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Press release from GlobeNewswire (a Nasdaq OMX company)

TXI Reports Fourth Quarter and Year End Results

Wednesday, July 11, 2012

TXI Reports Fourth Quarter and Year End Results15:07 EDT Wednesday, July 11, 2012DALLAS, July 11, 2012 (GLOBE NEWSWIRE) -- Texas Industries, Inc. (NYSE:TXI) today reported financial results for the quarter and year ended May 31, 2012. Net income for the quarter was $60.2 million or $2.15 per share and included pre-tax gains of $60.1 million from asset sales and a joint venture agreement. Net loss for the quarter ended May 31, 2011 was $9.1 million or $.33 per share and included a pre-tax gain of $10.7 million from the exchange of aggregate operating assets for ready mix operating assets.  Net income for the year was $7.5 million or $.27 per share and included pre-tax gains of $62.2 million from asset sales, asset exchanges and a joint venture agreement. Net loss for the year ended May 31, 2011was $64.9 million or $2.33 per share and included a pre-tax gain of $10.7 million from the exchange of aggregate operating assets for ready mix operating assets and pre-tax loss on debt retirement of $29.6 million associated with the refinancing of senior notes due in 2013. General Comments "The fourth quarter is typically our strongest quarter and the $2.4 million of pre-tax income after adjusting for the gains broke a string of 10 consecutive quarterly losses," stated Mel Brekhus, Chief Executive Officer. "Construction activity continued to improve, price increases in Texas were successful, we made additional progress on our gross margin and SG&A goals and we completed two sales of non-core assets." "The pace and magnitude of a recovery in construction activity remains challenging to predict," added Brekhus. "Our focus continues to be on doing everything we can to ensure we have the assets and cost profile to maximize our profitabilty in any market condition. Toward that end, I am excited to be nearing the completion of construction and beginning of the commissioning this Fall of our cement capacity expansion in central Texas." A teleconference will be held July 12, 2012 at 10:00 Central Daylight Time to further discuss quarter and annual 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 May 31, Year ended May 31, In thousands except per unit 2012 2011 2012 2011           Operating Results         Total cement sales $75,611 $73,078 $278,413 $256,385 Other sales and delivery fees 11,340 9,094 36,880 30,909 Total segment sales 86,951 82,172 315,293 287,294 Cost of products sold 66,484 80,213 286,125 283,407 Gross profit 20,467 1,959 29,168 3,887 Selling, general and administrative (3,625) (6,870) (16,531) (18,967) Restructuring charges --  --  (1,074) --   Other income 4,868 1,188 8,925 4,831 Operating Profit (Loss) $21,710 $(3,723) $20,488 $(10,249)           Cement         Shipments (tons) 984 940 3,580 3,301 Prices ($/ton) $76.79 $77.77 $77.75 $77.68 Cost of sales ($/ton) $56.60 $76.33 $70.09 $77.29 Three months ended May 31, 2012 Cement operating profit for the three-month period ended May 31, 2012 was $21.7 million. Cement operating loss for the three-month period ended May 31, 2011 was $3.7 million. Cement operating profit increased $25.4 million from the prior year period.  Total segment sales for the three-month period ended May 31, 2012 were $87.0 million compared to $82.2 million for the prior year period. Cement sales increased $2.5 million from the prior year period on higher shipments. Our Texas market area accounted for approximately 70% of cement sales in the current period compared to 69% of cement sales in the prior year period. Cement shipments increased 4% in our Texas market area and 7% in our California market area from the prior year period. Average prices were comparable in our Texas market area and decreased 5% in our California market area from the prior year period. Cost of products sold for three-month period ended May 31, 2012 decreased $13.7 million from the prior year period. The effect of higher shipments was offset by the effect of lower cement unit costs. Cement unit costs decreased 26% from the prior year period primarily due to lower energy costs, as well as, lower supplies and maintenance expense due in part to a scheduled plant shut down at our Hunter, Texas cement plant in the prior period.  Selling, general and administrative expense for the three-month period ended May 31, 2012 decreased $3.2 million from the prior year period. The decrease was primarily due to $0.5 million lower controllable expenses, $1.5 million lower bad debt expense and $2.0 million lower insurance expense offset in part by $0.8 million higher incentive compensation expense. Other income for the three-month period ended May 31, 2012 increased $3.7 million from the prior year period. The increase was primarily due to $3.5 million higher gains from routine sales of surplus operating assets.  Fiscal Year 2012 Compared to Fiscal Year 2011 Cement operating profit for fiscal year 2012 was $20.5 million. Cement operating loss for fiscal year 2011 was $10.2 million. Cement operating profit for fiscal year 2012 increased $30.7 million from the prior fiscal year.  Total segment sales for fiscal year 2012 were $315.3 million compared to $287.3 million for the prior fiscal year. Cement sales increased $22.0 million from the prior fiscal year on higher shipments. Our Texas market area accounted for approximately 68% of cement sales in the current fiscal year compared to 71% of cement sales in the prior fiscal year.    Cement shipments increased 3% in our Texas market area and 21% in our California market area from the prior fiscal year. Average prices increased 1% in our Texas market area and decreased 2% in our California market area from the prior fiscal year. Cost of products sold for fiscal year 2012 increased $2.7 million from the prior fiscal year. The effect of higher shipments was offset in part by the effect of higher cement production and lower cement unit costs. Cement unit costs decreased 9% from the prior fiscal year on lower energy and supplies and maintenance costs. Supplies and maintenance costs related to scheduled maintenance at our three cement plants decreased approximately $1 million from the prior fiscal year. Selling, general and administrative expense for fiscal year 2012 decreased $2.4 million from the prior fiscal year. The decrease was primarily due to $1.2 million lower controllable expenses, $1.4 million lower bad debt expense and $1.4 million lower insurance expense offset in part by $1.5 million higher incentive compensation expense. Restructuring charges of $1.1 million were recorded in fiscal year 2012. These charges consist primarily of severance and benefit costs associated with various workforce reduction initiatives. Other income for fiscal year 2012 increased $4.1 million from the prior fiscal year. The increase was primarily due to $3.0 million higher gains from routine sales of surplus operating assets and $0.8 million higher in gains from sales of emissions credits associated with our Crestmore cement plant in Riverside, California.  Aggregate Operations   Three months ended May 31, Year ended May 31, In thousands except per unit 2012 2011 2012 2011           Operating Results         Total stone, sand and gravel sales $25,515 $21,596 $85,537 $89,045 Expanded shale and clay sales and delivery fees      27,336    24,873    89,023    83,380 Total segment sales 52,851 46,469 174,560 172,425 Cost of products sold 43,800 41,367 152,846 152,102 Gross profit 9,051 5,102 21,714 20,323 Selling, general and administrative (2,828) (2,837) (10,567) (11,389) Restructuring charges --  --   (437) --  Other income 21,103 11,998 22,845 13,704 Operating Profit $27,326 $14,263 $33,555 $22,638           Stone, sand and gravel         Shipments (tons) 3,514 2,985 11,838 12,065 Prices ($/ton) $7.26 $7.23 $7.23 $7.38 Cost of sales ($/ton) $6.01 $6.80 $6.44 $6.72 Three months ended May 31, 2012 Aggregate operating profit for the three-month period ended May 31, 2012 was $27.3 million, an increase of $13.1 million from the prior year period. Operating profit for the three-month period ended May 31, 2012 includes a gain of $20.8 million from the sale of our aggregate rail distribution terminal and associated assets located in Stafford, Texas. Operating profit for three-month period ended May 31, 2011 includes a gain of $12.0 million recognized in connection with the exchange of aggregate operating assets for ready-mix operating assets. Excluding these gains operating profit increased $4.3 million from the prior year period. Total segment sales for the three-month period ended May 31, 2012 were $52.9 million compared to $46.5 million for the prior year period. Stone, sand and gravel sales increased $3.9 million from the prior year period. The effect of the disposition of aggregate operating assets through the asset exchange transaction completed in April 2011 decreased sales $0.9 million, shipments 4% and average prices 1% from the prior year period. Stone, sand and gravel sales from current operations increased $4.8 million from the prior year period on 22% higher shipments and 1% higher average prices.  Cost of products sold for the three-month period ended May 31, 2012 increased $2.4 million from the prior year period. The effect of the disposition of aggregate operating assets through the asset exchange transaction completed in April 2011 decreased stone, sand and gravel cost of products sold $0.8 million. Cost of products sold from current operations increased $3.2 million primarily due to higher stone, sand and gravel shipments and higher freight costs. Stone, sand and gravel unit costs decreased 12% from the prior year period primarily due to the effect on unit costs of higher shipments and the disposition of aggregate operating assets through the asset exchange transaction completed in April 2011. Selling, general and administrative expense for the three-month period ended May 31, 2012 was comparable to the prior year period primarily due to $0.6 million lower controllable expenses offset by $0.6 million higher incentive compensation expense. Other income for the three-month period ended May 31, 2012 increased $9.1 million from the prior year period. Other income in the three-month period ended May 31, 2012 includes a gain of $20.8 million from the sale of our aggregate rail distribution terminal and associated assets located in Stafford, Texas. Other income in the three-month period ended May 31, 2011 includes a gain of $12.0 million from the exchange of aggregate operating assets for ready-mix operating assets. Fiscal Year 2012 Compared to Fiscal Year 2011 Aggregate operating profit for fiscal year 2012 was $33.6 million, an increase of $10.9 million from the prior fiscal year.   Operating profit for fiscal year 2012 includes a gain of $20.8 million from the sale of our aggregate rail distribution terminal and associated assets located in Stafford, Texas. Operating profit for fiscal year 2011 includes a gain of $12.0 million recognized in connection with the exchange of aggregate operating assets for ready-mix operating assets. Excluding these gains operating profit increased $2.1 million from the prior fiscal year. Total segment sales for fiscal year 2012 were $174.6 million compared to $172.4 million for the prior fiscal year. Stone, sand and gravel sales decreased $3.5 million from the prior fiscal year. The effect of the disposition of aggregate operating assets through the asset exchange transaction completed in April 2011 decreased sales $7.2 million, shipments 7% and average prices 2% from the prior fiscal year. Stone, sand and gravel sales from current operations increased $3.7 million from the prior fiscal year on 5% higher shipments and comparable average prices.  Cost of products sold for fiscal year 2012 increased $0.7 million from the prior fiscal year. The effect of the disposition of aggregate operating assets through the asset exchange transaction completed in April 2011 decreased stone, sand and gravel cost of products sold $7.2 million. Cost of products sold from current operations increased $7.9 million primarily due to higher stone, sand and gravel shipments and higher freight costs. Stone, sand and gravel unit costs decreased 4% from the prior fiscal year primarily due to the effect on unit costs of the disposition of aggregate operating assets through the asset exchange transaction completed in April 2011. Selling, general and administrative expense for fiscal year 2012 decreased $0.8 million from the prior fiscal year. The decrease was primarily due to $1.2 million lower controllable expenses and $0.3 million lower bad debt expense offset in part by $0.8 million higher incentive compensation expense. Restructuring charges of $0.4 million were recorded in fiscal year 2012. These charges consist primarily of severance and benefit costs associated with various workforce reduction initiatives. Other income for fiscal year 2012 increased $9.1 million from the prior fiscal year. Other income in 2012 includes a gain of $20.8 million from the sale of our aggregate rail distribution terminal and associated assets located in Stafford, Texas.  Other income in 2011 includes a gain of $12.0 million from the exchange of aggregate operating assets for ready-mix operating assets.Consumer Products Operations   Three months ended May 31, Year ended May 31, In thousands except per unit 2012 2011 2012 2011            Operating Results          Total ready-mix concrete sales $44,190 $50,992 $182,478 $180,826  Package products sales and delivery fees 8,514 16,509 49,250 55,322  Total segment sales 52,704 67,501 231,728 236,148  Cost of products sold 53,791 68,073 236,863 235,055  Gross profit (loss) (1,087) (572) (5,135) 1,093  Selling, general and administrative (2,739) (4,443) (10,846) (12,773)  Restructuring charges --  --  (536) --   Other income 39,065 131 41,552 529  Operating Profit (Loss) $35,239 $(4,884) $25,035 $ (11,151)            Ready-mix concrete          Shipments (cubic yards) 563 700 2,399 2,415  Prices ($/cubic yard) $78.50 $72.92 $76.06 $74.87  Cost of sales ($/cubic yard) $81.34 $77.70 $80.54 $77.89 Three months ended May 31, 2012 Consumer products operating profit for the three-month period ended May 31, 2012 was $35.2 million. The operating profit includes a gain of $30.9 million from the sale of our Texas-based package products operations and a gain of $8.9 million from a joint venture transaction in which we contributed certain of our ready-mix operating assets. Consumer products operating loss for the three-month period ended May 31, 2011 was $4.9 million. Consumer products operating profit increased $2.3 million from the prior year period excluding these gains and the related $2.0 million lower package products operating profit. Total segment sales for the three-month period ended May 31, 2012 were $52.7 million compared to $67.5 million from the prior year period. Ready-mix concrete sales decreased $6.8 million from the prior year period. The net effect of the asset exchange transactions completed in April and July 2011 decreased sales $7.2 million, decreased shipments 17% and increased average prices 3% from the prior year period. Ready-mix concrete sales excluding the net effect of the asset exchange transactions increased $0.4 million from the prior year period on 3% lower shipments and 5% higher average prices.  Cost of products sold for the three-month period ended May 31, 2012 decreased $14.3 million from the prior year period. Cost of products sold decreased $8.0 million due to the net effect of the asset exchange transactions completed in April and July 2011. Cost of products sold decreased $5.1 million due to the sale of the package products operations. Cost of products sold excluding these effects decreased $1.2 million from the prior year period primarily due to lower shipments. Ready-mix concrete unit costs increased 5% from the prior year period primarily due to higher diesel costs. Selling, general and administrative expense for the three-month period ended May 31, 2012 decreased $1.7 million from the prior year period. In addition to $1.3 million in expenses associated with the acquisition of ready-mix operating assets through as asset exchange transaction recognized in 2011, the decrease was primarily due to $0.8 million lower controllable expenses offset in part by $0.7 million higher incentive compensation expense.  Other income for the three-month period ended May 31, 2012 increased $38.9 million from the prior year period. Other income in 2012 includes a gain of $30.9 million from the sale of our Texas-based package products operations and a gain of $8.9 million from a joint venture transaction in which we contributed certain of our ready-mix operating assets. Fiscal Year 2012 Compared to Fiscal Year 2011 Consumer products operating profit for fiscal year 2012 was $25.0 million. Consumer products operating loss for fiscal year 2011 was $11.2 million. Consumer products operating profit for fiscal year 2012 includes a gain from the sale of our Texas-based package products operations of $30.9 million and gains from exchanges of operating assets of $10.5 million. Consumer products operating loss increased $3.0 million from the prior fiscal year excluding these gains and the related $2.2 million lower package products operating profit. Total segment sales for fiscal year 2012 were $231.7 million compared to $236.1 million for the prior fiscal year. Ready-mix concrete sales increased $1.7 million from the prior fiscal year. The net effect of the asset exchange transactions completed in April and July 2011 increased sales $7.2 million, shipments 3% and average prices 1% from the prior fiscal year. Ready-mix concrete sales excluding the net effect of the asset exchange transactions decreased $5.5 million from the prior fiscal year on 4% lower shipments and 1% higher average prices.  Cost of products sold for fiscal year 2012 increased $1.8 million from the prior fiscal year. Cost of products sold increased $6.6 million due to the net effect of the asset exchange transactions completed in April and July 2011. Cost of products sold decreased $2.9 million due to the sale of the package products operations. Cost of products sold excluding these effects decreased $1.9 million from the prior fiscal year primarily due to lower shipments. Ready-mix concrete unit costs increased 3% from the prior fiscal year primarily due to higher diesel costs. Selling, general and administrative expense for fiscal year 2012 decreased $1.9 million from the prior fiscal year. In addition to $1.3 million in expenses associated with the acquisition of ready-mix operating assets through as asset exchange transaction recognized in 2011, the decrease was primarily due to $1.0 million lower controllable expenses and $1.4 million lower bad debt expense offset in part by $1.0 million higher insurance expense and $1.1 million higher incentive compensation expense.  Restructuring charges of $0.5 million were recorded in fiscal year 2012. These charges consist primarily of severance and benefit costs associated with various workforce reduction initiatives. Other income for fiscal year 2012 increased $41.0 million from the prior fiscal year. Other income in 2012 includes a gain of $30.9 million from the sale of our Texas-based package products operations.  In addition, we entered into ready-mix and aggregate asset exchange transactions and contributed certain ready-mix operating assets to a joint venture that resulted in the recognition of gains of $10.5 million.Corporate   Three months ended May 31, Year ended May 31, In thousands 2012 2011 2012 2011                     Other income $61 $261 $511 $2,448 Selling, general and administrative (13,794) (10,267) (35,113) (33,291) Restructuring charges --   -- (1,169)  --   $(13,733) $(10,006) $(35,771) $(30,843) Three months ended May 31, 2012 Corporate other income for the three-month period ended May 31, 2012 decreased $0.2 million from the prior year period primarily due to lower oil and gas lease royalty payments.  Corporate selling, general and administrative expense for the three-month period ended May 31, 2012 increased $3.5 million from the prior year period. In addition to $1.0 million higher controllable expenses, we recognized $1.1 million incentive compensation expense in 2012. Our stock-based compensation includes awards expected to be settled in cash, the expense for which is based on their fair value at the end of each period until the awards are paid. The impact of changes in our stock price on the fair value of these awards decreased expense $0.5 million. Our financial security plan postretirement benefit obligations are determined using assumptions as of the end of the year. Actuarial gains or losses are recognized when incurred. Financial security plan postretirement benefit expense increased $1.9 million. Fiscal Year 2012 Compared to Fiscal Year 2011 Corporate other income for fiscal year 2012 decreased $1.9 million from the prior fiscal year primarily due to $1.8 million lower oil and gas lease bonus and royalty payments and $0.1 million lower interest income. Corporate selling, general and administrative expense for fiscal year 2012 increased $1.8 million from the prior fiscal year. In addition to $1.3 million higher controllable expenses, we recognized $1.8 million incentive compensation expense in 2012. Our stock-based compensation includes awards expected to be settled in cash, the expense for which is based on their fair value at the end of each period until the awards are paid. The impact of changes in our stock price on the fair value of these awards decreased expense $3.4 million. Our financial security plan postretirement benefit obligations are determined using assumptions as of the end of the year. Actuarial gains or losses are recognized when incurred. Financial security plan postretirement benefit expense increased $2.2 million. Restructuring charges of $1.2 million were recorded in fiscal year 2012. These charges consist primarily of severance and benefit costs associated with various workforce reduction initiatives.Interest Interest expense incurred for the three-month period ended May 31, 2012 was $17.1 million, of which $9.1 million was capitalized in connection with our Hunter, Texas cement plant expansion project and $8.0 million was expensed. Interest expense incurred for the three-month period ended May 31, 2011 was $17.3 million, of which $7.7 million was capitalized in connection with our Hunter, Texas cement plant expansion project and $9.6 million was expensed. Interest expense incurred for fiscal year 2012 was $68.5 million, of which $33.7 million was capitalized in connection with our Hunter, Texas cement plant expansion project and $34.8 million was expensed. Interest expense incurred for fiscal year 2011 was $66.3 million, of which $18.7 million was capitalized in connection with our Hunter, Texas cement plant expansion project and $47.6 million was expensed. Interest expense incurred for the three-month period ended May 31, 2012 decreased $0.2 million from the prior year period primarily due to lower credit facility fees. Interest expense incurred for fiscal year 2012 increased $2.2 million from the prior fiscal year. The increase was primarily the result of higher average outstanding debt at higher interest rates due to the August 2010 refinancing of our senior notes. Interest expense to be capitalized in connection with our Hunter, Texas cement plant expansion project during fiscal year 2013 is expected to be between $30 million and $36 million.Loss on Debt Retirements On July 27, 2010, we commenced a cash tender offer for all of the outstanding $550 million aggregate principal amount of our 7.25% senior notes due 2013 and a solicitation of consents to amend the indenture governing the 7.25% notes. Pursuant to the tender offer and consent solicitation, we purchased $536.6 million aggregate principal amount of the 7.25% notes, and paid an aggregate of $547.7 million in purchase price and consent fees. On September 9, 2010, we redeemed the remaining $13.4 million aggregate principal amount of the 7.25% notes at a price of 101.813% of the principal amount thereof, plus accrued and unpaid interest on the 7.25% notes to the redemption date. We used the net proceeds from the issuance and sale of $650 million aggregate principal amount of our 9.25% senior notes to pay the purchase or redemption price of the 7.25% notes and the consent fees and to increase working capital.  We recognized a loss on debt retirement of $29.6 million representing $11.4 million in consent fees, redemption price premium and transaction costs and a write-off of $18.2 million of unamortized debt discount and original issuance costs associated with the 7.25% notes in fiscal year 2011.Income Taxes Our effective tax rate was 11.8% in 2012 and 39.2% in 2011. The primary reason that the effective tax rate differed from the 35% statutory corporate rate was due to additional percentage depletion that is tax deductible, the effect of qualified domestic production activities and state income taxes. 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   (Unaudited) CONSOLIDATED STATEMENTS OF OPERATIONS TEXAS INDUSTRIES, INC. AND SUBSIDIARIES         Three months ended May 31, Year ended May 31, In thousands except per share 2012 2011 2012 2011           NET SALES $174,556 $175,762 $647,003 $621,813           Cost of products sold 146,125 169,273 601,256 596,510 GROSS PROFIT 28,431 6,489 45,747 25,303           Selling, general and administrative 22,986 24,417 73,057 76,420 Restructuring charges --  --  3,216 --  Interest 8,025 9,616 34,835 47,583 Loss on debt retirements --  --  --  29,619 Other income (65,097) (13,578) (73,833) (21,512)   (34,086) 20,455 37,275 132,110 INCOME (LOSS) BEFORE INCOME TAXES 62,517 (13,966) 8,472 (106,807)           Income taxes (benefit) 2,304 (4,880) 996 (41,894) NET INCOME (LOSS) $60,213 $(9,086) $7,476 $(64,913)                     Net income (loss) per share         Basic $2.15 $(.33) $.27 $(2.33) Diluted $2.15 $(.33) $.27 $(2.33)           Average shares outstanding         Basic 27,975 27,869 27,914 27,825 Diluted 28,045 27,869 28,016 27,825                                                                                                                                                                                               (Unaudited) CONSOLIDATED BALANCE SHEETS TEXAS INDUSTRIES, INC. AND SUBSIDIARIES       May 31, In thousands 2012 2011       ASSETS     CURRENT ASSETS     Cash and cash equivalents $88,027 $116,432 Receivables – net 98,836 85,817 Inventories 129,514 140,646 Deferred income taxes and prepaid expenses  19,007  22,040 TOTAL CURRENT ASSETS 335,384 364,935       PROPERTY, PLANT AND EQUIPMENT     Land and land improvements 172,247 158,232 Buildings 51,982 59,320 Machinery and equipment 1,184,651 1,222,560 Construction in progress  437,166  357,638   1,846,046 1,797,750 Less depreciation and depletion  650,450  642,329   1,195,596 1,155,421 OTHER ASSETS     Goodwill 1,715 1,715 Real estate and investments 20,865 6,749 Deferred income taxes and other charges  23,368  22,191   45,948 30,655   $1,576,928 $1,551,011       LIABILITIES AND SHAREHOLDERS' EQUITY     CURRENT LIABILITIES     Accounts payable $64,825 $56,787 Accrued interest, compensation and other 61,317 58,848 Current portion of long-term debt  1,214  73 TOTAL CURRENT LIABILITIES 127,356 115,708       LONG-TERM DEBT 656,949 652,403       OTHER CREDITS 96,352 87,318       SHAREHOLDERS' EQUITY     Common stock, $1 par value; authorized 100,000 shares; issued     and outstanding 27,996 and 27,887 shares, respectively 27,996 27,887 Additional paid-in capital 488,637 481,706 Retained earnings 204,136 198,751 Accumulated other comprehensive loss  (24,498)  (12,762)    696,271    695,582   $1,576,928 $1,551,011 (Unaudited) CONSOLIDATED STATEMENTS OF CASH FLOWS TEXAS INDUSTRIES, INC. AND SUBSIDIARIES       Year Ended May 31, In thousands 2012 2011 2010         OPERATING ACTIVITIES       Net income (loss) $7,476 $(64,913) $(38,853) Adjustments to reconcile net income (loss) to cash provided by operating activities       Depreciation, depletion and amortization 60,952 64,297 63,925 Gains on asset disposals (67,610) (13,638) (1,350) Deferred income tax benefit (88) (42,875) (9,132) Stock-based compensation expense 2,387 5,581 5,097 Excess tax benefits from stock-based compensation --  --  (250) Loss on debt retirements --  29,619 --  Other – net 1,223 3,158 13,998 Changes in operating assets and liabilities       Receivables – net (13,303) 13,379 (5,421) Inventories 10,829 2,164 13,706 Prepaid expenses 1,385 1,301 387 Accounts payable and accrued liabilities 6,923 11,172 6,046 Net cash provided by operating activities 10,174 9,245 48,153         INVESTING ACTIVITIES       Capital expenditures - expansions (72,906) (25,430) (5,337) Capital expenditures – other (33,430) (20,253) (8,322) Proceeds from asset disposals 66,845 3,596 21,592 Investments in life insurance contracts 3,354 4,073 6,967 Other – net (245) 1,266 2,079 Net cash provided (used) by investing activities (36,382) (36,748) 16,979         FINANCING ACTIVITIES       Long-term borrowings --  650,000 --  Debt retirements (300) (561,627) (245) Debt issuance costs (1,829) (12,492) (2,552) Stock option exercises 2,023 1,462 893 Excess tax benefits from stock-based compensation --  --  250 Common dividends paid (2,091) (8,354) (8,328) Net cash provided (used) by financing activities (2,197) 68,989 (9,982) Increase (decrease) in cash and cash equivalents (28,405) 41,486 55,150         Cash and cash equivalents at beginning of year 116,432 74,946 19,796 Cash and cash equivalents at end of year $88,027 $116,432 $74,946CONTACT: T. Lesley Vines, Jr. Vice President Corporate Controller & Treasurer 972.647.6722 Email: lvines@txi.com