Eagle Materials Inc. reported financial results for the third quarter of fiscal 2015 which ended December 31, 2014. Notable items for the quarter in relation to the prior-year’s third quarter include:
· Record quarterly revenues of $292 million, up 27 percent
· Record third quarter cement earnings of $37.6 million, up 44 percent
· Record quarterly paperboard earnings of $9.1 million, up 37 percent
· Wallboard earnings of $40.0 million, up 30 percent
· Record third quarter earnings per diluted share of $1.03, up 63 percent
Sales volumes improved across all major business lines, with cement volumes setting a third quarter record of over 1.2 million tons sold. Net sales prices also strengthened across all businesses, with average wallboard and cement sales prices increasing 11 percent and 8 percent, respectively, over the prior year's third quarter.
On November 14, 2014, Eagle completed its previously announced acquisition of CRS Proppants LLC and its subsidiaries, including Great Northern Sand LLC (CRS Proppants). Eagle used cash proceeds from borrowings under its bank credit facility to fund the purchase price of $237.2 million. The results of operations of CRS Proppants are included in the results disclosed in this press release for the period from November 14 through December 31, 2014.
Cement, Concrete and Aggregates
Operating earnings from Cement for the third quarter were $37.6 million, a 44 percent increase from the same quarter a year ago. The earnings increase resulted from record third quarter sales volumes and increased average net cement sales prices.
Cement revenues for the quarter, including joint venture and intersegment revenues, totaled $124.0 million, 17 percent greater than the same quarter last year. The revenue improvement reflects an 8 percent increase in its third quarter Cement sales volume. The average net cement sales price this quarter was $93.76 per ton, 8 percent higher than the same quarter last year.
Concrete and Aggregates reported operating earnings of $1.6 million for the third quarter, a $3.1 million improvement from the same quarter a year ago, reflecting improved concrete and aggregates pricing along with improved concrete sales volumes.
Gypsum Wallboard and Paperboard
Gypsum Wallboard and Paperboard’s third quarter operating earnings of $49.1 million were up 31 percent compared to the same quarter last year. Improved Gypsum Wallboard net sales prices and increased Gypsum Wallboard and Paperboard sales volumes were the primary drivers of the quarterly earnings increase.
Gypsum Wallboard and Paperboard revenues for the third quarter totaled $144.2 million, a 16 percent increase from the same quarter a year ago. The revenue increase reflects higher average Gypsum Wallboard net sales prices and higher Gypsum Wallboard and Paperboard sales volumes. The average gypsum wallboard net sales price for the third quarter was $158.95 per MSF, 11 percent greater than the same quarter a year ago. Gypsum Wallboard sales volume for the quarter of 610 million square feet (MMSF) represents a 4 percent increase from the same quarter last year. The average Paperboard net sales price for this quarter was $504.30 per ton, about flat with the same quarter a year ago. Record Paperboard sales volumes for the quarter were 77,000 tons, 17 percent higher than the same quarter a year ago.
Oil and Gas Proppants
Oil and Gas Proppants reported third quarter revenues of $31.7 million and operating earnings of $3.2 million. During this year's third quarter, the company continued to process and sell purchased sand while they built up inventory of their internally produced sand at their 1.5 million ton Corpus Christi facility.