DALLAS--(BUSINESS WIRE)-- Eagle Materials Inc. (NYSE: EXP) today reported financial results for the third quarter of fiscal 2011 ended December 31, 2010. Notable items for the quarter include:

• Revenues of $103.9 million
• Net earnings of $5.5 million
• Diluted earnings per share of $0.12

Cement, Concrete and Aggregates

Operating earnings from Cement for the third quarter were $15.3 million, a 14% increase from the same quarter a year ago. The earnings increase reflects improved sales volumes and lower operating costs. Cement revenues for the quarter, including joint venture and intersegment revenues, totaled $54.9 million, 3% higher than the same quarter last year. Cement sales volumes for the quarter were 619,000 tons, 6% above the same quarter a year ago. The average net sales price this quarter was $80.11, 5% less than the same quarter last year.

Concrete and Aggregates reported operating earnings of $0.2 million for the third quarter, up $0.3 million from the same quarter a year ago, primarily due to improved sales volumes.

Revenues from Concrete and Aggregates were $10.3 million for the quarter, 13% higher than the same quarter a year ago. Concrete sales volume increased 19% from the same quarter a year ago to 113,000 cubic yards. Concrete average net sales price for the quarter of $62.72 per cubic yard was 6% less than the same quarter a year ago. Aggregates sales volume of 677,000 tons for this quarter was 45% higher than the sales volume for the same quarter a year ago. Aggregates average net sales price for the quarter was $5.02, down 20% compared to last year's third quarter.

Gypsum Wallboard and Paperboard

Gypsum Wallboard and Paperboard had a third quarter operating loss of $0.4 million compared to operating earnings of $0.9 million in the same quarter last year. Lower wallboard net sales prices and higher recycled fiber costs were the primary drivers of the quarterly earnings decline.

Gypsum Wallboard and Paperboard revenues for the third quarter totaled $59.3 million, a 2% increase from the same quarter a year ago. The revenue increase reflects increased Paperboard sales prices offset by lower wallboard net sales prices.

The average Gypsum Wallboard net sales price this quarter was $86.65 per MSF, 3% less than the same quarter a year ago. Gypsum Wallboard sales volumes for the quarter of 386 million square feet (MMSF) were essentially flat with the same quarter last year. The average Paperboard net sales price this quarter was $477.75 per ton, 15% higher than the same quarter a year ago. Paperboard sales volumes for the quarter were 47,000 tons, 6% less than the same quarter a year ago.

Details of Financial Results

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 4 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.

EXP's senior management will conduct a conference call to discuss the financial results, forward looking information and other matters at 2:00 p.m. Eastern Time (1:00 p.m. Central Time) on Tuesday, February 1, 2011. The conference call will be webcast simultaneously on the EXP Web site http://www.eaglematerials.com. A replay of the webcast and the presentation will be archived on that site for one year. For more information, contact EXP at 214-432-2000.

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; availability of raw materials; changes in energy costs including, without limitation, natural gas and oil; changes in the cost and availability of transportation; unexpected operational difficulties; inability to timely execute announced capacity expansions; governmental regulation and changes in governmental and public policy (including, without limitation, climate change regulation); 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 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, 2010 and in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2010. 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)		Summary of Consolidated Earnings
(2)		Revenues and Earnings by Lines of Business (Quarter)
(3)		Revenues and Earnings by Lines of Business (Nine Months)
(4)		Sales Volume, Net Sales Prices and Intersegment and Cement Revenues
(5)		Consolidated Balance Sheets

Eagle Materials Inc.
Attachment 1
Eagle Materials Inc.
Summary of Consolidated Earnings
(dollars in thousands, except per share data)
(unaudited)
				Quarter Ended December 31,
				2010			2009			Change
Revenues				$	103,870		$	104,529		-1	%
Earnings Before Income Taxes				$	6,620		$	5,467		+21	%
Net Earnings				$	5,496		$	4,684		+17	%
Earnings Per Share:
		-- Basic		$	0.13		$	0.11		+18	%
		-- Diluted		$	0.12		$	0.11		+9	%
Average Shares Outstanding:
		-- Basic			43,887,833			43,752,952		0	%
		-- Diluted			44,199,121			44,092,803		0	%
				Nine Months Ended December 31,
				2010			2009			Change
Revenues				$	366,799		$	370,519		-1	%
Earnings Before Income Taxes				$	31,608		$	37,602		-16	%
Net Earnings				$	25,653		$	27,026		-5	%
Earnings Per Share:
		-- Basic		$	0.58		$	0.62		-6	%
		-- Diluted		$	0.58		$	0.61		-5	%
Average Shares Outstanding:
		-- Basic			43,858,606			43,655,146		0	%
		-- Diluted			44,200,558			44,033,928		0	%

Eagle Materials Inc.
Attachment 2
Eagle Materials Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
		Quarter Ended December 31,
		2010				2009				Change
Revenues*
Gypsum Wallboard and Paperboard:
Gypsum Wallboard		$	45,389			$	45,374			0	%
Gypsum Paperboard			13,890				12,900			+8	%
			59,279				58,274			+2	%
			57	%			56	%
Cement (Wholly Owned)			34,301				37,171			-8	%
			33	%			35	%
Concrete and Aggregates			10,290				9,084			+13	%
			10	%			11	%
Total		$	103,870			$	104,529			-1	%
			100	%			100	%
Operating Earnings
Gypsum Wallboard and Paperboard:
Gypsum Wallboard		$	(2,535	)		$	(2,287	)		-11	%
Gypsum Paperboard			2,160				3,216			-33	%
			(375	)			929			-140	%
			-2	%			7	%
Cement:
Wholly Owned			8,061				7,481			+8	%
Joint Venture			7,196				5,910			+22	%
			15,257				13,391			+14	%
			100	%			93	%
Concrete and Aggregates			154				(98	)		n/a
			1	%			-1	%
Other, net			192				110			+75	%
			1	%			1	%
Total Operating Earnings			15,228				14,332			+6	%
			100	%			100	%
Corporate General Expenses			(3,942	)			(3,170	)		+24	%
Interest Expense, net			(4,666	)			(5,695	)		-18	%
Earnings Before Income Taxes		$	6,620			$	5,467			+21	%
* Net of Intersegment and Joint Venture Revenues listed on Attachment 4.

Eagle Materials Inc.
Attachment 3
Eagle Materials Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
		Nine Months Ended December 31,
		2010				2009				Change
Revenues*
Gypsum Wallboard and Paperboard:
Gypsum Wallboard		$	153,903			$	159,016			-3	%
Gypsum Paperboard			52,998				38,298			+38	%
			206,901				197,314			+5	%
			57	%			53	%
Cement (Wholly Owned)			125,652				135,886			-8	%
			34	%			37	%
Concrete and Aggregates			34,246				37,319			-8	%
			9	%			10	%
Total		$	366,799			$	370,519			-1	%
			100	%			100	%
Operating Earnings
Gypsum Wallboard and Paperboard:
Gypsum Wallboard		$	3,961			$	2,453			+61	%
Gypsum Paperboard			9,787				12,618			-22	%
			13,748				15,071			-9	%
			24	%			23	%
Cement:
Wholly Owned			23,149				31,693			-27	%
Joint Venture			17,868				18,276			-2	%
			41,017				49,969			-18	%
			72	%			75	%
Concrete and Aggregates			923				1,692			-45	%
			2	%			2	%
Other, net			1,084				113			+859	%
			2	%			0	%
Total Operating Earnings			56,772				66,845			-15	%
			100	%			100	%
Corporate General Expenses			(12,060	)			(12,314	)		-2	%
Interest Expense, net			(13,104	)			(16,929	)		-23	%
Earnings Before Income Taxes		$	31,608			$	37,602			-16	%
* Net of Intersegment and Joint Venture Revenues listed on Attachment 4.

Eagle Materials Inc.
Attachment 4
Eagle Materials Inc.
Sales Volume, Net Sales Prices and Intersegment and Joint Venture Revenues
(unaudited)
		Sales Volume
		Quarter Ended							Nine Months Ended
		December 31,							December 31,
		2010		2009		Change			2010		2009		Change
Gypsum Wallboard (MMSF's)		386		388		0	%		1,237		1,302		-5	%
Cement (M Tons):
Wholly Owned		408		418		-2	%		1,482		1,497		-1	%
Joint Venture		211		166		+27	%		614		529		+16	%
		619		584		+6	%		2,096		2,026		+3	%
Paperboard (M Tons):
Internal		17		15		+13	%		53		53		0	%
External		30		35		-14	%		115		105		+9	%
		47		50		-6	%		168		158		+6	%
Concrete (M Cubic Yards)		113		95		+19	%		353		380		-7	%
Aggregates (M Tons)		677		468		+45	%		2,098		1,928		+9	%

		Average Net Sales Price*
		Quarter Ended									Nine Months Ended
		December 31,									December 31,
		2010			2009			Change			2010			2009			Change
Gypsum Wallboard (MSF)		$	86.65		$	89.00		-3	%		$	93.90		$	94.01		0	%
Cement (Ton)		$	80.11		$	84.01		-5	%		$	80.51		$	86.34		-7	%
Paperboard (Ton)		$	477.75		$	415.62		+15	%		$	477.80		$	410.16		+16	%
Concrete (Cubic Yard)		$	62.72		$	66.53		-6	%		$	64.64		$	67.75		-5	%
Aggregates (Ton)		$	5.02		$	6.25		-20	%		$	5.66		$	6.36		-11	%
*Net of freight and delivery costs billed to customers.

		Intersegment and Cement Revenues
		Quarter Ended						Nine Months Ended
		December 31,						December 31,
		2010			2009			2010			2009
Intersegment Revenues:
Cement		$	1,394		$	915		$	3,550		$	3,748
Paperboard			8,491			8,124			27,311			26,753
Concrete and Aggregates			153			167			460			672
		$	10,038		$	9,206		$	31,321		$	31,173
Cement Revenues:
Wholly Owned		$	34,301		$	37,171		$	125,652		$	135,886
Joint Venture			19,181			15,327			55,949			48,736
		$	53,482		$	52,498		$	181,601		$	184,622

Eagle Materials Inc.
Attachment 5
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
		December 31,								March 31,
		2010				2009				2010*
ASSETS
Current Assets —
Cash and Cash Equivalents		$	4,053			$	22,442			$	1,416
Accounts and Notes Receivable, net			42,254				38,262				49,721
Inventories			111,012				99,515				105,871
Prepaid and Other Assets			2,464				4,553				4,266
Total Current Assets			159,783				164,772				161,274
Property, Plant and Equipment —			1,110,787				1,100,534				1,100,590
Less: Accumulated Depreciation			(503,063	)			(455,960	)			(468,121	)
Property, Plant and Equipment, net			607,724				644,574				632,469
Notes Receivable			13,150				7,024				10,586
Investments in Joint Venture			31,546				33,797				33,928
Goodwill and Intangibles			151,698				152,335				152,175
Other Assets			26,542				21,517				23,344
		$	990,443			$	1,024,019			$	1,013,776
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities —
Accounts Payable		$	30,464			$	16,460			$	27,840
Federal Income Taxes Payable			18				3,817				-
Accrued Liabilities			35,901				38,086				44,044
Total Current Liabilities			66,383				58,363				71,884
Senior Notes			285,000				300,000				300,000
Bank Credit Facility			5,000				-				3,000
Long-Term Liabilities			40,778				100,090				67,946
Deferred Income Taxes			124,503				118,114				119,299
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 44,196,759; 43,809,874 and
43,830,794 Shares, respectively.			442				438				438
Capital in Excess of Par Value			19,450				16,878				14,723
Accumulated Other Comprehensive Losses			(3,518	)			(6,040	)			(3,518	)
Retained Earnings			452,405				436,176				440,004
Total Stockholders' Equity			468,779				447,452				451,647
		$	990,443			$	1,024,019			$	1,013,776

*From audited financial statements.

Eagle Materials Inc.
Steven R. Rowley, 214-432-2000
President & CEO
or
D. Craig Kesler, 214-432-2000
Executive Vice President & CFO
or
Robert S. Stewart, 214-432-2000
Executive Vice President

Source: Eagle Materials Inc.

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