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 September 30, 2003, 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 [ ]
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). YES [ ] NO [X}
As of November 10, 2003, there were 2,388,527 shares of Capital Stock, par
value $2.50 per share outstanding and 1,638,431 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 consolidated 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,
2002 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 2002 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
September 30, 2003 and December 31, 2002
ASSETS 2 0 0 3 2 0 0 2
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 3,356,458 $ 3,909,215
Receivables, less allowances of $719,000 in 2003
and $644,000 in 2002 for doubtful accounts 17,657,897 15,916,614
Inventories, priced at cost which is not in
excess of market-
Cost determined by last-in, first-out method-
Finished cement $ 3,115,690 $ 1,386,348
Work in process 606,433 626,130
Building products 1,229,604 1,119,723
Cost determined by first-in, first-out method-
Fuel, gypsum, paper sacks and other 4,028,386 4,164,573
Cost determined by average method-
Operating and maintenance supplies 8,105,305 8,059,488
Total inventories $ 17,085,418 $ 15,356,262
Refundable federal and state income taxes - 562,496
Deferred income taxes 593,000 593,000
Prepaid expenses 943,209 82,304
Total current assets $ 39,635,982 $ 36,419,891
PROPERTY, PLANT AND EQUIPMENT, at cost, less
accumulated depreciation and depletion of
$103,079,914 in 2003 and $96,128,254 in 2002 78,787,594 82,331,077
DEFERRED INCOME TAXES 3,577,585 4,038,000
OTHER ASSETS 11,633,289 10,717,296
$133,634,450 $133,506,264
LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
Accounts payable $ 6,989,420 $ 5,845,901
Bank loan payable 3,552,046 3,048,076
Current portion of advancing term loan 3,328,261 3,255,476
Accrued liabilities 3,941,316 5,011,856
Total current liabilities $ 17,811,043 $ 17,161,309
LONG-TERM DEBT 20,621,201 23,284,663
ACCRUED POSTRETIREMENT BENEFITS 9,619,408 9,322,377
ACCRUED PENSION EXPENSE 2,385,737 2,418,375
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES 1,690,611 1,969,101
STOCKHOLDERS' INVESTMENT:
Capital stock, par value $2.50 per share,
1 vote per share - Authorized 10,000,000
shares, Issued 2,383,386 shares at 9/30/2003
and 2,344,293 shares at 12/31/2002 $ 5,958,465 $ 5,860,733
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
1,643,572 shares at 9/30/2003 and 1,682,665
shares at 12/31/2002 4,108,930 4,206,662
Retained earnings 72,038,055 70,582,044
Accumulated other comprehensive loss (599,000) (1,299,000)
Total stockholders' investment $ 81,506,450 $ 79,350,439
$133,634,450 $133,506,264
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 Nine Months Ended September 30, 2003 and 2002
(Unaudited)
For the Three Months Ended For the Nine Months Ended
September 30, September 30, September 30, September 30,
2003 2002 2003 2002
NET SALES $40,762,569 $41,728,112 $89,325,949 $100,008,932
COST OF SALES 33,823,702 32,752,459 76,584,066 83,347,514
Gross profit from operations $ 6,938,867 $ 8,975,653 $12,741,883 $ 16,661,418
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 3,102,130 2,860,974 8,929,313 8,173,981
Income from operations $ 3,836,737 $ 6,114,679 $ 3,812,570 $ 8,487,437
OTHER INCOME (EXPENSE):
Interest income $ 110,037 $ 84,184 $ 287,141 $ 210,877
Interest expense (255,900) (288,433) (786,221) (754,574)
Other, net 141,714 (31,336) 1,193,304 (127,177)
$ (4,149) $ (235,585) $ 694,224 $ (670,874)
Income before taxes on income $ 3,832,588 $ 5,879,094 $ 4,506,794 $ 7,816,563
PROVISION FOR TAXES ON INCOME 1,240,000 1,765,000 1,440,000 2,350,000
NET INCOME $ 2,592,588 $ 4,114,094 $ 3,066,794 $ 5,466,563
RETAINED EARNINGS, beg. of period 70,250,858 68,447,203 70,582,044 67,900,126
Less cash dividends 805,391 805,391 1,610,783 1,610,783
RETAINED EARNINGS, end of period $72,038,055 $71,755,906 $72,038,055 $71,755,906
Basic earnings per share $.64 $1.02 $.76 $1.36
Cash dividends per share $.20 $.20 $.40 $.40
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months and the Nine Months Ended September 30, 2003 and 2002 (Unaudited)
For the Three Months Ended For the Nine Months Ended
September 30, September 30, September 30, September 30,
2003 2002 2003 2002
NET INCOME $ 2,592,588 $ 4,114,094 $ 3,066,794 $ 5,466,563
UNREALIZED APPRECIATION
(DEPRECIATION) ON AVAILABLE
FOR SALE SECURITIES (Net of
deferred tax expense (benefit)
of $180,000, $(240,000),
$460,000 and $(190,000),
respectively) 280,000 (360,000) 700,000 (290,000)
COMPREHENSIVE INCOME $ 2,872,588 $ 3,754,094 $ 3,766,794 $ 5,176,563
See notes to condensed consolidated financial statements
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2003 and 2002 (Unaudited)
2003 2002
OPERATING ACTIVITIES:
Net income $ 3,066,794 $ 5,466,563
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and depletion 8,214,200 8,227,086
Minority interest in earnings (losses) of
subsidiaries (278,490) 171,357
Deferred income taxes, long-term 415 -
Gain on disposal of assets (377,577) (87,967)
Realized gain on sale of other investments (404,616) -
Change in assets and liabilities, net of
acquisitions:
Receivables, net (1,741,186) (7,255,287)
Inventories (1,729,156) 1,648,701
Refundable federal and state income taxes 562,496 474,867
Prepaid expenses (860,905) (166,427)
Other assets 11,909 10,546
Accounts payable and accrued liabilities 1,683,762 1,553,325
Accrued postretirement benefits 297,031 265,690
Accrued pension expense (32,638) (119,854)
Net cash provided by operating activities $ 8,412,039 $ 10,188,600
INVESTING ACTIVITIES:
Acquisition of property, plant and equipment $ (4,521,127) $ (7,352,814)
Proceeds from disposals of property, plant
and equipment 447,824 209,314
Payment for purchases of equity investments (240,849) (1,193,469)
Proceeds from disposals of equity investments 657,726 -
(Increase) decrease in short-term investments, net (97) 161,832
Net purchases of subsidiaries' stock - (2,421,057)
Net cash used for investing activities $ (3,656,523) $(10,596,194)
FINANCING ACTIVITIES:
Proceeds from bank loans $ (2,086,707) $ 4,090,331
Cash dividends paid (3,221,566) (3,221,566)
Subsidiaries' dividends paid to minority interest - (14,742)
Net cash provided by (used for) financing
activities $ (5,308,273) $ 854,023
Net increase (decrease) in cash and cash equivalents $ (552,757) $ 446,429
CASH AND CASH EQUIVALENTS, beginning of year 3,909,215 3,224,861
CASH AND CASH EQUIVALENTS, end of period $ 3,356,458 $ 3,671,290
Interest paid, net of amount capitalized $807,497 $771,430
Income taxes paid, net of refunds $335,649 $341,941
See notes to condensed consolidated financial statements
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2003 and 2002 (Unaudited), and December 31, 2002
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 in the
third quarter of 2003 and 2002 and in the first nine months of 2003 and
2002. 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 indicated (in thousands):
Three Months Ended Nine Months Ended
9/30/03 9/30/02 9/30/03 9/30/02
Sales to Unaffiliated Customers-
Industry: Segment A $17,722 $17,491 $35,581 $39,331
Segment B 23,041 24,237 53,745 60,678
Intersegment Sales-
Industry: Segment A 3,387 3,188 8,256 8,360
Segment B - 49 - 85
Operating Profit-
Industry: Segment A 3,008 4,250 4,939 6,318
Segment B 829 1,864 (1,126) 2,169
Capital Expenditures-
Industry: Segment A 391 1,158 1,002 2,634
Segment B 965 1,243 3,519 4,719
Balance as of
9/30/03 12/31/02
Identifiable Assets-
Industry: Segment A $75,136 $76,369
Segment B 39,338 37,316
Corporate Assets- 19,160 19,821
4. 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 due within one year.
5. Capital expenditures for property, plant and equipment were approximately
$4,521,000 during the first nine months of 2003. These funds were
primarily used to upgrade equipment in the ready-mixed concrete and sundry
building materials segment.
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, our forecasted cement sales, the timing and source of
funds for the repayment of our line of credit, and our anticipated increase in
solid fuels and electricity required to operate our facilities and equipment
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;
* demand for our Company's products;
* cyclical and seasonal nature of our business;
* the affect weather has on our business;
* the affect of environmental and other government regulation; and
* the affect of federal and state funding on demand for our products.
LIQUIDITY
We are able to meet our cash needs primarily from a combination of
operations and bank loans. Cash decreased during the first nine months of
2003 primarily due to the purchase of equipment, the payment of dividends and
payments on our bank loan.
In December 2002, Monarch renegotiated its unsecured credit commitment
with a bank. This revised commitment consists of a $25,000,000 advancing term
loan maturing December 31, 2005 and a $10,000,000 line of credit maturing
December 31, 2003. These loans each bear floating interest rates based on JP
Morgan Chase prime rate less 1.25% and .75%, respectively. The loan agreement
contains a financial covenant related to net worth which the Company was in
compliance with at the end of the first nine months of 2003. As of September
30, 2003, we had borrowed $22,557,758 on the advancing term loan and
$3,552,046 on the line of credit leaving a balance available on the line of
credit of $6,447,954. The average daily interest rate we paid on the
advancing term loan during the third quarter of 2003 and 2002 was 2.75% and
3.50%, respectively, and for the first nine months of 2003 and 2002 was 2.91%
and 3.50%, respectively. The average daily interest rate we paid on the line
of credit during the third quarter of 2003 and 2002 was 3.25% and 3.50%,
respectively, and the first nine months of 2003 and 2002 was 3.41% and 3.50%,
respectively. As of September 30, 2003, the applicable interest rate was
2.75% on the advancing term loan and 3.25% on the line of credit. The
advancing term loan was used to help finance the expansion project at our
cement manufacturing facility. The line of credit was used to cover operating
expenses primarily during the first half of the year when the company was
building inventory due to the seasonality of our business (see Seasonality
below). We anticipate that the line of credit maturing December 31, 2003 will
be paid using funds from operations or replacement 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.
FINANCIAL CONDITION
Total assets as of September 30, 2003 were $133,634,450, an increase of
$128,186 since December 31, 2002. The decrease in net property, plant and
equipment was offset by increases in receivables and inventories, resulting in
a moderate increase in total assets. These variations are common during the
first nine months of the year due to the seasonality of our business (see
Seasonality below).
Indebtedness decreased $2,086,707 during the first nine months of 2003
due primarily to utilizing cash provided by operations to reduce the advancing
term loan.
Stockholders' investment increased 2.7% during the first nine months of
2003 primarily due to the net income. Basic earnings were $.76 per share.
CAPITAL RESOURCES
The Company regularly invests in miscellaneous equipment and facility
improvements in both the cement and ready-mixed concrete segments. Capital
expenditures during the first nine months of 2003 were primarily routine
equipment purchases in the ready-mixed concrete segment. For the balance of
the year, we anticipate continuing these recurring capital expenditures in
order to keep our equipment and facilities up-to-date.
We are also beginning the installation of a coal firing system on our
precalciner kiln. This will allow us to burn primarily coal and petroleum
coke in our precalciner in lieu of natural gas. We have purchased the
equipment for this project; however, we do not anticipate major expenditures
towards its installation until 2004. Finally, we continue to monitor
projected market demands as we evaluate the feasibility of installing a second
precalciner and clinker cooler to further increase our production capacity.
Additional bank financing may be required to complete these projects.
Results of Operations
Cement, ready-mixed concrete and sundry building materials are used in
residential, commercial and governmental construction. Overall demand for our
products by each of these segments has been strong for the past several years.
For the year 2003, the Portland Cement Association (PCA) predicts only a
modest decline in the total U.S. consumption of cement. Residential
construction, although not as strong as 2002, is still predicted to remain
strong due to continued projected low interest rates. Major construction
projects, including parking garages, schools, hospitals, waste water treatment
plants, and detention facilities are currently underway in our market area.
The Kansas highway program is currently on target through 2003, although the
Kansas legislature has voted to divert money from future highway projects to
other areas due to serious budget shortfalls. Even though the PCA predicts a
decline in overall construction spending for the third consecutive year, 2003
is projected to rank as the fourth best year in history for construction
spending.
Consolidated net sales for the quarter ended September 30, 2003,
decreased by $965,543 when compared to the quarter ended September 30, 2002.
Sales of cement were higher by $231,221, and sales of ready-mixed concrete and
sundry building materials were lower by $1,196,764. This reduction in sales
was primarily due to a decrease in volume sold in the ready-mixed concrete and
sundry building materials segment as a result of decreased construction
activities in a few of our market areas.
The gross profit rate for the three months ended September 30, 2003 was
17.0% versus 21.5% for the three months ended September 30, 2002. Higher
natural gas prices in the third quarter of 2003 as compared to the third
quarter of 2002 increased the cost of producing cement and contributed to the
reduction in the gross profit rate in the cement segment. Reduced utilization
of equipment due to lower sales volumes of ready-mixed concrete also
contributed to the reduction in the company's gross profit rate.
Selling, general, and administrative expenses increased by 8.4% during
the third quarter of 2003 compared to the third quarter of 2002. Overall
increases in insurance and pension costs contributed to this increase,
although no single factor increased materially.
Other, net increased $173,050 during the third quarter of 2003 as
compared to the third quarter of 2002 primarily due to a reduction in
subsidiary income allocated to minority interest.
The effective tax rates for the third quarter of 2003 and 2002 were 32.4%
and 30.0%, respectively. The Company's effective tax rate differs from the
federal and state statutory income tax rate primarily due to the effects of
percentage depletion and minority interest in consolidated income.
Consolidated net sales for the nine months ended September 30, 2003 were
$89,325,949, a decrease of $10,682,983 as compared to the nine months ended
September 30, 2002. Sales of cement were lower by $3,749,906 and sales of
ready-mixed concrete and sundry building materials were lower by $6,933,077.
Wet weather during the first six months of 2003 slowed construction projects,
decreasing sales volume of both cement and ready-mixed concrete. Although
sales during the third quarter of 2003 rebounded from this slow start, we were
unable to match 2002 net sales.
The gross profit rate for the nine months ended September 30, 2003 was
14.3% versus 16.7% for the nine months ended September 30, 2002. This
decrease is primarily due to reduced utilization of equipment due to lower
sales volumes of ready-mixed concrete.
Selling, general, and administrative expenses increased 9.2% for the
first nine months of 2003 compared to the first nine months of 2002. Overall
increases in insurance and pension costs contributed to this increase,
although no single factor increased materially.
Interest expense increased $31,647 for the first nine months of 2003 as
compared to the first nine months of 2002. Bank loans outstanding as of the
beginning of 2003 were greater than the amount outstanding at the beginning of
2002 creating an increase in average bank loans outstanding for the first nine
months of 2003 as compared to the first nine months of 2002.
Other, net increased $1,320,481 during the first nine months of 2003 as
compared to the first nine months of 2002 primarily due to an increase in
subsidiary losses allocated to minority interest, a gain on the sale of equity
investments and an increase in miscellaneous sales.
The effective tax rates for the nine months ended September 30, 2003 and
2002 were 32.0% and 30.1%, respectively. The Company's effective tax rate
differs from the federal and state statutory income tax rate primarily due to
the effects of percentage depletion and minority interest in consolidated
income.
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.
INFLATION
Inflation directly affects the Company's operating costs. The
manufacture of cement requires the use of a significant amount of energy. The
Company burns primarily solid fuels, such as coal and petroleum coke, in its
preheater kiln. We do not anticipate a significant increase above the rate of
inflation in the cost of these solid fuels, or in the electricity required to
operate our cement manufacturing equipment. In 2001, the Company added a
precalciner to one of its kilns to increase production capacity. This
precalciner burns natural gas. Increases in natural gas prices exceeding the
rate of inflation create an above average increase in manufacturing costs.
The Company has plans to add a coal firing system to its precalciner kiln to
reduce dependence on natural gas. Prices of the specialized replacement parts
and equipment the Company must continually purchase tend to increase directly
with the rate of inflation causing manufacturing costs to increase.
SEASONALITY
Portland cement is the basic material used in the production of ready-
mixed concrete that is used in highway, bridge and building construction.
These construction activities are seasonal in nature. During winter months
when the ground is frozen, groundwork preparation cannot be completed. Cold
temperatures affect concrete set-time, strength and durability, limiting its
use in winter months. Dry ground conditions are also required for
construction activities to proceed. During the summer, winds and warmer
temperatures tend to dry the ground quicker creating fewer delays in
construction projects.
Variations in weather conditions from year-to-year significantly affect
the demand for our products during any particular quarter; however, our
Company's highest revenue and earnings historically occur in its second and
third fiscal quarters, April through September.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company has $9,685,000 of equity securities as of September 30, 2003.
These investments are not hedged and are exposed to the risk of changing
market prices. The Company classifies these securities as "available-for-
sale" for accounting purposes and marks them to market on the balance sheet at
the end of each period. Management estimates that its investments will
generally be consistent with trends and movements of the overall stock market
excluding any unusual situations. An immediate 10% change in the market price
of our equity securities would have a $580,000 effect on comprehensive income.
The Company also has $26,109,804 of bank loans as of September 30, 2003.
Interest rates on the Company's advancing term loan and line of credit are
variable and are based on the JP Morgan Chase prime rate less 1.25% and .75%,
respectively.
ITEM 4. CONTROLS AND PROCEDURES/INTERNAL CONTROLS
As of the end of the quarter ended September 30, 2003, our management,
including our President and Chairman of the Board of Directors and Chief
Financial Officer, has evaluated the effectiveness of the design and operation
of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the
Securities Exchange Act of 1934. Based upon that evaluation, our President
and Chairman of the Board of Directors and Chief Financial Officer concluded
that our disclosure controls and procedures were effective to provide
reasonable assurance that the objectives of our disclosure controls and
procedures are satisfied. There has been no change in our internal control
over financial reporting during the quarter ended September 30, 2003 that has
materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
31.1 Certificate of the President and Chairman of the Board
pursuant to Section 13a-14(a)/15d-14(a) of the Securities
Exchange Act of 1934.
31.2 Certificate of the Chief Financial Officer pursuant
to Section 13a-14(a)/15d-14(a) of the Securities Exchange
Act of 1934.
32.1 Certificate of the President and Chairman of the Board
pursuant to 18 U.S.C. Section 1350 as adopted under Section
906 of the Sarbanes-Oxley Act of 2002.
32.2 Certificate of the Chief Financial Officer pursuant to
18 U.S.C. Section 1350 as adopted under Section 906 of the
Sarbanes-Oxley Act of 2002
(b) Reports on Form 8-K. There ware no reports required to be filed
on Form 8-K during the quarter for which this report is being
filed (July 1, 2003 to September 30, 2003, 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 November 13, 2003 /s/ Walter H. Wulf, Jr.
Walter H. Wulf, Jr.
President and
Chairman of the Board
Date November 13, 2003 /s/ Debra P. Roe
Debra P. Roe, CPA
Chief Financial Officer and
Assistant Secretary-Treasurer
EXHIBIT INDEX
Exhibit
Number Description
31.1 Certificate of the President and Chairman of the
Board pursuant to Section 13a-14(a)/15d-14(a)
of the Securities Exchange Act of 1934
31.2 Certificate of the Chief Financial Officer
pursuant to Section 13a-14(a)/15d-14(a)
of the Securities Exchange Act of 1934
32.1 18 U.S.C. Section 1350 Certificate of the
President and Chairman of the Board
dated November 13, 2003, which is
accompanying this Quarterly Report on
Form 10-Q for the fiscal quarter ended
September 30, 2003 and is treated as furnished
rather than filed in reliance on the final
rule issued by the Securities and Exchange
Commission Release No. 33-8238.
32.2 18 U.S.C. Section 1350 Certificate of the
Chief Financial Officer dated November 13,
2003, which is accompanying this Quarterly
Report on Form 10-Q for the fiscal quarter
ended September 30, 2003 and is treated as
furnished rather than filed in reliance on
the final rule issued by the Securities and
Exchange Commission Release No. 33-8238.