Exhibit 99.03
 | Company Contact: Bradley E. Larson Chief Executive Officer www.readymixinc.com | Investor Contact: Neil Berkman Associates (310) 277-5162 info@BerkmanAssociates.com | ||
| FOR IMMEDIATE RELEASE | ||||
Ready Mix Inc. Third Quarter Net Income Increases 44%
LAS VEGAS, NEVADA, November 8, 2005 . . .READY MIX, INC. (RMI) (AMEX:RMX)today announced financial results for the third quarter of 2005, highlighted by a 44% increase in net income for the period.
“We are pleased by RMI’s performance for the third quarter, our first quarter as a public company,” said Chief Executive Officer Brad Larson. “Our solid position in the ready-mix concrete markets in Phoenix and Las Vegas, two of the fastest-growing metropolitan regions in the country, gives us an exciting opportunity for continued success.”
Third Quarter Results
For the three months ended September 30, 2005, RMI reported that revenue increased 16% to $18.9 million compared to revenue of $16.3 million for the third quarter of 2004. Gross margin improved to 13.0% of revenue for this year’s third quarter versus 12.4% for the same period of the prior year. Income from operations rose 33%, to $1.9 million for the third quarter of 2005 compared to $1.4 million for the same period last year. Net income increased 44% to $1.2 million, or $0.42 per diluted share based on approximately 2.8 million diluted weighted average common shares outstanding. This compares to net income for the third quarter of 2004 of $0.8 million, or $0.41 per diluted share, based on approximately 2.0 million diluted weighted average common shares outstanding.
On August 24, 2005, RMI completed an initial public offering of approximately 1.8 million shares of its common stock at a price of $11.00 per share, including approximately 0.23 million shares to cover over-allotments.
At September 30, 2005, RMI reported working capital of approximately $15.4 million, including cash and cash equivalents of $14.1 million, a current ratio of 2.8-to-1, and total stockholders’ equity of $23.6 million.
Nine Month Results
For the nine months ended September 30, 2005, revenue increased 13% to $50.7 million from $44.8 million for the first nine months of 2004. Net income increased 18% to $2.1 million, or $0.93 per diluted share based on approximately 2.3 million diluted weighted average common shares outstanding. This compares to net income for the first nine months of 2004 of $1.8 million, or $0.89 per diluted share based on approximately 2.0 million diluted weighted average common shares outstanding.
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Ready Mix Inc. Third Quarter Net Income Increased 44%
November 10, 2005
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November 10, 2005
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Operations Update
RMI recently announced the opening of a new concrete batch plant in Las Vegas, located in the southwest metropolitan area near Blue Diamond Road and Rainbow. “Including this new batch plant, we currently are operating three batch plants in the Las Vegas metro area, one in Moapa, Nevada, and two in Phoenix, all served by our fleet of 146 mixer trucks,” Larson said. “We anticipate opening two additional concrete plants in the Phoenix market during 2006.”
Larson added that RMI has continued to acquire rights to sand and gravel properties in both the Phoenix and Las Vegas areas for the future production of concrete aggregates, and potentially to serve as additional ready-mix batch plant sites. “The ownership of mining rights, or properties with aggregate reserves, is a key resource for our business, and we believe a significant contributor to building long-term value,” Larson said.
Larson noted that the residential sector typically contributes approximately 50% of RMI’s revenue. “Phoenix and Las Vegas have both experienced tremendous population growth over the past twenty years. While these communities will not be exempt from the normal ebbs and flows of the housing market, we expect the upward trend to continue. We also see good opportunities to continue expanding our business in other sectors of the construction industry, including commercial, industrial and transportation infrastructure,” he said.
Conference Call
Ready Mix has scheduled a conference call today at 11:00 a.m. EST. A simultaneous webcast of the conference call may be accessed online at the Investor Information link of www.ReadyMixInc.com or at www.CompanyBoardroom.com. A replay will be available after 1:00 p.m. EST at these same Internet addresses. For a telephone replay, dial (800) 633-8284, reservation #21265408 after 1:00 p.m. EST.
About Ready Mix, Inc.
RMI has provided ready-mix concrete products to the construction industry since 1997. It currently operates two ready-mix concrete plants in the metropolitan Phoenix area, three plants in the metropolitan Las Vegas area, and one plant in Moapa, Nevada. The Company also operates a sand and gravel crushing and screening facility in Moapa, which provides raw materials for its Las Vegas and Moapa concrete plants. In Phoenix and Las Vegas, RMI deploys a fleet of 146 mixer trucks to deliver its ready-mix concrete to customer job sites.
Forward-Looking Statements
The statements in this press release that are forward looking are based on current expectations and actual results or future events may differ materially. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company or future events to differ materially from those expressed in or underlying such forward-looking statements, including without limitation: national and local economic, business, real estate and other market conditions; the competitive environment in which the Company operates; the execution of the Company’s business plan; financing risks; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the construction industry generally. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the prospectus.
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READY MIX, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| Nine months ended | Three months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
| Revenue: | ||||||||||||||||
| Revenue | $ | 49,965,790 | $ | 44,649,229 | $ | 18,708,224 | $ | 16,211,008 | ||||||||
| Revenue — related parties | 703,186 | 108,808 | 143,314 | 96,313 | ||||||||||||
| Total revenue | 50,668,976 | 44,758,037 | 18,851,538 | 16,307,321 | ||||||||||||
| Cost of revenue | 45,074,022 | 39,881,655 | 16,407,852 | 14,285,153 | ||||||||||||
| Gross profit | 5,594,954 | 4,876,382 | 2,443,686 | 2,022,168 | ||||||||||||
| General and administrative expenses | 2,153,774 | 1,797,976 | 571,507 | 609,232 | ||||||||||||
| Income from operations | 3,441,180 | 3,078,406 | 1,872,179 | 1,412,936 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 65,516 | 15,539 | 51,266 | (8,916 | ) | |||||||||||
| Interest expense | (191,768 | ) | (189,747 | ) | (60,898 | ) | (52,029 | ) | ||||||||
| Other income (expense) | 16,192 | (23,774 | ) | 3,903 | (27,070 | ) | ||||||||||
| (110,060 | ) | (197,982 | ) | (5,729 | ) | (88,015 | ) | |||||||||
| Income before income taxes | 3,331,120 | 2,880,424 | 1,866,450 | 1,324,921 | ||||||||||||
| Income tax expense | 1,199,203 | 1,080,159 | 671,922 | 496,845 | ||||||||||||
| Net income | $ | 2,131,917 | $ | 1,800,265 | $ | 1,194,528 | $ | 828,076 | ||||||||
| Net income per common share | ||||||||||||||||
| Basic | $ | 0.94 | $ | 0.89 | $ | 0.43 | $ | 0.41 | ||||||||
| Diluted | $ | 0.93 | $ | 0.89 | $ | 0.42 | $ | 0.41 | ||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 2,270,417 | 2,025,000 | 2,761,250 | 2,025,000 | ||||||||||||
| Diluted | 2,290,073 | 2,025,000 | 2,820,220 | 2,025,000 | ||||||||||||
READY MIX, INC.
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS
| September 30, | December 31, | |||||||
| 2005 | 2004 | |||||||
| Assets: | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 14,091,316 | $ | 1,424,629 | ||||
| Accounts receivable, net | 8,117,940 | 6,524,504 | ||||||
| Inventory | 638,872 | 604,558 | ||||||
| Prepaid expenses | 924,437 | 793,017 | ||||||
| Deferred tax asset | 226,269 | 555,472 | ||||||
| Total current assets | 23,998,834 | 9,902,180 | ||||||
| Property and equipment, net | 15,578,573 | 12,503,497 | ||||||
| Refundable deposits | 141,530 | 8,108 | ||||||
| Total assets | $ | 39,718,937 | $ | 22,413,785 | ||||
Liabilities and stockholders’ equity: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,841,062 | $ | 4,043,550 | ||||
| Accrued liabilities | 1,609,552 | 1,246,059 | ||||||
| Notes payable | 2,637,189 | 2,550,884 | ||||||
| Obligations under capital leases | 461,782 | 440,866 | ||||||
| Due to affiliate | 21,233 | 1,379,326 | ||||||
| Intercompany income tax allocation payable | — | 1,298,367 | ||||||
| Total current liabilities | 8,570,818 | 10,959,052 | ||||||
| Notes payable, less current portion | 5,386,346 | 4,626,698 | ||||||
| Obligations under capital leases, less current portion | 374,920 | 723,918 | ||||||
| Deferred tax liability | 1,759,826 | 1,759,826 | ||||||
| Total liabilities | 16,091,910 | 18,069,494 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock — $.001 par value; 5,000,000 shares authorized none issued and outstanding | — | — | ||||||
| Common stock — $.001 par value; 15,000,000 shares authorized, 3,807,500 and 2,025,000 issued and outstanding | 3,808 | 2,025 | ||||||
| Additional paid-in capital | 17,647,011 | 497,975 | ||||||
| Retained earnings | 5,976,208 | 3,844,291 | ||||||
| Total stockholders’ equity | 23,627,027 | 4,344,291 | ||||||
| Total liabilities and stockholders’ equity | $ | 39,718,937 | $ | 22,413,785 | ||||