Exhibit 99.1
| | | | | |
| | Company Contact:
Bradley E. Larson
Chief Executive Officer
www.readymixinc.com | | Investor Contact:
Neil Berkman Associates
(310) 826-5051
info@BerkmanAssociates.com |
| | | FOR IMMEDIATE RELEASE
|
Ready Mix, Inc. Reports Third Quarter Results
LAS VEGAS, NEVADA, November 12, 2008 . . .READY MIX, INC. (RMI) (AMEX:RMX)today announced financial results for the third quarter and first nine months of 2008.
Third Quarter Results
For the three months ended September 30, 2008, revenue decreased 14.4% to $16.4 million, compared to revenue of $19.1 million for the third quarter of 2007. Cubic yards of concrete sold decreased 8.9% for this year’s third quarter compared to the same period of 2007, while average unit sales price decreased 6.5%.
Gross profit decreased to $0.02 million, or 0.1% of revenue, compared to gross profit of $1.1 million, or 5.8% of revenue, a year earlier.
General and administrative expenses decreased 10.2% to $1.0 million, compared to G&A expenses of $1.2 million for the third quarter of 2007.
The net loss for the third quarter of 2008 was $0.6 million, or $0.16 per basic and diluted share. This compares to net income for the third quarter of 2007 of $0.1 million, or $0.02 per basic and diluted share.
“Our third quarter financial results reflect the continuing slump in residential construction in the metropolitan areas of Las Vegas, Nevada and Phoenix, Arizona. The outlook for residential construction in our market remains cloudy. Accordingly, we have redoubled our efforts to reduce costs, including reductions in personnel and overtime and implementation of a fuel surcharge, while enhancing our ability to serve our customers and respond to new business opportunities. We also remain alert to the possibility that scarce credit may affect demand for our ready mix products in the non-residential construction sector, which has held up extraordinarily well so far in this cycle,” said Chief Executive Officer Bradley Larson.
Nine Months Results
For the nine months ended September 30, 2008, revenue decreased 20.6% to $49.2 million, compared to revenue of $62.0 million for the first nine months of 2007. Cubic yards of concrete sold decreased 15.4% for this year’s first nine months compared to the same period of 2007, while average unit sales price decreased 5.9%.
Gross profit decreased to $0.3 million, or 0.6% of revenue, compared to gross profit of $5.6 million, or 9.0% of revenue, a year earlier.
The net loss for the first nine months of 2008 was $1.7 million, or $0.45 per basic and diluted share. This compares to net income for the first nine months of 2007 of $1.6 million, or $0.41 per basic and diluted share.
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4602 East Thomas Road• Phoenix, Arizona 85018• (602) 957-2722• Fax (602) 522-1911
Ready Mix, Inc. Reports Third Quarter Results
November 12, 2008
Page Two
Balance Sheet Highlights
At September 30, 2008, Ready Mix, Inc. reported working capital of approximately $10.6 million, including cash and cash equivalents of $5.6 million, a current ratio of approximately 2.3, and total stockholders’ equity of $27.6 million, or approximately $7.25 per outstanding share. At December 31, 2007, Ready Mix, Inc. reported working capital of approximately $11.8 million, including cash and cash equivalents of $9.2 million, a current ratio of approximately 2.5, and total stockholders’ equity of $29.2 million, or approximately $7.67 per outstanding share.
Conference Call
Ready Mix, Inc. has scheduled a conference call today at 10:00 a.m. EST. To participate in the call, dial (212) 231-2905 and ask for the Ready Mix conference call, reservation #21397155. A simultaneous webcast of the conference call may be accessed online at the Investor Information link of www.readymixinc.com. A replay will be available after 12:00 p.m. EST at this same Internet address. For a telephone replay, dial (800) 633-8284, reservation #21397155 after 12:00 p.m. EST.
About Ready Mix, Inc.
Ready Mix, Inc. (RMI) has provided ready-mix concrete products to the construction industry since 1997. RMI currently operates four ready-mix concrete plants in the metropolitan Phoenix, Arizona area, three plants in the metropolitan Las Vegas, Nevada area, and one plant in Moapa, Nevada. RMI also operates two sand and gravel crushing and screening facilities near Las Vegas, Nevada, which provide raw materials for its Las Vegas and Moapa concrete plants.
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 location 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 Company’s annual report on Form 10-K for the year ended December 31, 2007, and other subsequent filings by the Company with the Securities and Exchange Commission.
(tables attached)
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READY MIX, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three months ended | | | Nine months ended | |
| | | September 30, | | | September 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Revenue: | | | | | | | | | | | | | | | | |
| Revenue | | $ | 16,088,023 | | | $ | 18,705,892 | | | $ | 48,683,689 | | | $ | 60,520,249 | |
| Revenue — related parties | | | 264,632 | | | | 387,221 | | | | 529,674 | | | | 1,438,142 | |
| | | | | | | | | | | | | |
| Total revenue | | | 16,352,655 | | | | 19,093,113 | | | | 49,213,363 | | | | 61,958,391 | |
| | | | | | | | | | | | | | | | | |
| Cost of revenue | | | 16,329,953 | | | | 17,978,564 | | | | 48,909,838 | | | | 56,385,409 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | 22,702 | | | | 1,114,549 | | | | 303,525 | | | | 5,572,982 | |
| | | | | | | | | | | | | | | | | |
| General and administrative expenses | | | 1,037,471 | | | | 1,155,825 | | | | 3,128,390 | | | | 3,464,346 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income (loss) from operations | | | (1,014,769 | ) | | | (41,276 | ) | | | (2,824,865 | ) | | | 2,108,636 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | | | | | |
| Interest income | | | 31,136 | | | | 100,461 | | | | 135,834 | | | | 284,252 | |
| Interest expense | | | (27,094 | ) | | | (28,638 | ) | | | (81,983 | ) | | | (109,596 | ) |
| Other income | | | 61,431 | | | | 87,550 | | | | 74,873 | | | | 228,200 | |
| | | | | | | | | | | | | |
| | | | 65,473 | | | | 159,373 | | | | 128,724 | | | | 402,856 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | | (949,296 | ) | | | 118,097 | | | | (2,696,141 | ) | | | 2,511,492 | |
| | | | | | | | | | | | | | | | | |
| Income tax benefit (expense) | | | 341,747 | | | | (60,349 | ) | | | 970,611 | | | | (957,639 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | (607,549 | ) | | $ | 57,748 | | | $ | (1,725,530 | ) | | $ | 1,553,853 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) per common share | | | | | | | | | | | | | | | | |
| Basic | | $ | (0.16 | ) | | $ | 0.02 | | | $ | (0.45 | ) | | $ | 0.41 | |
| | | | | | | | | | | | | |
| Diluted | | $ | (0.16 | ) | | $ | 0.02 | | | $ | (0.45 | ) | | $ | 0.41 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic weighted average common shares outstanding | | | 3,809,500 | | | | 3,808,848 | | | | 3,809,500 | | | | 3,807,949 | |
| | | | | | | | | | | | | |
| Diluted weighted average common shares outstanding | | | 3,809,500 | | | | 3,832,343 | | | | 3,809,500 | | | | 3,827,344 | |
| | | | | | | | | | | | | |
READY MIX, INC.
CONDENSED BALANCE SHEETS
| | | | | | | | | |
| | | September 30, | | | December 31, | |
| | | 2008 | | | 2007 | |
| | | (Unaudited) | | | | | |
Assets: | | | | | | | | |
| | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 5,632,788 | | | $ | 9,157,868 | |
| Accounts receivable, net | | | 9,216,582 | | | | 7,892,523 | |
| Inventory | | | 1,687,299 | | | | 1,151,926 | |
| Prepaid expenses | | | 905,562 | | | | 1,156,086 | |
| Due from affiliate | | | — | | | | 37,859 | |
| Income tax receivable | | | 939,619 | | | | — | |
| Deferred tax asset | | | 389,741 | | | | 359,396 | |
| | | | | | | |
| | | | | | | | | |
| Total current assets | | | 18,771,591 | | | | 19,755,658 | |
| | | | | | | | | |
| Property and equipment, net | | | 24,708,480 | | | | 26,347,234 | |
| Refundable deposits | | | 144,416 | | | | 176,188 | |
| | | | | | | |
| | | | | | | | | |
| Total assets | | $ | 43,624,487 | | | $ | 46,279,080 | |
| | | | | | | |
| | | | | | | | | |
Liabilities and stockholders’ equity: | | | | | | | | |
| | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 3,338,638 | | | $ | 3,888,856 | |
| Accrued liabilities | | | 1,582,316 | | | | 2,023,403 | |
| Notes payable | | | 3,247,891 | | | | 2,019,192 | |
| Obligations under capital leases | | | — | | | | 4,634 | |
| Due to affiliate | | | 26,704 | | | | — | |
| Income tax payable | | | — | | | | 11,738 | |
| | | | | | | |
| | | | | | | | | |
| Total current liabilities | | | 8,195,549 | | | | 7,947,823 | |
| |
| Notes payable, less current portion | | | 6,500,670 | | | | 7,821,295 | |
| Deferred tax liability | | | 1,290,823 | | | | 1,290,823 | |
| | | | | | | |
| | | | | | | | | |
| Total liabilities | | | 15,987,042 | | | | 17,059,941 | |
| | | | | | | |
| | | | | | | | | |
| 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, 3,809,500 issued and outstanding | | | 3,810 | | | | 3,810 | |
| Additional paid – in capital | | | 18,334,807 | | | | 18,190,971 | |
| Retained earnings | | | 9,298,828 | | | | 11,024,358 | |
| | | | | | | |
| | | | | | | | | |
| Total stockholders’ equity | | | 27,637,445 | | | | 29,219,139 | |
| | | | | | | |
| | | | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 43,624,487 | | | $ | 46,279,080 | |
| | | | | | | |
