UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended February 28, 2003
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number 1-4887
TEXAS INDUSTRIES, INC.
(Exact name of registrant as specified in the charter)
| Delaware |
75-0832210 | |
| (State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
| 1341 West Mockingbird Lane, Suite 700W, Dallas, Texas |
75247-6913 | |
| (Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code (972) 647-6700
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
As of April 7, 2003, 21,061,412 shares of Registrant’s Common Stock, $1.00 par value, were outstanding.
Page 1 of 25
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
| PART I. FINANCIAL INFORMATION |
Page | |||
| Item 1. |
Financial Statements |
|||
| Consolidated Balance Sheets – February 28, 2003 and May 31, 2002 |
3 | |||
| 4 | ||||
| Consolidated Statements of Cash Flows—nine months ended February 28, 2003 and February 28, 2002 |
5 | |||
| 6 | ||||
| 13 | ||||
| Item 2. |
Management’s Discussion and Analysis of Operating Results and Financial Condition |
14 | ||
| Item 3. |
— | |||
| Item 4. |
20 | |||
| PART II. OTHER INFORMATION |
||||
| Item 1. |
20 | |||
| Item 6. |
20 | |||
-2-
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
| (Unaudited) February 28, |
May 31, |
|||||||
| In thousands |
2003 |
2002 |
||||||
| ASSETS |
||||||||
| CURRENT ASSETS |
||||||||
| Cash |
$ |
5,494 |
|
$ |
7,430 |
| ||
| Receivables |
|
36,947 |
|
|
56,138 |
| ||
| Inventories |
|
283,988 |
|
|
276,482 |
| ||
| Deferred taxes and prepaid expenses |
|
38,877 |
|
|
31,192 |
| ||
| TOTAL CURRENT ASSETS |
|
365,306 |
|
|
371,242 |
| ||
| OTHER ASSETS |
||||||||
| Goodwill |
|
146,474 |
|
|
146,474 |
| ||
| Real estate and investments |
|
43,322 |
|
|
41,524 |
| ||
| Deferred charges and intangibles |
|
24,282 |
|
|
29,679 |
| ||
|
|
214,078 |
|
|
217,677 |
| |||
| PROPERTY, PLANT AND EQUIPMENT |
||||||||
| Land and land improvements |
|
216,666 |
|
|
209,557 |
| ||
| Buildings |
|
103,595 |
|
|
102,358 |
| ||
| Machinery and equipment |
|
1,725,094 |
|
|
1,779,863 |
| ||
| Construction in progress |
|
50,429 |
|
|
45,450 |
| ||
|
|
2,095,784 |
|
|
2,137,228 |
| |||
| Less allowances for depreciation |
|
944,414 |
|
|
952,870 |
| ||
|
|
1,151,370 |
|
|
1,184,358 |
| |||
| $ |
1,730,754 |
|
$ |
1,773,277 |
| |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES |
||||||||
| Trade accounts payable |
$ |
120,049 |
|
$ |
111,037 |
| ||
| Accrued interest, wages and other items |
|
46,393 |
|
|
48,363 |
| ||
| Current portion of long-term debt |
|
85,232 |
|
|
9,228 |
| ||
| TOTAL CURRENT LIABILITIES |
|
251,674 |
|
|
168,628 |
| ||
| LONG-TERM DEBT |
|
382,490 |
|
|
474,963 |
| ||
| DEFERRED INCOME TAXES AND OTHER CREDITS |
|
155,334 |
|
|
167,276 |
| ||
| COMPANY-OBLIGATED MANDATORILY REDEEMABLE PREFERRED SECURITIES OF SUBSIDIARY HOLDING SOLELY COMPANY CONVERTIBLE DEBENTURES |
|
199,937 |
|
|
200,000 |
| ||
| SHAREHOLDERS’ EQUITY |
||||||||
| Common stock, $1 par value |
|
25,067 |
|
|
25,067 |
| ||
| Additional paid-in capital |
|
260,371 |
|
|
260,091 |
| ||
| Retained earnings |
|
547,718 |
|
|
569,096 |
| ||
| Accumulated other comprehensive loss |
|
(648 |
) |
|
— |
| ||
| Cost of common stock in treasury |
|
(91,189 |
) |
|
(91,844 |
) | ||
|
|
741,319 |
|
|
762,410 |
| |||
| $ |
1,730,754 |
|
$ |
1,773,277 |
| |||
See notes to consolidated financial statements.
-3-
(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
| Three months ended February 28, |
Nine months ended February 28, |
|||||||||||||||
| In thousands except per share |
2003 |
2002 |
2003 |
2002 |
||||||||||||
| NET SALES |
$ |
273,629 |
|
$ |
303,502 |
|
$ |
923,072 |
|
$ |
1,000,551 |
| ||||
| COSTS AND EXPENSES (INCOME) |
||||||||||||||||
| Cost of products sold |
|
265,387 |
|
|
252,943 |
|
|
850,333 |
|
|
848,091 |
| ||||
| Selling, general and administrative |
|
23,394 |
|
|
30,422 |
|
|
71,227 |
|
|
86,643 |
| ||||
| Interest |
|
8,481 |
|
|
10,138 |
|
|
25,873 |
|
|
33,199 |
| ||||
| Other income |
|
(447 |
) |
|
(1,543 |
) |
|
(2,953 |
) |
|
(15,950 |
) | ||||
|
|
296,815 |
|
|
291,960 |
|
|
944,480 |
|
|
951,983 |
| |||||
| INCOME (LOSS) BEFORE THE FOLLOWING ITEMS |
|
(23,186 |
) |
|
11,542 |
|
|
(21,408 |
) |
|
48,568 |
| ||||
| Income taxes (benefit) |
|
(7,755 |
) |
|
3,637 |
|
|
(10,126 |
) |
|
15,487 |
| ||||
|
|
(15,431 |
) |
|
7,905 |
|
|
(11,282 |
) |
|
33,081 |
| |||||
| Dividends on preferred securities—net of tax |
|
(1,787 |
) |
|
(1,788 |
) |
|
(5,361 |
) |
|
(5,363 |
) | ||||
| NET INCOME (LOSS) |
$ |
(17,218 |
) |
$ |
6,117 |
|
$ |
(16,643 |
) |
$ |
27,718 |
| ||||
| BASIC |
||||||||||||||||
| Average shares |
|
21,129 |
|
|
21,077 |
|
|
21,119 |
|
|
21,053 |
| ||||
| Earnings (loss) per share |
$ |
(.81 |
) |
$ |
.29 |
|
$ |
(.79 |
) |
$ |
1.32 |
| ||||
| DILUTED |
||||||||||||||||
| Average shares |
|
21,129 |
|
|
21,525 |
|
|
21,119 |
|
|
21,468 |
| ||||
| Earnings (loss) per share |
$ |
(.81 |
) |
$ |
.28 |
|
$ |
(.79 |
) |
$ |
1.29 |
| ||||
| Cash dividends per share |
$ |
.075 |
|
$ |
.075 |
|
$ |
.225 |
|
$ |
.225 |
| ||||
See notes to consolidated financial statements.
-4-
(Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
TEXAS INDUSTRIES, INC. AND SUBSIDIARIES
| Nine months ended February 28, |
||||||||
| In thousands |
2003 |
2002 |
||||||