Eagle Materials Inc. reported financial results for the third quarter of fiscal 2016 ended Dec. 31, 2015. The company is reporting:
- Quarterly revenues of $277.4 million, down 5 percent.
- Net earnings of $45.8 million, down 12 percent.
- Cash flow from operations of $108.7 million, up 66 percent.
- Record third quarter Cement earnings of $41.8 million, up 11 percent.
Eagle’s construction products and building materials businesses performed well during the quarter, with the Cement business reporting record third quarter operating earnings despite our cement businesses in Texas and Oklahoma being impacted by heavy rains in October and December which resulted in lower sales volumes in both of those markets. Additionally, in Texas, increased demand for construction grade cement continues to offset much of the impact from lower oil well cement demand.
Operating earnings from Cement during the quarter were a third quarter record $41.8 million, and 11 percent higher than the same quarter a year ago. The earnings increase was driven primarily by a 4 percent increase in average net cement sales prices and record quarterly cement sales volumes.
Cement revenues for the third quarter, including joint venture and intersegment revenues, totaled $135.4 million, 9 percent greater than the same quarter last year. Our average net cement sales price for this quarter was $97.10 per ton, 4 percent higher than the same quarter last year. Cement sales volumes were a third quarter record 1.2 million tons, 1 percent higher than the same quarter a year ago.
Concrete and Aggregates reported operating earnings of $1.5 million for the third quarter, a 7 percent decline from the same quarter a year ago, reflecting higher raw material and quarry maintenance costs offset by improved concrete and aggregates pricing along with improved concrete sales volumes.
Oil and Gas Proppants reported third quarter revenues of $8.5 million, a 73 percent decline from the prior year, which reflects the significant slowdown in oil and gas drilling and completion activities partially offtheset by acquisition of CRS Proppants during the third quarter of the prior fiscal year. Sequentially, frac sand sales volumes and sales prices declined 47 percent and 24 percent, respectively. The third quarter’s operating loss of $9.2 million compares to operating income of $3.2 million in the same quarter a year ago.