8-K
EAGLE MATERIALS INC false 0000918646 0000918646 2022-07-28 2022-07-28

 

 

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): July 28, 2022

 

 

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 July 28, 2022, Eagle Materials Inc., a Delaware corporation (“Eagle”), announced its results of operations for the quarter ended June 30, 2022. 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 July 28, 2022 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: July 28, 2022

EX-99.1

EXHIBIT 99.1

 

     LOGO   

        Contact at  214-432-2000        

Michael R. Haack

President & CEO

D. Craig Kesler

Executive Vice President & CFO

Robert S. Stewart

Executive Vice President

 

 

News For Immediate Release

EAGLE MATERIALS REPORTS FIRST QUARTER RESULTS

DALLAS, TX (July 28, 2022) Eagle Materials Inc. (NYSE: EXP) today reported financial results for the first quarter of fiscal 2023 ended June 30, 2022. Notable items for the quarter are highlighted below. (Unless otherwise noted, all comparisons are with the prior year’s fiscal first quarter):

First Quarter Fiscal 2023 Highlights

 

   

Record Revenue of $561.4 million, up 18%

 

   

Record Net Earnings of $105.0 million, up 10%

 

   

Record Net Earnings per diluted share of $2.75, up 22%

 

   

Adjusted net earnings per share (Adjusted EPS) of $2.82, up 25%

 

   

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

 

   

Adjusted EBITDA of $184.1 million, up 13%

 

   

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 approximately 884,000 shares of Eagle common stock for $110 million

Commenting on the first quarter results, Michael Haack, President and CEO, said, “Our results this quarter exceeded our expectations, as our portfolio of businesses performed well, and we executed on the opportunities available to us. We achieved record revenue of $561 million and adjusted EPS of $2.82, and we expanded gross margins by 30 bps to 26.9%. Construction activity remained healthy across our markets, and we realized broad pricing gains across our portfolio again this quarter.”

Mr. Haack continued, “In our heavy materials business, we implemented a second round of cement price increases in early July given the strong demand environment and our sold-out position. Looking ahead, we expect demand for cement to remain strong with infrastructure investment increasing as federal funding from the Infrastructure Investment and Jobs Act begins in earnest this fiscal year. In our light materials sector, wallboard shipments and orders remain strong, but we recognize quantitative tightening will likely have an impact on residential construction activity in the future. In the near term, we expect record home construction backlogs to support product demand this year. With Eagle’s excellent balance sheet, the favorable geographic positioning of our operations and consistent execution of our operating strategies, we are poised for a strong fiscal 2023.”


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 $346.1 million, a 10% improvement. Heavy Materials operating earnings increased slightly to $68.1 million primarily because of higher Cement sales prices partially offset by a decrease in cement sales volume and the effects of the equipment downtime experienced by our Joint Venture as discussed below.

Cement revenue, including Joint Venture and intersegment revenue, was up 5% to $284.5 million. Operating earnings were down slightly to $62.3 million reflecting higher energy and maintenance costs partially offset by improved Cement sales prices. Profitability at our Joint Venture was also negatively affected by extended equipment downtime that reduced cement production in June. The issues causing the downtime were remedied in late July and the equipment is back on-line. The average net Cement sales price for the quarter increased 10% to $127.82 per ton. Cement sales volume for the quarter decreased 2% to 2.0 million tons, reflecting our sold-out position and the delay of some larger projects due to weather in the central part of the US.

Concrete and Aggregates revenue increased 38% to $61.6 million, reflecting improved Concrete and Aggregates prices and the contribution of approximately $11 million from a recently acquired business in northern Colorado. First quarter operating earnings increased 7% to $5.7 million, reflecting higher Concrete and Aggregates net sales prices.

Light Materials: Gypsum Wallboard and Paperboard

Revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, increased 30% to $247.9 million, primarily because of higher Gypsum Wallboard sales volume and prices. Gypsum Wallboard sales volume increased 5% to 798 million square feet (MMSF), while the average Gypsum Wallboard net sales price increased 24% to $218.57 per MSF.

Paperboard sales volume was flat at 84,000 tons. The average Paperboard net sales price in the quarter was $611.87 per ton, up 23%, consistent with the pricing provisions in our long-term sales agreements.

Operating earnings were $87.9 million in the Light Materials sector, an increase of 32%, reflecting higher Gypsum 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 the Company for making operating decisions and assessing performance.

 

2


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 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 Gypsum 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, July 28, 2022. The conference call will be webcast simultaneously on the Eagle website, eaglematerials.com. A replay of the webcast and the presentation will be archived on the site for one year.

###

 

3


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 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, and 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; 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 (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; 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; 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; 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 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. Any resurgence of the COVID-19 pandemic and responses thereto may disrupt our business operations or have an adverse effect on demand for our products. These and other factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022 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    Consolidated Statement of Earnings
Attachment 2    Revenue and Earnings by Lines of Business
Attachment 3    Sales Volume, 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

 

4


Attachment 1

Eagle Materials Inc.

Consolidated Statement of Earnings

(dollars in thousands, except per share data)

(unaudited)

 

     Quarter Ended
June 30,
 
     2022     2021  

Revenue

   $ 561,387     $ 475,770  

Cost of Goods Sold

     410,521       349,259  
  

 

 

   

 

 

 

Gross Profit

     150,866       126,511  

Equity in Earnings of Unconsolidated JV

     5,098       7,970  

Corporate General and Administrative Expenses

     (11,820     (9,468

Other Non-Operating Income

     (635     3,678  
  

 

 

   

 

 

 

Earnings before Interest and Income Taxes

     143,509       128,691  

Interest Expense, net

     (7,330     (6,972
  

 

 

   

 

 

 

Earnings before Income Taxes

     136,179       121,719  

Income Tax Expense

     (31,174     (26,392
  

 

 

   

 

 

 

Net Earnings

   $ 105,005     $ 95,327  
  

 

 

   

 

 

 

NET EARNINGS PER SHARE

    

Basic

   $ 2.76     $ 2.27  
  

 

 

   

 

 

 

Diluted

   $ 2.75     $ 2.25  
  

 

 

   

 

 

 

AVERAGE SHARES OUTSTANDING

    

Basic

     37,982,580       42,028,619  
  

 

 

   

 

 

 

Diluted

     38,222,949       42,437,366  
  

 

 

   

 

 

 

 

5


Attachment 2

Eagle Materials Inc.

Revenue and Earnings by Lines of Business

(dollars in thousands)

(unaudited)

 

     Quarter Ended
June 30,
 
     2022     2021  

Revenue*

    

Heavy Materials:

    

Cement (Wholly Owned)

   $ 251,910     $ 239,731  

Concrete and Aggregates

     61,618       44,754  
  

 

 

   

 

 

 
     313,528       284,485  

Light Materials:

    

Gypsum Wallboard

   $ 216,327     $ 166,267  

Gypsum Paperboard

     31,532       25,018  
  

 

 

   

 

 

 
     247,859       191,285  
  

 

 

   

 

 

 

Total Revenue

   $ 561,387     $ 475,770  
  

 

 

   

 

 

 

Segment Operating Earnings

    

Heavy Materials:

    

Cement (Wholly Owned)

   $ 57,250     $ 54,577  

Cement (Joint Venture)

     5,098       7,970  

Concrete and Aggregates

     5,732       5,344  
  

 

 

   

 

 

 
     68,080       67,891  

Light Materials:

    

Gypsum Wallboard

   $ 84,068     $ 63,253  

Gypsum Paperboard

     3,816       3,337  
  

 

 

   

 

 

 
     87,884       66,590  
  

 

 

   

 

 

 

Sub-total

     155,964       134,481  
  

 

 

   

 

 

 

Corporate General and Administrative Expense

     (11,820     (9,468

Other Non-Operating Income

     (635     3,678  
  

 

 

   

 

 

 

Earnings before Interest and Income Taxes

   $ 143,509     $ 128,691  
  

 

 

   

 

 

 

 

*

Excluding Intersegment and Joint Venture Revenue listed on Attachment 3

 

6


Attachment 3

Eagle Materials Inc.

Sales Volume, Net Sales Prices and Intersegment and Cement Revenue

(dollars in thousands, except per unit data)

(unaudited)

 

     Sales Volume  
     Quarter Ended
June 30,
 
     2022      2021      Change  

Cement (M Tons):

        

Wholly Owned

     1,805        1,852        -3

Joint Venture

     188        184        2
  

 

 

    

 

 

    

 

 

 
     1,993        2,036        -2

Concrete (M Cubic Yards)

     406        348        17

Aggregates (M Tons)

     795        361        120

Gypsum Wallboard (MMSFs)

     798        763        5

Paperboard (M Tons):

        

Internal

     36        36        0

External

     48        48        0
  

 

 

    

 

 

    

 

 

 
     84        84        0
     Average Net Sales Price*  
     Quarter Ended
June 30,
 
     2022      2021      Change  

Cement (Ton)

   $ 127.82      $ 116.34        10

Concrete (Cubic Yard)

   $ 128.73      $ 118.19        9

Aggregates (Ton)

   $ 11.22      $ 9.93        13

Gypsum Wallboard (MSF)

   $ 218.57      $ 176.79        24

Paperboard (Ton)

   $ 611.87      $ 498.49        23

 

*

Net of freight and delivery costs billed to customers

 

     Intersegment and Cement Revenue  
     Quarter Ended
June 30,
 
     2022      2021  

Intersegment Revenue:

     

Cement

   $ 6,291      $ 7,833  

Paperboard

     22,541        18,249  
  

 

 

    

 

 

 
   $ 28,832      $ 26,082  
  

 

 

    

 

 

 

Cement Revenue:

     

Wholly Owned

   $ 251,910      $ 239,731  

Joint Venture

     26,315        22,691  
  

 

 

    

 

 

 
   $ 278,225      $ 262,422  
  

 

 

    

 

 

 

 

7


Attachment 4

Eagle Materials Inc.

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)

 

     June 30,     March 31,  
     2022     2021     2022*  

ASSETS

      

Current Assets –

      

Cash and Cash Equivalents

   $ 68,281     $ 306,542     $ 19,416  

Restricted Cash

     —         5,000       —    

Accounts and Notes Receivable, net

     234,704       187,411       176,276  

Inventories

     233,543       217,052       236,661  

Federal Income Tax Receivable

     2,610       —         7,202  

Prepaid and Other Assets

     8,001       15,298       3,172  
  

 

 

   

 

 

   

 

 

 

Total Current Assets

     547,139       731,303       442,727  
  

 

 

   

 

 

   

 

 

 

Property, Plant and Equipment, net

     1,638,164       1,641,063       1,616,539  

Investments in Joint Venture

     81,235       76,369       80,637  

Operating Lease Right-of-Use Asset

     22,960       24,776       23,856  

Notes Receivable

     8,466       8,485       8,485  

Goodwill and Intangibles

     455,824       391,211       387,898  

Other Assets

     17,071       17,623       19,510  
  

 

 

   

 

 

   

 

 

 
   $ 2,770,859     $ 2,890,830     $ 2,579,652  
  

 

 

   

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY       

Current Liabilities –

      

Accounts Payable and Accrued Liabilities

   $ 108,578     $ 96,923     $ 113,679  

Accrued Liabilities

     88,280       74,947       86,754  

Income Taxes Payable

     24,999       11,016       —    

Operating Lease Liabilities

     6,778       6,127       7,118  
  

 

 

   

 

 

   

 

 

 

Total Current Liabilities

     228,635       189,013       207,551  
  

 

 

   

 

 

   

 

 

 

Long-term Liabilities

     63,945       73,665       67,911  

Bank Credit Facility

     181,000       —         200,000  

Bank Term Loan

     200,000       662,487       —    

2.500% Senior Unsecured Notes due 2031

     738,582       —         738,265  

4.500% Senior Unsecured Notes due 2026

     —         346,548       —    

Deferred Income Taxes

     234,916       227,785       232,369  

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 37,894,704; 42,101,619 and

38,710,929 Shares, respectively

     380       421       387  

Capital in Excess of Par Value

     —         10,035       —    

Accumulated Other Comprehensive Losses

     (3,152     (3,413     (3,175

Retained Earnings

     1,126,553       1,384,289       1,136,344  
  

 

 

   

 

 

   

 

 

 

Total Stockholders’ Equity

     1,123,781       1,391,332       1,133,556  
  

 

 

   

 

 

   

 

 

 
   $ 2,770,859     $ 2,890,830     $ 2,579,652  
  

 

 

   

 

 

   

 

 

 

 

*

From audited financial statements

 

8


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 June 30, 2022 and 2021:

 

     Depreciation, Depletion and Amortization  
     Quarter Ended
June 30,
 
     2022      2021  

Cement

   $ 20,053      $ 19,531  

Concrete and Aggregates

     4,201        2,578  

Gypsum Wallboard

     5,563        5,396  

Paperboard

     3,717        3,668  

Corporate and Other

     695        771  
  

 

 

    

 

 

 
   $ 34,229      $ 31,944  
  

 

 

    

 

 

 

 

9


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 and accelerated equity compensation (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 June 30, 2022 and 2021:

 

     Quarter Ended
June 30,
 
     2022      2021  

Net Earnings, as reported

   $ 105,005      $ 95,327  

Non-routine Items:

     

Northern Colorado purchase accounting 1

   $ 1,200      $ —    

Accelerated Equity Compensation due to executive retirements 2

     2,250        —    
  

 

 

    

 

 

 

Total Non-routine Items before Taxes

   $ 3,450      $ —    

Tax Impact on Non-routine Items

     (790      —    
  

 

 

    

 

 

 

After-tax Impact of Non-routine Items

   $ 2,660      $ —    

Adjusted Net Earnings

   $ 107,665      $ 95,327  

Diluted Average Shares Outstanding

     38,223        42,437  

Net earnings per diluted share, as reported

   $ 2.75      $ 2.25  

Adjusted net earnings per diluted share (Adjusted EPS)

   $ 2.82      $ 2.25  

 

1 

Represents the impact of purchase accounting on inventory costs

2 

Represents additional equity compensation costs associated with the retirement of two senior executives during the quarter

 

10


Attachment 6, continued

EBITDA and Adjusted EBITDA

We present Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA to provide 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. 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 June 30, 2022 and 2021:

 

     Quarter Ended
June 30,
 
     2022      2021  

Net Earnings, as reported

   $ 105,005      $ 95,327  

Income Tax Expense

     31,174        26,392  

Interest Expense

     7,330        6,972  

Depreciation, Depletion and Amortization

     34,229        31,944  
  

 

 

    

 

 

 

EBITDA

   $ 177,738      $ 160,635  

Northern Colorado purchase accounting 1

     1,200        —    

Stock-based Compensation 2

     5,146        2,456  
  

 

 

    

 

 

 

Adjusted EBITDA

   $ 184,084      $ 163,091  

 

1 

Represents the impact of purchase accounting on inventory costs

2 

The increase in stock-based compensation is due to the retirement of two senior executives during the quarter

 

11