updated 3/23/2011 5:47:52 PM ET 2011-03-23T21:47:52

DALLAS, March 23, 2011 (GLOBE NEWSWIRE) -- Texas Industries, Inc. (NYSE:TXI) today reported financial results for the quarter ended February 28, 2011. Results for the quarter were a net loss of $20.9 million or $.75 per share. Results for the quarter ended February 28, 2010 were a net loss of $27.1 million or $.98 per share.

General Comments

"Shipments were up compared to the same period a year ago," stated Mel Brekhus, Chief Executive Officer. "However, since we had abnormally inclement weather in both periods, we will not know how much of the increase is attributable to improved market conditions until we see the extent of the weather related rebound in our fourth quarter."

"We continue to focus on meeting market demand as cost effectively as possible," added Brekhus. "We resumed construction of TXI's central Texas cement plant expansion last quarter and that project is proceeding as planned."

A teleconference will be held tomorrow, March 24, 2011 at 10:00 Central Daylight 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 .

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

 February 28,
 Nine months ended

 February 28,
In thousands except per unit  2011  2010  2011  2010
         
Operating Results        
Total cement sales  $ 54,018  $ 52,322  $ 183,307  $ 192,508
Total other sales and delivery fees    6,144   5,296    21,815    18,489
Total segment sales 60,162 57,618 205,122 210,997
Cost of products sold    70,010  70,616   203,194  198,834
Gross profit (loss) (9,848) (12,998) 1,928 12,163
Selling, general and administrative (3,286) (3,715) (12,097) (12,748)
Other income    696    411     3,643     6,824
Operating Profit (Loss)  $ (12,438)  $ (16,302)  $ (6,526)  $ 6,239
         
Cement        
Shipments (tons) 704 639 2,361 2,292
Prices ($/ton)  $76.75  $81.82  $77.64  $83.96
Cost of sales ($/ton)  $90.43  $101.70  $77.67  $78.96

Three months ended February 28, 2011

Cement operating loss for the three-month periods ended February 28, 2011 and February 28, 2010 was $12.4 million and $16.3 million, respectively. Higher shipments offset in part by lower sales prices increased total sales $2.5 million from the prior year period.

Total segment sales for the three-month period ended February 28, 2011 were $60.2 million compared to $57.6 million for the prior year period. Cement sales increased $1.7 million from the prior year period as construction activity has remained at low levels in both our Texas and California market areas. Our Texas market area accounted for approximately 72% of cement sales in the current period compared to 73% of cement sales in the prior year period. Average cement prices decreased 7% in our Texas market area and 5% in our California market area. Shipments increased 9% in our Texas market area and 13% in our California market area.

Cost of products sold for the three-month period ended February 28, 2011 decreased $0.6 million from the prior year period. The effect of higher shipments was offset by lower energy and raw material costs and the effect of higher clinker production. Cement unit costs decreased 11% from the prior year period. 

Selling, general and administrative expense for the three-month period ended February 28, 2011 decreased $0.4 million from the prior year period. The decrease was primarily due to lower provisions for bad debts and defined benefit plan expense.

Other income for the three-month period ended February 28, 2011 increased $0.3 million from the prior year period. The increase was primarily due to higher gains from routine sales of surplus operating assets.

Aggregate Operations

   Three months ended

 February 28,
 Nine months ended

 February 28,
In thousands except per unit  2011  2010  2011  2010
         
Operating Results        
Total stone, sand and gravel sales  $ 18,212  $ 14,849  $ 67,449  $ 62,860
Total other sales and delivery fees    16,692   14,410   58,507   52,787
Total segment sales  34,904  29,259  125,956  115,647
Cost of products sold    32,323   28,882   110,735   100,038
Gross profit 2,581 377 15,221 15,609
Selling, general and administrative (2,679) (1,937) (8,552) (7,131)
Other income    16    409     1,706     1,239
Operating Profit (Loss)  $ (82)  $ (1,151)  $ 8,375  $ 9,717
         
Stone, sand and gravel        
Shipments (tons) 2,470 1,947 9,080 8,012
Prices ($/ton)  $7.38  $7.62  $7.43  $7.85
Cost of sales ($/ton)  $7.23  $8.41  $6.69  $7.04

Three months ended February 28, 2011

Aggregate operating loss for the three-month periods ended February 28, 2011 and February 28, 2010 was $0.1 million and $1.2 million, respectively. 

Total segment sales for the three-month period ended February 28, 2011 were $34.9 million compared to $29.3 million for the prior year period. Stone, sand and gravel sales increased $3.4 million from the prior year period on 27% higher shipments and 3% lower average prices.

Cost of products sold for the three-month period ended February 28, 2011 increased $3.4 million from the prior year period primarily due to higher shipments. Stone, sand and gravel unit costs decreased 14% from the prior year period primarily due to the effect of higher shipments on unit costs.

Selling, general and administrative expense for the three-month period ended February 28, 2011 increased $0.7 million from the prior year period primarily due to higher provisions for casualty insurance claims.

Other income for the three-month period ended February 28, 2011 decreased $0.4 million from the prior year period primarily due to lower gains from routine sales of surplus operating assets.

Consumer Products Operations

   Three months ended

 February 28,
 Nine months ended

 February 28,
In thousands except per unit  2011  2010  2011  2010
         
Operating Results        
Total ready-mix concrete sales  $ 34,351 $ 33,695  $ 129,834  $ 129,468
Total other sales and delivery fees    10,998  10,832   38,813   39,050
Total segment sales  45,349 44,527  168,647  168,518
Cost of products sold    47,443  45,203   166,982   158,610
Gross profit (loss) (2,094) (676) 1,665 9,908
Selling, general and administrative (2,607) (1,421) (8,330) (7,374)
Other income    66    115     398     516
Operating Profit (Loss)  $ (4,635) $ (1,982)  $ (6,267)  $ 3,050
         
Ready-mix concrete        
Shipments (cubic yards) 471 427 1,715 1,540
Prices ($/cubic yard)  $72.83  $79.17  $75.66  $84.12
Cost of sales ($/cubic yard)  $80.71  $84.35  $77.97  $81.48

Three months ended February 28, 2011

Consumer products operating loss for the three-month periods ended February 28, 2011 and February 28, 2010 was $4.6 million and $2.0 million, respectively. Reduced margins due to lower sales prices increased operating loss from the prior year period.

Total segment sales for the three-month period ended February 28, 2011 were $45.3 million compared to $44.5 million for the prior year period. Ready-mix concrete sales for the three-month period ended February 28, 2011 increased $0.7 million from the prior year period on 8% lower average prices and 10% higher shipments. 

Cost of products sold for the three-month period ended February 28, 2011 increased $2.2 million from the prior year period primarily due to higher shipments. Ready-mix concrete unit costs decreased 4% from the prior year period primarily due to the effect of higher shipments and lower raw material costs offset in part by higher repair and maintenance costs.

Selling, general and administrative expense for the three-month period ended February 28, 2011 increased $1.2 million from the prior year period primarily due to higher provisions for bad debts and casualty insurance claims.

Other income for the three-month period ended February 28, 2011 was comparable to the prior year period.

Corporate

   Three months ended

 February 28,
 Nine months ended

 February 28,
In thousands  2011  2010  2011  2010
         
         
Other income  $ 337  $ 109  $ 2,187  $ 845
Selling, general and administrative    (8,747)  (10,495)    (23,024)    (26,455)
   $ (8,410)  $ (10,386)  $ (20,837)  $ (25,610)

Three months ended February 28, 2011

Other income for the three-month period ended February 28, 2011 increased $0.2 million from the prior year period primarily due to higher oil and gas royalty payments offset in part by lower interest income.

Selling, general and administrative expense for the three-month period ended February 28, 2011 decreased $1.7 million from the prior year period. The decrease was primarily the result of lower provisions for casualty insurance claims and property tax expense.

Interest

Interest expense incurred for the three-month period ended February 28, 2011 was $17.3 million, of which $7.6 million was capitalized in connection with our Hunter, Texas cement plant expansion project and $9.7 million was expensed. Interest expense incurred for the three-month period ended February 28, 2010 was $13.6 million, all of which was expensed.

Interest expense incurred for the three-month period ended February 28, 2011 increased from the prior year period primarily as a result of higher average outstanding debt at higher interest rates due to the August 2010 refinancing of our 7.25% senior notes. 

Income Taxes

Income taxes for the interim periods ended February 28, 2011 and February 28, 2010 have been included in the accompanying financial statements on the basis of an estimated annual rate. The estimated annualized rate does not include the tax impact of the loss on debt retirements which has been recognized as a discrete item in the nine-month period ended February 28, 2011. The estimated annualized rate excluding this charge is 40.2% for fiscal year 2011 compared to 38.3% for fiscal year 2010. 

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 the cost or availability of transportation, changes in interest rates, the timing and amount of federal, state and local funding for infrastructure, delays in 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.

The Texas Industries, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6602
 

CONSOLIDATED STATEMENTS OF OPERATIONS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
     
   Three months ended

 February 28,
 Nine months ended

 February 28,
In thousands except per share  2011  2010  2011  2010
         
NET SALES  $ 125,818  $ 117,829  $ 446,051  $ 444,721
         
Cost of products sold   135,179   131,126   427,237   407,041
GROSS PROFIT (LOSS) (9,361) (13,297) 18,814 37,680
         
Selling, general and administrative 17,319 17,568 52,003 53,708
Interest 9,670 13,642 37,967 40,250
Loss on debt retirements --  --  29,619 -- 
Other income   (1,115)   (1,044)   (7,934)   (9,424)
    25,874   30,166   111,655   84,534
LOSS BEFORE INCOME TAXES (35,235) (43,463) (92,841) (46,854)
         
Income tax benefit   (14,301)   (16,358)   (37,014)   (17,762)
NET LOSS  $ (20,934)  $ (27,105)  $ (55,827)  $ (29,092)
         
         
Net loss per share        
Basic  $ (.75)  $ (.98)  $ (2.01)  $ (1.05)
Diluted  $ (.75)  $ (.98)  $ (2.01)  $ (1.05)
         
Average shares outstanding        
Basic 27,839 27,749 27,811 27,735
Diluted   27,839   27,749   27,811   27,735
         
Cash dividends declared per share  $ .075  $ .075  $ .225  $ .225
 
 
CONSOLIDATED BALANCE SHEETS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
     
  (Unaudited)

February 28,
 

May 31,
In thousands  2011  2010
     
ASSETS    
CURRENT ASSETS    
Cash and cash equivalents   $ 123,362  $ 74,946
Receivables – net 69,999 112,184
Inventories 143,341 142,419
Deferred income taxes and prepaid expenses   22,774   23,426
TOTAL CURRENT ASSETS 359,476 352,975
     
PROPERTY, PLANT AND EQUIPMENT    
Land and land improvements 158,941 158,367
Buildings 58,951 58,351
Machinery and equipment 1,226,451 1,220,021
Construction in progress    343,680    322,039
  1,788,023 1,758,778
Less depreciation and depletion    646,841   604,269
   1,141,182  1,154,509
OTHER ASSETS    
Goodwill 1,715 1,715
Real estate and investments 7,007 6,774
Deferred charges and other   20,314   15,774
    29,036   24,263
   $ 1,529,694  $ 1,531,747
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
CURRENT LIABILITIES    
Accounts payable  $ 43,265  $ 56,214
Accrued interest, compensation and other 40,087 51,455
Current portion of long-term debt    72   234
TOTAL CURRENT LIABILITIES  83,424 107,903
     
LONG-TERM DEBT 652,422 538,620
     
DEFERRED INCOME TAXES AND OTHER CREDITS 89,177 123,976
     
SHAREHOLDERS' EQUITY    
Common stock, $1 par value; authorized 100,000 shares; issued

and outstanding 27,875 and 27,796 shares, respectively
 

27,875
 

27,796
Additional paid-in capital 480,109 475,584
Retained earnings 209,929 272,018
Accumulated other comprehensive loss   (13,242)   (14,150)
    704,671   761,248
   $ 1,529,694  $ 1,531,747
 
 
(Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
   
   Nine months ended

 February 28,
In thousands  2011  2010
     
OPERATING ACTIVITIES    
Net loss   $ (55,827)  $ (29,092)
Adjustments to reconcile net loss to cash provided by

operating activities
   
Depreciation, depletion and amortization 48,109 49,263
Gains on asset disposals (1,456) (1,324)
Deferred income taxes (37,665) (10,988)
Stock-based compensation expense 4,271 3,732
Excess tax benefits from stock-based compensation --  (234)
Loss on debt retirements 29,619 -- 
Other – net (2,258) 3,099
Changes in operating assets and liabilities    
Receivables – net 29,814 25,864
Inventories (922) 14,102
Prepaid expenses 2,501 1,753
Accounts payable and accrued liabilities   (7,980)   (9,315)
Net cash provided by operating activities 8,206 46,860
     
INVESTING ACTIVITIES    
Capital expenditures – expansions (23,507) (5,304)
Capital expenditures – other (15,437) (6,424)
Proceeds from asset disposals 3,243 21,568
Investments in life insurance contracts 3,894 6,931
Other – net   1,230   14
Net cash provided (used) by investing activities  (30,577)  16,785
     
FINANCING ACTIVITIES    
Long-term borrowings 650,000 -- 
Debt retirements (561,610) (276)
Debt issuance costs (12,480) (2,039)
Stock option exercises 1,139 499
Excess tax benefits from stock-based compensation --  234
Common dividends paid   (6,262)   (6,244)
Net cash provided (used) by financing activities   70,787   (7,826)
Increase in cash and cash equivalents 48,416 55,819
     
Cash and cash equivalents at beginning of period   74,946   19,796
Cash and cash equivalents at end of period  $ 123,362  $ 75,615
CONTACT: Kenneth R. Allen
         Vice President-Finance and Chief Financial Officer
         972.647.6730
         Email: kallen@txi.com

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 4.96%
$30K home equity loan FICO 5.23%
$75K home equity loan FICO 4.66%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.28%
13.21%
Cash Back Cards 17.73%
17.70%
Rewards Cards 17.00%
16.96%
Source: Bankrate.com