UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 | Results of Operations and Financial Condition |
On July 27, 2023, Eagle Materials Inc., a Delaware corporation (“Eagle”), announced its results of operations for the quarter ended June 30, 2023. 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 |
Description | |
99.1 | Earnings Press Release dated July 27, 2023 issued by Eagle Materials Inc. (announcing quarterly operating results) | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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: July 27, 2023
EXHIBIT 99.1
Contact at 214-432-2000 Michael R. Haack President & CEO D. Craig Kesler Executive Vice President & CFO Alex Haddock Vice President, Investor Relations |
News For Immediate Release
EAGLE MATERIALS REPORTS RECORD FIRST QUARTER RESULTS WITH 24% EPS GROWTH
DALLAS, TX (July 27, 2023) Eagle Materials Inc. (NYSE: EXP) today reported financial results for the first quarter of fiscal 2024 ended June 30, 2023. Notable items for the quarter are highlighted below. (Unless otherwise noted, all comparisons are with the prior years fiscal first quarter):
First Quarter Fiscal 2024 Highlights
| Record Revenue of $601.5 million, up 7% |
| Record Net Earnings of $120.8 million, up 15% |
| Record Net Earnings per diluted share of $3.40, up 24% |
| Adjusted net earnings per share (Adjusted EPS) of $3.55, up 26% |
| Adjusted EPS is a non-GAAP financial measure calculated by excluding non-routine items (including certain non-cash expenses) in the manner described in Attachment 6 |
| Adjusted EBITDA of $214 million, up 16% |
| Adjusted EBITDA is a non-GAAP financial measure calculated by excluding non-routine items (including certain non-cash expenses) in the manner described in Attachment 6 |
| Repurchased approximately 484,000 shares of Eagle common stock for $74 million |
Commenting on the first quarter results, Michael Haack, President and CEO, said, Fiscal 2024 is off to a solid start for Eagle, with record revenue of $602 million, adjusted EPS of $3.55, and gross margins of 29.3%, an increase of 240 bps. Our portfolio of businesses continued to perform well, and we made progress on our strategic priorities. During the quarter, we reached an important milestone in the production of Portland Limestone Cement, surpassing 50% across our system. We completed the acquisition of a cement import terminal in northern California that further strengthens our competitive position in that market. And we returned $83 million of cash to shareholders through share repurchases and dividends, all while maintaining our balance sheet strength: at June 30, 2023, Eagles net debt was $1.1 billion, and our net adjusted leverage ratio (net debt to Adjusted EBITDA) remained at 1.4x, giving us substantial financial flexibility for continued disciplined capital allocation.
Mr. Haack continued, Looking ahead to the balance of the year, we expect demand for cement to remain steady driven by infrastructure and heavy industrial projects. Residential construction activity remains resilient as the market balances interest rate-related affordability challenges with chronic supply shortages and strong demand. Given Eagles balance sheet strength, the favorable geographic positioning of our operations, and our consistent operational and strategic execution, we are poised for a strong fiscal 2024.
Segment Financial Results
Heavy Materials: Cement, Concrete and Aggregates
Revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, Joint Venture and intersegment Cement revenue, was $396 million, a 15% improvement. Heavy Materials operating earnings increased 19% to $81 million primarily because of higher Cement sales prices and sales volume partially offset by increased maintenance costs and the effects of an extended maintenance outage at our Joint Venture.
Cement revenue, including Joint Venture and intersegment revenue, was up 16% to $329 million. Operating earnings increased 19% to $74 million reflecting higher Cement sales prices and sales volume partially offset by increased maintenance costs and the impact from the step-up in inventory values related to the Stockton Terminal Acquisition. Profitability at our Joint Venture was negatively affected by an extended outage during the quarter to address ongoing equipment issues at this facility over the past year. The extended outage resulted in increased maintenance costs and reduced production. Equipment reliability has improved in July, but additional work will need to be completed during our planned maintenance outage in fiscal 2025, which will again increase the outage timeline at the joint venture facility.
The average net Cement sales price for the quarter increased 15% to $147.27 per ton. Cement sales volume for the quarter increased 1% to 2.0 million tons. Sales volume in the quarter was affected by wet weather in the western part of the US.
Concrete and Aggregates revenue was up 9% to $67 million, reflecting increased Concrete and Aggregates prices and higher aggregates sales volume. First quarter operating earnings increased 23% to $7 million. The increase reflects higher Concrete and Aggregates net sales prices and approximately $1.2 million of additional costs incurred in the first quarter of fiscal 2023 from the step-up in inventory values related to the acquisition of an aggregates business in northern Colorado.
Light Materials: Gypsum Wallboard and Paperboard
Revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, decreased 2% to $242 million, primarily because of lower Gypsum Wallboard sales volume, partially offset by improved Gypsum Wallboard sales prices. Gypsum Wallboard sales volume declined 4% to 763 million square feet (MMSF), while the average Gypsum Wallboard net sales price increased 8% to $236.66 per MSF.
Paperboard sales volume was down 1% to 83,000 tons. The average Paperboard net sales price in the quarter was $536.56 per ton, down 12%, consistent with the pricing provisions in our long-term sales agreements that factor in lower input costs.
Operating earnings were $98 million in the Light Materials sector, an increase of 12%, reflecting higher Gypsum Wallboard sales prices and lower operating costs, most notably energy and recycled fiber.
2
Details of Financial Results
We conduct one of our cement plant operations through a 50/50 joint venture, Texas Lehigh Cement Company LP (the Joint Venture). We use 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 Ventures revenue 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 revenue as a part of a segments total revenue. Intersegment sales are eliminated on the income statement. Refer to Attachment 3 for a reconciliation of these amounts.
About Eagle Materials Inc.
Eagle Materials Inc. manufactures and distributes Portland Cement, Gypsum Wallboard, Recycled Gypsum Paperboard, and Concrete and Aggregates from more than 70 facilities across the US. Eagles corporate headquarters is in Dallas, Texas.
Eagles 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 Thursday, July 27, 2023. The conference call will be webcast simultaneously on the Eagle website, eaglematerials.com. A replay of the webcast and the presentation will be archived on the site for one year.
###
3
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 statements and generally arise when the Company is discussing its beliefs, estimates or expectations as to future events. These statements are not historical facts or guarantees of future performance but instead represent only the Companys 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 Companys 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 Companys actual performance include the following: the cyclical and seasonal nature of the Companys businesses; fluctuations in 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; the availability and fluctuations in the cost of raw materials; changes in the costs of energy, including, without limitation, natural gas, coal and oil (including diesel), and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (for example, spot market prices), governmental orders and other matters; 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; 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 and other environmental regulation); possible outcomes of pending or future litigation or arbitration proceedings; changes in economic conditions or the nature or level of activity in any one or more of the markets or industries in which the Company or its customers are engaged; severe weather conditions (such as winter storms, tornados and hurricanes) and their effects on our facilities, operations and contractual arrangements with third parties; competition; cyber-attacks or data security breaches; increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities that meet our financial return standards and fit our strategic focus; risks related to pursuit of acquisitions, joint ventures and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by the Company; general economic conditions, including inflation and recessionary conditions; and changes in interest rates and the resulting effects on the Company and demand for our products. 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) or the cost of our raw materials could affect the revenue 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 Companys result of operations. Finally, any forward-looking statements made by the Company are subject to the risks and impacts associated with natural disasters, the outbreak, escalation or resurgence of health emergencies, pandemics or other unforeseen events, including, without limitation, the COVID-19 pandemic and responses thereto designed to contain its spread and mitigate its public health effects, as well as their impact on our operations and on economic conditions, capital and financial markets. These and other factors are described in the Companys Annual Report on Form 10-K for the fiscal year ended March 31, 2023 and subsequent quarterly and annual reports upon filing. 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 Companys expectations.
For additional information, contact at 214-432-2000.
Michael R. Haack
President and Chief Executive Officer
D. Craig Kesler
Executive Vice President and Chief Financial Officer
Alex Haddock
Vice President, Investor Relations, Strategy and Corporate Development
Attachment 1 Consolidated Statement of Earnings
Attachment 2 Revenue and Earnings by Lines of Business
Attachment 3 Sales Volume, Net Sales Prices and Intersegment and Cement Revenue
Attachment 4 Consolidated Balance Sheets
Attachment 5 Depreciation, Depletion and Amortization by Lines of Business
Attachment 6 Reconciliation of Non-GAAP Financial Measures
Attachment 7 Reconciliation of Net Debt to Adjusted EBITDA
4
Attachment 1
Eagle Materials Inc.
Consolidated Statement of Earnings
(dollars in thousands, except per share data)
(unaudited)
Quarter Ended June 30, |
||||||||
2023 | 2022 | |||||||
Revenue |
$ | 601,521 | $ | 561,387 | ||||
Cost of Goods Sold |
425,526 | 410,521 | ||||||
|
|
|
|
|||||
Gross Profit |
175,995 | 150,866 | ||||||
Equity in Earnings of Unconsolidated JV |
3,159 | 5,098 | ||||||
Corporate General and Administrative Expenses |
(11,679 | ) | (11,820 | ) | ||||
Other Non-Operating Income (Expense) |
213 | (635 | ) | |||||
|
|
|
|
|||||
Earnings before Interest and Income Taxes |
167,688 | 143,509 | ||||||
Interest Expense, net |
(12,239 | ) | (7,330 | ) | ||||
|
|
|
|
|||||
Earnings before Income Taxes |
155,449 | 136,179 | ||||||
Income Tax Expense |
(34,600 | ) | (31,174 | ) | ||||
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|
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Net Earnings |
$ | 120,849 | $ | 105,005 | ||||
|
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NET EARNINGS PER SHARE |
||||||||
Basic |
$ | 3.43 | $ | 2.76 | ||||
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Diluted |
$ | 3.40 | $ | 2.75 | ||||
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AVERAGE SHARES OUTSTANDING |
||||||||
Basic |
35,274,753 | 37,982,580 | ||||||
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Diluted |
35,532,284 | 38,222,949 | ||||||
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5
Attachment 2
Eagle Materials Inc.
Revenue and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
Quarter Ended June 30, |
||||||||
2023 | 2022 | |||||||
Revenue* |
||||||||
Heavy Materials: |
||||||||
Cement (Wholly Owned) |
$ | 291,772 | $ | 251,910 | ||||
Concrete and Aggregates |
67,415 | 61,618 | ||||||
|
|
|
|
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359,187 | 313,528 | |||||||
Light Materials: |
||||||||
Gypsum Wallboard |
$ | 219,097 | $ | 216,327 | ||||
Gypsum Paperboard |
23,237 | 31,532 | ||||||
|
|
|
|
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242,334 | 247,859 | |||||||
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|
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Total Revenue |
$ | 601,521 | $ | 561,387 | ||||
|
|
|
|
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Segment Operating Earnings |
||||||||
Heavy Materials: |
||||||||
Cement (Wholly Owned) |
$ | 70,902 | $ | 57,250 | ||||
Cement (Joint Venture) |
3,159 | 5,098 | ||||||
Concrete and Aggregates |
7,034 | 5,732 | ||||||
|
|
|
|
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81,095 | 68,080 | |||||||
Light Materials: |
||||||||
Gypsum Wallboard |
$ | 90,857 | $ | 84,068 | ||||
Gypsum Paperboard |
7,202 | 3,816 | ||||||
|
|
|
|
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98,059 | 87,884 | |||||||
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Sub-total |
179,154 | 155,964 | ||||||
|
|
|
|
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Corporate General and Administrative Expense |
(11,679 | ) | (11,820 | ) | ||||
Other Non-Operating Income |
213 | (635 | ) | |||||
|
|
|
|
|||||
Earnings before Interest and Income Taxes |
$ | 167,688 | $ | 143,509 | ||||
|
|
|
|
* Excluding Intersegment and Joint Venture Revenue listed on Attachment 3
6
Attachment 3
Eagle Materials Inc.
Sales Volume, Net Sales Prices and Intersegment and Cement Revenue
(dollars in thousands, except per unit data)
(unaudited)
Sales Volume | ||||||||||||
Quarter Ended June 30, |
||||||||||||
2023 | 2022 | Change | ||||||||||
Cement (M Tons): |
||||||||||||
Wholly Owned |
1,848 | 1,805 | +2 | % | ||||||||
Joint Venture |
165 | 188 | -12 | % | ||||||||
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|
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2,013 | 1,993 | +1 | % | |||||||||
Concrete (M Cubic Yards) |
385 | 406 | -5 | % | ||||||||
Aggregates (M Tons) |
1,157 | 795 | +46 | % | ||||||||
Gypsum Wallboard (MMSFs) |
763 | 798 | -4 | % | ||||||||
Paperboard (M Tons): |
||||||||||||
Internal |
40 | 36 | +11 | % | ||||||||
External |
43 | 48 | -10 | % | ||||||||
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83 | 84 | -1 | % |
Average Net Sales Price* | ||||||||||||
Quarter Ended June 30, |
||||||||||||
2023 | 2022 | Change | ||||||||||
Cement (Ton) |
$ | 147.27 | $ | 127.82 | +15 | % | ||||||
Concrete (Cubic Yard) |
$ | 141.80 | $ | 128.73 | +10 | % | ||||||
Aggregates (Ton) |
$ | 11.30 | $ | 11.22 | +1 | % | ||||||
Gypsum Wallboard (MSF) |
$ | 236.66 | $ | 218.57 | +8 | % | ||||||
Paperboard (Ton) |
$ | 536.56 | $ | 611.87 | -12 | % |
*Net of freight and delivery costs billed to customers
Intersegment and Cement Revenue | ||||||||
Quarter Ended June 30, |
||||||||
2023 | 2022 | |||||||
Intersegment Revenue: |
||||||||
Cement |
$ | 10,137 | $ | 6,291 | ||||
Concrete and Aggregates |
3,038 | | ||||||
Paperboard |
22,091 | 22,541 | ||||||
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$ | 35,266 | $ | 28,832 | |||||
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Cement Revenue: |
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Wholly Owned |
$ | 291,772 | $ | 251,910 | ||||
Joint Venture |
27,123 | 26,315 | ||||||
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$ | 318,895 | $ | 278,225 | |||||
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7
Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
June 30, | March 31, | |||||||||||
2023 | 2022 | 2023* | ||||||||||
ASSETS |
||||||||||||
Current Assets |
||||||||||||
Cash and Cash Equivalents |
$ | 53,149 | $ | 68,281 | $ | 15,242 | ||||||
Accounts and Notes Receivable, net |
248,647 | 234,704 | 195,052 | |||||||||
Inventories |
302,525 | 233,543 | 291,882 | |||||||||
Federal Income Tax Receivable |
1,410 | 2,610 | 16,267 | |||||||||
Prepaid and Other Assets |
10,310 | 8,001 | 3,060 | |||||||||
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Total Current Assets |
616,041 | 547,139 | 521,503 | |||||||||
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Property, Plant and Equipment, net |
1,679,919 | 1,638,164 | 1,662,061 | |||||||||
Investments in Joint Venture |
89,770 | 81,235 | 89,111 | |||||||||
Operating Lease Right-of-Use Asset |
25,155 | 22,960 | 20,759 | |||||||||
Notes Receivable |
| 8,466 | 7,382 | |||||||||
Goodwill and Intangibles |
490,828 | 455,824 | 466,043 | |||||||||
Other Assets |
14,533 | 17,071 | 14,143 | |||||||||
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$ | 2,916,246 | $ | 2,770,859 | $ | 2,781,002 | |||||||
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LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||||||
Current Liabilities |
||||||||||||
Accounts Payable |
$ | 118,026 | $ | 108,578 | $ | 110,408 | ||||||
Accrued Liabilities |
75,186 | 88,280 | 86,472 | |||||||||
Income Taxes Payable |
18,304 | 24,999 | | |||||||||
Current Portion of Long-Term Debt |
10,000 | | 10,000 | |||||||||
Operating Lease Liabilities |
8,181 | 6,778 | 6,009 | |||||||||
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|||||||
Total Current Liabilities |
229,697 | 228,635 | 212,889 | |||||||||
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|||||||
Long-term Liabilities |
67,134 | 63,945 | 66,543 | |||||||||
Bank Credit Facility |
222,000 | 181,000 | 157,000 | |||||||||
Bank Term Loan |
180,000 | 200,000 | 182,500 | |||||||||
2.500% Senior Unsecured Notes due 2031 |
739,848 | 738,582 | 739,532 | |||||||||
Deferred Income Taxes |
239,156 | 234,916 | 236,844 | |||||||||
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 35,446,312; 37,894,704 and 35,768,376 Shares, respectively |
354 | 379 | 358 | |||||||||
Capital in Excess of Par Value |
| | | |||||||||
Accumulated Other Comprehensive Losses |
(3,499 | ) | (3,152 | ) | (3,547 | ) | ||||||
Retained Earnings |
1,241,556 | 1,126,554 | 1,188,883 | |||||||||
|
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|
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|
|||||||
Total Stockholders Equity |
1,238,411 | 1,123,781 | 1,185,694 | |||||||||
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|
|||||||
$ | 2,916,246 | $ | 2,770,859 | $ | 2,781,002 | |||||||
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|
*From audited financial statements
8
Attachment 5
Eagle Materials Inc.
Depreciation, Depletion and Amortization by Lines of Business
(dollars in thousands)
(unaudited)
The following table presents Depreciation, Depletion and Amortization by lines of business for the quarters ended June 30, 2023 and 2022:
Depreciation, Depletion and Amortization | ||||||||
Quarter Ended June 30, |
||||||||
2023 | 2022 | |||||||
Cement |
$ | 21,679 | $ | 20,053 | ||||
Concrete and Aggregates |
5,031 | 4,201 | ||||||
Gypsum Wallboard |
5,461 | 5,563 | ||||||
Paperboard |
3,719 | 3,717 | ||||||
Corporate and Other |
792 | 695 | ||||||
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|
|
|||||
$ | 36,682 | $ | 34,229 | |||||
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|
|
9
Attachment 6
Eagle Materials Inc.
Reconciliation of Non-GAAP Financial Measures
(unaudited)
(dollars in thousands, other than earnings per share amounts, and number of shares in thousands)
Adjusted Earnings per Diluted Share (Adjusted EPS)
Adjusted EPS is a non-GAAP financial measure and represents net earnings per diluted share excluding the impacts from non-routine items, such as purchase accounting and accelerated equity compensation (Non-routine Items). Management uses measures of earnings excluding the impact of Non-routine Items as a performance measure in order to compare operating results of the Company from period to period and for purposes of its budgeting and planning processes. Although management believes that Adjusted EPS is useful in evaluating the Companys business, this information should be considered as supplemental in nature and is not meant to be considered in isolation, or as a substitute for, earnings per diluted share and the related financial information prepared in accordance with GAAP. In addition, our presentation of Adjusted EPS may not be the same as similarly titled measures reported by other companies, limiting its usefulness as a comparative measure. The following shows the calculation of Adjusted EPS and reconciles Adjusted EPS to net earnings per diluted share in accordance with GAAP for the quarters ended June 30, 2023 and 2022:
Quarter Ended June 30, |
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2023 | 2022 | |||||||
Net Earnings, as reported |
$ | 120,849 | $ | 105,005 | ||||
Non-routine Items: |
||||||||
Purchase accounting 1 |
$ | 3,461 | $ | 1,200 | ||||
Accelerated Equity Compensation due to executive retirements 2 |
3,351 | 2,250 | ||||||
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|
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Total Non-routine Items before Taxes |
$ | 6,812 | $ | 3,450 | ||||
Tax Impact on Non-routine Items |
(1,516 | ) | (790 | ) | ||||
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|
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After-tax Impact of Non-routine Items |
$ | 5,296 | $ | 2,660 | ||||
Adjusted Net Earnings |
$ | 126,145 | $ | 107,665 | ||||
Diluted Average Shares Outstanding |
35,532 | 38,223 | ||||||
Net earnings per diluted share, as reported |
$ | 3.40 | $ | 2.75 | ||||
Adjusted net earnings per diluted share (Adjusted EPS) |
$ | 3.55 | $ | 2.82 |
1 Represents the impact of purchase accounting on inventory costs and related business development costs
2 Represents additional equity compensation costs associated with the retirement of two senior executives during the respective quarters
10
Attachment 6, continued
EBITDA and Adjusted EBITDA
We present Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA to provide more consistent comparison of operating performance from period to period. EBITDA is a non-GAAP financial measure that provides supplemental information regarding the operating performance of our business without regard to financing methods, capital structures or historical cost basis. Adjusted EBITDA is also a non-GAAP financial measure that further excludes the impact from non-routine items. Management uses EBITDA and Adjusted EBITDA as alternative bases for comparing the operating performance of Eagle from period to period and for purposes of its budgeting and planning processes. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate Adjusted EBITDA in the same manner. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as an alternative to net income, cash flow from operations or any other measure of financial performance or liquidity in accordance with GAAP. The following shows the calculation of EBITDA and Adjusted EBITDA and reconciles them to net earnings in accordance with GAAP for the quarters ended June 30, 2023 and 2022 and the trailing twelve months ended June 30, 2023 and March 31, 2023:
Quarter Ended | Twelve Months Ended | |||||||||||||||
June 30, | June 30, | March 31, | ||||||||||||||
2023 | 2022 | 2023 | 2023 | |||||||||||||
Net Earnings, as reported |
$ | 120,849 | $ | 105,005 | $ | 477,384 | $ | 461,540 | ||||||||
Income Tax Expense |
34,600 | 31,174 | 130,479 | 127,053 | ||||||||||||
Interest Expense |
12,239 | 7,330 | 40,080 | 35,171 | ||||||||||||
Depreciation, Depletion and Amortization |
36,682 | 34,229 | 141,007 | 138,554 | ||||||||||||
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EBITDA |
$ | 204,370 | $ | 177,738 | $ | 788,950 | $ | 762,318 | ||||||||
Purchase accounting 1 |
3,461 | 1,200 | 4,328 | 2,067 | ||||||||||||
Stock-based Compensation 2 |
6,457 | 5,146 | 18,466 | 17,155 | ||||||||||||
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Adjusted EBITDA |
$ | 214,288 | $ | 184,084 | $ | 811,744 | $ | 781,540 |
1 Represents the impact of purchase accounting on inventory costs and related business development costs
2 The increase in stock-based compensation is due to the retirement of two senior executives during the quarter
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Attachment 7
Eagle Materials Inc.
Reconciliation of Net Debt to Adjusted EBITDA
(unaudited)
(dollars in thousands)
GAAP does not define Net Debt and it should not be considered as an alternative to cash flow or liquidity measures defined by GAAP. We define Net Debt as total debt minus cash and cash equivalents to indicate the amount of total debt that would remain if the Company applied the cash and cash equivalents held by it to the payment of outstanding debt. The Company also uses Net Debt to Adjusted EBITDA, which it defines as Net Debt divided by Adjusted EBITDA for the trailing twelve months, as a metric of its current leverage position. We present this metric for the convenience of the investment community and rating agencies who use such metrics in their analysis, and for investors who need to understand the metrics we use to assess performance and monitor our cash and liquidity positions.
As of June 30, 2023 |
As of March 31, 2023 |
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Total debt, excluding debt issuance costs |
$ | 1,162,000 | $ | 1,099,500 | ||||
Cash and cash equivalents |
53,149 | 15,242 | ||||||
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Net Debt |
$ | 1,108,851 | $ | 1,084,258 | ||||
Trailing Twelve Months Adjusted EBITDA |
$ | 811,744 | $ | 781,540 | ||||
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Net Debt to Adjusted EBITDA |
1.4x | 1.4x | ||||||
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