CALGARY, Alberta--(BUSINESS WIRE)--Rocky Mountain Dealerships Inc. (TSX:RME, and hereinafter "RME"), Canada's largest agriculture equipment dealer, today reported its financial results for the three and six months ended June 30, 2018. RME also announced its definitive agreement to acquire the New Holland dealership in Olds, Alberta. All financial figures are expressed in Canadian dollars.
"We set a new record for second quarter new equipment sales and achieved year-over-year sales growth across all of our categories. Our used equipment sales also outpaced trade-ins, which reduced our used equipment inventory on a sequential basis," said Garrett Ganden, President & Chief Executive Officer. "We continued to see margin pressure, which we explore more thoroughly below. That said, we have made good early progress on our growth plan by achieving $76 million in organic revenue growth since the beginning of 2018. Subsequent to the quarter, we also closed our acquisition of John Bob Farm Equipment, a Saskatchewan-based dealer of New Holland agriculture equipment with locations in Outlook and Tisdale, and agreed to acquire the business assets of the New Holland dealer based in Olds, Alberta.
“As we look towards the second half of 2018, we are beginning to see the impacts of tariffs and a weaker Canadian dollar being reflected in new equipment pricing. While likely to moderate new equipment sales growth to an extent, increased pricing may encourage our customers to consider used equipment as a more cost-effective alternative. With a diverse and current profile of used equipment inventory, we are confident in our ability to capitalize on this opportunity should it materialize.”
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SOURCE Rocky Mountain Dealerships Inc.