DALLAS--(BUSINESS WIRE)-- Eagle Materials Inc. (NYSE: EXP) today reported financial results for the second quarter of fiscal 2014 which ended September 30, 2013. Notable items for the quarter in relation to the prior-year's second quarter include:

• Revenues of $252.6 million, up 53%
• Earnings before interest and income taxes of $63.5 million, up 114%
• Net earnings per diluted share of $0.80, up 100%

Sales volumes improved across all business lines, with cement volumes setting a quarterly record at 1.4 million tons. Net sales prices strengthened across nearly all businesses, with wallboard sales prices increasing 21% over the prior year's second quarter. Quarterly revenue and earnings improvement also reflects the acquisition of assets, primarily two cement plants in Missouri and Oklahoma and the related aggregates and ready-mix businesses in Kansas City (the Acquired Assets) on November 30, 2012.

Cement, Concrete and Aggregates

Operating earnings from Cement for the second quarter were $32.4 million, an 86% increase from the same quarter a year ago. The earnings increase resulted from increased sales volumes and average net cement sales prices.

Cement revenues for the quarter, including joint venture and intersegment revenues, totaled $133.2 million, 70% greater than the same quarter last year. The revenue improvement reflects a 66% increase in our second quarter Cement sales volume, including sales volumes attributable to the Acquired Assets. Our average net cement sales price this quarter was $85.34 per ton, 3% higher than the same quarter last year.

Concrete and Aggregates reported a small operating loss for the second quarter, an improvement from the same quarter a year ago.

Gypsum Wallboard and Paperboard

Gypsum Wallboard and Paperboard's second quarter operating earnings of $36.8 million were up 52% compared to the same quarter last year. Improved Gypsum Wallboard net sales prices were the primary driver of the quarterly earnings increase. Additional contribution came from improved sales volumes in both wallboard and paperboard.

Gypsum Wallboard and Paperboard revenues for the second quarter totaled $120.0 million, a 24% increase from the same quarter a year ago. The revenue increase reflects primarily higher wallboard average net sales prices and improved gypsum wallboard and paperboard sales volumes.

The average gypsum wallboard net sales price for the second quarter was $144.05 per MSF, 21% greater than the same quarter a year ago. Gypsum Wallboard sales volume for the quarter of 554 million square feet (MMSF) represents an 11% increase from the same quarter last year. The average Paperboard net sales price for this quarter was $507.28 per ton, 1% lower than the same quarter a year ago. Paperboard sales volumes for the quarter were 67,000 tons, 8% higher than the same quarter a year ago.

Details of Financial Results

For information regarding the results of operations for the Acquired Assets for certain periods prior to November 30, 2012, including pro forma financial information that combines the results of operations for Eagle and the Acquired Assets, please see our Form 8-K/A filed on April 26, 2013. The increase in our average shares outstanding at September 30, 2013 is primarily due to the impact of our follow-on equity offering related to the Acquired Assets, which was completed on October 3, 2012.

The prior year's second quarter results include Acquisition and Litigation Expenses related primarily to the acquisition of the Acquired Assets and litigation costs related to our lawsuit against the IRS. The total impact from these non-routine items was $5.7 million (pre-tax), or $0.09 per diluted share (after-tax).

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 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 in the Company for making operating decisions and assessing performance. Attachment 3 shows the proportional consolidation of our Cement revenues.

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, Frac Sand, Concrete and Aggregates 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 Thursday, October 31, 2013. The conference call will be webcast simultaneously on the Eagle website 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; 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. With respect to our acquisition of the Acquired Assets as described in this press release, 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, the risk that we may not be able to integrate the Acquired Assets in an efficient and cost-effective manner with our other assets and operations, the possible inability to realize synergies or other expected benefits of the transaction, the possibility that we may incur significant costs relating to transition or integration activities or repair and maintenance of the Acquired Assets, the discovery of undisclosed liabilities associated with the business, the need to repay the indebtedness incurred to fund the acquisition and the fact that increased debt may limit our ability to respond to any changes in general economic and business conditions that occur after the acquisition. These and other factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2013 and in its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2013. 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.

Attachment 1 Statement of Consolidated Earnings
Attachment 2 Revenues and Earnings by Lines of Business (Quarter and Six 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 September 30,										Six Months Ended September 30,
					2013					2012					2013					2012
Revenues					$	252,646				$	164,659				$	479,690				$	318,701
Cost of Goods Sold						193,167					132,170					373,607					263,315
Gross Profit						59,479					32,489					106,083					55,386
Equity in Earnings of Unconsolidated JV						9,747					8,750					17,625					15,218
Other, net						317					66					900					(204	)
Acquisition and Litigation Expense						-					(5,713	)				-					(6,374	)
Corporate General and Administrative Expenses						(6,060	)				(5,919	)				(11,654	)				(10,674	)
Earnings before Interest and Income Taxes						63,483					29,673					112,954					53,352
Interest Expense, net						(4,795	)				(3,548	)				(9,750	)				(7,313	)
Earnings before Income Taxes						58,688					26,125					103,204					46,039
Income Tax Expense						(18,785	)				(8,172	)				(33,200	)				(14,108	)
Net Earnings					$	39,903				$	17,953				$	70,004				$	31,931
EARNINGS PER SHARE
Basic					$	0.81				$	0.40				$	1.43				$	0.71
Diluted					$	0.80				$	0.40				$	1.40				$	0.71
AVERAGE SHARES OUTSTANDING
Basic						49,012,045					44,746,225					48,984,038					44,708,499
Diluted						49,860,100					45,353,778					49,835,382					45,219,224

Eagle Materials Inc.
Attachment 2
Eagle Materials Inc.
Revenues and Segment Operating Earnings by Lines of Business
(dollars in thousands)
(unaudited)
						Quarter Ended September 30,										Six Months Ended September 30,
						2013					2012					2013					2012
Revenues*
Gypsum Wallboard and Paperboard:
Gypsum Wallboard						$	98,960				$	77,327				$	194,941				$	147,547
Gypsum Paperboard							20,992					19,215					39,943					38,622
							119,952					96,542					234,884					186,169
Cement (Wholly Owned)							102,871					54,105					190,175					105,855
Concrete and Aggregates							29,823					14,012					54,631					26,677
Total						$	252,646				$	164,659				$	479,690				$	318,701
Segment Operating Earnings
Gypsum Wallboard and Paperboard:
Gypsum Wallboard						$	29,868				$	16,464				$	59,504				$	30,486
Gypsum Paperboard							6,937					7,695					12,616					12,971
							36,805					24,159					72,120					43,457
Cement:
Wholly Owned							22,683					8,692					33,815					12,090
Joint Venture							9,747					8,750					17,625					15,218
							32,430					17,442					51,440					27,308
Concrete and Aggregates							(9	)				(362	)				148					(161	)
Other, net							317					66					900					(204	)
Sub-total							69,543					41,305					124,608					70,400
Acquisition and Litigation Expenses							-					(5,713	)				-					(6,374	)
Corporate General and Administrative Expenses							(6,060	)				(5,919	)				(11,654	)				(10,674	)
Earnings Before Interest and Income Taxes						$	63,483				$	29,673				$	112,954				$	53,352
* 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 September 30,											Six Months Ended September 30,
				2013			2012			Change					2013			2012			Change
Gypsum Wallboard (MMSF's)				554			500			+11	%				1,086			957			+13	%
Cement (M Tons):
Wholly Owned				1,182			639			+85	%				2,161			1,260			+72	%
Joint Venture				252			225			+12	%				514			452			+14	%
				1,434			864			+66	%				2,675			1,712			+56	%
Paperboard (M Tons):
Internal				26			23			+13	%				52			43			+21	%
External				41			39			+5	%				79			79			0	%
				67			62			+8	%				131			122			+7	%
Concrete (M Cubic Yards)				265			141			+88	%				492			278			+77	%
Aggregates (M Tons)				1,006			810			+24	%				1,915			1,462			+31	%

				Average Net Sales Price*
				Quarter Ended September 30,													Six Months Ended September 30,
				2013				2012				Change					2013				2012				Change
Gypsum Wallboard (MSF)				$	144.05			$	119.44			+21	%				$	145.15			$	119.09			+22	%
Cement (Ton)				$	85.34			$	82.77			+3	%				$	85.72			$	81.92			+5	%
Paperboard (Ton)				$	507.28			$	512.12			-1	%				$	504.92			$	507.57			-1	%
Concrete (Cubic Yard)				$	82.15			$	66.83			+23	%				$	80.68			$	66.07			+22	%
Aggregates (Ton)				$	7.87			$	6.01			+31	%				$	7.85			$	6.00			+31	%
*Net of freight and delivery costs billed to customers.

					Intersegment and Cement Revenues
					Quarter Ended September 30,									Six Months Ended September 30,
					2013				2012					2013				2012
Intersegment Revenues:
Cement					$	2,955			$	512				$	4,947			$	1,079
Paperboard						13,650				12,515					26,862				23,437
Concrete and Aggregates						274				245					672				457
					$	16,879			$	13,272				$	32,481			$	24,973
Cement Revenues:
Wholly Owned					$	102,871			$	54,105				$	190,175			$	105,855
Joint Venture						27,378				23,916					55,782				47,623
					$	130,249			$	78,021				$	245,957			$	153,478

Eagle Materials Inc.
Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
					September 30,										March 31,
						2013					2012				2013*
ASSETS
Current Assets —
Cash and Cash Equivalents					$	10,628				$	8,149				$	3,897
Accounts and Notes Receivable, net						119,748					74,066					87,543
Inventories						162,094					109,004					156,380
Federal Income Tax Receivable						-				-						2,443
Prepaid and Other Assets						8,235					2,588					11,008
Total Current Assets						300,705					193,807					261,271
Property, Plant and Equipment —						1,636,244					1,149,075					1,599,992
Less: Accumulated Depreciation						(646,142	)				(584,773	)				(614,268	)
Property, Plant and Equipment, net						990,102					564,302					985,724
Investments in Joint Venture						40,071					39,908					42,946
Notes Receivable						3,488					3,316					3,893
Goodwill and Intangibles						161,432					150,584					162,400
Other Assets						14,377					22,971					19,999
					$	1,510,175				$	974,888				$	1,476,233
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities —
Accounts Payable					$	50,878				$	34,730				$	58,880
Accrued Liabilities						40,785					42,602					41,349
Federal Income Tax Payable						10,028					11,455				-
Current Portion of Long-term Debt						-					4,677				-
Total Current Liabilities						101,691					93,464					100,229
Long-term Liabilities						53,334					39,747					51,547
Bank Credit Facility						263,000					20,000					297,000
Senior Notes						192,259					192,259					192,259
Deferred Income Taxes						135,571					127,307					139,028
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 49,675,688; 45,438,711 and
49,503,496 Shares, respectively.						497					454					495
Capital in Excess of Par Value						231,836					44,208					224,053
Accumulated Other Comprehensive Losses						(6,732	)				(5,284	)				(7,042	)
Retained Earnings						538,719					462,733					478,664
Total Stockholders' Equity						764,320					502,111					696,170
					$	1,510,175				$	974,888				$	1,476,233
*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.

News Provided by Acquire Media