1. Highlights of the Ready Mixed Concrete Industry Data Report Presented to the 48 th Annual BAC NRMCA Fall 2006 Conference & Expo William B. Allen & Bruce Strickland October 16, 2006

2. Benchmarking Assists in analyzing the cost of doing business Assists in analyzing the efficiency of an operation Allows Companies to Compare their Operations to their Peers

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

4. 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 Highest & Lowest Quartile

9. Ready Mixed Concrete Profitability $ Per Yard

37. MODULE III: SESSION 2 OH37 Definition of Break-Even: The Point At Which All Fixed Costs Are Paid For Out Of Contribution And Future Contribution Is Profit SALES VOLUME & BREAK-EVEN ANALYSIS

38. MODULE III: SESSION 2 OH38  BE PT = Fixed Cost Divided By Margin Data Required Current Total Fixed Costs = $5,560,000 Current Avg Selling Price = $77.89/Yd Current Avg Variable Cst = $60.50/Yd Current Margin = $17.39/Yd Be Pt In Yds=FC/Unit Margin Be Pt In $ = FC/Margin Ratio $5,560,000/$17.39 = 319,723 Yds $5,560,000/.224 = $24,821,428 BREAK-EVEN POINT For Average Company Producing 400,000/yds

50. 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