Sign In  |  Register  |  About San Anselmo  |  Contact Us

San Anselmo, CA
September 01, 2020 1:33pm
7-Day Forecast | Traffic
  • Search Hotels in San Anselmo

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Eagle Materials Reports Record Second Quarter Results With 15% EPS Growth

Eagle Materials Inc. (NYSE: EXP) today reported financial results for the second quarter of fiscal 2024 ended September 30, 2023. Notable items for the quarter are highlighted below (unless otherwise noted, all comparisons are with the prior year’s fiscal second quarter):

Second Quarter Fiscal 2024 Highlights

  • Record Revenue of $622.2 million, up 3%
  • Record Net Earnings of $150.6 million, up 8%
  • Record Net Earnings per diluted share of $4.26, up 15%
  • Adjusted net earnings per share (Adjusted EPS) of $4.28, up 14%
    • Adjusted EPS is a non-GAAP financial measure calculated by excluding non-routine items in the manner described in Attachment 6
  • Adjusted EBITDA of $247.2 million, up 9%
    • 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 432,500 shares of Eagle’s common stock for $77 million

Commenting on the second quarter results, Michael Haack, President and CEO, said, “Market conditions for our construction materials remained resilient during the quarter, even as the Fed continued to raise interest rates and tighten money supply to contain inflation. Several factors helped offset the higher rates and supported demand for wallboard and cement, including limited housing supply, strong homebuyer demand, increasing infrastructure awards and significant investment in domestic manufacturing facilities.

Against this backdrop, our businesses performed well. We generated record revenue of $622 million and record EPS of $4.26, and we expanded gross margins by 150 bps to 33.6%. Cash flow from operations was $172.4 million. We returned $86 million of cash to shareholders through share repurchases and dividends, while using our strong cashflow to strengthen our balance sheet: at September 30, 2023, Eagle’s net debt was $1.1 billion, and our net adjusted leverage ratio (net debt to Adjusted EBITDA) was 1.3x. We also made progress on our strategic initiatives. We increased production and sales of Portland Limestone Cement, to more than 60% across our system, and we continued the integration of our recently acquired cement import terminal in Stockton, California.

Mr. Haack continued, “In our Heavy Materials business, as demand remained strong and our operations remained nearly sold-out, we implemented a second round of cement price increases in early July across half our markets and announced the next round of price increases for early January 2024. In our Light Materials sector, the backlog of housing construction supported resilient wallboard shipments and orders, but we recognize the significant increase in interest rates may have an impact on residential construction activity in the future. Nonetheless, we expect that our portfolio of businesses will remain well-positioned for the second half of fiscal 2024.”

Segment Financial Results

Heavy Materials: Cement, Concrete and Aggregates

Revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, Joint Venture and intersegment Cement revenue, was $426.9 million, a 10% increase. Heavy Materials operating earnings were up 19% to $126.1 million. Both the increase in revenue and operating earnings were primarily attributable to higher Cement sales prices.

Cement revenue for the quarter, including Joint Venture and intersegment revenue, was up 13% to $360.8 million, and operating earnings were a record $121.4 million, up 23%. These increases reflect higher Cement net sales prices and the contribution of approximately $13 million of revenue from the recently acquired Stockton Terminal, which helped mitigate an overall decrease in sales volume. The increase in operating earnings was partially offset by the impact of the step-up in inventory values related to the acquisition of the Stockton Terminal. The average net sales price for the quarter was up 15% to $151.99 per ton, reflecting Cement price increases implemented in January 2023 and a second round of price increases implemented in early July 2023. Cement sales volume decreased 1% to 2.1 million tons. Excluding the recently acquired Stockton Terminal, Cement sales volume declined 5%, because of wet weather in several markets and extreme heat in our southern markets throughout the quarter.

Concrete and Aggregates revenue decreased 5% to $66.1 million, reflecting lower Concrete sales volume partially offset by higher Concrete pricing. Second quarter operating earnings declined 36% to $4.6 million, primarily reflecting lower Concrete sales volume and higher cost of materials.

Light Materials: Gypsum Wallboard and Paperboard

Revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, decreased 8% to $233.5 million, reflecting lower Wallboard and Paperboard sales volume and lower Paperboard sales prices. Gypsum Wallboard sales volume declined 6% to 733 million square feet (MMSF), while the average Gypsum Wallboard net sales price was flat with the prior year at $233.69 per MSF.

Paperboard sales volume for the quarter was down 6% from the prior year at 80,000 tons, in line with overall gypsum wallboard shipments. The average Paperboard net sales price was $542.28 per ton, down 10%, consistent with the pricing provisions in our long-term sales agreements that factor in changes to input costs.

Operating earnings in the sector were $93.3 million, a decrease of 2%, reflecting lower Wallboard sales volume, partially offset by lower raw material costs, namely recycled fiber and energy.

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 the Company 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 income statement. Refer to Attachment 3 for a reconciliation of these amounts.

About Eagle Materials Inc.

Eagle Materials Inc. manufactures and distributes Portland Cement, Gypsum Wallboard, Recycled Paperboard and Concrete and Aggregates from more than 70 facilities across the US. Eagle’s corporate headquarters is in Dallas, Texas.

Eagle’s senior management will conduct a conference call to discuss the financial results, forward looking information and other matters at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Thursday, October 26, 2023. The conference call will be webcast on the Eagle website, eaglematerials.com. A replay of the webcast and the presentation will be archived on the website for one year.

Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statements and generally arise when the Company 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 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 businesses; fluctuations in 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; the availability and fluctuations 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 those related 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, equipment downtime and interruption of production; material nonpayment or non-performance by any of our key 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 pending or 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 as winter 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 cement industries; 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 our financial 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 the Company; 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 demand for 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. 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. Finally, any forward-looking statements made by the Company are subject 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, the COVID-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 financial markets. 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 annual reports 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 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 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

Attachment 6 Reconciliation of Non-GAAP Financial Measures

Attachment 7 Reconciliation of Net Debt to Adjusted EBITDA

 

Attachment 1

 

Eagle Materials Inc.

Statement of Consolidated Earnings

(dollars in thousands, except per share data)

(unaudited)

 

 

Quarter Ended

September 30,

 

Six Months Ended

September 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

Revenue

$

622,236

 

 

$

605,068

 

 

$

1,223,757

 

 

$

1,166,455

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

413,218

 

 

 

410,829

 

 

 

838,744

 

 

 

821,350

 

 

 

 

 

 

 

 

 

Gross Profit

 

209,018

 

 

 

194,239

 

 

 

385,013

 

 

 

345,105

 

 

 

 

 

 

 

 

 

Equity in Earnings of Unconsolidated JV

 

10,346

 

 

 

7,156

 

 

 

13,505

 

 

 

12,254

 

Corporate General and Administrative Expenses

 

(16,576

)

 

 

(13,627

)

 

 

(28,255

)

 

 

(25,447

)

Other Non-Operating (Loss) Income

 

1,605

 

 

 

(664

)

 

 

1,818

 

 

 

(1,299

)

 

 

 

 

 

 

 

 

Earnings before Interest and Income Taxes

 

204,393

 

 

 

187,104

 

 

 

372,081

 

 

 

330,613

 

 

Interest Expense, net

 

(10,204

)

 

 

(8,580

)

 

 

(22,443

)

 

 

(15,910

)

 

 

 

 

 

 

 

 

Earnings before Income Taxes

 

194,189

 

 

 

178,524

 

 

 

349,638

 

 

 

314,703

 

 

Income Tax Expense

 

(43,636

)

 

 

(39,529

)

 

 

(78,236

)

 

 

(70,703

)

 

 

 

 

 

 

 

 

Net Earnings

$

150,553

 

 

$

138,995

 

 

$

271,402

 

 

$

244,000

 

 

 

 

 

 

 

 

 

 

NET EARNINGS PER SHARE

 

 

 

 

 

 

 

Basic

$

4.29

 

 

$

3.74

 

 

$

7.72

 

 

$

6.50

 

Diluted

$

4.26

 

 

$

3.72

 

 

$

7.66

 

 

$

6.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

Basic

 

35,056,973

 

 

 

37,140,197

 

 

 

35,165,268

 

 

 

37,559,087

 

Diluted

 

35,336,966

 

 

 

37,366,879

 

 

 

35,433,837

 

 

 

37,792,613

 

 
Attachment 2
 

Eagle Materials Inc.

Revenue and Earnings by Lines of Business

(dollars in thousands)

(unaudited)

 

 

Quarter Ended

September 30,

 

Six Months Ended

September 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Heavy Materials:

 

 

 

 

 

 

 

Cement (Wholly Owned)

$

322,593

 

 

$

281,969

 

 

$

614,365

 

 

$

533,879

 

Concrete and Aggregates

 

66,104

 

 

 

69,613

 

 

 

133,519

 

 

 

131,231

 

 

 

388,697

 

 

 

351,582

 

 

 

747,884

 

 

 

665,110

 

 

 

 

 

 

 

 

 

Light Materials:

 

 

 

 

 

 

 

Gypsum Wallboard

 

209,233

 

 

 

224,638

 

 

 

428,330

 

 

 

440,965

 

Recycled Paperboard

 

24,306

 

 

 

28,848

 

 

 

47,543

 

 

 

60,380

 

 

 

233,539

 

 

 

253,486

 

 

 

475,873

 

 

 

501,345

 

 

 

 

 

 

 

 

 

Total Revenue

$

622,236

 

 

$

605,068

 

 

$

1,223,757

 

 

$

1,166,455

 

 

 

 

Segment Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Heavy Materials:

 

 

 

 

 

 

 

Cement (Wholly Owned)

$

111,083

 

 

$

91,623

 

 

$

181,985

 

 

$

148,873

 

Cement (Joint Venture)

 

10,346

 

 

 

7,156

 

 

 

13,505

 

 

 

12,254

 

Concrete and Aggregates

 

4,640

 

 

 

7,276

 

 

 

11,674

 

 

 

13,008

 

 

 

126,069

 

 

 

106,055

 

 

 

207,164

 

 

 

174,135

 

 

 

 

 

 

 

 

 

Light Materials:

 

 

 

 

 

 

 

Gypsum Wallboard

 

85,705

 

 

 

89,761

 

 

 

176,562

 

 

 

173,829

 

Recycled Paperboard

 

7,590

 

 

 

5,579

 

 

 

14,792

 

 

 

9,395

 

 

 

93,295

 

 

 

95,340

 

 

 

191,354

 

 

 

183,224

 

 

 

 

 

 

 

 

 

Sub-total

 

219,364

 

 

 

201,395

 

 

 

398,518

 

 

 

357,359

 

 

 

 

 

 

 

 

 

Corporate General and Administrative Expense

 

(16,576

)

 

 

(13,627

)

 

 

(28,255

)

 

 

(25,447

)

Other Non-Operating (Loss) Income

 

1,605

 

 

 

(664

)

 

 

1,818

 

 

 

(1,299

)

 

 

 

 

 

 

 

 

Earnings before Interest and Income Taxes

$

204,393

 

 

$

187,104

 

 

$

372,081

 

 

$

330,613

 

 

* Excluding Intersegment and Joint Venture Revenue listed on Attachment 3

 

Attachment 3

 

Eagle Materials Inc.

Sales Volume, Average Net Sales Prices and Intersegment and Cement Revenue

(dollars in thousands, except per unit data)

(unaudited)

 

 

Sales Volume

 

Quarter Ended

September 30,

 

Six Months Ended

September 30,

 

2023

 

2022

 

Change

 

2023

 

2022

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Cement (M Tons):

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

1,959

 

1,981

 

-1

%

 

3,807

 

3,786

 

+1

%

Joint Venture

170

 

164

 

+4

%

 

335

 

352

 

-5

%

 

2,129

 

2,145

 

-1

%

 

4,142

 

4,138

 

0

%

 

 

 

 

 

 

 

 

 

 

 

 

Concrete (M Cubic Yards)

362

 

451

 

-20

%

 

747

 

857

 

-13

%

 

 

 

 

 

 

 

 

 

 

 

 

Aggregates (M Tons)

1,171

 

912

 

+28

%

 

2,328

 

1,707

 

+36

%

 

 

 

 

 

 

 

 

 

 

 

 

Gypsum Wallboard (MMSFs)

733

 

783

 

-6

%

 

1,496

 

1,581

 

-5

%

 

 

 

 

 

 

 

 

 

 

 

 

Recycled Paperboard (M Tons):

 

 

 

 

 

 

 

 

 

 

 

Internal

33

 

40

 

-18

%

 

73

 

76

 

-4

%

External

47

 

45

 

+4

%

 

90

 

93

 

-3

%

 

80

 

85

 

-6

%

 

163

 

169

 

-4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Net Sales Price*

 

Quarter Ended

September 30,

 

Six Months Ended

September 30,

 

2023

 

2022

 

Change

 

2023

 

2022

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Cement (Ton)

$

151.99

 

$

132.50

 

+15

%

 

$

149.70

 

$

130.24

 

+15

%

Concrete (Cubic Yard)

$

145.39

 

$

134.28

 

+8

%

 

$

143.55

 

$

131.65

 

+9

%

Aggregates (Ton)

$

11.15

 

$

10.87

 

+3

%

 

$

11.21

 

$

11.05

 

+1

%

Gypsum Wallboard (MSF)

$

233.69

 

$

233.70

 

0

%

 

$

235.20

 

$

226.07

 

+4

%

Recycled Paperboard (Ton)

$

542.28

 

$

603.62

 

-10

%

 

$

539.35

 

$

607.73

 

-11

%

 

*Net of freight and delivery costs billed to customers.

 

Intersegment and Cement Revenue

 

Quarter Ended

September 30,

 

Six Months Ended

September 30,

 

2023

 

2022

 

2023

 

2022

Intersegment Revenue:

 

 

 

 

 

 

 

Cement

$

9,251

 

$

12,361

 

$

19,388

 

$

18,652

Concrete and Aggregates

 

3,783

 

 

-

 

 

6,821

 

 

-

Recycled Paperboard

 

18,710

 

 

24,825

 

 

40,801

 

 

47,366

 

$

31,744

 

$

37,186

 

$

67,010

 

$

66,018

 

 

 

 

 

 

 

 

Cement Revenue:

 

 

 

 

 

 

 

Wholly Owned

$

322,593

 

$

281,969

 

$

614,365

 

$

533,879

Joint Venture

 

28,907

 

 

25,130

 

 

56,030

 

 

51,445

 

$

351,500

 

$

307,099

 

$

670,395

 

$

585,324

 

Attachment 4

 

Eagle Materials Inc.

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)

 

 

September 30,

 

March 31,

 

 

2023

 

 

 

2022

 

 

2023*

ASSETS

 

 

 

 

 

 

Current Assets –

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

47,321

 

 

$

84,140

 

 

$

15,242

 

Accounts and Notes Receivable, net

 

 

244,832

 

 

 

232,595

 

 

 

195,052

 

Inventories

 

 

301,374

 

 

 

225,835

 

 

 

291,882

 

Federal Income Tax Receivable

 

 

8,144

 

 

 

4,371

 

 

 

16,267

 

Prepaid and Other Assets

 

 

10,135

 

 

 

5,933

 

 

 

3,060

 

Total Current Assets

 

 

611,806

 

 

 

552,874

 

 

 

521,503

 

 

 

 

 

 

 

 

Property, Plant and Equipment, net

 

 

1,676,738

 

 

 

1,655,616

 

 

 

1,662,061

 

Investments in Joint Venture

 

 

100,115

 

 

 

85,391

 

 

 

89,111

 

Operating Lease Right of Use Asset

 

 

22,068

 

 

 

22,126

 

 

 

20,759

 

Notes Receivable

 

 

-

 

 

 

8,501

 

 

 

7,382

 

Goodwill and Intangibles

 

 

490,180

 

 

 

469,491

 

 

 

466,043

 

Other Assets

 

 

16,187

 

 

 

15,150

 

 

 

14,143

 

 

 

$

2,917,094

 

 

$

2,809,149

 

 

$

2,781,002

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities –

 

 

 

 

 

 

Accounts Payable

 

$

113,737

 

 

$

113,722

 

 

$

110,408

 

Accrued Liabilities

 

 

90,815

 

 

 

92,863

 

 

 

86,472

 

Income Taxes Payable

 

 

1,778

 

 

 

-

 

 

 

-

 

Current Portion of Long-Term Debt

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

Operating Lease Liabilities

 

 

8,205

 

 

 

6,736

 

 

 

6,009

 

Total Current Liabilities

 

 

224,535

 

 

 

223,321

 

 

 

212,889

 

Long-term Liabilities

 

 

62,590

 

 

 

64,159

 

 

 

66,543

 

Bank Credit Facility

 

 

162,000

 

 

 

200,000

 

 

 

157,000

 

Bank Term Loan

 

 

177,500

 

 

 

187,500

 

 

 

182,500

 

2.500% Senior Unsecured Notes due 2031

 

 

740,165

 

 

 

738,898

 

 

 

739,532

 

Deferred Income Taxes

 

 

243,670

 

 

 

238,567

 

 

 

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 35,031,889; 37,064,662 and

35,768,376 Shares, respectively

 

 

350

 

 

 

371

 

 

 

358

 

Capital in Excess of Par Value

 

 

-

 

 

 

-

 

 

 

-

 

Accumulated Other Comprehensive Losses

 

 

(3,451

)

 

 

(3,128

)

 

 

(3,547

)

Retained Earnings

 

 

1,309,735

 

 

 

1,159,461

 

 

 

1,188,883

 

Total Stockholders’ Equity

 

 

1,306,634

 

 

 

1,156,704

 

 

 

1,185,694

 

 

 

$

2,917,094

 

 

$

2,809,149

 

 

$

2,781,002

 

 

*From audited financial statements

 

Attachment 5

 

Eagle Materials Inc.

Depreciation, Depletion and Amortization by Lines of Business

(dollars in thousands)

(unaudited)

 

The following table presents Depreciation, Depletion and Amortization by lines of business for the quarters ended September 30, 2023 and 2022:

 

 

Depreciation, Depletion and Amortization

 

Quarter Ended

September 30,

 

2023

 

2022

 

 

 

 

Cement

$

22,187

 

$

20,258

Concrete and Aggregates

 

4,962

 

 

4,351

Gypsum Wallboard

 

5,548

 

 

5,589

Recycled Paperboard

 

3,708

 

 

3,742

Corporate and Other

 

792

 

 

705

 

$

37,197

 

$

34,645

 

 

 

 

Attachment 6

Eagle Materials Inc.

Reconciliation of Non-GAAP Financial Measures

(unaudited)

(dollars in thousands, other than earnings per share amounts, and number of shares in thousands)

Adjusted Earnings per Diluted Share (Adjusted EPS)

Adjusted EPS is a non-GAAP financial measure and represents net earnings per diluted share excluding the impacts from non-routine items, such as purchase accounting (Non-routine Items). Management uses measures of earnings excluding the impact of Non-routine Items as a performance measure in order to compare operating results of the Company from period to period and for purposes of its budgeting and planning processes. Although management believes that Adjusted EPS is useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation, or as a substitute for, earnings per diluted share and the related financial information prepared in accordance with GAAP. In addition, our presentation of Adjusted EPS may not be the same as similarly titled measures reported by other companies, limiting its usefulness as a comparative measure. The following shows the calculation of Adjusted EPS and reconciles Adjusted EPS to net earnings per diluted share in accordance with GAAP for the quarters ended September 30, 2023 and 2022:

 

 

Quarter Ended

September 30,

 

 

2023

 

 

 

2022

 

 

 

 

 

Net Earnings, as reported

$

150,553

 

 

$

138,995

 

 

 

 

 

Non-routine Items:

 

 

 

Purchase accounting 1

$

1,107

 

 

$

867

 

Total Non-routine Items before Taxes

$

1,107

 

 

$

867

 

Tax Impact on Non-routine Items

 

(249

)

 

 

(192

)

After-tax Impact of Non-routine Items

$

858

 

 

$

675

 

 

 

 

 

Adjusted Net Earnings

$

151,411

 

 

$

139,670

 

 

 

 

 

Diluted Average Shares Outstanding

 

35,337

 

 

 

37,367

 

 

 

 

 

 

 

 

 

Net earnings per diluted share, as reported

$

4.26

 

 

$

3.72

 

Adjusted net earnings per diluted share (Adjusted EPS)

$

4.28

 

 

$

3.74

 

 

1 Represents the impact of purchase accounting on inventory costs and related business development costs

Attachment 6, continued

Eagle Materials Inc.

Reconciliation of Non-GAAP Financial Measures

(dollars in thousands)

(unaudited)

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 ended September 30, 2023 and 2022, and the trailing twelve months ended September 30, 2023 and March 31, 2023:

 

 

 

Quarter Ended

 

 

Six Months Ended

 

September 30,

 

September 30,

 

2023

2022

 

2023

2022

 

 

 

 

 

 

Net Earnings, as reported

$

150,553

$

138,995

 

$

271,402

$

244,000

Income Tax Expense

 

43,636

 

39,529

 

 

78,236

 

70,703

Interest Expense

 

10,204

 

8,580

 

 

22,443

 

15,910

Depreciation, Depletion and Amortization

 

37,197

 

34,645

 

 

73,879

 

68,874

EBITDA

$

241,590

$

221,749

 

$

445,960

$

399,487

Purchase accounting 1

 

1,107

 

867

 

 

4,568

 

2,067

Stock-based Compensation

 

4,542

 

4,402

 

 

10,999

 

9,548

Adjusted EBITDA

$

247,239

$

227,018

 

$

461,527

$

411,102

 

 

Twelve Months Ended

 

September 30,

March 31,

 

2023

2023

 

 

 

Net Earnings, as reported

$

488,942

$

461,540

Income Tax Expense

 

134,586

 

127,053

Interest Expense

 

41,704

 

35,171

Depreciation, Depletion and Amortization

 

143,559

 

138,554

EBITDA

$

808,791

$

762,318

Purchase accounting 1

 

4,568

 

2,067

Stock-based Compensation

 

18,606

 

17,155

Adjusted EBITDA

$

831,965

$

781,540

 

1 Represents the impact of purchase accounting on inventory costs and related business development costs

Attachment 7

Eagle Materials Inc.

Reconciliation of Net Debt to Adjusted EBITDA

(unaudited)

(dollars in thousands)

GAAP does not define “Net Debt” and it should not be considered as an alternative to cash flow or liquidity measures 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 a metric of its current 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.

 

 

As of

As of

 

September 30, 2023

March 31, 2023

 

 

 

Total debt, excluding debt issuance costs

$

1,099,500

$

1,099,500

Cash and cash equivalents

 

47,321

 

15,242

Net Debt

$

1,052,179

$

1,084,258

 

 

 

Trailing Twelve Months Adjusted EBITDA

$

831,965

$

781,540

Net Debt to Adjusted EBITDA

1.3x

1.4x

 

Contacts

For additional information, contact at 214-432-2000.



Michael R. Haack

President and Chief Executive Officer



D. Craig Kesler

Executive Vice President and Chief Financial Officer



Alex Haddock

Vice President, Investor Relations, Strategy and Corporate Development

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SanAnselmo.com & California Media Partners, LLC. All rights reserved.