8-K
EAGLE MATERIALS INC false 0000918646 0000918646 2022-10-26 2022-10-26

 

 

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 26, 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 October 26, 2022, Eagle Materials Inc., a Delaware corporation (“Eagle”), announced its results of operations for the quarter ended September 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 October 26, 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: October 26, 2022

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 RECORD SECOND QUARTER RESULTS

DALLAS, TX (October 26, 2022) Eagle Materials Inc. (NYSE: EXP) today reported financial results for the second quarter of fiscal 2023 ended September 30, 2022. 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 2023 Highlights

 

   

Record Revenue of $605 million, up 19%

 

   

Record Net Earnings of $139 million, up 36%, and Net Earnings per share of $3.72, up 51%

 

   

Prior year’s Net Earnings were affected by a Loss on Early Retirement of Senior Notes and the write-off of related debt issuance costs of $11.2 million, or $0.27 per share

 

   

Adjusted EBITDA of $227 million, up 21%

 

   

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 840,000 shares of Eagle’s common stock for $101 million

Commenting on the results, Michael Haack, President and CEO, said, “At this unique time in the US markets, we are pleased to report second quarter results that once again exceeded our expectations and set quarterly records, with price increases across each business line more than offsetting cost inflation pressures. We generated record revenue of $605 million and record EPS of $3.72, and we expanded gross margins by 160 bps to 32.1%. Construction activity remained healthy across our markets, and utilization rates remained high across our network. Cashflow from operations increased 18%, to $175.6 million.    

During the quarter, we continued to drive shareholder value by prudently investing in strategic growth and returning capital to shareholders. We completed two investments: a cement distribution terminal in Nashville, Tennessee, which expands and improves the resilience of our cement geographic footprint in a strong and growing southeastern market, and an aggregates asset contiguous with our existing northern Nevada operation. We also returned $110 million of cash to shareholders through share repurchases and dividends, bringing total cash returned to shareholders to $230 million in the first half of the year.

Mr. Haack continued, “In our heavy materials business, as demand remained strong and our operations remained virtually sold-out, we implemented a second round of cement price increases in early July and announced the next round of price increases for early January 2023. In our light materials sector, the backlog of housing construction activity supported steady wallboard shipments and orders, but we recognize the significant increase in interest rates will


likely have an impact on residential construction activity in the future. Despite actions taken by the federal reserve to increase interest rates and possible recessionary conditions, we believe we are well-positioned in our principal markets for the second half of 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 $389.1 million, a 14% increase. Heavy Materials operating earnings were up 10% to $106.1 million, primarily because of higher Cement sales prices.    

Cement revenue for the quarter, including Joint Venture and intersegment revenue, was up 11% to $319.5 million, and operating earnings were a record $98.8 million, up 11%. These increases reflect higher Cement net sales prices partially offset by lower sales volume.    The average net sales price for the quarter was up 12% to $132.50 per ton. Cement sales volume decreased 2% to 2.1 million tons. Cement sales volume and operating earnings at our Joint Venture both declined during the quarter primarily because of extended equipment downtime, which reduced cement production. While these equipment issues were mostly resolved during the quarter, they may continue to have an impact on the Joint Venture’s results during the third quarter.

Concrete and Aggregates revenue increased 32% to $69.6 million, reflecting higher sales volume and Concrete pricing as well as the contribution of approximately $14 million from a recently acquired business in northern Colorado. Second quarter operating earnings declined 3% to $7.3 million, primarily reflecting higher input costs.

Light Materials: Gypsum Wallboard and Paperboard

Revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, increased 26% to $253.5 million, reflecting higher Wallboard sales volume and prices. Gypsum Wallboard sales volume increased 6% to 783 million square feet (MMSF), while the average Gypsum Wallboard net sales price increased 22% to $233.70 per MSF.

Paperboard sales volume for the quarter was down 2% from the prior year at 85,000 tons. The average Paperboard net sales price was $603.62 per ton, up 15%, consistent with the pricing provisions in our long-term sales agreements.    

Operating earnings in the sector were $95.3 million, an increase of 42%, 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

 

2


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 Wednesday, October 26, 2022. 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.

###

 

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; the availability and fluctuations in the cost 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, 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 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    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

 

4


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,
 
     2022     2021     2022     2021  

Revenue

   $ 605,068     $ 509,694     $ 1,166,455     $ 985,464  

Cost of Goods Sold

     410,829       354,353       821,350       703,612  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross Profit

     194,239       155,341       345,105       281,852  

Equity in Earnings of Unconsolidated JV

     7,156       8,260       12,254       16,230  

Corporate General and Administrative Expenses

     (13,627     (10,667     (25,447     (20,135

Loss on Early Retirement of Senior Notes

     —         (8,407     —         (8,407

Other Non-Operating (Loss) Income

     (664     (944     (1,299     2,734  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before Interest and Income Taxes

     187,104       143,583       330,613       272,274  

Interest Expense, net

     (8,580     (12,268     (15,910     (19,240
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before Income Taxes

     178,524       131,315       314,703       253,034  

Income Tax Expense

     (39,529     (29,190     (70,703     (55,582
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Earnings

   $ 138,995     $ 102,125     $ 244,000     $ 197,452  
  

 

 

   

 

 

   

 

 

   

 

 

 

NET EARNINGS PER SHARE

        

Basic

   $ 3.74     $ 2.48     $ 6.50     $ 4.74  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 3.72     $ 2.46     $ 6.46     $ 4.70  
  

 

 

   

 

 

   

 

 

   

 

 

 

AVERAGE SHARES OUTSTANDING

        

Basic

     37,140,197       41,222,161       37,559,087       41,623,187  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     37,366,879       41,594,733       37,792,613       42,013,847  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

5


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,
 
     2022     2021     2022     2021  

Revenue*

        

Heavy Materials:

        

Cement (Wholly Owned)

   $ 281,969     $ 256,175     $ 533,879     $ 495,906  

Concrete and Aggregates

     69,613       52,750       131,231       97,504  
  

 

 

   

 

 

   

 

 

   

 

 

 
     351,582       308,925       665,110       593,410  

Light Materials:

        

Gypsum Wallboard

     224,638       172,985       440,965       339,252  

Gypsum Paperboard

     28,848       27,784       60,380       52,802  
  

 

 

   

 

 

   

 

 

   

 

 

 
     253,486       200,769       501,345       392,054  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenue

   $ 605,068     $ 509,694     $  1,166,455   $ 985,464  
  

 

 

   

 

 

   

 

 

   

 

 

 

Segment Operating Earnings

        

Heavy Materials:

        

Cement (Wholly Owned)

   $ 91,623     $ 80,490     $ 148,873     $ 135,067  

Cement (Joint Venture)

     7,156       8,260       12,254       16,230  

Concrete and Aggregates

     7,276       7,539       13,008       12,883  
  

 

 

   

 

 

   

 

 

   

 

 

 
     106,055       96,289       174,135       164,180  

Light Materials:

        

Gypsum Wallboard

     89,761       66,331       173,829       129,584  

Gypsum Paperboard

     5,579       981       9,395       4,318  
  

 

 

   

 

 

   

 

 

   

 

 

 
     95,340       67,312       183,224       133,902  
  

 

 

   

 

 

   

 

 

   

 

 

 

Sub-total

     201,395       163,601       357,359       298,082  
  

 

 

   

 

 

   

 

 

   

 

 

 

Corporate General and Administrative Expense

     (13,627     (10,667     (25,447     (20,135

Loss on Early Retirement of Senior Notes

     —         (8,407     —         (8,407

Other Non-Operating (Loss) Income

     (664     (944     (1,299     2,734  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before Interest and Income Taxes

   $  187,104     $  143,583     $ 330,613     $  272,274  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

*

Excluding Intersegment and Joint Venture Revenue listed on Attachment 3

 

6


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,
 
     2022      2021      Change     2022      2021      Change  

Cement (M Tons):

                

Wholly Owned

     1,981        1,983        0     3,786        3,835        -1

Joint Venture

     164        215        -24     352        399        -12
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
     2,145        2,198        -2     4,138        4,234        -2

Concrete (M Cubic Yards)

     451        398        +13     857        746        +15

Aggregates (M Tons)

     912        481        +90     1,707        842        +103

Gypsum Wallboard (MMSFs)

     783        736        +6     1,581        1,499        +5

Paperboard (M Tons):

                

Internal

     40        37        +8     76        73        +4

External

     45        50        -10     93        98        -5
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
     85        87        -2     169        171        -1

 

     Average Net Sales Price*  
     Quarter Ended
September 30,
    Six Months Ended
September 30,
 
     2022      2021      Change     2022      2021      Change  

Cement (Ton)

   $  132.50      $  117.78        +12   $  130.24      $  117.09        +11

Concrete (Cubic Yard)

   $ 134.28      $ 120.15        +12   $ 131.65      $ 119.23        +10

Aggregates (Ton)

   $ 10.87      $ 10.40        +5   $ 11.05      $ 10.20        +8

Gypsum Wallboard (MSF)

   $ 233.70      $ 190.93        +22   $ 226.07      $ 183.73        +23

Paperboard (Ton)

   $ 603.62      $ 524.54        +15   $ 607.73      $ 511.76        +19

 

*

Net of freight and delivery costs billed to customers.

 

     Intersegment and Cement Revenue  
     Quarter Ended
September 30,
     Six Months Ended
September 30,
 
     2022      2021      2022      2021  

Intersegment Revenue:

           

Cement

   $ 12,361      $ 5,223      $ 18,652      $ 13,056  

Paperboard

     24,825        20,014        47,366        38,263  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 37,186      $ 25,237      $ 66,018      $ 51,319  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cement Revenue:

           

Wholly Owned

   $ 281,969      $ 256,175      $ 533,879      $ 495,906  

Joint Venture

     25,130        26,926        51,445        49,617  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $  307,099      $  283,101      $  585,324      $  545,523  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

7


Attachment 4

Eagle Materials Inc.

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)

 

     September 30,     March 31,  
     2022     2021     2022*  

ASSETS

      

Current Assets –

      

Cash and Cash Equivalents

   $ 84,140     $ 45,214     $ 19,416  

Accounts and Notes Receivable, net

     232,595       196,664       176,276  

Inventories

     225,835       203,745       236,661  

Federal Income Tax Receivable

     4,371       17,954       7,202  

Prepaid and Other Assets

     5,933       8,534       3,172  
  

 

 

   

 

 

   

 

 

 

Total Current Assets

     552,874       472,111       442,727  
  

 

 

   

 

 

   

 

 

 

Property, Plant and Equipment, net

     1,655,616       1,629,133       1,616,539  

Investments in Joint Venture

     85,391       77,628       80,637  

Operating Lease Right of Use Asset

     22,126       25,127       23,856  

Notes Receivable

     8,501       8,485       8,485  

Goodwill and Intangibles

     469,491       390,107       387,898  

Other Assets

     15,150       17,237       19,510  
  

 

 

   

 

 

   

 

 

 
   $ 2,809,149     $ 2,619,828     $ 2,579,652  
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

      

Current Liabilities –

      

Accounts Payable

   $ 113,722     $ 101,293     $ 113,679  

Accrued Liabilities

     92,863       80,324       86,754  

Current Portion of Long-Term Debt

     10,000       —         —    

Operating Lease Liabilities

     6,736       7,028       7,118  
  

 

 

   

 

 

   

 

 

 

Total Current Liabilities

     223,321       188,645       207,551  
  

 

 

   

 

 

   

 

 

 

Long-term Liabilities

     64,159       76,961       67,911  

Bank Credit Facility

     200,000       75,000       200,000  

Bank Term Loan

     187,500       —         —    

2.500% Senior Unsecured Notes due 2031

     738,898       737,632       738,265  

Deferred Income Taxes

     238,567       234,281       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 37,064,662; 40,913,931 and 38,710,929 Shares, respectively

     371       409       387  

Capital in Excess of Par Value

     —         —         —    

Accumulated Other Comprehensive Losses

     (3,128     (3,386     (3,175

Retained Earnings

     1,159,461       1,310,286       1,136,344  
  

 

 

   

 

 

   

 

 

 

Total Stockholders’ Equity

     1,156,704       1,307,309       1,133,556  
  

 

 

   

 

 

   

 

 

 
   $ 2,809,149     $ 2,619,828     $ 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 September 30, 2022 and 2021:

 

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

Cement

   $ 20,258      $ 20,019  

Concrete and Aggregates

     4,351        2,470  

Gypsum Wallboard

     5,589        5,484  

Paperboard

     3,742        3,663  

Corporate and Other

     705        704  
  

 

 

    

 

 

 
   $  34,645      $  32,340  
  

 

 

    

 

 

 

 

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Attachment 6

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 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 calculations of EBITDA and Adjusted EBITDA and reconciles them to net earnings in accordance with GAAP for the quarters ended September 30, 2022 and 2021:

 

     Quarter Ended
September 30,
 
     2022      2021  

Net Earnings, as reported

   $ 138,995      $ 102,125  

Income Tax Expense

     39,529        29,190  

Interest Expense

     8,580        12,268  

Depreciation, Depletion and Amortization

     34,645        32,340  
  

 

 

    

 

 

 

EBITDA

   $ 221,749      $ 175,923  

Northern Colorado purchase accounting 1

     867        —    

Stock-based Compensation

     4,402        3,920  

Loss on Early Retirement of Senior Notes 2

     —          8,407  
  

 

 

    

 

 

 

Adjusted EBITDA

   $ 227,018      $ 188,250  

 

1 

Represents the impact of purchase accounting on inventory costs

2 

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

 

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