EX-99.1 2 v119570_ex99-1.htm
  

TXI REPORTS FOURTH QUARTER AND YEAR-END RESULTS

Dallas, TX - July 10, 2008 - Texas Industries, Inc. (NYSE-TXI) today reported financial results for the quarter and year ended May 31, 2008.

General Comments

“We are extremely pleased to have the new cement plant in California up and running,” stated Mel Brekhus, Chief Executive Officer. “The new plant, which was completed in May, will yield significant efficiencies in energy, labor and repair and maintenance compared to the plant that has been retired. In addition, the expansion of TXI’s cement plant in Central Texas is well under way. That plant is scheduled to begin operations in about 18 months.”

In the Texas market, which accounted for approximately 82% of total TXI revenues in FY08, overall construction activity continued to generate a level of cement consumption that exceeded cement production capacity. California cement consumption trends continued to follow the decline in overall construction activity in that state. As demand for cement has declined in California, imports of cement have fallen as well.

During the quarter ended May 31, 2008, average cement prices declined 3% on a year-over-year basis but sequentially increased 2% compared to the quarter ended February 29, 2008. Both price movements were primarily due to changes in the geographic mix of shipments between the Texas and California markets and product mix shifts within the markets. Cement price increases announced in April for Texas were partially successful. In addition, TXI has announced cement price increases for South and Central Texas of $5 per ton effective July 1, 2008 and announced another $5 per ton increase in both areas effective October 1, 2008.

“Despite increased diesel costs, aggregate and ready-mix operations were able to show marked improvements in financial performance during the fiscal year,” continued Brekhus. “TXI’s strategy to increase cement production and improve operating efficiencies throughout all operations remains our primary focus.”
 
 
** more **

 
Fourth Quarter Ended May 31, 2008

Net sales for the quarter ended May 31, 2008 were up 2% compared to the same period last year. Average realized prices for aggregate and ready-mix concrete products increased 2% and 5%, respectively, while cement prices declined by 3%. Shipments for cement and ready-mix concrete both declined 3% while aggregate shipments declined 2%.

Net income for the quarter ended May 31, 2008 equaled $25.6 million ($.92 per share) while net income for the same period last year totaled $30.1 million ($1.09 per share). Net income for 2008 included after-tax gains from three transactions, discussed in more detail below, totaling $12.0 million ($.43 per share).

Declines in production and increased repair and maintenance costs associated with the old cement plant that has now been replaced in California reduced pre-tax income by approximately $12.9 million compared to the same quarter last year. At TXI’s Texas cement operations, higher energy expenses and planned outage maintenance costs reduced income by $5.2 million and $4.2 million, respectively, while increased diesel costs for aggregate and ready-mix concrete operations reduced pre-tax income by approximately $2.6 million.

Total selling, general and administrative expenses increased by $2.8 million as incentive expenses declined $3.1 million while stock-based compensation, insurance, retirement and other expenses increased. Interest expense increased by $1.9 million as capitalized interest related to the modernization and expansion of the California cement plant was stopped during the quarter with the completion of the project.

Other income increased by $18.8 million compared to last year’s fourth quarter. During the quarter, TXI sold its sand and gravel operations in Southern Louisiana. The transaction resulted in a pretax gain of $10.1 million. The sale consisted of five operations that had combined shipments of approximately 3 million tons in fiscal year 2008. During the same quarter, the Company sold surplus real estate associated with sand and gravel operations in the North Texas region which resulted in a pre-tax gain of $5.1 million and also sold emissions credits related to cement operations in California that resulted in a pre-tax gain of $3.9 million.
 
 
Fiscal Year Ended May 31, 2008

Net sales for fiscal year 2008 were up 3% compared to a year ago. Average realized prices for aggregate and ready-mix concrete products increased 6% and 7%, respectively, while cement prices declined by 2%. Ready-mix concrete shipments increased 5% and cement and aggregate shipments both declined 1%.

Net income for the year ended May 31, 2008 equaled $87.4 million ($3.14 per share). For the same period ended May 31, 2007 net income equaled $100.9 million ($3.80 per share). Net income for 2008 included after-tax gains from the aggregate and emission sale transactions mentioned previously totaling $12.0 million ($.43 per share). Net income for 2007 included an after-tax gain of $12.9 million ($.47 per share) that resulted from the settlement of the U.S. antidumping order on Mexican cement.
 

** more **

- 2 -
 
Declining production and impaired efficiencies associated with the old cement plant in California reduced pre-tax income by approximately $33.6 million during fiscal year 2008 compared to 2007. Higher energy and maintenance outage costs related to Texas cement production reduced pre-tax income by $7.7 million and $9.2 million, respectively, while increased diesel costs for aggregate and ready-mix concrete operations reduced pre-tax income by approximately $6.1 million.

Total selling, general and administrative expenses declined $11.9 million, primarily due to an $8.8 million decline in stock-based compensation and a decline of $11.8 million in incentive expense offset somewhat by increased retirement, insurance and other expense. Interest expense declined $11.6 million as a result of capitalized interest related to cement plant modernization and expansion projects.

Other income declined $5.1 million compared to last year. Fiscal year 2007 other income included $19.8 million in income from distributions relating to the U.S. antidumping settlement on cement imports from Mexico. Fiscal year 2008 other income included gains totaling $19.1 million from the aggregate and emissions sale transactions already mentioned. The remaining difference in other income was primarily due to lower interest income in 2008.

A teleconference will be held today, July 10, 2008 at 1:00 p.m. Central Daylight Time to further discuss year-end results. A real-time webcast of the conference is available by logging on to TXI’s website at www.txi.com.

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 the Company’s business, construction activity in the Company’s markets, abnormal periods of inclement weather, unexpected periods of equipment downtime, changes in costs of raw materials, fuel and energy, the impact of environmental laws, regulations and claims and risks and uncertainties described in the Company’s reports on SEC Forms 10-K, 10-Q and 8-K.

TXI is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregates, ready-mix concrete and concrete products.

 
** more **

- 3 -
 
CONSOLIDATED STATEMENTS OF OPERATIONS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
 
   
Three months ended
 
Year ended
  
   
May 31,
  
May 31,
  
In thousands except per share
  
2008
    
2007
  
2008
  
2007
  
 
  
 
              
NET SALES
  
$
266,392
  
$
261,995
  
$
1,028,854
  
$
996,250
  
                           
Cost of products sold
    
218,331
    
191,063
    
835,019
    
760,160
  
GROSS PROFIT
    
48,061
    
70,932
    
193,835
    
236,090
  
                           
Selling, general and administrative
    
32,256
    
29,425
    
96,220
    
108,106
  
Interest
    
2,505
    
600
    
2,505
    
14,074
  
Other income
    
(23,782
)
  
(4,983
)
  
(31,563
)
  
(36,581
)
     
10,979
    
25,042
    
67,162
    
85,599
  
INCOME BEFORE INCOME TAXES
   
37,082
    
45,890
    
126,673
    
150,491
  
                           
Income taxes
    
11,521
    
15,779
    
39,259
    
49,584
  
NET INCOME
  
$
25,561
  
$
30,111
  
$
87,414
  
$
100,907
  
                           
                           
Net income per share
                          
Basic
  
$
.93
  
$
1.12
  
$
3.19
  
$
4.06
  
Diluted
  
$
.92
  
$
1.09
  
$
3.14
  
$
3.80
  
                           
Average shares outstanding
                          
Basic
    
27,456
    
26,860
    
27,383
    
24,815
  
Diluted
    
27,884
    
27,847
    
27,860
    
27,684
  
                           
Cash dividends per share
  
$
.075
  
$
.075
  
$
.30
  
$
.30
  
                           
                           
Major product shipments
                          
Cement (tons)
    
1,284
    
1,325
    
5,035
    
5,074
  
Stone, sand and gravel (tons)
    
5,427
    
5,553
    
21,851
    
22,114
  
Ready-mix concrete (cubic yards) 
    
939
    
970
    
3,844
    
3,665
  
                           
Major product prices
                          
Cement ($/ton)
  
$
92.46
  
$
95.48
  
$
93.07
  
$
95.06
  
Stone, sand and gravel ($/ton)
    
7.69
    
7.51
    
7.44
    
7.03
  
Ready-mix concrete ($/cubic yard)
    
81.84
    
77.74
    
80.83
    
75.87
  
 
 
 
4
 
 
CONSOLIDATED BALANCE SHEETS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
 
   
May 31,
  
In thousands
  
2008
  
2007
  
           
ASSETS
              
CURRENT ASSETS
              
Cash and cash equivalents 
  
$
39,527
  
$
15,138
  
Receivables - net
    
155,676
    
142,610
  
Inventories
    
130,181
    
121,467
  
Deferred income taxes and prepaid expenses
    
30,398
    
17,621
  
TOTAL CURRENT ASSETS
    
355,782
    
296,836
  
               
OTHER ASSETS
              
Goodwill
    
60,110
    
58,395
  
Real estate and investments
    
59,971
    
111,414
  
Deferred charges and other
    
11,332
    
11,369
  
     
131,413
    
181,178
  
PROPERTY, PLANT AND EQUIPMENT
              
Land and land improvements
    
139,544
    
132,992
  
Buildings
    
56,976
    
41,485
  
Machinery and equipment
    
1,208,905
    
752,531
  
Construction in progress
    
137,083
    
362,646
  
     
1,542,508
    
1,289,654
  
Less depreciation and depletion 
    
514,744
    
505,432
  
     
1,027,764
    
784,222
  
   
$
1,514,959
  
$
1,262,236
  
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
              
CURRENT LIABILITIES
              
Accounts payable
  
$
128,497
  
$
109,749
  
Accrued interest, wages and other
    
47,846
    
57,891
  
Current portion of long-term debt 
    
7,725
    
1,340
  
TOTAL CURRENT LIABILITIES  
    
184,068
    
168,980
  
               
LONG-TERM DEBT
    
401,880
    
274,416
  
               
DEFERRED INCOME TAXES AND OTHER CREDITS
    
112,498
    
90,358
  
               
SHAREHOLDERS’ EQUITY
              
Common stock, $1 par value
    
27,493
    
27,323
  
Additional paid-in capital
    
459,877
    
448,289
  
Retained earnings
    
336,279
    
257,087
  
Accumulated other comprehensive loss
    
(7,136
)
  
(4,217
)
     
816,513
    
728,482
  
   
$
1,514,959
  
$
1,262,236
  
 
- 5 -

CONSOLIDATED STATEMENTS OF CASH FLOWS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
 
   
Year Ended May 31,
  
In thousands
  
2008
  
2007
  
2006
  
               
OPERATING ACTIVITIES
                    
Net income 
  
$
87,414
  
$
100,907
  
$
8,102
  
Adjustments to reconcile net income to cash provided by continuing operating activities
                    
Income from discontinued operations
    
--
   
--
   
(8,691
)
Depreciation, depletion and amortization
    
55,577
    
46,356
    
44,955
  
Gains on asset disposals
    
(19,410
)
  
(2,917
)
  
(34,768
)
Deferred income taxes
    
19,567
    
11,354
    
6,581
  
Stock-based compensation expense
    
2,395
    
13,866
    
4,368
 
Excess tax benefits from stock-based compensation
    
(3,299
)
  
(1,694
)
  
--
 
Loss on debt retirements
    
--
   
48
    
107,006
  
Other - net
    
2,475
    
3,234
    
(4,130
)
Changes in operating assets and liabilities
                    
Receivables - net
    
(29,507
)
  
846
    
(5,060
)
Inventories
    
(8,714
)
  
(18,975
)
  
(18,761
)
Prepaid expenses
    
(2,033
)
  
1,392
    
(47
)
Accounts payable and accrued liabilities
    
(2,910
)
  
31,541
    
(2,186
)
Cash provided by continuing operating activities
    
101,555
    
185,958
    
97,369
  
Cash used by discontinued operating activities
    
--
   
--
   
(7,778
)
Net cash provided by operating activities
    
101,555
    
185,958
    
89,591
  
                     
INVESTING ACTIVITIES
                    
Capital expenditures - expansions
    
(247,552
)
  
(214,878
)
  
(73,384
)
Capital expenditures - other
    
(64,973
)
  
(102,780
)
  
(36,861
)
Cash designated for property acquisitions
    
(28,733
)
  
--
   
--
 
Proceeds from asset disposals
    
34,922
    
5,552
    
23,107
  
Purchases of short-term investments
    
--
   
(8,500
)
  
(50,500
)
Sales of short-term investments
    
--
   
59,000
    
--
 
Investments in life insurance contracts
    
99,203
    
(6,061
)
  
(4,366
)
Other - net
    
101
    
(336
)
  
612
  
Cash used by continuing investing activities
    
(207,032
)
  
(268,003
)
  
(141,392
)
Cash used by discontinued investing activities
    
--
   
--
   
(2,757
)
Net cash used by investing activities
    
(207,032
)
  
(268,003
)
  
(144,149
)
                     
FINANCING ACTIVITIES
                    
Long-term borrowings
    
366,000
    
38,000
    
250,000
  
Debt retirements
    
(232,366
)
  
(25,521
)
  
(600,700
)
Debt issuance costs
    
(2,160
)
  
--
   
(7,363
)
Debt retirement costs
    
--
   
(6
)
  
(96,029
)
Stock option exercises
    
3,315
    
6,394
    
7,510
  
Excess tax benefits from stock-based compensation
    
3,299
    
1,694
    
--
 
Common dividends paid
    
(8,222
)
  
(7,517
)
  
(6,908
)
Cash provided (used) by continuing financing activities
    
129,866
    
13,044
    
(453,490
)
Cash provided by discontinued financing activities
    
--
   
--
   
340,587
  
Net cash provided (used) by financing activities
    
129,866
    
13,044
    
(112,903
)
Increase (decrease) in cash and cash equivalents
    
24,389
    
(69,001
)
  
(167,461
)
                     
Cash and cash equivalents at beginning of year
    
15,138
    
84,139
    
251,600
  
Cash and cash equivalents at end of year
  
$
39,527
  
$
15,138
  
$
84,139
  
 
6
Texas Industries, Inc.
Consolidated Statements of Operations
In $ Thousands
 
       
FY2003
  
FY2004
  
FY2005
  
FY2006
  
FY2007
  
FY2008
  
                       
Q1
 
Q2
 
Q3
  
Q4
  
Total
  
Q1
 
Q2
  
Q3
  
Q4
  
Total
  
                                                               
Shipments 
                                                          
Cement (Thousands of Tons)   
    
4,900
   
5,298
   
5,394
   
5,136
   
1,388
   
1,239
   
1,122
   
1,325
   
5,074
   
1,290
   
1,319
   
1,142
   
1,284
   
5,035
 
Aggregates (Thousands of Tons)   
    
19,003
   
22,282
   
23,616
   
25,246
   
6,461
   
5,573
   
4,527
   
5,553
   
22,114
   
5,551
   
5,863
   
5,010
   
5,427
   
21,851
 
Ready-mix (Thousands of Cubic Yards)   
    
3,513
   
3,562
   
3,678
   
3,830
   
980
   
979
   
736
   
970
   
3,665
   
998
   
1,050
   
857
   
939
   
3,844
 
                                                                                          
Price   
                                                                                      
Cement ($ per Ton)   
    
68.90
   
68.48
   
75.05
   
87.14
   
94.48
   
94.85
   
95.50
   
95.51
   
95.06
   
95.69
   
92.88
   
91.01
   
92.49
   
93.07
 
Aggregates ($ per Ton)   
    
5.55
   
5.43
   
5.68
   
6.08
   
6.61
   
6.83
   
7.30
   
7.51
   
7.03
   
7.17
   
7.39
   
7.52
   
7.69
   
7.44
 
Ready-mix ($ per Cubic Yard)   
    
57.88
   
57.94
   
60.54
   
69.25
   
73.90
   
74.76
   
77.49
   
77.81
   
75.87
   
80.17
   
80.19
   
81.26
   
81.71
   
80.83
 
                                                                                             
Net Sales   
    
-
                                                                               
Cement   
    
337,624
   
362,824
   
404,823
   
447,594
   
131,157
   
117,528
   
107,143
   
126,551
   
482,379
   
123,423
   
122,586
   
103,891
   
118,773
   
468,673
 
Aggregates   
    
105,521
   
120,997
   
134,220
   
153,480
   
42,723
   
38,066
   
33,043
   
41,730
   
155,562
   
39,804
   
43,324
   
37,699
   
41,755
   
162,582
 
Ready-mix   
    
203,349
   
206,394
   
222,680
   
265,254
   
72,442
   
73,142
   
57,007
   
75,476
   
278,067
   
79,990
   
84,233
   
69,699
   
76,730
   
310,652
 
Other    
    
117,810
   
116,108
   
104,847
   
118,555
   
34,473
   
28,196
   
26,048
   
31,081
   
119,798
   
32,175
   
31,375
   
30,155
   
38,901
   
132,606
 
Interplant   
    
(100,478
)
  
(98,353
)
  
(105,576
)
  
(121,127
)
  
(31,478
)
  
(30,046
)
  
(23,890
)
  
(32,992
)
  
(118,406
)
  
(32,432
)
  
(34,750
)
  
(30,488
)
  
(32,791
)
  
(130,461
)
Delivery Fees   
    
54,292
   
59,209
   
73,809
   
80,166
   
22,335
   
18,946
   
17,420
   
20,149
   
78,850
   
20,494
   
21,705
   
19,579
   
23,024
   
84,802
 
Net Sales   
    
718,118
   
767,179
   
834,803
   
943,922
   
271,652
   
245,832
   
216,771
   
261,995
   
996,250
   
263,454
   
268,473
   
230,535
   
266,392
   
1,028,854
 
                                                                                             
Costs and Expenses (Income)   
                                                                                      
Cost of Products Sold   
    
596,737
   
637,347
   
692,414
   
766,941
   
205,338
   
194,057
   
169,702
   
191,063
   
760,160
   
217,437
   
208,271
   
190,980
   
218,331
   
835,019
 
Selling, General and Administrative   
    
70,666
   
74,814
   
78,434
   
88,663
   
21,058
   
30,147
   
27,476
   
29,425
   
108,106
   
22,183
   
21,064
   
20,717
   
32,256
   
96,220
 
Interest    
  
14,827
   
24,102
   
23,533
   
31,155
   
5,542
   
4,643
   
3,289
   
600
   
14,074
   
-
   
-
   
-
   
2,505
   
2,505
 
Loss on Debt Retirements and Spin-off Charges   
          
12,302
   
894
   
113,247
   
-
   
-
   
26
   
22
   
48
   
-
   
-
   
-
         
-
 
Other Income   
    
(4,762
)
  
(40,482
)
  
(22,727
)
  
(47,270
)
  
(3,551
)
  
(24,800
)
  
(3,273
)
  
(5,005
)
  
(36,629
)
  
(2,253
)
  
(3,442
)
  
(2,086
)
  
(23,782
)
  
(31,563
)
           
677,468
   
708,083
   
772,548
   
952,736
   
228,387
   
204,047
   
197,220
   
216,105
   
845,759
   
237,367
   
225,893
   
209,611
   
229,310
   
902,181
 
Income from Continuing Operations    
                                                                                      
Before Income Taxes    
    
40,650
   
59,096
   
62,255
   
(8,814
)
  
43,265
   
41,785
   
19,551
   
45,890
   
150,491
   
26,087
   
42,580
   
20,924
   
37,082
   
126,673
 
                                                                                             
Income Taxes   
    
13,485
   
16,819
   
16,811
   
(8,225
)
  
13,834
   
13,133
   
6,838
   
15,779
   
49,584
   
8,173
   
13,265
   
6,300
   
11,521
   
39,259
 
Income from Continuing Operations    
    
27,165
   
42,277
   
45,444
   
(589
)
  
29,431
   
28,652
   
12,713
   
30,111
   
100,907
   
17,914
   
29,315
   
14,624
   
25,561
   
87,414
 
                                                                                          
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
   
29,431
   
28,652
   
12,713
   
30,111
   
100,907
   
17,914
   
29,315
   
14,624
   
25,561
   
87,414
 
                                                                                          
Cumulative Effect of Accounting Change - net of   
                                                                                      
Income Taxes    
    
-
   
(1,551
)
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Net Income    
    
(24,197
)
  
36,348
   
124,523
   
8,102
   
29,431
   
28,652
   
12,713
   
30,111
   
100,907
   
17,914
   
29,315
   
14,624
   
25,561
   
87,414
 
 
7

Texas Industries, Inc.
Consolidated Balance Sheets
In $ Thousands
 
   
5/31/2004
 
5/31/2005
  
5/31/2006
  
8/31/2006
  
11/30/2006
  
2/28/2007
  
5/31/2007
  
8/31/2007
 
11/30/2007
  
2/29/2008
  
5/31/2008
  
                                               
Cash 
  
133,053
   
251,600
   
84,139
   
66,300
   
83,648
   
20,365
   
15,138
   
5,165
   
26,216
   
9,632
   
39,527
 
Short-term Investments 
  
-
   
-
   
50,606
   
39,122
   
10,012
   
-
   
-
   
-
   
-
             
Accounts Receivable 
  
108,364
   
117,363
   
132,849
   
160,569
   
129,517
   
126,527
   
142,610
   
160,079
   
163,990
   
151,708
   
155,676
 
Inventories 
  
89,373
   
83,291
   
102,052
   
101,330
   
100,929
   
114,751
   
121,467
   
112,517
   
112,824
   
123,735
   
130,181
 
Deferred Income Taxes and Prepaid Expenses 
  
31,553
   
28,754
   
33,599
   
26,820
   
15,475
   
18,779
   
17,621
   
13,047
   
19,785
   
22,482
   
30,398
 
Total Current Assets 
  
362,343
   
481,008
   
403,245
   
394,141
   
339,581
   
280,422
   
296,836
   
290,808
   
322,815
   
307,557
   
355,782
 
                                                                    
Goodwill 
  
61,307
   
61,307
   
58,395
   
58,395
   
58,395
   
58,395
   
58,395
   
58,395
   
60,110
   
60,110
   
60,110
 
Real Estate and Investments 
  
42,430
   
100,200
   
125,913
   
107,604
   
131,513
   
132,884
   
111,414
   
112,217
   
48,037
   
23,834
   
59,971
 
Deferred Income Taxes, Intangibles and Other Charges 
  
39,259
   
27,571
   
22,706
   
22,493
   
22,271
   
16,097
   
11,369
   
12,031
   
12,097
   
11,376
   
11,332
 
Net Assets of Discontinued Operations 
  
798,353
   
836,100
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
    
941,349
   
1,025,178
   
207,014
   
188,492
   
212,179
   
207,376
   
181,178
   
182,643
   
120,244
   
95,320
   
131,413
 
                                                                    
Property, Plant and Equipment 
  
865,133
   
882,816
   
953,474
   
1,015,880
   
1,098,134
   
1,184,578
   
1,289,654
   
1,366,431
   
1,442,445
   
1,484,417
   
1,542,508
 
Accumulated Depreciation 
  
452,324
   
470,163
   
483,163
   
492,569
   
503,070
   
511,406
   
505,432
   
510,881
   
517,557
   
525,274
   
514,744
 
Net Property, Plant and Equipment 
  
412,809
   
412,653
   
470,311
   
523,311
   
595,064
   
673,172
   
784,222
   
855,550
   
924,888
   
959,143
   
1,027,764
 
Total Assets 
  
1,716,501
   
1,918,839
   
1,080,570
   
1,105,944
   
1,146,824
   
1,160,970
   
1,262,236
   
1,329,001
   
1,367,947
   
1,362,020
   
1,514,959
 
                                                                    
Accounts Payable 
  
53,497
   
58,022
   
63,581
   
69,866
   
75,557
   
74,810
   
109,749
   
94,516
   
115,408
   
89,895
   
128,497
 
Accrued Interest, Wages and Other Items 
  
38,833
   
49,449
   
55,059
   
44,662
   
54,371
   
45,354
   
57,891
   
41,710
   
50,568
   
42,754
   
47,846
 
Current Portion of Long Term Debt 
  
699
   
688
   
681
   
680
   
1,475
   
1,475
   
1,340
   
213
   
217
   
221
   
7,725
 
Total Current Liabilities 
  
93,029
   
108,159
   
119,321
   
115,208
   
131,403
   
121,639
   
168,980
   
136,439
   
166,193
   
132,870
   
184,068
 
                                                                    
Long Term Debt 
  
598,412
   
603,126
   
251,505
   
251,507
   
250,358
   
250,358
   
274,416
   
353,585
   
334,517
   
344,438
   
401,880
 
                                                                    
Convertible Subordinated Debentures 
  
199,937
   
199,937
   
159,725
   
159,655
   
159,655
   
92,370
   
-
   
-
   
-
   
-
   
-
 
                                                                    
Deferred Income Taxes and Other Credits 
  
63,139
   
80,050
   
76,955
   
81,204
   
78,186
   
87,987
   
90,358
   
89,400
   
89,014
   
90,274
   
112,498
 
                                                                    
Shareholders Equity 
  
761,984
   
927,567
   
473,064
   
498,370
   
527,222
   
608,616
   
728,482
   
749,577
   
778,223
   
794,438
   
816,513
 
Total Liabilities and Shareholders Equity 
  
1,716,501
   
1,918,839
   
1,080,570
   
1,105,944
   
1,146,824
   
1,160,970
   
1,262,236
   
1,329,001
   
1,367,947
   
1,362,020
   
1,514,959
 
  
   -    
-
   
-
   
-
   
-
               
-
   
-
   
-
   
-
 
 
 
8
 
Texas Industries, Inc.
Consolidated Statements of Cash Flows
In $ Thousands
 
   
FY2003
 
FY2004
  
FY2005
  
FY2006
  
FY2007        
  
FY2008        
  
               
Total
 
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
)
  
29,431
   
28,652
   
12,713
   
30,111
   
100,907
   
17,914
   
29,315
   
14,624
   
25,561
   
87,414
 
Adjustments to Reconcile Income from Continuing
                                                                                      
Operations to Cash Provided (Used) by  
                                                                                      
Continuing Operating Activities 
                                                                                      
                                                                                       
Loss on Debt Retirements 
    
-
   
12,302
   
-
   
107,006
   
-
   
-
   
26
   
22
   
48
   
-
                     
-
 
Loss (Gain) on Asset Disposals 
    
687
   
(37,997
)
  
(6,582
)
  
(34,768
)
  
(490
)
  
(49
)
  
(31
)
  
(2,347
)
  
(2,917
)
  
(455
)
  
(462
)
  
(279
)
  
(18,214
)
  
(19,410
)
Depreciation, Depletion and Amortization 
    
49,196
   
47,409
   
46,474
   
44,955
   
11,172
   
11,112
   
11,572
   
12,500
   
46,356
   
13,318
   
13,846
   
13,816
   
14,597
   
55,577
 
Deferred Income Taxes (Benefit) 
    
(27,726
)
  
319
   
33,811
   
6,581
   
3,777
   
4,734
   
8,319
   
(5,476
)
  
11,354
   
513
   
614
   
3,527
   
14,913
   
19,567
 
Other - Net 
    
6,000
   
5,391
   
8,889
   
7,570
   
(502
)
  
2,482
   
8,174
   
5,252
   
15,406
   
(5,146
)
  
(507
)
  
753
   
6,471
   
1,571
 
Changes in Operating Assets and Liabilities 
                      
-
                           
-
                           
-
 
 Receivables Sold
    
(7,321
)
  
(72,032
)
  
-
   
-
   
-
                     
-
   
-
                     
-
 
 Accounts Receivable - Net
    
(1,258
)
  
1,052
   
(8,873
)
  
(5,060
)
  
(6,218
)
  
9,034
   
1,724
   
(3,694
)
  
846
   
(17,458
)
  
(3,899
)
  
12,312
   
(20,462
)
  
(29,507
)
 Inventories
    
(1,635
)
  
1,664
   
6,082
   
(18,761
)
  
722
   
840
   
(13,821
)
  
(6,716
)
  
(18,975
)
  
8,950
   
(307
)
  
(10,911
)
  
(6,446
)
  
(8,714
)
 Prepaid Expenses
    
2,099
   
(5,744
)
  
(1,680
)
  
63
   
953
   
1,412
   
1,545
   
(2,518
)
  
1,392
   
1,735
   
185
   
286
   
(4,239
)
  
(2,033
)
 Accounts Payable and Accrued Liabilities
    
3,889
   
(3,011
)
  
17,017
   
(12,155
)
  
(2,782
)
  
16,338
   
(15,088
)
  
33,073
   
31,541
   
(5,319
)
  
7,639
   
(18,287
)
  
13,057
   
(2,910
)
 Other Credits
    
2,819
   
7,375
   
3,838
   
2,527
   
-
   
-
   
-
   
-
   
-
   
-
                     
-
 
Cash Provided (Used) by Continuing Operations
    
53,915
   
(995
)
  
144,420
   
97,369
   
36,063
   
74,555
   
15,133
   
60,207
   
185,958
   
14,052
   
46,424
   
15,841
   
25,238
   
101,555
 
                                                                                       
Investing Activities
                                                                                      
Capital Expenditures
    
(32,327
)
  
(15,887
)
  
(46,178
)
  
(110,245
)
  
(64,118
)
  
(83,338
)
  
(88,983
)
  
(81,219
)
  
(317,658
)
  
(103,592
)
  
(71,496
)
  
(66,592
)
  
(70,845
)
  
(312,525
)
Proceeds from Asset Disposals
    
11,258
   
47,243
   
7,136
   
23,107
   
987
   
(212
)
  
186
   
4,591
   
5,552
   
1,288
   
1,078
   
1,562
   
30,994
   
34,922
 
Purchases of Short-term Investments - net
                      
(50,500
)
  
11,500
   
29,000
   
10,000
   
-
   
50,500
   
-
         
-
         
-
 
Investments in Insurance Contracts
    
(713
)
  
(1,162
)
  
(58,798
)
  
(4,366
)
  
(2,402
)
  
(1,872
)
  
(1,014
)
  
(773
)
  
(6,061
)
  
(415
)
  
65,944
   
22,611
   
11,063
   
99,203
 
Other - Net
    
2,961
   
(2,875
)
  
(677
)
  
612
   
297
   
(402
)
  
(20
)
  
(211
)
  
(336
)
  
(24
)
  
79
   
163
   
(28,850
)
  
(28,632
)
Cash Provided (Used) by Investing Activities
    
(18,821
)
  
27,319
   
(98,517
)
  
(141,392
)
  
(53,736
)
  
(56,824
)
  
(79,831
)
  
(77,612
)
  
(268,003
)
  
(102,743
)
  
(4,395
)
  
(42,256
)
  
(57,638
)
  
(207,032
)
                                                                                       
Financing Activities
                                                                                      
Long Term Borrowings
    
366,640
   
718,097
   
-
   
250,000
   
-
   
-
   
-
   
38,000
   
38,000
   
124,000
   
65,000
   
24,000
   
153,000
   
366,000
 
Debt Retirements
    
(371,344
)
  
(592,398
)
  
(699
)
  
(600,700
)
  
(1
)
  
(354
)
  
(930
)
  
(24,236
)
  
(25,521
)
  
(46,173
)
  
(84,064
)
  
(14,076
)
  
(88,053
)
  
(232,366
)
Debt Issuance Costs
    
(1,458
)
  
(16,378
)
  
(39
)
  
(7,363
)
  
-
   
-
   
-
   
-
   
-
   
(944
)
  
(89
)
  
(119
)
  
(1,008
)
  
(2,160
)
Debt Retirement Costs
          
(8,605
)
  
-
   
(96,029
)
  
-
   
-
   
(4
)
  
(2
)
  
(6
)
  
-
                     
-
 
Interest Rate Swap Terminations
          
8,358
   
(6,315
)
  
-
   
-
   
-
   
-
   
-
   
-
   
-
                     
-
 
Stock Option Exercises
    
512
   
2,541
   
41,399
   
7,510
   
752
   
1,091
   
4,133
   
418
   
6,394
   
599
   
131
   
1,948
   
637
   
3,315
 
Common Dividends Paid
    
(6,315
)
  
(6,336
)
  
(6,643
)
  
(6,908
)
  
(1,798
)
  
(1,802
)
  
(1,868
)
  
(2,049
)
  
(7,517
)
  
(2,051
)
  
(2,052
)
  
(2,058
)
  
(2,061
)
  
(8,222
)
Other - Net
    
(1,961
)
  
(26
)
  
-
   
-
   
881
   
682
   
84
   
47
   
1,694
   
3,287
   
96
   
136
   
(220
)
  
3,299
 
Cash Provided (Used) by Financing Activities
    
(13,926
)
  
105,253
   
27,703
   
(453,490
)
  
(166
)
  
(383
)
  
1,415
   
12,178
   
13,044
   
78,718
   
(20,978
)
  
9,831
   
62,295
   
129,866
 
Net Cash Provided (Used) by Continuing Operations
    
21,168
   
131,577
   
73,606
   
(497,513
)
  
(17,839
)
  
17,348
   
(63,283
)
  
(5,227
)
  
(69,001
)
  
(9,973
)
  
21,051
   
(16,584
)
  
29,895
   
24,389
 
                                                                                       
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
)
  
(17,839
)
  
17,348
   
(63,283
)
  
(5,227
)
  
(69,001
)
  
(9,973
)
  
21,051
   
(16,584
)
  
29,895
   
24,389
 
                                                                                       
Beginning Cash and Cash Equivalents
    
12,887
   
2,876
   
133,053
   
251,600
   
84,139
   
66,300
   
83,648
   
20,365
   
84,139
   
15,138
   
5,165
   
26,216
   
9,632
   
15,138
 
Ending Cash and Cash Equivalents
    
2,876
   
133,053
   
251,600
   
84,139
   
66,300
   
83,648
   
20,365
   
15,138
   
15,138
   
5,165
   
26,216
   
9,632
   
39,527
   
39,527
 
 
9
 

Texas Industries, Inc.
Reconciliation of EBITDA to Net Income and Cash Provided (Used) by Continuing Operations
In $ Thousands
 
   
FY2003
  
FY2004
  
FY2005
  
FY2006
  
FY2007
  
FY2008
  
               
Total
  
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
)
  
29,431
   
28,652
   
12,713
   
30,111
   
100,907
   
17,914
   
29,315
   
14,624
   
25,561
   
87,414
 
Plus (minus):
                                                                                      
Interest 
    
14,827
   
24,102
   
23,533
   
31,155
   
5,542
   
4,643
   
3,289
   
600
   
14,074
   
-
   
-
   
-
   
2,505
   
2,505
 
Income Taxes (Benefit) 
    
13,485
   
16,819
   
16,811
   
(8,225
)
  
13,834
   
13,133
   
6,838
   
15,779
   
49,584
   
8,173
   
13,265
   
6,300
   
11,521
   
39,259
 
Depreciation, Depletion & Amortization 
    
49,196
   
47,409
   
46,474
   
44,955
   
11,172
   
11,112
   
11,572
   
12,500
   
46,356
   
13,318
   
13,846
   
13,816
   
14,597
   
55,577
 
Loss on Early Retirement of Debt and Spin-off Charges 
    
-
   
12,302
   
894
   
113,247
   
-
   
-
   
26
   
22
   
48
   
-
   
-
   
-
   
-
   
-
 
EBITDA
    
104,673
   
142,909
   
133,156
   
180,543
   
59,979
   
57,540
   
34,438
   
59,012
   
210,969
   
39,405
   
56,426
   
34,740
   
54,184
   
184,755
 
 
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
   
36,063
   
74,555
   
15,133
   
60,207
   
185,958
   
14,052
   
46,424
   
15,841
   
25,238
   
101,555
 
Plus (minus):
                                                                                      
Changes in Operating Assets and Liabilities 
    
1,407
   
70,696
   
(16,384
)
  
33,386
   
7,325
   
(27,624
)
  
25,640
   
(20,145
)
  
(14,804
)
  
12,092
   
(3,618
)
  
16,600
   
18,090
   
43,164
 
Deferred Taxes (Benefit) 
    
27,726
   
(319
)
  
(33,811
)
  
(6,581
)
  
(3,777
)
  
(4,734
)
  
(8,319
)
  
5,476
   
(11,354
)
  
(513
)
  
(614
)
  
(3,527
)
  
(14,913
)
  
(19,567
)
Income Taxes (Benefit) 
    
13,485
   
16,819
   
16,811
   
(8,225
)
  
13,834
   
13,133
   
6,838
   
15,779
   
49,584
   
8,173
   
13,265
   
6,300
   
11,521
   
39,259
 
Loss (Gain) on Disposal of Assets 
    
(687
)
  
37,997
   
6,582
   
34,768
   
490
   
49
   
31
   
2,347
   
2,917
   
455
   
462
   
279
   
18,214
   
19,410
 
Interest 
    
14,827
   
24,102
   
23,533
   
31,155
   
5,542
   
4,643
   
3,289
   
600
   
14,074
   
-
   
-
   
-
   
2,505
   
2,505
 
Spin-off Charges 
    
-
   
-
   
894
   
6,241
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other - net 
    
(6,000
)
  
(5,391
)
  
(8,889
)
  
(7,570
)
  
502
   
(2,482
)
  
(8,174
)
  
(5,252
)
  
(15,406
)
  
5,146
   
507
   
(753
)
  
(6,471
)
  
(1,571
)
EBITDA
    
104,673
   
142,909
   
133,156
   
180,543
   
59,979
   
57,540
   
34,438
   
59,012
   
210,969
   
39,405
   
56,426
   
34,740
   
54,184
   
184,755
 
 
 
 
10

Texas Industries, Inc.
Business Segment Summary
$Thousands

     
FY2004
    
FY2005
    
FY2006
    
FY2007
  
 FY2008
           
Total
    
Total
    
Q1
    
Q2
    
Q3
    
Q4
    
Total
    
Q1
    
Q2
    
Q3
    
Q4
    
Total
  
Segment Net Sales (Including Delivery Fees)
                                                                                
 Cement
    
383,623
   
431,895
   
471,482
   
137,690
   
122,770
   
111,885
   
132,578
   
504,923
   
129,497
   
129,234
   
110,797
   
126,457
   
495,985
 
 Aggregates
    
206,970
   
225,972
   
256,109
   
75,895
   
65,879
   
60,573
   
71,611
   
273,958
   
71,863
   
75,958
   
68,166
   
78,110
   
294,097
 
 Consumer Products
    
274,939
   
282,512
   
337,458
   
89,545
   
87,229
   
68,203
   
90,798
   
335,775
   
94,526
   
98,031
   
82,060
   
94,616
   
369,233
 
 Eliminations
    
(98,353
)
  
(105,576
)
  
(121,127
)
  
(31,478
)
  
(30,046
)
  
(23,890
)
  
(32,992
)
  
(118,406
)
  
(32,432
)
  
(34,750
)
  
(30,488
)
  
(32,791
)
  
(130,461
)
 Total Net Sales
    
767,179
   
834,803
   
943,922
   
271,652
   
245,832
   
216,771
   
261,995
   
996,250
   
263,454
   
268,473
   
230,535
   
266,392
   
1,028,854
 
                                                                                 
 Operating Profit                                                                                
 Cement
    
66,069
   
82,719
   
110,953
   
40,134
   
50,346
   
36,470
   
45,381
   
172,331
   
17,218
   
33,950
   
24,299
   
26,031
   
101,498
 
 Aggregtates
    
19,047
   
29,902
   
48,339
   
12,582
   
6,832
   
1,320
   
10,517
   
31,251
   
11,660
   
11,085
   
5,304
   
28,043
   
56,092
 
 Consumer Products
    
11,013
   
5,259
   
10,349
   
3,641
   
2,623
   
(1,742
)
  
5,324
   
9,846
   
4,077
   
4,607
   
(481
)
  
3,380
   
11,583
 
 Unallocated Overhead and Other Income
    
26,680
   
(4,307
)
  
(10,181
)
  
(1,911
)
  
(2,877
)
  
(3,257
)
  
(3,683
)
  
(11,728
)
  
(1,734
)
  
(1,746
)
  
(2,624
)
  
(3,863
)
  
(9,967
)
 Total Operating Profit
    
122,809
   
113,573
   
159,460
   
54,446
   
56,924
   
32,791
   
57,539
   
201,700
   
31,221
   
47,896
   
26,498
   
53,591
   
159,206
 
                                                                                 
 Corporate                                                                                
 Selling, General and Administrative
    
(28,658
)
  
(33,272
)
  
(39,110
)
  
(7,747
)
  
(14,522
)
  
(11,359
)
  
(11,566
)
  
(45,194
)
  
(5,809
)
  
(7,379
)
  
(6,119
)
  
(14,585
)
  
(33,892
)
 Interest
    
(24,102
)
  
(23,533
)
  
(31,155
)
  
(5,542
)
  
(4,643
)
  
(3,289
)
  
(600
)
  
(14,074
)
  
-
               
(2,505
)
  
(2,505
)
 Loss on Debt Retirements and Spin-off Charges
    
(12,302
)
  
(894
)
  
(113,247
)
  
-
   
-
   
(26
)
  
(22
)
  
(48
)
  
-
                     
-
 
 Other Income
    
1,349
   
6,381
   
15,238
   
2,108
   
4,026
   
1,434
   
539
   
8,107
   
675
   
2,063
   
545
   
581
   
3,864
 
 Income (loss) from Continuing Operations
    
59,096
   
62,255
   
(8,814
)
  
43,265
   
41,785
   
19,551
   
45,890
   
150,491
   
26,087
   
42,580
   
20,924
   
37,082
   
126,673
 
 before Income Taxes
                                                                                
                                                                                 
 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
   
-
   
-
   
19,803
   
-
   
-
   
-
   
-
   
-
 
 Sale of Southern Louisiana Aggregates Operation
                                                                      
10,093
   
10,093
 
 Cement - Sale of Emissions Credits
                                                                      
3,879
   
3,879
 

11