Exhibit 99.23
4411 South 40th St., Ste. D11
Phoenix, Arizona 85040
FOR IMMEDIATE RELEASE | Telephone: (602) 437-5400 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 Third Quarter Results
PHOENIX, ARIZONA, November 11, 2004 . . .MEADOW VALLEY CORPORATION (NASDAQ:MVCO)today announced financial results for the third quarter and first nine months of 2004.
Third Quarter Results
For the three months ended September 30, 2004, revenue decreased 1.7% to $42.1 million from $42.8 million for the third quarter of 2003. The net loss for this year’s third quarter was $0.4 million, or $0.12 per diluted share. This compares to a net loss for last year’s third quarter of $0.1 million, or $0.03 per diluted share.
Nine Month Results
For the nine months ended September 30, 2004, revenue increased 6.8% to $125.0 million from $117.0 million for the first nine months of 2003. Net income for the first nine months of 2004 was $0.05 million, or $0.01 per diluted share. This compares to net income for the first nine months of 2003 of $0.44 million, or $0.12 per diluted share.
Construction Materials Segment
Revenue from Meadow Valley’s construction materials business increased 47.2% to $16.2 million for this year’s third quarter compared to $11.0 million for the third quarter of 2003. For the first nine months, revenue increased 35.5% to $44.7 million from $33.0 million for the first nine months of 2003. Gross margin was 12.5% for this year’s third quarter and 10.9% for the first nine months, compared to gross margin of 8.2% and 9.4% for the third quarter and first nine months of 2003, respectively.
“Our Construction Materials segment continued to perform well in the third quarter, posting solid revenue growth and profitability for the period. Unit volume increased by approximately 37.0% for the quarter, reflecting the addition of 10 ready mix trucks to our fleet earlier in the year, and the average unit sales price increased approximately 8.6%, as we were able to pass along to our customers an increase in the cost of cement. During the third quarter we began our plans to improve a site in Southwest Las Vegas to expand our footprint in this core market, and acquired the parcel of land now occupied by our operation in Southeast Phoenix, establishing a permanent location for this facility,” said Bradley E. Larson, chief executive officer.
Construction Services Segment
Revenue from Meadow Valley’s construction services business declined 18.7% to $25.9 million for this year’s third quarter from $31.8 million for the same period a year ago. For the first nine months, revenue declined 4.4% to $80.3 million from $84.1 million for the first nine months of 2003. Gross margin was negative 4.2% for this year’s third quarter and 0.2% for the first nine months of 2004. This compares to gross margin of 1.6% for the third quarter and 3.0% for the first nine months of 2003, respectively.
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Meadow Valley Reports Third Quarter Results
November 11, 2004
Page Two
During the third quarter the Company recognized additional losses on a single project in Utah of approximately $2.6 million, which had the effect of reducing gross margin for the construction services segment. Year to date, losses recognized on this project total $3.8 million.
Backlog
The backlog of heavy construction projects at September 30, 2004 was approximately $103.6 million compared to backlog of approximately $71.7 million at September 30, 2003. Backlog at September 30, 2004 includes approximately $27.0 million of work that is scheduled for completion during 2004.
“The increase in backlog is an encouraging sign for the future. It is unfortunate that the poor performance of the single project in Utah is masking the solid performance of our other heavy construction projects,” Larson said.
Claims Update
Larson said that the Company is continuing to pursue its claims on the remaining two projects in New Mexico, as well as the claim involving a project for the Clark County Department of Public Works in Las Vegas. Earlier this year, a partial ruling by a majority of the three-member arbitration panel rejected a significant portion of the Clark County claim that was primarily asserted by a subcontractor. On November 1, 2004 a final ruling by the arbitration panel awarded Meadow Valley approximately $5.46 million, of which $2.1 million is due the Company and the balance is due a subcontractor. Because Clark County may appeal the decision of the arbitration panel, no adjustment was made to the Company’s estimate of the value of the outstanding Clark County claim reported on its balance sheet at September 30, 2004.
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 while the Company’s construction materials operations provide concrete, gravel products and asphalt to itself and to other contractors. The Company’s current 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 onForm 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.
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MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended | Three Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Revenue: | ||||||||||||||||
Construction Services | $ | 80,320,938 | $ | 84,053,359 | $ | 25,885,201 | $ | 31,824,143 | ||||||||
Construction Materials | 44,659,716 | 32,957,202 | 16,218,601 | 11,021,958 | ||||||||||||
Total revenue | 124,980,654 | 117,010,561 | 42,103,802 | 42,846,101 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Construction Services | 80,194,016 | 81,571,237 | 26,970,562 | 31,323,580 | ||||||||||||
Construction Materials | 39,783,334 | 29,845,344 | 14,196,433 | 10,121,591 | ||||||||||||
Total cost of revenue | 119,977,350 | 111,416,581 | 41,166,995 | 41,445,171 | ||||||||||||
Gross profit | 5,003,304 | 5,593,980 | 936,807 | 1,400,930 | ||||||||||||
General and administrative expenses | 4,686,023 | 4,981,158 | 1,593,967 | 1,870,717 | ||||||||||||
Income (loss) from operations | 317,281 | 612,822 | (657,160 | ) | (469,787 | ) | ||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 48,038 | 46,962 | 2,059 | 13,311 | ||||||||||||
Interest expense | (259,700 | ) | (382,622 | ) | (64,386 | ) | (120,849 | ) | ||||||||
Other income (expense) | (28,795 | ) | 433,019 | 37,769 | 421,975 | |||||||||||
(240,457 | ) | 97,359 | (24,558 | ) | 314,437 | |||||||||||
Income (loss) before income taxes | 76,824 | 710,181 | (681,718 | ) | (155,350 | ) | ||||||||||
Income tax benefit (expense) | (28,809 | ) | (266,318 | ) | 254,633 | 58,256 | ||||||||||
Net income (loss) | $ | 48,015 | $ | 443,863 | $ | (427,085 | ) | $ | (97,094 | ) | ||||||
Net income (loss) per common share | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.12 | $ | (0.12 | ) | $ | (0.03 | ) | ||||||
Diluted | $ | 0.01 | $ | 0.12 | $ | (0.12 | ) | $ | (0.03 | ) | ||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 3,601,250 | 3,590,386 | 3,601,250 | 3,601,250 | ||||||||||||
Diluted | 3,744,830 | 3,590,386 | 3,754,801 | 3,601,250 | ||||||||||||
MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, | December 31, | |||||||
2004 | 2003 | |||||||
Assets: | (Unaudited) | |||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 7,028,667 | $ | 4,738,388 | ||||
Restricted cash | 1,710,917 | 1,844,891 | ||||||
Accounts receivable, net | 19,148,415 | 20,664,022 | ||||||
Claims receivable | — | 4,101,898 | ||||||
Prepaid expenses and other | 2,941,418 | 2,196,899 | ||||||
Inventory, net | 830,186 | 1,249,118 | ||||||
Land held for sale | — | 264,738 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 667,257 | 1,463,309 | ||||||
Deferred tax asset | 1,253,767 | 1,243,896 | ||||||
Total Current Assets | 33,580,627 | 37,767,159 | ||||||
Property and equipment, net | 17,903,426 | 13,127,675 | ||||||
Refundable deposits | 33,947 | 94,299 | ||||||
Mineral rights and pit development, net | 266,310 | 309,110 | ||||||
Claims receivable | 3,521,080 | 3,521,080 | ||||||
Total Assets | $ | 55,305,390 | $ | 54,819,323 | ||||
Liabilities and Stockholders’ Equity: | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 16,748,914 | $ | 18,646,857 | ||||
Accrued liabilities | 5,724,779 | 4,563,816 | ||||||
Notes payable | 4,489,919 | 3,512,286 | ||||||
Obligations under capital leases | 536,632 | 878,280 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 4,368,639 | 4,955,454 | ||||||
Total Current Liabilities | 31,868,883 | 32,556,693 | ||||||
Deferred tax liability | 2,643,055 | 2,604,652 | ||||||
Notes payable, less current portion | 8,058,922 | 6,999,729 | ||||||
Obligations under capital leases, less current portion | 1,113,330 | 1,085,064 | ||||||
Total Liabilities | 43,684,190 | 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 | 1,473,177 | 1,425,162 | ||||||
Total Stockholders’ Equity | 11,621,200 | 11,573,185 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 55,305,390 | $ | 54,819,323 | ||||