Exhibit 99.25
 | 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 | ||||