Texas Industries 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

TXI Reports Third Quarter Results

DALLAS, March 27, 2013 (GLOBE NEWSWIRE) -- Texas Industries, Inc. (NYSE:TXI) today reported financial results for the quarter ended February 28, 2013. Results for the quarter were a net loss of $5.8 million or $.21 per share. Results for the quarter ended February 28, 2012 were a net loss of $24.3 million or $.87 per share.

General Comments

"Construction activity in Texas and California continued to improve this quarter," stated Mel Brekhus, Chief Executive Officer. "Gross profit increased $14.2 million on increased sales of $19.5 million. This increase in profitability primarily reflects the benefits of increased shipments in reducing unit costs, and success in increasing efficiencies throughout the Company."

"The commissioning of the second kiln at our central Texas plant is on target to be completed this spring. This additional 1.4 million tons of cement capacity, in combination with the East Texas ready mix assets we acquired last week, places TXI in a strong position to benefit from the recovery in construction that is underway," added Brekhus.

A teleconference will be held tomorrow, March 28, 2013 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		Nine months ended
In thousands except per unit	February 28, 2013	February 29, 2012	February 28, 2013	February 29, 2012
Operating Results
Cement sales	$ 73,086	$ 57,830	$ 242,983	$ 202,802
Other sales and delivery fees	7,480	7,641	26,230	25,540
Total segment sales	80,566	65,471	269,213	228,342
Cost of products sold	68,501	63,359	237,326	219,641
Gross profit	12,065	2,112	31,887	8,701
Selling, general and administrative	(3,247)	(4,663)	(10,520)	(12,906)
Restructuring charges	—	—	—	(1,074)
Other income	1,031	167	2,961	4,057
Operating Profits (Loss)	$ 9,849	$ (2,384)	$ 24,328	$ (1,222)
Cement
Shipments (tons)	933	743	3,086	2,596
Prices ($/ton)	$ 78.39	$ 77.76	$ 78.75	$ 78.11
Cost of sales ($/ton)	$ 64.35	$ 75.95	$ 68.62	$ 75.20

Three months ended February 28, 2013

Cement operating profit (loss) for the three-month periods ended February 28, 2013 and February 29, 2012 was $9.8 million and $(2.4) million, respectively.

Total segment sales for the three-month period ended February 28, 2013 were $80.6 million compared to $65.5 million for the prior year period. Cement sales increased $15.1 million from the prior year period. Our Texas market area accounted for approximately 71% of cement sales in the current period compared to 69% of cement sales in the prior year period. Average cement prices increased 2% in our Texas market from the prior year period. Average cement prices decreased 3% due to a change in product mix in our California market from the prior year period. Shipments increased 27% in our Texas market area and 22% in our California market area.

Cost of products sold for the three-month period ended February 28, 2013 increased $5.1 million from the prior year period primarily due to higher shipments. Cement unit cost of sales decreased 15% from prior year period primarily due to higher shipments offset slightly by higher fuel and power costs.

Selling, general and administrative expense for the three-month period ended February 28, 2013 decreased $1.4 million from the prior year period primarily due to our work force reduction initiatives.

Other income for the three-month period ended February 28, 2013 increased $0.9 million from the prior year period primarily due to higher royalties.

Aggregates Operations

	Three months ended		Nine months ended
In thousands except per unit	February 28, 2013	February 29, 2012	February 28, 2013	February 29, 2012
Operating Results
Stone, sand and gravel sales	$ 22,021	$ 16,829	$ 77,911	$ 60,022
Delivery fees	8,799	5,787	34,101	21,758
Total segment sales	30,820	22,616	112,012	81,780
Cost of products sold	28,106	23,825	100,294	76,203
Gross profit	2,714	(1,209)	11,718	5,577
Selling, general and administrative	(900)	(1,341)	(2,763)	(4,441)
Restructuring charges	—	—	—	(374)
Other income	295	1,259	674	1,732
Operating Profit (Loss)	$ 2,109	$ (1,291)	$ 9,629	$ 2,494
Stone, sand and gravel
Shipments (tons)	3,029	2,363	10,751	8,324
Prices ($/ton)	$ 7.27	$ 7.12	$ 7.25	$ 7.21
Cost of sales ($/ton)	$ 6.46	$ 7.47	$ 6.12	$ 6.62

Previously, the aggregates segment included our expanded shale and clay lightweight aggregates operations which has been classified as discontinued operations in the current period and all prior periods. Therefore, amounts for these operations are not included in the information presented.

On March 22, 2013, our subsidiaries exchanged their expanded shale and clay lightweight aggregates manufacturing business for the ready-mix concrete business of subsidiaries of Trinity Industries, Inc. in east Texas and southwest Arkansas. Pursuant to the agreements, we transferred our expanded shale and clay manufacturing facilities in Streetman, Texas; Boulder, Colorado and Frazier Park, California; and our DiamondPro® product line in exchange for 42 ready-mix concrete plants stretching from Texarkana to Beaumont in east Texas and in southwestern Arkansas, two aggregate distribution facilities in Beaumont and Port Arthur, Texas, and related assets. We anticipate recognizing a gain on the transaction, the amount of which is still being finalized and will be included in the results for our discontinued operations in our fourth quarter 2013. 

Three months ended February 28, 2013

Aggregates operating profit for the three-month period ended February 28, 2013 was $2.1 million and operating loss for the three-month period ended February 29, 2012 was $(1.3) million.

Total segment sales for the three-month period ended were $30.8 million compared to $22.6 million for the prior year period. Stone, sand and gravel sales increased $8.2 million from the prior year period on 28% higher shipments.

Cost of products sold for the three-month period ended February 28, 2013 increased $4.3 million from the prior year period primarily due to increased stone, sand and gravel 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, 2013 decreased $0.4 million from the prior year period primarily due to our work force reduction initiatives.

Consumer Products Operations

	Three months ended		Nine months ended
In thousands except per unit	February 28, 2013	February 29, 2012	February 28, 2013	February 29, 2012
Operating Results
Ready-mix concrete sales	$ 44,582	$ 37,481	$ 149,276	$ 138,288
Package products sales and delivery fees	46	12,398	274	40,736
Total segment sales	44,628	49,879	149,550	179,024
Cost of products sold	47,081	52,663	153,877	183,072
Gross loss	(2,453)	(2,784)	(4,327)	(4,048)
Selling, general and administrative	(2,475)	(1,297)	(7,239)	(8,107)
Restructuring charges	—	—	—	(536)
Other income	666	(177)	2,789	2,487
Operating Loss	$ (4,262)	$ (4,258)	$ (8,777)	$ (10,204)
Ready-mix concrete
Shipments (cubic yards)	541	508	1,833	1,836
Prices ($/cubic yard)	$ 82.49	$ 73.80	$ 81.46	$ 75.31
Cost of sales ($/cubic yard)	$ 87.04	$ 81.87	$ 83.88	$ 80.29

Three months ended February 28, 2013

Consumer products operating loss for the three-month periods ended February 28, 2013 and February 29, 2012 was $(4.3) million and $(4.3) million, respectively.

Total segment sales for the three-month period ended February 28, 2013 were $44.6 million compared to $49.9 million for the prior year period. Segment sales decreased $5.3 million from the prior year period due to the sale of our Texas-based package products operations. Ready-mix concrete sales from ongoing operations increased $7.1 million from the prior year period on 6% higher shipments and 12% higher average prices.

Cost of products sold for the three-month period ended February 28, 2013 decreased $5.6 million from the prior year period primarily due to the sale of our package products operations. Ready-mix concrete unit costs increased 6% from the prior year period on higher maintenance, diesel and material costs.

Selling, general and administrative expense for the three-month period ended February 28, 2013 increased $1.2 million from the prior year period due to insurance costs related to a prior event.

Other income for the three-month period ended February 28, 2013 increased $0.8 million from the prior year period primarily due to earnings from joint venture of $0.5 million.

Corporate

	Three months ended		Nine months ended
In thousands	February 28, 2013	February 29, 2012	February 28, 2013	February 29, 2012
Other income	$ 98	$ 84	$ 190	$ 450
Selling, general and administrative	(10,437)	(9,964)	(31,157)	(21,319)
Restructuring charges	—	—	—	(1,169)
	$ (10,339)	$ (9,880)	$ (30,967)	$ (22,038)

Three months ended February 28, 2013

Other income for the three-month period ended February 28, 2013 remains relatively unchanged from prior year period on flat oil and gas royalty payments.

Selling, general and administrative expense for the three-month period ended February 28, 2013 increased $0.5 million from the prior year period. 

Interest

Interest expense incurred for the three-month period ended February 28, 2013 was $17.4 million, of which $10.2 million was capitalized in connection with our Hunter, Texas cement plant expansion project and $7.2 million was expensed. Interest expense incurred for the three-month period ended February 29, 2012 was $17.0 million, of which $8.5 million was capitalized in connection with our Hunter, Texas cement plant expansion project and $8.5 million was expensed.

Income Taxes

Income taxes for the interim periods ended February 28, 2013 and February 29, 2012 have been included in the accompanying financial statements on the basis of an estimated annual rate. The tax rate differs from the 35% federal statutory corporate rate primarily due to percentage depletion that is tax deductible, state income taxes and valuation allowances against deferred tax assets. The estimated annualized rate for continuing operations is 7.9% for fiscal year 2013 compared to 2.5% for fiscal year 2012. We made no income tax payments and received no refunds in the nine-month period ended February 28, 2013. We made income tax payments of $0.1 million, and received income tax refunds of less than $0.1 million in the nine-month period ended February 29, 2012.

Net deferred tax assets totaled $12.4 million at February 28, 2013 and $13.7 million at May 31, 2012, of which $9.7 million at February 28, 2013 and $10.7 million at May 31, 2012 were classified as current. Management reviews our deferred tax position and in particular our deferred tax assets whenever circumstances indicate that the assets may not be realized in the future and records a valuation allowance unless such deferred tax assets are deemed more likely than not to be recoverable. The ultimate realization of these deferred tax assets depends upon various factors including the generation of taxable income during future periods. The Company's deferred tax assets exceeded deferred tax liabilities as of February 28, 2013 and May 31, 2012 primarily as a result of recent losses. Management has concluded that the sources of taxable income we are permitted to consider do not assure the realization of the entire amount of our net deferred tax assets. Accordingly, a valuation allowance is required due to the uncertainty of realizing the deferred tax assets. We recorded a valuation allowance of $5.2 million in fiscal year 2012 through a charge to other comprehensive loss given the increase in actuarial losses in our retirement plans in 2012. We will continue to record additional valuation allowance against additions to our net deferred tax assets for fiscal year 2013 until Management believes it is more likely than not the deferred tax assets will be realized

Certain statements contained in this quarterly report are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements may include the words "may," "will," "estimate," "intend," "continue," "believe," "expect," "plan," "anticipate," and other similar words. 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 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, 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.

(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
	Three months ended		Nine months ended
In thousands except per share	February 28, 2013	February 29, 2012	February 28, 2013	February 29, 2012
NET SALES	$ 141,359	$ 121,894	$ 483,575	$ 435,696
Cost of products sold	129,035	123,774	444,297	425,464
GROSS PROFIT	12,324	(1,880)	39,278	10,232
Selling, general and administrative	17,056	17,265	51,679	46,774
Restructuring charges	—	—	—	3,153
Interest	7,227	8,512	22,462	26,810
Other income	(2,091)	(1,332)	(6,614)	(8,725)
	22,192	24,445	67,527	68,012
LOSS BEFORE INCOME TAXES FROM CONTINUING OPERATIONS	(9,868)	(26,325)	(28,249)	(57,780)
Income taxes (benefit)	(1,355)	(1,148)	(2,151)	(2,601)
NET LOSS FROM CONTINUING OPERATIONS	$ (8,513)	$ (25,177)	$ (26,098)	$ (55,179)
NET INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX	2,699	897	6,504	2,442
NET LOSS	$ (5,814)	$ (24,280)	$ (19,594)	$ (52,737)
NET LOSS PER SHARE FROM CONTINUING OPERATIONS:
Basic	$ (0.30)	$ (0.90)	$ (0.93)	$ (1.98)
Diluted	$ (0.30)	$ (0.90)	$ (0.93)	$ (1.98)
NET INCOME FROM DISCONTINUED OPERATIONS:
Basic	$ 0.09	$ 0.03	$ 0.23	$ 0.09
Diluted	$ 0.09	$ 0.03	$ 0.23	$ 0.09
NET LOSS PER SHARE:
Basic	$ (0.21)	$ (0.87)	$ (0.70)	$ (1.89)
Diluted	$ (0.21)	$ (0.87)	$ (0.70)	$ (1.89)
AVERAGE SHARES OUTSTANDING
Basic	28,190	27,926	28,073	27,894
Diluted	28,190	27,926	28,073	27,894
CASH DIVIDENDS DECLARED PER SHARE	$ —	$ —	$ —	$ 0.075
See notes to consolidated financial statements.

(Unaudited)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
	Three months ended		Nine months ended
In thousands	February 28, 2013	February 29, 2012	February 28, 2013	February 29, 2012
Net loss	$ (5,814)	$ (24,280)	$ (19,594)	$ (52,737)
Other comprehensive income
Net actuarial gains (losses) of defined postretirement benefit plans
Reclassification of recognized transactions, net of taxes -- $126, $209, $736 and $627, respectively	219	363	784	1,088
Adjustment, net of tax	—	—	(55)	—
Prior service cost of defined postretirement benefit plans
Reclassification of recognized transactions, net of taxes - ($71), ($71), ($413) and ($213), respectively	(123)	(123)	(168)	(369)
Total other comprehensive income	96	240	561	719
Comprehensive loss	$ (5,718)	$ (24,040)	$ (19,033)	$ (52,018)
See notes to consolidated financial statements.

CONSOLIDATED BALANCE SHEETS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
	(Unaudited)
In thousands	February 28, 2013	May 31, 2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$ 31,664	$ 88,027
Receivables – net	98,458	98,836
Inventories	100,282	99,441
Deferred income taxes and prepaid expenses	20,282	19,007
Discontinued operations held for sale	38,769	40,344
TOTAL CURRENT ASSETS	289,455	345,655
PROPERTY, PLANT AND EQUIPMENT
Land and land improvements	170,078	168,173
Buildings	49,637	49,567
Machinery and equipment	1,156,061	1,142,439
Construction in progress	483,641	436,552
	1,859,417	1,796,731
Less depreciation and depletion	647,281	611,406
	1,212,136	1,185,325
OTHER ASSETS
Goodwill	1,715	1,715
Real estate and investments	23,024	20,865
Deferred income taxes and other charges	22,141	23,368
	46,880	45,948
	$ 1,548,471	$ 1,576,928
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$ 57,000	$ 64,825
Accrued interest, compensation and other	48,134	61,317
Current portion of long-term debt	1,816	1,214
TOTAL CURRENT LIABILITIES	106,950	127,356
LONG-TERM DEBT	658,392	656,949
OTHER CREDITS	88,088	96,352
SHAREHOLDERS' EQUITY
Common stock, $1 par value; authorized 100,000 shares; issued and outstanding 28,324 and 27,996 shares, respectively	28,324	27,996
Additional paid-in capital	506,112	488,637
Retained earnings	184,542	204,136
Accumulated other comprehensive loss	(23,937)	(24,498)
	695,041	696,271
	$ 1,548,471	$ 1,576,928
See notes to consolidated financial statements.

(Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
	Nine months ended
In thousands	February 28, 2013	February 29, 2012
OPERATING ACTIVITIES
Net loss	$ (19,594)	$ (52,737)
Adjustments to reconcile net loss to cash provided by operating activities
Depreciation, depletion and amortization	42,968	46,495
(Gains)/Loss on asset disposals	(4,822)	(3,736)
Deferred income tax (benefit) expense	1,025	(1,653)
Stock-based compensation expense	7,015	1,710
Other – net	(7,555)	(4,424)
Changes in operating assets and liabilities
Receivables – net	830	7,624
Inventories	(710)	10,048
Prepaid expenses	(2,158)	3,261
Accounts payable and accrued liabilities	(7,228)	(4,466)
Net cash provided by operating activities	9,771	2,122
INVESTING ACTIVITIES
Capital expenditures – expansions	(61,344)	(64,901)
Capital expenditures – other	(19,910)	(31,394)
Proceeds from asset disposals	5,783	4,188
Investments in life insurance contracts	2,366	3,354
Other – net	(67)	(302)
Net cash used by investing activities	(73,172)	(89,055)
FINANCING ACTIVITIES
Debt payments	(78)	(173)
Debt issuance costs	—	(1,829)
Stock option exercises	7,116	1,749
Common dividends paid	—	(2,091)
Net cash provided (used) by financing activities	7,038	(2,344)
Decrease in cash and cash equivalents	(56,363)	(89,277)
Cash and cash equivalents at beginning of period	88,027	116,432
Cash and cash equivalents at end of period	$ 31,664	$ 27,155
See notes to consolidated financial statements.

CONTACT: T. Lesley Vines, Jr.
         Corporate Controller & Treasurer
         972.647.6700

Texas Industries, Inc.
Consolidated Statements of Operations
$ In thousands except per share
	FY2005			FY2006			FY2007			FY2008			FY2009			FY2010			FY2011															FY2012															FY2013
																				Q1			Q2			Q3			Q4		Total				Q1			Q2			Q3			Q4		Total				Q1			Q2			Q3		Total
Shipments
Cement (thousands of tons)		5,394			5,136			5,074			5,035			4,035			3,226			873			784			704			940			3,301			969			884			743			984			3,580			1,119			1,034			933			3,086
Aggregates (thousands of tons)		23,616			25,246			22,114			21,851			16,470			11,363			3,584			3,026			2,470			2,985			12,065			3,143			2,818			2,363			3,514			11,838			3,914			3,808			3,029			10,751
Ready-mix (thousands of cubic yards)		3,678			3,830			3,665			3,844			2,902			2,147			669			575			471			700			2,415			741			587			508			563			2,399			649			643			541			1,833
Price
Cement ($ per ton)	$	75.05		$	87.14		$	95.06		$	93.07		$	90.31		$	82.51		$	77.59		$	78.49		$	76.75		$	77.77		$	77.68		$	78.41		$	78.07		$	77.76		$	76.79		$	77.75		$	78.07		$	79.82		$	78.39		$	78.75
Aggregates ($ per ton)	$	5.68		$	6.08		$	7.03		$	7.44		$	7.97		$	7.75		$	7.42		$	7.48		$	7.38		$	7.23		$	7.38		$	7.06		$	7.45		$	7.12		$	7.26		$	7.23		$	7.19		$	7.28		$	7.27		$	7.25
Ready-mix ($ per cubic yard)	$	60.54		$	69.25		$	75.87		$	80.83		$	85.46		$	81.83		$	77.83		$	75.45		$	72.83		$	72.92		$	74.87		$	75.93		$	75.85		$	73.80		$	78.50		$	80.54		$	80.08		$	82.08		$	82.49		$	81.46
Net Sales
Cement		404,823			447,594			482,379			468,673			364,386			266,180			67,690			61,599			54,018			73,078			256,385			75,978			68,994			57,830			75,611			278,413			87,313			82,584			73,086			242,983
Aggregates		134,220			153,480			155,562			162,582			131,197			88,019			26,593			22,644			18,212			21,596			89,045			22,200			20,993			16,829			25,515			85,537			28,151			27,739			22,021			77,911
Ready-mix		222,680			265,254			278,067			310,652			247,931			175,712			52,106			43,377			34,351			50,992			180,826			56,228			44,579			37,481			44,190			182,478			51,918			52,776			44,582			149,276
Other		104,847			118,555			119,798			132,606			121,321			101,526			27,310			23,112			20,487			30,745			101,654			27,128			14,394			12,732			22,774			77,028			2,867			2,685			2,272			7,824
Interplant		(105,576	)		(121,127	)		(118,406	)		(130,461	)		(103,030	)		(69,779	)		(20,708	)		(18,369	)		(14,597	)		(20,380	)		(74,054	)		(20,022	)		(18,033	)		(16,071	)		(17,950	)		(72,076	)		(15,708	)		(16,827	)		(14,663	)		(47,198	)
Delivery Fees		73,809			80,166			78,850			84,802			77,397			59,406			19,131			15,748			13,347			19,731			67,957			20,228			15,245			13,093			24,416			72,982			19,982			18,736			14,061			52,779
Net Sales		834,803			943,922			996,250			1,028,854			839,202			621,064			172,122			148,111			125,818			175,762			621,813			181,740			146,172			121,894			174,556			624,362			174,523			167,693			141,359			483,575
Costs and Expenses (Income)
Cost of products sold		692,414			766,941			754,088			834,333			726,133			562,066			156,014			136,044			135,179			169,273			596,510			167,915			144,689			123,774			146,125			582,503			159,323			155,939			129,035			444,298
Selling, general and administrative		78,434			88,663			108,106			96,220			72,093			79,415			16,141			18,543			17,319			24,417			76,420			17,804			12,781			17,265			22,986			70,836			17,556			17,067			17,056			51,679
Restructuring charges and goodwill impairment														58,395			-			-			-			-			-			-			-			3,153			-			-			3,153			-			-			-			-
Interest		23,533			31,155			14,074			2,505			33,286			52,240			14,411			13,886			9,670			9,616			47,583			9,460			8,838			8,512			8,025			34,835			7,778			7,457			7,227			22,462
Loss on debt retirements and spin-off charges		894			113,247			48			-			907			-			29,006			613			-			-			29,619			-			-			-			-			-			-			-			-			-
Other income		(22,727	)		(47,270	)		(36,629	)		(31,563	)		(21,191	)		(10,666	)		(4,890	)		(1,929	)		(1,115	)		(13,578	)		(21,512	)		(5,872	)		(1,522	)		(1,332	)		(65,097	)		(73,823	)		(2,600	)		(1,924	)		(2,091	)		(6,615	)
		772,548			952,736			839,687			901,495			869,623			683,055			210,682			167,157			161,053			189,728			728,620			189,307			167,939			148,219			112,039			617,504			182,057			178,539			151,227			511,824
Income (Loss) from Continuing Operations
before Income Taxes		62,255			(8,814	)		156,563			127,359			(30,421	)		(61,991	)		(38,560	)		(19,046	)		(35,235	)		(13,966	)		(106,807	)		(7,567	)		(21,767	)		(26,325	)		62,517			6,858			(7,534	)		(10,846	)		(9,868	)		(28,249	)
Income Taxes (Benefits)		16,811			(8,225	)		51,852			39,728			(12,774	)		(23,138	)		(14,868	)		(7,845	)		(14,301	)		(4,880	)		(41,894	)		(147	)		(1,144	)		(1,148	)		2,304			(135	)		(139	)		(657	)		(1,355	)		(2,151	)
Income (Loss) from Continuing Operations		45,444			(589	)		104,711			87,631			(17,647	)		(38,853	)		(23,692	)		(11,201	)		(20,934	)		(9,086	)		(64,913	)		(7,420	)		(20,623	)		(25,177	)		60,213			6,993			(7,395	)		(10,189	)		(8,513	)		(26,098	)
Income from Discontinued Operations
net of Income Taxes		79,079			8,691			-			-			-			-			-			-			-			-			-			-			-			-			-			-			4,738			(933	)		2,699			6,504
Income (Loss) before Accounting Change		124,523			8,102			104,711			87,631			(17,647	)		(38,853	)		(23,692	)		(11,201	)		(20,934	)		(9,086	)		(64,913	)		(7,420	)		(20,623	)		(25,177	)		60,213			6,993			(2,658	)		(11,122	)		(5,814	)		(19,594	)
Cumulative Effect of Accounting Change
net of Income Taxes		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-			-
Net Income (Loss)		124,523			8,102			104,711			87,631			(17,647	)		(38,853	)		(23,692	)		(11,201	)		(20,934	)		(9,086	)		(64,913	)		(7,420	)		(20,623	)		(25,177	)		60,213			6,993			(2,658	)		(11,122	)		(5,814	)		(19,594	)

*NOTE: Prior Years shown as comparative to FY13 have

been adjusted for Discontinued Operations.

Texas Industries, Inc.
Consolidated Balance Sheets
$ In thousands
	5/31/2005		5/31/2006		5/31/2007		5/31/2008		5/31/2009		5/31/2010		8/31/2010		11/30/2010		2/28/2011		5/31/2011		8/31/2011		11/30/2011		2/29/2012		5/31/2012		8/31/2012		11/30/2012		2/28/2013
Cash		251,600		84,139		15,138		39,527		19,796		74,946		162,427		139,753		123,362		116,432		60,600		67,462		27,155		88,027		60,871		71,782		31,664
Short-term investments		-		50,606		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Receivables - net		117,363		132,849		142,610		170,943		129,432		112,184		107,217		96,671		69,999		85,817		94,617		82,378		78,597		98,836		113,354		107,760		98,458
Inventories		83,291		109,767		135,254		144,654		155,724		142,419		148,741		152,681		143,341		140,646		139,752		99,038		100,858		129,514		118,370		85,530		100,282
Deferred income taxes and prepaid expenses		28,754		33,599		17,621		17,943		22,039		23,426		22,673		23,351		22,774		22,040		21,001		20,529		21,398		19,007		17,640		16,672		20,282
Discontinued Operations Held for Sale																								40,096		40,124						39,360		38,769
Total Current Assets		481,008		410,960		310,623		373,067		326,991		352,975		441,058		412,456		359,476		364,935		315,970		309,503		268,132		335,384		310,235		321,104		289,455
Property, plant and equipment		886,447		956,896		1,293,360		1,546,125		1,791,546		1,758,778		1,759,077		1,775,126		1,788,023		1,797,750		1,830,765		1,803,149		1,815,060		1,846,046		1,869,717		1,838,019		1,859,417
Less depreciation and depletion		473,794		486,585		509,138		518,361		572,195		604,269		618,706		634,404		646,841		642,329		649,973		623,280		630,750		650,450		662,385		633,973		647,281
Net Property, Plant and Equipment		412,653		470,311		784,222		1,027,764		1,219,351		1,154,509		1,140,371		1,140,722		1,141,182		1,155,421		1,180,792		1,179,869		1,184,310		1,195,596		1,207,332		1,204,046		1,212,136
Goodwill		58,395		58,395		58,395		60,110		1,715		1,715		1,715		1,715		1,715		1,715		1,715		1,715		1,715		1,715		1,715		1,715		1,715
Real estate and investments		99,491		125,159		110,761		59,261		10,001		6,774		6,223		7,426		7,007		6,749		6,447		11,472		11,044		20,865		20,716		23,168		23,024
Deferred income taxes, intangibles and other charges		27,571		22,706		11,369		11,332		14,486		15,774		22,398		23,219		20,314		22,191		24,031		22,481		21,566		23,368		24,400		23,234		22,141
Assets of discontinued operations		1,114,627		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
		1,300,084		206,260		180,525		130,703		26,202		24,263		30,336		32,360		29,036		30,655		32,193		35,668		34,325		45,948		46,831		48,117		46,880
Total Assets		2,193,745		1,087,531		1,275,370		1,531,534		1,572,544		1,531,747		1,611,765		1,585,538		1,529,694		1,551,011		1,528,955		1,525,041		1,486,766		1,576,928		1,564,398		1,573,267		1,548,471
Accounts payable		44,560		50,931		96,883		111,478		55,749		56,214		54,659		41,800		43,265		56,787		54,320		57,389		60,759		64,825		68,673		64,520		57,000
Accrued interest, compensation and other items		62,202		66,955		70,104		66,967		51,856		51,455		45,805		63,307		40,087		58,848		49,290		63,829		43,189		61,317		44,656		67,712		48,134
Current portion of long term debt		688		681		1,340		7,725		243		234		13,341		95		72		73		74		499		486		1,214		1,455		1,432		1,816
Total Current Liabilities		107,450		118,567		168,327		186,170		107,848		107,903		113,805		105,202		83,424		115,708		103,684		121,717		104,434		127,356		114,784		133,664		106,950
Long-term Debt		603,126		251,505		274,416		401,880		541,540		538,620		652,459		652,441		652,422		652,403		652,385		654,138		654,014		656,949		657,803		657,269		658,392
Convertible subordinated debentures		199,937		159,725		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Deferred income taxes and other credits		77,138		79,837		95,508		118,117		120,011		123,976		108,400		102,495		89,177		87,318		85,223		80,919		81,278		96,352		95,935		95,995		88,088
Liabilities of discontinued operations		278,527		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Shareholders' equity		927,567		477,897		737,119		825,367		803,145		761,248		737,101		725,400		704,671		695,582		687,663		668,267		647,040		696,271		695,876		686,339		695,041
Total Liabilities and Shareholders' Equity		2,193,745		1,087,531		1,275,370		1,531,534		1,572,544		1,531,747		1,611,765		1,585,538		1,529,694		1,551,011		1,528,955		1,525,041		1,486,766		1,576,928		1,564,398		1,573,267		1,548,471

Texas Industries, Inc.
Consolidated Statements of Cash Flows
$ In thousands
	FY2005			FY2006			FY2007			FY2008			FY2009			FY2010			FY2011												FY2012												FY2013
																				Q1		Q2		Q3		Q4		Total				Q1		Q2		Q3		Q4		Total				Q1		Q2		Q3		Total
Operating Activities
Income (Loss) from Operations		45,444			(589	)		104,711			87,631			(17,647	)		(38,853	)		(23,692	)	(11,201	)	(20,934	)	(9,086	)		(64,913	)		(7,420	)	(21,037	)	(24,280	)	60,213			7,476			(2,658	)	(11,122	)	(5,814	)		(19,594	)
Adjustments to reconcile income (loss) from
operations to cash provided by
operating activities																																																��
Depreciation, depletion and amortization		46,474			44,955			46,356			55,577			68,192			63,925			15,861		16,130		16,118		16,188			64,297			15,980		15,405		15,110		14,457			60,952			14,216		14,327		14,425			42,968
Goodwill impairment		-			-			-			-			58,395			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Loss (gain) on asset disposals		(6,582	)		(34,768	)		(2,917	)		(19,410	)		(6,759	)		(1,350	)		(1,613	)	58		99		(12,182	)		(13,638	)		(2,368	)	(383	)	(985	)	(63,874	)		(67,610	)		(2,503	)	(376	)	(1,943	)		(4,822	)
Deferred income taxes (benefit)		33,811			6,581			13,622			20,036			(1,938	)		(9,132	)		(14,973	)	(7,991	)	(14,701	)	(5,210	)		(42,875	)		(241	)	(704	)	(708	)	1,565			(88	)		(3	)	960		68			1,025
Stock-based compensation expense (credit)		-			-			13,866			2,395			(4,400	)		5,097			(230	)	2,518		1,983		1,310			5,581			107		(1,336	)	2,939		677			2,387			2,766		2,739		1,510			7,015
Excess tax benefits from stock-based compensation		8,000			9,969			(1,694	)		(3,299	)		(1,596	)		(250	)		-		-		-		-			-			-		-		-		-			-			-		-		-			-
Loss on debt retirements		-			107,006			48			-			907			-			29,006		613		-		-			29,619			-		-		-		-			-			-		-		-			-
Other - net		889			(2,399	)		3,234			2,475			5,931			13,998			2,192		(5,047	)	597		5,416			3,158			(1,567	)	(3,618	)	761		5,647			1,223			(3,028	)	(5,441	)	914			(7,555	)
Changes in operating assets and liabilities
Receivables - net		(8,873	)		(5,060	)		846			(29,507	)		55,397			(5,421	)		4,413		11,699		13,702		(16,435	)		13,379			(8,670	)	12,366		3,928		(20,927	)		(13,303	)		(14,013	)	5,525		9,318			830
Inventories		6,082			(18,761	)		(25,047	)		(9,400	)		(11,070	)		13,706			(6,322	)	(3,940	)	9,340		3,086			2,164			894		11,295		(2,141	)	781			10,829			10,846		3,121		(14,677	)		(710	)
Prepaid expenses		(1,680	)		63			1,392			(2,033	)		(1,894	)		387			1,297		(65	)	1,269		(1,200	)		1,301			1,729		1,125		407		(1,876	)		1,385			1,099		588		(3,845	)		(2,158	)
Accounts payable and accrued liabilities		17,017			(12,155	)		31,541			(2,910	)		(36,232	)		6,046			(7,284	)	8,597		(9,293	)	19,152			11,172			(5,809	)	6,739		(5,396	)	11,389			6,923			(4,632	)	12,565		(15,161	)		(7,228	)
Other credits		3,838			2,527			-			-			-			-			-		-		-					-			-		-		-		-			-			-		-		-			-
Cash Provided by Operating Activities		144,420			97,369			185,958			101,555			107,286			48,153			(1,345	)	11,371		(1,820	)	1,039			9,245			(7,365	)	19,852		(10,365	)	8,052			10,174			2,090		22,886		(15,205	)		9,771
Investing Activities
Capital expenditures		(46,178	)		(110,245	)		(317,658	)		(312,525	)		(288,544	)		(13,659	)		(3,156	)	(20,243	)	(15,545	)	(6,739	)		(45,683	)		(45,588	)	(16,678	)	(34,029	)	(10,041	)		(106,336	)		(32,610	)	(14,353	)	(34,291	)		(81,254	)
Cash designated for property acquisitions					-			-			(28,733	)		28,733			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Proceeds from asset disposals		7,136			23,107			5,552			34,922			7,981			21,592			3,209		(172	)	206		353			3,596			863		786		2,539		62,657			66,845			3,578		380		1,825			5,783
Investments in insurance contracts		(58,798	)		(4,366	)		(6,061	)		99,203			2,876			6,967			327		3,377		190		179			4,073			-		2,989		365		-			3,354			146		2,220		-			2,366
Purchases of short-term investments - net		-			(50,500	)		50,500			-			-			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Other - net		(677	)		612			(336	)		101			(21	)		2,079			292		(1,151	)	2,089		36			1,266			(82	)	(46	)	(174	)	57			(245	)		(59	)	(27	)	19			(67	)
Cash Provided (Used) by Investing Activities		(98,517	)		(141,392	)		(268,003	)		(207,032	)		(248,975	)		16,979			672		(18,189	)	(13,060	)	(6,171	)		(36,748	)		(44,807	)	(12,949	)	(31,299	)	52,673			(36,382	)		(28,945	)	(11,780	)	(32,447	)		(73,172	)
Financing Activities
Long-term borrowings		-			250,000			38,000			366,000			327,250			-			650,000		-		-		-			650,000			-		-		-		-			-			-		-		-			-
Debt retirements		(699	)		(600,700	)		(25,521	)		(232,366	)		(197,772	)		(245	)		(547,736	)	(13,832	)	(42	)	(17	)		(561,627	)		(18	)	(18	)	(137	)	(127	)		(300	)		(1,028	)	(557	)	1,507			(78	)
Debt issuance costs		(39	)		(7,363	)		-			(2,160	)		(5,470	)		(2,552	)		(12,250	)	(176	)	(54	)	(12	)		(12,492	)		(1,629	)	(103	)	(97	)	-			(1,829	)		-		-		-			-
Debt retirement costs		-			(96,029	)		(6	)		-			-			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Interest rate swap terminations		(6,315	)		-			-			-			-			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Stock option exercises		41,399			7,510			6,394			3,315			4,641			893			225		239		675		323			1,462			78		80		1,591		274			2,023			725		364		6,027			7,116
Excess tax benefits from stock-based compensation		-			-			1,694			3,299			1,596			250			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Common dividends paid		(6,643	)		(6,908	)		(7,517	)		(8,222	)		(8,287	)		(8,328	)		(2,085	)	(2,087	)	(2,090	)	(2,092	)		(8,354	)		(2,091	)	-		-		-			(2,091	)		-		-		-			-
Other - net		-			-			-			-			-			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Cash Provided (Used) by Financing Activities		27,703			(453,490	)		13,044			129,866			121,958			(9,982	)		88,154		(15,856	)	(1,511	)	(1,798	)		68,989			(3,660	)	(41	)	1,357		147			(2,197	)		(303	)	(193	)	7,534			7,038
Net Cash Provided (Used) by  Operations		73,606			(497,513	)		(69,001	)		24,389			(19,731	)		55,150			87,481		(22,674	)	(16,391	)	(6,930	)		41,486			(55,832	)	6,862		(40,307	)	60,872			(28,405	)		(27,158	)	10,913		(40,118	)		(56,363	)
DISCONTINUED OPERATIONS
Cash Provided (Used) by Operating Activities		73,104			(7,778	)		-			-			-			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Cash Used by Investing Activities		(28,163	)		(2,757	)		-			-			-			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Cash Provided by Financing Activities		-			340,587			-			-			-			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Net Cash Provided by Discontinued Operations		44,941			330,052			-			-			-			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Increase (Decrease) in Cash and Cash Equivalents		118,547			(167,461	)		(69,001	)		24,389			(19,731	)		55,150			87,481		(22,674	)	(16,391	)	(6,930	)		41,486			(55,832	)	6,862		(40,307	)	60,872			(28,405	)		(27,158	)	10,913		(40,118	)		(56,363	)
Cash and Cash Equivalents at Beginning of Period		133,053			251,600			84,139			15,138			39,527			19,796			74,946		162,427		139,753		123,362			74,946			116,432		60,600		67,462		27,155			116,432			88,027		60,869		71,779			88,027
Cash and Cash Equivalents at End of Period		251,600			84,139			15,138			39,527			19,796			74,946			162,427		139,753		123,362		116,432			116,432			60,600		67,462		27,155		88,027			88,027			60,869		71,779		31,664			31,664

Texas Industries, Inc.
Reconciliation of EBITDA to Net Income and Cash Provided (Used) by Continuing Operations
$ In thousands
	FY2005			FY2006			FY2007			FY2008			FY2009			FY2010			FY2011												FY2012												FY2013
																				Q1		Q2		Q3		Q4		Total				Q1		Q2		Q3		Q4		Total				Q1		Q2		Q3		Total
EBITDA Defined
Net Income (loss) from Operations		45,444			(589	)		104,711			87,631			(17,647	)		(38,853	)		(23,692	)	(11,201	)	(20,934	)	(9,086	)		(64,913	)		(7,420	)	(21,037	)	(24,280	)	60,213			7,476			(2,658	)	(11,122	)	(5,814	)		(19,594	)
Plus (minus):
Interest		23,533			31,155			14,074			2,505			33,286			52,240			14,411		13,886		9,670		9,616			47,583			9,460		8,838		8,512		8,025			34,835			7,778		7,457		7,227			22,462
Income taxes (benefit)		16,811			(8,225	)		51,852			39,728			(12,774	)		(23,138	)		(14,868	)	(7,845	)	(14,301	)	(4,880	)		(41,894	)		(147	)	(1,144	)	(1,148	)	2,304			(135	)		(139	)	(657	)	(1,355	)		(2,151	)
Depreciation, depletion and amortization		46,474			44,955			46,356			55,577			68,192			63,925			15,861		16,130		16,118		16,188			64,297			15,980		15,405		15,110		14,457			60,952			14,216		14,327		14,425			42,968
Restructuring charges and goodwill impairment		-			-			-			-			58,395			-			-		-		-		-			-			-		3,153		-		-			3,153			-		-		-			-
Loss on debt retirements and spin-off charges		894			113,247			48			-			907			-			29,006		613		-		-			29,619			-		-		-		-			-			-		-		-			-
EBITDA		133,156			180,543			217,041			185,441			130,359			54,174			20,718		11,583		(9,447	)	11,838			34,692			17,873		5,215		(1,806	)	84,999			106,281			19,197		10,005		14,483			43,685
EBITDA represents income from continuing operations before interest, income taxes, depreciation and amortization, restructuring charges and goodwill impairment, and loss on debt retirements and spin-off charges.
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 Operating Activities		144,420			97,369			185,958			101,555			107,286			48,153			(1,345	)	11,371		(1,820	)	1,039			9,245			(7,365	)	19,852		(10,365	)	8,052			10,174			2,090		22,886		(15,205	)		9,771
Plus (minus):
Changes in operating assets and liabilities		(16,384	)		33,386			(8,732	)		43,850			(6,201	)		(14,718	)		7,896		(16,291	)	(15,018	)	(4,603	)		(28,016	)		11,856		(31,525	)	3,202		10,633			(5,834	)		6,700		(21,799	)	24,365			9,266
Deferred taxes (benefit)		(33,811	)		(6,581	)		(13,622	)		(20,036	)		1,938			9,132			14,973		7,991		14,701		5,210			42,875			241		704		708		(1,565	)		88			3		(960	)	(68	)		(1,025	)
Stock-based compensation expense (credit)		-			-			(13,866	)		(2,395	)		4,400			(5,097	)		230		(2,518	)	(1,983	)	(1,310	)		(5,581	)		(107	)	1,336		(2,939	)	(677	)		(2,387	)		(2,766	)	(2,739	)	(1,510	)		(7,015	)
Excess tax benefits from stock-based compensation		(8,000	)		(9,969	)		1,694			3,299			1,596			250			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Income taxes (benefit)		16,811			(8,225	)		51,852			39,728			(12,774	)		(23,138	)		(14,868	)	(7,845	)	(14,301	)	(4,880	)		(41,894	)		(147	)	(1,144	)	(1,148	)	2,304			(135	)		(139	)	(657	)	(1,355	)		(2,151	)
Loss (gain) on assets disposals		6,582			34,768			2,917			19,410			6,759			1,350			1,613		(58	)	(99	)	12,182			13,638			2,368		383		985		63,874			67,610			2,503		376		1,943			4,822
Interest		23,533			31,155			14,074			2,505			33,286			52,240			14,411		13,886		9,670		9,616			47,583			9,460		8,838		8,512		8,025			34,835			7,778		7,457		7,227			22,462
Restructuring charges		-			-			-			-			-			-			-		-		-		-			-			-		3,153		-		-			3,153			-		-		-			-
Spin-off charges		894			6,241			-			-			-			-			-		-		-		-			-			-		-		-		-			-			-		-		-			-
Other - net		(889	)		2,399			(3,234	)		(2,475	)		(5,931	)		(13,998	)		(2,192	)	5,047		(597	)	(5,416	)		(3,158	)		1,567		3,618		(761	)	(5,647	)		(1,223	)		3,028		5,441		(914	)		7,555
EBITDA		133,156			180,543			217,041			185,441			130,359			54,174			20,718		11,583		(9,447	)	11,838			34,692			17,873		5,215		(1,806	)	84,999			106,281			19,197		10,005		14,483			43,685

Texas Industries, Inc.
Business Segment Summary
$ In thousands except per share
	FY2005			FY2006			FY2007			FY2008			FY2009			FY2010			FY2011															FY2012															FY2013
																				Q1			Q2			Q3			Q4		Total				Q1			Q2			Q3			Q4		Total				Q1			Q2			Q3		Total
Cement Operations
Operating Results
Cement sales		404,823			447,594			482,379			468,673			364,386			266,180			67,690			61,599			54,018			73,078			256,385			75,978			68,994			57,830			75,611			278,413			87,313			82,584			73,086			242,983
Other sales and delivery fees		30,699			27,416			27,648			36,079			30,934			28,333			8,692			6,979			6,144			9,094			30,909			9,659			8,240			7,641			11,340			36,880			9,892			8,858			7,480			26,230
Total segment sales		435,522			475,010			510,027			504,752			395,320			294,513			76,382			68,578			60,162			82,172			287,294			85,637			77,234			65,471			86,951			315,293			97,205			91,442			80,566			269,213
Cost of products sold		338,528			352,603			343,145			391,687			342,824			270,763			70,063			63,121			70,010			80,213			283,407			78,232			78,050			63,359			66,484			286,125			86,119			82,706			68,501			237,326
Gross profit		96,994			122,407			166,882			113,065			52,496			23,750			6,319			5,457			(9,848	)		1,959			3,887			7,405			(816	)		2,112			20,467			29,168			11,086			8,736			12,065			31,887
Selling, general and administrative		(15,085	)		(13,956	)		(19,878	)		(18,307	)		(19,343	)		(17,528	)		(4,793	)		(4,018	)		(3,286	)		(6,870	)		(18,967	)		(4,078	)		(4,165	)		(4,663	)		(3,625	)		(16,531	)		(3,544	)		(3,729	)		(3,247	)		(10,520	)
Restructuring charges and goodwill impairment		-			-			-			-			(58,395	)		-			-			-			-			-			-			-			(1,074	)		-			-			(1,074	)		-			-			-			-
Other income		1,342			951			24,536			7,419			9,301			7,774			2,438			509			696			1,188			4,831			3,190			700			167			4,868			8,925			880			1,050			1,031			2,961
Operating Profit (Loss)		83,251			109,402			171,540			102,177			(15,941	)		13,996			3,964			1,948			(12,438	)		(3,723	)		(10,249	)		6,517			(5,355	)		(2,384	)		21,710			20,488			8,422			6,057			9,849			24,328
Cement
Shipments (tons)		5,394			5,136			5,074			5,035			4,035			3,226			873			784			704			940			3,301			969			884			743			984			3,580			1,119			1,034			933			3,086
Prices ($/ton)	$	75.05		$	87.14		$	95.06		$	93.07		$	90.31		$	82.51		$	77.59		$	78.49		$	76.75		$	77.77		$	77.68		$	78.41		$	78.07		$	77.76		$	76.79		$	77.68		$	78.07		$	79.82		$	78.39		$	78.75
Cost of sales ($/ton)	$	58.03		$	63.65		$	63.08		$	70.85		$	78.02		$	76.36		$	71.23		$	73.39		$	90.43		$	76.33		$	77.29		$	71.77		$	78.34		$	75.95		$	56.60		$	77.29		$	68.55		$	72.56		$	64.35		$	68.62
Aggregate Operations
Operating Results
Stone, sand and gravel sales		134,220			153,480			155,562			162,582			131,197			88,019			26,593			22,644			18,212			21,596			89,045			22,200			20,993			16,829			25,515			85,537			28,151			27,739			22,021			77,911
Expanded shale and clay sales and delivery fees		88,125			99,101			113,292			122,748			106,294			76,928			23,377			18,438			16,692			24,873			83,380			22,901			7,854			5,787			27,336			63,878			12,829			12,473			8,799			34,101
Total segment sales		222,345			252,581			268,854			285,330			237,491			164,947			49,970			41,082			34,904			46,469			172,425			45,101			28,847			22,616			52,851			149,415			40,980			40,212			30,820			112,012
Cost of products sold		191,837			219,124			218,394			231,503			197,583			142,963			43,410			35,002			32,323			41,367			152,102			38,508			25,459			23,825			43,800			131,592			36,236			35,951			28,106			100,293
Gross profit		30,508			33,457			50,460			53,827			39,908			21,984			6,560			6,080			2,581			5,102			20,323			6,593			3,388			(1,209	)		9,051			17,823			4,744			4,261			2,714			11,719
Selling, general and administrative		(11,920	)		(15,436	)		(16,212	)		(15,178	)		(12,633	)		(9,602	)		(3,059	)		(2,814	)		(2,679	)		(2,837	)		(11,389	)		(2,950	)		(1,226	)		(1,341	)		(2,828	)		(8,345	)		(1,009	)		(856	)		(900	)		(2,765	)
Restructuring charges		-			-			-			-			-			-			-			-			-			-			-			-			(373	)		-			-			(373	)		-			-			-			-
Other income		10,782			30,376			2,638			16,974			6,954			1,419			1,633			57			16			11,998			13,704			272			202			1,259			21,103			22,836			263			115			295			673
Operating Profit (Loss)		29,370			48,397			36,886			55,623			34,229			13,801			5,134			3,323			(82	)		14,263			22,638			3,915			1,991			(1,291	)		27,326			31,941			3,998			3,520			2,109			9,627
Stone, sand and gravel
Shipments (tons)		23,616			25,246			22,114			21,851			16,470			11,363			3,584			3,026			2,470			2,985			12,065			3,143			2,818			2,363			3,514			11,838			3,914			3,808			3,029			10,751
Prices ($/ton)	$	5.68		$	6.08		$	7.03		$	7.44		$	7.97		$	7.75		$	7.42		$	7.48		$	7.38		$	7.23		$	7.38		$	7.06		$	7.45		$	7.12		$	7.26		$	7.38		$	7.19		$	7.28		$	7.27		$	7.25
Cost of sales ($/ton)	$	4.80		$	5.23		$	5.40		$	6.13		$	6.68		$	6.91		$	6.45		$	6.53		$	7.23		$	6.80		$	6.72		$	6.22		$	6.35		$	7.47		$	6.01		$	6.72		$	5.98		$	5.99		$	6.46		$	6.12
Consumer Products Operations
Operating Results
Ready-mix concrete sales		222,680			265,254			278,067			310,652			247,931			175,712			52,106			43,377			34,351			50,992			180,826			56,228			44,579			37,481			44,190			182,478			51,918			52,776			44,582			149,276
Package products sales and delivery fees		59,832			72,204			57,708			58,581			61,490			55,671			14,372			13,443			10,998			16,509			55,322			14,796			13,542			12,398			8,514			49,250			127			101			46			274
Total segment sales		282,512			337,458			335,775			369,233			309,421			231,383			66,478			56,820			45,349			67,501			236,148			71,024			58,121			49,879			52,704			231,728			52,045			52,877			44,628			149,550
Cost of products sold		267,625			316,341			310,955			341,604			288,756			218,119			63,249			56,290			47,443			68,073			235,055			71,197			59,212			52,663			53,791			236,863			52,673			54,123			47,081			153,877
Gross profit		14,887			21,117			24,820			27,629			20,665			13,264			3,229			530			(2,094	)		(572	)		1,093			(173	)		(1,091	)		(2,784	)		(1,087	)		(5,135	)		(628	)		(1,246	)		(2,453	)		(4,327	)
Selling, general and administrative		(10,339	)		(11,415	)		(16,284	)		(19,314	)		(13,116	)		(10,193	)		(2,676	)		(3,047	)		(2,607	)		(4,443	)		(12,773	)		(4,374	)		(2,436	)		(1,297	)		(2,739	)		(10,846	)		(2,690	)		(2,074	)		(2,475	)		(7,239	)
Restructuring charges		-			-			-			-			-			-			-			-			-			-			-			-			(536	)		-			-			(536	)		-			-			-			-
Other income		711			647			1,310			3,268			1,314			586			198			134			66			131			529			2,207			457			(177	)		39,065			41,552			1,410			713			666			2,789
Operating Profit (Loss)		5,259			10,349			9,846			11,583			8,863			3,657			751			(2,383	)		(4,635	)		(4,884	)		(11,151	)		(2,340	)		(3,606	)		(4,258	)		35,239			25,035			(1,908	)		(2,607	)		(4,262	)		(8,777	)
Ready-mix concrete
Shipments (tons)		3,678			3,830			3,665			3,844			2,902			2,147			669			575			471			700			2,415			741			587			508			563			2,399			649			643			541			1,833
Prices ($/ton)	$	60.54		$	69.25		$	75.87		$	80.83		$	85.46		$	81.83		$	77.83		$	75.45		$	72.83		$	72.92		$	74.87		$	75.93		$	75.85		$	73.80		$	78.50		$	74.87		$	80.08		$	81.99		$	82.49		$	81.46
Cost of sales ($/ton)	$	61.12		$	67.69		$	71.92		$	76.36		$	81.41		$	79.82		$	76.20		$	77.79		$	80.71		$	77.70		$	77.89		$	78.91		$	80.66		$	81.87		$	81.34		$	77.89		$	80.97		$	84.16		$	87.04		$	83.88
Total Segment Operating Profit (Loss)		117,880			168,148			218,272			169,383			27,151			31,454			9,849			2,888			(17,155	)		5,656			1,238			8,092			(6,970	)		(7,933	)		84,275			77,464			10,512			6,970			7,696			25,178
Corporate
Other income		9,892			15,296			8,145			3,902			3,622			887			621			1,229			337			261			2,448			203			163			84			61			511			46			46			98			190
Selling, general and administrative		(41,090	)		(47,856	)		(55,732	)		(43,421	)		(27,001	)		(42,092	)		(5,613	)		(8,664	)		(8,747	)		(10,267	)		(33,291	)		(6,402	)		(4,953	)		(9,964	)		(13,794	)		(35,113	)		(10,315	)		(10,405	)		(10,439	)		(31,157	)
Restructuring charges		-			-			-			-			-			-			-			-			-			-			-			-			(1,169	)		-			-			(1,169	)		-			-			-			-
		(31,198	)		(32,560	)		(47,587	)		(39,519	)		(23,379	)		(41,205	)		(4,992	)		(7,435	)		(8,410	)		(10,006	)		(30,843	)		(6,199	)		(5,959	)		(9,880	)		(13,733	)		(35,771	)		(10,269	)		(10,359	)		(10,341	)		(30,967	)
Interest		(23,533	)		(31,155	)		(14,074	)		(2,505	)		(33,286	)		(52,240	)		(14,411	)		(13,886	)		(9,670	)		(9,616	)		(47,583	)		(9,460	)		(8,838	)		(8,512	)		(8,025	)		(34,835	)		(7,777	)		(7,458	)		(7,227	)		(22,462	)
Loss on Debt Retirements		(894	)		(113,247	)		(48	)		-			(907	)		-			(29,006	)		(613	)		-			-			(29,619	)		-			-			-			-			-			-			-			-			-
Income (loss) from Continuing Operations before
Income Taxes		62,255			(8,814	)		156,563			127,359			(30,421	)		(61,991	)		(38,560	)		(19,046	)		(35,235	)		(13,966	)		(106,807	)		(7,567	)		(21,767	)		(26,325	)		62,517			6,858			(7,533	)		(10,846	)		(9,868	)		(28,249	)

Texas Industries, Inc.
Business Segment Summary
$ In thousands except per share
	FY2005		FY2006		FY2007		FY2008		FY2009		FY2010		FY2011							FY2012								FY2013
														Q1	Q2	Q3	Q4	Total			Q1	Q2	Q3	Q4		Total			Q1	Q2	Q3	Total
Major Gains (losses) in Other Income
Cement
Antidumping settlement						19,803
Sale of emissions credits								3,879		1,723		3,427		1,690					1,690		2,533						2,533
Oil and gas bonus proceeds										2,781
Aggregates
Sale of emissions credits		6,225
Sale of real estate				23,987				5,146		4,961														20,784							3,634
Sale of southern Louisiana operations								10,093
Exchange of operating assets																	11,997		11,997		2,058			(489	)		1,569
Consumer products
Texas-based package products operations																								30,881
Exchange of operation assets																								8,965
Corporate
Oil and gas bonus proceeds										1,636					834				834								-						-
Depreciation, Depletion and Amortization
Cement		24,926		23,628		23,234		25,645		37,799		35,828		9,149	9,181	9,124	9,122		36,576		8,927	8,897	8,723	8,531			35,078		8,464	8,429	8,395		25,288
Aggregates		12,898		13,926		16,093		21,166		21,919		19,873		4,772	4,956	4,793	4,442		18,963		4,195	3,868	3,898	3,784			15,745		3,327	3,347	3,166		9,840
Consumer Products		6,889		6,181		6,493		7,998		7,434		7,065		1,656	1,709	1,919	2,341		7,625		2,564	2,326	2,194	1,897			8,981		1,866	1,981	2,281		6,128
Corporate		1,761		1,220		536		768		1,040		1,159		284	284	282	283		1,133		294	314	295	245			1,148		217	229	254		700
Total Depreciation, Depletion and Amortization		46,474		44,955		46,356		55,577		68,192		63,925		15,861	16,130	16,118	16,188		64,297		15,980	15,405	15,110	14,457			60,952		13,874	13,986	14,096		41,956