#####  

                                                                                                                                March 13, 2006

ANNUAL REPORT TO STOCKHOLDERS

        The economic recovery which started in our market area during the finalquarter of 2004 accelerated during 2005.  Demand for both cement and ready-mixedconcrete increased during 2005 enabling us to raise sales prices across allproduct lines and to increase our utilization of the capital investment we havein property, plant and equipment.  The additional production capacity and moreefficient equipment added in recent years in anticipation of this strong demandfor all of our products made it possible for our production facilities toeconomically meet the higher sales requirements.  The combination of increasedprices, volume, and improved efficiencies were the primary reasons for an $11.9million increase in 2005 income from operations.

        Although reconstruction in the hurricane-damaged Gulf region is not expectedto affect us directly, the increased need for cement along the Coast divertscement which might otherwise be shipped into our market area.  The recentlypassed $286 billion six year Federal highway bill, combined with the Kansashighway program, will also create demand for cement.  Higher oil prices, whilenegatively affecting our transportation costs, have a positive impact onconcrete-versus-asphalt cost comparisons for highway construction.  Thesefactors all affect the overall demand for cement and ready-mixed concrete in ourmarket area and create opportunity for further price and volume increases. Installation of the Company's second precalciner in the first quarter of 2006is projected to increase our cement production capacity by approximately 25%although we will not realize the full increase in production until 2007.  Thisadditional production capacity is instrumental in meeting the projected increasein demand for our products. 

        As we complete this year, we are thankful for our many loyal customers whocontinue to have confidence in the quality of our products and our ability toservice their needs.  We recognize our employees for their contributions towardthe success of our Company.  We express our appreciation to our stockholders fortheir steadfast confidence in our Company.  Most importantly, we thank ourHeavenly Father for His blessings and support which have enabled us to achievethe results displayed in this report and for His guidance in meeting thechallenges ahead.

        We wish to invite you, our stockholders, to attend Monarch's annual meetingto be held at 2:00 p.m. on April 12, 2006 in the corporate office at 449 1200Street, Humboldt, Kansas.  Thank you for your support throughout the years andGod Bless.

 

                                                                                                            WALTER H. WULF, JR.                                                                                                        President and Chairman of the Board

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **The Monarch Cement Company and Subsidiaries**
**Selected Financial Data**
**For the Five  Years Ended December 31, 2005**(Dollar amounts in thousands except per share data) 
       2005         2004         2003         2002         2001   Net sales......................................      $   141,320      $   145,077 $        122,028      $   134,550         $   126,352Net income .................................      $       9,658      $       2,569      $       3,820      $       5,903      $       8,151Net income per share...................      $2.40      $.64      $.95      $1.47      $2.01Total assets..................................      $   144,055      $   135,200      $   129,832      $   133,506      $   126,638Long-term obligations...................      $     24,087      $     26,141      $     23,048      $     26,540      $     19,900Cash dividends declared per share       $.80      $.80       $.80      $.80      $.80Stockholders' investment per share      $22.27      $20.86      $20.66 $19.70 $19.63 
                     

**DESCRIPTION OF THE BUSINESS**

The  Monarch Cement Company (Monarch) was organized as a corporation under the laws  of the State of Kansas in 1913.  Since its inception, Monarch has been engaged  in the manufacture and sale of portland cement.

The  manufacture of portland cement by Monarch involves the quarrying of clay and  limestone and the crushing, drying and blending of these raw materials into  the proper chemical ratio.  The raw materials are then heated in kilns to  2800o Fahrenheit at which time chemical reactions occur forming a new compound  called clinker.  After the addition of a small amount of gypsum, the clinker  is ground into a very fine powder that is known as portland cement.  The term  "portland cement" is not a brand name but is a term that distinguishes cement  manufactured by this chemical process from natural cement, which is no longer  widely used.  Portland cement is the basic material used in the production of  ready-mixed concrete that is used in highway, bridge and building construction  where strength and durability are primary requirements.

  Subsidiaries of Monarch (which together with Monarch are referred to herewith  as the "Company") are engaged in the ready-mixed concrete, concrete products  and sundry building materials business.  Ready-mixed concrete is manufactured  by combining aggregates with portland cement, water and chemical admixtures in batch plants.  It is then loaded into mixer trucks and mixed in transit to the  construction site where it is delivered to the contractor.  Concrete products  primarily include pre-formed components produced by the Company that are ready  for use in the construction of commercial buildings, institutional facilities  and parking garages.

As used  herein, the "Cement Business" refers to our manufacture and sale of cement and  "Ready-Mixed Concrete Business" refers to our ready-mixed concrete, concrete  products and sundry building materials business.

1.

**LINES OF BUSINESS**

The  Company is engaged in two lines of business - Cement Business and Ready-Mixed  Concrete Business. 

The  marketing area for Monarch's products, which is limited by the relatively high  cost of transporting cement, consists primarily of the State of Kansas, the  State of Iowa, southeast Nebraska, western Missouri, northwest Arkansas and  northern Oklahoma.  Included within this area are the metropolitan markets of  Des Moines, Iowa; Kansas City, Missouri; Springfield, Missouri; Wichita,  Kansas; Omaha, Nebraska; Lincoln, Nebraska and Tulsa, Oklahoma.  Sales of  cement are made primarily to contractors, ready-mixed concrete plants,  concrete products plants, building materials dealers and governmental  agencies.  Monarch cement is delivered either in bulk or in paper bags and is  sold under the "MONARCH" brand name.  The cement is distributed both by truck  and rail, either common or private carrier.

          Subsidiaries of  Monarch sell ready-mixed concrete, concrete products and sundry building  materials in Monarch's primary market.  

The  following table sets forth for the Company's last three fiscal years the  percentage of total sales by the (1) Cement Business and (2) Ready-Mixed  Concrete Business:
 
Total    Sales 
December 31, 
 2005   
2004
2003 Cement Business           45.5%         35.3%         39.8% Ready-Mixed Concrete Business                         54.5%                64.7%                 60.2% 100.0%100.0%100.0%       
**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 Annual Report and Form 10-K  report filed with the Securities and Exchange Commission constitute  "forward-looking information".  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 or the  future activity of Kansas highway programs and other major construction  projects, 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:

  2.

-  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 of weather on our business;-  the affect of environmental and other government regulations; and-  the affect of federal and state funding on demand for our products.  
**RESULTS OF OPERATIONS**
Ready-Mixed 
Cement Business
   Concrete Business
    Consolidated
**For the Year Ended December  31, 2005 **Sales to unaffiliated customers  Income (loss) from operations
$         64,299,277      15,920,874$         77,020,651        (2,133,263)$  141,319,928      13,787,611**For the Year Ended December 31, 2004 **Sales to unaffiliated customers  Income (loss) from operations$         51,408,457      6,790,090$         93,668,097        (4,871,807)$  145,076,554      1,918,283**For the Year Ended December 31, 2003 **Sales to unaffiliated customers  Income (loss) from operations$         48,571,556      5,854,070$         73,456,755        (1,199,738)$  122,028,311      4,654,332
See Note 10  in the Notes to Consolidated Financial Statements for further discussion of  each of the Company's reportable operating lines of business.

**General**--Our  products are used in residential, commercial and governmental construction.   In 2004, and continuing in 2005, we experienced increased demand for our  products.  The combination of residential, commercial and governmental  construction activities resulted in the need for increased production to meet  our customers' needs.  In response to those needs, we have made, and continue  to make, investments in our plant and equipment to increase production and  improve efficiencies.  We are confident that we will benefit from these  investments as the economy continues to improve.

During 2005, we  realized a substantial increase in net income due primarily to a combination  of increases in price and volume in both the Cement Business and Ready-Mixed  Concrete Business.  These price increases play a key role in helping us keep  pace with increases in the cost of labor, raw materials, and transportation  and the expense of maintaining state-of-the-art equipment in our capital  intensive industry.  The higher sales volumes resulted in better utilization  of our equipment also contributing to the substantial improvement in operating  profits.  The decrease in net sales in 2005 as compared to 2004 is due to a  reduction in construction contracts in the Ready-Mixed Concrete Business,  which did not contribute to the Company's overall profitability in 2004.  Although we are still in the construction industry, it is on a smaller scale  than in prior years. 

  During 2004, although intermittent rains hampered construction projects and  reduced efficiencies in our ready-mixed concrete operations, sales of both  cement and ready-mixed concrete increased moderately compared to 2003 levels.   However, the increase in sales and the increase in operating losses in 2004  for our Ready-Mixed Concrete Business was primarily the result of our  activities in the construction of five parking

3.

garage structures that  were substantially completed by the end of 2004.  Prior to 2004, we did  not engage in such activities to any great extent.  Costs incurred in connection with these five projects  exceeded those that were estimated when the contracts were entered into. Management personnel involved in these projects are no  longer with the Company. Going forward, we  expect activity in designing/building of construction projects to be at  reduced levels compared to 2004. 

**2005 Compared to  2004**--Consolidated net sales for the year ended December 31, 2005 decreased  $3.8 million when compared to the year ended December 31, 2004.  Sales in our  Cement Business were higher by $12.9 million while sales in our Ready-Mixed  Concrete business decreased $16.7 million.  Cement Business sales increased  $7.2 million due to increased volume sold and $5.7 million due to price  increases.  Sales in our Ready-Mixed Concrete Business decreased primarily due  to a $27.5 million reduction in construction contract sales as discussed under  "General" above, which was partially offset by an increase in ready-mixed  concrete and other sundry building material sales of $10.8 million, of which  $4.9 million was due to increased volume and $5.9 million was due to price  increases. 

Consolidated cost of  sales for the year 2005 were $15.9 million less than cost of sales for the  year 2004. Cost of sales in our Cement Business was higher by $3.2 million  while cost of sales in our Ready-Mixed Concrete Business was lower by $19.1  million.  Cement Business cost of sales increased $5.5 million due to the  13.9% increase in volume sold and about $2.0 million due to increased supply  costs related to maintenance performed in the early part of 2005.  These  increases were nearly offset by lower fuel costs of approximately $3.7 million  due to a reduction in the use of natural gas made possible by our new coal  firing system.  The decrease in cost of sales in our Ready-Mixed Concrete  Business was primarily due to a $26.8 million reduction in construction  contract expenses as discussed under "General" above, which was partially  offset by an increase in cost of sales of ready-mixed concrete and other  sundry building materials of $7.7 million due to the increased volume sold,  increased raw material prices and increased fuel prices.  

As a result of the  above sales and cost of sales factors, our overall gross profit rate for the  year ended December 31, 2005 was 18.5% compared to 9.7% for the year ended  December 31, 2004.  

         Selling, general and administrative expenses  increased by 1.9% for the year 2005 as compared to the year 2004.  These costs  are normally considered fixed costs that do not vary significantly with  changes in sales volume.  

         Interest expense increased about $.6 million for  the year 2005 as compared to the year 2004 due to an increase in interest  rates and an increase in borrowings.  The Company utilized these loans for  capital improvements and temporary operating funds.

"Other, net"  decreased approximately $1.6 million for the year 2005 as compared to the year  2004 primarily due to a decrease in the amount of gain realized on the sale of  other equity investments of approximately $.9 million and an increase in  subsidiary income allocated to minority interest of approximately $.6 million.

The effective tax  rates for years 2005 and 2004 were 29.1% and 34.4%, 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, domestic  production activities deduction, minority interest in consolidated income and  valuation allowance.  During 2005, percentage depletion reduced the effective  tax rate by 6.7%.  During 2004, a valuation allowance increased the effective  tax rate by 16.9%.  This increase was substantially offset by the effects of  percentage depletion and minority interest in consolidated income which  reduced the effective tax rate by 13.3% and 3.5%, respectively.  

4.

**2004 Compared to  2003**--Consolidated net sales for the year ended December 31, 2004 were  approximately $145.1 million, an increase of $23.0 million as compared to the  year ended December 31, 2003. Sales in our Cement Business were higher by $2.8  million due to a combination of a moderate increase in both sales volume and  price attributable to the factors discussed under "General" above.  Sales in  our Ready-Mixed Concrete Business were higher by $20.2 million in 2004 as  compared to 2003, again primarily due to higher sales volumes primarily in  construction contracts as discussed under "General" above.  

Our overall gross  profit rate for the year 2004 was 9.7% compared to 13.7% for the year 2003.   Gross profit rate in the Cement Business increased less than .5%.  In late  2004, we began to benefit from our new coal firing system reducing our  dependence on natural gas and reducing our fuel costs by approximately $1.7  million.  We also benefited from a reduction in pension expense of  approximately $.2 million due to higher stock market prices at the end of  2003; however, these reductions were offset by slightly higher labor and  health insurance costs of approximately $.6 million and $.9 million,  respectively.  Gross profit rate in the Ready-Mixed Concrete Business  decreased 5.4%.  This decrease in gross profit rate was primarily due to the  costs associated with the construction contracts as discussed under "General"  above.  Gross profit from construction contracts decreased approximately $3.1  million creating a loss on these contracts.  Increases in raw material costs  and fuel of approximately $.6 million and $.3 million, respectively, also  contributed to the decrease in gross profit for this line of business.

          Selling, general and administrative expenses  increased .6% during the year 2004 compared to the year 2003.  These costs are  normally considered fixed costs that do not vary significantly with changes in  sales volume.  

          Interest income decreased $.1 million during 2004  as compared to the year 2003 primarily due to modest decreases in  investments.  

          Interest expense decreased $.1 million during  2004 as compared to the year 2003 primarily due to the capitalization of  interest in 2004. 

"Other, net"  increased approximately $1.3 million for the year 2004 as compared to the year  2003 primarily due to an increase in the amount of gain realized on the sale  of other equity investments of approximately $.7 million and an increase in  subsidiary losses allocated to minority interest of approximately $.5 million.

The effective tax  rates for years 2004 and 2003 were 34.4% and 28.9%, 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, minority  interest in consolidated income and valuation allowance.  During 2004, a  valuation allowance increased the effective tax rate by 16.9%.  This increase  was substantially offset by the effects of percentage depletion and minority  interest in consolidated income which reduced the effective tax rate by 13.3%  and 3.5%, respectively.  During 2003, percentage depletion reduced the  effective tax rate by 7.2%.

**LIQUIDITY**

We are  able to meet our cash needs primarily from a combination of operations and  bank loans.  Cash provided by operations in 2005 exceeded the amount used for  capital expenditures, dividends and the repayment of bank loans.  Our cash  balance at the end of 2005 was slightly lower than our balance at the end of  2004 due to placing $1.5 million in a short-term investment.  This investment  matures during the first quarter of 2006 and will be used to help cover  operating expenses and capital expenditures. 

5.

In  December 2005, we renewed our line of credit with our current lender.  Our  current unsecured credit commitment consists of a $25 million advancing term  loan maturing December 31, 2009 and a $10 million line of credit maturing  December 31, 2006.  The term loan bears a floating interest rate based on  JP Morgan Chase prime rate less .75% and the line of credit bears a floating  interest rate based on lender's national prime rate less 1.00%.  The loan  agreement contains a financial covenant related to net worth which the Company  was in compliance with at year end.  As of December 31, 2005, we had borrowed  $23.2 million on the advancing term loan and $-0- on the line of credit  leaving a balance available on the line of credit of $10 million.  The annual  weighted average interest rate we paid on the advancing term loan during 2005  and 2004 was 5.43% and 3.09%, respectively. The annual weighted average  interest rate we paid on the line of credit during 2005 and 2004 was 5.18% and  3.00%, respectively.  At year end, the applicable interest rate was 6.50% on  the advancing term loan and 6.25% 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 we build inventory  due to the seasonality of our business.  Our board of directors has given  management the authority to borrow an additional $15 million for a maximum of  $50 million.  

  Contractual obligations at December 31, 2005, consisting of maturities on  long-term debt, estimated interest payments on debt, pension, postretirement  benefit obligations and open purchase orders are as follows:
2006 2007200820092010ThereafterLong-term debt$  1,965,106$  2,240,908$  2,457,558$ 17,146,823$     249,571$              27,030Interest payments1,526,4501,383,6041,231,3161,068,96012,783
-Pension 914,000
-
-
-
-
-Postretirement   benefit obligations1,360,6361,436,6911,485,0831,513,8381,540,5698,430,680Open purchase orders8,455,000750,000
-
-
-
-
                                                       

The  long-term debt obligation is based on current interest rates and assumes that  the advancing term loan is paid off at maturity.

The  Company has been required to make a pension contribution in two of the past  five years.  In 2005 and 2003, the Company contributed approximately $.6  million and $.3 million, respectively, to the pension fund.  No estimates of  required pension payments have been asked for or made beyond 2006.

Each  segment of the cement manufacturing process requires significant investment in  major pieces of equipment.  Once installed, this equipment, if properly  maintained, functions for many years.  Generally we spend several million  dollars each year on preventive maintenance and equipment repairs; however,  capital expenditures vary from year to year.  A piece of equipment that costs  $25 - $30 million may remain in service for fifty years.  After a period of  time, this equipment may be modified to incorporate the latest technology,  increasing its efficiency and production capacity and extending its useful  life.  In the years Monarch invests in major equipment replacements or  enhancements, current operations do not generate enough cash to pay for the  improvements, requiring us to use our cash on hand or bank financing.  As  projects are completed, we reduce the amount needed for major capital  expenditures, allowing us to pay off any outstanding bank loans and accumulate  cash for the next major plant improvement.  

The  Company completed the conversion of one of its two preheater kilns to a  precalciner kiln in 2001 and has started the conversion of our remaining  preheater kiln to a precalciner kiln.  As of year end, we had spent

6. 

approximately $10.7 million on equipment and installation costs and expect to  spend an additional $7.5 million on installation, electrical and refractory to  complete the conversion.    Installation is expected to be completed in the first  quarter of 2006. The conversion of this kiln should increase our production capacity by  approximately 200,000 tons per year.  Although we will have to shut down this kiln for about six weeks during the conversion, we are  projecting a 15% increase in total clinker production for the year 2006 as  compared to 2005 due to the increased kiln capacity after the conversion.   This kiln was also shut down approximately six weeks during early 2005 for the  cooler installation.  We have not started depreciating the precalciner  equipment.  

The  Company is also in the process of expanding its corporate office.  Completion  is anticipated in mid-2006 at a total cost of approximately $2.7 million.  As  of year end, we had spent approximately $1.7 million on this expansion.  We  have not started depreciating this addition.

Other  projects, including changes to our quarrying and grinding operation to supply  the raw materials required by the increased kiln capacity and increasing our  finished cement storage capacity, are currently under consideration.  Although  we anticipate an increase in capital expenditures during 2006, we do not  anticipate the need for additional bank financing other than that available  under existing lines of credit.

For  several years the Company has paid a $.20 per share dividend in January,  March, June and September.  Although dividends are declared at the board's  discretion, we project future earnings will support the continued payment of  dividends at the current level.

**FINANCIAL CONDITION**

Total  assets as of December 31, 2005 were $144 million, an increase of $8.9 million  since December 31, 2004 due primarily to increases in property, plant and  equipment, deferred income taxes and short-term investments of approximately  $5.9 million, $2.1 million and $1.5 million, respectively.  Property, plant  and equipment increased as a result of the purchase and installation of new  equipment.  Deferred income taxes increased primarily due to increases in  minimum pension liability and net operating loss carryforwards.  Short-term  investments increased as a result of sales during the latter part of the year  generating cash in excess of the amount needed to finance current operations.

  Accounts payable increased about $3.3 million as of December 31, 2005 compared  to December 31, 2004 primarily due to $2.0 million of capital equipment  additions included in accounts payable at the end of 2005. Maintenance  projects and additional construction projects near the end of 2005 also  contributed to the increase in accounts payable at year end.

  Indebtedness decreased about $3.0 million during the year 2005 primarily as a  result of utilizing cash provided by operations to reduce our bank loans.

During  2005, we adjusted the minimum pension liability, resulting in an increase in  current and long-term accrued pension expense of $.9 million and $.9 million,  respectively, and a decrease in stockholders' investment of $1.1 million. The  change in minimum pension liability was primarily due to reducing the discount  rate for financial disclosure at December 31, 2005 from 6.00% to 5.75% to keep  our plan in line with current trends in market index fund rates. 

  Stockholders' investment increased 6.7% during 2005 primarily as a result of  net income.  Basic earnings were $2.40 per share and dividends declared were  $.80 per share for the year 2005.

7.
 
**CAPITAL RESOURCES**

          The Company historically invests $10 million  to $12 million per year on capital expenditures to keep its equipment and  facilities in good operating condition.  Capital expenditures during 2005  included installation of a new clinker cooler, the beginning stages of  construction of an addition to our corporate offices and preliminary work on  the conversion of our remaining preheater kiln to a precalciner kiln.  We also  invested in routine equipment purchases in the Ready-Mixed Concrete Business  during 2005.  Property, plant and equipment expenditures for the year 2005  totaled approximately $14.4 million.  

          The Company plans to complete the  installation of the precalciner in the first quarter of 2006 and the corporate  office addition in midyear.  In addition, preliminary plans under  consideration for 2006 include changes to our quarrying and grinding operation  to supply the raw materials required by the increased kiln capacity and  increasing our finished cement storage capacity.  If we elect to proceed with  these and other related projects, additional bank financing may be required.   Additional borrowings during 2006 are not anticipated to exceed the amount  available through our existing line of credit.

          The Company also plans to invest in other  miscellaneous equipment and facility improvements in both the Cement Business  and Ready-Mixed Concrete Business in 2006.  It is expected that the Company's  capital expenditures, including the completion of the office addition and  conversion of the preheater kiln to a precalciner kiln, will approximate $15  million during 2006 and will be funded with a mixture of cash from operations  and temporary bank loans.

           **Accounting  Policies**--The critical accounting policies with respect to the Company are  those related to pension and postretirement benefits.

          Monarch has defined  benefit pension plans covering substantially all permanent employees in the  Cement Business.  Plans covering staff (salaried) employees provide pension  benefits that are based on years of service and the employee's last sixty  calendar months of earnings or the highest five consecutive calendar years of  earnings out of the last ten calendar years of service, whichever is greater.   Plans covering production (hourly) employees provide benefits of stated  amounts for each year of service.  Generally, Monarch's funding policy is  to contribute annually an amount within the minimum/maximum range of tax  deductible contributions computed by the actuaries.  Contributions are  intended to provide for benefits attributed to service to date and for those  expected to be earned in the future. Monarch expects 2006 cash expenditures  for these plans to be approximately $.9 million.

          Monarch also  provides other postretirement employee benefits including health care and life  insurance benefits to all retired employees who, as of their retirement date,  have completed ten or more years of credited service under the pension plans.   These benefits are self-insured by Monarch and are paid out of Monarch's  general assets.  Monarch expects 2006 cash expenditures for this plan to be  approximately $1 million.

          We account for our  pension plans in accordance with Financial Accounting Standards Board (FASB)  Statement No. 87, "Employers' Accounting for Pensions" (FAS 87) and our  postretirement benefits in accordance with FASB Statement No. 106, "Employers'  Accounting for Postretirement Benefits Other Than Pensions" (FAS 106).  FAS 87  and FAS 106 require us to make various estimates and assumptions, including  discount rates used to value liabilities, expected rates of return on plan  assets, salary increases, employee turnover rates, anticipated employee  mortality rates and expected future healthcare costs.  The estimates

8.
 
we used are  based on our historical experience as well as current facts and circumstances and  are updated at least annually.  We use third-party actuaries to assist us  in properly measuring the expense and liability associated with these  benefits.

          The Financial  Accounting Standards Board (FASB) has issued the following new accounting  pronouncements. 

          In December 2004,  the Financial Accounting Standards Board (FASB) issued FASB Statement No. 123  (revised 2004), Share-Based Payment.  The Statement generally provides that  the cost of Share-Based Payments be recognized over the service period based  on the fair value of the option or other instruments at the date of grant.   The grant date fair value should be estimated using an option-pricing model  adjusted for the unique characteristics of the options or other instruments  granted.  The Company must use the Black-Scholes option pricing model for  outstanding options.  With respect to future grants, the Company may elect to  use the Black-Scholes option pricing model or may elect to determine the grant  date fair value using an alternative method. This Statement will be effective  for the Company beginning July 1, 2005.  Since stock options are not a part of  our employee benefits, this pronouncement should have no affect on our  financial statements.

          In November 2004,  the Financial Accounting Standards Board (FASB) issued FASB Statement No. 151,  Inventory Costs, an amendment of ARB No. 43, Chapter 4.  This Statement  clarifies that items such as idle facility expense, excessive spoilage, double  freight, and re-handling costs should be classified as a current-period  charge.  The Statement also requires the allocation of fixed production  overhead to inventory based on the normal capacity of the production  facilities.  The statement is effective for inventory costs incurred during  fiscal years beginning after June 15, 2005.  The Company has not yet  determined the impact that this new pronouncement will have on the Company's  consolidated financial statements for 2006 and beyond.

          In December 2004,  the Financial Accounting Standards Board (FASB) issued FASB Statement No. 153,  Exchanges of Nonmonetary Assets, an amendment of APB Opinion No. 29.   Statement No. 29 generally provides that exchanges of nonmonetary assets  should be measured based on the fair value of the assets exchanged subject to  certain exceptions to the general rule.  The Statement amends Opinion No. 29  to eliminate the exception for exchanges involving similar productive assets  with a general exception for exchanges that do not have commercial substance.   A nonmonetary exchange has commercial substance if the future cash flows of  the entity are expected to change significantly as a result of the exchange.   This Statement is effective for nonmonetary asset exchanges in periods  beginning after June 15, 2005.  The Company has not yet determined the impact  that this new pronouncement will have on the Company's consolidated financial  statements.

           **Market  Risks**--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 market.  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,  concrete products 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.

9.
 
          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 .75% and lender's national prime  rate less 1.00%, respectively.

           **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, and to a  lesser extent natural gas, in its kilns.  While we do not anticipate a  significant increase above the rate of inflation in the cost of these solid  fuels, natural gas, or in the electricity required to operate our cement  manufacturing equipment, an increase in such manufacturing components could  adversely affect us.  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.

**STOCK MARKET AND DIVIDEND DATA**

On March  1, 2006, Monarch's stock was held by approximately 700 record holders.   Monarch is the transfer agent for Monarch's stock which is traded on the  over-the-counter market.  Over-the-counter market quotations reflect interdealer prices, without retail mark-up, mark-down or commission and may  not necessarily represent actual transactions.  Following is a schedule of the  range of low and high bid quotations as reported by Yahoo! at  http://finance.yahoo.com/, and dividends declared for each quarter of our  two latest fiscal years:

2005
2004
Price
Dividends
Price
DividendsQuarter
Low  
High  
Declared 
Low  
High   
DeclaredFirst$22.100$23.410 $  -      $18.300$20.850 $  -Second$22.100$24.250 $.20            $20.000$22.100 $.20Third$21.050$26.210 $.20            $20.200$22.500 $.20Fourth$22.550$25.000$.40*$20.500$22.560$.40*
                    *Reflects declaration of two $.20 dividends  payable in the first quarter of 2006 and 2005. 
   
   
   
   
   
   
   
   
   
   
10.
   
**Report of IndependentRegistered Public Accounting Firm**

 

Audit Committee, Board of Directors     and Stockholders The Monarch Cement Company Humboldt, Kansas 

We have audited the accompanying consolidated balancesheets of The Monarch Cement Company as of December 31, 2005 and 2004, and the relatedconsolidated statements of income, comprehensive income, stockholders' investment and cash flows for eachof the three years in the period ended December 31, 2005. These financial statements are theresponsibility of the Company's management. Our responsibility is to express an opinion on thesefinancial statements based on our audits. 

We conducted our audits in accordance with the standardsof the Public Company Accounting Oversight Board (United States). Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, as well as evaluating theoverall financial statement presentation.  We believe that our audits provide a reasonable basisfor our opinion. 

In our opinion, the consolidated financial statementsreferred to above present fairly, in all material respects, the financial position of The Monarch CementCompany as of December 31, 2005 and 2004, and the results of its operations and its cash flows foreach of the three years in the period ended December 31, 2005, in conformity with accountingprinciples generally accepted in the United States of America. 

                                                                                       **    BKD, LLP**

Kansas City, Missouri February 10, 2006 

 
THE MONARCH CEMENT COMPANY AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSDECEMBER 31, 2005 AND 2004**ASSETS**2 0 0 5   2 0 0 4   CURRENT ASSETS:     Cash and cash    equivalents $        4,895,561$        4,999,253     Short-term    investment, at cost which approximates market1,500,000
-      Receivables, less allowances of $602,000 in 2005 and                  $727,000 in 2004 for doubtful accounts14,186,551    13,523,816     Inventories, priced at cost which is not in excess of market-              Finished cement$        1,868,412    $     2,679,506           Work in process1,632,780    1,456,854           Building products3,457,813    3,391,901           Fuel, gypsum, paper sacks and other3,317,283    2,919,528           Operating and maintenance supplies7,850,6177,500,453           Total inventories$   18,126,905    $   17,948,242     Refundable federal    and state income taxes
 -     812,807     Deferred income    taxes665,000    686,000     Prepaid expenses80,843170,236**                      Total current assets****$   39,454,860****$   38,140,354**PROPERTY, PLANT AND EQUIPMENT, at    cost, less accumulated depreciation            and depletion of $121,060,864 in 2005 and $113,663,839 in 200485,815,343    79,948,242DEFERRED INCOME TAXES4,111,000    1,965,000INVESTMENTS13,454,631    13,620,501OTHER ASSETS1,219,0821,526,069**$ 144,054,916****$ 135,200,166****LIABILITIES AND STOCKHOLDERS' INVESTMENT**   CURRENT LIABILITIES:      Accounts payable$        8,971,830    $     5,686,857   Line of credit payable
-    981,667   Current portion of advancing    term loan1,965,106    2,021,503   Accrued liabilities-         Dividends1,610,783    1,610,783      Compensation    and benefits 3,443,226    2,250,022      Federal and    state income taxes29,776
-      Miscellaneous    taxes664,423    863,591      Other751,613935,041                  **   Total current liabilities****$   17,436,757****$   14,349,464**LONG-TERM DEBT22,121,890 24,119,115ACCRUED POSTRETIREMENT BENEFITS11,456,039    10,128,039ACCRUED PENSION EXPENSE2,121,155    1,238,027MINORITY INTEREST IN CONSOLIDATED    SUBSIDIARIES1,246,317    1,349,566STOCKHOLDERS' INVESTMENT      Capital Stock, par value $2.50 per share, one vote per share ‐              Authorized 10,000,000 shares, Issued 2,464,926 shares at             December 31,    2005 and 2,406,197 shares at December 31, 2004$        6,162,315    $     6,015,493Class B Capital Stock, par value $2.50 per    share, ten votes per          share - Authorized 10,000,000 shares, Issued 1,562,032 shares at             December 31,    2005 and 1,620,761 shares at December 31, 20043,905,080    4,051,902   Retained earnings76,965,363    70,528,560   Accumulated other comprehensive    income2,640,0003,420,000**                     Total stockholders' investment****$   89,672,758****$   84,015,955****$ 144,054,916****$ 135,200,166**    *See notes to consolidated financial statements*  
12. 
THE MONARCH CEMENT COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOMEFOR    THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003                                                                                 2005     2004     2003     NET SALES$  141,319,928  $ 145,076,554  $ 122,028,311        COST OF SALES 115,137,868  130,989,824  105,277,681  **          Gross profit from    operations****$    26,182,060 ****$   14,086,730 ****$   16,750,630 **      SELLING, GENERAL AND      ADMINISTRATIVE EXPENSES12,394,449   12,168,447   12,096,298         **      Income from operations****$    13,787,611 ****$     1,918,283 ****$     4,654,332 **OTHERINCOME (EXPENSE)      Interest income$         418,290  $        379,449  $        456,216        Interest expense(1,507,267)(926,363)(987,100)      Other, net919,735  2,547,834  1,246,997  $       (169,242)$     2,000,920  $        716,113  **INCOME BEFORE PROVISION FOR INCOME TAXES****$    13,618,369 ****$     3,919,203 ****$     5,370,445 **PROVISION FOR INCOME TAXES3,960,000  1,350,000  1,550,000  **NET INCOME****$      9,658,369 ****$     2,569,203 ****$     3,820,445 ****Basic earnings per share****$2.40 ****$.64 ****$.95 **      CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR    THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003    2005     2004     2003     **NET INCOME****$     9,658,369 ****$     2,569,203 ****$     3,820,445 **UNREALIZED APPRECIATION (DEPRECIATION) ON   AVAILABLE FOR SALE SECURITIES (Net of deferred     tax(benefit) expense of $395,000, $1,615,000 and    $1,510,000 for 2005, 2004 and 2003,    respectively) 588,205  2,470,400  2,221,068  RECLASSIFICATION ADJUSTMENT FOR   REALIZED (GAINS) LOSSES INCLUDED IN    NETINCOME (Net ofdeferred tax (benefit) expense    of$155,000, $515,000 and $250,000 for 2005,     2004 and 2003, respectively)(228,205)(770,400)(381,068)MINIMUMPENSION LIABILITY (Netof deferred tax    (benefit) expense of $(760,000),    $(160,000) and $940,000    for 2005, 2004 and 2003, respectively)(1,140,000)(240,000)1,419,000  COMPREHENSIVE INCOME**$     8,878,369 ****$     4,029,203 ****$     7,079,445 ***Seenotes to consolidated financial statements*13.     THE MONARCH CEMENT COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF STOCKHOLDERS' INVESTMENTFOR    THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003                                                       AccumulatedClass B Other Capital Capital RetainedComprehensive Stockholders'StockStockEarningsIncomeInvestment**Balance at January 1, 2003****$  5,860,733 ****$  4,206,662 ****$  70,582,044 ****$ (1,299,000)****$   79,350,439 **          Net income-  -  3,820,445  -  3,820,445  Dividends declared ($.80 per share)-       -   (3,221,566) -       (3,221,566)Transfer of shares112,720  (112,720)-  -  -  Changein unrealized appreciation   on available for sale securities-  -  -  1,840,000  1,840,000  Adjustment to recognize   minimum pension liability-  -  -  1,419,000  1,419,000  **Balance at December 31, 2003****$  5,973,453 ****$  4,093,942 ****$  71,180,923 ****$  1,960,000 ****$   83,208,318 **Net income--  2,569,203  -  2,569,203  Dividends declared ($.80 per share)--  (3,221,566)-  (3,221,566)Transfer of shares42,040  (42,040)-  -  -  Changein unrealized appreciation   on available for sale securities - -  -  1,700,000  1,700,000  Adjustment to recognize   minimum pension liability-  -   -  (240,000)(240,000)**Balance at December 31, 2004****$  6,015,493 ****$  4,051,902 ****$  70,528,560 ****$  3,420,000 ****$   84,015,955 **Net income**- ****- **9,658,369  **- **9,658,369  Dividends declared ($.80 per share)**- ****- **(3,221,566)**- **(3,221,566)Transfer of shares146,822  (146,822)-  **- **-  Changein unrealized appreciation   on available for sale securities-  -  -  360,000  360,000  Adjustment to recognize   minimum pension liability-  -  -  (1,140,000)(1,140,000)**Balance at December 31, 2005****$  6,162,315 ****$  3,905,080 ****$  76,965,363 ****$  2,640,000 ****$   89,672,758 ***Seenotes to consolidated financial statements*
 

 

 

 

                                    

14.

 
THE MONARCH CEMENT COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR    THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003                                                       2005   2004   2003   **OPERATING ACTIVITIES:**Net income$     9,658,369   $     2,569,203   $   3,820,445  Adjustments to reconcile net income to   netcash provided by operating activities:      Depreciation,    depletion and amortization10,923,917   10,750,447   11,198,625        Minority interest    in earnings (losses) of subsidiaries63,587  (527,225)(16,234)      Deferred income    taxes(1,760,000) (644,000) (640,000)      Gain on disposal    of assets(226,420)(264,944)(445,079)      Realized gain on    sale of other investments(384,376)(1,285,400)(631,068)     Change in assets and liabilities:            Receivables, net  (662,735)  328,780  2,062,525                 Inventories(178,663) (1,829,990) (761,990)               Refundable income taxes 812,807   (812,807) 562,496                 Prepaid expenses89,393   (15,225) (71,214)               Other assets 41,984   36,398   30,569                 Accounts payable and accrued liabilities1,976,883  (623,472)762,009                 Accrued postretirement benefits1,438,636  823,119  332,543              Accrued pension    expense(1,016,872)452,484  326,168        Net cash provided    by operating activities$   20,776,510  $     8,957,368  $  16,529,795  **INVESTING ACTIVITIES:**Acquisition of property, plant and equipment$  (14,380,650)$  (12,720,642)$  (6,418,334)Proceeds from disposals of property, plant and    equipment 505,809  654,378  543,933  Payment for purchases of equity investments-  (589,872)(240,849)Proceeds from disposals of equity investments1,150,246  2,557,673  1,004,268  Increase in short-term investments, net(1,500,000)-  -  Purchasesof subsidiaries' stock(398,752)(118,999)(128,508)      Net cash used for    investing activities$  (14,623,347)$  (10,217,462)$  (5,239,490)**FINANCING ACTIVITIES:**Increase (decrease) in line of credit, net$      (981,667)$        981,667  $  (3,048,076)Proceeds from bank loans- 5,805,645  -  Payment on bank loans(1,791,944) (2,527,258)(3,278,387)Payments on other long-term debt(261,678)(186,048)(213,473)Cash dividends paid (3,221,566)(3,221,566)(3,221,566)Subsidiaries' dividends paid to minority    interest-(31,111)-        Net cash provided    by (used for) financing activities$    (6,256,855)$        821,329  $  (9,761,502)**Net decrease in cash and cash equivalents****$      (103,692)****$      (438,765)****$    1,528,803 ****Cash and Cash Equivalents, beginning of year****4,999,253 ****5,438,018 ****3,909,215 ****Cash and Cash Equivalents, end of year****$     4,895,561 ****$     4,999,253 ****$    5,438,018 ****Additional Cash Flow Information:**Interest paid, net of amount capitalized $     1,512,196  $        930,675  $       992,209  Income taxes paid, net of refunds$     4,876,767  $     3,141,181  $    1,295,660  Capital equipment additions included in accounts    payable$     2,037,838  $                      -   $                     -   *Seenotes to consolidated financial statements*
15.
THE MONARCH CEMENT COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSFOR    THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003                                                       
  (1)     **NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT  ACCOUNTING POLICIES**           (a)     **Nature of  Operations**‐‐The Monarch Cement Company (Monarch) is principally engaged in  the manufacture and sale of portland cement.  The marketing area for Monarch's  products consists primarily of the State of Kansas, the State of Iowa,  southeast Nebraska, western Missouri, northwest Arkansas and northern  Oklahoma.  Sales are made primarily to contractors, ready-mixed concrete  plants, concrete products plants, building materials dealers and governmental  agencies.  Companies controlled by Monarch sell ready-mixed concrete, concrete  products and sundry building materials in metropolitan areas within Monarch's  marketing area. 

             (b)     **Principles of  Consolidation**‐‐Monarch has direct control of certain operating companies  that have been deemed to be subsidiaries within the meaning of accounting  principles generally accepted in the United States of America and the rules  and regulations of the Securities and Exchange Commission.  Accordingly, the  financial statements of such companies have been consolidated with Monarch's  financial statements.  All significant intercompany transactions have been  eliminated in consolidation. Minority interests in net income (loss) have been  recorded as reductions or increases in other income in the accompanying  statements of income.  The minority interests in net income (loss) were  $63,588, $(527,225) and $(16,234) during 2005, 2004 and 2003, respectively.

            (c)     **Use of  Estimates**--The preparation of financial statements in conformity with  accounting principles generally accepted in the United States of America  requires management to make estimates and assumptions that affect the reported  amounts of assets and liabilities and disclosure of contingent assets and  liabilities at the date of the financial statements and the reported amounts  of revenues and expenses during the reporting period.  Actual results could  differ from those estimates.

             (d)**     Reclassifications**--Certain  reclassifications have been made to the 2004 and prior financial statements to  conform to the current year presentation.  

            (e)     **Cash  Equivalents**--The Company considers all liquid investments with original  maturities of three months or less to be cash equivalents.  At December 31,  2005 and 2004, cash equivalents consisted primarily of money market  investments and repurchase agreements with various banks.  From time to time,  the Company's cash accounts exceed federally insured limits.

            (f)     **Investments**--The  Company's short-term investment consists of a certificate of deposit with a  maturity of six months or less and has been classified as held-to-maturity.   Equity securities for which the Company has no immediate plan to sell but that  may be sold in the future are classified as available for sale and carried at  fair value.  Unrealized gains and losses are recorded, net of related income  tax effects, in stockholders' investment.  Realized gains and losses, based on  the specifically identified cost of the security, are included in net income.

            (g)     **Receivables**--Accounts  receivables are stated at the amount billed to customers.  The Company  provides an allowance for doubtful accounts, which is based upon a review of  outstanding receivables, historical collection information and existing  economic conditions.  Accounts receivables are ordinarily due 30 days after  the issuance of the invoice.  Accounts past due are considered delinquent.   Delinquent receivables are written off based on individual credit evaluation  and specific circumstances of the customer. 

16.
THE MONARCH CEMENT COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS  FOR THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003
           (h)     **Inventories**‐‐Inventories  of finished cement and work in process are recorded at the lower of cost or  market on a last‐in, first‐out (LIFO) basis.  Total inventories reported under  LIFO amounted to $3,444,767 and $4,136,360 as of December 31, 2005 and 2004,  respectively.  Under the average cost method of accounting (which approximates  current cost), these inventories would have been $1,837,000, $2,000,000 and  $1,994,000 higher than those reported at December 31, 2005, 2004 and 2003,  respectively.  The cost of manufactured items includes all material, labor,  factory overhead and production-related administrative overhead required in  their production.                     Other  inventories are purchased from outside suppliers.  Fuel and other materials  are priced by the first‐in, first‐out (FIFO) method while operating and  maintenance supplies are recorded using the average cost method.

            (i)      **Property, Plant and Equipment**‐‐Property, plant and equipment are stated at  cost of acquisition or construction.  The Company capitalizes the cost of  interest on borrowed funds used to finance the construction of property, plant  and equipment.  During 2005 and 2004, the Company capitalized approximately  $53,700 and $48,000, respectively, of interest expense related to current  construction projects.  During 2003 the Company did not capitalize any  interest expense. 

          Depreciation of property, plant and equipment is  provided by charges to operations over the estimated useful lives of the  assets using accelerated methods.  The Company's buildings, machinery and  equipment are depreciated using double declining balance depreciation.  The  Company switches to straight line depreciation once it exceeds the amount  computed under the double declining balance method until the asset is fully  depreciated.  We do not depreciate construction in process.  Depletion rates  for quarry lands are designed to amortize the cost over the estimated  recoverable reserves.  Expenditures for improvements that significantly  increase the assets' useful lives are capitalized while maintenance and  repairs are charged to expense as incurred. 

            (j)      **Income Taxes**‐‐Deferred  tax assets and liabilities are recognized for the tax effects of differences  between the financial statement and tax bases of assets and liabilities.  A  valuation allowance is established to reduce deferred tax assets if it is more  likely than not that a deferred tax asset will not be realized.

          (k)     **Revenue Recognition**‐‐The Company  records revenue from the sale of cement, ready-mixed concrete, concrete  products and sundry building materials when the products are delivered to  customers. Concrete products are also sold through long-term construction  contracts.  Revenues for these contracts 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 receivables and are generally due within one year.

          (l)       **Cost of Sales**--The Company considers all production and shipping costs,  (gain) loss on disposal of assets, inbound freight charges, purchasing and  receiving costs, inspection costs, warehousing costs, and internal transfer  costs as cost of sales.          

            (m)      **Selling, General and Administrative Expenses**--Selling, general and  administrative expenses consists of sales personnel salaries and expenses,  promotional costs, accounting personnel salaries and expenses, director and  administrative officer salaries and expenses, legal and professional expenses,  and other expenses related to overall corporate costs.17.
 
            (n)      **Earnings per Share**‐‐Basic earnings per share is based on the weighted  average common shares outstanding during each year.  Diluted earnings per  share is based on the weighted average common and common equivalent shares  outstanding each year.  Monarch has no common stock equivalents and therefore,  does not report diluted earnings per share.  The weighted average number of  shares outstanding was 4,026,958 in 2005, 2004 and 2003. 

            (o)     **Self  Insurance**‐‐The Company has elected to self-insure certain costs related to  employee health and accident benefit programs.  Costs resulting from  self-insured losses are charged to income when incurred.

            (p)      **Disclosure about Fair Value of Financial Instruments**--Fair value is the  estimated amount at which financial assets or liabilities could be exchanged  in a current transaction between willing parties, other than in a forced or  liquidation sale.  Cash and cash equivalents, receivables, accounts payable,  bank loans payable and long-term debt have carrying values that approximate  fair values.  Investment fair values equal quoted market prices, if available.   If quoted market prices are not available, fair value is estimated based on  quoted market prices of similar securities.

  (2)     **INVESTMENTS**

          Investments include equity  securities which have been classified as available-for-sale.  Realized  gains are computed using the specific identification method.  The equity  investment results for the years ended December 31, 2005, 2004 and 2003 are as  follows:
2005   2004   2003   Fair value of investments  $   13,454,631 $   13,620,501 $   11,502,902Cost of investments 5,354,6316,120,5016,802,902   Gross unrealized gains$     8,100,000$     7,500,000$     4,700,000Unrealized gain recorded in equity$     4,860,000$     4,500,000$     2,800,000Deferred income taxes  3,240,000  3,000,0001,900,000$     8,100,000$     7,500,000$     4,700,000Proceeds from sale of securities$     1,550,246$     2,557,673$     1,004,268Realized gains $           384,376$     1,285,400 $           631,068
  (3)     **PROPERTY, PLANT AND EQUIPMENT**

          Property, plant and  equipment at December 31, 2005 and 2004 consisted of:Depreciation Lives (Years)   2005      2004      Quarry lands                 $            1,806,742 $         1,470,386Mill site and buildings12-5022,798,16823,097,131Machinery and equipment 5-25127,303,293118,615,572Transportation equipment 3-1233,273,66031,945,457Office furniture and fixtures 5-201,735,6031,698,817Office and other buildings10-305,055,8875,055,887Construction in process 14,902,85411,728,831$     206,876,207$     193,612,081Less--Accumulated depreciation and depletion121,060,864113,663,839$       85,815,343$       79,948,242
18.
THE MONARCH CEMENT COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003 
  4)     **LINE OF CREDIT AND LONG-TERM DEBT**

          In December 2005, Monarch renewed and modified its line of credit with a bank.  Monarch's current unsecured credit commitment consists of a $25,000,000 advancing term loan maturing December 31, 2009 and a $10,000,000 line of  credit maturing December 31, 2006.  At December 31, 2005 and 2004, there was  $-0- and $981,667, respectively, borrowed against the line of credit.  This  line contains a financial covenant related to net worth which the Company was  in compliance with at year end.  Interest on the line of credit varies with  the lender's National Prime rate less 1.00% for 2006 and 2005 (.75% for  2004).  The applicable interest rate was 6.25% and 4.25% on December 31, 2005  and 2004, respectively, and is payable quarterly.
     2005      2004      Note payable, bank (a)     $   23,208,056 $   25,000,000Other     878,940 1,140,618          $  24,086,996     $  26,140,618Less current maturities     1,965,106     2,021,503          $   22,121,890     $   24,119,115(a)   Due December 31, 2009; payable $857,000 quarterly including interest;     interest computed based on JP Morgan Chase prime rate less .75% (1.25% for    2004) subject to a financial covenant related to net worth which the Company    was in compliance with at year end.
  Aggregate annual maturities of long-term debt as of December 31, 2005 are:
2006 1,965,10620072,240,90820082,457,558200917,146,8232010249,571Thereafter27,030 $   24,086,996(5)     **INCOME TAXES**          The components of the provision for federal and state income taxes in the accompanying consolidated statements of income are as follows:2005   2004   2003   Taxes currently payable$     5,720,000 $     1,994,000 $     2,190,000Deferred income taxes(1,760,000)(644,000)(640,000)        Income tax expense    $     3,960,000$     1,350,000$     1,550,000          A  reconciliation of income tax expense at the statutory rate to the Company's  actual income tax expense is as follows:2005   2004   2003   Computed at statutory rate (34%)$     4,659,000 $     1,333,000 $     1,826,000Increase (decrease) resulting from:   State income taxes, net of federal tax benefit    149,000(47,000)52,000   Percentage depletion (913,000)(523,000)(385,000)   Valuation allowance220,000661,000-      Domestic production activities deduction(147,000)-   -      Minority interest in consolidated income (loss)22,000(138,000)(6,000)   Other(30,000)64,00063,000            Provision    for income taxes$     3,960,000$     1,350,000$     1,550,00019.             The tax effects of  significant temporary differences relating to deferred taxes shown on the  balance sheets were:
     2005      2004      Current:   Allowance for doubtful accounts     $        241,000   $        291,000     Accrued vacation     383,000   351,000     Other     41,000       44,000        Net current deferred tax    assets     $        665,000       $        686,000                           Noncurrent:                       Depreciation     $      (653,000)     $      (308,000)      Postretirement benefits     5,127,000       4,551,000     Minimum pension liability     1,480,000       495,000     Unrealized holding gains     (3,240,000)     (3,000,000)   Net  operating loss carryforwards     1,038,000       320,000     Other, net     359,000       (93,000)      Net long-term deferred tax    assets     $     4,111,000       $     1,965,000  
             Some of the Company's  subsidiaries file separate federal and/or state income tax returns which have  resulted in net operating loss carryforwards.  Deferred taxes resulting from  net operating loss carryforwards are included in the above table net of  valuation allowances.  The valuation allowance has been used to reduce the tax  benefit associated with the net operating loss carryforwards.  The provision  for income taxes and income tax liabilities recorded in the financial  statements include those separate calculations. 

  (6)     **POSTRETIREMENT BENEFITS**

             Monarch provides certain  postretirement health care and life insurance benefits to all retired  employees in the Cement Business who, as of their retirement date, meet the  eligibility requirements.  These benefits are self‐insured by Monarch and are  paid out of Monarch's general assets.  Monarch expects 2006 cash expenditures  for this plan to be approximately $1,360,000.

             Monarch uses a December  31 measurement date for the plans.  At December 31, 2005 and 2004, the current  portion of the accrued benefit cost of approximately $1,360,000 in each year  is recorded in compensation and benefits.  Information about the plans' funded  status and postretirement cost follows:              
      2005      2004                     Change in benefit obligation                                       Beginning of year      $     18,040,481   $     14,658,970                       Service cost     459,788   426,079                       Interest cost     1,446,965       1,168,538                       Actuarial loss     7,082,412       2,986,526                       Medicare Part D Subsidy     (1,719,696)     -                          Benefits and expenses paid     (1,192,216)     (1,199,632)                         End of year     $     24,117,734       $     18,040,481                 Funded status     $   (24,117,734)     $   (18,040,481)               Unrecognized net actuarial loss     11,301,059       6,662,442                 Accrued benefit cost     $   (12,816,675)     $   (11,378,039)   
20.
THE MONARCH CEMENT COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSFOR    THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003                                                       
          The assumed annual rate  of increase in the per capita cost of covered health care benefits was 9% for  2005, 10% for 2004 and 7% for 2003.  This trend rate is assumed to decrease in  future years, 1% per year to an ultimate annual rate of 5%.  Following are the  components of net periodic benefit cost:2005   2004   2003    Components of net periodic benefit cost                       Service cost$     459,788 $     426,079 $     179,380      Interest cost1,446,965 1,168,538 922,514      Unrecognized net loss724,099 428,134 186,695          Net    periodic benefit cost$  2,630,852 $  2,022,751 $  1,288,589Weighted-average assumptions as of December 31                       Discount rate6.00% 6.00% 6.25%
          Assumed health care cost  trend rates have a significant effect on the amounts reported for the health  care plans.  A one-percentage-point change in assumed health care cost trend  rates would have the following effects: 
      1% Increase     1% DecreaseEffect on interest and service cost$         292,443$        (239,101)Effect on postretirement benefit obligation3,052,192 (2,506,808)
          On December 8, 2003, the  Medicare Prescription Drug Improvement Modernization Act of 2003 (the Act) was  signed into law.   The Act introduces a prescription drug benefit under  Medicare Part D, as well as a federal subsidy of sponsors of retiree health  care benefit plans that provide benefits at least actuarially equivalent to  Medicare Part D.  The Company has concluded that the benefits provided to most  of our retirees are actuarially equivalent to Medicare Part D under the Act.  

          The following benefit payments (net of employee  contributions) are expected to be paid as of December 31, 2005:
      Gross     Subsidy Receipts        Net       2006$  1,353,916$     58,041$  1,295,87520071,427,533 63,036 1,364,49720081,473,361 68,591 1,404,77020091,500,951 69,496 1,431,4552010  1,525,22270,8911,454,3312011-20158,284,248 392,969 7,891,279
  (7)     **PENSION PLANS**

          Monarch has  noncontributory defined benefit pension plans covering substantially all  employees in the Cement Business who meet the eligibility requirements.   Generally, Monarch's funding policy is to contribute annually the maximum  amount that can be deducted for federal income tax purposes.  Monarch expects  to contribute approximately $914,000 to the plans in 2006.          21.

           Monarch uses a December 31 measurement date for the plans.  At December 31, 2005 and  2004, the current portion of the pension liability of $914,000 and $-0-,  respectively, is recorded in compensation and benefits.  Information  about the plans' funded status and pension cost follows:
2005  2004            Change in    benefit obligation                            Beginning of year $   27,729,906   $    26,531,662                      Service cost  512,671   459,956                   Interest cost  1,681,656   1,633,103                      Actuarial loss  1,521,755   782,516                      Benefits paid and expenses (1,736,990) (1,677,331)                        End of year $   29,708,998   $    27,729,906           Change in fair value of plan assets                            Beginning of year $   24,368,892   $    23,914,705                      Actual return on plan assets 1,239,597   2,131,518                      Employer contribution 596,710   -                      Benefits paid and expenses (1,736,990) (1,677,331)                        End of year  $   24,468,209   $    24,368,892           Accumulated    benefit obligation  $   28,049,029   $    26,230,042           Funded    status $    (5,240,789) $     (3,361,014)         Unrecognized    net actuarial loss 5,358,119   3,300,349           Unrecognized    prior service cost 547,515   622,638                      Prepaid benefit cost $        664,845   $         561,973           Adjustment    required to recognize minimum liability (4,245,666) (2,423,123)                    Pension liability $    (3,580,821) $     (1,861,150)        Other amounts recognized in the balance    sheets:                            Accumulated other comprehensive income $    (2,220,000) $     (1,080,000)
          The weighted average  assumptions used to determine net pension cost and benefit obligations as of  December 31 are as follows:
2005   2004   2003   Discount rate5.75%6.00%6.25%Expected return on plan assets8.00%8.00%8.00%Rate of compensation increase (Staff plan only)4.50%4.50%4.50%
        The following table  presents the components of net periodic pension cost as of December 31, 2005,  2004 and 2003: 2005        2004        2003   Service cost $             512,671       $         459,956       $         405,229  Interest cost 1,681,656       1,633,103       1,642,857  Expected return on plan assets(1,873,733)     (1,840,183)     (1,508,629)Amortization of transitional obligation     -       -       -  Amortization of prior service cost75,123       75,123       73,440  Recognized net actuarial gain98,121       24,485       134,029  Net periodic pension expense$             493,838  $         352,484  $         746,926  
22.
THE MONARCH CEMENT COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSFOR    THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003                                                                    The Company has  estimated the long-term rate of return on plan assets based primarily on  historical returns on plan assets as well as current facts and circumstances.
         Plan assets  are held by a trustee bank.  A fund manager has been retained to make all  investment decisions within guidelines specified by Monarch.  The guidelines  permit investment in both equities and fixed income securities including  common stocks, corporate bonds and debentures and U.S. Government securities.   Asset allocation is primarily based on a strategy to provide stable earnings  while still permitting the plan to recognize potentially higher returns  through investment in equity securities.  The target asset allocation  percentages for 2005 and 2004 are as follows:
Equities 
60%Fixed Income          
40%
           The Plan allows a 5% fluctuation  before assets are re-balanced.  At December 31, 2005 and 2004, plan assets by  category were as follows:                                                                                                           2005           2004                                                                        Equities                     61%            61%                                                                          Debt  securities          37%            22%                                                                        Other                           2%            17%

           The following benefit payments are expected to be paid as of December 31,  2005:                                              
2006  
$  1,888,7332007 1,888,47020081,960,01420091,935,37820101,898,9582011-2015                             10,054,677
           The Company has defined  contribution plans covering substantially all permanent employees of the  Ready‐Mixed Concrete Business.  These plans allow the Company, at its  discretion, to match the employee's contributions.  For the 2005, 2004 and  2003 plan years, the Company matched 25% of the first 6% of the employee's  compensation up to a maximum match of $2,500.  The Company contributed  $95,302, $76,429 and $73,778 to these plans for the years 2005, 2004 and 2003,  respectively.  The Company expects to contribute $100,000 to these plans in  2006.

(8)     **COMMITMENTS AND CONTINGENCIES**

       According to variousagreements with certain minority stockholders of subsidiaries, under specifiedcircumstances, the Company is obligated to acquire certain minority shares, ifrequested to do so, at a value that approximates the minority interest on theBalance Sheet.

       A Monarch subsidiary,Monarch and three of its officers are involved in a lawsuit with the formerofficers of that subsidiary and companies formed by those officers.  We believeall claims filed against our subsidiary, Monarch and its officers are withoutmerit and we are pursuing judgment against the former officers and theircompanies.  We plan to vigorously pursue this case and do not anticipate anyliability as a result of this lawsuit.23.
(9)     **STOCKHOLDERS' INVESTMENT**
       Capital Stock and Class BCapital Stock have the same rights except as follows:  Class B Capital Stockhas supervoting rights of ten votes per share and restricted transferability;Class B Capital Stock is convertible at all times into Capital Stock on ashare-for-share basis; and Capital Stock has only one vote per share and isfreely transferable.

(10)   **LINES OF BUSINESS**

       The Company groups itsoperations into two lines of business - Cement Business and Ready-Mixed ConcreteBusiness.  The Company's business lines are separate business units that offerdifferent products. The accounting policies for each line are the same as thosedescribed in the summary of significant accounting policies.

       Following is informationfor each line for the years ended December 31, 2005, 2004 and 2003:       
 
Cement    Business Ready-Mixed    Concrete    Business Adjustments    and    Eliminations Consolidated**For the Year Ended December    31, 2005**         Sales to unaffiliated    customers$        64,299,277 $        77,020,651   $                         ‐   $      141,319,928    Intersegment sales 13,536,287 10,091   (13,546,378) ‐  ** **      Total net sales$        77,835,564 $        77,030,742   $       (13,546,378)  $      141,319,928    Income (loss) from    operations $        15,920,874 $        (2,133,263)   $        13,787,611    Other expense, net      (169,242)           Income before income taxes      $        13,618,369    Identifiable assets at    December 31, 2005$        82,405,866 $        35,803,776     $      118,209,642    Corporate assets      25,845,274             Total assets at December 31, 2005      $      144,054,916  **For the Year Ended December    31, 2004**         Sales to unaffiliated    customers$        51,408,457 $        93,668,097   $                        ‐    $      145,076,554    Intersegment sales11,048,074  -   (11,048,074) ‐             Total net sales $        62,456,531 $        93,668,097   $       (11,048,074)  $      145,076,554    Income (loss) from    operations $          6,790,090 $        (4,871,807)   $          1,918,283    Other income, net       2,000,920             Income before income taxes      $          3,919,203    Identifiable assets at    December 31, 2004 $        76,018,017 $        35,572,519     $      111,590,536    Corporate assets      23,609,630             Total assets at December 31, 2004       $      135,200,166  **For the Year Ended December    31, 2003**  Sales to unaffiliated    customers$        48,571,556 $        73,456,755   $                         ‐   $      122,028,311    Intersegment sales 11,007,009 -    (11,007,009)  ‐             Total net sales $        59,578,565 $        73,456,755   $       (11,007,009) $      122,028,311    Income (loss) from    operations $          5,854,070  $        (1,199,738)   $          4,654,332    Other income, net      716,113             Income before income taxes      $          5,370,445    Identifiable assets at    December 31, 2003$        70,212,426 $        37,798,323     $      108,010,749    Corporate assets      21,821,682             Total assets at December 31, 2003      $      129,832,431         24.THE MONARCH CEMENT COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSFOR    THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003                                                       
       Total sales by line ofbusiness before adjustments and eliminations includes both sales to unaffiliatedcustomers (as reported in the Company's consolidated statements of income,comprehensive income and stockholders' investment) and intersegment sales. Intersegment sales are accounted for by the same method as sales to unaffiliatedcustomers.

       Income from operations istotal net sales less operating expenses.  In computing income from operations,none of the following items have been added or deducted:  general corporateincome and expenses; interest expense; and income taxes.  Depreciation anddepletion for the Cement Business and Ready‐Mixed Concrete Business,respectively, was:  $5,297,531 and $5,373,466 in 2005, $5,044,610 and $5,419,696in 2004 and $5,293,678 and $5,626,390 in 2003.  Capital expenditures for theCement Business and Ready‐Mixed Concrete Business, respectively, were: $13,008,188 and $3,410,300 in 2005, $7,723,336 and $4,997,306 in 2004 and$1,594,784 and $4,823,550 in 2003.  Identifiable assets by line of business arethose assets that are used in the Company's operations in each industry.

       During 2005, 2004 and2003, there were no sales to any one customer in excess of 10% of consolidatednet sales.

(11)   **QUARTERLY FINANCIAL INFORMATION (UNAUDITED)**
 First Quarter Second Quarter Third Quarter Fourth Quarter
**2005**       Net sales $        24,541,081   $        37,272,061   $        41,855,661   $        37,651,125  Income (loss) from operations(118,440) 3,698,770   7,479,681   2,727,600  Net income132,461   2,278,023   4,928,809   2,319,076  Basic earnings per share$.03   $.57   $1.22   $.58          
**2004**       Net sales $        27,649,297   $        40,730,540   $        44,365,950   $        32,330,767  Income (loss) from operations215,376   1,674,988   3,235,482   (3,207,563)Net income (loss)268,307   1,160,623   2,265,149   (1,124,876)Basic earnings (loss) per share$.07   $.29   $.56   $(.28)
       The loss from operationsduring the fourth quarter of 2004 is the direct result of the constructionactivities in the Ready-Mixed Concrete Business.  These projects weresubstantially completed by the end of 2004 allowing us to more accuratelyproject the costs to complete.                                                                             

(12)   **OTHER COMPREHENSIVE INCOME**

       Accumulated othercomprehensive income included in the balance sheet at December 31 is as follows:

25.
 2004           Change        2005   Unrealized appreciation on available                             for sale securities$    4,500,000       $       360,000       $    4,860,000  Minimum pension liability adjustment (1,080,000)     (1,140,000)      (2,220,000)     $    3,420,000       $     (780,000)     $    2,640,000                                     2003        Change        2004   Unrealized appreciation on available                             for sale securities$    2,800,000       $    1,700,000       $    4,500,000  Minimum pension liability adjustment (840,000)     (240,000)     (1,080,000)     $    1,960,000       $    1,460,000       $    3,420,000   
(13)   **FUTURE CHANGE IN ACCOUNTING PRINCIPLES**

        The FinancialAccounting Standards Board (FASB) has issued the following new accountingpronouncements. 

       In December 2004, theFinancial Accounting Standards Board (FASB) issued FASB Statement No. 123(revised 2004), Share-Based Payment.  The Statement generally provides that thecost of Share-Based Payments be recognized over the service period based on thefair value of the option or other instruments at the date of grant.  The grantdate fair value should be estimated using an option-pricing model adjusted forthe unique characteristics of the options or other instruments granted.  TheCompany must use the Black-Scholes option pricing model for outstandingoptions.  With respect to future grants, the Company may elect to use the Black-Scholesoption pricing model or may elect to determine the grant date fair value usingan alternative method. This Statement will be effective for the Companybeginning July 1, 2005.  Since stock options are not a part of our employeebenefits, this pronouncement should have no affect on our financial statements.

       In November 2004, theFinancial Accounting Standards Board (FASB) issued FASB Statement No. 151,Inventory Costs, an amendment of ARB No. 43, Chapter 4.  This Statementclarifies that items such as idle facility expense, excessive spoilage, doublefreight, and re-handling costs should be classified as a current-period charge. The Statement also requires the allocation of fixed production overhead toinventory based on the normal capacity of the production facilities.  Thestatement is effective for inventory costs incurred during fiscal yearsbeginning after June 15, 2005.  The Company has not yet determined the impactthat this new pronouncement will have on the Company's consolidated financialstatements for 2006 and beyond.

       In December 2004, theFinancial Accounting Standards Board (FASB) issued FASB Statement No. 153,Exchanges of Nonmonetary Assets, an amendment of APB Opinion No. 29.  StatementNo. 29 generally provides that exchanges of nonmonetary assets should bemeasured based on the fair value of the assets exchanged subject to certainexceptions to the general rule.  The Statement amends Opinion No. 29 toeliminate the exception for exchanges involving similar productive assets with ageneral exception for exchanges that do not have commercial substance.  Anonmonetary exchange has commercial substance if the future cash flows of theentity are expected to change significantly as a result of the exchange.  ThisStatement is effective for nonmonetary asset exchanges in periods beginningafter June 15, 2005.  The Company has not yet determined the impact that thisnew pronouncement will have on the Company's consolidated financial statements.

26.

**CORPORATE INFORMATION**          **CORPORATE OFFICE****DIRECTORS**449 1200 StreetJack R. CallahanP.O. Box 1000          Retired President, The Monarch Cement CompanyHumboldt, KS 66748Ronald E. CallawayPhone: (620) 473-2222          Retired transport truck driver, Agricultural             Carriers, Inc.Fax: (620) 473-2447David L. Deffner           Director of Music, Davis Community Church Robert M. Kissick**AUDITORS**          Chairman, Hydraulic Power Systems, Inc.BKD, LLPGayle C. McMillenKansas City, Missouri          Music Coordinator, Trinity United Methodist    Church Richard N. Nixon           Partner in law firm of Stinson Morrison Hecker    LLP**ANNUAL MEETING**Byron J. RadcliffThe annual meeting of the stockholders of          RancherThe Monarch Cement Company is held theByron K. Radcliffsecond Wednesday in April of each year at the          Owner/Manager, Radcliff RanchCompany's corporate offices.Michael R. Wachter              Vice President, Civil Engineer and Director of                  Operations,Concrete Technology Corp.**TRANSFER AGENT AND REGISTRAR**Walter H. Wulf, Jr.The Monarch Cement Company          President and Chairman of the BoardP.O. Box 1000Walter H. Wulf, IIIHumboldt, KS 66748-0900          Area Sales Manager, General Motors Corporationshareholder.relations@monarchcement.com                         **STOCK TRADING INFORMATION**     Trading Symbol: MCEM**OFFICERS**Over-the-Counter MarketWalter H. Wulf, Jr.               President and Chairman of the Board     *Byron K. Radcliff**INVESTOR RELATIONS**          Vice Chairman of the Board, Secretary and    TreasurerInquiries may be directed to Debra P. Roe,    *Robert M. KissickChief Financial Officer and Assistant Secretary-          Vice PresidentTreasurer, at the corporate address shown above.Rick E. Rush               Vice President     Debra P. Roe**FORM 10-K**          Chief Financial Officer and Assistant             Secretary-Treasurer**The Company's Annual Report on Form 10-K, as**Lisa J. Fontaine**filed with the Securities and Exchange    Commission,**         Assistant Secretary**is available without charge upon written    request to**Roy L. Owens**Debra P. Roe at the above corporate office    address.**          Vice President - Operations     N. Joan Perez               Vice President - SalesThe Company's financial information is also    available *Not actively involved in the daily affairs of    the Company.from the SEC at their EDGAR internet address,     http://www.sec.gov                  |