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Eagle Materials Inc. Reports Strong Volume And Earnings Improvement In The First Quarter

In addition, for segment reporting purposes, we report intersegment revenues as a part of a segment’s total revenues. Intersegment sales are eliminated on the income statement. Refer to Attachment 3 for a reconciliation of the amounts referred to above.

About Eagle Materials Inc.

Eagle Materials Inc. manufactures and distributes Cement, Gypsum Wallboard, Recycled Paperboard, Concrete and Aggregates from 25 facilities across the US. The Company is headquartered in Dallas, Texas.

Eagle’s senior management will conduct a conference call to discuss the financial results, forward-looking information and other matters at 2:00 p.m. Eastern Daylight Time (1:00 p.m. Central Daylight Time) on Thursday, August 2, 2012. The conference call will be webcast simultaneously on the Eagle Web site http://www.eaglematerials.com . A replay of the webcast and the presentation will be archived on that site for one year. For more information, contact Eagle at (214) 432-2000.

Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimates or expectations. These statements are not historical facts or guarantees of future performance but instead represent only the Company's belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors many of which are outside the Company's control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. The principal risks and uncertainties that may affect the Company’s actual performance include the following: the cyclical and seasonal nature of the Company’s business; public infrastructure expenditures; adverse weather conditions; availability of raw materials; changes in energy costs including, without limitation, natural gas and oil; changes in the cost and availability of transportation; unexpected operational difficulties; inability to timely execute announced capacity expansions; governmental regulation and changes in governmental and public policy (including, without limitation, climate change regulation); possible outcomes of pending or future litigation or arbitration proceedings; changes in economic conditions specific to any one or more of the Company’s markets; competition; announced increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction; general economic conditions; and interest rates. For example, increases in interest rates, decreases in demand for construction materials or increases in the cost of energy (including, without limitation, natural gas and oil) could affect the revenues and operating earnings of our operations. In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company's result of operations. These and other factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2012. This report is filed with the Securities and Exchange Commission. All forward-looking statements made herein are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. The Company undertakes no duty to update any forward-looking statement to reflect future events or changes in the Company's expectations.

Steven R. Rowley President and Chief Executive Officer

D. Craig Kesler Executive Vice President and Chief Financial Officer

Robert S. Stewart Executive Vice President, Strategy, Corporate Development and Communications

Attachment 1 Statement of Consolidated EarningsAttachment 2 Revenues and Earnings by Lines of Business (Quarter)Attachment 3 Sales Volume, Net Sales Prices and Intersegment and Cement RevenuesAttachment 4 Consolidated Balance Sheets
 
 

Eagle Materials Inc.
Attachment 1
 
Eagle Materials Inc.

Statement of Consolidated Earnings
(dollars in thousands, except per share data)
(unaudited)
   
 
Quarter Ended
June 30,
2012 2011
 
Revenues $ 154,042 $ 119,807
 
Cost of Goods Sold   131,145     115,434  
 
Gross Profit 22,897 4,373
 
Equity in Earnings of Unconsolidated Joint Venture 6,468 5,448
 
Corporate General and Administrative Expenses (5,416 ) (4,118 )
 
Other Operating Expense, net   (270 )   (79 )
 
Earnings before Interest and Income Taxes 23,679 5,624
 
Interest Expense, Net  

(3,765

)
  (4,585 )
 
Earnings before Income Taxes 19,914 1,039
 
Income Tax Expense   (5,936 )   (232 )
 
Net Earnings $ 13,978   $ 807  
 
 

 
EARNINGS PER SHARE
Basic $ 0.31   $ 0.02  
Diluted $ 0.31   $ 0.02  
 
AVERAGE SHARES OUTSTANDING
Basic   44,670,359     44,180,039  
Diluted   45,078,734     44,709,262  
 
 
 

Eagle Materials Inc.
Attachment 2
 
Eagle Materials Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
   
Quarter Ended
June 30,
2012 2011
Revenues*
 
Gypsum Wallboard and Paperboard:
Gypsum Wallboard

$

70,220
$ 51,342
Gypsum Paperboard   19,407     18,994  
89,627 70,336
 
Cement (Wholly Owned) 51,750 37,711
 
Concrete and Aggregates   12,665     11,760  
 
Total

$

154,042
  $ 119,807  

 
Segment Operating Earnings
 
Gypsum Wallboard and Paperboard:
Gypsum Wallboard $ 14,022 $ (1,762 )
Gypsum Paperboard   5,276     3,030  
19,298 1,268
 
Cement:
Wholly Owned 3,398 3,340
Joint Venture   6,468     5,448  
9,866 8,788
 
Concrete and Aggregates 201 (235 )
 
Other Operating Expense, net   (270 )   (79 )
 
Total Segment Operating Earnings

$
29,095  

$
9,742  

 

* Net of Intersegment and Joint Venture Revenues listed on Attachment 3.
 
 
 

Eagle Materials Inc.
Attachment 3
 
Eagle Materials Inc.
Sales Volume, Net Sales Prices and Intersegment and Cement Revenues
(unaudited)
     
Sales Volume
Quarter Ended
June 30,
2012 2011 Change
 
Gypsum Wallboard (MMSF’s) 457 412 +11 %
 
Paperboard (M Tons):
Internal 20 17 +18 %
External 40 40 0 %
60 57 +5 %
 
Cement (M Tons):
Wholly Owned 621 449 +38 %
Joint Venture 227 225 +1 %
848 674 +26 %
 
Concrete (M Cubic Yards) 137 136 +1 %
 
Aggregates (M Tons) 652 612 +7 %
 
 
  Average Net Sales Price *
Quarter Ended

June 30,
2012   2011   Change
 
Gypsum Wallboard (MSF) $ 118.70 $ 90.03 +32 %
Paperboard (Ton) $ 502.89 $ 505.61 -1 %
Cement (Ton) $ 81.06 $ 81.25 0 %
Concrete (Cubic Yard) $ 65.29 $ 61.04 +7 %
Aggregates (Ton) $ 5.98 $ 5.88 +2 %
 

*Net of freight and delivery costs billed to customers.
 
 
Intersegment and Cement
Revenues

($ in thousands)
Quarter Ended
June 30,
2012   2011
Intersegment Revenues:
Cement $ 567 $ 1,039
Paperboard 10,922 9,682
Concrete and Aggregates   212   140
$ 11,701 $ 10,861
 
Cement Revenues:
Wholly Owned $ 51,750 $ 37,711
Joint Venture   23,707   21,394
$ 75,457 $ 59,105
 
 
 

Eagle Materials Inc.
Attachment 4
 
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
   

June 30,

March 31,

2012
 

2011

2012*

ASSETS
Current Assets –
Cash and Cash Equivalents $ 3,707 $ 3,478 $ 6,481
Accounts and Notes Receivable, net 73,304 54,192 56,197
Inventories 114,441 114,124 123,606
Federal Income Tax Receivable - 5,374 1,133
Prepaid and Other Assets   3,366     3,836     4,424  
Total Current Assets   194,818     181,004     191,841  
Property, Plant and Equipment – 1,145,195 1,119,346 1,140,744
Less: Accumulated Depreciation   (572,351 )   (524,143 )   (560,236 )
Property, Plant and Equipment, net 572,844 595,203 580,508
Investments in Joint Venture 39,407 34,109 38,939
Notes Receivable 3,360 5,139 3,436
Goodwill and Intangibles 150,743 151,380

150,902
Other Assets   19,224     18,376     19,519  
$ 980,396   $ 985,211   $ 985,145  
 

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities –
Accounts Payable $ 34,517 $ 31,472 $ 38,747
Accrued Liabilities 30,275 31,808 33,619
Federal Income Tax Payable 8,192 - -
Current Portion of Long-term Debt   4,677     -     4,677  
Total Current Liabilities   77,661     63,280     77,043  
Long-term Liabilities 39,774 38,735 39,467
Bank Credit Facility 57,000 11,000 70,000
Senior Notes 192,259 285,000 192,259
Deferred Income Taxes 129,760 128,739 133,865
Stockholders’ Equity –
Preferred Stock, Par Value $0.01; Authorized 5,000,000
Shares; None Issued - - -
Common Stock, Par Value $0.01; Authorized 100,000,000
Shares; Issued and Outstanding 45,362,170; 44,906,232 and
45,269,493 Shares, respectively. 454 449 453
Capital in Excess of Par Value 39,564 25,439 37,692
Accumulated Other Comprehensive Losses (5,400 ) (2,893 ) (5,516 )
Retained Earnings   449,324     435,462     439,882  
Total Stockholders’ Equity   483,942     458,457     472,511  
$ 980,396   $ 985,211   $ 985,145  

 

*From audited financial statements.

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