Florida Rock Industries, Inc. Announces Record Second Quarter Results

    Business Editors

    JACKSONVILLE, Fla.--(BUSINESS WIRE)--April 25, 2005--Florida Rock Industries, Inc. (NYSE:FRK) today announced record net income of $35,140,000 or $.79 per diluted share for the second quarter of fiscal year 2005 versus $24,497,000 or $.56 per diluted share for the same quarter of fiscal year 2004. This year's second quarter included $2,694,000 of after tax gain ($.06 per share) from the sale of the largest portion of an abandoned quarry property near Baltimore, Maryland for net proceeds of $23,459,000.
    Consolidated total sales for the quarter increased 14% to $260,565,000 from $228,602,000 in the same quarter last year driven principally by improved pricing. While product volumes were decreased in aggregates (5.2%) and ready-mix concrete (1.4%), they increased in cement (1.8%) and concrete block (12.8%). Gross profit increased approximately 28.1% to $77,521,000 compared to $60,500,000 in the same quarter last year.
    Second quarter FY 2005 operating profit increased 44.8% to $55,828,000 ($4,256,000 was the aforementioned real estate gain) versus $38,561,000 in the second quarter of fiscal 2004.
    Selling, general and administrative expenses for the second quarter of fiscal year 2005 of $25,949,000 were 10.0% of sales, up from last year's $21,944,000 (9.6% of sales) principally due to increases in incentive compensation and profit sharing which are tied to earnings growth exclusive of real estate gains.
    The proceeds from the sale of the closed Greenspring quarry were reinvested in additional land with potential aggregate reserves near Naples, Florida, using an intermediary to effect a tax-deferred exchange.
    Commenting on the second quarter of fiscal year 2005 results, President and CEO John Baker stated that:
    "Our second quarter results benefited from continuing strong demand in our Florida and Washington, D.C. area markets. Despite some unscheduled maintenance challenges at our Newberry facility, our cement team still managed to increase shipments slightly through adept coordination of shipments through our import facilities in Tampa and Port Manatee. With substantial operating profit improvement in all three segments, our employees deserve real credit for their demonstrated commitment to continuous improvement."
    For the six months ended March 31, 2005, consolidated total sales increased 12.7% to $511,493,000 from $453,994,000 in the same period of fiscal year 2004. For the same period gross profit increased 23.3% to $147,060,000 from $119,303,000. Net income for the six months increased 15.2% to $65,227,000 or versus $56,625,000 in fiscal year 2004. Real estate gains after tax were $2,723,000 in 2005 versus $8,273,000 in 2004.
    Outlook: The strong product demand levels experienced in most of our markets during our first two quarters appears likely to stay strong through the third quarter. Mid-summer pricing improvements appear feasible at levels that should overcome, if not exceed, the higher operating costs attributable to rising energy and commodity prices.
    The Company will host a conference call at 10:00 a.m. E.D.T. on Tuesday, April 26, 2005. Analysts, stockholders and other interested parties may access the teleconference live by calling 1-888-682-4386 (security code FLORIDA ROCK), or via the Internet through the Conference America, Inc. website at http://www.yourcall.com/real/players/frk042605.smil or via the Company's website at http://www.flarock.com. If using the Company's website, click on Investor Relations - Florida Rock Industries, Inc. Conference Stream. There will be a 30-40 minute delay until the archive is available following the conclusion of the conference call.
    Florida Rock Industries, Inc. is one of the nation's leading producers of construction aggregates, a major provider of ready-mixed concrete and concrete products in the Southeastern and Mid-Atlantic States and a significant supplier of cement in Florida and Georgia.

    Investors are cautioned that any statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These include general business conditions, competitive factors, political, economic, regulatory and weather conditions, pricing, government spending levels on transportation projects, interest rate changes, energy and transportation costs and technological contingencies. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission.

FLORIDA ROCK INDUSTRIES, INC. Summary of Consolidated Sales and Earnings (Amounts in thousands except per share amounts) (Unaudited)

FOR THE THREE AND SIX MONTHS ENDED MARCH 31

THREE MONTHS SIX MONTHS 2005 2004 2005 2004 --------- --------- --------- --------- Net Sales $255,000 223,775 500,340 444,083 Freight Revenues 5,565 4,827 11,153 9,911 --------- --------- --------- --------- Total Sales $260,565 228,602 511,493 453,994 Gross Profit $77,521 60,500 147,060 119,303 Operating Profit $55,828 38,561 102,775 88,078 Interest Income/Expense (net) $(405) (338) (762) (677) Other Income/Expense (net) $93 333 1,033 1,354 Income before taxes $55,516 38,556 103,046 88,755 Net Income $35,140 24,497 65,227 56,625 Earnings per common share: Basic $.81 .57 1.50 1.31 Diluted $.79 .56 1.47 1.29 Weighted average shares outstanding: Basic 43,516 43,176 43,438 43,132 Diluted 44,451 44,042 44,393 44,002

FLORIDA ROCK INDUSTRIES, INC. Balance Sheet Data (Amounts in thousands) (Unaudited)

March 31, 2005 September 30, 2004 Cash and cash equivalents $6,506 45,891 Accounts receivable, net 123,721 107,000 Inventories 41,055 35,100 Other current assets 10,390 10,345 Property, plant and equipment, net 556,186 520,959 Other non-current assets 217,218 215,634 ---------- --------- Total Assets $955,076 934,929 ========== =========

Current liabilities $119,380 158,901 Long-term debt (excluding current maturities) 41,176 41,927 Deferred income taxes 82,352 79,181 Other non-current liabilities 35,751 34,040 Shareholders' equity 676,417 620,880 ---------- --------- Total Liabilities and Shareholders' Equity $955,076 934,929 ========== =========

FLORIDA ROCK INDUSTRIES, INC. Business Segments (Amounts in thousands) (Unaudited)

The Company has identified its business segments as Aggregates, Concrete Products, Cement and Calcium Products. All of the Company's operations are located in the southeastern and mid-Atlantic states and each is managed separately along product lines. Operating results for the Company's business segments are as follows:

Three Months Ended Six Months Ended March 31 March 31 2005 2004 2005 2004 --------- --------- --------- --------- Net Sales, excluding freight Aggregates $72,591 69,569 143,988 139,559 Concrete products 163,051 137,396 320,664 272,422 Cement and calcium 50,557 42,739 95,509 83,744 Inter-segment sales (31,199) (25,929) (59,821) (51,642) --------- --------- --------- --------- Total Net Sales, excluding freight $255,000 223,775 500,340 444,083 ========= ========= ========= ========= Operating Profit Aggregates $20,645 16,936 39,470 48,323 Concrete products 24,748 11,543 46,205 24,163 Cement and calcium 16,068 13,778 26,797 22,489 Corporate overhead (5,633) (3,696) (9,697) (6,897) --------- --------- --------- --------- Total Operating profit $55,828 38,561 102,775 88,078 ========= ========= ========= =========

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CONTACT: Florida Rock Industries, Inc., Jacksonville John D. Milton, Jr. , 904/355-1781, Ext. 258

KEYWORD: FLORIDA INDUSTRY KEYWORD: ENVIRONMENT MINING/METALS MANUFACTURING EARNINGS CONFERENCE CALLS SOURCE: Florida Rock Industries, Inc.

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