Rock of Ages Reports Second Quarter Results

BARRE, Vt.--(Business Wire)--
Rock of Ages Corporation (NASDAQ:ROAC) today announced operating
results for the second quarter of 2008. Net income from continuing
operations decreased to $727,000, or $0.10 per diluted share, compared
to $1,890,000, or $0.25 per share, for the second quarter of 2007. Net
revenues decreased to $14,326,000 compared to $16,450,000 for the
second quarter of 2007.

"As anticipated, the installation of new wire sawing technology at
all of our quarries affected our second quarter performance. In
addition, adverse weather forced a one-month delay in the opening of
our Vermont quarries, which in turn delayed granite inspections by
foreign customers, resulting in reduced quarry shipments in this
year's second quarter compared to last. Timing was also a factor in
our manufacturing division, as last year's shipments of larger and
more profitable mausoleums took place in the first two quarters
whereas this year our larger mausoleum shipments are scheduled in the
third and fourth quarters.

"We expect cost savings and improved productivity from the new
wire saw technology that is now up and running in all of our quarries
and in our Barre manufacturing plant to support solid growth in the
second half of the year, driven by continued strong demand for our
granite blocks and mausoleums," said Donald Labonte, Chief Executive
Officer.

"Unallocated corporate overhead decreased 24% for the second
quarter compared to the prior year, and interest expense decreased
32%. We reduced borrowings under our line of credit by $1,625,000 and
$764,000 since December 31, 2007, and March 31, 2008, respectively,
and we expect further reductions this year. With our strong second
quarter operating cash flow, we reduced short-term debt even as we
invested approximately $2,100,000 in capital improvements in our
quarries and manufacturing plants.

"We continue to believe that our divisional operating income will
be higher than last year and that our previously provided 2008
estimates of unallocated corporate overhead of about $3.8 million and
interest of $1.4 million will be met," Labonte said.

Second Quarter Results

For the three months ended June 28, 2008, net revenues decreased
12.9% to $14,326,000 compared to $16,450,000 for the second quarter of
2007, primarily reflecting a 27.6% decrease in quarry revenue to
$5,560,000 from $7,683,000. Manufacturing revenue was unchanged.

Gross profit for this year's second quarter decreased to
$3,773,000 compared to $5,292,000 a year earlier. Quarry gross profit
decreased to $1,154,000 compared to $1,942,000 for the second quarter
of 2007, and manufacturing gross profit decreased to $2,619,000 from
$3,350,000.

SG&A expense decreased 7.9% to $1,642,000 for the second quarter
of 2008 compared to $1,782,000 for the second quarter of 2007.

Total divisional operating income decreased to $2,131,000 for this
year's second quarter compared to $3,510,000 for the second quarter of
2007.

Unallocated corporate overhead decreased 24% to $889,000 for the
second quarter of 2008 compared to $1,169,000 the previous year.
Interest expense allocated to continuing operations decreased 31.7% to
$351,000 from $514,000 last year.

Income from continuing operations was $727,000, or $0.10 per
diluted share, for the second quarter of 2008. This compares to income
from continuing operations of $1,890,000, or $0.25 per diluted share,
for the second quarter of 2007.

Net income declined to $727,000, or $0.10 per diluted share, for
the second quarter of 2008. This compares to net income of $3,942,000,
or $0.53 per diluted share, for the second quarter of 2007, which
included income from the Company's discontinued retail operations of
$2,052,000, or $0.28 per diluted share.

Six Months Results

For the six months ended June 28, 2008, revenue decreased 6.9% to
$22,716,000 compared to $24,397,000 for the first six months of 2007.
Gross profit decreased to $3,639,000 compared to $4,914,000 for the
same period a year ago.

Total SG&A expenses declined 5.2% to $3,257,000 for the first half
of 2008 compared to $3,436,000 for the first half of 2007. Unallocated
corporate overhead decreased 13.7% to $2,176,000 from $2,521,000.
Interest expense decreased 28% to $708,000 compared to $984,000 for
the first half of last year.

The loss from continuing operations for the first six months of
2008 was $2,436,000, or $0.33 per share, compared to a loss from
continuing operations of $1,918,000, or $0.26 per share, for the same
period in 2007.

The net loss for the first six months of 2008 was $2,578,000, or
$0.35 per share, which included a loss from discontinued operations of
$142,000, or $0.02 per share. The net loss for the first six months of
2007 was $2,610,000, or $0.35 per share, which included a loss from
discontinued operations of $692,000, or $0.09 per share.

About Rock of Ages

Rock of Ages (www.RockofAges.com) is the largest integrated
granite quarrier and manufacturer of finished granite memorials and
granite blocks for memorial use in North America.

Forward-Looking Statements

This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on current
expectations, estimates and projections about our business or expected
events based, in part, on assumptions made by management. These
statements are not guarantees of future performance and involve risks,
uncertainties and assumptions that are difficult to predict.
Therefore, actual events, results or outcomes may differ materially
from what is expressed or forecasted in such forward-looking
statements due to numerous factors, including the challenge of
successfully implementing our strategic plan intended to enhance our
overall profitability; unanticipated overhead or other expenses;
changes in demand for our products due to general economic conditions;
and other risks discussed from time to time in the Company's
Securities and Exchange Commission filings and reports including, but
not limited to, the risks discussed in the Company's Annual Report on
Form 10-K for the year ended December 31, 2007. Such forward-looking
statements speak only as of the date on which they are made, and the
Company does not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after the
date of this release.

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ROCK OF AGES CORPORATION
Consolidated Statements of Operations
(In thousands, except per share data) (Unaudited)

Three Months Ended Six Months Ended
June 28, June 30, June 28, June 30,
--------- -------- -------- --------
2008 2007 2008 2007
--------- -------- -------- --------
Net revenue
Quarry $ 5,560 $ 7,683 $10,229 $11,672
Manufacturing 8,766 8,767 12,487 12,725
--------- -------- -------- --------
Total net revenue 14,326 16,450 22,716 24,397
--------- -------- -------- --------

Gross profit
Quarry 1,154 1,942 664 832
Manufacturing 2,619 3,350 2,975 4,082
--------- -------- -------- --------
Total gross profit 3,773 5,292 3,639 4,914
--------- -------- -------- --------

Selling, general and
administrative expenses
Quarry 615 769 1,224 1,495
Manufacturing 1,027 1,013 2,033 1,941
--------- -------- -------- --------
Total SG&A expenses 1,642 1,782 3,257 3,436
--------- -------- -------- --------

Divisional operating income
(loss)
Quarry 539 1,173 (560) (663)
Manufacturing 1,592 2,337 942 2,141
--------- -------- -------- --------
Total divisional operating
income 2,131 3,510 382 1,478

Unallocated corporate overhead 889 1,169 2,176 2,521
Insurance recovery - quarry
asset -- (212) -- (212)
Other income, net (59) (56) (123) (90)
--------- -------- -------- --------
Income (loss) from continuing
operations before interest
and taxes 1,301 2,609 (1,671) (741)

Interest expense, net 351 514 708 984
--------- -------- -------- --------

Income (loss) from continuing
operations before income
taxes 950 2,095 (2,379) (1,725)

Income tax expense 223 205 57 193
--------- -------- -------- --------

Income (loss) from continuing
operations 727 1,890 (2,436) (1,918)

Income (loss) from discontinued
operations -- 2,052 (142) (692)
--------- -------- -------- --------

Net income (loss) $ 727 $ 3,942 $(2,578) $(2,610)
========= ======== ======== ========

Net income (loss) per share -
basic and diluted:
Income (loss) from continuing
operations $ 0.10 $ 0.25 $ (0.33) $ (0.26)
Income (loss) from
discontinued operations -- 0.28 (0.02) (0.09)
--------- -------- -------- --------
Net income (loss) per share -
basic and diluted: $ 0.10 $ 0.53 $ (0.35) $ (0.35)
========= ======== ======== ========

Weighted average common shares
outstanding - basic and
diluted 7,416 7,399 7,416 7,399
========= ======== ======== ========

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ROCK OF AGES CORPORATION
Consolidated Balance Sheets
(in thousands, except per share amounts)
(Unaudited)

June 28, December 31,
Assets 2008 2007
--------- ------------
Current assets:
Cash and cash equivalents $ 832 $ 1,961
Trade receivables, net 9,871 11,713
Inventories 21,395 21,680
Other current assets 1,808 1,867
Assets of discontinued operations -- 14,266
--------- ------------
Total current assets 33,906 51,487
--------- ------------

Property, plant and equipment, net 32,995 31,786
Cash surrender value of life insurance 128 186
Intangibles, net 691 383
Goodwill 387 387
Long-term investments 228 242
Other 180 174
--------- ------------
Total assets $ 68,515 $ 84,645
========= ============

Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under line of credit $ 8,873 $ 10,498
Current installments of long-term debt 41 5,191
Current installments of retirement benefits 570 584
Trade payables 1,296 1,794
Accrued expenses 1,874 2,303
Customer deposits 1,114 747
Liabilities of discontinued operations -- 6,748
--------- ------------
Total current liabilities 13,768 27,865

Long-term debt, excluding current
installments 14,655 14,158
Salary continuation 5,430 5,531
Accrued pension cost 3,860 3,668
Other 3,032 2,897
Deferred tax liability 54 55
--------- ------------
Total liabilities 40,799 54,174
--------- ------------

Stockholders' equity:
Preferred stock - 0.01 par value;
authorized 2,500,000 shares; issued and
outstanding no shares -- --
Common stock Class A, 0.01 par value;
authorized 30,000,000 shares; 4,812,342
and 4,677,467 shares issued and
outstanding as of June 28, 2008 and
December 31, 2007, respectively 48 47
Common stock Class B, 0.01 par value;
authorized 15,000,000 shares; 2,603,721
and 2,738,596 shares issued and
outstanding as of June 28, 2008 and
December 31, 2007, respectively 26 27
Additional paid-in capital 65,664 65,657
Accumulated deficit (35,931) (33,352)
Accumulated other comprehensive loss (2,091) (1,908)
--------- ------------
Total stockholders' equity 27,716 30,471
--------- ------------
Total liabilities and stockholders' equity $ 68,515 $ 84,645
========= ============
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Rock of Ages Corporation
Laura Plude, Chief Financial Officer
802-476-2208
or
Kurt Swenson, Chairman
603-225-8397
www.RockofAges.com

Copyright Business Wire 2008