8-K
EAGLE MATERIALS INC (EXP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 21, 2024
Eagle Materials Inc.
(Exact name of Registrant as Specified in Its Charter)
| Delaware | 1-12984 | 75-2520779 |
|---|---|---|
| (State or Other Jurisdiction<br> <br>of Incorporation) | (Commission<br> <br>File Number) | (IRS Employer<br> <br>Identification No.) |
| 5960 Berkshire Ln., Suite 900<br> <br>Dallas, Texas | 75225 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (214) 432-2000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange<br> <br>on which registered |
|---|---|---|
| Common Stock, $0.01 par value | EXP | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
|---|
On May 21, 2024, Eagle Materials Inc., a Delaware corporation (“Eagle”), announced its results of operations for the quarter and fiscal year ended March 31, 2024. A copy of Eagle’s earnings press release announcing these results is being furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits |
|---|---|
| Exhibit<br>Number | Description |
| --- | --- |
| 99.1 | Earnings Press Release dated May 21, 2024 issued by Eagle Materials Inc. (announcing quarterly and fiscal-year-end operating results) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| EAGLE MATERIALS INC. | |
|---|---|
| By: | /s/ D. Craig Kesler |
| D. Craig Kesler<br> <br>Executive Vice President – Finance and Administration and Chief Financial Officer |
Date: May 21, 2024
EX-99.1
EXHIBIT 99.1
| Contact at 214-432-2000 |
|---|
| Michael R. Haack |
| President and CEO |
| D. Craig Kesler |
| Executive Vice President and CFO |
| Alex Haddock |
| Vice President, Investor Relations |
News For Immediate Release
EAGLE MATERIALS ANNOUNCES FOURTH QUARTER AND
FISCAL YEAR 2024 RESULTS
Achieved Record Annual Revenue and Profitability
Announced Heavy Materials Organic Growth Initiatives
Well-Positioned Capital Structure Supports Growth and Disciplined Capital Allocation
DALLAS, TX (May 21, 2024) Eagle Materials Inc. (NYSE: EXP) today reported financial results for fiscal year 2024 and the fiscal fourth quarter ended March 31, 2024. Notable items for the fiscal year and quarter are highlighted below. (Unless otherwise noted, all comparisons are with the prior fiscal year or prior year’s fiscal fourth quarter, as applicable.)
Full Year Fiscal 2024 Highlights
| • | Record Revenue of $2.3 billion, up 5% |
|---|---|
| • | Record Net Earnings of $477.6 million, up 3% |
| --- | --- |
| • | Record diluted earnings per share of $13.61, up 9% |
| --- | --- |
| • | Adjusted EBITDA of $834.5 million, up 7% |
| --- | --- |
| • | Adjusted EBITDA is a non-GAAP financial measure calculated by excluding non-routine items and certain non-cash expenses in the manner described in Attachment 6 |
| --- | --- |
| • | Repurchased 1.9 million shares of Eagle’s common stock for $343 million |
| --- | --- |
Fourth Quarter Fiscal 2024 Highlights
| • | Revenue of $476.7 million, up 1% |
|---|---|
| • | Net Earnings of $77.1 million, down 23% |
| --- | --- |
| • | Diluted earnings per share of $2.24, down 20% |
| --- | --- |
| • | Adjusted EBITDA of $154.4 million, down 10% |
| --- | --- |
| • | Adjusted EBITDA is a non-GAAP financial measure calculated by excluding non-routine items and certain non-cash expenses in the manner described in Attachment 6 |
| --- | --- |
| • | Repurchased 388,534 shares of Eagle’s common stock for $94 million |
| --- | --- |
Commenting on the annual results, Michael Haack, President and CEO, said, “We are pleased to announce another year of superior performance at Eagle. We achieved record financial results and made strong progress on our strategic priorities. During the fiscal year, we expanded gross margins by 50 bps to 30.3%, reported record earnings per share of $13.61, generated operating cash flow of $564 million, and repurchased 1.9 million shares of our common stock for $343 million. We also recently initiated several growth investments in our Heavy Materials business which we expect to be in line with our capital return standards and to strengthen our low-cost producer position. We ended the year with debt of $1.1 billion and a net leverage ratio (net debt to Adjusted EBITDA) of 1.3x, giving us substantial financial flexibility that supports disciplined capital allocation and sustainable long-term growth (Net debt is a non-GAAP financial measure calculated by subtracting cash and cash equivalents from debt as described in Attachment 7). Our results and financial position reflect the talent and dedication of our employees and our culture of continuous improvement.”
“Employee health and safety and environmental stewardship remain paramount objectives, and we achieved milestones in these areas over the year. Our safety performance continued to outpace the industry average, and we had a 10% increase in hazard observation reporting, which is the most useful leading indicator to prevent incidents. We also increased the production and sale of blended cement products, including Portland Limestone Cement, to 75% of our total manufactured product sales, advancing our efforts to reduce the carbon intensity of our cement.”
“In February 2024, we meaningfully enhanced our disclosures related to all our environmental, health and safety initiatives. Our updated and expanded Corporate Sustainability Report is available on our website.”
“Recently, we announced the planned start-up this summer of a slag-cement facility in Houston which will have a manufacturing capacity of 500,000 tons to meet increasing demand in the fast-growing Texas market. The slag-cement facility will be operated through Texas Lehigh Cement Company, our 50/50 joint venture with Heidelberg Materials. And, last week we announced a $430 million investment to modernize and expand our Mountain Cement facility in Wyoming, which we expect will add 500,000 tons of production, lower the plant’s manufacturing costs by approximately 25%, and reduce the carbon intensity of the facility. The project is scheduled to be completed in the second half of 2026.”
Mr. Haack concluded, “While in the fourth quarter both Cement and Concrete and Aggregates results were affected by adverse weather conditions and Cement results by increased maintenance costs, we expect underlying fundamentals to remain solid in our markets during fiscal 2025. Large-scale infrastructure spending and domestic manufacturing projects should support strong demand for cement. We also anticipate increased residential construction activity as mortgage rates stabilize and the well-documented housing supply shortage continues. We remain positioned to capitalize on these market dynamics given our geographical footprint across the U.S. heartland and fast-growing Sun Belt region. Our financial strength and flexibility are the key factors that should enable us to drive shareholder returns through shifting macroeconomic cycles.”
Capital Allocation Priorities
Eagle remains dedicated to a disciplined capital allocation process to enhance shareholder value. Our allocation priorities remain unchanged: 1. Investing in growth opportunities that are consistent with our strategic focus and meet our strict financial return standards; 2. Operating capital investments to maintain and strengthen our low-cost producer position; and 3. Returning excess cash to shareholders, primarily through our share repurchase program.
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Over the past five fiscal years, we have invested $913 million in acquisitions, $486 million in organic capital expenditures, and $1.8 billion in share repurchases and dividends.
Segment Financial Results
Heavy Materials: Cement, Concrete and Aggregates
Fiscal 2024 revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, as well as Joint Venture and intersegment Cement revenue, was $1.5 billion, a 12% increase. Heavy Materials annual operating earnings increased 18% to $350.8 million, primarily because of higher Cement net sales prices.
Fiscal 2024 Cement revenue, including Joint Venture and intersegment revenue, was up 14% to $1.2 billion, and Cement operating earnings increased 21% to $338.3 million. These increases reflect higher Cement sales volume and net sales prices as well as the contribution of approximately $39 million of revenue from the Stockton Import Terminal acquired in the first quarter of the fiscal year.
The average annual net Cement sales price for the year increased 12% to $150.99 per ton. Cement sales volume for the year was up 2% to 7.3 million tons. Excluding the sales volume from the acquired Stockton Import Terminal, Cement sales volume declined 2%.
Fourth quarter Cement revenue, including Joint Venture and intersegment revenue, was up 6% to $227.6 million, reflecting higher Cement sales prices as well as the contribution of approximately $9 million of revenue from the Stockton Import Terminal acquired in the first quarter of the fiscal year. Operating earnings declined 18% to $37.3 million, reflecting lower organic sales volume and higher operating costs, namely approximately $7 million in maintenance costs, partially offset by higher net sales prices. The increase in maintenance costs was a result of our proactive approach to maintenance during a seasonally slower quarter. The average net Cement sales price for the quarter increased 5% to $154.59 per ton. Cement sales volume for the quarter was up 2% to 1.3 million tons. Excluding the sales volume from the acquired Stockton Import Terminal, Cement sales volume declined 3%, primarily as a result of adverse weather conditions, particularly in January.
Fiscal 2024 revenue from Concrete and Aggregates increased slightly to $240.0 million, reflecting higher Concrete sales prices and Aggregates sales volume as well as the contribution of approximately $7 million from the acquired aggregates business in Kentucky. Concrete and Aggregates reported fiscal 2024 operating earnings of $12.4 million, down 32%, because of lower Concrete sales volume and higher input costs primarily related to concrete raw materials.
Fourth quarter Concrete and Aggregates revenue was $48.7 million, a decrease of 8%, due to lower Concrete sales volume. Revenue included the contribution of approximately $1 million from the acquired aggregates business in Kentucky. The fourth quarter operating loss was $1.0 million, reflecting lower Concrete sales volume due to difficult weather conditions during the quarter, most notably in our Austin and Kansas City concrete markets.
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Light Materials: Gypsum Wallboard and Paperboard
Fiscal 2024 revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, decreased 4% to $941.4 million, reflecting lower Wallboard sales volume and Paperboard pricing partially offset by record Paperboard sales volume. Gypsum Wallboard annual sales volume was 3.0 billion square feet (BSF), down 3% reflecting a modest slowdown in residential construction activity, and the average Gypsum Wallboard net sales price was up slightly to $232.75 per MSF. Paperboard annual sales volume was up 2% to 333,000 tons.
Fiscal 2024 Light Materials operating earnings were $366.2 million, a decrease of 3%, driven principally by lower Wallboard sales volume.
Fourth quarter Light Materials revenue declined 2% to $238.6 million, reflecting lower Wallboard pricing and sales volume. Gypsum Wallboard sales volume decreased 1% to 747 million square feet (MMSF), while the average Gypsum Wallboard net sales price declined 3% to $232.62 per MSF. Paperboard sales volume for the quarter was up 8% to 86,000 tons. The average Paperboard net sales price for the fourth quarter was $567.55 per ton, up 3%, consistent with the pricing provisions in our long-term sales agreements that factor in changes to input costs.
Fourth quarter operating earnings in the sector were $92.2 million, a decrease of 7%, reflecting lower Wallboard sales volume and pricing.
Details of Financial Results
We conduct one of our cement plant operations through a 50/50 joint venture, Texas Lehigh Cement Company LP (the Joint Venture). We use 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 revenue and operating earnings, which is consistent with the way management organizes the segments within Eagle for making operating decisions and assessing performance.
In addition, for segment reporting purposes, we report intersegment revenue as a part of a segment’s total revenue. Intersegment sales are eliminated on the Consolidated Statement of Earnings. Refer to Attachment 3 for a reconciliation of these amounts.
About Eagle Materials Inc.
Eagle Materials Inc. is a leading U.S. manufacturer of heavy construction products and light building materials. Eagle’s primary products, Portland Cement and Gypsum Wallboard, are essential for building, expanding and repairing roads and highways and for building and renovating residential, commercial and industrial structures across America. Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states and is headquartered in Dallas, Texas. Visit eaglematerials.com for more information.
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Eagle’s senior management will conduct a conference call to discuss the financialresults, forward looking information and other matters at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Tuesday, May 21, 2024. The conference call will be webcast on the Eagle website, eaglematerials.com. A replay of the webcast andthe presentation will be archived on the site for one year.
Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of theSecurities 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 statements and generally arise when theCompany is discussing its beliefs, estimates or expectations as to future events. 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 maderegarding 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 suchforward-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 businesses; fluctuations in public infrastructureexpenditures; 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; the availability andfluctuations in the cost of raw materials; changes in the costs of energy, including, without limitation, natural gas, coal and oil (including diesel), and the nature of our obligations to counterparties under energy supply contracts, such as thoserelated to market conditions (for example, spot market prices), governmental orders and other matters; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipmentdowntime and interruption of production; material nonpayment or non-performance by any of our key customers; consolidation of our customers; 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 and other environmental regulation); possible outcomes of pendingor future litigation or arbitration proceedings; changes in economic conditions or the nature or level of activity in any one or more of the markets or industries in which the Company or its customers are engaged; severe weather conditions (such aswinter storms, tornados and hurricanes) and their effects on our facilities, operations and contractual arrangements with third parties; competition; cyber-attacks or data security breaches; increases in capacity in the gypsum wallboard and cementindustries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities that meet ourfinancial return standards and fit our strategic focus; risks related to pursuit of acquisitions, joint ventures and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by theCompany; general economic conditions, including inflation and recessionary conditions; and changes in interest rates and the resulting effects on the Company and demand for our products. For example, increases in interest rates, decreases in demandfor construction materials or increases in the cost of energy (including, without limitation, natural gas, coal and oil) or the cost of our raw materials can be expected to adversely affect the revenue and operating earnings of our operations. Inaddition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company’s result of operations. Finally, any forward-looking statements made by the Company aresubject to the risks and impacts associated with natural disasters, the outbreak, escalation or resurgence of health emergencies, pandemics or other unforeseen events, including, without limitation, theCOVID-19 pandemic and responses thereto designed to contain its spread and mitigate its public health effects, as well as their impact on our operations and on economic conditions, capital and financialmarkets. These and other factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023 and subsequent quarterly and annualreports upon filing. 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 fromexpectations 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.
For additional information, contact at 214-432-2000.
Michael R. Haack
President and Chief ExecutiveOfficer
D. Craig Kesler
Executive VicePresident and Chief Financial Officer
Alex Haddock
Vice President, Investor Relations, Strategy and Corporate Development
Attachment 1 Statement of Consolidated Earnings
Attachment 2 Revenue and Earnings by Lines of Business
Attachment 3 Sales Volume, Average Net Sales Prices and Intersegment and Cement Revenue
Attachment 4 Consolidated Balance Sheets
Attachment 5 Depreciation, Depletion and Amortization by Lines of Business
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Attachment 6 Reconciliation of Non-GAAP Financial Measures
Attachment 7 Reconciliation of Net Debt to Adjusted EBITDA
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Attachment 1
Eagle Materials Inc.
Consolidated Statement of Earnings
(dollars in thousands, except per share data)
(unaudited)
| Quarter Ended<br>March 31, | Fiscal Year Ended<br>March 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | $ | 476,707 | $ | 470,127 | $ | 2,259,297 | $ | 2,148,069 | ||||
| Cost of Goods Sold | 357,027 | 334,736 | 1,573,976 | 1,508,803 | ||||||||
| Gross Profit | 119,680 | 135,391 | 685,321 | 639,266 | ||||||||
| Equity in Earnings of Unconsolidated JV | 8,791 | 11,843 | 31,581 | 35,474 | ||||||||
| Corporate General and Administrative Expenses | (17,339 | ) | (15,686 | ) | (59,795 | ) | (53,630 | ) | ||||
| Other Non-Operating Income | 250 | 1,743 | 3,087 | 2,654 | ||||||||
| Earnings Before Interest and Income Taxes | 111,382 | 133,291 | 660,194 | 623,764 | ||||||||
| Interest Expense, net | (9,686 | ) | (10,329 | ) | (42,257 | ) | (35,171 | ) | ||||
| Earnings Before Income Taxes | 101,696 | 122,962 | 617,937 | 588,593 | ||||||||
| Income Tax Expense | (24,597 | ) | (22,606 | ) | (140,298 | ) | (127,053 | ) | ||||
| Net Earnings | $ | 77,099 | $ | 100,356 | $ | 477,639 | $ | 461,540 | ||||
| NET EARNINGS PER SHARE | ||||||||||||
| Basic | $ | 2.26 | $ | 2.81 | $ | 13.72 | $ | 12.54 | ||||
| Diluted | $ | 2.24 | $ | 2.79 | $ | 13.61 | $ | 12.46 | ||||
| AVERAGE SHARES OUTSTANDING | ||||||||||||
| Basic | 34,066,929 | 35,724,101 | 34,811,560 | 36,798,354 | ||||||||
| Diluted | 34,391,722 | 36,012,770 | 35,097,871 | 37,052,942 |
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Attachment 2
Eagle Materials Inc.
Revenue and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
| Quarter Ended<br>March 31, | Fiscal Year Ended<br>March 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue* | ||||||||||||
| Heavy Materials: | ||||||||||||
| Cement (Wholly Owned) | $ | 189,386 | $ | 172,784 | $ | 1,077,918 | $ | 927,637 | ||||
| Concrete and Aggregates | 48,721 | 53,109 | 240,012 | 239,516 | ||||||||
| 238,107 | 225,893 | 1,317,930 | 1,167,153 | |||||||||
| Light Materials: | ||||||||||||
| Gypsum Wallboard | 210,231 | 219,490 | 839,530 | 872,471 | ||||||||
| Recycled Paperboard | 28,369 | 24,744 | 101,837 | 108,445 | ||||||||
| 238,600 | 244,234 | 941,367 | 980,916 | |||||||||
| Total Revenue | $ | 476,707 | $ | 470,127 | $ | 2,259,297 | $ | 2,148,069 | ||||
| Segment Operating Earnings | ||||||||||||
| Heavy Materials: | ||||||||||||
| Cement (Wholly Owned) | $ | 28,502 | $ | 33,477 | $ | 306,768 | $ | 243,288 | ||||
| Cement (Joint Venture) | 8,791 | 11,843 | 31,581 | 35,474 | ||||||||
| Concrete and Aggregates | (1,033 | ) | 2,559 | 12,401 | 18,259 | |||||||
| 36,260 | 47,879 | 350,750 | 297,021 | |||||||||
| Light Materials: | ||||||||||||
| Gypsum Wallboard | 82,911 | 91,335 | 334,536 | 352,499 | ||||||||
| Recycled Paperboard | 9,300 | 8,020 | 31,616 | 25,220 | ||||||||
| 92,211 | 99,355 | 366,152 | 377,719 | |||||||||
| Sub-total | 128,471 | 147,234 | 716,902 | 674,740 | ||||||||
| Corporate General and Administrative Expense | (17,339 | ) | (15,686 | ) | (59,795 | ) | (53,630 | ) | ||||
| Other Non-Operating Income | 250 | 1,743 | 3,087 | 2,654 | ||||||||
| Earnings Before Interest and Income Taxes | $ | 111,382 | $ | 133,291 | $ | 660,194 | $ | 623,764 | ||||
| * | Excluding Intersegment and Joint Venture Revenue listed on Attachment 3 | |||||||||||
| --- | --- |
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Attachment 3
Eagle Materials Inc.
Sales Volume, Net Sales Prices and Intersegment and Cement Revenue
(unaudited)
| Sales Volume | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter Ended<br>March 31, | Fiscal Year Ended<br>March 31, | |||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||
| Cement (M Tons): | ||||||||||||||
| Wholly Owned | 1,140 | 1,086 | +5 | % | 6,610 | 6,399 | +3 | % | ||||||
| Joint Venture | 183 | 210 | -13 | % | 679 | 734 | -7 | % | ||||||
| 1,323 | 1,296 | +2 | % | 7,289 | 7,133 | +2 | % | |||||||
| Concrete (M Cubic Yards) | 273 | 335 | -19 | % | 1,328 | 1,545 | -14 | % | ||||||
| Aggregates (M Tons) | 702 | 576 | +22 | % | 4,064 | 2,909 | +40 | % | ||||||
| Gypsum Wallboard (MMSFs) | 747 | 756 | -1 | % | 2,965 | 3,065 | -3 | % | ||||||
| Recycled Paperboard (M Tons): | ||||||||||||||
| Internal | 35 | 37 | -5 | % | 145 | 152 | -5 | % | ||||||
| External | 51 | 43 | +19 | % | 188 | 174 | +8 | % | ||||||
| 86 | 80 | +8 | % | 333 | 326 | +2 | % | |||||||
| Average Net Sales Price* | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Quarter Ended<br>March 31, | Fiscal Year Ended<br>March 31, | |||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||
| Cement (Ton) | $ | 154.59 | $ | 147.50 | +5 | % | $ | 150.99 | $ | 134.36 | +12 | % | ||
| Concrete (Cubic Yard) | $ | 148.60 | $ | 136.51 | +9 | % | $ | 145.98 | $ | 133.34 | +9 | % | ||
| Aggregates (Ton) | $ | 11.53 | $ | 13.07 | -12 | % | $ | 11.26 | $ | 11.53 | -2 | % | ||
| Gypsum Wallboard (MSF) | $ | 232.62 | $ | 239.39 | -3 | % | $ | 232.75 | $ | 232.31 | 0 | % | ||
| Recycled Paperboard (Ton) | $ | 567.55 | $ | 550.52 | +3 | % | $ | 551.72 | $ | 590.67 | -7 | % | ||
| * | Net of freight and delivery costs billed to customers | |||||||||||||
| --- | --- | |||||||||||||
| Intersegment and Cement Revenue<br>(dollars in thousands) | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| Quarter Ended<br>March 31, | Fiscal Year Ended<br>March 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Intersegment Revenue: | ||||||||||||||
| Cement | $ | 8,171 | $ | 6,544 | $ | 35,363 | $ | 32,915 | ||||||
| Concrete and Aggregates | 2,705 | — | 12,940 | — | ||||||||||
| Recycled Paperboard | 20,422 | 21,016 | 82,351 | 92,835 | ||||||||||
| $ | 31,298 | $ | 27,560 | $ | 130,654 | $ | 125,750 | |||||||
| Cement Revenue: | ||||||||||||||
| Wholly Owned | $ | 189,386 | $ | 172,784 | $ | 1,077,918 | $ | 927,637 | ||||||
| Joint Venture | 30,023 | 34,453 | 112,736 | 113,518 | ||||||||||
| $ | 219,409 | $ | 207,237 | $ | 1,190,654 | $ | 1,041,155 |
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Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
| 2023 | |||||
| ASSETS | |||||
| Current Assets – | |||||
| Cash and Cash Equivalents | 34,925 | $ | 15,242 | ||
| Accounts and Notes Receivable, net | 202,985 | 195,052 | |||
| Inventories | 373,923 | 291,882 | |||
| Federal Income Tax Receivable | 9,910 | 16,267 | |||
| Prepaid and Other Assets | 5,950 | 3,060 | |||
| Total Current Assets | 627,693 | 521,503 | |||
| Property, Plant and Equipment, net | 1,676,217 | 1,662,061 | |||
| Investments in Joint Venture | 113,478 | 89,111 | |||
| Operating Lease<br>Right-of-Use Assets | 19,373 | 20,759 | |||
| Notes Receivable | — | 7,382 | |||
| Goodwill and Intangibles | 486,117 | 466,043 | |||
| Other Assets | 24,141 | 14,143 | |||
| 2,947,019 | $ | 2,781,002 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current Liabilities – | |||||
| Accounts Payable | 127,183 | $ | 110,408 | ||
| Accrued Liabilities | 94,327 | 86,472 | |||
| Current Portion of Long-Term Debt | 10,000 | 10,000 | |||
| Operating Lease Liabilities | 7,899 | 6,009 | |||
| Total Current Liabilities | 239,409 | 212,889 | |||
| Long-Term Liabilities | 70,979 | 66,543 | |||
| Bank Credit Facility | 170,000 | 157,000 | |||
| Bank Term Loan | 172,500 | 182,500 | |||
| 2.500% Senior Unsecured Notes due 2031 | 740,799 | 739,532 | |||
| Deferred Income Taxes | 244,797 | 236,844 | |||
| 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 34,143,945 and 35,768,376 Shares, respectively | 341 | 358 | |||
| Capital in Excess of Par Value | — | — | |||
| Accumulated Other Comprehensive Losses | (3,373 | ) | (3,547 | ) | |
| Retained Earnings | 1,311,567 | 1,188,883 | |||
| Total Stockholders’ Equity | 1,308,535 | 1,185,694 | |||
| 2,947,019 | $ | 2,781,002 |
All values are in US Dollars.
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Attachment 5
Eagle Materials Inc.
Depreciation, Depletion and Amortization by Lines of Business
(dollars in thousands)
(unaudited)
The following tablepresents depreciation, depletion and amortization by lines of business for the quarters and fiscal years ended March 31, 2024 and 2023:
| Depreciation, Depletion andAmortization | ||||||||
|---|---|---|---|---|---|---|---|---|
| Quarter Ended<br>March 31, | Fiscal Year Ended<br>March 31, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| Cement | $ | 22,758 | $ | 20,750 | $ | 89,138 | $ | 81,643 |
| Concrete and Aggregates | 4,877 | 4,459 | 19,728 | 17,413 | ||||
| Gypsum Wallboard | 6,418 | 5,205 | 23,038 | 21,744 | ||||
| Recycled Paperboard | 3,690 | 3,745 | 14,811 | 14,942 | ||||
| Corporate and Other | 742 | 706 | 3,117 | 2,812 | ||||
| $ | 38,485 | $ | 34,865 | $ | 149,832 | $ | 138,554 |
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Attachment 6
Eagle Materials Inc.
Reconciliation of Non-GAAP Financial Measures
(unaudited)
(dollars inthousands)
EBITDA and Adjusted EBITDA
We present Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA to provide additional measures of operating performance and allow for more consistent comparison of operating performance from period to period. EBITDA is a non-GAAP financial measure that provides supplemental information regarding the operating performance of our business without regard to financing methods, capital structures or historical cost basis. Adjusted EBITDA is also a non-GAAP financial measure that further excludes the impact from non-routine items and stock-based compensation. Management uses EBITDA and Adjusted EBITDA as alternative bases for comparing the operating performance of Eagle from period to period and for purposes of its budgeting and planning processes. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate Adjusted EBITDA in the same manner. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as an alternative to net income, cash flow from operations or any other measure of financial performance or liquidity in accordance with GAAP. The following shows the calculation of EBITDA and Adjusted EBITDA and reconciles them to net earnings in accordance with GAAP for the quarters and fiscal years ended March 31, 2024 and 2023:
| Quarter Ended<br>March 31, | Fiscal Year Ended<br>March 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||
| Net Earnings, as reported | $ | 77,099 | $ | 100,356 | $ | 477,639 | $ | 461,540 |
| Income Tax Expense | 24,597 | 22,606 | 140,298 | 127,053 | ||||
| Interest Expense | 9,686 | 10,329 | 42,257 | 35,171 | ||||
| Depreciation, Depletion and Amortization | 38,485 | 34,865 | 149,832 | 138,554 | ||||
| EBITDA | $ | 149,867 | $ | 168,156 | $ | 810,026 | $ | 762,318 |
| Purchase accounting ^1^ | — | — | 4,568 | 2,067 | ||||
| Stock-based Compensation | 4,544 | 3,519 | 19,900 | 17,155 | ||||
| Adjusted EBITDA | $ | 154,411 | $ | 171,675 | $ | 834,494 | $ | 781,540 |
| ^1^ | Represents the impact of purchase accounting on inventory costs and related business development costs<br> | |||||||
| --- | --- |
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Attachment 7
Eagle Materials Inc.
Reconciliation of Net Debt to Adjusted EBITDA
(unaudited)
(dollars inthousands)
GAAP does not define “Net Debt” and it should not be considered as an alternative to debt as defined by GAAP. We define Net Debt as total debt minus cash and cash equivalents to indicate the amount of total debt that would remain if the Company applied the cash and cash equivalents held by it to the payment of outstanding debt. The Company also uses “Net Debt to Adjusted EBITDA,” which it defines as Net Debt divided by Adjusted EBITDA for the trailing twelve months, as an alternative metric to assist it in understanding its leverage position. We present this metric for the convenience of the investment community and rating agencies who use such metrics in their analysis, and for investors who need to understand the metrics we use to assess performance and monitor our cash and liquidity positions.
| Fiscal Year Ended<br>March 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Total debt, excluding debt issuance costs | $ | 1,102,500 | $ | 1,099,500 |
| Cash and cash equivalents | 34,925 | 15,242 | ||
| Net Debt | $ | 1,067,575 | $ | 1,084,258 |
| Adjusted EBITDA | 834,494 | 781,540 | ||
| Net Debt to Adjusted EBITDA | 1.3x | 1.4x |
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