Eagle Materials Inc. reported financial results for the third quarter of fiscal 2015 which ended Dec. 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 Nov. 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 Nov. 14 through Dec. 31, 2014.
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 our third quarter Cement sales volume. 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.
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 it built up its inventory of internally produced sand at its 1.5-million-ton Corpus Christi facility.
“Beginning in our fiscal 2015, we have begun reporting our frac-sand business as a separately reportable segment: Oil and Gas Proppants,” the company said. ‘The results of this business were previously included in our Concrete and Aggregates segment during the start-up phase and have been reclassified to conform to the current year's presentation.”