8-K
EAGLE MATERIALS INC false 0000918646 0000918646 2021-10-28 2021-10-28

 

 

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): October 28, 2021

 

 

Eagle Materials Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

 

Delaware   1-12984   75-2520779

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

5960 Berkshire Ln., Suite 900

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

Symbol(s)

 

Name of each exchange

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 October 28, 2021, Eagle Materials Inc., a Delaware corporation (“Eagle”), announced its results of operations for the quarter ended September 30, 2021. 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
Number

  

Description

99.1    Earnings Press Release dated October 28, 2021 issued by Eagle Materials Inc. (announcing quarterly 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
  Executive Vice President – Finance and Administration and Chief Financial Officer

Date: October 28, 2021

EX-99.1

EXHIBIT 99.1

 

LOGO

 

Contact at 214-432-2000

Michael R. Haack

President and CEO

D. Craig Kesler

Executive Vice President & CFO

Robert S. Stewart

Executive Vice President

 

 

 

News For Immediate Release

EAGLE MATERIALS REPORTS STRONG SECOND QUARTER RESULTS

DALLAS, TX (October 28, 2021) Eagle Materials Inc. (NYSE: EXP) today reported financial results for the second quarter of fiscal 2022 ended September 30, 2021. 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 2022 Highlights

 

   

Record revenue of $510 million, up 14%

 

   

Record net earnings per share of $2.46, up 6%

 

   

Adjusted net earnings per share from continuing operations (Adjusted EPS) of $2.73, up 26%

 

   

Adjusted EPS is a non-GAAP financial measure calculated by excluding non-routine items (including certain non-cash expenses) in the manner described in Attachment 6

 

   

Issued $750 million of 2.50% senior notes due July 2031

 

   

Redeemed $350 million of 4.50% senior notes due August 2026

 

   

Repurchased 1.3 million shares of Eagle’s common stock for $186 million

Commenting on the second quarter results, Michael Haack, President and CEO, said, “Eagle achieved new quarterly records for revenue and earnings per share during the quarter. Despite price inflation in energy and recycled paper, our gross profit margins improved 310 basis points from the prior year to 30.5%. These results reflect continued strength in underlying market conditions and strong execution by our team. Our recent pricing actions across much of our footprint will continue to help offset increases in certain input costs, as will our consistent focus on driving operational efficiencies.”

Mr. Haack continued, “During the quarter, we completed the refinancing of Eagle’s capital structure by issuing $750 million of 10-year senior notes with an interest rate of 2.50% and redeeming previously issued debt with a higher interest rate. We also returned nearly $200 million to shareholders through our quarterly cash dividend and the repurchase of 1.3 million shares of our common stock. We are well-positioned for a strong second half of fiscal 2022 and remain committed to delivering sustainable growth and superior shareholder value.”

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 $341.1 million, a 5% improvement. Heavy Materials operating earnings increased 13% to $96.3 million primarily because of improved Cement sales prices.    


Cement revenue for the quarter, including Joint Venture and intersegment revenue, was up 4% to $288.3 million, and operating earnings were a record $88.8 million, up 11%. These increases reflect improved Cement net sales prices and sales volume. The average net sales price for the quarter was up 6% to $117.78 per ton. Cement sales volume for the quarter was a record 2.2 million tons, up 1%.

Concrete and Aggregates revenue increased 14% to $52.8 million, and operating earnings increased 43% to $7.5 million. The improvements reflect higher sales prices and sales volume.

Light Materials: Gypsum Wallboard and Paperboard

Revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, increased 28% to $200.8 million, reflecting higher Wallboard sales volume and prices. Gypsum Wallboard sales volume increased 2% to 736 million square feet (MMSF), while the average Gypsum Wallboard net sales price increased 33% to $190.93 per MSF.

Paperboard sales volume for the quarter was flat from the prior year at 87,000 tons. The average Paperboard net sales price was $524.54 per ton, up 2%, consistent with the pricing provisions in our long-term sales agreements.    

Operating earnings were $67.3 million in the sector, an increase of 39%, reflecting increased Wallboard sales volume and pricing, partially offset by higher 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.

On September 18, 2020, the Company sold its Oil and Gas Proppants business to Smart Sand, Inc. The prior-year financial results of the Oil and Gas Proppants segment have been classified as Discontinued Operations on the Consolidated Statement of Earnings. The assets and liabilities of the Oil and Gas Proppants segment have been reflected on separate lines for Discontinued Operations on the Consolidated Balance Sheet.


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 28, 2021. 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 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 businesses; 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 the costs of energy, including, without limitation, natural gas, coal and oil, and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (such as fluctuations in 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; fluctuations in or changes in the nature of activity in the oil and gas industry; 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 specific to any one or more of the Company’s markets; 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; announced 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; 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; 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) and the cost of our raw materials could 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, 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 economic conditions, capital and financial markets. The COVID-19 pandemic and responses thereto may disrupt our business and are likely to have an adverse effect on demand for our products, attributable to, among other things, reductions in consumer spending, increases in unemployment and decreases in revenues and construction budgets of state or local governments. These and other factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2021 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.

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

Robert S. Stewart

Executive Vice President, Strategy, Corporate Development and Communications

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 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,
 
     2021     2020     2021     2020  

Revenue

   $ 509,694     $ 447,684     $ 985,464     $ 874,673  

Cost of Goods Sold

     354,353       324,835       703,612       649,527  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross Profit

     155,341       122,849       281,852       225,146  

Equity in Earnings of Unconsolidated JV

     8,260       10,577       16,230       18,373  

Corporate General and Administrative Expenses

     (10,667     (11,109     (20,135     (28,898

Premium Paid on Early Retirement of Senior Notes

     (8,407     —         (8,407     —    

Gain on Sale of Businesses

     —         —         —         51,973  

Other Non-Operating (Loss) Income

     (944     (90     2,734       (399
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from Continuing Operations before Interest and Income Taxes

     143,583       122,227       272,274       266,195  

Interest Expense, net

     (12,268     (12,556     (19,240     (26,597
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from Continuing Operations before Income Taxes

     131,315       109,671       253,034       239,598  

Income Tax Expense

     (29,190     (19,800     (55,582     (52,636
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from Continuing Operations

   $ 102,125     $ 89,871     $ 197,452     $ 186,962  

Gain from Discontinued Operations, net of tax

     —         6,163       —         5,278  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Earnings

   $ 102,125     $ 96,034     $ 197,452     $ 192,240  
  

 

 

   

 

 

   

 

 

   

 

 

 

BASIC EARNINGS PER SHARE

        

Continuing Operations

   $ 2.48     $ 2.17     $ 4.74     $ 4.51  

Discontinued Operations

   $ —       $ 0.15     $ —       $ 0.13  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Earnings

   $ 2.48     $ 2.32     $ 4.74     $ 4.64  
  

 

 

   

 

 

   

 

 

   

 

 

 

DILUTED EARNINGS PER SHARE

        

Continuing Operations

   $ 2.46     $ 2.16     $ 4.70     $ 4.49  

Discontinued Operations

   $ —       $ 0.15     $ —       $ 0.13  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Earnings

   $ 2.46     $ 2.31     $ 4.70     $ 4.62  
  

 

 

   

 

 

   

 

 

   

 

 

 

AVERAGE SHARES OUTSTANDING

        

Basic

     41,222,161       41,450,013       41,623,187       41,430,511  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     41,594,733       41,649,319       42,013,847       41,606,401  
  

 

 

   

 

 

   

 

 

   

 

 

 


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,
 
     2021     2020     2021     2020  

Revenue*

        

Heavy Materials:

        

Cement (Wholly Owned)

   $ 256,175     $ 244,602     $ 495,906     $ 474,682  

Concrete and Aggregates

     52,750       46,300       97,504       90,384  
  

 

 

   

 

 

   

 

 

   

 

 

 
     308,925       290,902       593,410       565,066  

Light Materials:

        

Gypsum Wallboard

     172,985       131,210       339,252       261,360  

Gypsum Paperboard

     27,784       25,572       52,802       48,247  
  

 

 

   

 

 

   

 

 

   

 

 

 
     200,769       156,782       392,054       309,607  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenue

   $ 509,694     $ 447,684     $ 985,464     $ 874,673  
  

 

 

   

 

 

   

 

 

   

 

 

 

Segment Operating Earnings

        

Heavy Materials:

        

Cement (Wholly Owned)

   $ 80,490     $ 69,336     $ 135,067     $ 121,995  

Cement (Joint Venture)

     8,260       10,577       16,230       18,373  

Concrete and Aggregates

     7,539       5,255       12,883       10,673  
  

 

 

   

 

 

   

 

 

   

 

 

 
     96,289       85,168       164,180       151,041  

Light Materials:

        

Gypsum Wallboard

     66,331       37,606       129,584       78,931  

Gypsum Paperboard

     981       10,652       4,318       13,547  
  

 

 

   

 

 

   

 

 

   

 

 

 
     67,312       48,258       133,902       92,478  

Other Operations

     —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Sub-total

     163,601       133,426       298,082       243,519  

Corporate General and Administrative Expense

     (10,667     (11,109     (20,135     (28,898

Premium Paid on Early Retirement of Senior Notes

     (8,407     —         (8,407     —    

Gain on Sale of Businesses

     —         —         —         51,973  

Other Non-Operating (Loss) Income

     (944     (90     2,734       (399
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from Continuing Operations before Interest and Income Taxes

   $ 143,583     $ 122,227     $ 272,274     $ 266,195  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

*

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

(unaudited)

 

     Sales Volume  
     Quarter Ended
September 30,
    Six Months Ended
September 30,
 
     2021      2020      Change     2021      2020      Change  

Cement (M Tons):

                

Wholly Owned

     1,983        1,947        +2     3,835        3,813        +1

Joint Venture

     215        233        -8     399        452        -12
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
     2,198        2,180        +1     4,234        4,265        -1

Concrete (M Cubic Yards)

     398        357        +11     746        705        +6

Aggregates (M Tons)

     481        475        +1     842        950        -11

Gypsum Wallboard (MMSFs)

     736        720        +2     1,499        1,424        +5

Paperboard (M Tons):

                

Internal

     37        39        -5     73        69        +6

External

     50        48        +4     98        95        +3
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
     87        87        0     171        164        +4

 

     Average Net Sales Price*  
     Quarter Ended
September 30,
    Six Months Ended
September 30,
 
     2021      2020      Change     2021      2020      Change  

Cement (Ton)

   $ 117.78      $ 111.59        +6   $ 117.09      $ 110.38        +6

Concrete (Cubic Yard)

   $ 120.15      $ 116.55        +3   $ 119.23      $ 115.10        +4

Aggregates (Ton)

   $ 10.40      $ 10.02        +4   $ 10.20      $ 9.90        +3

Gypsum Wallboard (MSF)

   $ 190.93      $ 143.41        +33   $ 183.73      $ 144.83        +27

Paperboard (Ton)

   $ 524.54      $ 513.11        +2   $ 511.76      $ 489.13        +5

 

*

Net of freight and delivery costs billed to customers.

 

     Intersegment and Cement Revenue  
     Quarter Ended
September 30,
     Six Months Ended
September 30,
 
     2021      2020      2021      2020  

Intersegment Revenue:

           

Cement

   $ 5,223      $ 6,267      $ 13,056      $ 12,298  

Concrete and Aggregates

     —          —          —          106  

Paperboard

     20,014        20,499        38,263        34,568  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 25,237      $ 26,766      $ 51,319      $ 46,972  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cement Revenue:

           

Wholly Owned

   $ 256,175      $ 244,602      $ 495,906      $ 474,682  

Joint Venture

     26,926        27,193        49,617        52,493  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 283,101      $ 271,795      $ 545,523      $ 527,175  
  

 

 

    

 

 

    

 

 

    

 

 

 


Attachment 4

 

Eagle Materials Inc.

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)

 

     September 30,     March 31,  
     2021     2020     2021*  

ASSETS

      

Current Assets –

      

Cash and Cash Equivalents

   $ 45,214     $ 200,858     $ 263,520  

Restricted Cash

     —         5,000       5,000  

Accounts and Notes Receivable, net

     196,664       177,138       147,133  

Inventories

     203,745       227,106       235,749  

Federal Income Tax Receivable

     17,954       28,671       2,838  

Prepaid and Other Assets

     8,534       9,634       7,449  
  

 

 

   

 

 

   

 

 

 

Total Current Assets

     472,111       648,407       661,689  
  

 

 

   

 

 

   

 

 

 

Property, Plant and Equipment, net

     1,629,133       1,706,200       1,659,100  

Investments in Joint Venture

     77,628       74,331       75,399  

Operating Lease Right of Use Asset

     25,127       28,139       25,811  

Notes Receivable

     8,485       8,287       8,419  

Goodwill and Intangibles

     390,107       394,524       392,315  

Other Assets

     17,237       11,395       15,948  
  

 

 

   

 

 

   

 

 

 
   $ 2,619,828     $ 2,871,283     $ 2,838,681  
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

      

Current Liabilities –

      

Accounts Payable and Accrued Liabilities

   $ 181,617     $ 156,275     $ 163,011  

Operating Lease Liabilities

     7,028       6,810       6,343  
  

 

 

   

 

 

   

 

 

 

Total Current Liabilities

     188,645       163,085       169,354  
  

 

 

   

 

 

   

 

 

 

Long-term Liabilities

     76,961       79,005       75,735  

Bank Credit Facility

     75,000       245,000       —    

Bank Term Loan

     —         661,621       662,186  

2.500% Senior Unsecured Notes due 2031

     737,632       —         —    

4.500% Senior Unsecured Notes due 2026

     —         346,095       346,430  

Deferred Income Taxes

     234,281       208,446       225,986  

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 40,913,931; 41,816,942 and 42,370,878 Shares, respectively

     409       418       424  

Capital in Excess of Par Value

     —         18,584       62,497  

Accumulated Other Comprehensive Losses

     (3,386     (3,276     (3,440

Retained Earnings

     1,310,286       1,152,305       1,299,509  
  

 

 

   

 

 

   

 

 

 

Total Stockholders’ Equity

     1,307,309       1,168,031       1,358,990  
  

 

 

   

 

 

   

 

 

 
   $ 2,619,828     $ 2,871,283     $ 2,838,681  
  

 

 

   

 

 

   

 

 

 

 

*

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, 2021 and 2020:

 

     Depreciation, Depletion and Amortization  
     Quarter Ended
September 30,
 
     2021      2020  

Cement

   $ 20,019      $ 19,258  

Concrete and Aggregates

     2,470        2,698  

Gypsum Wallboard

     5,484        5,661  

Paperboard

     3,663        3,344  

Corporate and Other

     704        1,201  
  

 

 

    

 

 

 
   $ 32,340      $ 32,162  
  

 

 

    

 

 

 


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 earnings from continuing operations per diluted share excluding the impacts from non-routine items, such as the loss on redemption of bonds, the write-off of debt issuance costs and other items described further below (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 earnings per diluted share in accordance with GAAP for the quarters ended September 30, 2021 and 2020:

 

     Quarter Ended
September 30,
 
     2021     2020  

Net Earnings, as reported

   $ 102,125     $ 96,034  

Non-routine Items:

    

Premium Paid on Early Retirement of Senior Notes 1

   $ 8,407     $ —    

Write-off of Debt Issuance Costs 2

     6,101       —    

Gain from Discontinued Operations 3

     —         (8,223
  

 

 

   

 

 

 

Total Non-routine Items before Taxes

   $ 14,508     $ (8,223

Tax Impact on Non-routine Items

     (3,221     2,060  
  

 

 

   

 

 

 

After-tax Impact of Non-routine Items

   $ 11,287     $ (6,163

Adjusted Net Earnings from Continuing Operations

   $ 113,412     $ 89,871  

Diluted Average Shares Outstanding

     41,595       41,649  

Net earnings per diluted share, as reported

   $ 2.46     $ 2.31  

Adjusted net earnings per diluted share from Continuing Operations

   $ 2.73     $ 2.16  

 

1 

Represents the loss on the early redemption of our 4.50% senior notes due 2026

2 

Represents the write-off of debt issuance costs associated with the debt instruments retired during the quarter, including the 4.50% senior notes due 2026 and the bank term loan recorded in Interest Expense, net

3 

Represents the earnings from the Oil and Gas Proppants business sold in September 2020