Texas Industries 8-K Txi Reports Third Quarter Results

Exhibit 99.1

TXI REPORTS THIRD QUARTER RESULTS

March 29, 2007 – Dallas, Texas – Texas Industries, Inc. (NYSE – TXI) today reported net income of $12.7 million ($.50 per share) for the quarter ended February 28, 2007.  For the same quarter last year, the Company reported net income of $11.3 million ($.47 per share).

“Net income increased compared to last year’s third quarter despite worse winter weather than is usually encountered in our Texas markets,” stated Mel Brekhus, Chief Executive Officer.  “And we continue to make progress toward our goal of expanding TXI’s annual cement capacity from today’s 5.0 million tons to 7.5 million tons – all in three projects in a little over three years.”

TXI’s California cement plant modernization and expansion project remains on time and on budget.  The new facility will increase annual production by a million tons and should begin operating in late fall or early winter of calendar year 2007.  In addition, the next step in debottlenecking TXI’s North Texas cement plant should be completed during fiscal year 2008.  Finally, the required permits for the million ton expansion of TXI’s Central Texas cement plant have been received.

Net sales for the quarter were equal to those of a year ago.  Lower product shipments, primarily due to unseasonable winter weather, offset increased realized prices.  Average realized prices increased 7% for cement, 14% for stone, sand and gravel and 10% for ready-mix concrete products compared to last year.  Shipments of cement were down 4% while stone, sand and gravel shipments declined 16% and ready-mix concrete shipments were down 13%.

Selling, general and administrative expenses increased $7.0 million primarily due to $3.3 million of increased incentive compensation expense and $1.3 million of increased stock based compensation expense.  Interest expense declined $4.1 million as a result of $3.7 million in capitalized interest recognized in conjunction with TXI’s California cement plant expansion and modernization.  Other income declined by $2.0 million due to lower gains from the routine sale of surplus operating assets and real estate.

During the quarter, the Company called all $160 million of its outstanding 5.5% Convertible Trust Preferred securities in two separate transactions.  Almost 99% of the securities were converted into TXI common stock by March 26, 2007 while the remaining securities received cash.  The transaction had little impact on interest expense during the quarter.

A teleconference will be held today, March 29, 2007 at 1:00 p.m. Central Daylight Time to further discuss third quarter 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 and other regulations 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 - -

CONSOLIDATED STATEMENTS OF OPERATIONS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES

	Three months ended February 28,						Nine months ended February 28,
In thousands except per share	2007			2006			2007			2006
NET SALES	$	216,771		$	216,763		$	734,255		$	679,411
Cost of products sold		169,702			179,397			569,097			571,553
GROSS PROFIT		47,069			37,366			165,158			107,858
Selling, general and administrative		27,476			20,487			78,681			58,547
Interest		3,289			7,340			13,474			24,455
Loss on debt retirements and spin-off charges		26			—			26			112,391
Other income		(3,273	)		(5,274	)		(31,624	)		(17,576	)
		27,518			22,553			60,557			177,817
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		19,551			14,813			104,601			(69,959	)
Income taxes (benefit)		6,838			3,502			33,805			(27,440	)
INCOME (LOSS) FROM CONTINUING OPERATIONS		12,713			11,311			70,796			(42,519	)
Income from discontinued operations – net of income taxes		—			—			—			8,691
NET INCOME (LOSS)	$	12,713		$	11,311		$	70,796		$	(33,828	)
Basic earnings (loss) per share
Income (loss) from continuing operations	$	.52		$	.49		$	2.93		$	(1.85	)
Income from discontinued operations		—			—			—			.38
Net income (loss)	$	.52		$	.49		$	2.93		$	(1.47	)
Diluted earnings (loss) per share
Income (loss) from continuing operations	$	.50		$	.47		$	2.71		$	(1.85	)
Income from discontinued operations		—			—			—			.38
Net income (loss)	$	.50		$	.47		$	2.71		$	(1.47	)
Average shares outstanding
Basic		24,438			23,117			24,133			22,986
Diluted		27,771			27,628			27,629			22,986
Cash dividends per share	$	.075		$	.075		$	.225		$	.225
Major product shipments
Cement (tons)		1,122			1,164			3,749			3,747
Stone, sand and gravel (tons)		4,527			5,417			16,561			18,684
Ready-mix concrete (cubic yards)		736			847			2,695			2,859
Major product prices
Cement ($/ton)	$	95.50		$	89.62		$	94.91		$	85.35
Stone, sand and gravel ($/ton)		7.30			6.40			6.87			5.96
Ready-mix concrete ($/cubic yard)		77.49			70.49			75.19			68.54

CONSOLIDATED BALANCE SHEETS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES

In thousands	February 28, 2007			May 31, 2006
		Unaudited
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	20,365		$	84,139
Short-term investments		—			50,606
Receivables – net		126,527			132,849
Inventories		114,751			102,052
Deferred income taxes and prepaid expenses		18,779			33,599
TOTAL CURRENT ASSETS		280,422			403,245
OTHER ASSETS
Goodwill		58,395			58,395
Real estate and investments		132,884			125,913
Deferred charges and intangibles		16,097			22,706
		207,376			207,014
PROPERTY, PLANT AND EQUIPMENT
Land and land improvements		132,081			128,056
Buildings		41,767			42,069
Machinery and equipment		712,048			688,255
Construction in progress		298,682			95,094
		1,184,578			953,474
Less depreciation and depletion		511,406			483,163
		673,172			470,311
	$	1,160,970		$	1,080,570
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	74,810		$	63,581
Accrued interest, wages and other items		45,354			55,059
Current portion of long-term debt		1,475			681
TOTAL CURRENT LIABILITIES		121,639			119,321
LONG-TERM DEBT		250,358			251,505
CONVERTIBLE SUBORDINATED DEBENTURES		92,370			159,725
DEFERRED INCOME TAXES AND OTHER CREDITS		87,987			76,955
SHAREHOLDERS’ EQUITY
Common stock, $1 par value		27,157			25,863
Additional paid-in capital		401,139			334,054
Retained earnings		229,559			169,696
Cost of common stock in treasury		(44,783	)		(52,093	)
Pension liability adjustment		(4,456	)		(4,456	)
		608,616			473,064
	$	1,160,970		$	1,080,570

CONSOLIDATED STATEMENTS OF CASH FLOWS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES

	Nine months ended February 28,
In thousands	2007			2006
OPERATING ACTIVITIES
Net income (loss)	$	70,796		$	(33,828	)
Adjustments to reconcile net income (loss) to cash provided by continuing operating activities
Income from discontinued operations		—			(8,691	)
Loss on debt retirements		26			107,006
Gain on asset disposals		(570	)		(9,277	)
Depreciation, depletion and amortization		33,856			33,373
Deferred income taxes (benefit)		16,830			(26,632	)
Stock-based compensation expense		10,268			6,484
Excess tax benefits from stock-based compensation		(1,647	)		—
Other – net		1,533			(1,277	)
Changes in operating assets and liabilities
Receivables – net		4,540			7,239
Inventories		(12,259	)		(20,262	)
Prepaid expenses		3,910			377
Accounts payable and accrued liabilities		(1,532	)		(512	)
Cash provided by continuing operating activities		125,751			54,000
Cash used by discontinued operating activities		—			(7,704	)
Net cash provided by operating activities		125,751			46,296
INVESTING ACTIVITIES
Capital expenditures – expansions		(170,217	)		(36,061	)
Capital expenditures – other		(66,222	)		(27,512	)
Proceeds from asset disposals		961			14,509
Purchases of short-term investments		(8,500	)		(48,500	)
Sales of short-term investments		59,000			—
Investments in life insurance contracts		(5,288	)		(4,071	)
Other – net		(125	)		(2,015	)
Cash used by continuing investing activities		(190,391	)		(103,650	)
Cash used by discontinued investing activities		—			(2,757	)
Net cash used by investing activities		(190,391	)		(106,407	)
FINANCING ACTIVITIES
Long-term borrowings		—			250,000
Debt retirements		(1,285	)		(600,353	)
Debt issuance costs		—			(7,356	)
Debt retirement costs		(4	)		(96,029	)
Stock option exercises		5,976			7,028
Excess tax benefits from stock-based compensation		1,647			—
Common dividends paid		(5,468	)		(5,172	)
Cash provided (used) by continuing financing activities		866			(451,882	)
Cash provided by discontinued financing activities		—			340,587
Net cash provided (used) by financing activities		866			(111,295	)
Decrease in cash and cash equivalents		(63,774	)		(171,406	)
Cash and cash equivalents at beginning of period		84,139			251,600
Cash and cash equivalents at end of period	$	20,365		$	80,194

Texas Industries, Inc.
Consolidated Statements of Operations
In $ Thousands

	FY2003		FY2004		FY2005		FY2006										FY2007
							Q1		Q2		Q3		Q4		Total		Q1		Q2		Q3		Q4	Total
Shipments
Cement (Thousands of Tons)	4,900		5,298		5,394		1,342		1,241		1,164		1,389		5,136		1,388		1,239		1,122			3,749
Aggregates (Thousands of Tons)	19,003		22,282		23,616		7,313		5,954		5,417		6,562		25,246		6,461		5,573		4,527			16,561
Ready-mix (Thousands of Cubic Yards)	3,513		3,562		3,678		1,041		971		847		971		3,830		980		979		736			2,695
Price
Cement ($ per Ton)	68.90		68.48		75.05		82.02		84.94		89.62		92.00		87.14		94.48		94.85		95.50			94.90
Aggregates ($ per Ton)	5.55		5.43		5.68		5.73		5.85		6.40		6.42		6.08		6.61		6.83		7.30			6.87
Ready-mix ($ per Cubic Yard)	57.88		57.94		60.54		66.99		68.51		70.49		71.30		69.25		73.90		74.76		77.49			75.16
Net Sales
Cement	337,624		362,824		404,823		110,075		105,442		104,290		127,787		447,594		131,157		117,528		107,143			355,828
Aggregates	105,521		120,997		134,220		41,893		34,830		34,645		42,112		153,480		42,723		38,066		33,043			113,832
Ready-mix	203,349		206,394		222,680		69,753		66,536		59,732		69,233		265,254		72,442		73,142		57,007			202,591
Other	117,810		116,108		104,847		28,748		24,032		29,305		36,470		118,555		34,473		28,196		26,048			88,717
Interplant	(100,478	)	(98,353	)	(105,576	)	(29,479	)	(28,949	)	(29,168	)	(33,531	)	(121,127	)	(31,478	)	(30,046	)	(23,890	)		(85,414	)
Delivery Fees	54,292		59,209		73,809		20,894		18,873		17,959		22,440		80,166		22,335		18,946		17,420			58,701
Net Sales	718,118		767,179		834,803		241,884		220,764		216,763		264,511		943,922		271,652		245,832		216,771		—	734,255
Costs and Expenses (Income)
Cost of Products Sold	596,737		637,347		692,414		194,221		197,935		179,397		195,388		766,941		205,338		194,057		169,702			569,097
Selling, General and Administrative	70,666		74,814		78,434		23,228		14,832		20,487		30,116		88,663		21,058		30,147		27,476			78,681
Interest	14,827		24,102		23,533		9,264		7,851		7,340		6,700		31,155		5,542		4,643		3,289			13,474
Loss on Debt Retirements and Spin-off Charges			12,302		894		112,284		107		—		856		113,247		—				26			26
Other Income	(4,762	)	(40,482	)	(22,727	)	(4,141	)	(8,161	)	(5,274	)	(29,694	)	(47,270	)	(3,551	)	(24,800	)	(3,273	)		(31,624	)
	677,468		708,083		772,548		334,856		212,564		201,950		203,366		952,736		228,387		204,047		197,220		—	629,654
Income from Continuing Operations Before Income Taxes	40,650		59,096		62,255		(92,972	)	8,200		14,813		61,145		(8,814	)	43,265		41,785		19,551		—	104,601
Income Taxes	13,485		16,819		16,811		(32,948	)	2,006		3,502		19,215		(8,225	)	13,834		13,133		6,838			33,805
Income from Continuing Operations	27,165		42,277		45,444		(60,024	)	6,194		11,311		41,930		(589	)	29,431		28,652		12,713		—	70,796
Income (Loss) from Discontinued Operations - net of Income Taxes	(51,362	)	(4,378	)	79,079		8,691		—		—		—		8,691									—
Income (Loss) before Accounting Change	(24,197	)	37,899		124,523		(51,333	)	6,194		11,311		41,930		8,102		29,431		28,652		12,713		—	70,796
Cumulative Effect of Accounting Change - net of Income Taxes	—		(1,551	)	—		—		—		—		—		—		—		—		—		—	—
Net Income	(24,197	)	36,348		124,523		(51,333	)	6,194		11,311		41,930		8,102		29,431		28,652		12,713		—	70,796

Texas Industries, Inc.
Consolidated Balance Sheets
In $ Thousands

	5/31/2004		8/31/2005		11/30/2005		2/28/2006		5/31/2006		8/31/2006		11/30/2006		2/28/2007
Cash		133,053		137,503		133,287		80,194		84,139		66,300		83,648		20,365
Short-term Investments		—		—		24,527		48,584		50,606		39,122		10,012		—
Accounts Receivable		108,364		117,817		105,329		110,019		132,849		160,569		129,517		126,527
Inventories		89,373		87,961		90,986		103,553		102,052		101,330		100,929		114,751
Deferred Income Taxes and Prepaid Expenses		31,553		30,072		29,295		26,946		33,599		26,820		15,475		18,779
Total Current Assets		362,343		373,353		383,424		369,296		403,245		394,141		339,581		280,422
Goodwill		61,307		61,307		61,307		59,911		58,395		58,395		58,395		58,395
Real Estate and Investments		42,430		100,597		102,746		104,508		125,913		107,604		131,513		132,884
Deferred Income Taxes, Intangibles and Other Charges		39,259		36,805		37,907		37,274		22,706		22,493		22,271		16,097
Net Assets of Discontinued Operations		798,353		—		—		—		—		—		—		—
		941,349		198,709		201,960		201,693		207,014		188,492		212,179		207,376
Property, Plant and Equipment		865,133		885,833		900,716		929,153		953,474		1,015,880		1,098,134		1,184,578
Accumulated Depreciation		452,324		474,458		483,279		490,132		483,163		492,569		503,070		511,406
Net Property, Plant and Equipment		412,809		411,375		417,437		439,021		470,311		523,311		595,064		673,172
Total Assets		1,716,501		983,437		1,002,821		1,010,010		1,080,570		1,105,944		1,146,824		1,160,970
Accounts Payable		53,497		66,396		69,343		75,111		63,581		69,866		75,557		74,810
Accrued Interest, Wages and Other Items		38,833		31,966		45,644		33,412		55,059		44,662		54,371		45,354
Current Portion of Long Term Debt		699		687		685		683		681		680		1,475		1,475
Total Current Liabilities		93,029		99,049		115,672		109,206		119,321		115,208		131,403		121,639
Long Term Debt		598,412		252,188		251,848		251,848		251,505		251,507		250,358		250,358
Convertible Subordinated Debentures		199,937		199,937		199,937		199,937		159,725		159,655		159,655		92,370
Deferred Income Taxes and Other Credits		63,139		63,961		58,551		61,079		76,955		81,204		78,186		87,987
Shareholders Equity		761,984		368,302		376,813		387,940		473,064		498,370		527,222		608,616
Total Liabilities and Shareholders Equity		1,716,501		983,437		1,002,821		1,010,010		1,080,570		1,105,944		1,146,824		1,160,970

Texas Industries, Inc.
Consolidated Statements of Cash Flows
In $ Thousands

	FY2003		FY2004		FY2005		FY2006										FY2007
							Q1		Q2		Q3		Q4		Total		Q1		Q2		Q3		Q4	Total
CONTINUING OPERATIONS
Operating Activities
Income from Continuing Operations	27,165		42,277		45,444		(60,024	)	6,194		11,311		41,930		(589	)	29,431		28,652		12,713		—	70,796
Adjustments to Reconcile Income from Continuing Operations to Cash Provided (Used) by Continuing Operating Activities
Loss on Debt Retirements	—		12,302		—		107,001		5		—		—		107,006		—		—		26			26
Loss (Gain) on Asset Disposals	687		(37,997	)	(6,582	)	(355	)	(6,050	)	(2,872	)	(25,491	)	(34,768	)	(490	)	(49	)	(31	)		(570	)
Depreciation, Depletion and Amortization	49,196		47,409		46,474		11,185		11,134		11,054		11,582		44,955		11,172		11,112		11,572			33,856
Deferred Income Taxes (Benefit)	(27,726	)	319		33,811		(31,832	)	504		4,696		33,213		6,581		3,777		4,734		8,319			16,830
Other - Net	6,000		5,391		8,889		(161	)	1,420		(269	)	6,580		7,570		(502	)	2,482		8,174			10,154
Changes in Operating Assets and Liabilities															—									—
Receivables Sold	(7,321	)	(72,032	)	—		—		—		—		—		—		—							—
Accounts Receivable - Net	(1,258	)	1,052		(8,873	)	211		11,746		(4,718	)	(12,299	)	(5,060	)	(6,218	)	9,034		1,724			4,540
Inventories	(1,635	)	1,664		6,082		(4,670	)	(3,025	)	(12,567	)	1,501		(18,761	)	722		840		(13,821	)		(12,259	)
Prepaid Expenses	2,099		(5,744	)	(1,680	)	(791	)	(21	)	1,205		(330	)	63		953		1,412		1,545			3,910
Accounts Payable and Accrued Liabilities	3,889		(3,011	)	17,017		(11,198	)	16,287		(5,601	)	(11,643	)	(12,155	)	(2,782	)	16,338		(15,088	)		(1,532	)
Other Credits	2,819		7,375		3,838		4,993		(3,831	)	3,039		(1,674	)	2,527		—		—					—
Cash Provided (Used) by Continuing Operations	53,915		(995	)	144,420		14,359		34,363		5,278		43,369		97,369		36,063		74,555		15,133		—	125,751
Investing Activities
Capital Expenditures	(32,327	)	(15,887	)	(46,178	)	(10,321	)	(19,582	)	(33,670	)	(46,672	)	(110,245	)	(64,118	)	(83,338	)	(88,983	)		(236,439	)
Proceeds from Asset Disposals	11,258		47,243		7,136		817		9,612		4,080		8,598		23,107		987		(212	)	186			961
Purchases of Short-term Investments - net									(24,527	)	(23,973	)	(2,000	)	(50,500	)	11,500		29,000		10,000			50,500
Investments in Insurance Contracts	(713	)	(1,162	)	(58,798	)	(1,028	)	(1,721	)	(1,322	)	(295	)	(4,366	)	(2,402	)	(1,872	)	(1,014	)		(5,288	)
Other - Net	2,961		(2,875	)	(677	)	1,605		(1,368	)	(2,252	)	2,627		612		297		(402	)	(20	)		(125	)
Cash Provided (Used) by Investing Activities	(18,821	)	27,319		(98,517	)	(8,927	)	(37,586	)	(57,137	)	(37,742	)	(141,392	)	(53,736	)	(56,824	)	(79,831	)	—	(190,391	)
Financing Activities
Long Term Borrowings	366,640		718,097		—		250,000		—		—		—		250,000		—		—		—			—
Debt Retirements	(371,344	)	(592,398	)	(699	)	(600,009	)	(342	)	(2	)	(347	)	(600,700	)	(1	)	(354	)	(930	)		(1,285	)
Debt Issuance Costs	(1,458	)	(16,378	)	(39	)	(7,051	)	(247	)	(58	)	(7	)	(7,363	)	—		—		—			—
Debt Retirement Costs			(8,605	)	—		(96,024	)	(5	)			—		(96,029	)	—		—		(4	)		(4	)
Interest Rate Swap Terminations			8,358		(6,315	)	—		—				—		—		—		—		—			—
Stock Option Exercises	512		2,541		41,399		3,853		2,027		1,148		482		7,510		752		1,091		4,133			5,976
Common Dividends Paid	(6,315	)	(6,336	)	(6,643	)	(1,711	)	(1,729	)	(1,732	)	(1,736	)	(6,908	)	(1,798	)	(1,802	)	(1,868	)		(5,468	)
Other - Net	(1,961	)	(26	)	—		—		—		—				—		881		682		84			1,647
Cash Provided (Used) by Financing Activities	(13,926	)	105,253		27,703		(450,942	)	(296	)	(644	)	(1,608	)	(453,490	)	(166	)	(383	)	1,415		—	866
Net Cash Provided (Used) by Continuing Operations	21,168		131,577		73,606		(445,510	)	(3,519	)	(52,503	)	4,019		(497,513	)	(17,839	)	17,348		(63,283	)	—	(63,774	)
DISCONTINUED OPERATIONS
Cash Provided (Used) by Discontinued Operating Activities	(5,797	)	12,668		73,104		(6,587	)	(527	)	(590	)	(74	)	(7,778	)								—
Cash Used by Discontinued Investing Activities	(23,265	)	(14,068	)	(28,163	)	(2,712	)	(45	)	—		—		(2,757	)								—
Cash Used by Discontinued Financing Activities	(2,117	)	—		—		340,712		(125	)	—		—		340,587									—
Net Cash Provided (Used) by Discontinued Operations	(31,179	)	(1,400	)	44,941		331,413		(697	)	(590	)	(74	)	330,052		—		—		—		—	—
Increase (Decrease) in Cash and Cash Equivalents	(10,011	)	130,177		118,547		(114,097	)	(4,216	)	(53,093	)	3,945		(167,461	)	(17,839	)	17,348		(63,283	)	—	(63,774	)
Beginning Cash and Cash Equivalents	12,887		2,876		133,053		251,600		137,503		133,287		80,194		251,600		84,139		66,300		83,648		20,365	84,139
Ending Cash and Cash Equivalents	2,876		133,053		251,600		137,503		133,287		80,194		84,139		84,139		66,300		83,648		20,365		20,365	20,365

Texas Industries, Inc.
Reconciliation of EBITDA to Net Income and Cash Provided (Used) by Continuing Operations
In $ Thousands

	FY2003		FY2004		FY2005		FY2006										FY2006
							Q1		Q2		Q3		Q4		Total		Q1		Q2		Q3		Q4	Total
EBITDA Defined
Net Income (Loss) from Continuing Operations	27,165		42,277		45,444		(60,024	)	6,194		11,311		41,930		(589	)	29,431		28,652		12,713		—	70,796
Plus (minus):
Interest	14,827		24,102		23,533		9,264		7,851		7,340		6,700		31,155		5,542		4,643		3,289		—	13,474
Income Taxes (Benefit)	13,485		16,819		16,811		(32,948	)	2,006		3,502		19,215		(8,225	)	13,834		13,133		6,838		—	33,805
Depreciation, Depletion & Amortization	49,196		47,409		46,474		11,185		11,134		11,054		11,582		44,955		11,172		11,112		11,572		—	33,856
Loss on Early Retirement of Debt and Spin-off Charges	—		12,302		894		112,284		107		—		856		113,247		—		—		26		—	26
EBITDA	104,673		142,909		133,156		39,761		27,292		33,207		80,283		180,543		59,979		57,540		34,438		—	151,957
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		14,359		34,363		5,278		43,369		97,369		36,063		74,555		15,133		—	125,751
Plus (minus):
Changes in Operating Assets and Liabilities	1,407		70,696		(16,384	)	11,455		(21,156	)	18,642		24,445		33,386		7,325		(27,624	)	25,640		—	5,341
Deferred Taxes (Benefit)	27,726		(319	)	(33,811	)	31,832		(504	)	(4,696	)	(33,213	)	(6,581	)	(3,777	)	(4,734	)	(8,319	)	—	(16,830	)
Income Taxes (Benefit)	13,485		16,819		16,811		(32,948	)	2,006		3,502		19,215		(8,225	)	13,834		13,133		6,838		—	33,805
Loss (Gain) on Disposal of Assets	(687	)	37,997		6,582		355		6,050		2,872		25,491		34,768		490		49		31		—	570
Interest	14,827		24,102		23,533		9,264		7,851		7,340		6,700		31,155		5,542		4,643		3,289		—	13,474
Spin-off Charges	—		—		894		5,283		102		—		856		6,241		—		—		—		—	—
Other - net	(6,000	)	(5,391	)	(8,889	)	161		(1,420	)	269		(6,580	)	(7,570	)	502		(2,482	)	(8,174	)	—	(10,154	)
EBITDA	104,673		142,909		133,156		39,761		27,292		33,207		80,283		180,543		59,979		57,540		34,438		—	151,957

Texas Industries, Inc.
Business Segment Summary
$ Thousands

	FY2004		FY2005		FY2006										FY2007
			Total		Q1		Q2		Q3		Q4		Total		Q1		Q2		Q3		Q4	Total
Segment Net Sales (Including Delivery Fees)
Cement	383,623		431,895		116,202		111,528		109,144		134,608		471,482		137,690		122,770		111,885		—	372,345
Aggregates	206,970		225,972		67,643		54,767		61,289		72,410		256,109		75,895		65,879		60,573			202,347
Consumer Products	274,939		282,512		87,518		83,420		75,495		91,025		337,458		89,545		87,229		68,203			244,977
Eliminations	(98,353	)	(105,576	)	(29,479	)	(28,951	)	(29,165	)	(33,532	)	(121,127	)	(31,478	)	(30,046	)	(23,890	)		(85,414	)
Total Net Sales	767,179		834,803		241,884		220,764		216,763		264,511		943,922		271,652		245,832		216,771		—	734,255
Operating Profit
Cement	66,069		82,719		26,341		12,699		25,802		46,111		110,953		40,134		50,346		36,470			126,950
Aggregtates	19,047		29,902		7,907		3,252		6,023		31,157		48,339		12,582		6,832		1,320			20,734
Consumer Products	11,013		5,259		4,236		1,359		(238	)	4,992		10,349		3,641		2,623		(1,742	)		4,522
Unallocated Overhead and Other Income	26,680		(4,307	)	(2,393	)	(2,197	)	(2,582	)	(3,009	)	(10,181	)	(1,911	)	(2,877	)	(3,257	)		(8,045	)
Total Operating Profit	122,809		113,573		36,091		15,113		29,005		79,251		159,460		54,446		56,924		32,791		—	144,161
Corporate
Selling, General and Administrative	(28,658	)	(33,272	)	(10,881	)	(4,099	)	(8,782	)	(15,348	)	(39,110	)	(7,747	)	(14,522	)	(11,359	)		(33,628	)
Interest	(24,102	)	(23,533	)	(9,264	)	(7,851	)	(7,340	)	(6,700	)	(31,155	)	(5,542	)	(4,643	)	(3,289	)		(13,474	)
Loss on Debt Retirements and Spin-off Charges	(12,302	)	(894	)	(112,284	)	(107	)	—		(856	)	(113,247	)	—		—		(26	)		(26	)
Other Income	1,349		6,381		3,366		5,144		1,930		4,798		15,238		2,108		4,026		1,434			7,568
Income (loss) from Continuing Operations before Income Taxes	59,096		62,255		(92,972	)	8,200		14,813		61,145		(8,814	)	43,265		41,785		19,551		—	104,601
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		23,987		—		—		—		—	—
Cement - Cement Antidumping Settlement	—		—		—		—		—		—		—		—		19,803		—		—	19,803