New Enterprise Stone & Lime Co., Inc. Reports First Quarter 2012 Earnings

NEW ENTERPRISE, Pa.--(BUSINESS WIRE)--New Enterprise Stone & Lime Co., Inc. today announced results for the first quarter ended May 31, 2011.

Paul I. Detwiler, III, President of New Enterprise Stone & Lime Co., Inc., commented, "Our first quarter results were adversely impacted by spring weather conditions, as well as the continued challenging macroeconomic environment. While these conditions led to a year-over-year decline in revenues, our previous cost reduction initiatives have helped mitigate the impact to the bottom line and we believe will provide earnings leverage when the market rebounds. We remain focused on executing on our business strategy and are optimistic that we will see conditions improve as we enter our seasonally strongest quarters.”

Net sales declined for the 2012 first quarter as compared to the prior year primarily due to adverse weather conditions and a continued decline in government spending. Segment sales in construction materials were down slightly for the 2012 first quarter compared to the prior year due to a decrease in sales of hot mix asphalt and ready mixed concrete, also as a result of the adverse weather conditions. The sales decrease in this segment was partially offset by an increase in the sales of aggregates. Segment sales in heavy/highway construction were lower for the 2012 first quarter compared to the prior year period due to the overall decrease in infrastructure spending in our markets and, to a lesser extent, the timing of the completion of various jobs and change orders. Segment sales in traffic safety services and equipment experienced a slight decrease for the 2012 first quarter compared to the prior year as uncertainty surrounding the timing and amount of federal highway programs continued to impact public sector spending.

New Enterprise Stone & Lime Co., Inc. will host a live webcast to review financial results and discuss market drivers and outlook on Wednesday, July 20, 2011 at 10:00 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.

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 nesl.com.

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 28, 2011. 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.