EXHIBIT 99.18
[MEADOW VALLEY CORPORATION LOGO]
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 SECOND QUARTER RESULTS
PHOENIX, ARIZONA, August 13, 2003 . . . MEADOW VALLEY CORPORATION
(NASDAQ:MVCO) announced today that net income for the second quarter ended June
30, 2003 was $0.52 million, or $0.14 per diluted share, on revenue of $41.97
million. This compares to net income of $0.39 million, or $0.11 per diluted
share, for the second quarter of 2002 on revenue of $41.98 million.
For the six months ended June 30, 2003, net income was $0.54 million,
or $0.15 per diluted share, compared to $0.41 million, or $0.12 per diluted
share, for the first six months of 2002. Revenue for this year's first half was
$74.16 million compared to $76.98 million for the same period last year.
SECOND QUARTER OPERATIONS REVIEW
Revenue from Meadow Valley's construction materials business increased
31% to $12.10 million for the second quarter of 2003 compared to $9.21 million
last year. Gross margin in this segment was 11.2% compared to 10.6% a year
earlier. Revenue from the company's construction services business declined to
$29.87 million from $32.76 million. However, gross margin increased to 3.8% from
3.5% for the same period last year. Overall gross margin for this year's second
quarter was 5.9% compared to 5.0% for last year's second quarter.
"We are gratified by the continued rapid growth and solid profitability
of our construction materials business, as well as by the increase in gross
margin in our construction services business. These are encouraging signs for
Meadow Valley's future," said Bradley E. Larson, chief executive officer.
BACKLOG
The backlog of heavy construction projects at June 30, 2003 increased
to $49.5 million compared to backlog of $47.7 million at June 30, 2002.
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 contracting services specialize in structural concrete
construction of highway bridges and overpasses, and the paving of highways and
airport runways while the Company's 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 on Form 10-K for the year
ended December 31, 2002. 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)
#3370
MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------ ------------------------------
2003 2002 2003 2002
---- ---- ---- ----
Revenue:
Construction Services $ 29,866,194 $ 32,762,104 $ 52,229,216 $ 59,391,151
Construction Materials 12,104,155 9,214,113 21,935,244 17,590,199
------------ ------------ ------------ ------------
Total revenue 41,970,349 41,976,217 74,164,460 76,981,350
------------ ------------ ------------ ------------
Cost of revenue:
Construction Services 28,733,952 31,617,737 50,247,657 57,420,766
Construction Materials 10,749,515 8,238,863 19,723,753 15,798,593
------------ ------------ ------------ ------------
Total cost of revenue 39,483,467 39,856,600 69,971,410 73,219,359
------------ ------------ ------------ ------------
Gross profit 2,486,882 2,119,617 4,193,050 3,761,991
General and administrative expenses 1,530,775 1,395,788 3,110,441 2,924,065
------------ ------------ ------------ ------------
Income from operations 956,107 723,829 1,082,609 837,926
------------ ------------ ------------ ------------
Other income (expense):
Interest income 15,900 28,165 33,651 53,817
Interest expense (153,921) (106,722) (261,773) (208,060)
Other income (expense) 15,999 (16,866) 11,044 (22,786)
------------ ------------ ------------ ------------
(122,022) (95,423) (217,078) (177,029)
------------ ------------ ------------ ------------
Income before income taxes 834,085 628,406 865,531 660,897
Income tax expense (312,782) (235,652) (324,574) (247,836)
------------ ------------ ------------ ------------
Net income $ 521,303 $ 392,754 $ 540,957 $ 413,061
============ ============ ============ ============
Basic net income per common share $ 0.14 $ 0.11 $ 0.15 $ 0.12
============ ============ ============ ============
Diluted net income per common share $ 0.14 $ 0.11 $ 0.15 $ 0.12
============ ============ ============ ============
Weighted average
common shares outstanding
Basic 3,601,250 3,559,938 3,584,955 3,559,938
============ ============ ============ ============
Diluted 3,601,250 3,559,938 3,584,955 3,559,938
============ ============ ============ ============
MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2003 2002
ASSETS: (Unaudited)
Current Assets:
Cash and cash equivalents $ 4,018,773 $ 3,289,535
Restricted cash 1,330,657 1,681,361
Accounts receivable, net 24,013,446 21,203,373
Claims receivable -- 387,878
Prepaid expenses and other 800,272 1,573,614
Inventory, net 2,003,201 2,103,100
Land held for sale 711,531 711,531
Costs and estimated earnings in excess of billings on uncompleted contracts 653,935 1,543,061
------------ ------------
Total Current Assets 33,531,815 32,493,453
Property and equipment, net 13,329,306 14,555,646
Refundable deposits 67,854 50,604
Mineral rights and pit development, net 416,529 445,063
Claims receivable, less current portion 7,622,978 7,961,107
Other assets -- 32,223
------------ ------------
Total Assets $ 54,968,482 $ 55,538,096
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts payable $ 18,014,162 $ 19,912,516
Accrued liabilities 4,377,586 3,697,111
Notes payable 3,272,723 3,424,209
Obligations under capital leases 857,037 921,306
Billings in excess of costs and estimated earnings on uncompleted contracts 5,699,703 3,733,152
------------ ------------
Total Current Liabilities 32,221,211 31,688,294
Deferred tax liability 1,588,757 1,265,045
Notes payable, less current portion 7,726,469 9,256,598
Obligations under capital leases, less current portion 1,438,641 1,875,712
------------ ------------
Total Liabilities 42,975,078 44,085,649
------------ ------------
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 3,559,938 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 1,845,381 1,304,424
------------ ------------
Total Stockholders' Equity 11,993,404 11,452,447
------------ ------------
Total Liabilities and Stockholders' Equity $ 54,968,482 $ 55,538,096
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