing indebtedness and fund our operations and the risks and uncertainties described in the Company’s audited consolidated financial statements included in the Company’s financial statements for the fiscal year ended February 29, 2012. These forward looking statements speak only as of the date of this release, and we do not undertake any obligation to publicly release any revisions to these forward looking statements to reflect events or circumstances after the date of this release.