Eagle Materials Inc. (NYSE:EXP) today reported financial results
for the first quarter of fiscal 2015 ended June 30, 2014. Notable
items for the quarter include (all comparisons, unless otherwise
noted, are with the prior year’s first quarter):
- Record first quarter revenues of $266.3
million, up 17%
- Record first quarter cement sales
volumes of 1.3 million tons
- Net earnings per diluted share of
$0.75, up 25%
- Receipt of the final permit enabling
operation of our frac-sand mine in northern Illinois
First quarter earnings before interest and income taxes
increased 21% to $59.8 million, as first quarter sales volumes
improved across nearly all businesses. In addition, sales prices
improved in all businesses. These results reflect improving,
early-cycle construction fundamentals in the US.
We also received the final permit necessary for us to begin
operating our frac-sand mine in Utica, Illinois during the first
quarter. The first shipments of raw sand from our mine to our 1.5
million ton processing facility at Corpus Christi, Texas are
expected to occur no later than our fiscal third quarter.
Cement, Concrete and Aggregates
Operating earnings from cement for the first quarter were $20.5
million, an 8% increase from the same quarter a year ago. The
earnings increase was driven by record first quarter cement sales
volumes and a 5% increase in average net cement sales prices,
partially offset by $5.2 million of costs associated with a shift
to the first quarter of the annual maintenance outages at our
Kansas City and Tulsa cement plants, which had last occurred in the
fourth quarter of fiscal 2013. While underlying demand for our
cement continues to recover, extraordinary rail congestion
associated with the harsh winter weather adversely impacted the
timing of cement shipments during the first quarter.
Cement revenues for the first quarter, including joint venture
and intersegment revenues, totaled $127.9 million, 9% greater than
the same quarter last year. Cement sales volumes for the quarter
were 1.3 million tons, 4% higher than the same quarter a year ago.
The average net sales price for this quarter was $90.66 per ton, 5%
higher than the same quarter last year.
Concrete and Aggregates reported operating earnings of $1.4
million for the first quarter, a 34% improvement from the same
quarter a year ago, reflecting improved concrete and aggregates
pricing along with improved concrete sales volumes.
Gypsum Wallboard and Paperboard
Gypsum Wallboard and Paperboard reported first quarter operating
earnings of $45.0 million, up 27% from the same quarter last year.
Improved Gypsum Wallboard net sales prices and increased Gypsum
Wallboard and Paperboard sales volumes were the primary drivers of
the quarterly earnings increase.
Gypsum Wallboard and Paperboard revenues for the first quarter
totaled $136.1 million, an 18% increase from the same quarter a
year ago. The revenue increase reflects higher average Gypsum
Wallboard net sales prices and higher Gypsum Wallboard and
Paperboard sales volumes. The average Gypsum Wallboard net sales
price this quarter was $161.74 per MSF, 11% greater than the same
quarter a year ago. Gypsum Wallboard sales volume for the quarter
of 569 million square feet (MMSF) represents a 7% increase from the
same quarter last year. The average Paperboard net sales price this
quarter was $509.62 per ton, 1% higher than the same quarter a year
ago. Paperboard sales volumes for the quarter were 72,000 tons, 13%
higher than the same quarter a year ago.
Oil and Gas Proppants
Oil and Gas Proppants reported first quarter revenues of $11.2
million and an operating loss of $0.6 million. During this year’s
first quarter, we continued to process and sell purchased sand in
Corpus Christi awaiting the opening of our mine in Illinois. With
the receipt of the final permit necessary to start-up our mine, we
expect to be able to sell our owned sand through our Corpus Christi
facility no later than our fiscal third quarter, primarily into
Eagle Ford shale-drilling applications.
Details of Financial Results
Beginning in our fiscal 2015, we have begun reporting our
frac-sand business as a separately reportable segment -- Oil and
Gas Proppants. The results of this business were previously
included in our Concrete and Aggregates segment during the
initialization phase at start-up and have been reclassified to
conform to the current year presentation.
We conduct one of our cement plant operations, Texas Lehigh
Cement Company LP, through a 50/50 joint venture (the “Joint
Venture”). We utilize the equity method of accounting for our 50%
interest in the Joint Venture. For segment reporting purposes only,
we proportionately consolidate our 50% share of the Joint Venture’s
revenues and operating earnings, which is consistent with the way
management organizes the segments within the Company for making
operating decisions and assessing performance.
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, and Oil
and Gas Proppants from 40 facilities across the US. Eagle 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 10:00 a.m. Eastern Time (9:00 a.m. Central Time)
on Wednesday, July 23, 2014. 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; the fact that our products are commodities and that
prices for our products are subject to material fluctuation due to
market conditions and other factors beyond our control;
availability of raw materials; changes in energy costs including,
without limitation, natural gas, coal and oil; changes in the cost
and availability of transportation; unexpected operational
difficulties, including unexpected maintenance costs, equipment
downtime and interruption of production; inability to timely
execute announced capacity expansions; difficulties and delays in
the development of new business lines; 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, coal 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, 2014. 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. RowleyPresident and Chief Executive Officer
D. Craig KeslerExecutive Vice President and Chief
Financial Officer
Robert S. StewartExecutive Vice President, Strategy,
Corporate Development and Communications
Attachment 1 Statement of Consolidated Earnings
Attachment 2 Revenues and Earnings by Lines of Business (Quarter)
Attachment 3 Sales Volume, Net Sales Prices and Intersegment and
Cement Revenues Attachment 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 EndedJune 30,
2014 2013 Revenues $ 266,251 $ 227,044
Cost of Goods Sold 209,850 180,440
Gross Profit 56,401 46,604 Equity in Earnings of
Unconsolidated Joint Venture 9,800 7,878 Corporate General
and Administrative Expenses (7,042 ) (5,594 ) Other, net
679 583 Earnings before Interest
and Income Taxes 59,838 49,471 Interest Expense, net
(4,052
)
(4,955
)
Earnings before Income Taxes 55,786 44,516 Income Tax
Expense (18,076 ) (14,415 ) Net Earnings $
37,710 $ 30,101
NET EARNINGS PER SHARE Basic $ 0.76 $ 0.61
Diluted $ 0.75 $ 0.60
AVERAGE SHARES
OUTSTANDING Basic 49,501,847 48,955,724
Diluted 50,287,452 49,810,170
Eagle Materials Inc.Attachment 2
Eagle Materials Inc.
Revenues and Segment Operating Earnings
by Lines of Business
(dollars in thousands)
(unaudited)
Quarter EndedJune 30,
2014 2013 Revenues* Gypsum Wallboard
and Paperboard: Gypsum Wallboard $ 112,677 $ 95,981 Gypsum
Paperboard 23,463 18,951 136,140 114,932
Cement (Wholly Owned) 92,998 87,304 Oil and Gas
Proppants 11,180 942 Concrete and Aggregates 25,933
23,866 Total $ 266,251 $ 227,044
Segment Operating Earnings Gypsum Wallboard and
Paperboard: Gypsum Wallboard $ 37,428 $ 29,636 Gypsum Paperboard
7,547 5,679 44,975 35,315 Cement:
Wholly Owned 10,707 11,132 Joint Venture 9,800 7,878
20,507 19,010 Oil and Gas Proppants (637 ) (855 )
Concrete and Aggregates 1,356 1,012 Other, net 679
583 Sub-total $ 66,880 $ 55,065
Corporate General and Administrative
Expense
(7,042 ) (5,594 )
Earnings before Interest and Income
Taxes
$ 59,838 $ 49,471 * 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 EndedJune 30,
2014 2013 Change Gypsum
Wallboard (MMSF’s) 569 532 +7% Paperboard (M Tons): Internal
27 26 +4% External 45 38 +18% 72 64 +13% Cement (M Tons):
Wholly Owned 1,007 979 +3% Joint Venture 284 262 +8% 1,291 1,241
+4% Concrete (M Cubic Yards) 235 227 +4% Aggregates *
(M Tons) 818 902 -9%
* Aggregates sales volumes excludes sales
of frac sand
Average Net Sales Price *
Quarter EndedJune 30,
2014 2013 Change
Gypsum Wallboard (MSF) $ 161.74 $ 146.30 +11 % Paperboard (Ton) $
509.62 $ 502.42 +1 % Cement (Ton) $ 90.66 $ 86.15 +5 % Concrete
(Cubic Yard) $ 84.50 $ 78.97 +7 % Aggregates ** (Ton) $ 7.40 $ 6.88
+8 % * Net of freight and delivery costs
billed to customers. ** Aggregates net sales price is presented for
traditional construction aggregates only, excluding sales of frac
sand
Intersegment and Cement Revenues
($ in thousands)
Quarter EndedJune 30,
2014
2013 Intersegment Revenues: Cement $ 2,360 $ 1,992
Paperboard 14,016 13,212 Concrete and Aggregates 229
398 $ 16,605 $ 15,602 Cement Revenues: Wholly Owned $ 92,998
$ 87,304 Joint Venture 32,578 28,404 $ 125,576 $
115,708
Eagle Materials Inc.Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
June 30,
March 31,
2014
2013
2014*
ASSETS
Current Assets – Cash and Cash Equivalents
$
6,541
$
6,744
$
6,482
Accounts and Notes Receivable, net 134,108 117,834 102,917
Inventories 182,470 164,197 187,096 Federal Income Tax Receivable
-
-
-
Prepaid and Other Assets 8,290 9,606
10,465 Total Current Assets 331,409
298,381 306,960 Property, Plant and
Equipment – 1,682,543 1,620,208 1,660,975 Less: Accumulated
Depreciation (691,946 ) (630,317 ) (676,924 )
Property, Plant and Equipment, net 990,597 989,891 984,051
Investments in Joint Venture 44,434 41,074 43,008 Notes Receivable
3,197 3,843 3,063 Goodwill and Intangibles 160,262 161,916 160,690
Other Assets
14,468
20,278 13,757
$
1,544,367
$
1,515,217
$
1,511,529
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Current Liabilities – Accounts Payable
$
57,803
$
54,983
$
57,098
Accrued Liabilities 34,894 36,320 42,222 Federal Income Tax Payable
19,956 10,904
-
Current Portion of Long-term Debt 9,500
-
9,500 Total Current Liabilities 122,153
102,207 108,820 Long-term
Liabilities 53,177 52,079 53,678 Bank Credit Facility 176,000
305,000 189,000 Senior Notes 182,759 192,259 182,759 Deferred
Income Taxes 142,094 138,220 145,773 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 50,153,937; 49,552,819 and 50,053,738
Shares, respectively. 502 496 501 Capital in Excess of Par
Value 257,407 228,034 253,524 Accumulated Other Comprehensive
Losses (5,377 ) (6,887 ) (5,483 ) Retained Earnings 615,652
503,809 582,957 Total
Stockholders’ Equity 868,184 725,452
831,499
$
1,544,367
$
1,515,217
$
1,511,529
*From audited financial statements.
Eagle Materials Inc.Steven R. Rowley,
214-432-2000President & CEOorD. Craig Kesler,
214-432-2000Executive Vice President & CFOorRobert S.
Stewart, 214-432-2000Executive Vice President
Eagle Materials (NYSE:EXP)
Historical Stock Chart
From Apr 2024 to May 2024
Eagle Materials (NYSE:EXP)
Historical Stock Chart
From May 2023 to May 2024