Mason Hawkins has been the Chairman and Chief Executive Officer at Southeastern Asset Management since1975 and manages Longleaf Partners Funds. Over the past two decades, Longleaf Partners Fund has earned a 20-year cumulative return of 921.1% as opposed to the S&P 500's return of 482.2%, though the firm has seen slight setbacks in more recent years. Hawkins and his partners are fundamental value investors. Like other gurus, Hawkins looks for a solid underlying business with strong balance sheets and competent management. He usually invests in companies trading below 60% of their intrinsic worth, selling the stock once it reaches its intrinsic worth. Unlike some of his more diversified counterparts, Hawkins believes in having portfolios concentrated in only the best investment ideas, resulting in many of his firm's portfolios holding less than 25 stocks. According to his latest 13D filings, Hawkins added 5.43% to his position in Texas Industries Inc. (TXI).
Holding History
Hawkins first purchased shares in Texas Industries back in the third quarter of 2006 when he bought 3,291,400 shares at an average price of $48.76. He maintained that position through the next nine quarters, during which the price of TXI climbed to as high as $90. However, the price then started a downward slide, and Hawkins sold722,800 shares in the fourth quarter of 2008 at an average price of $30.41, losing 37% on his original shares. In 2010, Hawkins added shares of the company throughout the year, increasing his holdings by more than 2 million shares as the price crept back up towards $40. In May and June of this year, Hawkins added TXI three times, increasing his position by another 1.2 million and making Longleaf Partners Funds the largest direct owner of TXI, surpassing NNS holding. In his most recent move, he added another 5.43% of the company at a price of $39.99, bringing him to 6,096,407 total shares in the company and a 21.87% stake in all outstanding shares of TXI.
Texas Industries Inc. (TXI)
Texas Industries, Inc., is a leading supplier of construction materials through two business segments: cement, aggregate, and concrete products; and structural steel and specialty bar products. Through its CAC segment, TXI produces and sells cement, stone, sand and gravel, expanded shale, and clay aggregate and concrete products. Through its Steel segment, TXI produces and sells structural steel, piling products, specialty bar products, merchant bar-quality rounds, reinforcing bar, and channels.
Texas Industries just released their quarterly statements for the quarter and year ended May 31, 2011. Net loss for the quarter was $9.1 million and $.33 per share, improving on last year's net loss of $27.1 million. The company has now reported net losses in each of the last seven quarters. This brings the year's net losses to $64.9 million, worse than last year's net loss of $38.9 million. Free cash flow for the quarter was a loss of $5.7 million, the fifth straight quarter of free cash flow losses, and annual free cash flow was at a loss of $36.4 million.
Chief Executive Officer Mel Brekhus stated that "The overall economy has shown signs of improvement in our markets during the past year. However, construction activity has not begun to recover in a meaningful way." He also noted that management is maintaining a "cautious operational outlook for the near term," focusing on liquidity at the moment. They have also announced a price increase for Texas and California, the company's two primary markets.
Cement operating profit for the quarter decreased by $11.5 million year-on-year to a $3.7 million operating loss. Quarterly cement sales barely decreased year-on-year, but cost of products sold increased by $8.3 million due to increases in cement unit costs as well as higher raw material and energy costs. A scheduled plant shut down also added to increased supplies and maintenance expenses during the quarter.
Aggregate operating profit for the quarter increased $10.2 million year-on-year to $14 million, though sales declined by $3 million. This increase in operating profit was largely driven by a $12 million gain from an exchange of aggregate operating assets for ready mix operating assets.
Consumer products operating profit decreased by $5.5 million to a $4.9 million operating loss. Sales increased by $4 million year-on-year, but an increase in cost of products due to higher diesel costs led to the overall loss.
Currently the stock is trading with a P/S ratio of 1.81, above its ten-year average. Its quarterly sales per share stand at 6.31, near its historical low.
Other Headlines
On 4/14/2011, Texas Industries announced the promotion of Les Vines to Treasurer of the Company. Vines will continue to function as TXI's Vice President - Corporate Controller and direct Investor Relations.
On 4/28/2011, Texas Industries announced changes to its executive management team, naming Jamie Rogers as Vice President and Chief Operating Officer. The changes are designed to "leverage TXI's strength of vertical integration and enable the company to further enhance its long term competitive position. A key objective of the management realignment is the improved ability of TXI's teams to collaborate and innovate more effectively across operational units."
This is part of GuruFocus Real Time Picks report, which reports the stock trades of Gurus within the last few days. For more information, go to Real Time Picks.
Holding History
Hawkins first purchased shares in Texas Industries back in the third quarter of 2006 when he bought 3,291,400 shares at an average price of $48.76. He maintained that position through the next nine quarters, during which the price of TXI climbed to as high as $90. However, the price then started a downward slide, and Hawkins sold722,800 shares in the fourth quarter of 2008 at an average price of $30.41, losing 37% on his original shares. In 2010, Hawkins added shares of the company throughout the year, increasing his holdings by more than 2 million shares as the price crept back up towards $40. In May and June of this year, Hawkins added TXI three times, increasing his position by another 1.2 million and making Longleaf Partners Funds the largest direct owner of TXI, surpassing NNS holding. In his most recent move, he added another 5.43% of the company at a price of $39.99, bringing him to 6,096,407 total shares in the company and a 21.87% stake in all outstanding shares of TXI.
Texas Industries Inc. (TXI)
Texas Industries, Inc., is a leading supplier of construction materials through two business segments: cement, aggregate, and concrete products; and structural steel and specialty bar products. Through its CAC segment, TXI produces and sells cement, stone, sand and gravel, expanded shale, and clay aggregate and concrete products. Through its Steel segment, TXI produces and sells structural steel, piling products, specialty bar products, merchant bar-quality rounds, reinforcing bar, and channels.
Texas Industries just released their quarterly statements for the quarter and year ended May 31, 2011. Net loss for the quarter was $9.1 million and $.33 per share, improving on last year's net loss of $27.1 million. The company has now reported net losses in each of the last seven quarters. This brings the year's net losses to $64.9 million, worse than last year's net loss of $38.9 million. Free cash flow for the quarter was a loss of $5.7 million, the fifth straight quarter of free cash flow losses, and annual free cash flow was at a loss of $36.4 million.
Chief Executive Officer Mel Brekhus stated that "The overall economy has shown signs of improvement in our markets during the past year. However, construction activity has not begun to recover in a meaningful way." He also noted that management is maintaining a "cautious operational outlook for the near term," focusing on liquidity at the moment. They have also announced a price increase for Texas and California, the company's two primary markets.
Cement operating profit for the quarter decreased by $11.5 million year-on-year to a $3.7 million operating loss. Quarterly cement sales barely decreased year-on-year, but cost of products sold increased by $8.3 million due to increases in cement unit costs as well as higher raw material and energy costs. A scheduled plant shut down also added to increased supplies and maintenance expenses during the quarter.
Aggregate operating profit for the quarter increased $10.2 million year-on-year to $14 million, though sales declined by $3 million. This increase in operating profit was largely driven by a $12 million gain from an exchange of aggregate operating assets for ready mix operating assets.
Consumer products operating profit decreased by $5.5 million to a $4.9 million operating loss. Sales increased by $4 million year-on-year, but an increase in cost of products due to higher diesel costs led to the overall loss.
Currently the stock is trading with a P/S ratio of 1.81, above its ten-year average. Its quarterly sales per share stand at 6.31, near its historical low.
Other Headlines
On 4/14/2011, Texas Industries announced the promotion of Les Vines to Treasurer of the Company. Vines will continue to function as TXI's Vice President - Corporate Controller and direct Investor Relations.
On 4/28/2011, Texas Industries announced changes to its executive management team, naming Jamie Rogers as Vice President and Chief Operating Officer. The changes are designed to "leverage TXI's strength of vertical integration and enable the company to further enhance its long term competitive position. A key objective of the management realignment is the improved ability of TXI's teams to collaborate and innovate more effectively across operational units."
This is part of GuruFocus Real Time Picks report, which reports the stock trades of Gurus within the last few days. For more information, go to Real Time Picks.
