EX-99.25 2 p70359exv99w25.htm EX-99.25 exv99w25
 

Exhibit 99.25

(MEADOW VALLEY CORPORATION LOGO)   4411 South 40th St., Ste. D11
Phoenix, Arizona 85040
 
 
 
 
   
 Telephone: (602) 437-5400
FOR IMMEDIATE RELEASE   Fax: (602) 437-1681
     
Investor Contact:   Company Contact:
Neil Berkman Associates   Bradley E. Larson
(310) 277-5162   Chief Executive Officer
info@BerkmanAssociates.com   www.MeadowValley.com

Meadow Valley Reports Fourth Quarter and 2004 Results

2004 Fourth Quarter Net Income Is $0.15 per Share Versus A Loss of $(0.09) Per Share
2004 Net Income Is $0.16 per Share Versus $0.03 Per Share

     PHOENIX, ARIZONA, March 15, 2005 . . . MEADOW VALLEY CORPORATION (NASDAQ:MVCO) today announced higher consolidated revenue and net income for the fourth quarter and 2004 compared to the same periods of 2003.

2004 Fourth Quarter Results

     For the three months ended December 31, 2004, revenue increased 13% to $41.9 million from $37.1 million for the fourth quarter of 2003, reflecting a 7% increase in construction services revenue and a 27% increase in construction materials revenue. Net income for the fourth quarter of 2004 was $0.55 million, or $0.15 per diluted share. This compares to a net loss for the fourth quarter of 2003 of $(0.32) million, or $(0.09) per share.

2004 Annual Results

     For the twelve months ended December 31, 2004, revenue increased 8% to $166.8 million from $154.1 million for 2003, reflecting a 2% decrease in construction services revenue and a 33% increase in revenue for construction materials. Net income for 2004 was $0.6 million, or $0.16 per diluted share. This compares to net income for 2003 of $0.1 million, or $0.03 per diluted share.

Construction Materials: Ready Mix, Inc.

     Revenue for Ready Mix, Inc. (RMI), the Company’s wholly owned construction materials subsidiary, increased to $14.0 million for the fourth quarter of 2004 and $58.7 million for the year. This compares to revenue of $11.0 million for the fourth quarter of 2003 and $44.0 million for the year. Gross margin was 12.5% for the fourth quarter of 2004 and 11.3% for the year. This compares to gross margin of 9.0% and 9.3% for comparable periods of 2003.
     On February 11, 2005, Ready Mix, Inc. filed a registration statement with the Securities and Exchange Commission for the initial public offering of 1,000,000 shares of RMI common stock at a proposed offering price of $12.00 per share. The shares will be offered on a firm commitment basis through Wunderlich Securities, Memphis, TN. Subsequent to the offering, Meadow Valley will own 1,500,000 shares of RMI common stock, or 60% of the total shares of RMI outstanding. Proceeds from the initial public offering, which is expected in the second quarter of 2005, will be used by RMI for the purchase of plant and equipment, repayment of approximately $2.7 million of debt to Meadow Valley, and working capital.

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Meadow Valley Reports Fourth Quarter and 2004 Results
March 15, 2005
Page Two

Construction Services

     Revenue from Meadow Valley’s construction services business increased to $27.8 million for the fourth quarter of 2004 compared to $26.1 million for the fourth quarter of 2003. For 2004, revenue declined to $108.2 million from $110.1 million for 2003. Gross margin for the fourth quarter of 2004 was 0.8% compared to a gross margin loss of (0.9)% for the fourth quarter of 2003. For 2004, gross margin was 0.3% compared to gross margin of 2% for 2003.
     The Company recognized losses on a single project in Utah of approximately $1.5 million in the fourth quarter of 2004 and $5.2 million for the year, which had the effect of reducing gross margin for the construction services segment. For 2003, losses recognized on this project totaled $2.5 million. “We do not expect to incur any additional losses on this project, whose poor performance has masked the solid performance of our other heavy construction projects in Arizona and Nevada. Going forward, we plan to concentrate our heavy construction activities in Arizona and Nevada, which historically have been the most successful markets for Meadow Valley,” said Chief Executive Officer Bradley Larson.

Backlog

     Backlog in the construction services segment at December 31, 2004 increased to $93.6 million, which includes approximately $90.0 million of work that is scheduled for completion during 2005. At December 31, 2003, backlog was approximately 70.6 million.

About Meadow Valley

     Meadow Valley Corporation, based in Phoenix, Arizona, is engaged in the construction industry as both a contractor and a supplier of construction materials. The Company’s construction services segment specializes in structural concrete construction of highway bridges and overpasses, and the paving of highways and airport runways, primarily in Nevada and Arizona. The Company’s construction materials operations provide concrete and gravel products primarily to other contractors. The Company’s materials operations are concentrated in the Las Vegas and Phoenix metropolitan areas.

Forward-Looking Statements

     Certain statements in this release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: changes in demand for the Company’s products and services, product mix, the timing of new orders and contract awards, the impact of competitive products and pricing, excess or shortage of production capacity, and other risks discussed from time to time in the Company’s Securities and Exchange Commission filings and reports, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2003. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic economic conditions. 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.

(TABLES ATTACHED)

 


 

MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

                                 
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2004     2003     2004     2003  
    (unaudited)     (unaudited)     (unaudited)        
Revenue:
                               
Construction services
  $ 27,847,983     $ 26,066,189     $ 108,168,921     $ 110,119,548  
Construction materials
    14,003,027       11,030,115       58,662,743       43,987,317  
 
                       
Total revenue
    41,851,010       37,096,304       166,831,664       154,106,865  
 
                       
Cost of revenue:
                               
Construction services
    27,633,837       26,311,992       107,827,853       107,883,229  
Construction materials
    12,252,687       10,034,674       52,036,021       39,880,018  
 
                       
Total cost of revenue
    39,886,524       36,346,666       159,863,874       147,763,247  
 
                       
Gross profit
    1,964,486       749,638       6,967,790       6,343,618  
General and administrative expenses
    1,823,816       1,513,127       6,509,839       6,494,285  
 
                       
Income (loss) from operations
    140,670       (763,489 )     457,951       (150,667 )
 
                       
Other income (expense):
                               
Interest income
    37,826       11,660       85,864       58,622  
Interest expense
    (88,529 )     (106,495 )     (348,229 )     (489,117 )
Other income
    723,652       310,524       694,857       743,543  
 
                       
 
    672,949       215,689       432,492       313,048  
 
                       
Income (loss) before income taxes
    813,619       (547,800 )     890,443       162,381  
Income tax (benefit) expense
    (261,995 )     224,675       (290,804 )     (41,643 )
 
                       
Net income (loss)
  $ 551,624     $ (323,125 )   $ 599,639     $ 120,738  
 
                       
Net income (loss) per common share
                               
Basic
  $ 0.16     $ (0.09 )   $ 0.17     $ 0.03  
 
                       
Diluted
  $ 0.15     $ (0.09 )   $ 0.16     $ 0.03  
 
                       
Weighted average common shares outstanding
                               
Basic
    3,601,250       3,601,250       3,601,250       3,593,102  
 
                       
Diluted
    3,887,900       3,625,878       3,780,597       3,599,259  
 
                       

 


 

MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

                 
    December 31,  
    2004     2003  
    (unaudited)        
Assets
               
Current assets:
               
Cash and cash equivalents
  $ 10,164,218     $ 4,738,388  
Restricted cash
    1,268,449       1,844,891  
Accounts receivable, net
    22,163,719       20,664,022  
Claims receivable
          4,101,898  
Prepaid expenses and other
    2,818,395       2,196,899  
Inventory, net
    871,112       1,249,118  
Land held for sale
          264,738  
Costs and estimated earnings in excess of billings on uncompleted contracts
    449,358       1,463,309  
Deferred tax asset
    1,597,627       1,243,896  
 
           
Total current assets
    39,332,878       37,767,159  
Property and equipment, net
    21,541,946       13,127,675  
Refundable deposits
    21,780       94,299  
Mineral rights and pit development, net
    252,044       309,110  
Claims receivable
    3,521,080       3,521,080  
Other receivables
    115,000        
 
           
Total assets
  $ 64,784,728     $ 54,819,323  
 
           
Liabilities and stockholders’ equity
               
Current liabilities:
               
Accounts payable
  $ 19,711,571     $ 18,646,857  
Accrued liabilities
    4,907,554       4,563,816  
Notes payable
    5,212,187       3,512,286  
Obligations under capital leases
    531,746       878,280  
Billings in excess of costs and estimated earnings on uncompleted contracts
    7,219,762       4,955,454  
 
           
Total current liabilities
    37,582,820       32,556,693  
Deferred tax liability
    3,243,268       2,604,652  
Notes payable, less current portion
    10,804,017       6,999,729  
Obligations under capital leases, less current portion
    981,799       1,085,064  
 
           
Total liabilities
    52,611,904       43,246,138  
 
           
Commitments and contingencies
               
Stockholders’ equity:
               
Preferred stock — $.001 par value; 1,000,000 shares authorized, none issued and outstanding
           
Common stock — $.001 par value; 15,000,000 shares authorized, 3,601,250 issued and outstanding
    3,601       3,601  
Additional paid-in capital
    10,943,569       10,943,569  
Capital adjustments
    (799,147 )     (799,147 )
Retained earnings
    2,024,801       1,425,162  
 
           
Total stockholders’ equity
    12,172,824       11,573,185  
 
           
Total liabilities and stockholders’ equity
  $ 64,784,728     $ 54,819,323