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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