MVCO Meadow Valley (MM)

Meadow Valley Corporation (NASDAQ:MVCO) today announced a 75.5% increase in net income for the first quarter of 2008 versus the first quarter of 2007, driven by 48.0% growth in construction services revenue. Construction services backlog increased 54.2% to $139.1 million at March 31, 2008 versus backlog of $90.2 million at March 31, 2007. Meadow Valley was awarded approximately $57.2 million in additional construction service contracts in April 2008. "Growth in our construction services revenue and backlog reflects continued strength in public works activity in our market. Increased bonding capacity compared to last year has allowed us to benefit from these market conditions by bidding on, and winning, more work. Our solid gross margin in construction services shows that we have been preparing quality estimates and our project management teams have been effectively focusing on the cost side as we build out the projects day to day. This performance has helped offset housing-related weakness in our construction materials business," said Chief Executive Officer Bradley Larson. First Quarter Results For the three months ended March 31, 2008, consolidated revenue increased 16.4% to $49.7 million compared to $42.6 million for the three months ended March 31, 2007. Construction services revenue increased 48.0% to $33.6 million compared to $22.7 million a year earlier, reflecting scheduled progress on the larger value of highway construction projects underway in the first quarter of 2008 versus the same period last year. Construction materials revenue for the first quarter of 2008 decreased 20.4% to $15.7 million compared to $19.7 million for the first quarter of 2007, primarily reflecting weakness in residential construction in Meadow Valley's primary Phoenix and Las Vegas metropolitan market, and the resulting pressure on average unit sales price as competitors vie for a smaller volume of work. Consolidated gross margin was 7.0% of revenue for the first quarter of 2008 compared to 9.3% for the first quarter of 2007. Construction services gross margin was 10.0% for the first quarter of 2008 compared to 8.4% for the first quarter of 2007. Construction materials gross margin was 0.0% for the first quarter of 2008 compared to 10.7% for the first quarter of 2007. General and administrative expenses decreased to $2.5 million for the first quarter of 2008 compared to $3.0 million for the first quarter 2007. At March 31, 2008, Meadow Valley owned 2,645,212 shares, or approximately 69%, of the outstanding common stock of Ready Mix, Inc. (AMEX:RMX). Accordingly, RMI's operating results are consolidated in Meadow Valley's financial statements for financial reporting purposes. Net income after minority interest for the first quarter of 2008 was $0.9 million, or $0.18 per diluted share. This compares to net income after minority interest for the first quarter of 2007 of $0.5 million, or $0.10 per diluted share. Balance Sheet Highlights At March 31, 2008, Meadow Valley reported working capital of $23.9 million, including cash, cash equivalents and restricted cash of $29.7 million. At December 31, 2007, working capital was $23.0 million, including cash, cash equivalents and restricted cash of $28.5 million. Shareholders' equity increased to $35.7 million at March 31, 2008 compared to $34.5 million at December 31, 2007. Conference�Call Meadow Valley has scheduled a conference call today at 11:00 a.m. EDT. To participate in the call, dial (212) 231-2900 and ask for the Meadow Valley conference call, reservation #21381413. A simultaneous webcast of the conference call may be accessed online at the Investor Information link of www.meadowvalley.com. A replay will be available after 2:00 p.m. EDT at this same Internet address. For a telephone replay, dial (800) 633-8284, reservation # 21381413 after 1:00 p.m. EDT. 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 southern Nevada and Arizona. 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, the timing of new orders and contract awards, the Company's ability to successfully win contract bids, the impact of competitive products and pricing, excess or shortage of production capacity, bonding 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, 2007. 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, except as may be required by law. MEADOW VALLEY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) � � � � Three months ended March 31, � � � � 2008 � � � 2007 � Revenue: � � � � Construction services $ 33,632,729 � $ 22,723,694 � Construction materials 15,690,411 � 19,710,557 � Construction materials testing � 331,950 � � � 214,424 � � � � � � � � � Total revenue � 49,655,090 � � � 42,648,675 � � � � � � � Cost of revenue: � � � � Construction services 30,257,582 � 20,812,675 � Construction materials 15,693,096 � 17,609,543 � Construction materials testing � 224,869 � � � 273,487 � � � � � � � � � Total cost of revenue � 46,175,547 � � � 38,695,705 � � � � � � � Gross profit 3,479,543 � 3,952,970 � � � � � � General and administrative expenses � 2,500,209 � � � 3,016,976 � � � � � � � Income from operations � 979,334 � � � 935,994 � � � � � � � Other income (expense): � � � � Interest income 264,883 � 369,283 � Interest expense (34,696 ) � (78,264 ) � Other income (expense) � (66,971 ) � � 101,705 � � � � � � � � � � � 163,216 � � � 392,724 � Income before income taxes and � � � � minority interest in consolidated subsidiary 1,142,550 � 1,328,718 � � � � � � Income tax expense � (411,264 ) � � (471,793 ) � � � � � � Income before minority � � � � interest in consolidated subsidiary 731,286 � 856,925 � � � � � � Minority interest in consolidated subsidiary � 198,774 � � � (327,031 ) � � � � � � Net income $ 930,060 � � $ 529,894 � � � � � � � Basic net income per common share $ 0.18 � � $ 0.10 � Diluted net income per common share $ 0.18 � � $ 0.10 � � � � � � � Basic weighted average common shares outstanding � 5,149,367 � � � 5,120,296 � Diluted weighted average common shares outstanding � 5,300,838 � � � 5,295,852 � MEADOW VALLEY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS � � � � March 31, � December 31, � 2008 � � 2007 � (Unaudited) Assets: � Current assets: Cash and cash equivalents $ 29,290,354 $ 28,146,028 Restricted cash 375,870 327,886 Accounts receivable, net 37,847,354 28,565,983 Prepaid expenses and other 2,431,319 2,973,664 Inventory, net 1,331,078 1,232,478 Costs and estimated earnings in excess of billings on uncompleted contracts 301,235 567,013 Note receivable 111,932 110,824 Deferred tax asset � 638,163 � � 580,103 � � Total current assets 72,327,305 62,503,979 � Property and equipment, net 35,742,247 36,173,373 Refundable deposits 328,708 186,508 Note receivable, less current portion 396,134 424,536 Claims receivable � 2,463,880 � � 2,463,880 � � Total assets $ 111,258,274 � $ 101,752,276 � � � Liabilities and Stockholders' Equity: � Current liabilities: Accounts payable $ 19,768,275 $ 15,288,168 Accrued liabilities 4,992,249 6,907,633 Notes payable 4,217,637 4,216,498 Obligations under capital leases 76,043 102,100 Income tax payable 456,800 1,770,786 Billings in excess of costs and estimated earnings on uncompleted contracts � 18,959,456 � � 11,248,107 � � Total current liabilities 48,470,460 39,533,292 � Notes payable, less current portion 11,826,360 12,269,017 Obligations under capital leases, less current portion -- -- Deferred tax liability � 2,610,836 � � 2,610,836 � � Total liabilities � 62,907,656 � � 54,413,145 � � Commitments and contingencies � Minority interest in consolidated subsidiary � 12,613,628 � � 12,812,403 � � 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, 5,163,004 and 5,148,404 issued and outstanding 5,163 5,148 Additional paid-in capital 20,602,302 20,322,115 Capital adjustments (799,147 ) (799,147 ) Retained earnings � 15,928,672 � � 14,998,612 � � Total stockholders' equity � 35,736,990 � � 34,526,728 � � Total liabilities and stockholders' equity $ 111,258,274 � $ 101,752,276 �