DALLAS--(BUSINESS WIRE)-- Eagle Materials Inc. (NYSE: EXP) today reported financial results for the third quarter of fiscal 2015 which ended December 31, 2014. Notable items for the quarter in relation to the prior-year's third quarter include:

• Record quarterly revenues of $292 million, up 27%
• Record third quarter cement earnings of $37.6 million, up 44%
• Record quarterly paperboard earnings of $9.1 million, up 37%
• Wallboard earnings of $40.0 million, up 30%
• Record third quarter earnings per diluted share of $1.03, up 63%

Sales volumes improved across all major business lines, with cement volumes setting a third quarter record of over 1.2 million tons sold. Net sales prices also strengthened across all businesses, with average wallboard and cement sales prices increasing 11% and 8%, respectively, over the prior year's third quarter.

On November 14, 2014, Eagle completed its previously announced acquisition of CRS Proppants LLC and its subsidiaries, including Great Northern Sand LLC (CRS Proppants). Eagle used cash proceeds from borrowings under its bank credit facility to fund the purchase price of $237.2 million. The results of operations of CRS Proppants are included in the results disclosed in this press release for the period from November 14 through December 31, 2014.

Cement, Concrete and Aggregates

Operating earnings from Cement for the third quarter were $37.6 million, a 44% increase from the same quarter a year ago. The earnings increase resulted from record third quarter sales volumes and increased average net cement sales prices.

Cement revenues for the quarter, including joint venture and intersegment revenues, totaled $124.0 million, 17% greater than the same quarter last year. The revenue improvement reflects an 8% increase in our third quarter Cement sales volume. Our average net cement sales price this quarter was $93.76 per ton, 8% higher than the same quarter last year.

Concrete and Aggregates reported operating earnings of $1.6 million for the third quarter, a $3.1 million improvement from the same quarter a year ago, reflecting improved concrete and aggregates pricing along with improved concrete sales volumes.

Gypsum Wallboard and Paperboard

Gypsum Wallboard and Paperboard's third quarter operating earnings of $49.1 million were up 31% compared to the same quarter last year. Improved Gypsum Wallboard net sales prices and increased Gypsum Wallboard and Paperboard sales volumes were the primary drivers of the quarterly earnings increase.

Gypsum Wallboard and Paperboard revenues for the third quarter totaled $144.2 million, a 16% increase from the same quarter a year ago. The revenue increase reflects higher average Gypsum Wallboard net sales prices and higher Gypsum Wallboard and Paperboard sales volumes. The average gypsum wallboard net sales price for the third quarter was $158.95 per MSF, 11% greater than the same quarter a year ago. Gypsum Wallboard sales volume for the quarter of 610 million square feet (MMSF) represents a 4% increase from the same quarter last year. The average Paperboard net sales price for this quarter was $504.30 per ton, about flat with the same quarter a year ago. Record Paperboard sales volumes for the quarter were 77,000 tons, 17% higher than the same quarter a year ago.

Oil and Gas Proppants

Oil and Gas Proppants reported third quarter revenues of $31.7 million and operating earnings of $3.2 million. During this year's third quarter, we continued to process and sell purchased sand while we built up inventory of our internally produced sand at our 1.5 million ton Corpus Christi facility.

Details of Financial Results

Beginning in our fiscal 2015, we have begun reporting our frac-sand business as a separately reportable segment - Oil and Gas Proppants. The results of this business were previously included in our Concrete and Aggregates segment during the start-up phase and have been reclassified to conform to the current year's presentation.

Acquisition and Litigation Expense consists of costs related to our acquisition of CRS Proppants and certain legal fees. Direct acquisition costs were approximately $0.7 million (pre-tax) during the quarter ended December 31, 2014.

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, and Oil and Gas Proppants from 40 facilities across the US. Eagle 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 4, 2015. 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; fluctuations in activity in the oil and gas industry, including the level of fracturing activities; 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. These and other factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2014 and in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2014. These reports are filed with the Securities and Exchange Commission. With respect to our acquisition of CRS Proppants, 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, failure to realize the expected synergies or other benefits of the transaction, significant transaction costs or unknown liabilities, changes in market conditions in the frac sand and related industries and general economic and business conditions that may affect us after the acquisition. 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.

Attachment 1 Statement of Consolidated Earnings
Attachment 2 Revenues and Earnings by Lines of Business (Quarter and Nine Months)
Attachment 3 Sales Volume, Net Sales Prices and Intersegment and Cement Revenues
Attachment 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,
				2014					2013					2014					2013
Revenues				$	291,529				$	228,812				$	842,588				$	708,502
Cost of Goods Sold					212,380					178,964					631,977					552,571
Gross Profit					79,149					49,848					210,611					155,931
Equity in Earnings of Unconsolidated JV					12,423					9,856					34,274					27,481
Other, net					488					400					2,050					1,300
Acquisition and Litigation Expenses					(722	)				-					(2,825	)				-
Corporate General and Administrative Expense					(9,371	)				(6,796	)				(23,827	)				(18,450	)
Earnings before Interest and Income Taxes					81,967					53,308					220,283					166,262
Interest Expense, Net					(4,101	)				(4,475	)				(12,054	)				(14,225	)
Earnings before Income Taxes					77,866					48,833					208,229					152,037
Income Tax Expense					(25,836	)				(17,212	)				(68,170	)				(50,412	)
Net Earnings				$	52,030				$	31,621				$	140,059				$	101,625
EARNINGS PER SHARE
Basic				$	1.05				$	0.64				$	2.82				$	2.07
Diluted				$	1.03				$	0.63				$	2.78				$	2.03
AVERAGE SHARES OUTSTANDING
Basic					49,655,405					49,294,010					49,583,210					49,091,476
Diluted					50,411,147					50,162,962					50,375,619					49,948,178

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,
				2014					2013					2014					2013
Revenues*
Gypsum Wallboard and Paperboard:
Gypsum Wallboard				$	118,573				$	104,158				$	342,905				$	299,099
Gypsum Paperboard					25,631					19,703					70,349					59,646
					144,204					123,861					413,254					358,745
Cement (Wholly Owned)					88,652					76,832					291,461					267,007
Oil and Gas Proppants					31,731					3,960					53,325					6,153
Concrete and Aggregates					26,942					24,159					84,548					76,597
Total				$	291,529				$	228,812				$	842,588				$	708,502
Segment Operating Earnings
Gypsum Wallboard and Paperboard:
Gypsum Wallboard				$	40,013				$	30,730				$	114,443				$	90,234
Gypsum Paperboard					9,102					6,661					24,633					19,277
					49,115					37,391					139,076					109,511
Cement:
Wholly Owned					25,155					16,155					62,261					49,970
Joint Venture					12,423					9,856					34,274					27,481
					37,578					26,011					96,535					77,451
Oil and Gas Proppants					3,241					(2,161	)				3,315					(3,967	)
Concrete and Aggregates					1,638					(1,537	)				5,959					417
Other, net					488					400					2,050					1,300
Sub-total					92,060					60,104					246,935					184,712
Acquisition and Litigation Expenses					(722	)				-					(2,825	)				-
Corporate General and Administrative Expense					(9,371	)				(6,796	)				(23,827	)				(18,450	)
Earnings Before Interest and Income Taxes				$	81,967				$	53,308				$	220,283				$	166,262
* 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,
				2014			2013			Change				2014			2013			Change
Gypsum Wallboard (MMSF's)				610			584			+4	%			1,746			1,670			+5	%
Cement (M Tons):
Wholly Owned				935			876			+7	%			3,135			3,037			+3	%
Joint Venture				270			239			+13	%			837			753			+11	%
				1,205			1,115			+8	%			3,972			3,790			+5	%
Paperboard (M Tons):
Internal				28			27			+4	%			83			79			+5	%
External				49			39			+26	%			136			118			+15	%
				77			66			+17	%			219			197			+11	%
Concrete (M Cubic Yards)				246			231			+6	%			767			723			+6	%
Aggregates (M Tons)				682			709			-4	%			2,372			2,606			-9	%

				Average Net Sales Price*
				Quarter Ended December 31,												Nine Months Ended December 31,
				2014				2013				Change				2014				2013				Change
Gypsum Wallboard (MSF)				$	158.95			$	143.40			+11	%			$	160.23			$	144.54			+11	%
Cement (Ton)				$	93.76			$	87.01			+8	%			$	91.43			$	86.10			+6	%
Paperboard (Ton)				$	504.30			$	504.08			0	%			$	505.09			$	504.64			0	%
Concrete (Cubic Yard)				$	89.00			$	84.88			+5	%			$	86.77			$	82.02			+6	%
Aggregates (Ton)				$	7.36			$	6.46			+14	%			$	7.54			$	6.70			+13	%

*Net of freight and delivery costs billed to customers.

				Intersegment and Cement Revenues
				Quarter Ended December 31,									Nine Months Ended December 31,
				2014				2013					2014				2013
Intersegment Revenues:
Cement				$	2,489			$	2,556				$	7,760			$	7,503
Paperboard					14,305				13,993					42,645				40,855
Concrete and Aggregates					174				217					691				889
				$	16,968			$	16,766				$	51,096			$	49,247
Cement Revenues:
Wholly Owned				$	88,652			$	76,832				$	291,461			$	267,007
Joint Venture					32,907				26,190					98,624				81,972
				$	121,559			$	103,022				$	390,085			$	348,979

Eagle Materials Inc.
Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
				December 31,										March 31,
				2014					2013					2014*
ASSETS
Current Assets -
Cash and Cash Equivalents				$	13,697				$	7,424				$	6,482
Accounts and Notes Receivable, net					136,823					96,357					102,917
Inventories					207,043					173,871					187,096
Federal Income Tax Receivable					-					-					-
Prepaid and Other Assets					4,995					5,074					10,465
Total Current Assets					362,558					282,726					306,960
Property, Plant and Equipment -					1,929,177					1,647,138					1,660,975
Less: Accumulated Depreciation					(724,351	)				(662,734	)				(676,924	)
Property, Plant and Equipment, net					1,204,826					984,404					984,051
Investments in Joint Venture					47,167					41,178					43,008
Notes Receivable					2,890					3,208					3,063
Goodwill and Intangibles					206,208					161,117					160,690
Other Assets					34,402					14,631					13,757
				$	1,858,051				$	1,487,264				$	1,511,529
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities -
Accounts Payable				$	68,466				$	47,586				$	57,098
Accrued Liabilities					45,269					39,622					41,520
Federal Income Tax Payable					1,508					6,835					702
Current Portion of Long-term Debt					57,045					9,500					9,500
Total Current Liabilities					172,288					103,543					108,820
Long-term Liabilities					84,911					52,317					53,678
Bank Credit Facility					335,000					200,000					189,000
Senior Notes					125,714					182,759					182,759
Deferred Income Taxes					167,116					143,217					145,773
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 50,277,425; 49,964,881 and
50,053,738 Shares, respectively.					503					500					501
Capital in Excess of Par Value					269,736					246,161					253,524
Accumulated Other Comprehensive Losses					(5,165	)				(6,577	)				(5,483	)
Retained Earnings					707,948					565,344					582,957
Total Stockholders' Equity					973,022					805,428					831,499
				$	1,858,051				$	1,487,264				$	1,511,529
*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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