Page 1

E Eagle Materials Eagle Materials Reports First Quarter Results Jul 28 , 2021 DALLAS -- ( BUSINESS WIRE ) -- Jul . 28 , 2021-- Eagle Materials Inc. ( NYSE : EXP ) today reported financial results for the first quarter of fiscal 2022 ended June 30 , 2021. Notable items for the quarter are highlighted below . ( Unless otherwise noted , all comparisons are with the prior year's fiscal first quarter ) : First Quarter Fiscal 2022 Highlights • Record revenue of $ 476 million , up 11 % • Net earnings per diluted share of $ 2.25 , down 3 % • Prior year results benefitted from a $ 52.0 million , or $ 0.93 per share , gain on the sale of our northern California concrete and aggregates businesses • Eagle repurchased approximately 426,000 shares of its common stock Commenting on the first quarter results , Michael Haack , President and CEO , said , “ Fiscal 2022 is off to a good start for Eagle . In the first quarter we achieved record revenue of $ 476 million and net earnings per diluted share of $ 2.25 . These results reflect strong market demand in both of our major business lines and exceptional operational execution by our team . Our Wallboard business continues to benefit from robust residential construction activity across our markets , and our Cement business benefited from sustained high levels of infrastructure spending . Gross margin increased to 26.6 % , an improvement of 260 basis points over the prior year , in spite of heavy rainfall in our Texas markets , which resulted in lower Cement sales volume , and additional Cement maintenance costs this quarter compared with a year ago . " Mr. Haack continued , " We expect underlying market conditions to remain strong as the US economy recovers , and we are well - positioned to continue to benefit from this growth . On July 1 , 2021 , we completed the issuance of $ 750 million of 10 - year senior notes with an interest rate of 2.50 % , which further strengthened our capital structure . We also restarted our share repurchase program and repurchased approximately 426,000 shares of our common stock during the quarter . With Eagle's excellent balance sheet and steadfast execution of our operating strategies , we are extremely well - positioned for a strong fiscal 2022. " 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 $ 315.0 million , a 3 % improvement . Heavy Materials operating earnings also increased 3 % to $ 67.9 million primarily because of improved Cement sales prices . Cement revenue , including Joint Venture and intersegment revenue , was up 3 % to $ 270.3 million . Operating earnings were also up 3 % to a record $ 62.5 million . These increases reflect improved Cement quarterly sales prices , partially offset by lower Cement sales volume . The average net Cement sales price for the quarter was up 7 % to $ 116.34 per ton . Cement sales volume for the quarter was down 2 % to 2.0 million tons , mainly because of heavy rainfall in Texas during the quarter . Concrete and Aggregates revenue increased 2 % to $ 44.8 million , reflecting improved Concrete and Aggregates prices , partially offset by lower Aggregates sales volume . First quarter operating earnings decreased 1 % to $ 5.3 million , reflecting lower Aggregates sales volume partially offset by improved Concrete and Aggregates net sales prices . Light Materials : Gypsum Wallboard and Paperboard Revenue in the Light Materials sector , which includes Gypsum Wallboard and Paperboard , increased 25 % to $ 191.3 million , reflecting higher Wallboard sales volume and prices . Gypsum Wallboard sales volume increased 8 % to 763 million square feet ( MMSF ) , while the average Gypsum Wallboard net sales price increased 21 % to $ 176.79 per MSF . Paperboard sales volume increased 9 % to a record 84,000 tons . The average Paperboard net sales price in the quarter was $ 498.49 per ton , up 8 % , consistent with the pricing provisions in our long - term sales agreements . Operating earnings were $ 66.6 million in the sector , an increase of 51 % , reflecting increased 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 ,