Eagle Materials Inc. Reports Continued Strong Growth in Sales Volumes and Earnings in the Third Quarter

  Eagle Materials Inc. Reports Continued Strong Growth in Sales Volumes and
  Earnings in the Third Quarter

Business Wire

DALLAS -- February 4, 2014

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.

Gypsum Wallboard and Paperboard revenues for the third quarter totaled $123.9
million, a 24% increase from the same quarter a year ago. The revenue increase
reflects primarily higher wallboard average net sales prices and improved
gypsum wallboard and paperboard sales volumes.

The average gypsum wallboard net sales price for the third quarter was $143.40
per MSF, 19% greater than the same quarter a year ago. Gypsum Wallboard sales
volume for the quarter of 584 million square feet (MMSF) represents a 13%
increase from the same quarter last year. The average Paperboard net sales
price for this quarter was $504.08 per ton, 5% greater than the same quarter a
year ago. Paperboard sales volumes for the quarter were 66,000 tons, 2% 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 prior year’s third quarter results include Acquisition and Litigation
Expenses related primarily to the acquisition of the Acquired Assets and
litigation costs related to our lawsuit against the IRS. The total impact from
these non-routine items was $2.8 million (pre-tax), or $0.06 per diluted share
(after-tax).

Texas Lehigh Cement Company LP, one of our cement plant operations, is
conducted 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 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 in 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 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 10:00 a.m.
Eastern Time (9:00 a.m. Central Time) on Wednesday, February 5, 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.

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, 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. 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 and in its Quarterly Report on Form 10-Q
for the fiscal quarter ended September 30, 2013. These reports are 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.


(1)     Statement of Consolidated Earnings
(2)         Revenues and Earnings by Lines of Business (Quarter and Nine
            Months)
(3)         Sales Volume, Net Sales Prices and Intersegment and Cement
            Revenues
(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                       Nine Months Ended
                     December 31,                          December 31,
                     2013             2012               2013             2012
                                                                              
Revenues             $ 228,812          $ 164,743          $ 708,502          $ 483,444
                                                                              
Cost of Goods         178,964          133,482          552,571          396,797    
Sold
                                                                              
Gross Profit           49,848             31,261             155,931            86,647
                                                                              
Equity in
Earnings of            9,856              8,852              27,481             24,070
Unconsolidated
JV
Other
Operating              400                (223       )       1,300              (427       )
(Expense)
Income
Acquisition
and Litigation         -                  (2,485     )       -                  (8,859     )
Expense
Corporate
General and           (6,796     )      (6,268     )      (18,450    )      (16,942    )
Administrative
Expense
                                                                              
Earnings
before                 53,308             31,137             166,262            84,489
Interest and
Income Taxes
                                                                              
Interest              (4,475     )      (3,836     )      (14,225    )      (11,149    )
Expense, Net
                                                                              
Earnings
before Income          48,833             27,301             152,037            73,340
Taxes
                                                                              
Income Tax            (17,212    )      (9,321     )      (50,412    )      (23,429    )
Expense
                                                                              
Net Earnings         $ 31,621          $ 17,980          $ 101,625         $ 49,911     
                                                                              
EARNINGS PER
SHARE
Basic                $ 0.64            $ 0.37            $ 2.07            $ 1.09       
Diluted              $ 0.63            $ 0.37            $ 2.03            $ 1.07       
                                                                              
AVERAGE SHARES
OUTSTANDING
Basic                 49,294,010       48,331,185       49,091,476       45,920,452 
Diluted               50,162,962       49,249,547       49,948,178       46,574,724 



Eagle Materials Inc.
Attachment 2

Eagle Materials Inc.
Revenues and Segment Operating Earnings by Lines of Business
(dollars in thousands)
(unaudited)

                  Quarter Ended                 Nine Months Ended
                     December 31,                    December 31,
                     2013          2012            2013          2012
Revenues*
                                                                     
Gypsum
Wallboard and
Paperboard:
Gypsum               $ 104,158       $ 80,737        $ 299,099       $ 228,284
Wallboard
Gypsum                19,703        19,551        59,646        58,173  
Paperboard
                       123,861         100,288         358,745         286,457
                                                                     
Cement (Wholly         76,832          50,400          267,007         156,255
Owned)
                                                                     
Concrete and          28,119        14,055        82,750        40,732  
Aggregates
                                                                     
Total                $ 228,812      $ 164,743      $ 708,502      $ 483,444 

Segment
Operating
Earnings
                                                                     
Gypsum
Wallboard and
Paperboard:
Gypsum               $ 30,730        $ 16,870        $ 90,234        $ 47,356
Wallboard
Gypsum                6,661         7,963         19,277        20,934  
Paperboard
                       37,391          24,833          109,511         68,290
                                                                     
Cement:
Wholly Owned           16,155          7,763           49,970          19,853
Joint Venture         9,856         8,852         27,481        24,070  
                       26,011          16,615          77,451          43,923
                                                                     
Concrete and           (3,698  )       (1,335  )       (3,550  )       (1,496  )
Aggregates
                                                                     
Other
Operating             400           (223    )      1,300         (427    )
(Expense)
Income
                                                                     
Sub-total              60,104          39,890          184,712         110,290
Acquisition
and Litigation         -               (2,485  )       -               (8,859  )
Expense
Corporate
General and           (6,796  )      (6,268  )      (18,450 )      (16,942 )
Administrative
Expense
                                                                     
Earnings
Before               $ 53,308       $ 31,137       $ 166,262      $ 84,489  
Interest and
Income Taxes

                                                                     
* 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 Joint Venture Revenues
(unaudited)

                   Sales Volume
                      Quarter Ended               Nine Months Ended
                      December 31,                  December 31,
                      2013    2012   Change     2013    2012    Change
                                                                        
Gypsum
Wallboard             584       519      +13%       1,670     1,476     +13%
(MMSF’s)
                                                                        
Cement (M
Tons):
Wholly Owned          876       592      +48%       3,037     1,852     +64%
Joint Venture         239       226      +6%        753       678       +11%
                      1,115     818      +36%       3,790     2,530     +50%
Paperboard (M
Tons):
Internal              27        23       +17%       79        66        +20%
External              39        42       -7%        118       121       -2%
                      66        65       +2%        197       187       +5%
                                                                        
Concrete (M           231       143      +62%       723       421       +72%
Cubic Yards)
                                                                        
Aggregates (M         748       639      +17%       2,663     2,101     +27%
Tons)



              Average Net Sales Price*
                 Quarter Ended                      Nine Months Ended
                 December 31,                         December 31,
                 2013       2012       Change     2013       2012       Change
                                                                                
Gypsum
Wallboard        $ 143.40     $ 120.55     +19  %     $ 144.54     $ 119.60     +21  %
(MSF)
Cement           $ 87.01      $ 82.68      +5   %     $ 86.10      $ 82.17      +5   %
(Ton)
Paperboard       $ 504.08     $ 480.51     +5   %     $ 504.64     $ 498.16     +1   %
(Ton)
Concrete
(Cubic           $ 84.88      $ 71.55      +19  %     $ 82.02      $ 67.94      +21  %
Yard)
Aggregates       $ 11.44      $ 6.13       +87  %     $ 8.86       $ 6.04       +47  %
(Ton)

*Net of freight and delivery costs billed to customers.



                         Intersegment and Cement Revenues
                            Quarter Ended            Nine Months Ended
                            December 31,               December 31,
                            2013        2012         2013        2012
Intersegment
Revenues:
Cement                      $ 2,556       $ 535        $ 7,503       $ 1,614
Paperboard                    13,993        11,780       40,855        35,217
Concrete and                 217          146         889          603
Aggregates
                            $ 16,766      $ 12,461     $ 49,247      $ 37,434
                                                                     
Cement Revenues:
Wholly Owned                $ 76,832      $ 50,400     $ 267,007     $ 156,255
Joint Venture                26,190       24,000      81,972       71,623
                            $ 103,022     $ 74,400     $ 348,979     $ 227,878



Eagle Materials Inc.
Attachment 4

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

                                December 31,                  March 31,
                                   2013          2012            2013*
ASSETS
Current Assets –
Cash and Cash Equivalents          $ 7,424         $ 9,247         $ 3,897
Accounts and Notes                   96,357          86,588          87,543
Receivable, net
Inventories                          173,871         134,473         156,380
Federal Income Tax                 -                 -             2,443
Receivable
Prepaid and Other Assets            5,074          13,015         11,008
Total Current Assets                282,726        243,323        261,271
Property, Plant and                  1,647,138       1,581,468       1,599,992
Equipment –
Less: Accumulated                   (662,734)      (598,396)      (614,268)
Depreciation
Property, Plant and                  984,404         983,072         985,724
Equipment, net
Investments in Joint Venture         41,178          41,760          42,946
Notes Receivable                     3,208           3,273           3,893
Goodwill and Intangibles             161,117         163,802         162,400
Other Assets                        14,631         21,590         19,999
                                   $ 1,487,264     $ 1,456,820     $ 1,476,233
                                   
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Current Liabilities –
Accounts Payable                   $ 47,586        $ 47,460        $ 58,880
Accrued Liabilities                  39,622        57,460            41,349
Federal Income Tax Payable           6,835         5,532           -
Current Portion of Long-term        9,500         -               -
Debt
Total Current Liabilities           103,543        110,452        100,229
Long-term Liabilities                52,317          41,104        51,547
Bank Credit Facility                 200,000         291,000       297,000
Senior Notes                         182,759         192,259       192,259
Deferred Income Taxes                143,217         134,458       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 49,964,881;
49,351,952 and
49,503,496 Shares,                   500             494             495
respectively.
                                   
Capital in Excess of Par             246,161         216,440         224,053
Value
Accumulated Other                    (6,577)         (5,168)         (7,042)
Comprehensive Losses
Retained Earnings                   565,344        475,781        478,664
Total Stockholders’ Equity          805,428        687,547        696,170
                                   $ 1,487,264     $ 1,456,820     $ 1,476,233

*From audited financial statements.


Contact:

Eagle Materials Inc.
Steven R. Rowley, 214-432-2000
President and Chief Executive Officer
or
D. Craig Kesler,  214-432-2000
Executive Vice President and Chief Financial Officer
or
Robert S. Stewart, 214-432-2000
Executive Vice President, Strategy, Corporate Development and Communications
 
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