1. The Industry Leaders vs. The Laggards: A Look at the Substantial Differences Presented to the Systech Customer Conference by Pierre G. Villere Allen-Villere Partners March 14, 2007

2. Review Of Changes Since The Last Survey As in the past, the Industry Data Survey measured the Upper Quartile as compared to the Typical Member. This year, the IDS accountants captured the data on the Lowest Quartile as well, giving us a opportunity to examine the range of financial performance in the industry for the first time. As in the past, the Industry Data Survey measured the Upper Quartile as compared to the Typical Member. This year, the IDS accountants captured the data on the Lowest Quartile as well, giving us a opportunity to examine the range of financial performance in the industry for the first time. The Industry Leaders (the Upper Quartile) have further expanded the margin of lead over the Typical Member compared to the previous year, and they dramatically outperform the Laggards (the Lowest Quartile), as measured in Profit Per Yard. The Industry Leaders (the Upper Quartile) have further expanded the margin of lead over the Typical Member compared to the previous year, and they dramatically outperform the Laggards (the Lowest Quartile), as measured in Profit Per Yard.

3. Review Of Changes Since The Last Survey As in prior years, the Upper Quartile rose to the top due almost exclusively to dramatic improvements in Net Sales Price. As in prior years, the Upper Quartile rose to the top due almost exclusively to dramatic improvements in Net Sales Price. Their performance in Net Sales Price exceeds the Typical Member by $4.20, and outpaces the Lowest Quartile by $12.87, accounting for nearly all of their profit advantage. Their performance in Net Sales Price exceeds the Typical Member by $4.20, and outpaces the Lowest Quartile by $12.87, accounting for nearly all of their profit advantage. This key finding speaks to the importance of the Selling Price in determining the ultimate profitability of a producer. Those who enjoy the higher per-yard prices outpace the rest of the industry in the all-important measure of Profit Per Yard. This key finding speaks to the importance of the Selling Price in determining the ultimate profitability of a producer. Those who enjoy the higher per-yard prices outpace the rest of the industry in the all-important measure of Profit Per Yard.

4. Review Of Changes Since The Last Survey We believe that the Lowest Quartile may have issues with pricing strength in their market, as dramatically lower materials costs may be down- drafting the selling price in their markets. We believe that the Lowest Quartile may have issues with pricing strength in their market, as dramatically lower materials costs may be down- drafting the selling price in their markets. Conversely, the Upper Quartile may be selling higher-spec jobs, combined with vertical integration that drives top-dollar transfer costs in many cases. Conversely, the Upper Quartile may be selling higher-spec jobs, combined with vertical integration that drives top-dollar transfer costs in many cases.

5. Differences in Performance: This Year vs Last

6. Differences in Performance: This Year vs. Last

7. The Upper Quartile in 2005: How Did They Distinguish Themselves? Where the Upper Quartile Has Excelled Value-Added Revenue Products Value-Added Revenue Products Direct Fixed Costs - Plant Direct Fixed Costs - Plant Where the Lowest Quartile Has Excelled Material Costs Material Costs General & Administrative Expenses General & Administrative Expenses Where the Lowest Quartile Has Lagged Revenue – Total Average Selling Price Revenue – Total Average Selling Price Variable Delivery Costs Variable Delivery Costs

8. The Upper Quartile: Where They Excel Value-Added Products Value-Added Products Direct Fixed Costs - Plant Direct Fixed Costs - Plant

9. The Upper Quartile: Where They Excel Value – Added Products The Upper Quartile was able to increase their total average selling price by charging more for Value-Added product offerings (products other than yards of concrete), or miscellaneous charges The Upper Quartile was able to increase their total average selling price by charging more for Value-Added product offerings (products other than yards of concrete), or miscellaneous charges

10. The Upper Quartile: Where They Excel Value – Added Products The Upper Quartile charged $3.57 per yard more for Value-Added products when compared the Lowest Quartile They also charged $2.11 per yard more for Fuel Surcharges when compared to the Lowest Quartile, for a total advantage of $5.68

11. The Upper Quartile: Where They Excel

12. Direct Fixed Costs - Plant The Upper Quartile paid $0.97 less for these costs when compared to the Lowest Quartile

13. The Upper Quartile: Where They Excel

14. Where the Lowest Quartile Companies Have Excelled Material Costs Material Costs General & Administrative Expenses General & Administrative Expenses

15. Where the Lowest Quartile Companies Have Excelled Material Costs The Lowest Quartile spent $5.57 less when compared to the Upper Quartile. The Lowest Quartile spent $5.57 less when compared to the Upper Quartile. Key factors contributing to comparison include: Key factors contributing to comparison include: Cement costs were $1.56 less when compared to the Upper Quartile Cement costs were $1.56 less when compared to the Upper Quartile Coarse Aggregates were $2.10 less when compared to the Upper Quartile, and Fine Aggregates were $1.62 less Coarse Aggregates were $2.10 less when compared to the Upper Quartile, and Fine Aggregates were $1.62 less

16. Where the Lowest Quartile Companies Have Excelled

17. General & Administrative Expenses The Lowest Quartile was $0.35 less when compared to the Upper Quartile The Lowest Quartile was $0.35 less when compared to the Upper Quartile A key factor contributing to their advantage is that Other General & Administrative Expenses were $1.15 less when compared to the Upper Quartile A key factor contributing to their advantage is that Other General & Administrative Expenses were $1.15 less when compared to the Upper Quartile

18. Where the Lowest Quartile Companies Have Excelled

19. Where the Lowest Quartile Has Lagged Revenue – Total Average Selling Price Revenue – Total Average Selling Price Variable Delivery Costs Variable Delivery Costs

20. Where the Lowest Quartile Has Lagged Revenue – Total Average Selling Price The Lowest Quartile had a Selling Price of $12.87 less when compared to the Upper Quartile. The Lowest Quartile had a Selling Price of $12.87 less when compared to the Upper Quartile. Key factors contributing to comparison include: Key factors contributing to comparison include: Value-Added products was $3.57 per yard less when compared to the Upper Quartile Value-Added products was $3.57 per yard less when compared to the Upper Quartile Fuel Surcharge revenue was $2.11 per yard less when compared to the Upper Quartile Fuel Surcharge revenue was $2.11 per yard less when compared to the Upper Quartile

21. Where the Lowest Quartile Has Lagged

22. Variable Delivery Costs The Lowest Quartile spent $1.20 more when compared to the Upper Quartile The Lowest Quartile spent $1.20 more when compared to the Upper Quartile Key factors contributing to comparison include: Key factors contributing to comparison include: Fringes were $0.36 more when compared to the Upper Quartile Fringes were $0.36 more when compared to the Upper Quartile Repairs & Maintenance was $0.49 more… Repairs & Maintenance was $0.49 more…

23. Where the Lowest Quartile Has Lagged

24. …And a Final Look at The IDS By Size and Region Like every year, there are certain trends we see with regards to size and regions Like every year, there are certain trends we see with regards to size and regions This year, the comparison of the Upper to the Lower Quartiles makes this illustration even more interesting This year, the comparison of the Upper to the Lower Quartiles makes this illustration even more interesting

25. Profit Model Ratios Pre-Tax Profit Margin % Pre-Tax Profit Margin % Asset Turnover Asset Turnover Return on Assets (ROA) % Return on Assets (ROA) % Return on Equity (ROE) % Return on Equity (ROE) %

26. Profit as a Percentage of Sales by Company Size

27. Profit as a Percentage of Sales by Regions

28. Asset Turnover by Company Size

29. Asset Turnover by Region

30. Return on Assets (ROA) % by Company Size

31. Return on Assets (ROA) % by Regions

32. Return on Equity (ROE) % by Company Size

33. Return on Equity (ROE) % by Regions

34. Summary The Industry recovered dramatically in 2005 The Industry recovered dramatically in 2005 Profit margins have skyrocketed, more than doubling over 2004 Profit margins have skyrocketed, more than doubling over 2004 The Typical Member enjoyed profits of $6.14 per yard, setting a new record for the industry, and substantially exceeding the prior record of $5.27 set in 1999 The Typical Member enjoyed profits of $6.14 per yard, setting a new record for the industry, and substantially exceeding the prior record of $5.27 set in 1999

35. Summary The Upper Quartile saw even greater prosperity, with profits of $9.62 per yard, nearly double the 1999 record The Upper Quartile saw even greater prosperity, with profits of $9.62 per yard, nearly double the 1999 record The Upper Quartile also expanded their profit advantage over the Typical Member as a percentage over last year The Upper Quartile also expanded their profit advantage over the Typical Member as a percentage over last year The Lowest Quartile suffered, with a profit of $0.89 per yard, illustrating the struggle of competing in markets with weak pricing The Lowest Quartile suffered, with a profit of $0.89 per yard, illustrating the struggle of competing in markets with weak pricing

36. Our Peek Into 2006 The slowdown in housing could lead us to a flat year in terms of financial performance The slowdown in housing could lead us to a flat year in terms of financial performance Pricing strength and growth has ebbed in parts of the country Pricing strength and growth has ebbed in parts of the country Despite the housing slowdown, commercial and public work is still strong, and is picking up the slack in many markets Despite the housing slowdown, commercial and public work is still strong, and is picking up the slack in many markets We see the 2006 numbers coming in similar to 2005, with growth cooling off from the blistering pace of profitability and performance of last year We see the 2006 numbers coming in similar to 2005, with growth cooling off from the blistering pace of profitability and performance of last year

37. And Finally, A Word About Us Allen-Villere Partners is a transaction- oriented private investment banking and consulting services firm that focuses on the ready-mixed concrete, aggregates and concrete products industries Allen-Villere Partners is a transaction- oriented private investment banking and consulting services firm that focuses on the ready-mixed concrete, aggregates and concrete products industries

38. Industry Activities The firm was pivotal in the creation and refinement of the annual Industry Data Survey, and still provides significant time and resources in assisting NRMCA in the planning and execution of the survey each year. It is considered a key benchmarking tool and has become a standard of measure for performance in the ready- mixed concrete industry The firm was pivotal in the creation and refinement of the annual Industry Data Survey, and still provides significant time and resources in assisting NRMCA in the planning and execution of the survey each year. It is considered a key benchmarking tool and has become a standard of measure for performance in the ready- mixed concrete industry Six years ago, the firm led the initiative to create an industry-standard Chart of Accounts, which is in the process of being implemented by the ABA and AICPA, and as a revised SIC code Six years ago, the firm led the initiative to create an industry-standard Chart of Accounts, which is in the process of being implemented by the ABA and AICPA, and as a revised SIC code

39. Value Added Services Mergers & Acquisitions Mergers & Acquisitions Valuation & Fairness Opinions Valuation & Fairness Opinions Financial Restructuring and Workout Services Financial Restructuring and Workout Services Financing Services Financing Services Strategic Planning Strategic Planning Environmental & Permitting Services Environmental & Permitting Services Management Consulting & Training Management Consulting & Training Expert Testimony Expert Testimony

40. The William B. Allen Award NRMCA created this award which is to be bestowed annually to an individual in lifetime recognition of outstanding contributions to the business of the ready mixed concrete industry NRMCA created this award which is to be bestowed annually to an individual in lifetime recognition of outstanding contributions to the business of the ready mixed concrete industry The Award was named after our Founder and Senior Partner, Bill Allen, acknowledging almost 60 years of leadership in this industry The Award was named after our Founder and Senior Partner, Bill Allen, acknowledging almost 60 years of leadership in this industry The 2007 Recipient is Gene Martineau, the CEO of U.S. Concrete, who will receive his award at the NRMCA Annual Convention in March The 2007 Recipient is Gene Martineau, the CEO of U.S. Concrete, who will receive his award at the NRMCA Annual Convention in March

41. And finally… Thank You!