Eagle Materials Inc. reported financial results for the first quarter of fiscal 2017 ended June 30, 2016. The company is reporting:
- Record revenues of $297.5 million, up 4 percent.
- Earnings before interest and income taxes of $71.2 million, up 18 percent.
- Net Earnings of $45.3 million, up 20 percent.
- Net earnings per diluted share of $0.93, up 24 percent.
Oil and Gas Proppants reported first quarter revenues of $5.1 million, a 78 percent decrease from the prior year reflecting a 68 percent decline in frac sand sales volumes. The first quarter's operating loss of $5.9 million compares with an operating loss of $5.6 million in the same quarter a year ago.
The company’s frac sand business continues to be impacted by the significant slowdown in oil and gas drilling activity over the past 18 months; however, the company said it will continue to right-size the business to meet current activity levels.
Eagle’s construction products and building materials businesses on the other hand performed well during the quarter. Concrete and Aggregates reported revenues for the first quarter of $34.5 million, an increase of 22 percent. First quarter operating earnings were $3.7 million for the first quarter, a 91 percent improvement from the same quarter a year ago, reflecting improved concrete and aggregates pricing and sales volumes.
Cement revenues for the first quarter, including joint venture and intersegment revenues, totaled $144.8 million, which was 13 percent higher than the same quarter last year. The average net sales price for this quarter was $100.63 per ton, 2 percent higher than the same quarter last year.
Wholly owned average net sales prices improved 6 percent from the same quarter last year. The average net cement sales price at its joint venture with Texas Lehigh Cement Co. declined year-over-year reflecting the shift from oil well cement to construction-grade cement over the past year; however, profitability remained strong at the joint venture. Total Cement sales volumes for the quarter were 1.3 million tons, 4 percent higher than the same quarter a year ago.
Operating earnings from Cement for the first quarter were a record $31.6 million and 23 percent greater than the same quarter a year ago. The earnings improvement was driven primarily by improved average net cement sales prices and cement sales volumes and $3.1 million of earnings from the Skyway Cement facility acquired in July of 2015.