DALLAS, Oct. 20 /PRNewswire-FirstCall/ -- Centex Construction Products,
Inc. (NYSE: CXP) today reported financial results for the quarter and six
months ended September 30, 2003, the second quarter and first six 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, October 21, 2003. 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 September 30, 2003, CXP's net earnings increased 15%
to $18,564,000 or $1.00 per diluted share from $16,107,000 or $0.87 per
diluted share for the same quarter last year. Increased Paperboard and
Concrete/Aggregates operating earnings and decreased interest expense were
partially offset by lower Cement and Gypsum Wallboard operating earnings and
costs related to the proposed spin-off by Centex Corporation to its
stockholders of its 65% ownership stake in CXP. Revenues for the second
quarter this year totaled $154,798,000, 14% greater than $135,993,000 for the
same quarter a year ago.
For the six months ended September 30, 2003, CXP's net earnings and
diluted earnings per share were $32,787,000 or $1.77 per diluted share, level
with $32,842,000 or $1.77 per diluted share for the same period a year ago.
Revenues for this year's six-month period of $298,887,000 were 13% greater
than $264,768,000 for the same period in the prior fiscal year.
CEMENT
Cement revenues for this year's second quarter totaled $52.1 million, 6%
greater than $49.4 million for the same quarter a year ago. Operating
earnings from Cement declined 6% to $16.6 million for the quarter this year
from $17.6 million for the same quarter last year due to lower net sales
prices and increased costs of sales.
Cement sales volume for the second quarter totaled 727,000 tons, 7% above
677,000 tons for the same quarter last year. Purchased cement sales volume of
88,000 tons for this year's second quarter was 9% greater than purchased
cement sales volume for the second 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 $66.64 per ton was 2% less than $68.10 per ton
for the same quarter a year ago.
Operating earnings from Cement were $27.7 million for the six months this
year, 14% below $32.1 million for the similar period in fiscal 2003, primarily
due to lower net sales prices and increased cost of sales. For the current
six months, revenues from Cement were $99.6 million, up 3% from $96.5 million
for the same period a year ago. The average six-month sales price was $66.60
per ton this year, 2% below $67.99 per ton for the same period last year.
Cement sales volume of 1,393,000 tons for the six months this year was 5%
greater than 1,322,000 tons sold for the same period in fiscal 2003.
Purchased Cement sales volume of 120,100 tons for this year's six-month period
was 9% greater than purchased Cement sales volume for the same period a year
ago.
GYPSUM WALLBOARD
Gypsum Wallboard revenues for the quarter totaled $67.4 million, a 23%
increase over $54.9 million for the same quarter a year ago. Gypsum Wallboard
reported second quarter operating earnings of $7.0 million, down 17% from
$8.4 million in operating earnings for the same quarter last year. The
earnings decline for the quarter resulted from lower net sales prices being
partially offset by increased sales volume. The average net sales price for
this year's second quarter was $83.67 per thousand square feet (MSF), 6% below
$89.48 per MSF for the same quarter last year.
Gypsum Wallboard sales volume of 621 million square feet (MMSF) for this
year's quarter was 26% above the 491 MMSF sold during the second quarter last
year. Although U.S. wallboard consumption through September 2003 was
23.7 billion square feet, up 3% from the same period last year, pricing has
been erratic. The August 2003 price increase partially held and another 8%
price increase was implemented during the last week of September 2003.
For the current six-month period, Gypsum Wallboard reported $12.8 million
in operating earnings, down 27% from $17.6 million in operating earnings
reported for the same period in fiscal 2003. Lower net sales prices were
partially offset by increased sales volume. For the current six months,
Gypsum Wallboard revenues were $130.4 million, a 22% increase from
$106.9 million for the same period a year ago.
Gypsum Wallboard sales volume of 1,207 MMSF for the current six months was
28% greater than the 945 MMSF sold for the same period last year. The average
net sales price for the six-month period this year was $83.21 per MSF, 8%
below $90.94 per MSF for the same period a year ago.
PAPERBOARD
CXP's Paperboard operation reported second quarter net revenues of
$16.2 million, up 11% from revenues of $14.6 million for last year's second
quarter. Paperboard operating earnings of $5.0 million for the quarter this
year were 82% above $2.8 million for the second quarter a year ago. The
earnings gain resulted from increased sales volume, higher net sales prices
and lower production costs.
For this year's second quarter, Paperboard total sales volume was 68,000
tons, up 24% from last year's sales volume of 55,000 tons. This year's second
quarter net sales price of $407.69 per ton was slightly above last year's
second quarter net sales price of $405.50 per ton.
For the six months, Paperboard operating earnings were $10.7 million, up
61% from $6.6 million for the same period last year due to increased sales
volume and lower cost of sales. Paperboard net revenues for the six months
this year were $32.9 million, a 14% improvement over net revenues of
$28.7 million for the same period last year. Total Paperboard sales volume
for the current six months was 135,000 tons at an average net sales price of
$408.91 per ton, compared to 111,000 tons at an average net sales price of
$392.40 for the same period last year.
CONCRETE AND AGGREGATES
Revenues from the Concrete and Aggregates segment were $18.3 million for
the quarter, 16% greater than $15.8 million for the second quarter a year ago.
Concrete and Aggregates reported a $2.6 million operating profit for this
year's second quarter versus a $2.0 million operating loss for the same
quarter last year. The earnings increase was primarily due to increased
Aggregates sales prices, lower Concrete and Aggregates cost of sales and
$2.6 million of costs associated with the closing of the Georgetown plant
during last year's second quarter.
Concrete sales volume for the second quarter this year was 224,000 cubic
yards, a 14% increase over 196,000 cubic yards for the same quarter last year.
CXP's average Concrete net sales price of $51.95 per cubic yard for the
current quarter was 2% below $53.25 per cubic yard for the same quarter a year
ago.
CXP's Aggregates operation reported sales volume of 1,275,000 tons for the
quarter, 2% greater than sales volume of 1,254,000 tons for the same quarter
last year. The average net sales price of $5.27 per ton for the current
quarter was 26% higher than $4.17 per ton last year due to depressed sales
prices last year at the Georgetown operation.
Concrete and Aggregates reported an operating profit of $4.1 million for
the current six months compared to a $715,000 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 and Aggregates revenues for
the six months this year were $34.9 million, 13% higher than $30.9 million for
the same period last year.
Concrete sales volume of 433,000 cubic yards for this year's six-month
period was 17% greater than 371,000 cubic yards for the same period last year.
Concrete's average net sales price of $52.44 per cubic yard for the current
six months was 3% lower than last year's six months average net sales price of
$54.02 per cubic yard.
Aggregates sales volume of 2,334,000 tons was 7% less than 2,498,000 tons
for the six months last year. The sales volume decline came mostly from the
closure of the Georgetown plant during last year's second quarter. The
average net sales price of CXP's Aggregates was $5.25 per ton for the six-
month period this year, 26% greater than last year's sales price of $4.18 per
ton.
SPIN-OFF OF CXP
CXP announced on July 21, 2003 that it reached an agreement with Centex
Corporation with respect to the spin-off of all of the CXP shares owned by
Centex. Centex owns approximately 65% of the outstanding shares of CXP.
Under the agreement, CXP would reclassify 9,220,000 of the approximately
12 million shares of CXP common stock held by Centex into a new Class B common
stock having the right to elect at least 85% of the directors of CXP. Centex
will then distribute all of these Class B shares and the remaining shares of
CXP common stock held by Centex to its stockholders. 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. It is anticipated that
the cash dividend and the spin-off will be completed on or about
December 31, 2003. The CXP board of directors formed a special committee
consisting solely of independent directors to evaluate the spin-off and
related transactions. In conjunction with its legal and financial advisors,
the special committee reviewed the proposed transaction, and then negotiated
with Centex to achieve the final agreement.
The reclassification will require approval by the CXP stockholders
(including the majority of CXP common stock not held by Centex), as well as
approval by the IRS of the tax-free nature of the spin-off. The listing of
the new Class B Common Stock of CXP will also require the approval of the New
York Stock Exchange. Accordingly, there can be no assurance that the spin-off
or any of the other transactions described above will occur on the terms
described above, if at all.
OTHER DEVELOPMENTS
On September 18, 2003, CXP announced that its Chief Operating Officer,
Steven R. Rowley, was promoted to President and Chief Executive Officer and
elected to the Company's Board of Directors. Mr. Rowley replaces Laurence E.
Hirsch as its Chief Executive Officer. Mr. Rowley will continue to have line
operating responsibility for all four of CXP's business units: Cement, Gypsum
Wallboard, Paperboard, and Concrete and Aggregates. Mr. Hirsch will continue
in his role as Chairman of the Board of CXP.
OUTLOOK
The outlook for Cement and Wallboard consumption for the remainder of
fiscal 2004 is favorable. While consumption of Wallboard remains at a high
level, Wallboard pricing has been erratic. However, a Wallboard price
increase of 8% was implemented during the last week of September 2003. CXP's
Wallboard and Paperboard operations continue to be negatively impacted by high
natural gas costs. The Company expects to report fiscal 2004 earnings ranging
from $3.08 per diluted share to $3.23 per diluted share (net of costs related
to the proposed spin-off).
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 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 June 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 (six months)
(4) Sales Volume, Net Sales Prices and Intersegment Revenues
(5) Consolidated Balance Sheet
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
September 30,
2003 2002 Change
Revenues $154,798 $135,993 +14%
Earnings Before Income Taxes $ 28,664 $ 24,218 +18%
Net Earnings $ 18,564 $ 16,107 +15%
Earnings Per Share:
- Basic $ 1.01 $ 0.87 +16%
- Diluted $ 1.00 $ 0.87 +15%
Average Shares Outstanding:
- Basic 18,462,107 18,442,772 ---
- Diluted 18,609,206 18,535,872 ---
Six Months Ended
September 30,
2003 2002 Change
Revenues $298,887 $264,768 +13%
Earnings Before Income Taxes $ 50,049 $ 49,379 +1%
Net Earnings $ 32,787 $ 32,842 ---
Earnings Per Share:
- Basic $ 1.78 $ 1.78 ---
- Diluted $ 1.77 $ 1.77 ---
Average Shares Outstanding:
- Basic 18,434,560 18,462,631 ---
- Diluted 18,559,000 18,598,156 ---
Centex Construction Products, Inc.
Attachment 2
Centex Construction Products, Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
Quarter Ended
September 30,
2003 2002 Change
Revenues*
Cement $52,129 $49,360 +6%
33% 36%
Gypsum Wallboard 67,361 54,880 +23%
44% 40%
Paperboard 16,167 14,602 +11%
10% 11%
Concrete & Aggregates 18,303 15,821 +16%
12% 12%
Other, net 838 1,330 -37%
1% 1%
Total $154,798 $135,993 +14%
100% 100%
Operating Earnings
Cement $16,635 $17,643 -6%
52% 63%
Gypsum Wallboard 6,987 8,401 -17%
22% 30%
Paperboard 4,998 2,753 +82%
15% 10%
Concrete & Aggregates 2,626 (2,020) +230%
8% (7%)
Other, net 838 1,330 -37%
3% 4%
Total Operating Earnings 32,084 28,107 +14%
100% 100%
Corporate General Expenses (1,482) (1,380)
Spin-Off Expenses (986) 0
Interest Expense, net (952) (2,509)
Earnings Before Income Taxes $28,664 $24,218 +18%
* Net of Intersegment Revenues listed on Attachment 4.
Centex Construction Products, Inc.
Attachment 3
Centex Construction Products, Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
(unaudited)
Six Months Ended
September 30,
2003 2002 Change
Revenues*
Cement $99,623 $96,533 +3%
33% 36%
Gypsum Wallboard 130,351 106,922 +22%
44% 40%
Paperboard 32,851 28,734 +14%
11% 11%
Concrete & Aggregates 34,850 30,906 +13%
12% 12%
Other, net 1,212 1,673 -28%
0% 1%
Total $298,887 $264,768 +13%
100% 100%
Operating Earnings
Cement $27,668 $32,056 -14%
49% 56%
Gypsum Wallboard 12,818 17,588 -27%
23% 31%
Paperboard 10,673 6,622 +61%
19% 11%
Concrete & Aggregates 4,052 (715) +667%
7% (1%)
Other, net 1,212 1,673 -28%
2% 3%
Total Operating Earnings 56,423 57,224 -1%
100% 100%
Corporate General Expenses (2,950) (2,782)
Spin-Off Expenses (986) 0
Interest Expense, net (2,438) (5,063)
Earnings Before Income Taxes $50,049 $49,379 +1%
* Net of Intersegment Revenues listed on Attachment 4.
Centex Construction Products, Inc.
Attachment 4
Centex Construction Products, Inc.
Sales Volume, Net Sales Prices and Intersegment Revenues
(unaudited)
Sales Volume
Quarter Ended Six Months Ended
September 30, September 30,
2003 2002 2003 2002
Cement (M Tons) 727 677 1,393 1,322
Gypsum Wallboard (MMSF's) 621 491 1,207 945
Paperboard (M Tons):
External 41 39 83 78
Internal 27 16 52 33
Concrete (M Cubic Yards) 224 196 433 371
Aggregates (M Tons) 1,275 1,254 2,334 2,498
Average Net Sales Price*
Quarter Ended Six Months Ended
September 30, September 30,
2003 2002 2003 2002
Cement (Ton) $66.64 $68.10 $66.60 $67.99
Gypsum Wallboard (MSF) $83.67 $89.48 $83.21 $90.94
Paperboard (Ton) $407.69 $405.50 $408.91 $392.40
Concrete (Cubic Yards) $51.95 $53.25 $52.44 $54.02
Aggregates (Ton) $5.27 $4.17 $5.25 $4.18
* Net of freight and delivery costs billed to customers.
Intersegment Revenues
Quarter Ended Six Months Ended
September 30, September 30,
2003 2002 2003 2002
(Dollars in thousands)
Cement $970 $1,198 $1,947 $2,116
Paperboard 12,282 7,539 23,686 14,817
Concrete and Aggregates 330 161 596 311
$13,582 $8,898 $26,229 $17,244
Note: Intersegment revenues netted in revenues on the quarter and six
months income statements.
Centex Construction Products, Inc.
Attachment 5
Centex Construction Products, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
September 30, March 31,
ASSETS 2003 2002 2003 (*)
Current Assets:
Cash and Cash Equivalents $13,892 $12,715 $10,942
Accounts and Notes Receivable, net 66,154 60,914 52,498
Inventories 52,375 53,363 58,254
Total Current Assets 132,421 126,992 121,694
Property, Plant and Equipment 798,620 795,778 794,380
Less Accumulated Depreciation (274,367) (244,700) (259,544)
Property, Plant and Equipment, net 524,253 551,078 534,836
Notes Receivable, net 664 1,229 1,197
Goodwill 40,290 40,197 40,290
Other Assets 12,495 12,487 14,061
$710,123 $731,983 $712,078
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable and Accrued
Liabilities $72,597 $76,963 $70,858
Notes Payable 0 29,982 25,257
Current Portion of Long-term Debt 80 80 80
Total Current Liabilities 72,677 107,025 96,195
Long-term Debt 31,080 101,670 55,590
Deferred Income Taxes 90,511 67,876 80,461
Stockholders' Equity -
Common Stock, Par Value $0.01;
Authorized 50,000,000 Shares;
Issued and Outstanding
18,520,103, 18,354,795 and
18,379,558 Shares, respectively 185 184 184
Capital in Excess of Par Value 19,439 13,491 14,228
Unamortized Value of Restricted Stock (709) 0 0
Accumulated Other Comprehensive Losses (1,482) (2,817) (2,061)
Retained Earnings 498,422 444,554 467,481
Total Stockholders' Equity 515,855 455,412 479,832
$710,123 $731,983 $712,078
(*) From Audited Financial Statements.
SOURCE Centex Construction Products, Inc.
 back to top
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
|
