Eagle Materials Reports Record Third Quarter Results with 16% EPS Growth

DALLAS--()--Eagle Materials Inc. (NYSE: EXP) today reported financial results for the third quarter of fiscal 2024 ended December 31, 2023. Notable items for the quarter are highlighted below (unless otherwise noted, all comparisons are with the prior year’s fiscal third quarter):

Third Quarter Fiscal 2024 Highlights

  • Record Revenue of $558.8 million, up 9%
  • Record Net Earnings of $129.1 million, up 10%
  • Net Earnings per share of $3.72, up 16%
  • Adjusted EBITDA of $218.6 million, up 10%
    • Adjusted EBITDA is a non-GAAP financial measure calculated by excluding non-routine items and certain non-cash expenses in the manner described in Attachment 6
  • Repurchased 558,500 shares of Eagle’s common stock for $98 million

Commenting on the results, Michael Haack, President and CEO of Eagle, said, “We are pleased to announce another exceptional quarter against the backdrop of shifting, albeit constructive, market conditions as interest rates moved materially lower during the latter half of the quarter. In the third quarter, we achieved record revenue of $559 million, produced record EPS of $3.72 and expanded gross margins by 130 bps to 32.3%. We generated strong free cash flow, repurchased 558,500 shares of our common stock and returned $106 million of cash to shareholders, bringing total cash returned to $276 million in the first nine months of the fiscal year.”

“We continued making progress on our environmental stewardship goals, expanding the production and sale of our eco-friendly Portland Limestone Cement and other blended cement products. In December, we announced an agreement with Terra CO2 granting us exclusive rights to use Terra’s technology to build and operate plants that would produce low-carbon supplementary cementitious material in three of our core cement markets. Once fully developed, this technology has the potential to not only reduce the carbon intensity of the cementitious products we sell, but also to fulfill the needs of our customers and meet the expected increase in demand for cement and supplementary cementitious materials.”

Mr. Haack concluded, “Eagle’s heartland geographic footprint remains well-positioned for long-term growth, supported by trends in population growth, well-documented housing production deficits and supply shortages, and a multi-year federal highway bill further enhanced by state-level infrastructure spending. We expect that our portfolio of businesses will continue to deliver leading financial results, and our capital allocation strategies will continue to generate superior shareholder value for the foreseeable future.”

Segment Financial Results

Heavy Materials: Cement, Concrete and Aggregates

Revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, as well as Joint Venture and intersegment Cement revenue, was up 18% to $366.4 million. Heavy Materials operating earnings increased 43% to $107.3 million, primarily because of higher Cement net sales prices and sales volume.

Cement revenue for the quarter, including Joint Venture and intersegment revenue, was up 20% to $308.7 million, and operating earnings were a record $105.6 million, up 46%. These increases reflect higher Cement sales volume and net sales prices as well as the contribution of approximately $11 million of revenue from the recently acquired Stockton Terminal. The average net sales price for the quarter was up 13% to $151.32 per ton, reflecting Cement price increases implemented in January 2023 and again in July 2023. Cement sales volume increased 7% to 1.8 million tons. Excluding the recently acquired Stockton Terminal, Cement sales volume increased 3%.

Concrete and Aggregates revenue increased 5% to $57.8 million, reflecting higher Aggregates sales volume and record Concrete pricing. Operating earnings for Concrete and Aggregates decreased 35% to $1.8 million, primarily because of higher input costs.

Light Materials: Gypsum Wallboard and Recycled Paperboard

Revenue in the Light Materials sector, which includes Gypsum Wallboard and Recycled Paperboard, decreased 4% to $226.9 million, reflecting lower Wallboard and Paperboard sales prices and slightly lower Wallboard sales volume, partially offset by increased Paperboard sales volume. Gypsum Wallboard sales volume decreased 1% to 722 million square feet (MMSF), while the average Gypsum Wallboard net sales price declined 4% to $227.78 per MSF.

Paperboard sales volume for the quarter was up 9% to a record 84,000 tons. The average Paperboard net sales price was $559.49 per ton, down 6%, consistent with the pricing provisions in our long-term sales agreements that factor in changes to input costs.

Operating earnings in the sector were $82.6 million, down 13%, primarily related to lower Wallboard sales volume and pricing.

Details of Financial Results

We conduct one of our cement plant operations through a 50/50 joint venture, Texas Lehigh Cement Company LP (the Joint Venture). We use 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 revenue and operating earnings, which is consistent with the way management organizes the segments within the Company for making operating decisions and assessing performance.

In addition, for segment reporting purposes, we report intersegment revenue as part of a segment’s total revenue. Intersegment sales are eliminated on the consolidated income statement. Refer to Attachment 3 for a reconciliation of these amounts.

About Eagle Materials Inc.

Eagle Materials Inc. is a leading U.S. manufacturer of heavy construction products and light building materials. Eagle’s primary products, Portland Cement and Gypsum Wallboard, are essential for building, expanding and repairing roads and highways and for building and renovating residential, commercial and industrial structures across America. Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states and is headquartered in Dallas, Texas. Visit eaglematerials.com for more information.

Eagle’s senior management will conduct a conference call to discuss the financial results, forward looking information and other matters at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Thursday, January 25, 2024. The conference call will be webcast on the Eagle website, eaglematerials.com. A replay of the webcast and the presentation will be archived on the website 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 statements and generally arise when the Company is discussing its beliefs, estimates or expectations as to future events. 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 businesses; fluctuations in 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; the availability and fluctuations in the cost of raw materials; changes in the costs of energy, including, without limitation, natural gas, coal and oil (including diesel), and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (for example, spot market prices), governmental orders and other matters; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipment downtime and interruption of production; material nonpayment or non-performance by any of our key customers; 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 and other environmental regulation); possible outcomes of pending or future litigation or arbitration proceedings; changes in economic conditions or the nature or level of activity in any one or more of the markets or industries in which the Company or its customers are engaged; severe weather conditions (such as winter storms, tornados and hurricanes) and their effects on our facilities, operations and contractual arrangements with third parties; competition; cyber-attacks or data security breaches; increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; the availability of acquisitions or other growth opportunities that meet our financial return standards and fit our strategic focus; risks related to pursuit of acquisitions, joint ventures and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by the Company; general economic conditions, including inflation and recessionary conditions; and changes in interest rates and the resulting effects on the Company and demand for our products. 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) or the cost of our raw materials can be expected to adversely affect the revenue 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. Finally, any forward-looking statements made by the Company are subject to the risks and impacts associated with natural disasters, the outbreak, escalation or resurgence of health emergencies, pandemics or other unforeseen events, including, without limitation, the COVID-19 pandemic and responses thereto designed to contain its spread and mitigate its public health effects, as well as their impact on our operations and on economic conditions, capital and financial markets. These and other factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023 and subsequent quarterly and annual reports upon filing. 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 Revenue and Earnings by Lines of Business

Attachment 3 Sales Volume, Average Net Sales Prices and Intersegment and Cement Revenue

Attachment 4 Consolidated Balance Sheets

Attachment 5 Depreciation, Depletion and Amortization by Lines of Business

Attachment 6 Reconciliation of Non-GAAP Financial Measures

Attachment 7 Reconciliation of Net Debt to Adjusted EBITDA

Attachment 1

Eagle Materials Inc.

Statement of Consolidated Earnings

(dollars in thousands, except per share data)

(unaudited)

 

 

Quarter Ended

December 31,

 

Nine Months Ended

December 31,

 

 

2023

 

 

 

 

2022

 

 

 

 

2023

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

Revenue

$

558,833

 

 

$

511,487

 

 

$

1,782,590

 

 

$

1,677,942

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

378,205

 

 

 

352,717

 

 

 

1,216,949

 

 

 

1,174,067

 

 

 

 

 

 

 

 

 

Gross Profit

 

180,628

 

 

 

158,770

 

 

 

565,641

 

 

 

503,875

 

 

 

 

 

 

 

 

 

Equity in Earnings of Unconsolidated JV

 

9,285

 

 

 

11,377

 

 

 

22,790

 

 

 

23,631

 

Corporate General and Administrative Expenses

 

(14,201

)

 

 

(12,497

)

 

 

(42,456

)

 

 

(37,944

)

Other Non-Operating Income

 

1,019

 

 

 

2,210

 

 

 

2,837

 

 

 

911

 

 

 

 

 

 

 

 

 

Earnings before Interest and Income Taxes

 

176,731

 

 

 

159,860

 

 

 

548,812

 

 

 

490,473

 

 

Interest Expense, net

 

(10,128

)

 

 

(8,932

)

 

 

(32,571

)

 

 

(24,842

)

 

 

 

 

 

 

 

 

Earnings before Income Taxes

 

166,603

 

 

 

150,928

 

 

 

516,241

 

 

 

465,631

 

 

Income Tax Expense

 

(37,465

)

 

 

(33,744

)

 

 

(115,701

)

 

 

(104,447

)

 

 

 

 

 

 

 

 

Net Earnings

$

129,138

 

 

$

117,184

 

 

$

400,540

 

 

$

361,184

 

 

 

 

 

 

 

 

 

NET EARNINGS PER SHARE

 

 

 

Basic

$

3.75

 

 

$

3.23

 

 

$

11.47

 

 

$

9.72

 

Diluted

$

3.72

 

 

$

3.20

 

 

$

11.38

 

 

$

9.66

 

 

 

 

 

 

 

 

 

AVERAGE SHARES OUTSTANDING

 

 

 

 

 

Basic

 

34,466,141

 

 

 

36,336,056

 

 

 

34,931,378

 

 

 

37,149,927

 

Diluted

 

34,749,721

 

 

 

36,605,982

 

 

 

35,201,658

 

 

 

37,395,586

 

Attachment 2

Eagle Materials Inc.

Revenue and Earnings by Lines of Business

(dollars in thousands)

(unaudited)

 

 

Quarter Ended

December 31,

 

Nine Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Heavy Materials:

 

 

 

 

 

 

 

Cement (Wholly Owned)

$

274,167

 

 

$

220,974

 

 

$

888,532

 

 

$

754,853

 

Concrete and Aggregates

 

57,772

 

 

 

55,176

 

 

 

191,291

 

 

 

186,407

 

 

 

331,939

 

 

 

276,150

 

 

 

1,079,823

 

 

 

941,260

 

 

 

 

 

 

 

 

 

Light Materials:

 

 

 

 

 

 

 

Gypsum Wallboard

 

200,969

 

 

 

212,016

 

 

 

629,299

 

 

 

652,981

 

Recycled Paperboard

 

25,925

 

 

 

23,321

 

 

 

73,468

 

 

 

83,701

 

 

 

226,894

 

 

 

235,337

 

 

 

702,767

 

 

 

736,682

 

 

 

 

 

 

 

 

 

Total Revenue

$

558,833

 

 

$

511,487

 

 

$

1,782,590

 

 

$

1,677,942

 

 

Segment Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Heavy Materials:

 

 

 

 

 

 

 

Cement (Wholly Owned)

$

96,281

 

 

$

60,938

 

 

$

278,266

 

 

$

209,811

 

Cement (Joint Venture)

 

9,285

 

 

 

11,377

 

 

 

22,790

 

 

 

23,631

 

Concrete and Aggregates

 

1,760

 

 

 

2,692

 

 

 

13,434

 

 

 

15,700

 

 

 

107,326

 

 

 

75,007

 

 

 

314,490

 

 

 

249,142

 

 

 

 

 

 

 

 

 

Light Materials:

 

 

 

 

 

 

 

Gypsum Wallboard

 

75,063

 

 

 

87,335

 

 

 

251,625

 

 

 

261,164

 

Recycled Paperboard

 

7,524

 

 

 

7,805

 

 

 

22,316

 

 

 

17,200

 

 

 

82,587

 

 

 

95,140

 

 

 

273,941

 

 

 

278,364

 

 

 

 

 

 

 

 

 

Sub-total

 

189,913

 

 

 

170,147

 

 

 

588,431

 

 

 

527,506

 

 

 

 

 

 

 

 

 

Corporate General and Administrative Expense

 

(14,201

)

 

 

(12,497

)

 

 

(42,456

)

 

 

(37,944

)

Other Non-Operating Income

 

1,019

 

 

 

2,210

 

 

 

2,837

 

 

 

911

 

 

 

 

 

 

 

 

 

Earnings before Interest and Income Taxes

$

176,731

 

 

$

159,860

 

 

$

548,812

 

 

$

490,473

 

 

* Excluding Intersegment and Joint Venture Revenue listed on Attachment 3

Attachment 3

Eagle Materials Inc.

Sales Volume, Average Net Sales Prices and Intersegment and Cement Revenue

(unaudited)

 

 

Sales Volume

 

Quarter Ended

December 31,

 

Nine Months Ended

December 31,

 

2023

 

2022

 

Change

 

2023

 

2022

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Cement (M Tons):

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

1,663

 

1,527

 

+9%

 

5,470

 

5,313

 

+3%

Joint Venture

161

 

172

 

-6%

 

496

 

524

 

-5%

 

1,824

 

1,699

 

+7%

 

5,966

 

5,837

 

+2%

 

 

 

 

 

 

 

 

 

 

 

 

Concrete (M Cubic Yards)

308

 

353

 

-13%

 

1,055

 

1,210

 

-13%

 

 

 

 

 

 

 

 

 

 

 

 

Aggregates (M Tons)

1,034

 

626

 

+65%

 

3,362

 

2,333

 

+44%

 

 

 

 

 

 

 

 

 

 

 

 

Gypsum Wallboard (MMSFs)

722

 

728

 

-1%

 

2,218

 

2,309

 

-4%

 

 

 

 

 

 

 

 

 

 

 

 

Recycled Paperboard (M Tons):

 

 

 

 

 

 

 

 

 

 

 

Internal

37

 

39

 

-5%

 

110

 

115

 

-4%

External

47

 

38

 

+24%

 

137

 

131

 

+5%

 

84

 

77

 

+9%

 

247

 

246

 

0%

 

Average Net Sales Price*

 

Quarter Ended

December 31,

 

Nine Months Ended

December 31,

 

2023

 

2022

 

Change

 

2023

 

2022

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Cement (Ton)

$

151.32

 

$

134.36

 

+13%

 

$

150.20

 

$

131.44

 

+14%

Concrete (Cubic Yard)

$

149.54

 

$

134.42

 

+11%

 

$

145.29

 

$

132.46

 

+10%

Aggregates (Ton)

$

11.18

 

$

11.70

 

-4%

 

$

11.20

 

$

11.21

 

0%

Gypsum Wallboard (MSF)

$

227.78

 

$

238.51

 

-4%

 

$

232.79

 

$

230.01

 

+1%

Recycled Paperboard (Ton)

$

559.49

 

$

594.93

 

-6%

 

$

546.21

 

$

603.73

 

-10%

 

*Net of freight and delivery costs billed to customers.

 

Intersegment and Cement Revenue

 

Quarter Ended

December 31,

 

Nine Months Ended

December 31,

 

2023

 

2022

 

2023

 

2022

Intersegment Revenue:

 

 

 

 

 

 

 

Cement

$

7,804

 

$

7,719

 

$

27,192

 

$

26,371

Concrete and Aggregates

 

3,414

 

 

-

 

 

10,235

 

 

-

Recycled Paperboard

 

21,128

 

 

24,453

 

 

61,929

 

 

71,819

 

$

32,346

 

$

32,172

 

$

99,356

 

$

98,190

 

 

 

 

 

 

 

 

Cement Revenue:

 

 

 

 

 

 

 

Wholly Owned

$

274,167

 

$

220,974

 

$

888,532

 

$

754,853

Joint Venture

 

26,683

 

 

27,620

 

 

82,713

 

 

79,065

 

$

300,850

 

$

248,594

 

$

971,245

 

$

833,918

Attachment 4

Eagle Materials Inc.

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)

 

 

December 31,

 

March 31,

 

 

2023

 

 

 

2022

 

 

2023*

ASSETS

 

 

 

 

 

 

Current Assets –

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

48,912

 

 

$

60,937

 

 

$

15,242

 

Accounts and Notes Receivable, net

 

 

192,982

 

 

 

172,543

 

 

 

195,052

 

Inventories

 

 

333,828

 

 

 

247,155

 

 

 

291,882

 

Federal Income Tax Receivable

 

 

2,917

 

 

 

5,466

 

 

 

16,267

 

Prepaid and Other Assets

 

 

9,092

 

 

 

5,177

 

 

 

3,060

 

Total Current Assets

 

 

587,731

 

 

 

491,278

 

 

 

521,503

 

 

 

 

 

 

 

 

Property, Plant and Equipment, net

 

 

1,667,915

 

 

 

1,641,638

 

 

 

1,662,061

 

Investments in Joint Venture

 

 

104,822

 

 

 

85,268

 

 

 

89,111

 

Operating Lease Right-of-Use Assets

 

 

20,670

 

 

 

20,651

 

 

 

20,759

 

Notes Receivable

 

 

-

 

 

 

8,556

 

 

 

7,382

 

Goodwill and Intangibles

 

 

488,088

 

 

 

467,703

 

 

 

466,043

 

Other Assets

 

 

21,114

 

 

 

15,076

 

 

 

14,143

 

 

 

$

2,890,340

 

 

$

2,730,170

 

 

$

2,781,002

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities –

 

 

 

 

 

 

Accounts Payable

 

$

117,270

 

 

$

106,571

 

 

$

110,408

 

Accrued Liabilities

 

 

88,178

 

 

 

83,759

 

 

 

86,472

 

Income Taxes Payable

 

 

1,848

 

 

 

1,964

 

 

 

-

 

Current Portion of Long-Term Debt

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

Operating Lease Liabilities

 

 

8,217

 

 

 

6,006

 

 

 

6,009

 

Total Current Liabilities

 

 

225,513

 

 

 

208,300

 

 

 

212,889

 

 

 

 

 

 

 

 

Long-term Liabilities

 

 

63,016

 

 

 

62,545

 

 

 

66,543

 

Bank Credit Facility

 

 

107,000

 

 

 

130,000

 

 

 

157,000

 

Bank Term Loan

 

 

175,000

 

 

 

185,000

 

 

 

182,500

 

2.500% Senior Unsecured Notes due 2031

 

 

740,482

 

 

 

739,215

 

 

 

739,532

 

Deferred Income Taxes

 

 

246,168

 

 

 

239,596

 

 

 

236,844

 

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 34,474,435; 36,242,274 and
35,768,376 Shares, respectively

 

 

345

 

 

 

362

 

 

 

358

 

Capital in Excess of Par Value

 

 

-

 

 

 

-

 

 

 

-

 

Accumulated Other Comprehensive Losses

 

 

(3,403

)

 

 

(3,105

)

 

 

(3,547

)

Retained Earnings

 

 

1,336,219

 

 

 

1,168,257

 

 

 

1,188,883

 

Total Stockholders’ Equity

 

 

1,333,161

 

 

 

1,165,514

 

 

 

1,185,694

 

 

 

$

2,890,340

 

 

$

2,730,170

 

 

$

2,781,002

 

 

*From audited financial statements

Attachment 5

Eagle Materials Inc.

Depreciation, Depletion and Amortization by Lines of Business

(dollars in thousands)

(unaudited)

 

The following table presents Depreciation, Depletion and Amortization by lines of business for the quarters ended December 31, 2023 and 2022:

 

 

Depreciation, Depletion and Amortization

 

Quarter Ended

December 31,

 

2023

 

2022

 

 

 

 

Cement

$

22,514

 

$

20,582

Concrete and Aggregates

 

4,857

 

 

4,402

Gypsum Wallboard

 

5,611

 

 

5,387

Paperboard

 

3,694

 

 

3,738

Corporate and Other

 

792

 

 

706

 

$

37,468

 

$

34,815

 

 

 

 

Attachment 6

Eagle Materials Inc.

Reconciliation of Non-GAAP Financial Measures

(dollars in thousands)

(unaudited)

 

EBITDA and Adjusted EBITDA

We present Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA to provide additional measures of operating performance and allow for more consistent comparison of operating performance from period to period. EBITDA is a non-GAAP financial measure that provides supplemental information regarding the operating performance of our business without regard to financing methods, capital structures or historical cost basis. Adjusted EBITDA is also a non-GAAP financial measure that further excludes the impact from non-routine items and stock-based compensation. Management uses EBITDA and Adjusted EBITDA as alternative bases for comparing the operating performance of Eagle from period to period and for purposes of its budgeting and planning processes. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate Adjusted EBITDA in the same manner. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as an alternative to net income, cash flow from operations or any other measure of financial performance or liquidity in accordance with GAAP. The following shows the calculation of EBITDA and Adjusted EBITDA and reconciles them to net earnings in accordance with GAAP for the quarters and nine months ended December 31, 2023 and 2022, and the trailing twelve months ended December 31, 2023 and March 31, 2023:

 

 

Quarter Ended

 

 

Nine Months Ended

 

December 31,

 

December 31,

 

2023

2022

 

2023

2022

 

 

 

 

 

 

Net Earnings, as reported

$

129,138

$

117,184

 

$

400,540

$

361,184

Income Tax Expense

 

37,465

 

33,744

 

 

115,701

 

104,447

Interest Expense

 

10,128

 

8,932

 

 

32,571

 

24,842

Depreciation, Depletion and Amortization

 

37,468

 

34,815

 

 

111,347

 

103,689

EBITDA

$

214,199

$

194,675

 

$

660,159

$

594,162

Purchase accounting 1

 

-

 

-

 

 

4,568

 

2,067

Stock-based Compensation

 

4,357

 

4,088

 

 

15,356

 

13,636

Adjusted EBITDA

$

218,556

$

198,763

 

$

680,083

$

609,865

 

 

Twelve Months Ended

 

December 31,

March 31,

 

2023

2023

 

 

 

Net Earnings, as reported

$

500,896

$

461,540

Income Tax Expense

 

138,307

 

127,053

Interest Expense

 

42,900

 

35,171

Depreciation, Depletion and Amortization

 

146,212

 

138,554

EBITDA

$

828,315

$

762,318

Purchase accounting 1

 

4,568

 

2,067

Stock-based Compensation

 

18,875

 

17,155

Adjusted EBITDA

$

851,758

$

781,540

 

1 Represents the impact of purchase accounting on inventory costs and related business development costs

Attachment 7

Eagle Materials Inc.

Reconciliation of Net Debt to Adjusted EBITDA

(unaudited)

(dollars in thousands)

 

GAAP does not define “Net Debt” and it should not be considered as an alternative to cash flow or liquidity measures defined by GAAP. We define Net Debt as total debt minus cash and cash equivalents to indicate the amount of total debt that would remain if the Company applied the cash and cash equivalents held by it to the payment of outstanding debt. The Company also uses “Net Debt to Adjusted EBITDA,” which it defines as Net Debt divided by Adjusted EBITDA for the trailing twelve months, as a metric of its current leverage position. We present this metric for the convenience of the investment community and rating agencies who use such metrics in their analysis, and for investors who need to understand the metrics we use to assess performance and monitor our cash and liquidity positions.

 

 

As of

As of

 

December 31, 2023

March 31, 2023

 

 

 

Total debt, excluding debt issuance costs

$

1,042,000

$

1,099,500

Cash and cash equivalents

 

48,912

 

15,242

Net Debt

$

993,088

$

1,084,258

 

 

 

Trailing Twelve Months Adjusted EBITDA

$

851,758

$

781,540

Net Debt to Adjusted EBITDA

1.2x

1.4x

 

Contacts

For additional information, contact at 214-432-2000.

Michael R. Haack
President and Chief Executive Officer

D. Craig Kesler
Executive Vice President and Chief Financial Officer

Alex Haddock
Vice President, Investor Relations, Strategy and Corporate Development

Contacts

For additional information, contact at 214-432-2000.

Michael R. Haack
President and Chief Executive Officer

D. Craig Kesler
Executive Vice President and Chief Financial Officer

Alex Haddock
Vice President, Investor Relations, Strategy and Corporate Development