New Enterprise Stone & Lime Co. Inc. announced financial results for the first quarter ended May 31, 2012, and filed its first quarter 2013 results on Form 10-Q with the Securities and Exchange Commission.
Paul I. Detwiler, III, President of New Enterprise Stone & Lime Co. Inc., commented, “Our first quarter performance reflected improved operational execution as demand conditions benefitted from a warmer-than-expected spring season. Nevertheless, current market conditions remain challenging as our local municipalities continue to deal with significant budgetary constraints combined with a competitive contract bidding environment. Additionally, our profitability was affected by higher costs related to addressing issues from our enterprise resource program, increased interest expense and a write-off of unamortized deferred financing fees. While we remain focused on effectively managing our cost structure, we will continue to invest in our growth initiatives to maximize the long-term potential of the company while solidifying our liquidity position. However, we expect that the challenges to our business environment will persist throughout the remainder of fiscal year 2013.
“Net sales increased for the 2013 first quarter as compared to the prior year due to better weather conditions partially offset by the slow pace of the economic recovery and continued pressure on state budgets,” Detwiler said. “Segment sales in construction materials were higher for the 2013 first quarter compared to the prior year due to higher sales of aggregates, hot mix asphalt, and ready mixed concrete. Segment sales in heavy/highway construction increased in the 2013 first quarter compared to the prior year period due to the favorable weather conditions that allowed for projects to begin earlier than in the prior year. Segment sales in traffic safety services and equipment were improved for the 2013 first quarter compared to the prior year as result of higher highway safety equipment sales, which were partially offset by a decrease in rental service activity.”