Eagle Materials Reports Second Quarter Results

DALLAS--(BUSINESS WIRE)--Oct. 29, 2024-- Eagle Materials Inc. (NYSE: EXP) today reported financial results for the second quarter of fiscal 2025 ended September 30, 2024. Notable items for the quarter are highlighted below (unless otherwise noted, all comparisons are with the prior year’s fiscal second quarter):

Second Quarter Fiscal 2025 Highlights

  • Record Revenue of $623.6 million
  • Net Earnings of $143.5 million
  • Net Earnings per diluted share of $4.26
  • Adjusted net earnings per share (Adjusted EPS) of $4.31
    • Adjusted EPS is a non-GAAP financial measure calculated by excluding non-routine items in the manner described in Attachment 6
  • Adjusted EBITDA of $242.2 million
    • 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 approximately 253,000 shares of Eagle’s common stock for $61 million

Commenting on the second quarter results, Michael Haack, President and CEO, said, “Eagle’s portfolio of businesses continued to perform well despite ongoing adverse weather during the quarter, which affected sales volumes primarily in our Cement and Concrete and Aggregates businesses. We generated record revenue of $624 million and increased cashflow from operations by 35% to $233 million. We used our strong cashflow to continue advancing our long-term growth and value-creation strategies: during the quarter, we completed a bolt-on aggregates acquisition, returned $69 million of cash to shareholders through share repurchases and dividends, and strengthened our balance sheet, ending the quarter with debt of $1.1 billion and a net leverage ratio (net debt to Adjusted EBITDA) of 1.2x.” (Net debt is a non-GAAP financial measure calculated by subtracting cash and cash equivalents from debt as described in Attachment 6).

Mr. Haack continued, “We remain optimistic about our near-term and future opportunities and confident in our ability to execute on them. The current economic environment is constructive for our businesses. Employment is strong, recent inflation data should support a more accommodative monetary environment, spending from the Infrastructure Investment and Jobs Act (IIJA) is still in the beginning phases, and housing supply remains chronically short because of decade-long production deficits.”

“We believe our well-positioned balance sheet should give us substantial financial flexibility and support our capital allocation priorities and long-term growth, and our consistent, disciplined operational and strategic approach should position us to continue to perform well through economic cycles and drive superior value for our shareholders.”

Segment Financial Results

Heavy Materials: Cement, Concrete and Aggregates

Revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, Joint Venture and intersegment Cement revenue, was $418.7 million, a 2% decrease. Heavy Materials operating earnings were down 9% to $114.9 million. Both declines resulted from lower sales volume, partially offset by higher sales prices as well as the effects of the Aggregates acquisition described below.

Cement revenue for the quarter, including Joint Venture and intersegment revenue, was down 2% to $352.8 million, and operating earnings were down 5% to $115.9 million. These declines reflect lower Cement sales volume and a $7 million increase in Cement maintenance costs, partially offset by higher Cement net sales prices. The average net sales price for the quarter was up 3% to $156.51 per ton, as a result of Cement price increases implemented earlier this calendar year. Cement sales volume decreased 5% to 2.0 million tons. Sales volume was affected by ongoing adverse weather during the quarter, particularly in Texas in July and in our eastern markets during September.

Concrete and Aggregates revenue decreased slightly to $65.9 million, reflecting lower Concrete and Aggregates sales volume, partially offset by higher Concrete and Aggregates pricing. The second quarter operating loss of $1.0 million reflects lower Concrete and Aggregates sales volume and approximately $0.7 million of expenses from the impact of the step-up in inventory values related to an Aggregates acquisition during the quarter. We acquired a small mine located near one of our existing mines in Kentucky. The acquisition was completed in August with a purchase price of $24.9 million.

Light Materials: Gypsum Wallboard and Paperboard

Revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, increased 5% to $244.1 million, reflecting higher Wallboard and Paperboard sales volume and sales prices. Gypsum Wallboard sales volume improved 3% to 752 million square feet (MMSF), while the average Gypsum Wallboard net sales price increased 1% to $236.88 per MSF.

Paperboard sales volume for the quarter was up 6% to 85,000 tons. The average Paperboard net sales price was $595.19 per ton, up 10%, consistent with the pricing provisions in our long-term sales agreements that factor in changes to input costs.

Operating earnings in the sector were $98.2 million, an increase of 5%, reflecting higher Wallboard sales volume and net sales prices.

Corporate General and Administrative Expenses

Corporate General and Administrative Expenses during the second quarter includes approximately $1.0 million of costs associated with business development and transaction diligence.

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 a 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 Tuesday, October 29, 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; the effects of adverse weather conditions on infrastructure and other construction projects as well as our facilities and operations; 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 of 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; consolidation of our 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 losses or other adverse outcomes from 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; competition; cyber-attacks or data security breaches, together with the costs of protecting our systems against such incidents and the possible effects thereof on our operations; 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 results 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, 2024, 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 Business Segment
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 Business Segment
Attachment 6 Reconciliation of Non-GAAP Financial Measures

 

Attachment 1

Eagle Materials Inc.

Statement of Consolidated Earnings

(dollars in thousands, except per share data)

(unaudited)

 

 

 

 

 

Quarter Ended
September 30,

 

Six Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

Revenue

$

623,619

 

 

$

622,236

 

 

$

1,232,308

 

 

$

1,223,757

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

419,775

 

 

 

413,218

 

 

 

841,596

 

 

 

838,744

 

 

 

 

 

 

 

 

 

Gross Profit

 

203,844

 

 

 

209,018

 

 

 

390,712

 

 

 

385,013

 

 

 

 

 

 

 

 

 

Equity in Earnings of Unconsolidated JV

 

9,276

 

 

 

10,346

 

 

 

16,992

 

 

 

13,505

 

Corporate General and Administrative Expenses

 

(17,879

)

 

 

(16,576

)

 

 

(33,528

)

 

 

(28,255

)

Other Non-Operating Income

 

724

 

 

 

1,605

 

 

 

3,407

 

 

 

1,818

 

 

 

 

 

 

 

 

 

Earnings before Interest and Income Taxes

 

195,965

 

 

 

204,393

 

 

 

377,583

 

 

 

372,081

 

 

Interest Expense, net

 

(10,714

)

 

 

(10,204

)

 

 

(21,398

)

 

 

(22,443

)

 

 

 

 

 

 

 

 

Earnings before Income Taxes

 

185,251

 

 

 

194,189

 

 

 

356,185

 

 

 

349,638

 

 

Income Tax Expense

 

(41,731

)

 

 

(43,636

)

 

 

(78,823

)

 

 

(78,236

)

 

 

 

 

 

 

 

 

Net Earnings

$

143,520

 

 

$

150,553

 

 

$

277,362

 

 

$

271,402

 

 

 

 

 

 

 

 

 

 

NET EARNINGS PER SHARE

 

 

 

 

 

 

 

Basic

$

4.29

 

 

$

4.29

 

 

$

8.26

 

 

$

7.72

 

Diluted

$

4.26

 

 

$

4.26

 

 

$

8.19

 

 

$

7.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

Basic

 

33,431,315

 

 

 

35,056,973

 

 

 

33,581,970

 

 

 

35,165,268

 

Diluted

 

33,716,036

 

 

 

35,336,966

 

 

 

33,853,703

 

 

 

35,433,837

 

 

Attachment 2

Eagle Materials Inc.

Revenue and Earnings by Business Segment

(dollars in thousands)

(unaudited)

 

 

 

 

 

Quarter Ended
September 30,

 

Six Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Revenue*

 

 

 

 

 

 

 

 

 

Heavy Materials:

 

 

 

 

Cement (Wholly Owned)

$

313,571

 

$

322,593

 

$

613,143

 

$

614,365

 

Concrete and Aggregates

 

65,930

 

 

66,104

 

 

126,968

 

 

133,519

 

 

 

379,501

 

 

388,697

 

 

740,111

 

 

747,884

 

 

 

 

 

 

Light Materials:

 

 

 

 

Gypsum Wallboard

 

214,975

 

 

209,233

 

 

432,801

 

 

428,330

 

Recycled Paperboard

 

29,143

 

 

24,306

 

 

59,396

 

 

47,543

 

 

 

244,118

 

 

233,539

 

 

492,197

 

 

475,873

 

 

 

 

 

 

Total Revenue

$

623,619

 

$

622,236

 

$

1,232,308

 

$

1,223,757

 

 

 

Segment Operating Earnings

 

 

 

 

 

 

 

 

 

Heavy Materials:

 

 

 

 

Cement (Wholly Owned)

$

106,657

 

$

111,083

 

$

188,066

 

$

181,985

 

Cement (Joint Venture)

 

9,276

 

 

10,346

 

 

16,992

 

 

13,505

 

Concrete and Aggregates

 

(995

)

 

4,640

 

 

1,985

 

 

11,674

 

 

 

114,938

 

 

126,069

 

 

207,043

 

 

207,164

 

 

 

 

 

 

Light Materials:

 

 

 

 

Gypsum Wallboard

 

90,141

 

 

85,705

 

 

184,117

 

 

176,562

 

Recycled Paperboard

 

8,041

 

 

7,590

 

 

16,544

 

 

14,792

 

 

 

98,182

 

 

93,295

 

 

200,661

 

 

191,354

 

 

 

 

 

 

Sub-total

 

213,120

 

 

219,364

 

 

407,704

 

 

398,518

 

 

 

 

 

 

Corporate General and Administrative Expense

 

(17,879

)

 

(16,576

)

 

(33,528

)

 

(28,255

)

Other Non-Operating Income

 

724

 

 

1,605

 

 

3,407

 

 

1,818

 

 

 

 

 

 

Earnings before Interest and Income Taxes

$

195,965

 

$

204,393

 

$

377,583

 

$

372,081

 

 

* 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

(dollars in thousands, except per unit data)

(unaudited)

 

 

 

Sales Volume

 

Quarter Ended
September 30,

 

Six Months Ended
September 30,

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

 

 

 

 

 

 

 

Cement (M Tons):

 

 

 

 

 

 

Wholly Owned

1,848

1,959

-6

%

3,615

3,807

-5

%

Joint Venture

176

170

+4

%

356

335

+6

%

 

2,024

2,129

-5

%

3,971

4,142

-4

%

 

 

 

 

 

 

 

Concrete (M Cubic Yards)

348

362

-4

%

691

747

-7

%

 

 

 

 

 

 

 

Aggregates (M Tons)

979

1,171

-16

%

1,778

2,328

-24

%

 

 

 

 

 

 

 

Gypsum Wallboard (MMSFs)

752

733

+3

%

1,509

1,496

+1

%

 

 

 

 

 

 

 

Recycled Paperboard (M Tons):

 

 

 

 

 

 

Internal

35

33

+6

%

74

73

+1

%

External

50

47

+6

%

102

90

+13

%

 

85

80

+6

%

176

163

+8

%

 

 

 

 

 

 

 

 

Average Net Sales Price*

 

Quarter Ended
September 30,

 

Six Months Ended
September 30,

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

 

 

 

 

 

 

 

Cement (Ton)

$

156.51

$

151.99

+3%

$

156.31

$

149.70

+4%

Concrete (Cubic Yard)

$

149.16

$

145.39

+3%

$

148.86

$

143.55

+4%

Aggregates (Ton)

$

12.69

$

11.15

+14%

$

12.65

$

11.21

+13%

Gypsum Wallboard (MSF)

$

236.88

$

233.69

+1%

$

238.16

$

235.20

+1%

Recycled Paperboard (Ton)

$

595.19

$

542.28

+10%

$

596.33

$

539.35

+11%

 

*Net of freight and delivery costs billed to customers.

 

 

 

Intersegment and Cement Revenue

 

Quarter Ended
September 30,

 

Six Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Intersegment Revenue:

 

 

 

 

 

 

 

Cement

$

10,384

 

$

9,251

 

$

20,664

 

$

19,388

Concrete and Aggregates

 

4,050

 

 

3,783

 

 

7,827

 

 

6,821

Recycled Paperboard

 

21,634

 

 

18,710

 

 

45,621

 

 

40,801

 

$

36,068

 

$

31,744

 

$

74,112

 

$

67,010

 

 

 

 

 

 

 

 

Cement Revenue:

 

 

 

 

 

 

 

Wholly Owned

$

313,571

 

$

322,593

 

$

613,143

 

$

614,365

Joint Venture

 

28,825

 

 

28,907

 

 

58,135

 

 

56,030

 

$

342,396

 

$

351,500

 

$

671,278

 

$

670,395

 

Attachment 4

Eagle Materials Inc.

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

September 30,

 

March 31,

 

 

2024

 

2023

 

2024*

ASSETS

 

 

 

 

 

 

Current Assets –

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

93,909

 

 

$

47,321

 

 

$

34,925

 

Accounts and Notes Receivable, net

 

 

246,349

 

 

 

244,832

 

 

 

202,985

 

Inventories

 

 

375,602

 

 

 

301,374

 

 

 

373,923

 

Federal Income Tax Receivable

 

 

2,474

 

 

 

8,144

 

 

 

9,910

 

Prepaid and Other Assets

 

 

12,115

 

 

 

10,135

 

 

 

5,950

 

Total Current Assets

 

 

730,449

 

 

 

611,806

 

 

 

627,693

 

 

 

 

 

 

 

 

Property, Plant and Equipment, net

 

 

1,724,288

 

 

 

1,676,738

 

 

 

1,676,217

 

Investments in Joint Venture

 

 

130,685

 

 

 

100,115

 

 

 

113,478

 

Operating Lease Right of Use Asset

 

 

17,316

 

 

 

22,068

 

 

 

19,373

 

Goodwill and Intangibles

 

 

489,232

 

 

 

490,180

 

 

 

486,117

 

Other Assets

 

 

29,833

 

 

 

16,187

 

 

 

24,141

 

 

 

$

3,121,803

 

 

$

2,917,094

 

 

$

2,947,019

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities –

 

 

 

 

 

 

Accounts Payable

 

$

131,411

 

 

$

113,737

 

 

$

127,183

 

Accrued Liabilities

 

 

95,337

 

 

 

90,815

 

 

 

94,327

 

Income Taxes Payable

 

 

69,450

 

 

 

1,778

 

 

 

-

 

Current Portion of Long-Term Debt

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

Operating Lease Liabilities

 

 

6,029

 

 

 

8,205

 

 

 

7,899

 

Total Current Liabilities

 

 

312,227

 

 

 

224,535

 

 

 

239,409

 

Long-term Liabilities

 

 

68,261

 

 

 

62,590

 

 

 

70,979

 

Bank Credit Facility

 

 

155,000

 

 

 

162,000

 

 

 

170,000

 

Bank Term Loan

 

 

167,500

 

 

 

177,500

 

 

 

172,500

 

2.500% Senior Unsecured Notes due 2031

 

 

741,433

 

 

 

740,165

 

 

 

740,799

 

Deferred Income Taxes

 

 

245,733

 

 

 

243,670

 

 

 

244,797

 

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 33,539,154; 35,031,889 and 34,143,945 Shares, respectively

 

 

335

 

 

 

350

 

 

 

341

 

Capital in Excess of Par Value

 

 

-

 

 

 

-

 

 

 

-

 

Accumulated Other Comprehensive Losses

 

 

(3,283

)

 

 

(3,451

)

 

 

(3,373

)

Retained Earnings

 

 

1,434,597

 

 

 

1,309,735

 

 

 

1,311,567

 

Total Stockholders’ Equity

 

 

1,431,649

 

 

 

1,306,634

 

 

 

1,308,535

 

 

 

$

3,121,803

 

 

$

2,917,094

 

 

$

2,947,019

 

*From audited financial statements

 

Attachment 5

Eagle Materials Inc.

Depreciation, Depletion and Amortization by Business Segment

(dollars in thousands)

(unaudited)

 

The following table presents Depreciation, Depletion and Amortization by business segment for the quarters ended September 30, 2024 and 2023:

 

 

 

Depreciation, Depletion and Amortization

 

Quarter Ended
September 30,

 

2024

 

2023

 

 

 

Cement

$

22,907

$

22,187

Concrete and Aggregates

 

5,283

 

4,962

Gypsum Wallboard

 

6,451

 

5,548

Recycled Paperboard

 

3,669

 

3,708

Corporate and Other

 

767

 

792

 

$

39,077

$

37,197

 

 

 

 

Attachment 6

Eagle Materials Inc.

Reconciliation of Non-GAAP Financial Measures

(unaudited)

(dollars in thousands, other than earnings per share amounts, and number of shares in thousands)

 

Adjusted Earnings per Diluted Share (Adjusted EPS)
Adjusted EPS is a non-GAAP financial measure and represents net earnings per diluted share excluding the impacts from non-routine items, such as the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting and business development costs and litigation losses (Non-routine Items). Management uses measures of earnings excluding the impact of Non-routine Items as a performance measure to compare operating results of the Company from period to period and for purposes of its budgeting and planning processes. Although management believes that Adjusted EPS is useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation, or as a substitute for, earnings per diluted share and the related financial information prepared in accordance with GAAP. In addition, our presentation of Adjusted EPS may not be the same as similarly titled measures reported by other companies, limiting its usefulness as a comparative measure. The following shows the calculation of Adjusted EPS and reconciles Adjusted EPS to net earnings per diluted share in accordance with GAAP for the quarters ended September 30, 2024 and 2023:

 

 

Quarter Ended
September 30,

 

2024

 

2023

 

 

 

Net Earnings, as reported

$

143,520

 

$

150,553

 

 

 

 

Non-routine Items:

 

 

Acquisition accounting and related expenses 1

$

1,618

 

$

1,107

 

Litigation loss

 

700

 

 

-

 

Total Non-routine Items before Taxes

$

2,318

 

$

1,107

 

Tax Impact on Non-routine Items

 

(522

)

 

(249

)

After-tax Impact of Non-routine Items

$

1,796

 

$

858

 

 

 

 

Adjusted Net Earnings

$

145,316

 

$

151,411

 

 

 

 

Diluted Average Shares Outstanding

 

33,716

 

 

35,337

 

 

 

 

 

 

 

Net earnings per diluted share, as reported

$

4.26

 

$

4.26

 

Adjusted net earnings per diluted share (Adjusted EPS)

$

4.31

 

$

4.28

 

 

1 Represents the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting and business development costs

Attachment 6, continued

 

 

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 ended September 30, 2024 and 2023, and the trailing twelve months ended September 30, 2024 and March 31, 2024:

 

Quarter Ended

 

Six Months Ended

 

September 30,

 

September 30,

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

Net Earnings, as reported

$

143,520

$

150,553

$

277,362

$

271,402

Income Tax Expense

 

41,731

 

43,636

 

78,823

 

78,236

Interest Expense

 

10,714

 

10,204

 

21,398

 

22,443

Depreciation, Depletion and Amortization

 

39,077

 

37,197

 

77,427

 

73,879

EBITDA

$

235,042

$

241,590

$

455,010

$

445,960

Acquisition accounting and related expenses 1

 

1,618

 

1,107

 

1,618

 

4,568

Litigation loss

 

700

 

-

 

700

 

-

Stock-based Compensation

 

4,864

 

4,542

 

9,403

 

10,999

Adjusted EBITDA

$

242,224

$

247,239

$

466,731

$

461,527

 

 

Twelve Months Ended

 

September 30,

 

March 31,

 

2024

 

2024

 

 

 

Net Earnings, as reported

$

483,599

$

477,639

Income Tax Expense

 

140,885

 

140,298

Interest Expense

 

41,212

 

42,257

Depreciation, Depletion and Amortization

 

153,380

 

149,832

EBITDA

$

819,076

$

810,026

Acquisition accounting and related expenses 1

 

1,618

 

4,568

Litigation loss

 

700

 

-

Stock-based Compensation

 

18,304

 

19,900

Adjusted EBITDA

$

839,698

$

834,494

 

1 Represents the impact of selling acquired inventory after its markup to fair value as part of acquisition accounting and business development costs

 

Attachment 6, continued

 

Reconciliation of Net Debt to Adjusted EBITDA
GAAP does not define “Net Debt” and it should not be considered as an alternative to debt as 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 an alternative metric to assist it in understanding its 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

 

September 30, 2024

March 31, 2024

 

 

 

Total debt, excluding debt issuance costs

$

1,082,500

$

1,102,500

Cash and cash equivalents

 

93,909

 

34,925

Net Debt

$

988,591

$

1,067,575

 

 

 

Trailing Twelve Months Adjusted EBITDA

$

839,698

 

834,494

Net Debt to Adjusted EBITDA

1.2x

1.3x

 

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
Senior Vice President, Investor Relations, Strategy and Corporate Development

Source: Eagle Materials Inc.