EX-99.1 2 v136495_ex99-1.htm
  
Kenneth R. Allen
972.647.6730
Vice President-Finance and
Email:  kallen@txi.com
Chief Financial Officer
 


TXI REPORTS SECOND QUARTER RESULTS AND ANNOUNCES
DELAY OF CENTRAL TEXAS CEMENT PLANT EXPANSION


Dallas, TX – January 8, 2009 – Texas Industries, Inc. (NYSE-TXI) today reported financial results for the quarter ended November 30, 2008.  Net income was $3.9 million ($.14 per share).  Net income for the quarter ended November 30, 2007 was $29.3 million ($1.07 per share).  TXI also announced the delay of its Central Texas cement plant expansion project, beginning in the May 2009 quarter.

General Comments

“The general economy caught up with the state of Texas this fall,” stated Mel Brekhus, Chief Executive Officer.  “In Texas, which accounts for approximately 80% of TXI’s sales, cement consumption declined about 20% this Fall compared to last year.  Cement prices in Texas improved 3% from a year ago and about 1% compared to the summer quarter.  Cement consumption in California continued to decline and cement prices in that market were down 14% from a year ago and 5% compared to the summer quarter.”

“We are in the midst of very challenging times,” added Brekhus.  “TXI is pursuing every opportunity to meet market demand as cost effectively as possible.  The idling of the small kilns at our North Texas plant and the cement grinding operations at our Crestmore facility in California will reduce cash costs while still allowing us to meet the current demand.  Similarly, we are striving to match production to sales throughout all operations.  We have eliminated shifts and reduced overtime at our aggregate facilities and our ready-mix operations did an outstanding job of keeping labor efficiencies high on 27% lower shipments.  All-in-all, the total number of employees has been reduced by 15% since December 2007.”

“It just doesn’t make sense to bring capacity on line at a time when the market clearly does not need it,” Brekhus said about the delay of the Central Texas cement plant expansion.   “We will resume the project once market conditions improve.  The delay is expected to defer $40-60 million in cash payments that would have primarily been made during fiscal year 2010 to complete the project on schedule.”

A teleconference will be held today, January 8, 2009 at 1:00 Central Standard Time to further discuss quarter results.  A real-time webcast of the conference is available by logging on to TXI’s website at www.txi.com.
 

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The following is a summary of operating results for our business segments and certain other operating information related to our principal products.

Cement Operations

   
Three months ended
November 30,
   
Six months ended
November 30,
 
In thousands except per unit
 
2008
   
2007
   
2008
   
2007
 
                         
Operating Results
                       
Total cement sales
  $ 98,407     $ 122,586     $ 209,811     $ 246,009  
Total other sales and delivery fees
     9,641       8,723        19,600        16,435  
Total segment sales
    108,048       131,309       229,411       262,444  
Cost of products sold
     94,206       93,572       198,763       202,679  
Gross profit
    13,842       37,737       30,648       59,765  
Selling, general and administrative
    (5,338 )     (3,941 )     (10,042 )     (8,952 )
Other income
     948       681        6,151        1,505  
Operating Profit
  $ 9,452     $ 34,477     $ 26,757     $ 52,318  
                                 
Cement
                               
Shipments (tons)
    1,083       1,319       2,301       2,609  
Prices ($/ton)
  $ 90.87     $ 92.88     $ 91.17     $ 94.27  
Cost of sales ($/ton)
  $ 79.04     $ 64.41     $ 79.15     $ 71.80  


Through the cement segment we produce and sell gray portland cement as our principal product, as well as specialty cements.

Operating profit for the three-month period ended November 30, 2008 was $9.5 million, a decrease of $25.0 million from the prior year period.

Total cement sales for the three-month period ended November 30, 2008 decreased $24.2 million from the prior year period as construction activity declined in both our Texas and California market areas.  Our Texas market area accounted for approximately 70% of total cement sales in the current period compared to 68% of total cement sales in the prior year period.  In our Texas market area cement shipments decreased 19% from the prior year period and average prices increased 3%.  In our California market area cement shipments decreased 14% from the prior year period and average prices decreased 14%.

Cost of products sold for the three-month period ended November 30, 2008 increased $0.6 million from the prior year period. The effect of lower shipments was offset by higher unit costs.  Cement unit costs increased 23% from the prior year period.  In addition to higher energy costs, scheduled maintenance at our north Texas cement plant of $8.0 million and higher depreciation at our Oro Grande, California cement plant of $3.3 million contributed to increased costs.

Selling, general and administrative expense for the three-month period ended November 30, 2008 increased $1.4 million from the prior year period primarily due to higher legal and other professional expenses.

Other income for the three-month period ended November 30, 2008 increased $0.3 million from the prior year period primarily due to higher oil and gas royalty income.


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Aggregate Operations

   
Three months ended
November 30,
   
Six months ended
November 30,
 
In thousands except per unit
 
2008
   
2007
   
2008
   
2007
 
                         
Operating Results
                       
Total  stone, sand and gravel sales
  $ 35,667     $ 43,324     $ 76,346     $ 83,128  
Total other sales and delivery fees
     24,838       30,559        55,956        60,980  
Total segment sales
    60,505       73,883       132,302       144,108  
Cost of products sold
     50,769       59,610       110,214       114,652  
Gross profit
    9,736       14,273       22,088       29,456  
Selling, general and administrative
    (3,506 )     (3,640 )     (7,329 )     (7,787 )
Other income
     463       237        870        643  
Operating Profit
  $ 6,693     $ 10,870     $ 15,629     $ 22,312  
                                 
Stone, sand and gravel
                               
Shipments (tons)
    4,605       5,863       9,806       11,414  
Prices ($/ton)
  $ 7.74     $ 7.39     $ 7.79     $ 7.28  
Cost of sales ($/ton)
  $ 6.38     $ 5.76     $ 6.33     $ 5.60  
 
 
Through the aggregates segment we produce and sell stone, sand and gravel as our principal products, as well as expanded shale and clay lightweight aggregates.

Operating profit for the three-month period ended November 30, 2008 was $6.7 million, a decrease of $4.2 million from the prior year period as construction activity declined in our market areas.

Total segment sales for the three-month period ended November 30, 2008 decreased $13.4 million from the prior year period as total stone, sand and gravel sales were down $7.7 million.  Total stone, sand and gravel shipments decreased 21% from the prior year period and average prices increased 5%.

Cost of products sold for the three-month period ended November 30, 2008 decreased $8.8 million from the prior year period primarily due to lower shipments.  Stone, sand and gravel unit costs increased primarily due to the impact of production levels on unit costs.

Selling, general and administrative expense for the three-month period ended November 30, 2008 decreased $0.1 million from the prior year period primarily due to lower incentive compensation expense.

Other income for the three-month period ended November 30, 2008 increased $0.2 million from the prior year period primarily due to higher oil and gas income.

 
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Consumer Products Operations

   
Three months ended
November 30,
   
Six months ended
November 30,
 
In thousands except per unit
 
2008
   
2007
   
2008
   
2007
 
                         
Operating Results
                       
Total  ready-mix concrete sales
  $ 64,832     $ 84,233     $ 143,726     $ 164,223  
Total other sales and delivery fees
     15,812       13,798        32,142        28,334  
Total segment sales
    80,644       98,031       175,868       192,557  
Cost of products sold
     76,429       89,839       168,173        175,559  
Gross profit
    4,215       8,192       7,695       16,998  
Selling, general and administrative
    (3,716 )     (3,931 )     (8,031 )     (8,836 )
Other income
     180       346        565        522  
Operating Profit (Loss)
  $ 679     $ 4,607     $ 229     $ 8,684  
                                 
Ready-mix concrete
                               
Shipments (cubic yards)
    769       1,050       1,716       2,048  
Prices ($/cubic yard)
  $ 84.37     $ 80.19     $ 83.78     $ 80.18  
Cost of sales ($/cubic yard)
  $ 81.96     $ 75.18     $ 81.52     $ 74.55  
 
 
Through the consumer products segment we produce and sell ready-mix concrete as our principal product, as well as packaged concrete mix, mortar, sand and related products.

Operating profit for the three-month period ended November 30, 2008 was $0.7 million, a decrease of $3.9 million from the prior year period as construction activity declined in our market areas.

Total segment sales for the three-month period ended November 30, 2008 decreased $17.4 million as total ready-mix concrete sales were down $19.4 million.  Total ready-mix concrete volumes decreased 27% from the prior year period and average prices increased 5%.

 
Cost of products sold for the three-month period ended November 30, 2008 decreased $13.4 million from the prior year period primarily due to lower shipments.  Overall ready-mix concrete unit costs increased 9% from the prior year period primarily due to higher raw material costs, as well as higher distribution and transportation costs.  Our raw material unit costs in the current period increased approximately 7% from the prior year period.  Our cost of diesel fuel per gallon in the current period increased approximately 33% from the prior year period.

Selling, general and administrative expense for the three-month period ended November 30, 2008 decreased $0.2 million from the prior year period primarily due to lower incentive compensation expense.

Other income for the three-month period ended November 30, 2008 decreased $0.2 million from the prior year period as a result of lower gains from the routine sale of surplus operating assets.
 

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Unallocated Overhead and Other Income

   
Three months ended
November 30,
   
Six months ended
November 30,
 
In thousands
 
2008
   
2007
   
2008
   
2007
 
                         
                         
Other income
  $ 60     $ 115     $ 121     $ 287  
Selling, general and administrative
     (2,253 )     (2,173 )      (4,799 )      (4,484 )
    $ (2,193 )   $ (2,058 )   $ (4,678 )   $ (4,197 )


Unallocated overhead and other income relate primarily to certain environmental, engineering and other administrative operating activities not attributable to a specific segment.

Corporate

   
Three months ended
November 30,
   
Six months ended
November 30,
 
In thousands
 
2008
   
2007
   
2008
   
2007
 
                         
                         
Other income
  $ 560     $ 2,063     $ 2,745     $ 2,738  
Selling, general and administrative
     (1,051 )     (7,379 )      (3,001 )     (13,188 )
    $ (491 )   $ (5,316 )   $ (256 )   $ (10,450 )
 

Other income for the three-month period ended November 30, 2008 decreased $1.5 million from the prior year period.  The prior year period includes a gain of $0.8 million from the sale of corporate real estate and a bonus payment of $0.7 million received upon the execution of an oil and gas lease agreement on property formerly owned by us that was not associated with any business segment.

Selling, general and administrative expense for the three-month period ended November 30, 2008 decreased $6.3 million from the prior year period.  The decrease was primarily the result of $1.4 million lower incentive compensation expense and $4.1 million lower stock-based compensation.  Our incentive plans are based on financial performance.  Our stock-based compensation includes awards expected to be settled in cash, the expense for which is based on the average stock price at the end of each period until the awards are paid.  The impact of changes in our stock price reduced stock-based compensation $4.6 million and $0.8 million during three-month periods ended November 30, 2008 and November 30, 2007, respectively.
 
Interest

Interest expense incurred for the three-month period ended November 30, 2008 was $12.5 million, of which $3.2 million was capitalized in connection with our Hunter, Texas cement plant expansion project and $9.3 million was expensed.  Interest expense incurred for the three-month period ended November 30, 2007 was $7.2 million, all of which was capitalized in connection with our Hunter, Texas and Oro Grande, California cement plant expansion projects.

Interest expense incurred for the three-months ended November 30, 2008 increased from the prior year period $5.3 million.  The increase was due to higher average outstanding debt and borrowings on life insurance contracts.


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Income Taxes

Income taxes for the interim periods ended November 30, 2008 and November 30, 2007 have been included in the accompanying financial statements on the basis of an estimated annual rate.  The primary reason that the tax rate differs from the 35% federal statutory corporate rate is due to percentage depletion that is tax deductible, state income taxes and deductions for income from qualified domestic production activities.  Our estimated effective tax rate for fiscal year 2009 is 28.3% compared to 31.2% for fiscal year 2008.
 
Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  Potential risks and uncertainties include, but are not limited to, the impact of competitive pressures and changing economic and financial conditions on our business,  the cyclical and seasonal nature of our business, the level of construction activity in our markets, abnormal periods of inclement weather, unexpected periods of equipment downtime, unexpected operational difficulties, changes in the cost of raw materials, fuel and energy, changes in interest rates, the timing and amount of federal, state and local funding for infrastructure, inability to timely execute announced capacity expansions, ongoing volatility and uncertainty in the capital or credit markets, the impact of environmental laws, regulations and claims and changes in governmental and public policy, and the risks and uncertainties described in our reports on Forms 10-K, 10-Q and 8-K.  Forward-looking statements speak only as of the date hereof, and we assume no obligation to publicly update such statements.

TXI is the largest producer of cement in Texas and a major cement producer in California.  TXI is also a major supplier of construction aggregate, ready-mix concrete and concrete products.
 
 
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CONSOLIDATED BALANCE SHEETS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
 
   
(Unaudited)
November 30,
   
May 31,
 
In thousands
 
2008
   
2008
 
             
ASSETS
           
CURRENT ASSETS
           
Cash and cash equivalents
  $ 62,254     $ 39,527  
Receivables – net
    124,867       155,676  
Inventories
    141,774       130,181  
Deferred income taxes and prepaid expenses
    30,116       30,398  
TOTAL CURRENT ASSETS
    359,011       355,782  
                 
OTHER ASSETS
               
Goodwill
    60,110       60,110  
Real estate and investments
    33,478       59,971  
Deferred charges and other
    15,241       11,332  
      108,829       131,413  
PROPERTY, PLANT AND EQUIPMENT
               
Land and land improvements
    154,692       139,544  
Buildings
    57,032       56,976  
Machinery and equipment
    1,233,454       1,208,905  
Construction in progress
    273,654       137,083  
      1,718,832       1,542,508  
Less depreciation and depletion
    543,043       514,744  
      1,175,789       1,027,764  
    $ 1,643,629     $ 1,514,959  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
CURRENT LIABILITIES
               
Accounts payable
  $ 112,634     $ 128,497  
Accrued interest, wages and other
    47,626       47,846  
Current portion of long-term debt
    234       7,725  
TOTAL CURRENT LIABILITIES
    160,494       184,068  
                 
LONG-TERM DEBT
    539,978       401,880  
                 
DEFERRED INCOME TAXES AND OTHER CREDITS
    108,536       112,498  
                 
SHAREHOLDERS’ EQUITY
               
Common stock, $1 par value
    27,663       27,493  
Additional paid-in capital
    467,250       459,877  
Retained earnings
    346,659       336,279  
Accumulated other comprehensive loss
    (6,951 )     (7,136 )
      834,621       816,513  
    $ 1,643,629     $ 1,514,959  


(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES


   
Three months ended
November 30,
   
Six months ended
November 30,
 
In thousands except per share
 
2008
   
2007
   
2008
   
2007
 
                         
NET SALES
  $ 221,799     $ 268,473     $ 478,191     $ 531,927  
                                 
Cost of products sold
    194,006       208,271       417,760       425,708  
GROSS PROFIT
    27,793       60,202       60,431       106,219  
                                 
Selling, general and administrative
    15,864       21,064       33,202       43,247  
Interest
    9,296       --       16,541       --  
Loss on debt retirements
    --       --       907       --  
Other income
    (2,211 )     (3,442 )     (10,452 )     (5,695 )
      22,949       17,622       40,198       37,552  
INCOME BEFORE  INCOME TAXES
    4,844       42,580       20,233       68,667  
                                 
Income taxes
    991       13,265       5,722       21,438  
NET INCOME
  $ 3,853     $ 29,315     $ 14,511     $ 47,229  
                                 
                                 
Net income per share
                               
Basic
  $ .14     $ 1.07     $ .53     $ 1.73  
Diluted
  $ .14     $ 1.05     $ .52     $ 1.69  
                                 
                                 
Average shares outstanding
                               
Basic
    27,566       27,348       27,536       27,340  
Diluted
    27,782       27,849       27,806       27,873  
                                 
Cash dividends per share
  $ .075     $ .075     $ .15     $ .15  
 

(Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES


   
Six months ended
November 30,
 
In thousands
 
2008
   
2007
 
             
OPERATING ACTIVITIES
           
Net income
  $ 14,511     $ 47,229  
Adjustments to reconcile net income to cash  provided by operating activities
               
Depreciation, depletion and amortization
    34,016       27,164  
Gains on asset disposals
    (427 )     (917 )
Deferred income taxes
    4,052       1,127  
Stock-based compensation expense (credit)
    (7,829 )     (1,325 )
Excess tax benefits from stock-based compensation
    (1,766 )     (3,383 )
Loss on debt retirements
    907       --  
Other – net
    (1,067 )     (945 )
Changes in operating assets and liabilities
               
Receivables – net
    30,074       (21,357 )
Inventories
    (11,593 )     8,643  
Prepaid expenses
    914       1,920  
Accounts payable and accrued liabilities
    (23,454 )     2,320  
Net cash provided by operating activities
    38,338       60,476  
                 
INVESTING ACTIVITIES
               
Capital expenditures – expansions
    (123,420 )     (138,364 )
Capital expenditures – other
    (51,911 )     (36,724 )
Cash designated for property acquisitions
    28,733       --  
Proceeds from asset disposals
    865       2,366  
Investments in life insurance contracts
    2,263       65,529  
Other – net
    175       55  
Net cash used by investing activities
    (143,295 )     (107,138 )
                 
FINANCING ACTIVITIES
               
Long-term borrowings
    327,250       189,000  
Debt retirements
    (197,610 )     (130,237 )
Debt issuance costs
    (3,476 )     (1,033 )
Stock option exercises
    3,885       730  
Excess tax benefits from stock-based compensation
    1,766       3,383  
Common dividends paid
    (4,131 )     (4,103 )
Net cash provided by financing activities
    127,684       57,740  
Increase in cash and cash equivalents
    22,727       11,078  
                 
Cash and cash equivalents at beginning of period
    39,527       15,138  
Cash and cash equivalents at end of period
  $ 62,254     $ 26,216  


Texas Industries, Inc.
Consolidated Statements of Operations
In $ Thousands
 
 
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
           
Q1
Q2
Q3
Q4
Total
Q1
Q2
Q3
Q4
Total
                               
Shipments
                             
Cement (Thousands of Tons)
4,900
5,298
5,394
5,136
5,074
1,290
1,319
1,142
1,284
5,035
1,218
1,083
   
2,301
Aggregates (Thousands of Tons)
19,003
22,282
23,616
25,246
22,114
5,551
5,863
5,010
5,427
21,851
5,201
4,605
   
9,806
Ready-mix (Thousands of Cubic Yards)
3,513
3,562
3,678
3,830
3,665
998
1,050
857
939
3,844
947
769
   
1,716
                               
Price
                             
Cement ($ per Ton)
68.90
68.48
75.05
87.14
95.06
95.69
92.88
91.01
92.49
93.07
91.43
90.87
   
91.17
Aggregates ($ per Ton)
5.55
5.43
5.68
6.08
7.03
7.17
7.39
7.52
7.69
7.44
7.82
7.74
   
7.79
Ready-mix ($ per Cubic Yard)
57.88
57.94
60.54
69.25
75.87
80.17
80.19
81.26
81.71
80.83
83.30
84.37
   
83.78
                               
Net Sales
-
                           
Cement
337,624
362,824
404,823
447,594
482,379
123,423
122,586
103,891
118,773
468,673
111,404
98,407
   
209,811
Aggregates
105,521
120,997
134,220
153,480
155,562
39,804
43,324
37,699
41,755
162,582
40,679
35,667
   
76,346
Ready-mix
203,349
206,394
222,680
265,254
278,067
79,990
84,233
69,699
76,730
310,652
78,894
64,832
   
143,726
Other
117,810
116,108
104,847
118,555
119,798
32,175
31,375
30,155
38,901
132,606
32,275
28,498
   
60,773
Interplant
(100,478)
(98,353)
(105,576)
(121,127)
(118,406)
(32,432)
(34,750)
(30,488)
(32,791)
(130,461)
(31,992)
(27,398)
   
(59,390)
Delivery Fees
54,292
59,209
73,809
80,166
78,850
20,494
21,705
19,579
23,024
84,802
25,132
21,793
   
46,925
Net Sales
718,118
767,179
834,803
943,922
996,250
263,454
268,473
230,535
266,392
1,028,854
256,392
221,799
   
478,191
                               
Costs and Expenses (Income)
                             
Cost of Products Sold
596,737
637,347
692,414
766,941
760,160
217,437
208,271
190,980
218,331
835,019
223,754
194,006
   
417,760
Selling, General and Administrative
70,666
74,814
78,434
88,663
108,106
22,183
21,064
20,717
32,256
96,220
17,338
15,864
   
33,202
Interest
14,827
24,102
23,533
31,155
14,074
-
-
-
2,505
2,505
7,245
9,296
   
16,541
Loss on Debt Retirements and Spin-off Charges
 
12,302
894
113,247
48
-
-
-
 
-
907
     
907
Other Income
(4,762)
(40,482)
(22,727)
(47,270)
(36,629)
(2,253)
(3,442)
(2,086)
(23,782)
(31,563)
(8,241)
(2,211)
   
(10,452)
 
677,468
708,083
772,548
952,736
845,759
237,367
225,893
209,611
229,310
902,181
241,003
216,955
-
-
457,958
                               
Income from Continuing Operations Before Income Taxes
40,650
59,096
62,255
(8,814)
150,491
26,087
42,580
20,924
37,082
126,673
15,389
4,844
-
-
20,233
                               
Income Taxes
13,485
16,819
16,811
(8,225)
49,584
8,173
13,265
6,300
11,521
39,259
4,731
991
   
5,722
Income from Continuing Operations
27,165
42,277
45,444
(589)
100,907
17,914
29,315
14,624
25,561
87,414
10,658
3,853
-
-
14,511
                               
                               
Income (Loss) from Discontinued Operations - net of Income Taxes
(51,362)
(4,378)
79,079
8,691
-
       
-
       
-
Income (Loss) before Accounting Change
(24,197)
37,899
124,523
8,102
100,907
17,914
29,315
14,624
25,561
87,414
10,658
3,853
-
-
14,511
                               
Cumulative Effect of Accounting Change - net of Income Taxes
-
(1,551)
-
-
-
-
-
-
-
-
-
-
-
-
-
Net Income
(24,197)
36,348
124,523
8,102
100,907
17,914
29,315
14,624
25,561
87,414
10,658
3,853
-
-
14,511
 

Texas Industries, Inc.
Consolidated Balance Sheets
In $ Thousands
 
 
5/31/2004
5/31/2005
5/31/2006
5/31/2007
8/31/2007
11/30/2007
2/29/2008
5/31/2008
 
8/31/2008
11/30/2008
2/28/2009
5/31/2009
                           
Cash
133,053
251,600
84,139
15,138
5,165
26,216
9,632
39,527
 
118,548
62,254
   
Short-term Investments
-
-
50,606
-
-
-
             
Accounts Receivable
108,364
117,363
132,849
142,610
160,079
163,990
151,708
155,676
 
140,703
124,867
   
Inventories
89,373
83,291
102,052
121,467
112,517
112,824
123,735
130,181
 
142,695
141,774
   
Deferred Income Taxes and Prepaid Expenses
31,553
28,754
33,599
17,621
13,047
19,785
22,482
30,398
 
28,449
30,116
   
Total Current Assets
362,343
481,008
403,245
296,836
290,808
322,815
307,557
355,782
 
430,395
359,011
-
-
                           
Goodwill
61,307
61,307
58,395
58,395
58,395
60,110
60,110
60,110
 
60,110
60,110
   
Real Estate and Investments
42,430
100,200
125,913
111,414
112,217
48,037
23,834
59,971
 
34,720
33,478
   
Deferred Income Taxes, Intangibles and Other Charges
39,259
27,571
22,706
11,369
12,031
12,097
11,376
11,332
 
13,907
15,241
   
Net Assets of Discontinued Operations
798,353
836,100
-
-
-
-
-
-
         
 
941,349
1,025,178
207,014
181,178
182,643
120,244
95,320
131,413
 
108,737
108,829
-
-
                           
Property, Plant and Equipment
865,133
882,816
953,474
1,289,654
1,366,431
1,442,445
1,484,417
1,542,508
 
1,624,749
1,718,832
   
Accumulated Depreciation
452,324
470,163
483,163
505,432
510,881
517,557
525,274
514,744
 
527,243
543,043
   
Net Property, Plant and Equipment
412,809
412,653
470,311
784,222
855,550
924,888
959,143
1,027,764
 
1,097,506
1,175,789
-
-
Total Assets
1,716,501
1,918,839
1,080,570
1,262,236
1,329,001
1,367,947
1,362,020
1,514,959
 
1,636,638
1,643,629
-
-
                           
Accounts Payable
53,497
58,022
63,581
109,749
94,516
115,408
89,895
128,497
 
123,221
112,634
   
Accrued Interest, Wages and Other Items
38,833
49,449
55,059
57,891
41,710
50,568
42,754
47,846
 
33,881
47,626
   
Current Portion of Long Term Debt
699
688
681
1,340
213
217
221
7,725
 
229
234
   
Total Current Liabilities
93,029
108,159
119,321
168,980
136,439
166,193
132,870
184,068
 
157,331
160,494
-
-
                           
Long Term Debt
598,412
603,126
251,505
274,416
353,585
334,517
344,438
401,880
 
539,195
539,978
   
                           
Convertible Subordinated Debentures
199,937
199,937
159,725
-
-
-
-
-
 
-
-
-
-
                           
Deferred Income Taxes and Other Credits
63,139
80,050
76,955
90,358
89,400
89,014
90,274
112,498
 
111,187
108,536
   
                           
Shareholders Equity
761,984
927,567
473,064
728,482
749,577
778,223
794,438
816,513
 
828,925
834,621
   
Total Liabilities and Shareholders Equity
1,716,501
1,918,839
1,080,570
1,262,236
1,329,001
1,367,947
1,362,020
1,514,959
 
1,636,638
1,643,629
-
-
 

Texas Industries, Inc.
Consolidated Statements of Cash Flows
In $ Thousands
 
 
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
           
Q1
Q2
Q3
Q4
Total
Q1
Q2
Q3
Q4
Total
CONTINUING OPERATIONS
                             
Operating Activities
                             
Income from Continuing Operations
27,165
42,277
45,444
(589)
100,907
17,914
29,315
14,624
25,561
87,414
10,658
3,853
-
-
14,511
Adjustments to Reconcile Income from Continuing Operations to Cash Provided (Used) by Continuing Operating Activities
                             
                               
Loss on Debt Retirements
-
12,302
-
107,006
48
-
     
-
907
     
907
Loss (Gain) on Asset Disposals
687
(37,997)
(6,582)
(34,768)
(2,917)
(455)
(462)
(279)
(18,214)
(19,410)
(280)
(147)
   
(427)
Depreciation, Depletion and Amortization
49,196
47,409
46,474
44,955
46,356
13,318
13,846
13,816
14,597
55,577
16,865
17,151
   
34,016
Deferred Income Taxes (Benefit)
(27,726)
319
33,811
6,581
11,354
513
614
3,527
14,913
19,567
2,543
1,509
   
4,052
Other - Net
6,000
5,391
8,889
7,570
15,406
(5,146)
(507)
753
6,471
1,571
(6,278)
(4,384)
   
(10,662)
Changes in Operating Assets and Liabilities
     
-
-
       
-
       
-
Receivables Sold
(7,321)
(72,032)
-
-
-
-
     
-
       
-
Accounts Receivable - Net
(1,258)
1,052
(8,873)
(5,060)
846
(17,458)
(3,899)
12,312
(20,462)
(29,507)
14,269
15,805
   
30,074
Inventories
(1,635)
1,664
6,082
(18,761)
(18,975)
8,950
(307)
(10,911)
(6,446)
(8,714)
(12,515)
922
   
(11,593)
Prepaid Expenses
2,099
(5,744)
(1,680)
63
1,392
1,735
185
286
(4,239)
(2,033)
1,366
(452)
   
914
Accounts Payable and Accrued Liabilities
3,889
(3,011)
17,017
(12,155)
31,541
(5,319)
7,639
(18,287)
13,057
(2,910)
(16,920)
(6,534)
   
(23,454)
Other Credits
2,819
7,375
3,838
2,527
-
-
     
-
-
     
-
Cash Provided (Used) by Continuing Operations
53,915
(995)
144,420
97,369
185,958
14,052
46,424
15,841
25,238
101,555
10,615
27,723
-
-
38,338
                               
Investing Activities
                             
Capital Expenditures
(32,327)
(15,887)
(46,178)
(110,245)
(317,658)
(103,592)
(71,496)
(66,592)
(70,845)
(312,525)
(88,736)
(86,595)
   
(175,331)
Proceeds from Asset Disposals
11,258
47,243
7,136
23,107
5,552
1,288
1,078
1,562
30,994
34,922
512
353
   
865
Purchases of Short-term Investments - net
     
(50,500)
50,500
-
 
-
 
-
       
-
Investments in Insurance Contracts
(713)
(1,162)
(58,798)
(4,366)
(6,061)
(415)
65,944
22,611
11,063
99,203
1,464
799
   
2,263
Other - Net
2,961
(2,875)
(677)
612
(336)
(24)
79
163
(28,850)
(28,632)
27,150
1,758
   
28,908
Cash Provided (Used) by Investing Activities
(18,821)
27,319
(98,517)
(141,392)
(268,003)
(102,743)
(4,395)
(42,256)
(57,638)
(207,032)
(59,610)
(83,685)
-
-
(143,295)
                               
Financing Activities
                             
Long Term Borrowings
366,640
718,097
-
250,000
38,000
124,000
65,000
24,000
153,000
366,000
327,250
     
327,250
Debt Retirements
(371,344)
(592,398)
(699)
(600,700)
(25,521)
(46,173)
(84,064)
(14,076)
(88,053)
(232,366)
(197,555)
(55)
   
(197,610)
Debt Issuance Costs
(1,458)
(16,378)
(39)
(7,363)
-
(944)
(89)
(119)
(1,008)
(2,160)
(2,306)
(1,170)
   
(3,476)
Debt Retirement Costs
 
(8,605)
-
(96,029)
(6)
-
     
-
       
-
Interest Rate Swap Terminations
 
8,358
(6,315)
-
-
-
     
-
       
-
Stock Option Exercises
512
2,541
41,399
7,510
6,394
599
131
1,948
637
3,315
1,480
2,405
   
3,885
Common Dividends Paid
(6,315)
(6,336)
(6,643)
(6,908)
(7,517)
(2,051)
(2,052)
(2,058)
(2,061)
(8,222)
(2,065)
(2,066)
   
(4,131)
Other - Net
(1,961)
(26)
-
-
1,694
3,287
96
136
(220)
3,299
1,212
554
   
1,766
Cash Provided (Used) by Financing Activities
(13,926)
105,253
27,703
(453,490)
13,044
78,718
(20,978)
9,831
62,295
129,866
128,016
(332)
-
-
127,684
Net Cash Provided (Used) by Continuing Operations
21,168
131,577
73,606
(497,513)
(69,001)
(9,973)
21,051
(16,584)
29,895
24,389
79,021
(56,294)
-
-
22,727
                               
DISCONTINUED OPERATIONS
                             
Cash Provided (Used) by Discontinued Operating Activities
(5,797)
12,668
73,104
(7,778)
-
       
-
       
-
Cash Used by Discontinued Investing Activities
(23,265)
(14,068)
(28,163)
(2,757)
-
       
-
       
-
Cash Used by Discontinued Financing Activities
(2,117)
-
-
340,587
-
       
-
       
-
Net Cash Provided (Used) by Discontinued Operations
(31,179)
(1,400)
44,941
330,052
-
-
-
-
-
-
-
-
-
-
-
Increase (Decrease) in Cash and Cash Equivalents
(10,011)
130,177
118,547
(167,461)
(69,001)
(9,973)
21,051
(16,584)
29,895
24,389
79,021
(56,294)
-
-
22,727
                               
Beginning Cash and Cash Equivalents
12,887
2,876
133,053
251,600
84,139
15,138
5,165
26,216
9,632
15,138
39,527
118,548
   
39,527
Ending Cash and Cash Equivalents
2,876
133,053
251,600
84,139
15,138
5,165
26,216
9,632
39,527
39,527
118,548
62,254
-
-
62,254
 

Texas Industries, Inc.
Reconciliation of EBITDA to Net Income and Cash Provided (Used) by Continuing Operations
In $ Thousands
 
 
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
       
FY2009
       
           
Q1
Q2
Q3
Q4
Total
Q1
Q2
Q3
Q4
Total
EBITDA Defined
                             
Net Income (Loss) from Continuing Operations
27,165
42,277
45,444
(589)
100,907
17,914
29,315
14,624
25,561
87,414
10,658
3,853
-
-
14,511
Plus (minus):
                             
Interest
14,827
24,102
23,533
31,155
14,074
-
-
-
2,505
2,505
7,245
9,296
-
-
16,541
Income Taxes (Benefit)
13,485
16,819
16,811
(8,225)
49,584
8,173
13,265
6,300
11,521
39,259
4,731
991
-
-
5,722
Depreciation, Depletion & Amortization
49,196
47,409
46,474
44,955
46,356
13,318
13,846
13,816
14,597
55,577
16,865
17,151
-
-
34,016
Loss on Early Retirement of Debt and Spin-off Charges
-
12,302
894
113,247
48
-
-
-
-
-
907
-
-
-
907
EBITDA
104,673
142,909
133,156
180,543
210,969
39,405
56,426
34,740
54,184
184,755
40,406
31,291
-
-
71,697
                               
EBITDA represents income from continuing operations before interest, income taxes, depreciation and amortization, and loss on early retirement of debt
             
EBITDA is presented because we believe it is a useful indicator of our performance and our ability to meet debt service and capital expenditure requirements.
             
It is not, however, intended as an alternative measure of operating results or cash flow from operations as determined in accordance with generally accepted accounting principles.
             
EBITDA is not necessarily comparable to similarly titled measures used by other companies.
             
                               
EBITDA Reconciliation
                             
Cash from Continuing Operating Activities
53,915
(995)
144,420
97,369
185,958
14,052
46,424
15,841
25,238
101,555
10,615
27,723
-
-
38,338
Plus (minus):
                             
Changes in Operating Assets and Liabilities
1,407
70,696
(16,384)
33,386
(14,804)
12,092
(3,618)
16,600
18,090
43,164
13,800
(9,741)
-
-
4,059
Deferred Taxes (Benefit)
27,726
(319)
(33,811)
(6,581)
(11,354)
(513)
(614)
(3,527)
(14,913)
(19,567)
(2,543)
(1,509)
-
-
(4,052)
Income Taxes (Benefit)
13,485
16,819
16,811
(8,225)
49,584
8,173
13,265
6,300
11,521
39,259
4,731
991
-
-
5,722
Loss (Gain) on Disposal of Assets
(687)
37,997
6,582
34,768
2,917
455
462
279
18,214
19,410
280
147
-
-
427
Interest
14,827
24,102
23,533
31,155
14,074
-
-
-
2,505
2,505
7,245
9,296
-
-
16,541
Spin-off Charges
-
-
894
6,241
-
-
-
-
-
-
-
-
-
-
-
Other - net
(6,000)
(5,391)
(8,889)
(7,570)
(15,406)
5,146
507
(753)
(6,471)
(1,571)
6,278
4,384
-
-
10,662
EBITDA
104,673
142,909
133,156
180,543
210,969
39,405
56,426
34,740
54,184
184,755
40,406
31,291
-
-
71,697
 

Texas Industries, Inc.
Business Segment Summary
$ Thousands
 
 
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
         
Q1
Q2
Q3
Q4
Total
Q1
Q2
Q3
Q4
Total
                             
Segment Net Sales (Including Delivery Fees)
                           
Cement
383,623
431,895
471,482
504,923
129,497
129,234
110,797
126,457
495,985
121,363
108,048
   
229,411
Aggregates
206,970
225,972
256,109
273,958
71,863
75,958
68,166
78,110
294,097
71,797
60,505
   
132,302
Consumer Products
274,939
282,512
337,458
335,775
94,526
98,031
82,060
94,616
369,233
95,224
80,644
   
175,868
Eliminations
(98,353)
(105,576)
(121,127)
(118,406)
(32,432)
(34,750)
(30,488)
(32,791)
(130,461)
(31,992)
(27,398)
   
(59,390)
Total Net Sales
767,179
834,803
943,922
996,250
263,454
268,473
230,535
266,392
1,028,854
256,392
221,799
-
-
478,191
                             
Operating Profit
                           
Cement
66,069
82,719
110,953
172,331
17,218
33,950
24,299
26,031
101,498
17,305
9,452
   
26,757
Aggregtates
19,047
29,902
48,339
31,251
11,660
11,085
5,304
28,043
56,092
8,936
6,693
   
15,629
Consumer Products
11,013
5,259
10,349
9,846
4,077
4,607
(481)
3,380
11,583
(450)
679
   
229
Unallocated Overhead and Other Income-Net
26,680
(4,307)
(10,181)
(11,728)
(1,734)
(1,746)
(2,624)
(3,863)
(9,967)
(2,485)
(2,193)
   
(4,678)
Total Operating Profit
122,809
113,573
159,460
201,700
31,221
47,896
26,498
53,591
159,206
23,306
14,631
-
-
37,937
                             
Corporate
                           
Selling, General and Administrative
(28,658)
(33,272)
(39,110)
(45,194)
(5,809)
(7,379)
(6,119)
(14,585)
(33,892)
(1,950)
(1,051)
   
(3,001)
Interest
(24,102)
(23,533)
(31,155)
(14,074)
-
   
(2,505)
(2,505)
(7,245)
(9,296)
   
(16,541)
Loss on Debt Retirements and Spin-off Charges
(12,302)
(894)
(113,247)
(48)
-
     
-
(907)
     
(907)
Other Income
1,349
6,381
15,238
8,107
675
2,063
545
581
3,864
2,185
560
   
2,745
Income (loss) from Continuing Operations before Income Taxes
59,096
62,255
(8,814)
150,491
26,087
42,580
20,924
37,082
126,673
15,389
4,844
-
-
20,233
                             
Major Gains (Losses) in Other Income
                           
Unallocated Overhead - Sale of Brick Assets
34,710
-
-
-
-
-
-
-
-
-
-
-
-
-
Aggregates - Sale of Emissions Credits
-
6,225
-
-
-
-
-
-
-
       
-
Aggregates - Sale of Real Estate
-
-
23,987
-
-
-
-
5,146
5,146
       
-
Cement - Cement Antidumping Settlement
-
-
-
19,803
-
-
-
-
-
       
-
Sale of Southern Louisiana Aggregates Operation
             
10,093
10,093
       
-
Cement - Sale of Emissions Credits
             
3,879
3,879
       
-
Corporate - Oil and Gas Bonus Payment
                 
1,636
       
Cement - Oil and Gas Bonus Payment
                 
2,781
       
 
Please note:  Starting with the quarter ending August 2008, we report cement treated material operations and transportation overhead activities, both of which are not significant to operating profit, in our cement segment.  Cement treated material operations were previously reported in our aggregate segment.  Our transportation overhead activities were previously reported as a part of unallocated overhead and other income-net.  The historical quarterly financial data above has not been altered to reflect these reclassifications pending the reclassification for all quarters of FY 2008.  The data below is consistent with the reclassification implemented August 2008.
 
 
FY2008
FY2009
 
Q1
Q2
Q3
Q4
Total
Q1
Q2
Q3
Q4
Total
                     
Segment Net Sales (Including Delivery Fees) as Reclassified August 2008
                   
Cement
131,135
131,309
   
262,444
121,363
108,048
   
229,411
Aggregates
70,225
73,883
   
144,108
71,797
60,505
   
132,302
                     
Operating Profit as Reclassified August 2008
                   
Cement
17,841
34,477
   
52,318
17,305
9,452
   
26,757
Aggregates
11,442
10,870
   
22,312
8,936
6,693
   
15,629
Unallocated Overhead and Other Income-Net
(2,139)
(2,058)
   
(4,197)
(2,485)
(2,193)
   
(4,678)