Highlights of the Ready Mixed Concrete Industry Data Report Presented to the 47th Annual Business Administration Conference by William B. Allen Allen - Villere Partners October 17, 2005

Benchmarking Assists in helping to analyze the cost of doing business Assists in helping to analyze the efficiency of an operation

Surveys Available Industry Data Survey Fleet Benchmarking Survey Safety Benchmarking Survey Environmental Costs Survey Compensation Survey

The Industry Data Survey Company Size Analysis By % Sales & $-Per-Yd Regional Analysis By % Sales & $-Per-Yd Rural, Urban & Mixed Region Analyses Five Year Trend Analysis

Ready Mixed Concrete Profitability $ Per Yard The profitability of the industry has changed as well; The 2001 NRMCA Financial Industry Data Survey shows that pretax profit on a yard of concrete has risen from 5 cents per yard in 1991 to $4.27 in 2000; demonstrating that the industry has improved its understanding of business operations.

Growth Comparison YTY % Change

Profit vs Sales Price

Price vs Cost

Profit includes $0.17 Net Other Income

Profit includes $0.25 of Net Other Income

SP up $0.83 VC up $0.94

TABLE 1: Efficiency Ratios by Company Size Item <100K 100-299K 300-500K >500K Typical Leader DSO 43.2 49.9 46.8 52.2 51.6 43.3 Yds/Hour 2.2 2.1 3.0 3.2 Yds/Truck/Yr 3,415 4,892 5,186 5,976 5,779 6,112 Sales/Employee $160,416 $195,036 $233,996 $227,896 $225,230 $244,609 VarDel/minute $0.57 $0.47 $0.69 $0.66 $0.65 $0.62

TABLE 2: Efficiency Ratios by Regions Item NE/MA SE NC SC GL RM PNW PSW Typical Leader DSO 63.2 45.1 45.0 51.3 65.3 38.3 58.7 45.8 51.6 43.3 Yds/Hour 2.7 2.9 3.5 3.2 2.6 3.8 3.0 Yds/Truck/Yr 4,771 5,937 4,892 6,662 4,767 6,192 5,489 7,010 5,779 6,112

Summary What Can We Do To Improve Our Bottom Line? Compare Strengths & Weaknesses to Peers Improve Your Management Financial Cost Data (Use NRMCA’s Chart of Accounts) Know Your Break-Even Point Cost Out Jobs (Use NRMCA’s Job Cost Program) Price Jobs Based On A Desired Return