Eagle Materials Inc. Reports Strong Revenue and Earnings Improvement in the First Quarter

  Eagle Materials Inc. Reports Strong Revenue and Earnings Improvement in the
  First Quarter

Business Wire

DALLAS -- August 7, 2013

Eagle Materials Inc. (NYSE: EXP) today reported financial results for the
first quarter of fiscal 2014 ended June 30, 2013. Notable items for the
quarter include (all comparisons, unless noted, are with the prior-year’s
first quarter):

  *Revenues of $227.0 million, up 47%
  *Record quarterly cement sales volumes of 1.2 million tons
  *Earnings before interest and income taxes of $49.5 million, up 109%
  *Net earnings per diluted share of $0.60, up 94%
  *Began operations at our new frac sand plant in Corpus Christi, Texas

First quarter earnings before interest and income taxes increased 109%,
reflecting improved sales volumes and net sales prices across all heritage
businesses as compared to the prior year’s first quarter and the acquisition
of assets, consisting primarily of two cement plants in Oklahoma and Missouri
and related aggregates and ready-mix businesses in Kansas City (the Acquired
Assets), on November 30, 2012.

Cement, Concrete and Aggregates

Operating earnings from Cement for the first quarter were $19.0 million, a 93%
increase from the same quarter a year ago. The earnings increase was driven by
increased sales volumes and average net cement sales prices partially offset
by a slight increase in operating costs.

Cement revenues for the first quarter, including joint venture and
intersegment revenues, totaled $117.7 million, 55% greater than the same
quarter last year. The revenue improvement reflects a 46% increase in our
first quarter Cement sales volume, including sales volume attributable to the
Acquired Assets. The average net sales price for this quarter was $86.15 per
ton, 6% greater than the same quarter last year.

Concrete and Aggregates reported operating earnings of $0.2 million for the
first quarter, comparable with the same quarter a year ago.

Gypsum Wallboard and Paperboard

Gypsum Wallboard and Paperboard reported first quarter operating earnings of
$35.3 million, up 83% from the same quarter last year. Improved Gypsum
Wallboard net sales prices were the primary driver of the quarterly earnings
increase. Additional contribution came from improved sales volumes in both
wallboard and paperboard.

Gypsum Wallboard and Paperboard revenues for the first quarter totaled $114.9
million, a 28% 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 $146.30 per MSF, 23% greater than the same quarter a
year ago. Gypsum Wallboard sales volume for the quarter of 532 million square
feet (MMSF) represents a 16% increase from the same quarter last year. The
average Paperboard net sales price this quarter was $502.42 per ton,
comparable with the same quarter a year ago. Paperboard sales volumes for the
quarter were 64,000 tons, 7% higher than the same quarter a year ago.

Details of Financial Results

For information regarding the results of operations for the Acquired Assets
for certain periods prior to November 30, 2012, including pro forma financial
information that combines the results of operations for Eagle and the Acquired
Assets, please see our Form 8-K/A filed on April 26, 2013. The increase in our
average shares outstanding at June 30, 2013 is primarily due to the impact of
our follow-on equity offering related to the Acquired Assets, which was
completed on October 3, 2012.

We conduct one of our cement plant operations through a 50/50 joint venture,
Texas Lehigh Cement Company LP (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 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 Thursday, August 8, 2013. 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 Section27A of the Securities Act of 1933,
Section21E 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 and oil; changes in the cost and availability of
transportation; unexpected operational difficulties; 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 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. With
respect to our acquisition of the Acquired Assets as described in this press
release, factors, risks and uncertainties that may cause actual events and
developments to vary materially from those anticipated in forward-looking
statements include, but are not limited to, the risk that we may not be able
to integrate the Acquired Assets in an efficient and cost-effective manner
with our other assets and operations, the possible inability to realize
synergies or other expected benefits of the transaction, the possibility that
we may incur significant costs relating to transition or integration
activities or repair and maintenance of the Acquired Assets, the discovery of
undisclosed liabilities associated with the business, the need to repay the
indebtedness incurred to fund the acquisition and the fact that increased debt
may limit our ability to respond to any changes in general economic and
business conditions that occur after the acquisition. These and other factors
are described in the Company’s Annual Report on Form 10-K for the fiscal year
ended March31, 2013. 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.

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
Attachment 4     Consolidated Balance Sheets

Eagle Materials Inc.
Attachment 1

Eagle Materials Inc.
Statement of Consolidated Earnings
(dollars in thousands, except per share data)
                                               Quarter Ended
                                               June 30,
                                               2013             2012
Revenues                                       $ 227,044        $ 154,042
Cost of Goods Sold                              180,440        131,145    
Gross Profit                                     46,604           22,897
Equity in Earnings of Unconsolidated Joint       7,878            6,468
Corporate General and Administrative             (5,594     )     (5,416     )
Other, net                                      583            (270       )
Earnings before Interest and Income Taxes        49,471           23,679
Interest Expense, Net                           (4,955     )    (3,765     )
Earnings before Income Taxes                     44,516           19,914
Income Tax Expense                              (14,415    )    (5,936     )
Net Earnings                                   $ 30,101        $ 13,978     

Basic                                          $ 0.61          $ 0.31       
Diluted                                        $ 0.60          $ 0.31       
Basic                                           48,955,724     44,670,359 
Diluted                                         49,810,170     45,078,734 

Eagle Materials Inc.
Attachment 2
Eagle Materials Inc.
Revenues and Segment Operating Earnings by Lines of Business
(dollars in thousands)
                                               Quarter Ended
                                               June 30,
                                               2013          2012
Gypsum Wallboard and Paperboard:
Gypsum Wallboard                               $ 95,981      $ 70,220
Gypsum Paperboard                              18,951        19,407  
                                               114,932         89,627
Cement (Wholly Owned)                          87,304          51,750
Concrete and Aggregates                        24,808        12,665  
Total                                          $ 227,044    $ 154,042 

Segment Operating Earnings
Gypsum Wallboard and Paperboard:
Gypsum Wallboard                               $ 29,636      $ 14,022
Gypsum Paperboard                              5,679         5,276   
                                               35,315          19,298
Wholly Owned                                   11,132          3,398
Joint Venture                                  7,878         6,468   
                                               19,010          9,866
Concrete and Aggregates                        157             201
Other, net                                     583           (270    )
Sub-total                                      $ 55,065      $ 29,095
Corporate General and Administrative Expense   (5,594    )    (5,416  )
Earnings before Interest and Income Taxes      $ 49,471     $ 23,679  


* 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
                                  Sales Volume
                                  Quarter Ended
                                  June 30,
                                  2013        2012       Change
Gypsum Wallboard (MMSF’s)         532         457        +16    %
Paperboard (M Tons):
Internal                          26          20         +30    %
External                          38          40         -5     %
                                  64          60         +7     %
Cement (M Tons):
Wholly Owned                      979         621        +58    %
Joint Venture                     262         227        +15    %
                                  1,241       848        +46    %
Concrete (M Cubic Yards)          227         137        +66    %
Aggregates (M Tons)               909         652        +39    %

                         Average Net Sales Price *
                         Quarter Ended
                         June 30,
                         2013       2012       Change
Gypsum Wallboard (MSF)   $ 146.30   $ 118.70   +23  %
Paperboard (Ton)         $ 502.42   $ 502.89   0    %
Cement (Ton)             $ 86.15    $ 81.06    +6   %
Concrete (Cubic Yard)    $ 78.97    $ 65.29    +21  %
Aggregates (Ton)         $ 7.84     $ 5.98     +31  %

*Net of freight and delivery costs billed to customers.

                          Intersegment and Cement
                          ($ in thousands)
                          Quarter Ended
                          June 30,
                          2013           2012
Intersegment Revenues:
Cement                    $  1,992       $ 567
Paperboard                   13,212        10,922
Concrete and Aggregates     398          212
                          $  15,602      $ 11,701
Cement Revenues:
Wholly Owned              $  87,304      $ 51,750
Joint Venture               28,404       23,707
                          $  115,708     $ 75,457


Eagle Materials Inc.
Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
                                 June 30,                        March 31,
                                 2013            2012            2013*
Current Assets –
Cash and Cash Equivalents        $ 6,744         $ 3,707         $ 3,897
Accounts and Notes Receivable,     117,668         73,304          87,543
Inventories                        164,197         114,441         156,380
Federal Income Tax Receivable      -               -               2,443
Prepaid and Other Assets          9,606         3,366          11,008    
Total Current Assets              298,215       194,818        261,271   
Property, Plant and Equipment      1,620,208       1,145,195       1,599,992
Less: Accumulated Depreciation    (630,317  )    (572,351  )    (614,268  )
Property, Plant and Equipment,     989,891         572,844         985,724
Investments in Joint Venture       41,074          39,407          42,946
Notes Receivable                   3,843           3,360           3,893
Goodwill and Intangibles           161,916         150,743         162,400
Other Assets                      20,278        19,224        19,999    
                                 $ 1,515,217    $ 980,396      $ 1,476,233 
Current Liabilities –
Accounts Payable                 $ 54,983        $ 34,517        $ 58,880
Accrued Liabilities                36,320          30,275          41,349
Federal Income Tax Payable         10,904          8,192           -
Current Portion of Long-term      -             4,677         -         
Total Current Liabilities         102,207       77,661        100,229   
Long-term Liabilities              52,079          39,774          51,547
Bank Credit Facility               305,000         57,000          297,000
Senior Notes                       192,259         192,259         192,259
Deferred Income Taxes              138,220         129,760         139,028
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
49,552,819; 45,362,170 and
49,503,496 Shares,                 496             454             495
Capital in Excess of Par Value     228,034         39,564          224,053
Accumulated Other                  (6,887    )     (5,400    )     (7,042    )
Comprehensive Losses
Retained Earnings                 503,809       449,324       478,664   
Total Stockholders’ Equity        725,452       483,942       696,170   
                                 $ 1,515,217    $ 980,396      $ 1,476,233 

*From audited financial statements.


Eagle Materials Inc.
Steven R. Rowley, 214-432-2000
President & CEO
D. Craig Kesler, 214-432-2000
Executive Vice President & CFO
Robert S. Stewart, 214-432-2000
Executive Vice President
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