Business Segments

6 Months Ended

Nov. 30, 2013

Text Block [Abstract]

Business Segments

Business Segments

We have three business segments: cement, aggregates and concrete. Our business segments are managed separately along product lines. Through the cement segment we produce and sell gray portland cement as our principal product, as well as specialty cements. Through the aggregates segment we produce and sell stone, sand and gravel as our principal products. Previously, the aggregates segment included our expanded shale and clay lightweight aggregates which has been classified as discontinued operations in the prior period. Through the concrete segment we produce and sell ready-mix concrete as our principal product. We account for intersegment sales at market prices. Segment operating profit consists of net sales less operating costs and expenses. Corporate includes those administrative, financial, legal, human resources, environmental and real estate activities which are not allocated to operations and are excluded from segment operating profit. Identifiable assets by segment are those assets that are used in each segment’s operation. Corporate assets consist primarily of cash and cash equivalents, real estate and other financial assets not identified with a business segment. The following is a summary of operating results and certain other financial data for our business segments relating to continuing operations, and does not include information pertaining to discontinued operations.

	Three months ended						Six months ended
	November 30,			November 30,			November 30,			November 30,
In thousands	2013			2012			2013			2012
Net sales
Cement
Sales to external customers	$	85,093		$	80,991		$	182,580		$	168,118
Intersegment sales	17,270			10,452			34,531			20,530
Aggregates
Sales to external customers	30,637			33,899			67,763			69,299
Intersegment sales	11,923			6,313			23,955			11,894
Concrete
Sales to external customers	93,163			52,803			191,631			104,799
Intersegment sales	8			62			60			111
Eliminations	(29,202		)	(16,827		)	(58,546		)	(32,535		)
Total net sales	$	208,892		$	167,693		$	441,974		$	342,216
Segment operating profit (loss)
Cement	$	3,694		$	6,057		$	17,687		$	14,479
Aggregates	5,390			3,520			11,977			7,518
Concrete	(1,504		)	(2,607		)	4,614			(4,515		)
Total segment operating profit	7,580			6,970			34,278			17,482
Corporate	(7,672		)	(10,359		)	(16,399		)	(20,626		)
Interest	(17,423		)	(7,457		)	(34,794		)	(15,235		)
Loss before income taxes	$	(17,515	)	$	(10,846	)	$	(16,915	)	$	(18,379	)
Depreciation, depletion and amortization
Cement	$	13,077		$	8,429		$	26,120		$	16,893
Aggregates	2,882			3,347			6,073			6,674
Concrete	3,387			1,981			6,805			3,847
Corporate	222			229			464			446
Total depreciation, depletion and amortization	$	19,568		$	13,986		$	39,462		$	27,860
Capital expenditures
Cement	$	6,793		$	11,052		$	16,415		$	40,785
Aggregates	2,021			2,278			2,681			2,601
Concrete	1,351			351			2,801			2,246
Corporate	1,757			645			2,523			1,019
Total capital expenditures	$	11,922		$	14,326		$	24,420		$	46,651
Net sales by product
Cement	$	77,586		$	72,169		$	164,753		$	149,404
Aggregates	19,999			21,428			43,684			43,997
Concrete	93,448			52,712			191,632			104,582
Other products	1,929			2,648			5,617			5,515
Delivery fees	15,930			18,736			36,288			38,718
Total net sales	$	208,892		$	167,693		$	441,974		$	342,216

All sales were made in the United States during the periods presented with no single customer representing more than ten percent of sales.

Capital expenditures for normal replacement and upgrades of existing equipment and acquisitions to sustain existing operations were $17.3 million and $10.8 million in the six-month periods ended November 30, 2013 and 2012, respectively.

Capital expenditures in connection with the expansion of our Hunter, Texas cement plant for the six-month period ended November 30, 2013 were $7.1 million consisting solely of interest paid that was capitalized in the prior year period ended May 31, 2013. Capital expenditures incurred in connection with the expansion of our Hunter, Texas cement plant were $36.1 million in the six-month period ended November 30, 2012, of which $18.4 million was capitalized interest paid.

The following is a summary of assets used in each of our business segments.

In thousands	November 30, 2013		May 31, 2013
Identifiable assets
Cement	$	1,154,910	$	1,174,879
Aggregates	158,688		168,255
Concrete	191,439		182,839
Corporate	128,054		109,852
Total assets	$	1,633,091	$	1,635,825

All of our identifiable assets are located in the United States.