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TXI Reports First Quarter Results

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.

Earnings before Interest, Taxes, Depreciation and Amortization* Three months ended
  August 31, August 31,
in thousands 2013 2012
Income before income taxes from continuing operations  $ 599  $ (7,533)
Depreciation 19,862 13,875
Interest Expense 17,371 7,777
EBITDA from continuing operations  $ 37,832  $ 14,119
EBITDA from discontinued operations**  --  5,362
Total EBITDA  $ 37,832  $ 19,481
     
EBITDA Margin    
EBITDA from continuing operations  $ 37,832  $ 14,119
Net Sales from continuing operations  $ 233,082  $ 174,523
EBITDA Margin 16.2% 8.1%
     
*A full reconciliation of EBITDA is continued on our website at www.txi.com .
** Expanded shale and clay operation's profit of $5.0 million plus depreciation expense of $0.4 million.

EBITDA represents income before interest, income taxes, depreciation and amortization and 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.

(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
     
  Three months ended
  August 31, August 31,
In thousands except per share 2013 2012
NET SALES  $ 233,082  $ 174,523
Cost of products sold 202,416 159,323
GROSS PROFIT 30,666 15,200
Selling, general and administrative 18,553 17,557
Interest expense 17,371 7,777
Other income, net (5,857) (2,599)
INCOME (LOSS) BEFORE INCOME TAXES FROM CONTINUING OPERATIONS 599 (7,535)
Income taxes (benefit) 170 (139)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS  $ 429 $ (7,396)
NET INCOME FROM DISCONTINUED OPERATIONS 4,738
NET INCOME (LOSS)  $ 429 $ (2,658)
NET INCOME (LOSS) PER SHARE FROM CONTINUING OPERATIONS:    
Basic  $ 0.02 $ (0.26)
Diluted  $ 0.01 $ (0.26)
NET INCOME PER SHARE FROM DISCONTINUED OPERATIONS:    
Basic $ —   $ 0.18
Diluted $ —   $ 0.18
NET INCOME (LOSS) PER SHARE:    
Basic  $ 0.02 $ (0.08)
Diluted  $ 0.01 $ (0.08)
AVERAGE SHARES OUTSTANDING    
Basic 28,578 27,998
Diluted 29,054 27,998

See notes to consolidated financial statements. 

(Unaudited)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
     
  Three months ended
  August 31, August 31,
In thousands 2013 2012
Net Income (loss) $ 429 $ (2,658)
Other comprehensive income:    
     
Unrealized actuarial gain (loss) of defined benefit plans, net of tax expense (benefit) of $0 and $(32) (55)
     
Reclassification of actuarial loss of defined benefit plans, net of tax benefit of $6 and $244, respectively. 9 423
Total other comprehensive income 9 368
Comprehensive income (loss) $ 438 $ (2,290)

See notes to consolidated financial statements.

CONSOLIDATED BALANCE SHEETS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
     
  (Unaudited)  
  August 31, May 31,
In thousands except per share 2013 2013
ASSETS    
CURRENT ASSETS    
Cash and cash equivalents  $ 48,472  $ 61,296
Receivables – net 142,032 126,922
Inventories 107,678 105,054
Deferred income taxes and prepaid expenses 26,564 27,294
TOTAL CURRENT ASSETS 324,746 320,566
PROPERTY, PLANT AND EQUIPMENT    
Land and land improvements 172,488 172,780
Buildings 51,461 50,968
Machinery and equipment 1,648,894 1,647,460
Construction in progress 19,017 16,642
  1,891,860 1,887,850
Less depreciation and depletion 680,804 661,454
  1,211,056 1,226,396
OTHER ASSETS    
Goodwill 40,575 40,575
Real estate and investments 30,062 29,471
Deferred other charges 19,359 18,817
  89,996 88,863
   $ 1,625,798  $ 1,635,825
LIABILITIES AND SHAREHOLDERS' EQUITY    
CURRENT LIABILITIES    
Accounts payable  $ 69,617  $ 69,061
Accrued interest, compensation and other 49,541 62,336
Current portion of long-term debt 1,911 1,872
TOTAL CURRENT LIABILITIES 121,069 133,269
LONG-TERM DEBT 657,449 657,935
DEFERRED INCOME TAXES AND OTHER CREDITS 89,954 91,157
SHAREHOLDERS' EQUITY    
Common stock, $1 par value; authorized 100,000 shares; issued and outstanding 28,609 and 28,572 shares, respectively 28,609 28,572
Additional paid-in capital 517,947 514,560
Retained earnings 229,115 228,686
Accumulated other comprehensive loss (18,345) (18,354)
  757,326 753,464
   $ 1,625,798  $ 1,635,825

See notes to consolidated financial statements.

(Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
     
  Three months ended
  August 31, August 31,
In thousands 2013 2012
OPERATING ACTIVITIES    
Net income (loss) $ 429 $ (2,658)
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities    
Depreciation, depletion and amortization 19,862 14,216
Gain on asset disposals (3,069) (2,503)
Deferred income tax expense (benefit) 51 (3)
Stock-based compensation expense 2,298 2,766
Other – net (1,848) (3,026)
Changes in operating assets and liabilities    
Receivables – net (16,136) (14,013)
Inventories (2,824) 10,846
Prepaid expenses 278 1,099
Accounts payable and accrued liabilities (5,113) (4,632)
Net cash provided (used) by operating activities (6,072) 2,092
INVESTING ACTIVITIES    
Capital expenditures – expansions (7,125) (28,114)
Capital expenditures – other (5,373) (4,496)
Proceeds from asset disposals 4,319 3,578
Investments in life insurance contracts 934 146
Other – net (59)
Net cash used by investing activities (7,245) (28,945)
FINANCING ACTIVITIES    
Debt payments (447) (1,028)
Stock option exercises 940 725
Net cash provided (used) by financing activities 493 (303)
Decrease in cash and cash equivalents (12,824) (27,156)
Cash and cash equivalents at beginning of period 61,296 88,027
Cash and cash equivalents at end of period  $ 48,472  $ 60,871

See notes to consolidated financial statements.

CONTACT: T. Lesley Vines, Jr.
         Corporate Controller & Treasurer
         Direct 972.647.6722 E-mail lvines@txi.com

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