<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarter Ended
JUNE 30, 1999
Commission File Number 1-12984
(COMPANY LOGO)
CENTEX CONSTRUCTION PRODUCTS, INC.
A Delaware Corporation
IRS Employer Identification No. 75-2520779
3710 Rawlins, Suite 1600 LB 78
Dallas, Texas 75219
(214) 559-6514
The registrant 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 and has
been subject to such filing requirements for the past 90 days.
- --------------------------------------------------------------------------------
As of the close of business on August 5, 1999, 19,263,630 shares of Centex
Construction Products, Inc. common stock were outstanding.
- --------------------------------------------------------------------------------
<PAGE> 2
CENTEX CONSTRUCTION PRODUCTS, INC. AND SUBSIDIARIES
FORM 10-Q TABLE OF CONTENTS
JUNE 30, 1999
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C> <C>
PART I. FINANCIAL INFORMATION (UNAUDITED)
ITEM 1. Consolidated Financial Statements 1
Consolidated Statements of Earnings
for the Three Months Ended
June 30, 1999 and 1998 2
Consolidated Balance Sheets as of 3
June 30, 1999 and March 31, 1999
Consolidated Statements of Cash Flows
for the Three Months Ended
June 30, 1999 and 1998 4
Notes to Consolidated Financial
Statements 5-7
ITEM 2. Management's Discussion and Analysis of
Results of Operations and Financial
Condition 7-11
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 13
</TABLE>
<PAGE> 3
CENTEX CONSTRUCTION PRODUCTS, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
CONSOLIDATED FINANCIAL STATEMENTS
ITEM 1.
The consolidated financial statements include the accounts of Centex
Construction Products, Inc. and subsidiaries ("CXP" or the "Company"), and have
been prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the Company believes
that the disclosures are adequate to make the information presented not
misleading. It is suggested that these unaudited consolidated financial
statements be read in conjunction with the consolidated financial statements and
the notes thereto included in the Company's latest Annual Report on Form 10-K.
In the opinion of the Company, all adjustments necessary to present fairly the
information in the following unaudited consolidated financial statements of the
Company have been included. The results of operations for such interim periods
are not necessarily indicative of the results for the full year.
1
<PAGE> 4
CENTEX CONSTRUCTION PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED June 30,
------------------------------
1999 1998
------------ ------------
<S> <C> <C>
REVENUES
Cement ...................................... $ 41,855 $ 37,530
Gypsum Wallboard ............................ 43,567 32,161
Concrete and Aggregates ..................... 13,269 11,365
Other, net .................................. 205 404
Less: Intersegment Sales .................... (1,716) (1,614)
------------ ------------
97,180 79,846
------------ ------------
COSTS AND EXPENSES
Cement ...................................... 28,499 24,905
Gypsum Wallboard ............................ 23,295 20,000
Concrete and Aggregates ..................... 10,909 9,525
Less: Intersegment Purchases ................ (1,716) (1,614)
Corporate General & Administrative .......... 1,058 871
Interest Income, net ........................ (534) (802)
------------ ------------
61,511 52,885
------------ ------------
EARNINGS BEFORE INCOME TAXES .................. 35,669 26,961
Income Taxes ................................ 12,912 9,706
------------ ------------
NET EARNINGS .................................. $ 22,757 $ 17,255
============ ============
EARNINGS PER SHARE:
BASIC ....................................... $ 1.16 $ 0.81
============ ============
DILUTED ..................................... $ 1.16 $ 0.80
============ ============
AVERAGE SHARES OUTSTANDING:
BASIC ....................................... 19,584,870 21,425,045
============ ============
DILUTED ..................................... 19,669,600 21,583,986
============ ============
CASH DIVIDENDS PER SHARE ...................... $ 0.05 $ 0.05
============ ============
</TABLE>
See notes to unaudited consolidated financial statements.
2
<PAGE> 5
CENTEX CONSTRUCTION PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
<TABLE>
<CAPTION>
June 30, March 31,
ASSETS 1999 1999
- ------ --------- ---------
(Unaudited) (*)
<S> <C> <C>
Current Assets
Cash and Cash Equivalents .................. $ 53,188 $ 49,646
Accounts and Notes Receivable, net ......... 53,610 43,192
Inventories ................................ 32,851 33,030
--------- ---------
Total Current Assets ..................... 139,649 125,868
--------- ---------
Property, Plant and Equipment ................. 401,548 392,302
Less Accumulated Depreciation ............... (167,771) (163,745)
--------- ---------
Property, Plant & Equipment, net ......... 233,777 228,557
Notes Receivable, net ......................... 752 664
Other Assets .................................. 14,637 9,594
--------- ---------
$ 388,815 $ 364,683
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable ........................... $ 21,302 $ 18,276
Accrued Liabilities ........................ 41,961 40,849
Current Portion of Long-term Debt .......... 80 80
Income Taxes Payable ....................... 10,520 --
--------- ---------
Total Current Liabilities ................ 73,863 59,205
--------- ---------
Long-term Debt ................................ 400 400
Deferred Income Taxes ......................... 23,680 25,158
Stockholders' Equity -
Common Stock, Par Value $0.01;
Authorized 50,000,000 Shares;
Issued and Outstanding 19,457,308 and
19,744,465 Shares, respectively ...... 195 197
Capital in Excess of Par Value ............. 51,546 62,376
Retained Earnings .......................... 239,131 217,347
--------- ---------
Total Stockholders' Equity ................... 290,872 279,920
--------- ---------
$ 388,815 $ 364,683
========= =========
</TABLE>
* From audited financial statements.
See notes to unaudited consolidated financial statements.
3
<PAGE> 6
CENTEX CONSTRUCTION PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED June 30,
----------------------
1999 1998
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Earnings ................................ $ 22,757 $ 17,255
Adjustments to Reconcile Net Earnings
to Net Cash Provided by Operating
Activities -
Depreciation, Depletion and
Amortization ...................... 4,230 3,966
Deferred Income Tax
Benefit ........................... (1,478) (1,065)
Increase in Accounts and Notes
Receivable ............................... (10,506) (6,756)
Decrease in Inventories ..................... 179 1,639
Increase (Decrease) in Accounts Payable
and Accrued Liabilities .................. 4,138 (1,916)
(Increase) Decrease in
Other, net ............................... (5,041) 27
Increase in Income Taxes Payable ............ 10,520 8,839
-------- --------
24,799 21,989
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Property, Plant and Equipment
Additions, net ........................... (9,438) (7,764)
-------- --------
(9,438) (7,764)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends Paid To Shareholders .............. (987) (1,076)
Retirement of Common Stock .................. (11,276) (14,196)
Proceeds from Stock Option Exercises ........ 444 1,011
-------- --------
(11,819) (14,261)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ............................ 3,542 (36)
CASH AT BEGINNING OF PERIOD ................... 49,646 62,090
-------- --------
CASH AT END OF PERIOD ......................... $ 53,188 $ 62,054
======== ========
</TABLE>
See notes to unaudited consolidated financial statements.
4
<PAGE> 7
CENTEX CONSTRUCTION PRODUCTS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1999
(A) A summary of changes in stockholders' equity is presented below:
<TABLE>
<CAPTION>
Capital in
Common Excess of Retained
Stock Par Value Earnings Total
--------- --------- --------- ---------
(dollars in thousands)
<S> <C> <C> <C> <C>
Balance, March 31, 1998 $ 215 $ 130,413 $ 144,175 $ 274,803
Net Earnings -- -- 77,289 77,289
Stock Option Exercises -- 3,806 -- 3,806
Dividends To Shareholders -- -- (4,117) (4,117)
Retirement of Common Stock (18) (71,843) -- (71,861)
--------- --------- --------- ---------
Balance March 31, 1999 197 62,376 217,347 279,920
Net Earnings -- -- 22,757 22,757
Stock Option Exercises -- 444 -- 444
Dividends To Shareholders -- -- (973) (973)
Retirement of Common Stock (2) (11,274) -- (11,276)
--------- --------- --------- ---------
BALANCE JUNE 30, 1999 $ 195 $ 51,546 $ 239,131 $ 290,872
========= ========= ========= =========
</TABLE>
(B) Inventories:
Inventories are stated at the lower of average cost (including
applicable material, labor, depreciation, and plant overhead) or market.
Inventories consist of the following:
<TABLE>
<CAPTION>
Unaudited Audited
June 30, March 31,
1999 1999
------- ---------
(dollars in thousands)
<S> <C> <C>
Raw Materials and Materials-in-Progress $ 8,697 $ 9,124
Finished Cement 5,930 5,601
Aggregates 1,612 1,577
Gypsum Wallboard 1,675 1,289
Repair Parts and Supplies 14,350 14,770
Fuel and Coal 587 669
------- -------
$32,851 $33,030
======= =======
</TABLE>
5
<PAGE> 8
CENTEX CONSTRUCTION PRODUCTS, INC.
(C) Earnings Per Share:
In Fiscal 1998, the Company adopted the provisions of Statement of
Financial Accounting Standards No. 128, "Earnings Per Share" ("SFAS No. 128").
SFAS No. 128 simplified the standards for computing and presenting earnings per
share. Basic earnings per share is computed using the average number of common
shares outstanding in each of the three month periods ended June 30, 1999 and
1998. Diluted earnings per share for June 30, 1999 and 1998 assume the dilutive
impact of stock options. Options to purchase 318,000 shares of common stock at
an average price of $36.56 per share (expiring in April 2008) were outstanding
during the three months ended June 30, 1999 but were not included in the
computation of diluted earnings per share because they were anti-dilutive.
(D) Segment Information:
The Company operates in three business segments: Cement, Gypsum
Wallboard, and Concrete and Aggregates, with Cement and Gypsum Wallboard being
the Company's principal lines of business. These operations are conducted in the
United States and include the mining of limestone; the manufacture, production,
distribution and sale of Portland cement (a basic construction material which is
the essential binding ingredient in concrete); the mining of gypsum and the
manufacture and sale of gypsum wallboard; the sale of ready-mix concrete; and
the mining and sale of aggregates (crushed stone, sand and gravel). These
products are used primarily in commercial and residential construction, public
construction projects and projects to build, expand and repair roads and
highways. Intersegment sales are recorded at prices which approximate market
prices. Segment operating earnings represent revenues less direct operating
expenses, segment depreciation, and segment selling, general and administrative
expenses. Corporate general and administrative expense includes corporate
overhead and other administrative expenses.
The following table sets forth certain business segment information:
<TABLE>
<CAPTION>
For the Three
Months Ended
June 30,
------------------------
(dollars, in thousands)
1999 1998
------- -------
<S> <C> <C>
Revenues (External Customers):
Cement $40,273 $35,998
Gypsum Wallboard 43,567 32,161
Concrete and Aggregates 13,135 11,283
Other, net 205 404
------- -------
$97,180 $79,846
======= =======
Intersegment Sales:
Cement $ 1,582 $ 1,532
Concrete and Aggregates 134 82
------- -------
$ 1,716 $ 1,614
======= =======
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
For the Three
Months Ended
June 30,
------------------------
(dollars, in thousands)
1999 1998
-------- --------
<S> <C> <C>
Operating Income:
Cement $ 13,356 $ 12,625
Gypsum Wallboard 20,272 12,161
Concrete and Aggregates 2,360 1,840
Other, net 205 404
-------- --------
Total 36,193 27,030
Corporate General and Administrative (1,058) (871)
Interest Income, net 534 802
-------- --------
Earnings Before Income Taxes $ 35,669 $ 26,961
======== ========
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
RESULTS OF OPERATIONS
Benefitting from increased sales volume and higher net sales prices in
each of its business segments, particularly gypsum wallboard, Centex
Construction Products reported the highest financial results in its history for
the quarter ended June 30, 1999. Revenues for the first quarter of fiscal 2000
were an all-time high $97,180,000, a 22% increase over revenues of $79,846,000
for the same quarter last year. CXP's net earnings for the quarter ended June
30, 1999 were a record high $22,757,000, a 32% increase over $17,255,000 for the
same quarter last year. Diluted earnings per share for this year's quarter of
$1.16, also an all-time record high, increased 45% over $0.80 per share for the
same quarter in fiscal 1999. Diluted earnings per share for the quarter
increased more than net earnings due to fewer average shares outstanding in this
year's quarter. A strong national economy has resulted in U.S. cement and gypsum
wallboard consumption for the first six months of calendar 1999 exceeding last
year's same period record consumption.
The following table compares sales volume, average unit sales prices
and unit operating margins for the Company's operations:
<TABLE>
<CAPTION>
Gypsum
Cement Wallboard Concrete Aggregates
(Ton) (MSF) (Cubic Yard) (Ton)
------------------- ------------------- ------------------- -------------------
Quarter Ended June 30, 1999 1998 1999 1998 1999 1998 1999 1998
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales Volume(M) 594 551 300 282 195 184 764 636
Average Net Sales Price $ 70.41 $ 68.06 $145.32 $113.90 $ 51.33 $ 47.79 $ 4.28 $ 4.02
Operating Margin (1) $ 22.47 $ 22.90 $ 67.62 $ 43.07 $ 8.06 $ 7.47 $ 1.03 $ 0.73
</TABLE>
- ----------
(1) Segment operating margins represent revenues less direct operating expenses,
segment depreciation, and segment selling, general and administrative expenses.
7
<PAGE> 10
Cement revenues for the quarter totaled $41,855,000, up 12% over the
same quarter in the prior year. Operating earnings were $13,356,000, a 6%
increase over $12,625,000 for the same quarter last year. Higher sales volume
accounted for the net quarterly operating earnings gain. Sales volume of 594,000
tons for the quarter was 8% above the prior year's quarter. The sales volume
gain resulted from strong Western Region sales and 21,000 tons additional
purchased cement sales. Demand continues to be strong in all of the Company's
cement markets and the Company expects fiscal 2000 to be another "sold out"
year. As a result of improved pricing in the Texas and West Coast markets,
average cement sales prices improved $2.35 per ton over $68.06 per ton for the
same quarter last year. Cement cost of sales increased $2.78 per ton over $45.16
per ton for the prior year's comparable quarter due to higher maintenance costs
and increased purchased cement sales.
Gypsum wallboard revenues of $43,567,000 for the quarter increased 35%
over last year's same quarter revenues of $32,161,000. Operating earnings for
the quarter were $20,272,000, up 67% over $12,161,000 for the same period last
year. Increased sales volume and higher operating margins resulted in the
quarterly gain. Sales volume of 300 million square feet ("MMSF") for this year's
quarter was 6.5% greater than 282 MMSF sold during the prior year's quarter. As
with cement, the Company anticipates that its gypsum wallboard operations will
be "sold out" in fiscal 2000. National wallboard consumption for the first six
months of calendar 1999 was at a record pace as single-family home construction
remained strong. Supported by record demand and an April price increase, the
Company's average net sales price for the quarter improved to $145.32 per
thousand board feet ("MSF"), 28% higher than $113.90 per MSF for the same
quarter last year. Cost of sales for the quarter increased 10% to $77.70 per MSF
due to the Eagle plant being down to tie-in the expansion project and the
expensing of start-up costs.
Revenues from Concrete and Aggregates were $13,269,000 for the quarter
this year, up 17% from $11,365,000 for the same quarter a year ago. Concrete and
Aggregates reported operating earnings for the quarter of $2,360,000, up 28%
from $1,840,000 for the same quarter last year. Concrete earnings increased 14%
from last year's comparable quarter mainly due to a 7% gain in net sales price
and a 6% increase in sales volume. Concrete sales volume for the quarter was
195,000 cubic yards, compared to 184,000 cubic yards for the same quarter last
year. The gain was primarily attributable to strong sales at the California
concrete operation. The Company's average Concrete net sales price of $51.33 per
cubic yard for the quarter was 7% higher than $47.79 for the same quarter a year
ago. Aggregates earnings increased 71% from the prior year's quarter due to
increased sales volume and higher operating margins. The Company's Aggregates
operation reported sales volume of 764,000 tons for the quarter, 20% above sales
volume of 636,000 tons for the same quarter last year due to higher California
sales volume. Aggregates net sales price of $4.28 per ton increased 6% over
$4.02 per ton for the same quarter last year.
Other Income of $205,000 for the quarter decreased $199,000 from the
prior year's quarter mainly due to higher miscellaneous costs. Other income
includes clinker sales income, non-inventoried aggregates income, trucking
income, asset sales and other miscellaneous income and cost items.
Net interest income was $268,000 below last year's same quarter net
interest income of $802,000 due to lower cash balances during this year's
quarter.
8
<PAGE> 11
STOCK REPURCHASE PROGRAM
The Company's Board of Directors previously approved the repurchase of
up to five million shares of the Company's common stock. As a result of 508,200
shares repurchased since March 31, 1999 from the public, Centex Corporation now
owns approximately 62.0% of the outstanding shares of CXP common stock. There
are approximately 623,000 shares remaining under the Company's current
repurchase authorization.
FINANCIAL CONDITION
The Company has a four-year $35 million unsecured revolving credit
facility that expires on March 31, 2001 to finance its working capital and
capital expenditures requirements. Based on its financial condition and a
virtually debt free balance sheet at June 30, 1999, CXP believes that its
internally generated cash flow coupled with funds available under the credit
facilities will enable CXP to provide adequately for its current operations and
future growth.
Working capital at June 30, 1999 was $65.8 million as compared to $66.7
million at March 31, 1999. The decrease resulted mainly from a $10.4 million
increase in accounts receivable offset by a $10.5 million increase in income
taxes payable. Stock repurchases during the quarter amounted to $11.3 million.
Capital spending of $9.4 million for this year's quarter was up over prior
year's quarter as a result of expenditures relating to the completion of the
Eagle wallboard plant and Illinois cement plant expansion projects. Cash
payments for income taxes totaled $1.7 million and $702,000 in the first
quarters of fiscal 2000 and 1999, respectively.
YEAR 2000
The Company has a variety of operating systems, computer software
program applications, computer hardware equipment (collectively, "IT Systems")
and other equipment with embedded electronic circuits, including applications
that the Company uses in its administrative functions and in the operations of
its various subsidiaries (collectively, the "Non-IT Systems" and together with
the IT Systems, the "Systems"). Because resolution of Year 2000 issues is
considered a priority of the Company, the Company created a Year 2000 Task Force
to oversee the Company's Year 2000 compliance. The Task Force, consisting of
members of the Company's management and accounting, financial planning, legal,
and internal audit departments, has oversight of the information systems
managers and other administrative personnel charged with implementing the
Company's Year 2000 compliance program (collectively, the "Year 2000 Compliance
Team").
The Task Force has surveyed the Year 2000 Compliance Team regarding the
Year 2000 compliance of the Systems. The surveys indicated that a small number
of the Systems are not Year 2000 compliant. Affected Systems are primarily
Non-IT Systems that are not critical to the material operations of the Company
and its subsidiaries. The Company and its subsidiaries have replaced many of
these Systems and are in the process of replacing others. Substantially all
non-compliant Systems that are material will be replaced and the replacement
Systems tested no later than the second quarter of fiscal 2000 (i.e. the quarter
ending September 30, 1999). In substantially all of the cases, the replacement
or upgrading of, or other changes to, the non-compliant Systems (i) has occurred
or will occur for reasons unrelated to the non-compliance of the Systems and
(ii) has not been accelerated as a result of the non-compliance of such Systems.
To date, the timetable for addressing non-compliance of Systems has been
substantially the same for both IT Systems and Non-IT Systems. The Company
anticipates that this will continue to be the case as it sees its Year 2000
program through its completion.
9
<PAGE> 12
The Company does not believe (i) that the non-compliant Systems pose a
material risk to the financial condition of the Company as a whole, or of the
individual operations or subsidiaries that currently have non-compliant Systems
or (ii) that the cost of replacing, upgrading or otherwise changing the
non-compliant Systems is material to the Company as a whole, or to the
individual subsidiaries. The Company has used, and believes that it will be able
to continue to use, internally generated cash to fund the correction of Systems
that are not compliant.
In order to further confirm the Company's Year 2000 readiness, the
Company has engaged the services of a third-party consulting firm to evaluate
its Year 2000 readiness program. The consulting firm's review was completed
during the fourth quarter of fiscal 1999. The firm's conclusions are consistent
with the Company's internal determinations of its Year 2000 readiness. The
Company is implementing the consulting firm's recommendations for achieving Year
2000 compliance.
The Task Force is currently developing its Year 2000 contingency plan.
The Task Force has completed many of the preliminary components of the
contingency plan and anticipates that the entire contingency plan will be
completed no later than September 30, 1999.
As a result of the Company's Year 2000 compliance program, the Company
believes that it is highly unlikely that any interruption to its operations
resulting from a compliance failure will have a material adverse effect on the
Company's operations or financial condition. Achieving Year 2000 compliance is
dependent on many factors, however, and some of these factors are not completely
within the Company's control. Although the Company and its subsidiaries obtain
information, materials and services from numerous sources and provide goods and
services to numerous customers, the failure of these third-parties (including
U.S. government agencies) to achieve Year 2000 readiness may adversely impact
the Company's operations.
The Company believes the most likely Year 2000 worst-case scenario
would be the failure of some significant vendors, subcontractors or third
parties to achieve compliance, resulting in a slowdown of the Company's
operations. The Company is not aware of any such third parties that are not Year
2000 compliant. In order to address the potential non-compliance of third
parties affecting the Company's operations, the Company has surveyed its largest
customers, subcontractors, and vendors by sending questionnaires or requests for
disclosure of Year 2000 readiness. To date, the Company has received responses
from a majority of those surveyed. The completed surveys indicate material Year
2000 compliance by the responding parties. With respect to unanswered surveys,
the Company will continue to follow-up throughout the remainder of 1999 either
through a second request or direct conversations with those parties whose
operations are material to the Company to ascertain the Year 2000 readiness of
such parties.
Year 2000 Forward-Looking Statements
Certain statements in this section, other than historical information,
are "forward-looking" statements. See "Forward-Looking Statements," below. These
statements involve risks and uncertainties relative to the Company's ability to
assess and remediate any Year 2000 compliance issues, the ability of third
parties to correct material non-compliant systems and the Company's assessment
of the Year 2000 issue's impact on its financial results and operations.
10
<PAGE> 13
OTHER DEVELOPMENTS
The Eagle Gypsum wallboard plant was down from April 6, 1999 to April
24, 1999 to tie in the plant expansion project. The project, which was ahead of
schedule and on budget, added 240 MMSF or about 60% to the plant's existing
annual capacity. The Illinois Cement plant's 4,000 horsepower finish mill
project was completed during the quarter. This project was also ahead of
schedule and on budget. CXP completed during the quarter the first step to
expand its presence in the construction materials industry by acquiring certain
aggregates interests outside Austin, Texas.
OUTLOOK
Positive market fundamentals continue to sustain the high level of
demand for its products, and the Company anticipates a "sold out" position again
in fiscal 2000. As a result, given the current and anticipated level of pricing,
the Company expects to post a sixth consecutive year of record earnings for
fiscal 2000.
FORWARD-LOOKING STATEMENTS
Certain sections of this Management's Discussion and Analysis of
Results of Operations and Financial Condition contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, Section 21E of
the Securities Exchange Act of 1934 and the Private Litigation Reform Act of
1995. Forward-looking statements may be identified by the context of the
statement and generally arise when the Company is discussing its beliefs,
estimates or expectations. These statements involve known and unknown risks and
uncertainties that may cause the Company's actual results to be materially
different from planned or expected results. Those risks and uncertainties
include, but are not limited to, the cyclical and seasonal nature of the
Company's business, public infrastructure expenditures, adverse weather,
availability of raw materials, unexpected operational difficulties, governmental
regulation and changes in governmental and public policy, changes in economic
conditions specific to any one or more of the Company's markets, competition,
announced increases in capacity in the gypsum wallboard and cement industries,
general economic conditions, interest rates and the Year 2000 compliance
readiness of the Company's suppliers and service producers. Investors should
take such risks and uncertainties into account when making investment decisions.
These and other factors are described in the Annual Report on Form 10-K for
Centex Construction Products, Inc. for the fiscal year ended March 31, 1999. The
report is filed with the Securities and Exchange Commission. The Company
undertakes no obligation to update publicly any forward-looking statement as a
result of new information, future events or other factors.
11
<PAGE> 14
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 - Financial Data Schedule
(b) Reports on Form 8-K
None
All other items required under Part II are omitted because they are not
applicable.
12
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CENTEX CONSTRUCTION PRODUCTS, INC.
--------------------------------------
Registrant
August 5, 1999 /s/ RICHARD D. JONES, JR.
---------------------------------------------
Richard D. Jones, Jr.
President and Chief Executive Officer
August 5, 1999 /s/ ARTHUR R. ZUNKER, JR.
---------------------------------------------
Arthur R. Zunker, Jr.
Senior Vice President-Finance and Treasurer
(principal financial and
chief accounting officer)
<PAGE> 16
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CENTEX
CONSTRUCTION PRODUCTS, INC.'S JUNE 30, 1999, FORM 10-Q AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
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0
0
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