-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FCOkHH8WPyM1Nbo+XeQrlNe9qbVSG+XFxG2RaNKbFncpaawfXJHBohv97IJ+ehI1 NESETJxUxnDk0ocYNLZ6qA== 0000067517-02-000014.txt : 20020814 0000067517-02-000014.hdr.sgml : 20020814 20020814175120 ACCESSION NUMBER: 0000067517-02-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020630 FILED AS OF DATE: 20020814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MONARCH CEMENT CO CENTRAL INDEX KEY: 0000067517 STANDARD INDUSTRIAL CLASSIFICATION: CONCRETE GYPSUM PLASTER PRODUCTS [3270] IRS NUMBER: 480340590 STATE OF INCORPORATION: KS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-02757 FILM NUMBER: 02737436 BUSINESS ADDRESS: STREET 1: P O BOX 1000 CITY: HUMBOLDT STATE: KS ZIP: 66748 BUSINESS PHONE: 6204732225 10-Q 1 edg202.txt FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2002, or [ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________________ to ___________________. Commission file number: 0-2757 THE MONARCH CEMENT COMPANY (Exact name of registrant as specified in its charter) KANSAS 48-0340590 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) P.O. BOX 1000, HUMBOLDT, KANSAS 66748-0900 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (620) 473-2222 (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) 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 (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ] As of August 9, 2002, there were 2,331,324 shares of Capital Stock, par value $2.50 per share outstanding and 1,695,634 shares of Class B Capital Stock, par value $2.50 per share outstanding. PART I - FINANCIAL INFORMATION The condensed consolidated financial statements included in this report have been prepared by our Company without audit. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Our Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results of operations for the interim periods presented. Those adjustments consist only of normal, recurring adjustments. The condensed consolidated balance sheet of the Company as of December 31, 2001 has been derived from the audited consolidated balance sheet of the Company as of that date. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Company's most recent annual report on Form 10-K for 2001 filed with the Securities & Exchange Commission. The results of operations for the period are not necessarily indicative of the results to be expected for the full year. Item 1. Financial Statements THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 2002 and December 31, 2001
ASSETS 2 0 0 2 2 0 0 1 (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 2,286,751 $ 3,224,861 Short-term investments, at cost which approximates market 1,518 164,073 Receivables, less allowances of $523,000 in 2002 and $493,000 in 2001 for doubtful accounts 18,317,040 13,262,283 Inventories, priced at cost which is not in excess of market- Cost determined by last-in, first-out method- Finished cement $ 4,214,575 $ 1,813,898 Work in process 1,209,539 2,629,984 Building products 1,345,194 1,159,676 Cost determined by first-in, first-out method- Fuel, gypsum, paper sacks and other 4,503,915 4,119,068 Cost determined by average method- Operating and maintenance supplies 7,979,817 7,867,711 Total inventories $ 19,253,040 $ 17,590,337 Refundable federal and state income taxes - 474,867 Deferred income taxes 505,000 505,000 Prepaid expenses 362,029 66,193 Total current assets $ 40,725,378 $ 35,287,614 PROPERTY, PLANT AND EQUIPMENT, at cost, less accumulated depreciation and depletion of $97,214,906 in 2002 and $92,458,417 in 2001 81,081,039 81,441,837 DEFERRED INCOME TAXES 2,255,000 2,305,000 OTHER ASSETS 8,282,396 7,603,212 $132,343,813 $126,637,663 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES: Accounts payable $ 6,159,463 $ 6,636,841 Bank loan payable 5,000,000 5,000,000 Current portion of advancing term loan 2,000,000 - Accrued liabilities 3,890,958 5,162,357 Total current liabilities $ 17,050,421 $ 16,799,198 LONG-TERM DEBT 25,119,564 19,899,655 ACCRUED POSTRETIREMENT BENEFITS 8,598,834 8,442,462 MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 1,915,396 2,453,827 STOCKHOLDERS' INVESTMENT: Capital stock, par value $2.50 per share- Authorized 10,000,000 shares, Issued 2,329,661 shares at 6/30/2002 and 2,303,362 shares at 12/31/2001 $ 5,824,153 $ 5,758,405 Class B capital stock, par value $2.50 per share, supervoting rights of ten votes per share, restricted transferability, convertible at all times into Capital Stock on a share-for-share basis - Authorized 10,000,000 shares, Issued 1,697,297 shares at 6/30/2002 and 1,723,596 shares at 12/31/2001 4,243,242 4,308,990 Retained earnings 68,447,203 67,900,126 Accumulated other comprehensive income 1,145,000 1,075,000 Total stockholders' investment $ 79,659,598 $ 79,042,521 $132,343,813 $126,637,663 See notes to condensed consolidated financial statements
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS For the Three Months and the Six Months Ended June 30, 2002 and 2001 (Unaudited)
For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, 2002 2001 2002 2001 NET SALES $35,409,167 $33,746,878 $58,280,820 $54,081,905 COST OF SALES 29,393,731 27,840,529 50,595,055 46,442,454 Gross profit from operations $ 6,015,436 $ 5,906,349 $ 7,685,765 $ 7,639,451 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2,727,339 2,507,933 5,313,007 4,833,390 Income from operations 3,288,097 $ 3,398,416 $ 2,372,758 $ 2,806,061 OTHER INCOME (EXPENSE): Interest income $ 85,599 $ 180,482 $ 126,693 $ 240,247 Interest expense (293,626) (264,446) (466,141) (318,513) Other, net (6,993) 28,740 (95,841) 379,748 $ (215,020) $ (55,224) $ (435,289) $ 301,482 Income before taxes on income $ 3,073,077 $ 3,343,192 $ 1,937,469 $ 3,107,543 PROVISION FOR TAXES ON INCOME 920,000 1,080,000 585,000 1,000,000 NET INCOME $ 2,153,077 $ 2,263,192 $ 1,352,469 $ 2,107,543 RETAINED EARNINGS, beg. of period 67,099,518 63,316,527 67,900,126 64,117,194 Less cash dividends 805,392 802,466 805,392 802,466 Less purchase and retirement of treasury stock - 117,949 - 762,967 RETAINED EARNINGS, end of period $68,447,203 $64,659,304 $68,447,203 $64,659,304 BASIC EARNINGS PER SHARE $.53 $.56 $.34 $.52 CASH DIVIDENDS PER SHARE $.20 $.20 $.20 $.20
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Three Months and the Six Months Ended June 30, 2002 and 2001 (Unaudited)
For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, 2002 2001 2002 2001 NET INCOME $ 2,153,077 $ 2,263,192 $ 1,352,469 $ 2,107,543 UNREALIZED APPRECIATION (DEPRECIATION) ON AVAILABLE FOR SALE SECURITIES (Net of deferred tax expense (benefit) of $(145,000), $155,000, $50,000 and $255,000, respectively) (220,000) 225,000 70,000 375,000 COMPREHENSIVE INCOME $ 1,933,077 $ 2,488,192 $ 1,422,469 $ 2,482,543 See notes to condensed consolidated financial statements
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2002 and 2001 (Unaudited)
2002 2001 OPERATING ACTIVITIES: Net income $ 1,352,469 $ 2,107,543 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and depletion 5,286,726 3,580,372 Gain on disposal of assets (57,273) (131,378) Change in assets and liabilities, net of acquisitions: Receivables, net (5,054,757) (8,287,637) Inventories (1,662,703) (516,659) Refundable federal and state income taxes 474,867 - Prepaid expenses (295,836) (218,949) Other assets 7,231 7,666 Accounts payable and accrued liabilities (137,994) 2,525,974 Accrued postretirement benefits 156,372 146,592 Accrued pension expense (79,903) (80,682) Minority interest in earnings (losses) of subsidiaries 6,042 (212,419) Net cash used for operating activities $ (4,759) $ (1,079,577) INVESTING ACTIVITIES: Acquisition of property, plant and equipment $ (4,952,117) $(27,922,201) Proceeds from disposals of property, plant and equipment 83,462 188,276 Payment for purchases of equity investments (486,512) (918,841) Decrease in short-term investments, net 162,555 2,544,836 Net purchases of subsidiaries' stock (529,731) (1,040,400) Net cash used for investing activities $ (5,722,343) $(27,148,330) FINANCING ACTIVITIES: Proceeds from bank loans $ 7,219,909 $ 25,147,391 Cash dividends paid (2,416,175) (2,442,824) Subsidiaries' dividends paid to minority interest (14,742) (11,057) Purchase of treasury stock - (889,136) Net cash provided by financing activities $ 4,788,992 $ 21,804,374 Net decrease in cash and cash equivalents $ (938,110) $ (6,423,533) CASH AND CASH EQUIVALENTS, beginning of year 3,224,861 9,451,281 CASH AND CASH EQUIVALENTS, end of period $ 2,286,751 $ 3,027,748 Cash interest paid $474,113 $316,376 Cash income tax refunds received $331,407) $ 11,000 See notes to condensed consolidated financial statements
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2002 and 2001 (Unaudited), and December 31, 2001 1. For a summary of accounting policies, the reader should refer to Note 1 of the consolidated financial statements included in our Company's most recent annual report on Form 10-K. 2. Basic earnings per share of capital stock has been calculated based on the weighted average shares outstanding during each of the reporting periods. The weighted average number of shares outstanding was 4,026,958 and 4,052,830 in the second quarter of 2002 and 2001, respectively, and 4,026,958 and 4,062,151 in the first six months of 2002 and 2001, respectively. The Company has no common stock equivalents and therefore, does not report diluted earnings per share. 3. Our Company groups its operations into two business segments - Industry Segment A (cement manufacturing) and Industry Segment B (ready-mixed concrete and sundry building materials). Following is condensed information for each segment for the periods ended June 30, 2002 and 2001 and December 31, 2001 (in thousands):
Three Months Ended Six Months Ended 6/30/02 6/30/01 6/30/02 6/30/01 Sales to Unaffiliated Customers- Industry: Segment A $14,661 $14,159 $21,840 $20,454 Segment B 20,748 19,588 36,441 33,628 Intersegment Sales- Industry: Segment A 2,892 2,989 5,172 4,725 Segment B 36 6 36 10 Operating Profit- Industry: Segment A 2,187 2,924 2,068 4,038 Segment B 1,101 474 305 (1,232) Capital Expenditures- Industry: Segment A 677 15,038 1,476 24,470 Segment B 2,086 2,081 3,476 3,452 Balance as of 6/30/02 12/31/01 Identifiable Assets- Industry: Segment A $81,519 $79,454 Segment B 37,494 32,906 Corporate Assets- 13,331 14,278
4. Revenue is earned and recorded when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable, and collectibility is reasonably assured. Accordingly, the Company records revenue from the sale of cement, ready-mixed concrete and sundry building materials when the products are delivered to the customer. Long-term construction contract revenues are recognized on the percentage-of-completion method based on the costs incurred relative to total estimated costs. Full provision is made for any anticipated losses. Billings for long-term construction contracts are rendered monthly, including the amount of retainage withheld by the customer until contract completion. Retainages are included in accounts receivable and are generally receivable within one year. 5. Property, plant and equipment increased by approximately $4,952,000 during the first six months of 2002 due to the modernization and expansion program currently in process at the cement manufacturing facility and the upgrade of equipment in the ready-mixed concrete and sundry building materials segment. This includes approximately $62,000 of capitalized interest expense. 6. In January 2001, Monarch entered into an unsecured credit commitment with a bank. This commitment consists of a $30,000,000 advancing term loan maturing December 31, 2005 and a $5,000,000 line of credit maturing December 31, 2002. These loans each bear floating interest rates based on Chase Manhattan Bank prime rate less 1.25%. The loan agreement contains a financial covenant related to net worth with which the Company was in compliance at the end of the second quarter of 2002. As of June 30, 2002, Monarch had borrowed $27,119,564 on the advancing term loan and $5,000,000 on the line of credit leaving a balance available on the advancing term loan of $2,880,436. The average daily interest rate paid by Monarch during the second quarter and the first six months of 2002 was 3.5%. 7. Certain reclassifications have been made to the June 30, 2001 consolidated income statements to conform to the June 30, 2002 consolidated income statement presentation. These reclassifications had no effect on net earnings. THE MONARCH CEMENT COMPANY AND SUBSIDIARIES Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Forward-Looking Statements Certain statements under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this Form 10-Q report filed with the Securities and Exchange Commission, constitute "forward-looking statements". Except for historical information, the statements made in this report are forward-looking statements that involve risks and uncertainties. You can identify these statements by forward-looking words such as "should", "expect", "anticipate", "believe", "intend", "may", "hope", "forecast" or similar words. In particular, statements with respect to variations in future demand for our products in our market area, the timing, scope, cost and benefits of our proposed and recently completed capital improvements and expansion plans, including the resulting increase in production capacity, the adequacy for 2002 of our kiln capacity, our forecasted cement sales, the source of funding for the repayment of our bank financing, the proposed increase in our bank financing, the proposed use of loan proceeds and the impact of new FASB accounting rules are all forward- looking statements. You should be aware that forward-looking statements involve known and unknown risks, uncertainties, and other factors that may affect the actual results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: ? general economic and business conditions; ? competition; ? raw material and other operating costs; ? costs of capital equipment; ? changes in business strategy or expansion plans; and ? demand for our Company's products. LIQUIDITY We are able to meet our cash needs primarily from a combination of operations and bank loans. Cash and short-term investments decreased during the first six months of 2002 primarily due to the purchase of equipment, the increase in inventories and the payment of dividends. In January 2001, we entered into an unsecured credit commitment with a bank. This commitment consists of a $30,000,000 advancing term loan maturing December 31, 2005 and a $5,000,000 line of credit maturing December 31, 2002. These loans each bear floating interest rates based on Chase Manhattan Bank prime rate less 1.25%. The loan agreement contains a financial covenant related to net worth with which the Company was in compliance at the end of the second quarter of 2002. As of June 30, 2002, we had borrowed $27,119,564 on the advancing term loan and $5,000,000 on the line of credit leaving a balance available on the advancing term loan of $2,880,436. We have used these loans to help finance the expansion project at our cement manufacturing facility. We anticipate that the line of credit maturing December 31, 2002 will be paid using funds from operations or additional bank financing. Our board of directors has given management the authority to borrow an additional $15,000,000 for a maximum of $50,000,000. At this time we do not anticipate borrowing the additional $15,000,000; although an increase in financing may be required on a short-term basis. As of the end of 2001, we had completed the installation of a precalciner and clinker cooler on one of our kilns. We had also started preliminary work on a precalciner and clinker cooler for our second preheater kiln and the design of a new coal firing system to fuel the precalciners on both kilns. We have decided to postpone the completion of these projects until at least 2003. Market projections indicate that our current kiln capacity should be adequate to fulfill our cement needs for the year 2002. We will continue to evaluate market conditions, proposed capital expenditures and the Company's cash resources as we finalize the timing of expansion projects and loan requirements. Results of Operations Cement, ready-mixed concrete and sundry building materials are used in residential, commercial and governmental construction. Although overall demand for our products by each of these segments remains strong, it varies within our market area. In some areas of our market, residential construction is down while commercial and governmental needs are up. In other areas, residential demand is up and commercial and governmental use is down. For the balance of this year, we continue to see variations in demand within our market area. Low interest rates have helped to prevent sizeable drops in construction activities. Major construction projects, including schools and detention facilities are currently underway in our market area. These projects, which use sizeable amounts of cement, ready-mixed concrete and concrete products, contribute to the overall strong demand for our products. Consolidated net sales for the quarter ended June 30, 2002, increased by $1,662,289 when compared to the quarter ended June 30, 2001. Sales of cement were higher by $501,351, and sales of ready-mixed concrete and sundry building materials were higher by $1,160,938. Cement and ready-mixed concrete sales continue to benefit from the strong demand for these products in our market area. The gross profit rate for the three months ended June 30, 2002 was 17.0% versus 17.5% for the three months ended June 30, 2001. Selling, general, and administrative expenses increased by 8.7% during the second quarter of 2002 compared to the second quarter of 2001. Overall increases in payroll and health care costs primarily in the ready-mixed concrete and sundry building material segment contributed to this increase, although no single factor increased materially. Interest income decreased $94,883 during the second quarter of 2002 as compared to the second quarter of 2001 primarily due to the reduction in short-term investments as the Company utilized these funds for capital improvements. Interest expense increased $29,180 during the second quarter of 2002 as compared to the second quarter of 2001 primarily due to the increase in loans outstanding. The Company utilized these loans for capital improvements. Consolidated net sales for the six months ended June 30, 2002 were $58,280,820, an increase of $4,198,915 as compared to the six months ended June 30, 2001. Sales of cement were higher by $1,385,782 and sales of ready- mixed concrete and sundry building materials were higher by $2,813,133. Mild, dry weather in the Company's market area during the first half of 2002 allowed construction projects to proceed. In contrast, during the first half of 2001, wet weather slowed construction projects, decreasing sales of both cement and ready-mixed concrete. The gross profit rate for the first six months of 2002 was 13.2% versus 14.1% for the first six months of 2001. Additional depreciation expense of approximately $1,710,000, largely associated with the plant expansion projects completed in the latter part of 2001, is the primary reason for the decrease in gross profit rate. Selling, general, and administrative expenses increased 9.9% for the first six months of 2002 compared to the first six months of 2001. Overall increases in insurance, payroll costs and legal and professional expenses contributed to this increase, although no single factor increased materially. Interest income decreased $113,554 for the first six months of 2002 as compared to the first six months of 2001 primarily due to the reduction in short-term investments as the Company utilized these funds for capital improvements. Interest expense increased $147,628 for the first half of 2002 as compared to the first half of 2001 primarily due to the increase in bank loans outstanding. The Company utilized these loans for capital improvements. Other, net decreased $475,589 during the first six months of 2002 as compared to the first six months of 2001 primarily due to a reduction in subsidiary losses allocated to minority interest and a reduction in the gains on the sales of equipment. The Financial Accounting Standards Board (FASB) recently issued four new accounting rules. Statement of Financial Accounting Standards (SFAS) No. 141, "Business Combinations," effective July 1, 2001, SFAS No. 142, "Goodwill and Other Intangible Assets," effective for the 2002 calendar year, and SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," effective for the 2002 calendar year, are not expected to have a material effect on the Company's financial position or results of operations. The Company has not yet assessed the impact, if any, of adopting SFAS No. 143, " Accounting for Asset Retirement Obligations," effective for the 2003 calendar year. In April 2002 the FASB issued SFAS No. 145, "Rescission of FASB Statement No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections" which is not expected to have a material effect on the Company's financial position or results of operations. MARKET RISK Market risks relating to the Company's operations result primarily from changes in demand for our products. A significant increase in interest rates could lead to a reduction in construction activities in both the residential and commercial markets. Budget shortfalls during economic slowdowns could cause money to be diverted away from highway projects, schools, detention facilities and other governmental construction projects. Reduction in construction activity lowers the demand for cement, ready-mixed concrete and sundry building materials. As demand decreases, competition to retain sales volume could create downward pressure on sales prices. The manufacture of cement requires a significant investment in property, plant and equipment and a trained workforce to operate and maintain this equipment. These costs do not materially vary with the level of production. As a result, by operating at or near capacity, regardless of demand, companies can reduce per unit production costs. The continual need to control production costs encourages overproduction during periods of reduced demand. Interest rates on the Company's bank loans are variable and are based on the Chase Manhattan Bank prime rate less 1.25%. SEASONALITY Our Company's highest revenue and earnings historically occur in its second and third fiscal quarters, April through September. PART II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders At the annual meeting of the stockholders of The Monarch Cement Company held on April 10, 2002, the stockholders elected three Class I Directors, namely, David L. Deffner, Gayle C. McMillen, and Richard N. Nixon to serve terms expiring at the annual meeting of stockholders in 2005. Class II Directors, namely, Byron J. Radcliff, Michael R. Wachter, Walter H. Wulf, Jr., and Walter H. Wulf, III, and Class III Directors, namely, Jack R. Callahan, Ronald E. Callaway, Robert M. Kissick and Byron K. Radcliff, continue to serve terms expiring at the annual meetings of stockholders in 2003 and 2004, respectively. The following is a summary of votes cast.
Withhold Abstentions/ Authority/ Broker For Against Non-votes David L. Deffner 16,196,422 117,808 N/A Gayle C. McMillen 16,185,737 128,493 N/A Richard N. Nixon 16,032,297 281,933 N/A
Item 6. Exhibits and Reports on Form 8-K (a) Exhibits. 99.1 Certificate of the Chief Executive Officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 99.2 Certificate of the Chief Financial Officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (b) Reports on Form 8-K. There was one report required to be filed on Form 8-K during the quarter for which this report is being filed (April 1, 2002 to June 30, 2002, inclusive). S I G N A T U R E S 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. THE MONARCH CEMENT COMPANY (Registrant) Date August 14, 2002 /s/ Walter H. Wulf, Jr. Walter H. Wulf, Jr. President and Chairman of the Board Date August 14, 2002 /s/ Lyndell G. Mosley Lyndell G. Mosley, CPA Chief Financial Officer and Assistant Secretary-Treasurer Exhibit 99.1 Certification of Chief Executive Officer I, Walter H. Wulf, Jr., President and Chairman of the Board of The Monarch Cement Company (the "Company"), do hereby certify in accordance with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, that to the best of my knowledge: (a) The Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002, which this certification accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) The information contained in the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002, which this certification accompanies, fairly presents, in all material aspects, the financial condition and results of operations of the Company. Dated: August 14, 2002. /s/ Walter H. Wulf, Jr. Walter H. Wulf, Jr. President and Chairman of the Board Exhibit 99.2 Certification of Chief Financial Officer I, Lyndell G. Mosley, Chief Financial Officer and Assistant Secretary- Treasurer of The Monarch Cement Company (the "Company"), do hereby certify in accordance with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge: (a) The Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002, which this certification accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) The information contained in the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002, which this certification accompanies, fairly presents, in all material aspects, the financial condition and results of operations of the Company. Dated: August 14, 2002. /s/ Lyndell G. Mosley Lyndell G. Mosley, CPA Chief Financial Officer and Assistant Secretary-Treasurer -----END PRIVACY-ENHANCED MESSAGE-----