DALLAS--(BUSINESS WIRE)-- Eagle Materials Inc. (NYSE: EXP) today reported financial results for the second quarter of fiscal 2012 ended September 30, 2011. Notable items for the quarter include:

• Revenues of $134.8 million
• Cash flow from operations of $26.4 million
• Net earnings of $6.0 million
• Diluted earnings per share of $0.14

Revenues increased 2% from the prior year reflecting improved sales volumes across most of our business lines. Operating earnings were down 6% due primarily to higher raw material costs in our gypsum wallboard segment. Operating cash flow was strong during the quarter, further strengthening our financial position. Prior year's net earnings include approximately $2.5 million, or $0.06 per diluted share, of tax and interest benefits associated with the final assessment from the IRS related to their audit of the Republic asset acquisition in tax years 2001 through 2006.

Cement, Concrete and Aggregates

Operating earnings from Cement for the second quarter were $15.1 million, a 25% increase from the same quarter a year ago. Cement revenues for the quarter, including joint venture and intersegment revenues, totaled $72.6 million, 7% greater than the same quarter last year. Cement sales volumes for the quarter were 817,000 tons, 5% above the same quarter a year ago. The average net sales price this quarter was $81.23 per ton, 1% higher than the same quarter last year.

Concrete and Aggregates reported a slight operating profit for the second quarter, down from the $0.5 million operating profit for the same quarter a year ago, primarily due to lower aggregates sales volumes and lower concrete average net sales prices.

Revenues from Concrete and Aggregates were $13.7 million for the quarter, 7% greater than the same quarter a year ago. Concrete sales volume increased 17% from the same quarter a year ago to 144,000 cubic yards. Concrete average net sales price for the quarter of $64.33 per cubic yard was 4% less than the same quarter a year ago. Aggregates sales volume of 0.8 million tons for this quarter was 3% less than the sales volume for the same quarter a year ago. The aggregates average net sales price for the quarter was $5.98 per ton, up 1% compared to last year's second quarter.

Gypsum Wallboard and Paperboard

Gypsum Wallboard and Paperboard's second quarter operating earnings of $1.5 million were down 71% compared to the same quarter last year. Lower wallboard average net sales prices and higher raw material costs were the primary driver of the quarterly earnings decline.

Gypsum Wallboard and Paperboard revenues for the second quarter totaled $72.3 million, a 2% increase from the same quarter a year ago. The revenue increase reflects higher wallboard sales volumes and higher paperboard sales prices, offset by lower gypsum wallboard average net sales prices.

The average gypsum wallboard net sales price this quarter was $92.09 per MSF, 4% less than the same quarter a year ago. Gypsum Wallboard sales volume for the quarter of 403 million square feet (MMSF) represents a 2% increase from the same quarter last year. The average Paperboard net sales price this quarter was $524.20 per ton, 11% higher than the same quarter a year ago. Paperboard sales volumes for the quarter were 60,000 tons, 3% lower than the same quarter a year ago.

Details of Financial Results

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.

EXP's senior management will conduct a conference call to discuss the financial results, forward-looking information and other matters at 2:00 p.m. Eastern Time (1:00 p.m. Central Time) on Thursday, October 27, 2011. The conference call will be webcast simultaneously on the EXP 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 EXP at 214-432-2000.

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 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; availability of raw materials; changes in energy costs including, without limitation, natural gas and oil; changes in the cost and availability of transportation; unexpected operational difficulties; inability to timely execute announced capacity expansions; governmental regulation and changes in governmental and public policy (including, without limitation, climate change regulation); changes in economic conditions specific to any one or more of the Company's markets; competition; announced increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction; general economic conditions; and interest rates. For example, increases in interest rates, decreases in demand for construction materials or increases in the cost of energy (including, without limitation, natural gas and oil) could affect the revenues and operating earnings of our operations. In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company's result of operations. These and other factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2011 and in its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2011. 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) Summary of Consolidated Earnings
(2) Revenues and Earnings by Lines of Business (Quarter and Six 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 September 30,								Six Months Ended September 30,
		2011				2010				2011				2010
Revenues		$	134,819			$	132,135			$	254,626			$	262,929
Cost of Goods Sold			126,102				118,586				238,536				232,949
Gross Profit			8,717				13,549				16,090				29,980
Equity in Earnings of Unconsolidated JV			7,936				4,160				13,384				10,672
Other Operating Income			115				175				36				892
Operating Earnings			16,768				17,884				29,510				41,544
Corporate General and Administrative Expense			(4,472	)			(4,415	)			(8,590	)			(8,118	)
Earnings before Interest and Income Taxes			12,296				13,469				20,920				33,426
Interest Expense, Net			(4,557	)			(3,148	)			(9,142	)			(8,438	)
Earnings before Income Taxes			7,739				10,321				11,778				24,988
Income Tax Expense			(1,714	)			(691	)			(2,696	)			(4,831	)
Net Earnings		$	6,025			$	9,630			$	9,082			$	20,157
EARNINGS PER SHARE
Basic		$	0.14			$	0.22			$	0.21			$	0.46
Diluted		$	0.14			$	0.22			$	0.20			$	0.46
AVERAGE SHARES OUTSTANDING
Basic			44,200,291				43,855,326				44,190,220				43,843,912
Diluted			44,325,277				44,169,251				44,433,809				44,200,303

Eagle Materials Inc.
Attachment 2
Eagle Materials Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
		Quarter Ended September 30,							Six Months Ended September 30,
		2011				2010			2011				2010
Revenues*
Gypsum Wallboard and Paperboard:
Gypsum Wallboard		$	50,981			$	50,314		$	102,323			$	108,514
Gypsum Paperboard			21,285				20,347			40,279				39,108
			72,266				70,661			142,602				147,622
Cement (Wholly Owned)			48,892				48,721			86,603				91,351
Concrete and Aggregates			13,661				12,753			25,421				23,956
Total		$	134,819			$	132,135		$	254,626			$	262,929
Operating Earnings
Gypsum Wallboard and Paperboard:
Gypsum Wallboard		$	(2,540	)		$	1,295		$	(1,302	)		$	6,496
Gypsum Paperboard			4,038				3,833			7,068				7,627
			1,498				5,128			5,766				14,123
Cement:
Wholly Owned			7,175				7,967			10,515				15,088
Joint Venture			7,936				4,160			13,384				10,672
			15,111				12,127			23,899				25,760
Concrete and Aggregates			44				454			(191	)			769
Other, net			115				175			36				892
Total Operating Earnings			16,768				17,884			29,510				41,544
* 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 September 30,							Six Months Ended September 30,
		2011		2010		Change			2011		2010		Change
Gypsum Wallboard (MMSF's)		403		397		+2	%		815		851		-4	%
Cement (M Tons):
Wholly Owned		588		576		+2	%		1,037		1,074		-3	%
Joint Venture		229		199		+15	%		454		403		+13	%
		817		775		+5	%		1,491		1,477		+1	%
Paperboard (M Tons):
Internal		18		17		+6	%		35		36		-3	%
External		42		45		-7	%		82		85		-4	%
		60		62		-3	%		117		121		-3	%
Concrete (M Cubic Yards)		144		123		+17	%		280		240		+17	%
Aggregates (M Tons)		771		794		-3	%		1,383		1,421		-3	%

		Average Net Sales Price*
		Quarter Ended September 30,									Six Months Ended September 30,
		2011			2010			Change			2011			2010			Change
Gypsum Wallboard (MSF)		$	92.09		$	96.08		-4	%		$	91.05		$	97.18		-6	%
Cement (Ton)		$	81.23		$	80.03		+1	%		$	81.24		$	80.67		+1	%
Paperboard (Ton)		$	524.20		$	474.29		+11	%		$	515.21		$	477.82		+8	%
Concrete (Cubic Yard)		$	64.33		$	67.01		-4	%		$	62.73		$	65.54		-4	%
Aggregates (Ton)		$	5.98		$	5.90		+1	%		$	5.94		$	5.97		-1	%
*Net of freight and delivery costs billed to customers.

		Intersegment and Cement Revenues
		Quarter Ended September 30,						Six Months Ended September 30,
		2011			2010			2011			2010
Intersegment Revenues:
Cement		$	1,202		$	1,164		$	2,241		$	2,156
Paperboard			10,452			8,857			20,134			18,820
Concrete and Aggregates			221			187			361			307
		$	11,875		$	10,208		$	22,736		$	21,283
Cement Revenues:
Wholly Owned		$	48,892		$	48,721		$	86,603		$	91,351
Joint Venture			22,460			17,928			43,854			36,768
		$	71,352		$	66,649		$	130,457		$	128,119

Eagle Materials Inc.
Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
		September 30,								March 31,
		2011				2010				2011*
ASSETS
Current Assets —
Cash and Cash Equivalents		$	10,692			$	8,001			$	1,874
Accounts and Notes Receivable, net			64,447				54,744				43,855
Inventories			108,156				102,952				115,237
Federal Income Tax Receivable			6,688				-				9,088
Prepaid and Other Assets			2,856				5,132				4,572
Total Current Assets			192,839				170,829				174,626
Property, Plant and Equipment —			1,122,895				1,105,216				1,112,058
Less: Accumulated Depreciation			(536,057	)			(491,788	)			(512,228	)
Property, Plant and Equipment, net			586,838				613,428				599,830
Investments in Joint Venture			35,545				30,350				33,661
Notes Receivable			5,005				9,857				5,326
Goodwill and Intangibles			151,221				151,857				151,539
Other Assets			18,685				24,214				17,828
		$	990,133			$	1,000,535			$	982,810
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities —
Accounts Payable		$	35,285			$	31,954			$	30,339
Accrued Liabilities			42,939				42,172				40,011
Current Portion of Bank Credit Facility			-				10,000				-
Total Current Liabilities			78,224				84,126				70,350
Long-term Liabilities			38,097				40,330				37,807
Bank Credit Facility			-				-				2,000
Senior Notes			285,000				285,000				285,000
Deferred Income Taxes			127,077				124,761				128,089
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 44,899,310; 44,178,359 and
44,447,428 Shares, respectively			449				442				444
Capital in Excess of Par Value			26,882				18,066				24,859
Accumulated Other Comprehensive Losses			(2,893	)			(3,518	)			(2,893	)
Retained Earnings			437,297				451,328				437,154
Total Stockholders' Equity			461,735				466,318				459,564
		$	990,133			$	1,000,535			$	982,810
*From audited financial statements.

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

Source: Eagle Materials Inc.

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