Eagle Materials Reports Record First Quarter Revenues and Strong Earnings Improvement

  Eagle Materials Reports Record First Quarter Revenues and Strong Earnings

Business Wire

DALLAS -- July 22, 2014

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

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

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 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. These and other factors are described in the Company’s Annual
Report on Form 10-K for the fiscal year ended March31, 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. 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 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,
                                             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           9,800              7,878
Joint Venture
Corporate General and Administrative           (7,042     )       (5,594     )
Other, net                                    679              583        
Earnings before Interest and Income            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     

Basic                                        $ 0.76            $ 0.61       
Diluted                                      $ 0.75            $ 0.60       
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)

                                                 Quarter Ended
                                                 June 30,
                                                 2014            2013
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
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

                                  Sales Volume
                                  Quarter Ended
                                  June 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 Ended
                             June 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 Ended
                            June 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)

                              June 30,                         March 31,
                               2014              2013          2014*
Current Assets –
Cash and Cash Equivalents     $ 6,541          $ 6,744        $ 6,482
Accounts and Notes               134,108           117,834         102,917
Receivable, net
Inventories                      182,470           164,197         187,096
Federal Income Tax              -                -              -
Prepaid and Other Assets        8,290           9,606         10,465    
Total Current Assets            331,409         298,381       306,960   
Property, Plant and              1,682,543         1,620,208       1,660,975
Equipment –
Less: Accumulated               (691,946  )      (630,317  )    (676,924  )
Property, Plant and              990,597           989,891         984,051
Equipment, net
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 
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    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
Shares; Issued and
Outstanding 50,153,937;
49,552,819 and
50,053,738 Shares,               502               496             501
Capital in Excess of Par         257,407           228,034         253,524
Accumulated Other                (5,377    )       (6,887    )     (5,483    )
Comprehensive Losses
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


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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