- Wallboard Average Net Sales Price Increased 23%
- Cement Sales Volume Increased 14%
- Wallboard Sales Volume Increased 9%
- FY 2005 EPS Guidance Increased 5% to $5.00 - $5.50 Per Diluted Share
Based on Price Improvement in Both Wallboard and Cement
DALLAS, July 26 /PRNewswire-FirstCall/ -- Eagle Materials Inc.
(NYSE: EXP and EXP.B) today reported financial results for the first quarter
of Fiscal 2005 ended June 30, 2004. EXP produces and distributes Cement,
Gypsum Wallboard, Recycled Paperboard, and Concrete and Aggregates.
EXP's senior management will conduct a conference call to discuss the
financial results, forward looking information and other matters at 3:00 p.m.
Eastern Time (2:00 p.m. Central Time) on Monday, July 26, 2004. 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.
For the quarter ended June 30, 2004, EXP's net earnings increased 63% to
$23,213,000 or $1.23 per diluted share from $14,223,000 or $0.77 per diluted
share for the same quarter last year. Continued strong construction activity
increased EXP's revenues for the first quarter this year to $150,291,000, 21%
greater than $124,403,000 for the same quarter a year ago.
CEMENT
The data for Cement includes combined results of EXP's wholly owned
operations and its 50% share of the two unconsolidated joint ventures (see
Attachment 3 for a reconciliation between GAAP revenues compared to segment
revenues). Cement revenues for the first quarter totaled $55.7 million, 15%
greater than $48.4 million for the same quarter a year ago. Operating
earnings from Cement, increased 17% to $13.0 million for the first quarter
this year from $11.2 million for the same quarter last year. The earnings
gain was due primarily to higher net sales prices and increased sales volume.
Cement sales volume for the first quarter totaled 758,000 tons, 14% above
666,000 tons for the same quarter last year. Purchased cement sales volume of
92,000 tons for the first quarter were 60,000 tons greater than purchased
cement sales volume for the first quarter a year ago. An April 2004 price
increase boosted EXP's first quarter average Cement net sales price 3% to
$68.34 per ton from $66.56 per ton for the same quarter a year ago.
GYPSUM WALLBOARD
Gypsum Wallboard revenues for the first quarter totaled $82.3 million, a
31% increase over $63.0 million for the same quarter a year ago. Gypsum
Wallboard's first quarter operating earnings were $17.0 million, up 192% from
$5.8 million for the same quarter last year. The revenue and earnings gain
for the quarter resulted from increased sales volume at higher sales prices.
The average net sales price for this fiscal year's first quarter was $101.39
per thousand square feet (MSF), 23% greater than $82.72 per MSF for the same
quarter last year. Gypsum Wallboard sales volume of 641 million square feet
(MMSF) for this year's quarter was 9% above the 586 MMSF sold during the first
quarter last year.
PAPERBOARD
EXP's Paperboard operation reported first quarter revenues (including
sales to EXP's Wallboard operations - see Attachment 3 for a detail of
intersegment revenues) of $31.8 million, up 13% from revenues of $28.1 million
for last year's first quarter. Paperboard operating earnings of $6.7 million
for the first quarter this year were 19% above $5.7 million for last year's
first quarter. The earnings gain resulted primarily from higher sales prices.
For this year's first quarter, Paperboard sales volume was 70,000 tons, up
4% from last year's sales volume of 67,000 tons. This year's first quarter
average net sales price of $445.52 per ton was 9% above last year's first
quarter net sales price of $410.15 per ton.
CONCRETE AND AGGREGATES
Revenues from Concrete and Aggregates were $17.0 million for the quarter,
2% greater than $16.5 million for the first quarter a year ago. Concrete and
Aggregates reported a $2.1 million operating profit for this year's first
quarter, up 49% from $1.4 million for the same quarter last year.
Heavy rain in Texas reduced Concrete sales volume for the first quarter
this year to 188,000 cubic yards, 10% below 209,000 cubic yards for the same
quarter last year. EXP's Concrete average net sales price of $54.85 per cubic
yard for the current quarter was 4% higher than $52.97 per cubic yard for the
first quarter a year ago, primarily due to a geographic mix change.
Aggregates operations reported sales volume of 1,211,000 tons for the
current quarter, 14% above sales volume of 1,059,000 tons for the first
quarter last year. Aggregates average net sales price of $5.56 per ton for
the first quarter was 6% higher than $5.23 per ton for the first quarter last
year.
OUTLOOK
Cement demand in calendar 2004, is expected to remain strong. Currently,
the U.S. cement industry is experiencing a tight supply of cement in a number
of regional markets because of a shortage of ships available to transport
cement from foreign suppliers. Additionally, the price of imported cement has
increased significantly due to higher freight rates and increasing consumption
in world markets. Price increases of $3.00 to $5.00 per ton have been
announced in all of EXP's markets to take effect during August 2004.
Gypsum industry wallboard demand continues to remain high and supply tight
due to favorable levels of activity in residential construction and
repair/remodel construction. The 10% price increase implemented in mid-May
2004, is substantially holding. An additional average 10% price increase is
currently being implemented.
Based on the above factors, the Company expects to report earnings ranging
from $1.55 per diluted share to $1.65 per diluted share for the quarter ending
September 30, 2004, and $5.00 per diluted share to $5.50 per diluted share for
Fiscal 2005.
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 beliefs at the time the statements were made regarding
future events which are subject to significant 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; 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. For example, increases in
interest rates, decreases in demand for construction materials or increases in
the cost of energy could affect the revenues or operating earnings of our
operations. In addition, changes in national and regional economic conditions
and levels of infrastructure and construction spending could also adversely
affect the Company's results of operations. These and other factors are
described in the Annual Report on Form 10-K for the Company for the fiscal
year ended March 31, 2004. This report is filed with the Securities and
Exchange Commission and may be obtained free of charge through the website
maintained by the SEC at http://www.sec.gov . All forward-looking statements
made in this press release are made as of the date hereof, and the risk that
actual results will differ materially from expectations expressed in this
press release 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.
(1) Summary of Consolidated Earnings
(2) Revenues and Earnings by Lines of Business (Quarter)
(3) Sales Volume, Net Sales Prices and Intersegment and Cement Revenues
(4) Consolidated Balance Sheets
Eagle Materials Inc.
Attachment 1
Eagle Materials Inc.
Summary of Consolidated Earnings
(dollar amounts in thousands, except per share data)
(unaudited)
Quarter Ended June 30,
2004 2003 Change
Revenues $150,291 $124,403 +21%
Earnings Before Income Taxes $35,434 $21,385 +66%
Net Earnings $23,213 $14,223 +63%
Earnings Per Share:
- Basic $1.25 $0.77 +62%
- Diluted $1.23 $0.77 +60%
Average Shares Outstanding:
- Basic 18,631,714 18,406,710 +1%
- Diluted 18,839,135 18,508,491 +2%
Eagle Materials Inc.
Attachment 2
Eagle Materials Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
Quarter Ended June 30,
2004 2003 Change
Revenues*
Cement (Wholly Owned) $32,956 $27,923 +18%
22% 23%
Gypsum Wallboard 82,256 62,990 +31%
55% 51%
Paperboard 18,125 16,684 +9%
12% 13%
Concrete & Aggregates 16,954 16,547 +2%
11% 13%
Other, net --- 259 -100%
---% ---%
Total $150,291 $124,403 +21%
100% 100%
Operating Earnings
Cement:
Wholly Owned $8,072 $6,678 +21%
Joint Venture 4,924 4,476 +10%
12,996 11,154 +17%
34% 46%
Gypsum Wallboard 17,000 5,831 +192%
45% 24%
Paperboard 6,726 5,675 +19%
18% 23%
Concrete & Aggregates 2,131 1,426 +49%
5% 6%
Other, net (832) 259 -421%
(2)% 1%
Total Operating Earnings 38,021 24,345 +56%
100% 100%
Corporate General Expenses (1,879) (1,468)
Interest Expense, net (708) (1,492)
Earnings Before Income
Taxes $35,434 $21,385 +66%
*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
June 30,
2004 2003
Cement (M Tons):
Wholly Owned 417 363
Joint Ventures 341 303
758 666
Gypsum Wallboard (MMSF's) 641 586
Paperboard (M Tons):
External 42 43
Internal 28 24
70 67
Concrete (M Cubic Yards) 188 209
Aggregates (M Tons) 1,211 1,059
Average Net Sales Price*
Quarter Ended
June 30,
2004 2003
Cement (Ton) $68.34 $66.56
Gypsum Wallboard (MSF) $101.39 $82.72
Paperboard (Ton) $445.52 $410.15
Concrete (Cubic Yard) $54.85 $52.97
Aggregates (Ton) $5.56 $5.23
*Net of freight and delivery costs billed to customers.
Intersegment and
Cement Revenues
Quarter Ended
June 30,
2004 2003
Intersegment Revenues:
Cement $781 $977
Paperboard 13,668 11,404
Concrete 299 266
$14,748 $12,647
Cement Revenues (Net of Intersegment Revenues):
Wholly Owned $32,956 $27,923
Joint Venture 22,730 20,513
$55,686 $48,436
Eagle Materials Inc.
Attachment 4
Eagle Materials Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
June 30, March 30,
2004 2003 2004*
ASSETS
Current Assets -
Cash and Cash Equivalents $5,023 $8,398 $3,536
Accounts and Notes
Receivable, net 64,624 51,773 54,352
Inventories 44,606 47,218 48,890
Total Current Assets 114,253 107,389 106,778
Property, Plant and Equipment - 719,789 709,894 715,734
Less: Accumulated
Depreciation (242,699) (215,092) (234,929)
Property, Plant and
Equipment, net 477,090 494,802 480,805
Investments in Joint Ventures 50,677 51,668 51,503
Goodwill 40,290 40,290 40,290
Other Assets 14,914 11,101 13,599
$697,224 $705,250 $692,975
LIABILITIES AND STOCKHOLDER'S
EQUITY
Current Liabilities -
Note Payable $35,400 $--- $24,100
Accounts Payable 40,684 26,623 31,470
Accrued Liabilities 35,707 37,002 38,521
Current Portion of
Long-term Debt 80 80 80
Total Current Liabilities 111,871 63,705 94,171
Long-term Debt 39,000 62,090 58,700
Deferred Income Taxes 104,046 84,675 101,082
Stockholders' Equity -
Preferred Stock, Par Value
$0.01; Authorized 5,000,000
Shares None Issued --- --- ---
Common Stock, Par Value $0.01;
Authorized 50,000,000 Shares;
Issued and Outstanding
9,635,231, 18,429,000 and
9,607,029 Shares, respectively.
Class B Common Stock, Par Value
$0.01; Authorized 50,000,000
Shares; Issued and Outstanding,
8,905,769, None and 9,161,469
Shares, respectively. 185 184 188
Capital in Excess of Par Value 13,849 15,808 28,223
Accumulated Other Comprehensive
Losses (1,877) (1,995) (1,877)
Unamortized Restricted Stock (582) --- (591)
Retained Earnings 430,732 480,783 413,079
Total Stockholders' Equity 442,307 494,780 439,022
$697,224 $705,250 $692,975
*From audited financial statements.
SOURCE Eagle Materials Inc.
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Related links:
http://www.eaglematerials.com
CONTACT:
Steven R. Rowley, President and Chief
Executive Officer, or Arthur R. Zunker, Jr., Senior Vice
President and Chief Financial Officer, both of Eagle Materials
Inc., +1-214-432-2000
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