Page 1

EX Eagle Materials Eagle Materials Reports Strong Second Quarter Results Oct 28 , 2021 DALLAS -- ( BUSINESS WIRE ) -- Oct . 28 , 2021-- Eagle Materials Inc. ( NYSE : EXP ) today reported financial results for the second quarter of fiscal 2022 ended September 30 , 2021. 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 2022 Highlights • Record revenue of $ 510 million , up 14 % • Record net earnings per share of $ 2.46 , up 6 % • Adjusted net earnings per share from continuing operations ( Adjusted EPS ) of $ 2.73 , up 26 % • Adjusted EPS is a non - GAAP financial measure calculated by excluding non - routine items ( including certain non - cash expenses ) in the manner described in Attachment 6 • Issued $ 750 million of 2.50 % senior notes due July 2031 • • Redeemed $ 350 million of 4.50 % senior notes due August 2026 Repurchased 1.3 million shares of Eagle's common stock for $ 186 million Commenting on the second quarter results , Michael Haack , President and CEO , said , " Eagle achieved new quarterly records for revenue and earnings per share during the quarter . Despite price inflation in energy and recycled paper , our gross profit margins improved 310 basis points from the prior year to 30.5 % . These results reflect continued strength in underlying market conditions and strong execution by our team . Our recent pricing actions across much of our footprint will continue to help offset increases in certain input costs , as will our consistent focus on driving operational efficiencies . " Mr. Haack continued , “ During the quarter , we completed the refinancing of Eagle's capital structure by issuing $ 750 million of 10 - year senior notes with an interest rate of 2.50 % and redeeming previously issued debt with a higher interest rate . We also returned nearly $ 200 million to shareholders through our quarterly cash dividend and the repurchase of 1.3 million shares of our common stock . We are well - positioned for a strong second half of fiscal 2022 and remain committed to delivering sustainable growth and superior shareholder value . " 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 $ 341.1 million , a 5 % improvement . Heavy Materials operating earnings increased 13 % to $ 96.3 million primarily because of improved Cement sales prices . Cement revenue for the quarter , including Joint Venture and intersegment revenue , was up 4 % to $ 288.3 million , and operating earnings were a record $ 88.8 million , up 11 % . These increases reflect improved Cement net sales prices and sales volume . The average net sales price for the quarter was up 6 % to $ 117.78 per ton . Cement sales volume for the quarter was a record 2.2 million tons , up 1 % . Concrete and Aggregates revenue increased 14 % to $ 52.8 million , and operating earnings increased 43 % to $ 7.5 million . The improvements reflect higher sales prices and sales volume . Light Materials : Gypsum Wallboard and Paperboard Revenue in the Light Materials sector , which includes Gypsum Wallboard and Paperboard , increased 28 % to $ 200.8 million , reflecting higher Wallboard sales volume and prices . Gypsum Wallboard sales volume increased 2 % to 736 million square feet ( MMSF ) , while the average Gypsum Wallboard net sales price increased 33 % to $ 190.93 per MSF . Paperboard sales volume for the quarter was flat from the prior year at 87,000 tons . The average Paperboard net sales price was $ 524.54 per ton , up 2 % , consistent with the pricing provisions in our long - term sales agreements . Operating earnings were $ 67.3 million in the sector , an increase of 39 % , reflecting increased Wallboard sales volume and pricing , partially offset by higher raw material costs , namely recycled fiber and energy . 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 ,