Exhibit 99.22
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4411 South 40th St., Ste. D11
Phoenix, Arizona 85040 |
| | Telephone: (602) 437-5400 |
| FOR IMMEDIATE RELEASE | | Fax: (602) 437-1681 |
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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 Second Quarter Results
PHOENIX, ARIZONA, August 12, 2004 . . .MEADOW VALLEY CORPORATION (NASDAQ:MVCO)today announced its financial results for the second quarter and first half of 2004.
Second Quarter Results
For the three months ended June 30, 2004, revenue increased 4% to $43.7 million from $42.0 million for the second quarter of 2003. Net income for this year’s second quarter was $0.04 million, or $0.01 per diluted share. This compares to net income for last year’s second quarter of $0.52 million, or $0.14 per diluted share.
First Half Results
For the six months ended June 30, 2004, revenue increased 12% to $82.9 million from $74.2 million for the first half of 2003. Net income for the first six months of 2004 was $0.48 million, or $0.13 per diluted share. This compares to net income for the first six months of 2003 of $0.54 million, or $0.15 per diluted share.
Construction Materials Segment
Revenue from Meadow Valley’s construction materials business increased 23% to $14.8 million for this year’s second quarter compared to $12.1 million for the second quarter of 2003. For the first half, revenue increased 30% to $28.4 million from $21.9 million for the first half of 2003. Gross margin was 10% for this year’s second quarter and first half, compared to gross margin of 11% and 10% for the second quarter and first six months of 2003, respectively.
“We have had to raise prices to accommodate rising costs, but we also added 10 ready-mix trucks to our fleet during this year’s first quarter. Both increased unit sales and prices account for the revenue growth in both periods.” said Bradley E. Larson, chief executive officer.
Construction Services Segment
Revenue from Meadow Valley’s construction services business declined 3% to $28.9 million for this year’s second quarter from $29.9 million for the same period a year ago. For the first six months, revenue increased 4% to $54.4 million from $52.2 million for the first half of 2003. Gross margin was 0.3% for this year’s second quarter and 2.2% for the first half of 2004. This compares to gross margin of 3.8% for the second quarter and 3.8% for the first half of 2003, respectively.
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Meadow Valley Reports Second Quarter Results
August 12, 2004
Page Two
The decrease in gross margin for the second quarter of 2004 compared to the prior year was due to losses recognized on a single project in Utah of approximately $1.2 million and legal fees related to the Clark County arbitration hearing.
Gross margin for the first half benefitted from the net gain of $1.7 million resulting from the $7 million settlement with the New Mexico State Highway and Transportation Department, but was offset by the losses on the Utah project as well as cost overruns and quantity underruns on two other projects.
Backlog
The backlog of heavy construction projects at June 30, 2004 was approximately $67.5 million compared to backlog of approximately $49.5 million at June 30, 2003. In July and August 2004, Meadow Valley was awarded new contracts valued at approximately $9.1 million. As of August 9, 2004, the Company was low bidder on additional contracts valued at approximately $7.3 million that are expected to be awarded this month.
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, Phoenix and Salt Lake City 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.
(tables attached)
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MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Six Months Ended | | Three Months Ended |
| | | June 30,
| | June 30,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
| Revenue: | | | | | | | | | | | | | | | | |
| Construction Services | | $ | 54,435,737 | | | $ | 52,229,216 | | | $ | 28,858,151 | | | $ | 29,866,194 | |
| Construction Materials | | | 28,441,115 | | | | 21,935,244 | | | | 14,849,968 | | | | 12,104,155 | |
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| Total revenue | | | 82,876,852 | | | | 74,164,460 | | | | 43,708,119 | | | | 41,970,349 | |
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| Cost of revenue: | | | | | | | | | | | | | | | | |
| Construction Services | | | 53,223,454 | | | | 50,247,657 | | | | 28,757,428 | | | | 28,733,952 | |
| Construction Materials | | | 25,586,901 | | | | 19,723,753 | | | | 13,348,169 | | | | 10,749,515 | |
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| Total cost of revenue | | | 78,810,355 | | | | 69,971,410 | | | | 42,105,597 | | | | 39,483,467 | |
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| Gross profit | | | 4,066,497 | | | | 4,193,050 | | | | 1,602,522 | | | | 2,486,882 | |
| General and administrative expenses | | | 3,092,056 | | | | 3,110,441 | | | | 1,419,537 | | | | 1,530,775 | |
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| Income from operations | | | 974,441 | | | | 1,082,609 | | | | 182,985 | | | | 956,107 | |
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| Other income (expense): | | | | | | | | | | | | | | | | |
| Interest income | | | 45,979 | | | | 33,651 | | | | 34,032 | | | | 15,900 | |
| Interest expense | | | (195,314 | ) | | | (261,773 | ) | | | (111,028 | ) | | | (153,921 | ) |
| Other income (expense) | | | (66,564 | ) | | | 11,044 | | | | (46,108 | ) | | | 15,999 | |
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| | | | (215,899 | ) | | | (217,078 | ) | | | (123,104 | ) | | | (122,022 | ) |
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| Income before income taxes | | | 758,542 | | | | 865,531 | | | | 59,881 | | | | 834,085 | |
| Income tax expense | | | (283,442 | ) | | | (324,574 | ) | | | (21,444 | ) | | | (312,782 | ) |
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| Net income | | $ | 475,100 | | | $ | 540,957 | | | $ | 38,437 | | | $ | 521,303 | |
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| Basic net income per common share | | $ | 0.13 | | | $ | 0.15 | | | $ | 0.01 | | | $ | 0.14 | |
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| Diluted net income per common share | | $ | 0.13 | | | $ | 0.15 | | | $ | 0.01 | | | $ | 0.14 | |
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| Basic weighted average common shares outstanding | | | 3,601,250 | | | | 3,584,955 | | | | 3,601,250 | | | | 3,601,250 | |
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| Diluted weighted average common shares outstanding | | | 3,739,844 | | | | 3,584,955 | | | | 3,742,934 | | | | 3,601,250 | |
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MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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| | | June 30,
| | December 31,
|
| | | 2004
| | 2003
|
| | | (unaudited) | | (audited) |
Assets: | | | | | | | | |
| Current Assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 5,685,258 | | | $ | 4,738,388 | |
| Restricted cash | | | 1,778,690 | | | | 1,844,891 | |
| Accounts receivable, net | | | 21,820,662 | | | | 20,664,022 | |
| Claims receivable | | | — | | | | 4,101,898 | |
| Prepaid expenses and other | | | 1,692,619 | | | | 2,196,899 | |
| Inventory, net | | | 906,651 | | | | 1,249,118 | |
| Land held for sale | | | — | | | | 264,738 | |
| Costs and estimated earnings in excess of billings on uncompleted contracts | | | 1,275,789 | | | | 1,463,309 | |
| Deferred tax asset | | | 998,033 | | | | 1,243,896 | |
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| Total Current Assets | | | 34,157,702 | | | | 37,767,159 | |
| Property and equipment, net | | | 17,139,123 | | | | 13,127,675 | |
| Refundable deposits | | | 112,692 | | | | 94,299 | |
| Mineral rights and pit development, net | | | 280,576 | | | | 309,110 | |
| Claims receivable | | | 3,521,080 | | | | 3,521,080 | |
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| Total Assets | | $ | 55,211,173 | | | $ | 54,819,323 | |
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Liabilities and Stockholders’ Equity: | | | | | | | | |
| Current Liabilities: | | | | | | | | |
| Accounts payable | | $ | 17,039,705 | | | $ | 18,646,857 | |
| Accrued liabilities | | | 4,248,524 | | | | 4,563,816 | |
| Notes payable | | | 3,477,597 | | | | 3,512,286 | |
| Obligations under capital leases | | | 1,093,492 | | | | 878,280 | |
| Billings in excess of costs and estimated earnings on uncompleted contracts | | | 5,299,775 | | | | 4,955,454 | |
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| Total Current Liabilities | | | 31,159,093 | | | | 32,556,693 | |
| Deferred tax liability | | | 2,643,055 | | | | 2,604,652 | |
| Notes payable, less current portion | | | 7,688,829 | | | | 6,999,729 | |
| Obligations under capital leases, less current portion | | | 1,671,911 | | | | 1,085,064 | |
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| Total Liabilities | | | 43,162,888 | | | | 43,246,138 | |
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| 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 and 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 | | | 1,900,262 | | | | 1,425,162 | |
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| Total Stockholders’ Equity | | | 12,048,285 | | | | 11,573,185 | |
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| Total Liabilities and Stockholders’ Equity | | $ | 55,211,173 | | | $ | 54,819,323 | |
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