Annual usage of ready-mix concrete in the United States is approximately 400 million cubic yards, or $30 billion. The total concrete market closely mirrors the trends of the total cement market and total construction market. In 2004 the construction industry reported its strongest year since the late 1990s with an estimated growth rate of 9%. Recent industry publications report that economists are predicting that 2005 will set a new record for overall construction volume, growing from 2% to 6% year over year. Predictions are that residential housing will slow somewhat from its third straight year of double-digit growth, but that increases in both the commercial and public work sectors will provide continued momentum in the construction market.

On the basis of information provided by the National Ready-Mix Concrete Association, in addition to vertically integrated manufacturers of cement and ready-mix concrete, more than 3,500 independent producers currently operate a total of approximately 5,300 plants in the United States. Larger markets generally have numerous producers competing for business on the basis of price, timing of delivery and reputation for quality and service.

Recently, barriers to the start-up of a new ready-mix concrete manufacturing operation were historically low. However, public concerns over the dust, noise and heavy mixer and other truck traffic associated with the operation of ready-mix concrete plants and their general appearance have made obtaining the necessary permits and licenses required for new plants more difficult. Delays in the regulatory process, coupled with the substantial capital investment that start-up operations entail, have raised the barriers to entry for those operations.

Dry batched concrete is mixed in the mix truck in route to the job site, whereas wet batched concrete is mixed at the plant and then delivered to the job site. The Company produces dry batched ready-mix concrete products which requires to proportion the dry components, add water when the components are in the ready-mix truck and then deliver the product in an unhardened state, which refers to as a plastic state, for placement and shaping into designed forms at the job site.

The Company provides a variety of services in connection with its sale of ready-mix concrete which can help reduce its customers' in-place cost of concrete. These services include production of new formulations and alternative product recommendations that reduce labor and materials costs; quality control, through automated production and testing, that ensures consistent results and minimizes the need to correct completed work; and scheduling and tracking systems that ensure timely delivery and reduce the downtime incurred by the customer's finishing crew.

The Company produces ready-mix concrete by combining the desired type of cement, sand, gravel and crushed stone with water and typically one or more admixtures. These admixtures, such as chemicals, minerals and fibers, determine the usefulness of the product for particular applications.

The Company uses a variety of chemical admixtures to achieve one or more of five basic purposes relieve internal pressure and increase resistance to cracking in cold weather; retard the hardening process to make concrete more workable in hot weather; strengthen concrete by reducing its water content; accelerate the hardening process and reduce the time required for curing; and facilitate the placement of concrete having low water content.

The Company uses various mineral admixtures as supplementary cementing materials to alter the permeability, strength and other properties of concrete. These materials include fly ash, ground granulated blast-furnace slag and silica fume. The Company may also use fibers, such as steel, glass and synthetic and carbon filaments, as an additive in various formulations of concrete. Fibers help to control shrinkage and cracking, thus reducing permeability and improving abrasion resistance. In many applications, fibers replace welded steel wire and reinforcing bars. Relative to the other components of ready-mix concrete, these additives generate comparatively high margins.

Gross profit increased by 56.7% to $4.9 million for the nine months ended September 30, 2004, from $3.1 million for the nine months ended September 30, 2003.

Interest income for the nine months ended September 30, 2004, increased to $.02 million from $.01 million for the nine months ended September 30, 2003.

Interest expense increased in the nine months ended September 30, 2004, to $.19 million compared to $.17 million for the nine months ended September 30, 2003.

Net income was $1.8 million for the nine months ended September 30, 2004, as compared to a net income of $.75 million for the nine months ended September 30, 2003.