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Eagle Materials Inc. (NYSE:EXP) today reported financial results for the third quarter of fiscal 2014 which ended December 31, 2013. Notable items for the quarter in relation to the prior-year’s third quarter include:
Record third quarter Revenues of $228.8 million, up 39%
Earnings before interest and income taxes of $53.3 million, up 71%
Earnings per diluted share of $0.63, up 70%
Reduced outstanding debt by 20%
Sales volumes improved across all business lines, with cement volumes setting a third quarter record of over 1.1 million tons sold. Net sales prices also strengthened across all businesses, with wallboard sales prices increasing 19% over the prior year’s third quarter. Quarterly revenue and earnings improvement also reflects the acquisition of assets, primarily two cement plants in Missouri and Oklahoma (the Acquired Assets) on November 30, 2012.
Cement, Concrete and Aggregates
Operating earnings from Cement for the third quarter were $26.0 million, a 57% increase from the same quarter a year ago. The earnings increase resulted from increased sales volumes and average net cement sales prices.
Cement revenues for the quarter, including joint venture and intersegment revenues, totaled $105.6 million, 41% greater than the same quarter last year. The revenue improvement reflects a 36% increase in our third quarter Cement sales volume, including sales volumes attributable to the Acquired Assets. Our average net cement sales price this quarter was $87.01 per ton, 5% higher than the same quarter last year.
Concrete and Aggregates reported a $3.7 million operating loss for the third quarter. The quarterly loss was impacted by start-up costs associated with our new frac sand business of approximately $2.1 million and the settlement of a litigation matter in California for $0.5 million.
Gypsum Wallboard and Paperboard
Gypsum Wallboard and Paperboard’s third quarter operating earnings of $37.4 million were up 51% compared to the same quarter last year. Improved Gypsum Wallboard net sales prices and sales volumes were the primary drivers of the quarterly earnings increase.