DALLAS, Jan. 19 /PRNewswire-FirstCall/ -- Centex Construction Products,
Inc. (NYSE: CXP) today reported financial results for the quarter and nine
months ended December 31, 2003, the third quarter and nine months of fiscal
year 2004. CXP produces and distributes Cement, Gypsum Wallboard, Recycled
Paperboard, and Concrete and Aggregates. CXP is currently 64.6%-owned by
Centex Corporation.
CXP's senior management will conduct a conference call to discuss the
financial results and other matters at 11 a.m. Eastern Time (10 a.m. Central
Time) on Tuesday, January 20, 2004. The conference call will be webcast
simultaneously on the CXP Web site, http://www.centex-cxp.com . A replay of
the webcast and the presentation will be archived on that site for one year.
For more information, contact CXP at 214-981-6565.
For the quarter ended December 31, 2003, CXP's net earnings increased 17%
to $18,003,000 or $0.95 per diluted share from $15,378,000 or $0.83 per
diluted share for the same quarter last year. Increased Gypsum Wallboard and
Concrete/Aggregates operating earnings and decreased interest expense were
partially offset by lower Cement and Paperboard operating earnings and costs
related to the spin-off by Centex Corporation to its stockholders of its 64%
ownership stake in CXP. Spin-off related costs for the quarter and nine
months were $0.04 and $0.07 per diluted share, respectively. Revenues for the
third quarter this year totaled $121,319,000, 19% greater than $101,880,000
for the same quarter a year ago.
For the nine months ended December 31, 2003, CXP's net earnings and
diluted earnings per share were $50,790,000 or $2.72 per diluted share, 5%
greater than $48,220,000 or $2.60 per diluted share for the same period a year
ago. Revenues for this year's nine-month period of $380,358,000 were 16%
greater than $327,525,000 for the same period in the prior fiscal year.
The Company has changed the method of accounting for its cement joint
ventures from the proportionate consolidation method to the equity method of
accounting. The change had no effect on the Company's earnings before income
taxes, net earnings, earnings per share or retained earnings. Under the
equity method of accounting, the Company's statements of earnings now includes
a single line item entitled "Equity in Earnings of Unconsolidated Joint
Ventures" which reflects the Company's 50% interest in the results of
operations of its cement joint ventures. Similarly, the Company's balance
sheets now include a single line item entitled "Investment in Joint Ventures"
which reflects the Company's 50% interest in the net assets of the cement
joint ventures.
CEMENT
Cement revenues for this year's third quarter totaled $24.0 million, level
with $24.0 million for the same quarter a year ago. Operating earnings from
Cement, which includes the equity in earnings of unconsolidated joint ventures
of $7.2 million and $7.0 million, respectively, declined 7% to $13.5 million
for the quarter this year from $14.4 million for the same quarter last year.
The earnings decline was due to lower net sales prices and increased
maintenance and energy costs, partially offset by higher sales volume.
Cement sales volume for the third quarter totaled 620,000 tons, 8% above
576,000 tons for the same quarter last year. Purchased cement sales volume of
74,500 tons for this year's third quarter was 116% greater than purchased
cement sales volume for the third quarter a year ago. Cement consumption
remains at a high level and CXP expects fiscal 2004 to be the Company's
eighteenth consecutive "sold-out" year. CXP's average Cement net sales price
for the quarter this year of $65.72 per ton was 2% less than $66.77 per ton
for the same quarter a year ago.
For the current nine months, revenues from Cement were $84.0 million, up
3% from $81.6 million for the same period a year ago. Operating earnings from
Cement, which includes the equity in earnings of unconsolidated joint ventures
of $18.9 million and $20.5 million, respectively, were $41.3 million for the
nine months this year, 11% below $46.7 million for the similar period in
fiscal 2003. The earnings decrease was due to lower net sales prices and
increased cost of sales being partially offset by higher sales volume. The
average nine-month sales price was $66.33 per ton this year, 2% below
$67.62 per ton for the same period last year.
Cement sales volume of 2,014,000 tons for the nine months this year was 6%
greater than 1,898,000 tons sold for the same period in fiscal 2003.
Purchased Cement sales volume of 194,600 tons for this year's nine-month
period was 34% greater than purchased Cement sales volume for the same period
a year ago.
GYPSUM WALLBOARD
Gypsum Wallboard revenues for the quarter totaled $66.9 million, a 36%
increase over $49.3 million for the same quarter a year ago. Gypsum Wallboard
reported third quarter operating earnings of $9.6 million, up 44% from
$6.7 million in operating earnings for the same quarter last year. The
earnings gain for the quarter resulted from higher sales volume at higher
margins. The average net sales price for this year's third quarter was
$86.41 per thousand square feet (MSF), 3% below $89.03 per MSF for the same
quarter last year. The margin increased 6% because of lower paper costs and
the positive impact on fixed costs from increased production volume exceeded
the sales price decline.
Gypsum Wallboard sales volume of 599 million square feet (MMSF) for this
year's quarter was 36% above the 440 MMSF sold during the third quarter last
year. According to the Gypsum Association, U.S. wallboard consumption for
calendar 2003 was 31.7 billion square feet, up 6% from calendar 2002.
For the current nine months, Gypsum Wallboard revenues were
$197.3 million, a 26% increase from $156.2 million for the same period a year
ago. For the current nine-month period, Gypsum Wallboard reported
$22.4 million in operating earnings, down 8% from $24.3 million in operating
earnings reported for the same period in fiscal 2003. Lower net sales prices
were partially offset by increased sales volume.
Gypsum Wallboard sales volume of 1,805 MMSF for the current nine months
was 30% greater than the 1,385 MMSF sold for the same period last year. The
average net sales price for the nine-month period this year was $84.27 per
MSF, 7% below $90.33 per MSF for the same period a year ago.
PAPERBOARD
CXP's Paperboard operation reported third quarter net revenues of
$14.5 million, down 7% from net revenues of $15.6 million for last year's
third quarter. Paperboard operating earnings of $4.7 million for the quarter
this year were 12% below $5.3 million for the third quarter a year ago. The
earnings decline resulted from lower net sales prices and increased production
costs, partially offset by higher sales volume.
For this year's third quarter, total Paperboard sales volume was
63,000 tons, up 15% from last year's total sales volume of 55,000 tons. This
year's third quarter average net sales price of $410.77 per ton was 4% below
last year's third quarter net sales price of $428.46 per ton.
Paperboard net revenues for the nine months this year were $47.3 million,
a 7% improvement over net revenues of $44.3 million for the same period last
year. For the nine months, Paperboard operating earnings were $15.4 million,
up 29% from $11.9 million for the same period last year due to increased sales
volume and lower cost of sales. Total Paperboard sales volume for the current
nine months was 199,000 tons at an average net sales price of $409.50 per ton,
compared to 166,000 tons at an average net sales price of $404.43 for the same
period last year. All of the sales volume gain for the quarter and nine
months resulted from increased sales to CXP's wallboard plants.
CONCRETE AND AGGREGATES
Revenues from the Concrete and Aggregates segment were $15.0 million for
the quarter, 19% greater than $12.6 million for the third quarter a year ago.
Concrete and Aggregates reported a $1.5 million operating profit for this
year's third quarter versus a $305,000 operating profit for the same quarter
last year. The earnings gain was primarily due to increased Aggregates sales
prices and lower Concrete and Aggregates cost of sales.
Concrete sales volume for the third quarter this year was 177,000 cubic
yards, a 17% increase over 151,000 cubic yards for the same quarter last year.
CXP's average Concrete net sales price of $52.96 per cubic yard for the
current quarter was 1% below $53.68 per cubic yard for the same quarter a year
ago.
CXP's Aggregates operation reported sales volume of 1,092,000 tons for the
quarter, 26% greater than sales volume of 868,000 tons for the same quarter
last year. The average net sales price of $5.18 per ton for the current
quarter was 4% higher than $5.00 per ton last year.
Concrete and Aggregates revenues for the nine months this year were
$49.8 million, 15% higher than $43.5 million for the same period last year.
Concrete and Aggregates reported an operating profit of $5.6 million for the
current nine months compared to a $410,000 operating loss for the same period
in fiscal 2003. The gain was due to increased Concrete sales volume, higher
Aggregates net sales prices and $2.6 million of costs associated with the
Georgetown plant closure last year.
Concrete sales volume of 610,000 cubic yards for this year's nine-month
period was 17% greater than 522,000 cubic yards for the same period last year.
Concrete's average net sales price of $52.59 per cubic yard for the current
nine months was 2% lower than last year's nine months average net sales price
of $53.92 per cubic yard.
Aggregates sales volume of 3,426,000 tons was 2% greater than 3,366,000
tons for the nine months last year. The average net sales price of CXP's
Aggregates was $5.23 per ton for the nine-month period this year, 19% greater
than last year's sales price of $4.39 per ton.
OTHER DEVELOPMENTS
On November 5, 2003, the Company's Board of Directors approved an increase
in its annual cash dividend from $0.20 per share to $1.20 per share
(representing an increase in the regular quarterly cash dividend from $0.05 to
$0.30 per share), effective upon the completion of the spin-off of CXP shares
owned by Centex Corporation. This 500% increase reflects the Board's
confidence in CXP's financial strength and ability to pay the enhanced
dividend from CXP's cash flow without materially impacting its ability to take
advantage of future growth opportunities. The increased cash dividend becomes
effective with the first quarterly cash dividend following the completion of
the spin-off.
On January 8, 2004, CXP's stockholders approved a proposal to reclassify
its shares of common stock into two classes, paving the way for the spin-off
of all of the CXP shares owned by Centex Corporation. When the spin-off is
completed, it is anticipated that Centex stockholders will receive
approximately .19 shares of CXP common stock for each share of Centex common
stock (consisting of approximately .15 shares of CXP's new Class B common
stock and .04 shares of CXP's existing class of common stock). Also, at its
Special Meeting of Stockholders held on January 8, 2004, all of the other
eight proposals were approved by the required vote of stockholders.
In connection with the spin-off, CXP will also pay a special one-time cash
dividend of $6.00 per share to all of its shareholders (including Centex)
immediately prior to the spin-off. The record date for the cash dividend was
January 13, 2004 and payment is scheduled for January 29, 2004. It is
anticipated that the distribution of the CXP shares owned by Centex will take
place on January 30, 2004. Immediately after the spin-off, CXP's debt is
expected to be approximately $85 million resulting in a debt-to-capitalization
ratio of approximately 17%.
Upon the completion of the distribution on January 30, 2004, CXP will also
change its name to Eagle Materials Inc., and after the distribution, the
Company's shares will be traded on the NYSE under the symbols "EXP" and
"EXP.B".
OUTLOOK
Cement and Wallboard consumption for the remainder of fiscal year 2004 and
for fiscal year 2005 are predicted to remain at near record high levels. A
Wallboard price increase of 10% was implemented during the first week of
January 2004. Price increases in all of CXP cement markets have been
announced. Despite high natural gas costs, wallboard production costs have
declined due to the impact of increased production volume on fixed costs. The
company expects to report fiscal year 2004 earnings ranging from $3.35 per
diluted share to $3.45 per diluted share (including costs related to the spin-
off). Fiscal year 2005 earnings are expected to range from $3.70 per diluted
share to $3.90 per diluted share.
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
guarantees of future performance and involve a number of risks and
uncertainties. 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; availability of raw materials;
unexpected operational difficulties; governmental regulation and changes in
governmental and public policy; 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; general economic
conditions; and interest rates. These and other factors are described in the
Annual Report on Form 10-K/A for Centex Construction Products, Inc. for the
fiscal year ended March 31, 2003 and in its Quarterly Report on Form 10-Q for
the fiscal quarter ended September 30, 2003. These reports are filed with the
Securities and Exchange Commission.
(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
Centex Construction Products, Inc.
Attachment 1
Centex Construction Products, Inc.
Summary of Consolidated Earnings
(dollar amounts in thousands, except per share data)
(unaudited)
Quarter Ended December 31,
2003 2002 Change
(Restated)*
Revenues $121,319 $101,880 +19%
Earnings Before Income Taxes $27,481 $23,122 +19%
Net Earnings $18,003 $15,378 +17%
Earnings Per Share:
- Basic $0.96 $0.84 +14%
- Diluted $0.95 $0.83 +14%
Average Shares Outstanding:
- Basic 18,670,273 18,370,656 +2%
- Diluted 18,848,490 18,448,901 +2%
Nine Months Ended December 31,
2003 2002 Change
(Restated)*
Revenues $380,358 $327,525 +16%
Earnings Before Income Taxes $77,530 $72,501 +7%
Net Earnings $50,790 $48,220 +5%
Earnings Per Share:
- Basic $2.74 $2.62 +5%
- Diluted $2.72 $2.60 +5%
Average Shares Outstanding:
- Basic 18,513,417 18,431,861 ---
- Diluted 18,655,265 18,548,292 +1%
* The Company has restated its consolidated financial statements to
reflect a change in the method of accounting for the cement joint
ventures from the proportionate consolidation method to the equity
method of accounting. The restatement had no impact on earnings before
income taxes, net earnings, earnings per share or retained earnings.
Centex Construction Products, Inc.
Attachment 2
Centex Construction Products, Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
Quarter Ended December 31,
2003 2002 Change
Revenues* (Restated)**
Cement (Wholly Owned) $24,011 $24,032 ---
20% 24%
Gypsum Wallboard 66,924 49,288 +36%
55% 48%
Paperboard 14,485 15,562 -7%
12% 15%
Concrete & Aggregates 14,962 12,572 +19%
12% 13%
Other, net 937 426 +120%
1% ---
Total $121,319 $101,880 +19%
100% 100%
Operating Earnings
Cement:
Wholly Owned $6,256 $7,403
Joint Ventures 7,213 7,040
13,469 14,443 -7%
45% 53%
Gypsum Wallboard 9,622 6,694 +44%
32% 25%
Paperboard 4,682 5,307 -12%
15% 19%
Concrete & Aggregates 1,516 305 +397%
5% 1%
Other, net 937 426 +120%
3% 2%
Total Operating Earnings 30,226 27,175 +11%
100% 100%
Corporate General Expenses (1,472) (1,416)
Spin-Off Expenses (581) ---
Interest Expense, net (692) (2,637)
Earnings Before Income Taxes $27,481 $23,122 +19%
* Net of Intersegment and Joint Venture Revenues listed on Attachment 4.
** The Company has restated its consolidated financial statements to
reflect a change in the method of accounting for the cement joint
ventures from the proportionate consolidation method to the equity
method of accounting. The restatement had no impact on earnings
before income taxes, net earnings, earnings per share or retained
earnings.
Centex Construction Products, Inc.
Attachment 3
Centex Construction Products, Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
Nine Months Ended December 31,
2003 2002 Change
Revenues* (Restated)**
Cement (Wholly Owned) $83,969 $81,596 +3%
22% 25%
Gypsum Wallboard 197,275 156,210 +26%
52% 48%
Paperboard 47,336 44,296 +7%
12% 14%
Concrete & Aggregates 49,812 43,478 +15%
13% 13%
Other, net 1,966 1,945 +1%
1% ---
Total $380,358 $327,525 +16%
100% 100%
Operating Earnings
Cement:
Wholly Owned $22,419 $26,215
Joint Ventures 18,909 20,458
41,328 46,673 -11%
48% 55%
Gypsum Wallboard 22,441 24,281 -8%
26% 29%
Paperboard 15,355 11,929 +29%
18% 14%
Concrete & Aggregates 5,568 (410) +1458%
6% ---
Other, net 1,966 1,945 +1%
2% 2%
Total Operating Earnings 86,658 84,418 +3%
100% 100%
Corporate General Expenses (4,422) (4,198)
Spin-Off Expenses (1,567) ---
Interest Expense, net (3,139) (7,719)
Earnings Before Income Taxes $77,530 $72,501 +7%
* Net of Intersegment and Joint Venture Revenues listed on Attachment 4.
** The Company has restated its consolidated financial statements to
reflect a change in the method of accounting for the cement joint
ventures from the proportionate consolidation method to the equity
method of accounting. The restatement had no impact on earnings
before income taxes, net earnings, earnings per share or retained
earnings.
Centex Construction Products, Inc.
Attachment 4
Centex Construction Products, Inc.
Sales Volume, Net Sales Prices and Intersegment and Joint Venture Revenues
(unaudited)
Sales Volume
Quarter Ended Nine Months Ended
December 31, December 31,
2003 2002 2003 2002
Cement (M Tons):
Wholly Owned 314 309 1,095 1,047
Joint Ventures 306 267 919 851
620 576 2,014 1,898
Gypsum Wallboard (MMSF's) 599 440 1,805 1,385
Paperboard (M Tons):
External 36 38 120 116
Internal 27 17 79 50
63 55 199 166
Concrete (M Cubic Yards) 177 151 610 522
Aggregates (M Tons) 1,092 868 3,426 3,366
Average Net Sales Price*
Quarter Ended Nine Months Ended
December 31, December 31,
2003 2002 2003 2002
Cement (Ton) $65.72 $66.77 $66.33 $67.62
Gypsum Wallboard (MSF) $86.41 $89.03 $84.27 $90.33
Paperboard (Ton) $410.77 $428.46 $409.50 $404.43
Concrete (Cubic Yards) $52.96 $53.68 $52.59 $53.92
Aggregates (Ton) $5.18 $5.00 $5.23 $4.39
* Net of freight and delivery costs billed to customers.
Intersegment and Cement Revenues
Quarter Ended Nine Months Ended
December 31, December 31,
2003 2002 2003 2002
(dollars in thousands)
Intersegment Revenues:
Cement $705 $998 $2,652 $3,114
Paperboard 12,085 8,255 35,771 23,072
Concrete and
Aggregates 246 182 842 493
$13,036 $9,435 $39,265 $26,679
Cement Revenues:
Wholly Owned $24,011 $24,032 $83,969 $81,596
Joint Ventures 19,974 17,209 59,822 56,333
$43,985 $41,241 $143,791 $137,929
Centex Construction Products, Inc.
Attachment 5
Centex Construction Products, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
December 31, March 31,
ASSETS 2003 2002 2003*
(Restated) (Restated)**
Current Assets:
Cash and Cash Equivalents $29,376 $16,145 $6,795
Accounts and Notes
Receivable, net 42,460 37,191 42,209
Inventories 44,049 44,440 49,138
Total Current Assets 115,885 97,776 98,142
Property, Plant and Equipment 713,600 710,171 708,998
Less Accumulated
Depreciation (227,936) (202,293) (207,810)
Property, Plant and
Equipment, net 485,664 507,878 501,188
Investment in Joint Ventures 50,150 50,868 53,741
Notes Receivable, net 118 157 190
Goodwill 40,290 40,197 40,290
Other Assets 12,692 10,450 12,804
$704,799 $707,326 $706,355
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable and
Accrued Liabilities $64,966 $60,948 $65,475
Notes Payable 0 23,456 25,257
Current Portion of
Long-term Debt 80 76,080 80
Total Current Liabilities 65,046 160,484 90,812
Long-term Debt 80 670 55,590
Deferred Income Taxes 96,001 74,683 80,342
Stockholders' Equity -
Common Stock, Par Value $0.01;
Authorized 50,000,000 Shares;
Issued and Outstanding
18,798,289, 18,376,095 and
18,379,558 Shares,
respectively 188 184 184
Capital in Excess of Par
Value 30,351 14,049 14,228
Unamortized Value of
Restricted Stock (650) 0 0
Accumulated Other
Comprehensive Losses (1,703) (1,757) (2,282)
Retained Earnings 515,486 459,013 467,481
Total Stockholders' Equity 543,672 471,489 479,611
$704,799 $707,326 $706,355
* From Audited Financial Statements.
** The Company has restated its consolidated financial statements to
reflect a change in the method of accounting for the cement joint
ventures from the proportionate consolidation method to the equity
method of accounting. The restatement had no impact on earnings
before income taxes, net earnings, earnings per share or retained
earnings.
SOURCE Centex Construction Products, Inc.
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Related links:
http://www.centex-cxp.com
CONTACT:
Steven R. Rowley, President and Chief
Executive Officer, or Arthur R. Zunker, Jr., Senior Vice
President and Chief Financial Officer, both of Centex
Construction Products, Inc., +1-214-981-5000
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