Texas Lehigh Cement Company LP

Statements of Operations

Year ended December 31,

2009

Net sales
Cost of goods sold
Gross margin
Selling, general, and administrative expenses

$ 124,288,747
70,669,128
53,619,619
2,897,854

Operating income
Interest and other income
Equity in loss of joint venture
Texas margin tax
Net income

50,721,765
335,956
(1,873)
(492,948)
$ 50,562,900

See notes to financial statements.

67

2008

$ 189,111,196
115,934,362
73,176,834
5,079,855

68,096,979
801,063
(3,311)
(695,723)
68,199,008

2007

$ 177,340,557
105,717,188
71,623,369
4,719,573
66,903,796
811,284
(63,128)
(703,000)
$ 66,948,952

Texas Lehigh Cement Company LP

Balance Sheets
December 31,
2009
ASSETS
Current assets:
Cash and cash equivalents
Receivables:
Trade accounts receivable, net of allowance for doubtful
accounts and discounts of $537,200 and $938,071
Inventories:
Cement
Raw materials and materials-in-process
Parts and supplies

Prepaid assets
Total current assets
Property, plant, and equipment:
Land, including quarry
Cement plant
Mobile equipment and other
Furniture and fixtures
Construction-in-progress
Less accumulated depreciation and depletion

Investment in joint venture

Note receivable
Total assets

LIABILITIES AND PARTNERS CAPITAL

Current liabilities:
Accounts payable
Accrued liabilities
Due to affiliates
Total liabilities

Commitments and contingencies

Partners capital:
General Partners Capital:
TLCC GP LLC
Lehigh Portland Holdings, LLC
Limited Partners Capital:
TLCC LP LLC
Lehigh Portland Investments, LLC
Total partners capital
Total liabilities and partners capital

See notes to financial statements.

68

2008

1,634,212

6,399,572

17,495,900

21,688,271

2,814,526
4,587,441
11,608,791
19,010,758

3,926,033
3,882,046
10,510,102
18,318,181

893,389
39,034,259

901,289
47,307,313

3,752,219
104,853,887
4,700,141
421,025
527,648
114,254,920
(97,596,105)
16,658,815

3,752,219
103,854,819
4,696,930
554,783
342,640
113,201,391
(94,551,966)
18,649,425

20,592,224
742,164
77,027,462

23,294,097
798,020
90,048,855

4,110,536
7,001,792
134,434
11,246,762

6,900,035
9,188,927
161,929
16,250,891

65,781
65,781

73,798
73,798

32,824,569
32,824,569
65,780,700
77,027,462

36,825,184
36,825,184
73,797,964
90,048,855

Texas Lehigh Cement Company LP

Statements of Changes in Partners Capital

General Partners Capital

Limited Partners Capital

Lehigh

Balance at December 31, 2006 (unaudited)

Net income for the year

Portland

GP
LLC

84,439

TLCC

Portland

Holdings,

LP

Investments,

LLC

LLC

LLC

66,949

Other comprehensive loss

Distribution of earnings

Lehigh

TLCC

84,439

$ 42,135,067

66,949

33,407,527

42,135,067
33,407,527

Total

84,439,012
66,948,952

(18)

(18)

(9,003)

(9,003)

(18,042)

(74,000)

(74,000)

(36,926,000)

(36,926,000)

(74,000,000)

Balance at December 31, 2007

77,370

77,370

38,607,591

38,607,591

77,369,922

Net income for the year

68,199

68,199

34,031,305

34,031,305

68,199,008

Other comprehensive loss

Distribution of earnings
Balance at December 31, 2008
Net income for the year
Other comprehensive gain
Distribution of earnings
Balance at December 31, 2009

(1,271)

(1,271)

(634,212)

(634,212)

(1,270,966)

(70,500)

(70,500)

(35,179,500)

(35,179,500)

(70,500,000)

73,798

73,798

36,825,184

36,825,184

73,797,964

50,563

50,563

25,230,887

25,230,887

50,562,900

420

420

209,498

209,498

(59,000)

(59,000)

(29,441,000)

(29,441,000)

(59,000,000)

65,781

$ 32,824,569

$ 32,824,569

$ 65,780,700

65,781

See notes to financial statements.

69

419,836

Texas Lehigh Cement Company LP

Statements of Cash Flows

2009

CASH FLOWS FROM OPERATING ACTIVITIES

Net income
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and depletion
Gain on sales of equipment
Equity in loss of unconsolidated joint venture
Changes in assets and liabilities:
Trade accounts receivable
Notes receivable
Inventories
Prepaid assets
Accounts payable
Accrued liabilities and due to affiliates
Net cash provided by operating activities

50,562,900

Year ended December 31,

2008

68,199,008

2007

66,948,952

3,585,216
(3,925)
1,873

4,121,831
(157,177)
3,311

4,705,343
(10,727)
63,128

4,192,371
55,856
(692,577)
7,900
(2,789,499)
(1,794,794)
53,125,321

2,020,422
(315,583)
(4,463,453)
(85,805)
(906,320)
704,036
69,120,270

(4,229,503)
11,769
2,400,804
157,118
1,740,047
1,266,924
73,053,855

(1,597,456)
2,700,000
6,775
1,109,319

(1,566,666)
1,200,000
686,825
320,159

(449,944)
12,755
(437,189)

(59,000,000)
(59,000,000)

(70,500,000)
(70,500,000)

(74,000,000)
(74,000,000)

(4,765,360)
6,399,572
1,634,212

(1,059,571)
7,459,143
6,399,572

(1,383,334)
8,842,477
7,459,143

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant, and equipment

Distributions from joint venture
Proceeds from sale of equipment
Net cash provided by (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES

Distributions of earnings
Net cash used in financing activity
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

See notes to financial statements.

70