Mr. Garrett Ganden reports

ROCKY MOUNTAIN DEALERSHIPS INC. (TSX:RME, OTCQX:RCKXF) ANNOUNCES FIRST QUARTER 2015 RESULTS

Rocky Mountain Dealerships Inc. is releasing its financial results for the quarter ended March 31, 2015.

Summary of financial results for the quarter ended March 31, 2015:

• Total revenues increased by 11.2 per cent to $220.4-million.
• Same-store used agriculture equipment sales increased by $32.4-million to $82.8-million.
• Product support revenues increased by 6.9 per cent to $24.0-million.
• Gross profit increased by 7.6 per cent to $31.5-million (14.3 per cent of sales).
• Diluted earnings per share were two cents, as compared with three cents in 2014. On a comparable basis, earnings improved by two cents after adjusting for the prior-year after-tax gain on the disposition of fixed assets.
• EBITDA (earnings before interest, taxes, depreciation and amortization) decreased to $2.8-million, from $3.2-million in 2014.

A moderate winter and early spring in the majority of the company's dealership footprint resulted in an earlier start to the 2015 farming season. The weather, combined with stable commodity prices and an increase in grain deliveries via rail, increased demand for used agriculture equipment sales during the first quarter. The increase in used agriculture equipment sales and a decrease in new agriculture equipment procurement have enabled Rocky to avoid the build in equipment inventory traditionally experienced during the first quarter.

Product support activity continued to benefit from improved market penetration and operational efficiencies, which, when coupled with the early spring, translated into yet another quarter of parts and service sales growth.

Operating SG&A (selling, general and administrative) as a percentage of sales decreased from 11.8 per cent in 2014, to 11.7 per cent in the current quarter. The year-over-year increase in operating SG&A from $23.3-million to $25.8-million is attributable, in part, to an $800,000 gain on the disposition of fixed assets recognized during the first quarter of 2014, and $200,000 in acquisition transaction costs and a $200,000 increase in non-cash charges associated with marking Rocky's interest rate swaps to market in the current quarter.

Commenting on the quarterly increase in sales, Garrett Ganden, president and chief executive officer of Rocky, remarked: "We are pleased with our results in the first quarter of 2015. We continue to make progress on a number of key initiatives, including capitalizing on the declining U.S. dollar, which, when combined with our targeted marketing efforts to U.S. customers, generated strong incremental sales activity.

"The increase in sales is also encouraging from the perspective of our current inventory levels, the reduction of which continues to be top priority for 2015. Historically, Rocky has experienced seasonal increases in equipment inventory of between 5 per cent and 15 per cent during the first quarter. The first quarter of 2015, however, saw Rocky maintain its level of equipment inventory thanks primarily to the significant growth in used agriculture equipment sales. As it pertains to our overall inventory reduction efforts, our first quarter results are encouraging.

"Our parts and service business continued on its pattern of sales growth as we continue to realize our product support opportunities through being a dependable partner to the customers we serve. These departments are critical to our business and provide stability in our overall earnings as equipment demand softens."

Quarterly cash dividend

On May 5, 2015, the board of directors of Rocky approved a quarterly dividend of 11.5 cents per common share on its outstanding common shares. The common share dividend is payable on June 30, 2015, to shareholders of record at the close of business on May 29, 2015.

Commenting on the dividend, Mr. Ganden noted: "Rocky endeavours to provide our shareholders with a dependable return on investment by balancing cash distributions and reinvestment in the business. Following three consecutive years of dividend increases and a strong yield approximating 5 per cent, we've elected to maintain our level of distribution. We see accretive acquisitive growth opportunities for Rocky and our current capital allocation positions us well to pursue these opportunities."

This dividend is designated by Rocky to be an eligible dividend for the purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. Please consult with your own tax adviser for advice with respect to the income tax consequences to you from Rocky designating its dividends as eligible dividends.

Conference call

On May 6, 2015, Rocky will discuss its results via live conference call and audio webcast, beginning at 9 a.m. Mountain Time (11 a.m. Eastern Time). Senior management of Rocky will provide remarks on the quarter, followed by a question-and-answer session with analysts and institutional investors.

Those interested in participating in the conference call may do so by calling 1-888-231-8191 (toll-free) or 1-647-427-7450. A live webcast of the conference call will also be accessible through Rocky's website.

An archived recording of the conference call will be available until Wednesday, May 20, 2015, by dialling 1-855-859-2056 (toll-free) or 1-416-849-0833, passcode 22842668. This archived recording will also be available via Rocky's website.

              SELECTED QUARTERLY FINANCIAL INFORMATION 
       (in thousands of dollars, except per-share amounts)

                                           For the quarter ended March 31,                                   
                                                        2015         2014           
Sales   
New equipment                                      $ 111,748    $ 124,269
Used equipment                                        83,785       50,751
Parts                                                 16,988       15,518
Service                                                7,053        6,976
Other                                                    849          652
                                                     220,423      198,166
Cost of sales                                        188,963      168,934
Gross profit                                          31,460       29,232
Selling, general and administrative                   27,630       25,058
Interest on short-term debt                            2,855        2,677
Interest on long-term debt                               514          532
Earnings before income taxes                             461          965
Provision for income taxes                               129          361
Net earnings                                             332          604
Earnings per share                                       
Basic                                              $    0.02    $    0.03
Diluted                                            $    0.02    $    0.03
Dividends per share                                $  0.1150    $  0.1000
EBITDA                                                 2,775        3,221
Operating SG&A                                        25,830       23,334
Floor plan neutral operating cash flow                 3,472      (41,667)

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