Rock of Ages Reports Third Quarter Net Income of $0.30 Per Share

Rock of Ages Corporation (NASDAQ: ROAC) announced today that net income for the third quarter of 2010 was $2,200,000, or $0.30 per share, which included costs and expenses associated with the exploration of strategic options and the shareholder lawsuit totaling $358,000, or $0.05 per share. For the third quarter of 2009, net income was $1,534,000, or $0.21 per share. Revenue for this year's third quarter increased 22% to $15,756,000 compared to $12,881,000 for the third quarter of 2009.

Divisional operating income increased 44% to $3,583,000 compared to $2,492,000 last year, and unallocated corporate overhead decreased to $622,000 from $660,000.

Manufacturing revenue for the third quarter of 2010 increased 11% to $7,719,000 compared to $6,967,000 for the third quarter of 2009. Decreased sales in the Barre monumental division were offset by increased sales in the Rock of Ages Canada monumental division and industrial products. Operating income in the manufacturing segment increased to $1,264,000 from $1,084,000 a year ago, reflecting the higher revenue. "The mausoleum sales have not bounced back as quickly as we had hoped but the industrial products and our Canadian monumental sales have more than filled the gap. We remain confident regarding the performance of our manufacturing operations for 2010 as a whole," said Chief Executive Officer Donald Labonte.

Quarry revenue for the third quarter of 2010 increased 36% to $8,037,000 compared to $5,914,000 for the third quarter of 2009, and operating income increased 65% to $2,319,000 compared to $1,408,000 last year, reflecting the higher revenue, lower operating expenses and higher productivity due to the development and production improvements undertaken in the past years. "As we expected, our quarry development programs have increased our ability to produce and deliver higher quantities of saleable granite. The demand for our granite remains strong and we continue to be optimistic about our quarry performance for the remainder of the year," Labonte said.

Nine Months Results

For the nine months ended October 2, 2010, revenue increased 14% to $37,930,000 from $33,242,000 for the first nine months of 2009. Gross profit increased 28%, SG&A was up $265,000, or 6%, and divisional income increased 58% compared to the first nine months of 2009.

Net income for the first nine months of 2010 was $1,668,000, or $0.22 per share, which included costs and expenses associated with the exploration of strategic options and the shareholder lawsuit totaling $852,000, or $0.11 per share. For the first nine months of 2009, net income was $193,000, or $0.03 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 or future events 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, including expenses in connection with the recently announced merger agreement between the Company and Swenson Granite Company LLC and related matters; 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, 2009. 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.

Information About the Proposed Transaction With Swenson Granite Company LLC

In connection with the proposed merger with Swenson Granite Company LLC, Rock of Ages will file a proxy statement with the Securities and Exchange Commission. INVESTORS AND SECURITY HOLDERS ARE STRONGLY ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the proxy statement (when available) and other documents filed by Rock of Ages from the Securities and Exchange Commission’s Web site at http://www.sec.gov. The proxy statement (when available) and such other documents may also be obtained for free from Rock of Ages’ website at http://www.rockofages.com or by directing such request to Rock of Ages Corporation, Chief Financial Officer, 560 Graniteville Road, Graniteville, Vermont 05654, telephone: (802) 476-3115.

Rock of Ages and its directors, executive officers and certain other members of its management and employees may be deemed to be participants in the solicitation of proxies from its shareholders in connection with the proposed merger. Information regarding the interests of Rock of Ages’ participants in the solicitation will be included in the proxy statement relating to the proposed merger when it becomes available. Additional information regarding Rock of Ages’ directors and executive officers is also included in Rock of Ages’ proxy statement for its 2010 Annual Meeting of Stockholders, which was filed with the SEC on July 19, 2010. This document is available free of charge from the SEC’s Web site at www.sec.gov, from Rock of Ages’ website at http://www.rockofages.com or by directing such request to Rock of Ages Corporation, Chief Financial Officer, 560 Graniteville Road, Graniteville, Vermont 05654, telephone: (802) 476-3115.

(tables attached) #4737

ROCK OF AGES CORPORATION

Consolidated Statements of Operations

(In thousands, except per share amounts) (Unaudited)

Three Months Ended

Nine Months Ended

Oct. 2,

Oct. 3,

Oct. 2,

Oct. 3,

2010

2009

2010

2009

Net revenue:

Quarry

$

8,037

$

5,914

$

18,297

$

15,949

Manufacturing

7,719

6,967

19,633

17,293

Total net revenue

15,756

12,881

37,930

33,242

Gross profit:

Quarry

2,923

1,911

4,707

3,433

Manufacturing

2,397

2,022

5,510

4,556

Total gross profit

5,320

3,933

10,217

7,989

Selling, general and administrative expenses:

Quarry

604

503

1,694

1,633

Manufacturing

1,133

938

3,168

2,964

Total SG&A expenses

1,737

1,441

4,862

4,597

Divisional operating income:

Quarry

2,319

1,408

3,013

1,800

Manufacturing

1,264

1,084

2,342

1,592

Total divisional operating income

3,583

2,492

5,355

3,392

Unallocated corporate overhead

622

660

1,977

2,393

Strategic options and lawsuit expenses

358

--

852

--

Foreign exchange gain

--

--

(83

)

--

Effect of pension curtailment

--

--

--

95

Other income, net

(45

)

(76

)

(191

)

(219

)

Income before interest and income taxes

2,648

1,908

2,800

1,123

Interest expense, net

253

334

827

871

Income before income taxes

2,395

1,574

1,973

252

Income tax expense

195

40

305

59

Net income

$

2,200

$

1,534

$

1,668

$

193

Net income per share - basic

$

0.30

$

0.21

$

0.22

$

0.03

Net income per share - diluted

$

0.30

$

0.21

$

0.22

$

0.03

Weighted average common shares outstanding - basic

7,416

7,416

7,416

7,416

Weighted average common shares outstanding -diluted

7,451

7,416

7,435

7,416

ROCK OF AGES CORPORATION

Consolidated Balance Sheets

(in thousands, except per share amounts) (Unaudited)

Oct. 2,

Dec. 31,

Assets

2010

2009

Current assets:

Cash and cash equivalents

$ 1,163

$ 1,713

Trade receivables, net

10,954

7,241

Inventories

14,845

15,077

Other current assets

1,349

1,620

Assets held for sale

621

758

Total current assets

28,932

26,409

Property, plant and equipment, net

30,551

30,559

Identified intangible assets, net

458

582

Goodwill

387

387

Other long-term assets

235

515

Total assets

$ 60,563

$ 58,452

Liabilities and Stockholders' Equity

Current liabilities:

Borrowings under line of credit

--

$ 214

Current installments of long-term debt

1,314

801

Current installments of retirement benefits

702

691

Trade payables

1,851

1,285

Accrued expenses

2,613

1,264

Customer deposits

1,233

774

Deferred tax liabilities

53

236

Total current liabilities

7,766

5,265

Long-term debt, excluding current installments

11,660

13,361

Salary continuation

5,218

5,386

Accrued pension cost

4,322

4,810

Deferred salary

1,504

1,504

Accrued post retirement benefits

1,603

1,622

Total liabilities

32,073

31,948

Stockholders' equity:

Preferred stock $0.01 par value. Authorized 2,500,000 shares; none issued

--

--

Common stock Class A, $0.01 par value, Authorized 30,000,000 shares;

4,812,342 issued and outstanding at July 3, 2010 and December 31, 2009

48

48

Common stock Class B, $0.01 par value. Authorized 15,000,000 shares;

2,603,721 issued and outstanding at July 3, 2010 and December 31, 2009

26

26

Additional paid-in capital

65,791

65,751

Accumulated deficit

(33,078)

(34,746)

Accumulated other comprehensive loss

(4,297)

(4,575)

Total stockholders' equity

28,490

26,504

Total liabilities and stockholders' equity

$ 60,563

$ 58,452

Contacts:

Rock of Ages Corporation
Laura Plude, 802-476-2208
CFO
www.RockofAges.com
or
Kurt Swenson, 603-225-8397
Chairman
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