Ready Mix Inc (RMX) filed Quarterly Report for the period ended 2009-09-30.
Ready Mix, Inc. has provided ready-mix concrete products to the construction industry since 1997. RMI currently operates ready-mix concrete plants in the metropolitan Phoenix area, plants in the metropolitan Las Vegas area, and a plant in Moapa, Nevada. The Company also operates a sand and gravel crushing and screening facility in Moapa, which provides raw materials for its Las Vegas and Moapa concrete plants. Ready Mix Inc has a market cap of $12.2 million; its shares were traded at around $3.21 with and P/S ratio of 0.2.
Highlight of Business Operations:
We are required to estimate our income taxes in each jurisdiction in which we operate. This process requires us to estimate the actual current tax exposure together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes. These temporary differences result in deferred tax assets and liabilities on our balance sheets. We must calculate the blended tax rate, combining all applicable tax jurisdictions, which can vary over time as a result of the allocation of taxable income between the tax jurisdictions and the changes in tax rates. We must also assess the likelihood that the deferred tax assets, if any, will be recovered from future taxable income and, to the extent recovery is not likely, must establish a valuation allowance. As of September 30, 2009, we had total deferred tax assets of $2.2 million with no valuation allowance and total deferred tax liabilities of $1.2 million. For presentation purposes, the accompanying financial statements and notes thereto, indicate that non-current deferred tax assets and liabilities have been offset against each other resulting in a current deferred tax asset of $.7 million and a non-current deferred tax asset of $.2 million. The deferred tax asset does not contain a valuation allowance as we believe we will be able to utilize the deferred tax asset through future taxable income.
General and Administrative Expenses. General and administrative expenses decreased to $2.5 million for interim 2009 from $3.1 million for interim 2008. The $.6 million decrease resulted primarily from a decrease in
Interest Income and Expense. Interest income decreased to $11.5 thousand for interim 2009 from $135.8 thousand for interim 2008. The decrease in interest income was primarily due to declining interest rates earned and the decrease in the amount of our invested cash reserves. Interest expense decreased in interim 2009 to $77.5 thousand compared to $82.0 thousand for interim 2008. Interest expense associated with assets used to generate revenue is included in cost of revenue. The interest included in the cost of revenue during interim 2009 was $.3 million compared to $.5 million for interim 2008. The decrease in interest expense was related to the payoff of debt associated with plant real property and our revolving line of credit.
Depreciation and Amortization. Depreciation and amortization expense decreased $.1 million, or 10.8%, to $1.1 million for 3rd quarter 2009 from $1.2 million in 3rd quarter 2008.
General and Administrative Expenses. General and administrative expenses decreased to $.7 million for 3rd quarter 2009 from $1.0 million in 3rd quarter 2008. The $.3 million decrease resulted primarily from a decrease in administrative salaries, wages, accrued bonuses, related payroll taxes and benefits, legal expenses, bad debt expenses and sales, marketing and advertising expenses, offset by increases in public company related expenses.
Interest Income and Expense. Interest income decreased to $2.2 thousand for 3rd quarter 2009 from $31.1 thousand for 3rd quarter 2008. The decrease in interest income was primarily due to declining interest rates earned and the decrease in the amount of our invested cash reserves. Interest expense decreased slightly to $25.7 thousand in 3rd quarter 2009 from $27.1 thousand in 3rd quarter 2008. Interest expense associated with assets used to generate revenue is included in cost of revenue. The interest included in the cost of revenue during 3rd quarter 2009 was $.1 million compared to $.2 million for 3rd quarter 2008.
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