DALLAS--(BUSINESS WIRE)-- Eagle Materials Inc. (NYSE: EXP) today reported financial results for the first quarter of fiscal 2017 ended June 30, 2016. Notable items for the quarter include (all comparisons, unless otherwise noted, are with the prior year's first quarter):

Company First Quarter Results

• Record revenues of $297.5 million, up 4%
• Earnings before interest and income taxes of $71.2 million, up 18%
• Net Earnings of $45.3 million, up 20%
• Net earnings per diluted share of $0.93, up 24%

Other Highlights

• Eagle repurchased 525,000 shares of its common stock
• Net debt-to-capitalization ratio of 32%

Eagle's construction products and building materials businesses performed well during the quarter, with the Cement business reporting record first quarter operating earnings of $31.6 million. First quarter cash flow from operations improved 162% and was used to fund capital improvements, pay dividends, reduce debt and repurchase shares. Eagle ended the quarter with a net debt-to-capitalization ratio of 32%.

Cement, Concrete and Aggregates

Cement revenues for the first quarter, including joint venture and intersegment revenues, totaled $144.8 million, which was 13% higher than the same quarter last year. The average net sales price for this quarter was $100.63 per ton, 2% higher than the same quarter last year. Wholly-owned average net sales prices improved 6% from the same quarter last year. The average net cement sales price at our Joint Venture declined year-over-year reflecting the shift from oil well cement to construction grade-cement over the past year; however, profitability remained strong at the Joint Venture. Total Cement sales volumes for the quarter were 1.3 million tons, 4% higher than the same quarter a year ago.

Operating earnings from Cement for the first quarter were a record $31.6 million and 23% greater than the same quarter a year ago. The earnings improvement was driven primarily by improved average net cement sales prices and cement sales volumes and $3.1 million of earnings from the Skyway Cement facility we acquired in July of 2015.

Concrete and Aggregates reported revenues for the first quarter of $34.5 million, an increase of 22%. First quarter operating earnings were $3.7 million for the first quarter, a 91% improvement from the same quarter a year ago, reflecting improved concrete and aggregates pricing and sales volumes.

Gypsum Wallboard and Paperboard

Gypsum Wallboard and Paperboard revenues for the first quarter totaled $141.6 million, which were 4% greater than the same quarter a year ago. The average Gypsum Wallboard net sales price this quarter was $157.69 per MSF, 4% less than the same quarter a year ago. Gypsum Wallboard sales volume for the quarter of 587 million square feet (MMSF) represents a 2% increase from the same quarter last year. Paperboard sales volumes for the quarter were a record 83,000 tons, 20% greater than the same quarter a year ago. The average Paperboard net sales price this quarter was $498.92 per ton, 1% less than the same quarter a year ago.

Gypsum Wallboard and Paperboard reported first quarter operating earnings of $50.6 million, up 8% from the same quarter last year. The earnings improvement reflects improved Gypsum Wallboard and Paperboard sales volumes and lower operating costs primarily driven by lower natural gas prices during the quarter.

Oil and Gas Proppants

Oil and Gas Proppants reported first quarter revenues of $5.1 million, a 78% decrease from the prior year reflecting a 68% decline in frac sand sales volumes. The first quarter's operating loss of $5.9 million compares with an operating loss of $5.6 million in the same quarter a year ago. Our frac sand business continues to be impacted by the significant slowdown in oil and gas drilling activity over the past eighteen-months; however, we continue to right-size the business to match our business with current activity levels.

Details of Financial Results

We conduct one of our cement plant operations, Texas Lehigh Cement Company LP, 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 only, 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 within 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 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on July 25, 2016. 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. For more information, contact Eagle 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; 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; material nonpayment or non-performance by any of our key customers; fluctuations in activity in the oil and gas industry, including the level of fracturing activities and the demand for frac sand; 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; a cyber-attack or data security breach; announced increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction; risks related to pursuit of acquisitions, joint ventures and other transactions; the impact of our bylaws forum selection clause on stockholder disputes; 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, 2016. This report is 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.

Attachment 1 Statement of Consolidated Earnings
Attachment 2 Revenues and Earnings by Lines of Business (Quarter)
Attachment 3 Sales Volume, Net Sales Prices and Intersegment and Cement Revenues
Attachment 4 Consolidated Balance Sheets
Attachment 5 Segment Depreciation, Depletion and Amortization

Eagle Materials Inc.
Attachment 1
Eagle Materials Inc.
Statement of Consolidated Earnings
(dollars in thousands, except per share data)
(unaudited)
				Quarter Ended June 30,
				2016					2015
Revenues				$	297,504				$	284,963
Cost of Goods Sold					225,549					223,866
Gross Profit					71,955					61,097
Equity in Earnings of Unconsolidated Joint Venture					7,980					7,830
Corporate General and Administrative Expenses					(9,833	)				(8,991	)
Other, net					1,075					435
Earnings before Interest and Income Taxes					71,177					60,371
Interest Expense, net					(3,901	)				(4,486	)
Earnings before Income Taxes					67,276					55,885
Income Tax Expense					(21,932	)				(18,123	)
Net Earnings				$	45,344				$	37,762
NET EARNINGS PER SHARE
Basic				$	0.94				$	0.76
Diluted				$	0.93				$	0.75
AVERAGE SHARES OUTSTANDING
Basic					48,014,195					49,767,424
Diluted					48,522,207					50,450,908

Eagle Materials Inc.
Attachment 2
Eagle Materials Inc.
Revenues and Segment Operating Earnings by Lines of Business
(dollars in thousands)
(unaudited)
					Quarter Ended June 30,
					2016						2015
Revenues*
Gypsum Wallboard and Paperboard:
Gypsum Wallboard					$ 113,262						$	115,052
Gypsum Paperboard					28,309							20,767
					141,571							135,819
Cement (Wholly Owned)					116,369							98,039
Oil and Gas Proppants					5,096							22,825
Concrete and Aggregates					34,468							28,280
Total					$ 297,504						$	284,963
Segment Operating Earnings
Gypsum Wallboard and Paperboard:
Gypsum Wallboard					$ 39,336						$	40,894
Gypsum Paperboard					11,227							6,030
					50,563							46,924
Cement:
Wholly Owned					23,620							17,883
Joint Venture					7,980							7,830
					31,600							25,713
Oil and Gas Proppants					(5,912			)				(5,636	)
Concrete and Aggregates					3,684							1,926
Other, net					1,075							435
Sub-total					$ 81,010						$	69,362
Corporate General and Administrative Expense					(9,833			)				(8,991	)
Earnings before Interest and Income Taxes					$ 71,177						$	60,371
* 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 Cement Revenues
(unaudited)
				Sales Volume
				Quarter Ended June 30,
				2016			2015			Change
Gypsum Wallboard (MMSF's)				587			577			+2	%
Cement (M Tons):
Wholly Owned				1,033			991			+4	%
Joint Venture				218			212			+3	%
				1,251			1,203			+4	%
Paperboard (M Tons):
Internal				29			28			+4	%
External				54			41			+32	%
				83			69			+20	%
Concrete (M Cubic Yards)				287			249			+15	%
Aggregates (M Tons)				944			667			+42	%
Frac Sand (M Tons)				74			231			-68	%

				Average Net Sales Price *
				Quarter Ended June 30,
				2016				2015				Change
Gypsum Wallboard (MSF)				$	157.69			$	163.46			-4	%
Cement (Ton)				$	100.63			$	98.39			+2	%
Paperboard (Ton)				$	498.92			$	503.80			-1	%
Concrete (Cubic Yard)				$	92.73			$	92.04			+1	%
Aggregates (Ton)				$	8.30			$	7.94			+5	%

*Net of freight and delivery costs billed to customers.

				Intersegment and Cement Revenues ($ in thousands)
				Quarter Ended June 30,
				2016				2015
Intersegment Revenues:
Cement				$	3,535			$	3,126
Paperboard					14,506				14,551
Concrete and Aggregates					283				252
				$	18,324			$	17,929
Cement Revenues:
Wholly Owned				$	116,369			$	98,039
Joint Venture					24,888				27,011
				$	141,257			$	125,050

Eagle Materials Inc.
Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
				June 30,										March 31,
				2016					2015					2016*
ASSETS
Current Assets -
Cash and Cash Equivalents				$	9,180				$	7,551				$	5,391
Accounts and Notes Receivable, net					142,298					135,696					120,221
Inventories					240,999					234,741					243,595
Federal Income Tax Receivable					-					-					5,623
Prepaid and Other Assets					8,020					10,110					5,173
Total Current Assets					400,497					388,098					380,003
Property, Plant and Equipment -					2,083,592					1,988,971					2,072,776
Less: Accumulated Depreciation					(837,242	)				(759,979	)				(817,465	)
Property, Plant and Equipment, net					1,246,350					1,228,992					1,255,311
Investments in Joint Venture					48,700					49,199					49,465
Notes Receivable					2,652					2,803					2,672
Goodwill and Intangibles					163,298					207,047					165,827
Other Assets					27,588					32,209					30,357
				$	1,889,085				$	1,908,348				$	1,883,635
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities -
Accounts Payable				$	61,322				$	61,037				$	66,614
Accrued Liabilities					40,509					36,373					45,975
Federal Income Tax Payable					9,919					11,606					-
Current Portion of Senior Notes					8,000					57,045					8,000
Total Current Liabilities					119,750					166,061					120,589
Long-term Liabilities					58,642					68,876					61,122
Bank Credit Facility					373,000					341,000					382,000
Senior Notes					117,714					125,714					117,714
Deferred Income Taxes					163,536					158,472					161,679
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 48,391,969; 50,357,355 and
48,526,843 Shares, respectively					484					504					485
Capital in Excess of Par Value					144,076					277,026					168,969
Accumulated Other Comprehensive Losses					(11,097	)				(11,748	)				(11,409	)
Retained Earnings					922,980					782,443					882,486
Total Stockholders' Equity					1,056,443					1,048,225					1,040,531
				$	1,889,085				$	1,908,348				$	1,883,635
*From audited financial statements.

Eagle Materials Inc.
Attachment 5

Eagle Materials Inc.
Segment Depreciation, Depletion and Amortization
(dollars in thousands)
(unaudited)

The following presents depreciation, depletion and amortization by segment for the quarters ended June 30, 2016 and 2015:

				Depreciation, Depletion and Amortization ($ in thousands)
				Quarter Ended June 30,
				2016				2015
Cement				$	8,611			$	7,866
Gypsum Wallboard					4,762				4,786
Paperboard					2,100				2,053
Oil and Gas Proppants					5,184				7,559
Concrete and Aggregates					1,749				1,505
Other					457				495
				$	22,863			$	24,264

View source version on businesswire.com: http://www.businesswire.com/news/home/20160725005257/en/

Eagle Materials Inc.
David B. Powers, 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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