NEW ENTERPRISE, Pa.--(BUSINESS WIRE)--
New Enterprise Stone & Lime Co., Inc. today announced results for the
third quarter ended November 30, 2010.
"While the Company continues to operate in a challenging macroeconomic
environment, our core markets are stabilizing and we saw some
encouraging operating trends during the quarter that make us cautiously
optimistic going forward," said Paul I. Detwiler, III Executive Vice
President of New Enterprise Stone & Lime Co., Inc. “Our capital position
continues to be an area of strength and we intend to remain nimble with
respect to our cost structure and investments.”
Net sales were slightly higher in the third quarter as compared to the
prior year’s third quarter. Segment sales in construction materials was
up slightly in the third quarter from the prior year’s third quarter
primarily due to an increase in aggregates and ready mixed concrete
sales, driven in part by favorable weather conditions during the
quarter. This increase was partially offset by a decline in
precast/prestressed concrete sales as a result of lower sales prices per
unit. Segment sales in heavy/highway construction were slightly lower in
the third quarter compared with the prior year period due to the timing
of the completion of various jobs and change orders. Segment sales in
traffic safety services and equipment declined moderately in the third
quarter compared with the comparable prior year period as public sector
spending continues to be impacted by the uncertainty surrounding the
timing and amount of federal highway programs.
New Enterprise Stone & Lime Co., Inc. will host a live webcast to
discuss recent company developments and review third quarter financial
results on Wednesday, January 19, 2011 at 10 a.m. ET. The Company
invites all holders of New Enterprise Stone & Lime Co., Inc. notes or
prospective investors that are certified qualified institutional buyers,
securities analysts and market makers to contact the following person(s)
to obtain the webcast/teleconference and all access information.
About New Enterprise Stone & Lime Co., Inc.
We are 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. Founded in 1924, we are one of the top 15
construction aggregates producers and top 30 heavy contractors in the
United States, according to industry surveys. Our construction materials
operations are comprised of: aggregate production, including crushed
stone and construction sand and gravel, hot mix asphalt production,
ready mixed concrete production; and the production of concrete products
including precast/prestressed structural concrete components and masonry
blocks. Our other core businesses are (i) heavy/highway construction,
which includes heavy construction, blacktop paving and other site
preparation services, and (ii) traffic safety services and equipment.
Forward-Looking Statements
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,
2010. 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.
Available Information
The Company’s press releases, earnings releases and other financial
information will be available on nesl.com to any holders of the notes,
any beneficial owner of the notes who certifies that it is a beneficial
owner of the notes, any prospective investor who certified that it is an
qualified institutional buyer (as defined in the Securities Act) or any
securities analyst who certifies that it is a securities analyst and who
requests a password from the Company and agrees to treat such
information as confidential.
New Enterprise Stone & Lime Co., Inc.
Investor Contacts:
At
the Company:
Paul I Detwiler III, 814-766-2211
or
At FD:
Amy
Pesante, 212-850-5758
Source: New Enterprise Stone & Lime Co., Inc.
