Building Trades Organizing Project
4151 E. Bonzana Road
Las Vegas, Nevada 89119
Tel. (702) 452-8600
Fax. (702) 453-1837
For immediate release: Friday, October 30, 1998
Contact: David M. Fishlow (702) 531-1603
After hours: 252-4467 - Cell-phone 524-9071
CLARIFICATION TO PREVIOUS RELEASE CONCERNING RESTATEMENT OF 10K'S
BY MEADOW VALLEY CORPORATION
Las Vegas, October 30 -- On October 13, we announced that Meadow
Valley Corporation had filed amendments to its 10-K reports for
the 3 previous years containing information about the Company's
transactions with related parties (its officers and directors and
businesses connected to them and their family members).
We did not intend to suggest the Company had previously kept
such transactions completely secret: rather, for the years 1995,
1996 and 1997, the company had only disclosed that it had
transactions with "a related party" (or similar language),
without providing the parties' name (with the exception of
revealing that legal services were provided by director Agron).
The amendments revealed these "related parties" were all
businesses controlled by the Company's Chief Operating Officer or
his family members. Of the approximate total we gave of $16
million in related-party transactions, the majority of that
occurred prior to 1995, as to which identities had been disclosed
in the Company's 10/95 prospectus.
The amended 10-K's revised upwards the dollar amounts
previously reported for the 1995-97 transactions. The 1996 10-K
originally reported $381,381 paid related parties for work,
materials, or rented or purchased equipment. The recent amendment
now shows a total of $539,333 for that year. Similarly, what was
originally reported as $19,352 for 1997 for work, materials or
equipment was restated to $90,914.
Our release stated the balance due on the Company's 12.5%
note to the Lewis family trust was $3.5 million, but the latest
reported balance was $2,000,000.
