DALLAS--(BUSINESS WIRE)-- Eagle Materials Inc. (NYSE:EXP) today reported financial results for the third quarter of fiscal 2014 which ended December 31, 2013. Notable items for the quarter in relation to the prior-year's third quarter include:

• Record third quarter Revenues of $228.8 million, up 39%
• Earnings before interest and income taxes of $53.3 million, up 71%
• Earnings per diluted share of $0.63, up 70%
• Reduced outstanding debt by 20%

Sales volumes improved across all business lines, with cement volumes setting a third quarter record of over 1.1 million tons sold. Net sales prices also strengthened across all businesses, with wallboard sales prices increasing 19% over the prior year's third quarter. Quarterly revenue and earnings improvement also reflects the acquisition of assets, primarily two cement plants in Missouri and Oklahoma (the Acquired Assets) on November 30, 2012.

Cement, Concrete and Aggregates

Operating earnings from Cement for the third quarter were $26.0 million, a 57% increase from the same quarter a year ago. The earnings increase resulted from increased sales volumes and average net cement sales prices.

Cement revenues for the quarter, including joint venture and intersegment revenues, totaled $105.6 million, 41% greater than the same quarter last year. The revenue improvement reflects a 36% increase in our third quarter Cement sales volume, including sales volumes attributable to the Acquired Assets. Our average net cement sales price this quarter was $87.01 per ton, 5% higher than the same quarter last year.

Concrete and Aggregates reported a $3.7 million operating loss for the third quarter. The quarterly loss was impacted by start-up costs associated with our new frac sand business of approximately $2.1 million and the settlement of a litigation matter in California for $0.5 million.

Gypsum Wallboard and Paperboard

Gypsum Wallboard and Paperboard's third quarter operating earnings of $37.4 million were up 51% compared to the same quarter last year. Improved Gypsum Wallboard net sales prices and sales volumes were the primary drivers of the quarterly earnings increase.

Gypsum Wallboard and Paperboard revenues for the third quarter totaled $123.9 million, a 24% increase from the same quarter a year ago. The revenue increase reflects primarily higher wallboard average net sales prices and improved gypsum wallboard and paperboard sales volumes.

The average gypsum wallboard net sales price for the third quarter was $143.40 per MSF, 19% greater than the same quarter a year ago. Gypsum Wallboard sales volume for the quarter of 584 million square feet (MMSF) represents a 13% increase from the same quarter last year. The average Paperboard net sales price for this quarter was $504.08 per ton, 5% greater than the same quarter a year ago. Paperboard sales volumes for the quarter were 66,000 tons, 2% higher than the same quarter a year ago.

Details of Financial Results

For information regarding the results of operations for the Acquired Assets for certain periods prior to November 30, 2012, including pro forma financial information that combines the results of operations for Eagle and the Acquired Assets, please see our Form 8-K/A filed on April 26, 2013.

The prior year's third quarter results include Acquisition and Litigation Expenses related primarily to the acquisition of the Acquired Assets and litigation costs related to our lawsuit against the IRS. The total impact from these non-routine items was $2.8 million (pre-tax), or $0.06 per diluted share (after-tax).

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.

Eagle's senior management will conduct a conference call to discuss the financial results, forward looking information and other matters at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Wednesday, February 5, 2014. The conference call will be webcast simultaneously on the Eagle Web site http://www.eaglematerials.com. A replay of the webcast and the presentation will be archived on that site 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 business; 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 energy costs including, without limitation, natural gas, coal and oil; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipment downtime and interruption of production; 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 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; 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, coal 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. With respect to our acquisition of the Acquired Assets as described in this press release, factors, risks and uncertainties that may cause actual events and developments to vary materially from those anticipated in forward-looking statements include, but are not limited to, the risk that we may not be able to integrate the Acquired Assets in an efficient and cost-effective manner with our other assets and operations, the possible inability to realize synergies or other expected benefits of the transaction, the possibility that we may incur significant costs relating to transition or integration activities or repair and maintenance of the Acquired Assets, the discovery of undisclosed liabilities associated with the business, the need to repay the indebtedness incurred to fund the acquisition and the fact that increased debt may limit our ability to respond to any changes in general economic and business conditions that occur after the acquisition. These and other factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2013 and in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2013. 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)					Statement of Consolidated Earnings
(2)					Revenues and Earnings by Lines of Business (Quarter and Nine 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 December 31,										Nine Months Ended December 31,
				2013					2012					2013					2012
Revenues				$	228,812				$	164,743				$	708,502				$	483,444
Cost of Goods Sold					178,964					133,482					552,571					396,797
Gross Profit					49,848					31,261					155,931					86,647
Equity in Earnings of Unconsolidated JV					9,856					8,852					27,481					24,070
Other Operating (Expense) Income					400					(223	)				1,300					(427	)
Acquisition and Litigation Expense					-					(2,485	)				-					(8,859	)
Corporate General and Administrative Expense					(6,796	)				(6,268	)				(18,450	)				(16,942	)
Earnings before Interest and Income Taxes					53,308					31,137					166,262					84,489
Interest Expense, Net					(4,475	)				(3,836	)				(14,225	)				(11,149	)
Earnings before Income Taxes					48,833					27,301					152,037					73,340
Income Tax Expense					(17,212	)				(9,321	)				(50,412	)				(23,429	)
Net Earnings				$	31,621				$	17,980				$	101,625				$	49,911
EARNINGS PER SHARE
Basic				$	0.64				$	0.37				$	2.07				$	1.09
Diluted				$	0.63				$	0.37				$	2.03				$	1.07
AVERAGE SHARES OUTSTANDING
Basic					49,294,010					48,331,185					49,091,476					45,920,452
Diluted					50,162,962					49,249,547					49,948,178					46,574,724

Eagle Materials Inc. Attachment 2
Eagle Materials Inc. Revenues and Segment Operating Earnings by Lines of Business (dollars in thousands) (unaudited)
				Quarter Ended December 31,										Nine Months Ended December 31,
				2013					2012					2013					2012
Revenues*
Gypsum Wallboard and Paperboard:
Gypsum Wallboard				$	104,158				$	80,737				$	299,099				$	228,284
Gypsum Paperboard					19,703					19,551					59,646					58,173
					123,861					100,288					358,745					286,457
Cement (Wholly Owned)					76,832					50,400					267,007					156,255
Concrete and Aggregates					28,119					14,055					82,750					40,732
Total				$	228,812				$	164,743				$	708,502				$	483,444
Segment Operating Earnings
Gypsum Wallboard and Paperboard:
Gypsum Wallboard				$	30,730				$	16,870				$	90,234				$	47,356
Gypsum Paperboard					6,661					7,963					19,277					20,934
					37,391					24,833					109,511					68,290
Cement:
Wholly Owned					16,155					7,763					49,970					19,853
Joint Venture					9,856					8,852					27,481					24,070
					26,011					16,615					77,451					43,923
Concrete and Aggregates					(3,698	)				(1,335	)				(3,550	)				(1,496	)
Other Operating (Expense) Income					400					(223	)				1,300					(427	)
Sub-total					60,104					39,890					184,712					110,290
Acquisition and Litigation Expense					-					(2,485	)				-					(8,859	)
Corporate General and Administrative Expense					(6,796	)				(6,268	)				(18,450	)				(16,942	)
Earnings Before Interest and Income Taxes				$	53,308				$	31,137				$	166,262				$	84,489
* 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 December 31,									Nine Months Ended December 31,
				2013			2012			Change			2013			2012			Change
Gypsum Wallboard (MMSF's)				584			519			+13%			1,670			1,476			+13%
Cement (M Tons):
Wholly Owned				876			592			+48%			3,037			1,852			+64%
Joint Venture				239			226			+6%			753			678			+11%
				1,115			818			+36%			3,790			2,530			+50%
Paperboard (M Tons):
Internal				27			23			+17%			79			66			+20%
External				39			42			-7%			118			121			-2%
				66			65			+2%			197			187			+5%
Concrete (M Cubic Yards)				231			143			+62%			723			421			+72%
Aggregates (M Tons)				748			639			+17%			2,663			2,101			+27%

				Average Net Sales Price*
				Quarter Ended December 31,												Nine Months Ended December 31,
				2013				2012				Change				2013				2012				Change
Gypsum Wallboard (MSF)				$	143.40			$	120.55			+19	%			$	144.54			$	119.60			+21	%
Cement (Ton)				$	87.01			$	82.68			+5	%			$	86.10			$	82.17			+5	%
Paperboard (Ton)				$	504.08			$	480.51			+5	%			$	504.64			$	498.16			+1	%
Concrete (Cubic Yard)				$	84.88			$	71.55			+19	%			$	82.02			$	67.94			+21	%
Aggregates (Ton)				$	11.44			$	6.13			+87	%			$	8.86			$	6.04			+47	%
*Net of freight and delivery costs billed to customers.

				Intersegment and Cement Revenues
				Quarter Ended December 31,								Nine Months Ended December 31,
				2013				2012				2013				2012
Intersegment Revenues:
Cement				$	2,556			$	535			$	7,503			$	1,614
Paperboard					13,993				11,780				40,855				35,217
Concrete and Aggregates					217				146				889				603
				$	16,766			$	12,461			$	49,247			$	37,434
Cement Revenues:
Wholly Owned				$	76,832			$	50,400			$	267,007			$	156,255
Joint Venture					26,190				24,000				81,972				71,623
				$	103,022			$	74,400			$	348,979			$	227,878

Eagle Materials Inc. Attachment 4
Eagle Materials Inc. Consolidated Balance Sheets (dollars in thousands) (unaudited)
				December 31,								March 31,
				2013				2012				2013*
ASSETS
Current Assets -
Cash and Cash Equivalents				$	7,424			$	9,247			$	3,897
Accounts and Notes Receivable, net					96,357				86,588				87,543
Inventories					173,871				134,473				156,380
Federal Income Tax Receivable				-					-			2,443
Prepaid and Other Assets					5,074				13,015				11,008
Total Current Assets					282,726				243,323				261,271
Property, Plant and Equipment -					1,647,138				1,581,468				1,599,992
Less: Accumulated Depreciation					(662,734)				(598,396)				(614,268)
Property, Plant and Equipment, net					984,404				983,072				985,724
Investments in Joint Venture					41,178				41,760				42,946
Notes Receivable					3,208				3,273				3,893
Goodwill and Intangibles					161,117				163,802				162,400
Other Assets					14,631				21,590				19,999
				$	1,487,264			$	1,456,820			$	1,476,233
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities -
Accounts Payable				$	47,586			$	47,460			$	58,880
Accrued Liabilities					39,622			57,460					41,349
Federal Income Tax Payable					6,835			5,532				-
Current Portion of Long-term Debt					9,500			-				-
Total Current Liabilities					103,543				110,452				100,229
Long-term Liabilities					52,317				41,104			51,547
Bank Credit Facility					200,000				291,000			297,000
Senior Notes					182,759				192,259			192,259
Deferred Income Taxes					143,217				134,458			139,028
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 49,964,881; 49,351,952 and
49,503,496 Shares, respectively.					500				494				495
Capital in Excess of Par Value					246,161				216,440				224,053
Accumulated Other Comprehensive Losses					(6,577)				(5,168)				(7,042)
Retained Earnings					565,344				475,781				478,664
Total Stockholders' Equity					805,428				687,547				696,170
				$	1,487,264			$	1,456,820			$	1,476,233
*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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