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): February 2, 2012
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.) | ||
| 3811 Turtle Creek Blvd., Suite 1100, Dallas, Texas |
75219 | |||
| (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 from 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)) |
Item 2.02 Results of Operations and Financial Condition
On February 2, 2012, Eagle Materials Inc., a Delaware corporation (“Eagle”), announced its results of operations for the quarter ended December 31, 2011. 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 February 2, 2012 issued by Eagle Materials Inc. (announcing quarterly operating results) | |
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: February 2, 2012
EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1 | Earnings Press Release dated February 2, 2012 issued by Eagle Materials Inc. (announcing quarterly operating results) | |
Exhibit 99.1
[ |
Contact at 214/432-2000 Steven R. Rowley President & CEO D. Craig Kesler Executive Vice President & CFO Robert S. Stewart Executive Vice President |
News For Immediate Release
EAGLE MATERIALS INC. REPORTS
THIRD QUARTER RESULTS
DALLAS, TX (February 2, 2012)—Eagle Materials Inc. (NYSE: EXP) today reported financial results for the third quarter of fiscal 2012 ended December 31, 2011. Notable items for the quarter include (all comparisons, unless noted, are with the prior-year quarter):
| • | Revenues of $123.6 million, up 19% |
| • | Cash flow from operations of $16.2 million, up 45% |
| • | Adjusted earnings per diluted share of $0.20 and EPS of $0.07 (which includes Non-routine Items of $0.13) compared with $0.12 |
| • | Adjusted earnings per share is a non-GAAP financial measure calculated by excluding non-routine items in the manner described in attachment 5 |
| • | Total loss from non-routine items (including the after-tax effect of a loss on debt retirement, certain tax and interest benefits and loss on arbitration ruling) was $5.8 million |
Eagle’s low cost operations continued to execute well during this challenging environment for U.S. construction activity. Segment operating earnings increased 30% reflecting improved sales volumes in our cement, wallboard and paperboard businesses and higher wallboard and paperboard net sales prices as compared to the prior year. Operating cash flow was strong during the quarter, further strengthening our financial position.
Cement, Concrete and Aggregates
Operating earnings from Cement for the third quarter were $15.5 million, a 2% increase from the same quarter a year ago. The earnings increase primarily reflects improved sales volumes offset by $2.5 million of additional maintenance costs incurred this quarter versus the prior year quarter. Cement revenues for the quarter, including joint venture and intersegment revenues, totaled $61.5 million, 12% higher than the same quarter last year. Cement sales volumes for the quarter were 700,000 tons, 13% above the same quarter a year ago. The average net cement sales price this quarter was $80.02, generally flat with the same quarter last year.
Concrete and Aggregates reported an operating loss of $0.6 million for the third quarter compared to operating earnings of $0.2 million from the same quarter a year ago, primarily due to reduced sales volumes.
Gypsum Wallboard and Paperboard
Gypsum Wallboard and Paperboard reported third quarter operating earnings of $5.4 million compared to an operating loss of $0.4 million in the same quarter last year. Gypsum Wallboard and Paperboard revenues for the third quarter totaled $73.5 million, a 24% increase from the same quarter a year ago. Higher wallboard and paperboard net sales prices combined with improved paperboard sales volumes were the primary drivers of the quarterly earnings and revenues increase.
The average Gypsum Wallboard net sales price this quarter was $94.86 per MSF, 9% higher than the same quarter a year ago. Gypsum Wallboard sales volumes for the quarter of 421 million square feet (MMSF) increased 9% from the same quarter last year. The average Paperboard net sales price this quarter was $527.42 per ton, 10% higher than the same quarter a year ago. Paperboard sales volumes for the quarter were 57,000 tons, 21% greater than the same quarter a year ago.
Other Corporate Items
During the third quarter of fiscal 2012, Eagle repurchased approximately $88.1 million of its Series 2007A and Series 2005A Senior Notes at a slight premium. The loss on the debt retirement was approximately $2.1 million, or $0.04 per diluted share, and was expensed during the third quarter. The purchase of the senior notes was funded with cash and lower cost borrowings made under our revolving bank credit facility. As a result of the purchase, Eagle was able to modestly reduce its outstanding debt, reduce interest payments, and improve financial flexibility by replacing a portion of our fixed term debt with variable revolving debt, which can be repaid at any time, while still maintaining a significant amount of readily available liquidity.
Also during the third quarter of fiscal 2012, income taxes and interest expense were positively affected by our participation in state amnesty programs with the states of Arizona, Colorado and California, as well as the expiration of the federal statute of limitations for certain items related to the 2004 through 2006 tax years. These events were treated as discrete items in the tax provision and interest calculation and a benefit totaling approximately $2.8 million, or $0.06 per diluted share, was recognized. Additionally, we received the previously recorded $9.1 million Federal Income Tax Receivable in early January 2012.
On January 19, 2012, we received an adverse ruling in an arbitration proceeding involving a contract dispute between one of our subsidiaries and another mining company. The ruling involved a limited area within our California aggregates deposit and is not expected to have a material adverse impact on our continuing operations in future periods. While the ruling has not been finalized, the award, along with our legal expenses, was approximated to be $9.1 million, or $0.15 per diluted share, and has been classified as Loss on Arbitration Ruling in our Statement of Consolidated Earnings.
2
Details of Financial Results
The nine-month financial information included in this press release includes a previously disclosed $3 million reversal of an accrual that reduced wallboard costs of goods sold during the first quarter of fiscal 2012. The $3 million relates to a reserve established in fiscal 2001 for expected costs to repair certain manufacturing equipment at one of our wallboard facilities. The equipment was subsequently purchased and fully depreciated without relieving the reserve. The reversal of the reserve represents the correction of a prior year error, which we concluded was immaterial to both current and previously issued financial statements; however, the reversal of the accrual is currently under review by the Securities and Exchange Commission and it is possible it may be adjusted back to beginning retained earnings. In this case, there would be no impact to Eagle’s third quarter results or cash flow from operations.
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.
3
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 Thursday, February 2, 2012. 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); 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 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, 2011 and in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2011. 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.
Steven R. Rowley
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
| (1) | Summary 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 |
| (5) | Non-GAAP Financial Measures |
4
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, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues |
$ | 123,596 | $ | 103,870 | $ | 378,222 | $ | 366,799 | ||||||||
| Cost of Goods Sold |
111,125 | 96,030 | 349,661 | 328,979 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross Profit |
12,471 | 7,840 | 28,561 | 37,820 | ||||||||||||
| Equity in Earnings of Unconsolidated JV |
7,776 | 7,196 | 21,160 | 17,868 | ||||||||||||
| Corporate General and Administrative Expense |
(3,873 | ) | (3,942 | ) | (12,463 | ) | (12,060 | ) | ||||||||
| Other Operating Income |
(464 | ) | 192 | (428 | ) | 1,084 | ||||||||||
| Loss on Arbitration Ruling |
(9,117 | ) | — | (9,117 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings before Interest and Income Taxes |
6,793 | 11,286 | 27,713 | 44,712 | ||||||||||||
| Interest Expense, Net |
(4,210 | ) | (4,666 | ) | (13,352 | ) | (13,104 | ) | ||||||||
| Loss on Debt Retirement |
(2,094 | ) | — | (2,094 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings before Income Taxes |
489 | 6,620 | 12,267 | 31,608 | ||||||||||||
| Income Tax Benefit (Expense) |
2,408 | (1,124 | ) | (288 | ) | (5,955 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Earnings |
$ | 2,897 | $ | 5,496 | $ | 11,979 | $ | 25,653 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EARNINGS PER SHARE |
||||||||||||||||
| Basic |
$ | 0.07 | $ | 0.13 | $ | 0.27 | $ | 0.58 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.07 | $ | 0.12 | $ | 0.27 | $ | 0.58 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| AVERAGE SHARES OUTSTANDING |
||||||||||||||||
| Basic |
44,212,098 | 43,887,833 | 44,197,540 | 43,858,606 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
44,395,982 | 44,199,121 | 44,423,467 | 44,200,558 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
5
Eagle Materials Inc.
Attachment 2
Eagle Materials Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
| Quarter
Ended December 31, |
Nine Months
Ended December 31, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues* |
||||||||||||||||
| Gypsum Wallboard and Paperboard: |
||||||||||||||||
| Gypsum Wallboard |
$ | 54,063 | $ | 45,389 | $ | 156,386 | $ | 153,903 | ||||||||
| Gypsum Paperboard |
19,407 | 13,890 | 59,686 | 52,998 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 73,470 | 59,279 | 216,072 | 206,901 | |||||||||||||
| Cement (Wholly Owned) |
40,074 | 34,301 | 126,677 | 125,652 | ||||||||||||
| Concrete and Aggregates |
10,052 | 10,290 | 35,473 | 34,246 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Revenues |
$ | 123,596 | $ | 103,870 | $ | 378,222 | $ | 366,799 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment Operating Earnings |
||||||||||||||||
| Gypsum Wallboard and Paperboard: |
||||||||||||||||
| Gypsum Wallboard |
$ | 228 | $ | (2,535 | ) | $ | (1,074 | ) | $ | 3,961 | ||||||
| Gypsum Paperboard |
5,146 | 2,160 | 12,214 | 9,787 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 5,374 | (375 | ) | 11,140 | 13,748 | ||||||||||||
| Cement: |
||||||||||||||||
| Wholly Owned |
7,717 | 8,061 | 18,232 | 23,149 | ||||||||||||
| Joint Venture |
7,776 | 7,196 | 21,160 | 17,868 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 15,493 | 15,257 | 39,392 | 41,017 | |||||||||||||
| Concrete and Aggregates |
(620 | ) | 154 | (811 | ) | 923 | ||||||||||
| Other, net |
(464 | ) | 192 | (428 | ) | 1,084 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Sub-total |
19,783 | 15,228 | 49,293 | 56,772 | ||||||||||||
| Corporate General and Administrative Expenses |
(3,873 | ) | (3,942 | ) | (12,463 | ) | (12,060 | ) | ||||||||
| Loss on Arbitration Ruling |
(9,117 | ) | — | (9,117 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings before Interest and Income Taxes |
6,793 | 11,286 | 27,713 | 44,712 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * | Net of Intersegment and Joint Venture Revenues listed on Attachment 3 |
6
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, |
|||||||||||||||||||||||
| 2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
| Gypsum Wallboard (MMSF’s) |
421 | 386 | +9 | % | 1,236 | 1,237 | 0 | % | ||||||||||||||||
| Cement (M Tons): |
||||||||||||||||||||||||
| Wholly Owned |
497 | 408 | +22 | % | 1,534 | 1,482 | +4 | % | ||||||||||||||||
| Joint Venture |
203 | 211 | -4 | % | 657 | 614 | +7 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| 700 | 619 | +13 | % | 2,191 | 2,096 | +5 | % | |||||||||||||||||
| Paperboard (M Tons): |
||||||||||||||||||||||||
| Internal |
19 | 17 | +12 | % | 54 | 53 | +2 | % | ||||||||||||||||
| External |
38 | 30 | +27 | % | 120 | 115 | +4 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| 57 | 47 | +21 | % | 174 | 168 | +4 | % | |||||||||||||||||
| Concrete (M Cubic Yards) |
112 | 113 | -1 | % | 391 | 353 | +11 | % | ||||||||||||||||
| Aggregates (M Tons) |
463 | 677 | -32 | % | 1,846 | 2,098 | -12 | % | ||||||||||||||||
| Average Net Sales Price* | ||||||||||||||||||||||||
| Quarter Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||||||||||||
| 2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
| Gypsum Wallboard (MSF) |
$ | 94.86 | $ | 86.65 | +9 | % | $ | 92.35 | $ | 93.90 | -2 | % | ||||||||||||
| Cement (Ton) |
$ | 80.02 | $ | 80.11 | 0 | % | $ | 80.77 | $ | 80.51 | 0 | % | ||||||||||||
| Paperboard (Ton) |
$ | 527.42 | $ | 477.75 | +10 | % | $ | 519.20 | $ | 477.80 | +9 | % | ||||||||||||
| Concrete (Cubic Yard) |
$ | 67.11 | $ | 62.72 | +7 | % | $ | 63.98 | $ | 64.64 | -1 | % | ||||||||||||
| Aggregates (Ton) |
$ | 5.99 | $ | 5.02 | +19 | % | $ | 5.95 | $ | 5.66 | +5 | % | ||||||||||||
| *Net | of freight and delivery costs billed to customers. |
| Intersegment and Cement Revenues | ||||||||||||||||
| Quarter Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Intersegment Revenues: |
||||||||||||||||
| Cement |
$ | 803 | $ | 1,394 | $ | 3,044 | $ | 3,550 | ||||||||
| Paperboard |
10,594 | 8,491 | 30,728 | 27,311 | ||||||||||||
| Concrete and Aggregates |
198 | 153 | 559 | 460 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 11,595 | $ | 10,038 | $ | 34,331 | $ | 31,321 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cement Revenues: |
||||||||||||||||
| Wholly Owned |
$ | 40,074 | $ | 34,301 | $ | 126,677 | $ | 125,652 | ||||||||
| Joint Venture |
20,633 | 19,181 | 64,487 | 55,949 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 60,707 | $ | 53,482 | $ | 191,164 | $ | 181,601 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
7
Eagle Materials Inc.
Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
| December 31, | March 31, | |||||||||||
| 2011 | 2010 | 2011* | ||||||||||
| ASSETS |
||||||||||||
| Current Assets – |
||||||||||||
| Cash and Cash Equivalents |
$ | 3,679 | $ | 4,053 | $ | 1,874 | ||||||
| Accounts and Notes Receivable, net |
54,491 | 42,254 | 43,855 | |||||||||
| Inventories |
113,613 | 111,012 | 115,237 | |||||||||
| Federal Income Tax Receivable |
9,109 | — | 9,088 | |||||||||
| Prepaid and Other Assets |
3,045 | 2,464 | 4,572 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Current Assets |
183,937 | 159,783 | 174,626 | |||||||||
|
|
|
|
|
|
|
|||||||
| Property, Plant and Equipment – |
1,138,261 | 1,110,787 | 1,112,058 | |||||||||
| Less: Accumulated Depreciation |
(548,284 | ) | (503,063 | ) | (512,228 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Property, Plant and Equipment, net |
589,977 | 607,724 | 599,830 | |||||||||
| Notes Receivable |
3,448 | 13,150 | 5,326 | |||||||||
| Investments in Joint Venture |
37,571 | 31,546 | 33,661 | |||||||||
| Goodwill and Intangibles |
151,061 | 151,698 | 151,539 | |||||||||
| Other Assets |
19,155 | 26,542 | 17,828 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 985,149 | $ | 990,443 | $ | 982,810 | |||||||
|
|
|
|
|
|
|
|||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
| Current Liabilities – |
||||||||||||
| Accounts Payable |
$ | 33,344 | $ | 30,464 | $ | 30,339 | ||||||
| Current Portion of Senior Notes |
4,677 | — | — | |||||||||
| Accrued Liabilities |
46,598 | 35,919 | 40,011 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Current Liabilities |
84,619 | 66,383 | 70,350 | |||||||||
|
|
|
|
|
|
|
|||||||
| Senior Notes |
192,259 | 285,000 | 285,000 | |||||||||
| Bank Credit Facility |
84,000 | 5,000 | 2,000 | |||||||||
| Long-Term Liabilities |
35,268 | 40,778 | 37,807 | |||||||||
| Deferred Income Taxes |
126,512 | 124,503 | 128,089 | |||||||||
| 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 44,944,310; 44,196,759 and 44,447,428 Shares, respectively. |
449 | 442 | 444 | |||||||||
| Capital in Excess of Par Value |
29,235 | 19,450 | 24,859 | |||||||||
| Accumulated Other Comprehensive Losses |
(2,893 | ) | (3,518 | ) | (2,893 | ) | ||||||
| Retained Earnings |
435,700 | 452,405 | 437,154 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Stockholders’ Equity |
462,491 | 468,779 | 459,564 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 985,149 | $ | 990,443 | $ | 982,810 | |||||||
|
|
|
|
|
|
|
|||||||
*From audited financial statements.
8
Eagle Materials Inc.
Attachment 5
Eagle Materials Inc.
Non-GAAP Financial Measures
(unaudited)
(Dollars, other than earnings per share amounts, and number of shares in millions)
Adjusted earnings per diluted share (Adjusted EPS), the earnings per diluted share excluding the impacts from non-routine items including the loss on debt retirement, discrete tax benefits and loss on arbitration ruling (Non-routine Items), represents a non-GAAP financial measure. Management uses measures of earnings excluding the impact of Non-routine Items as a basis for comparing operating results of the company from period to period and for purposes of its budgeting and planning processes. Although management believes that these financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation, or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly entitled measures reported by other companies. Management presents these measures as it believes Adjusted EPS represents the most comparable operating performance measure to the prior year and analysts’ expectations for the three months ended December 31, 2011. Analysts have not factored the impact of the non-routine items in their estimates for the quarter.
The following shows the calculation of the earnings per share impact of the Non-routine Items and reconciles earnings per diluted share in accordance with generally accepted accounting principles for the three months ended December 31, 2011 to Adjusted EPS:
| Three Months Ended December 31, 2011 |
||||
| After tax impact of loss on debt retirement |
$ | (1.6 | ) | |
| After tax impact of tax and interest benefits |
2.8 | |||
| After tax impact of loss on arbitration ruling |
(7.0 | ) | ||
| Total Non-routine Items loss, net |
$ | (5.8 | ) | |
| Diluted average number of shares outstanding for the three months ended December 31, 2011 |
44.4 | |||
| Diluted earnings per share loss from Non-routine Items |
$ | (0.13 | ) | |
| Three Months Ended December 31, 2011 |
||||
| Earnings per diluted share in accordance with generally accepted accounting principles |
$ | 0.07 | ||
| Add back: Earnings per diluted share loss from Non-routine Items |
0.13 | |||
| Adjusted EPS |
0.20 | |||
9