Eagle Materials reported revenues up 19 percent to $1.1 billion in its financial results for fiscal year 2015 and the fiscal fourth quarter ended March 31, 2015.
Highlights:
- Record fiscal year 2015 revenues of $1.1 billion, up 19 percent.
- Fiscal year 2015 net earnings per diluted share of $3.71, up 49 percen.t
- Record fourth quarter revenues of $223.8 million, up 18 percent.
- Fourth quarter earnings per diluted share of $0.93, up 107 percent.
- Includes a benefit of $0.39 per diluted share related to the settlement of a lawsuit against the IRS and costs of $0.06 per diluted share related to acquisition and litigation costs.
- Eagle entered into a definitive agreement to acquire Holcim (US) Inc.’s slag grinding plant in South Chicago.
Fiscal 2015 earnings before interest and income taxes increased 32 percent from the prior year to $264.7 million, reflecting improved sales volumes across nearly all business lines, with cement sales volumes setting an annual record of 4.8 million tons. Net sales prices also strengthened across all businesses. The results of operations for the recently acquired CRS Proppants LLC, for the period from Nov., 14, 2014, through March 31, 2015, are included in the results disclosed in this press release.
Fourth quarter earnings before interest and income taxes increased 31 percent to $44.4 million, as fourth quarter sales volumes improved across nearly all businesses, reflecting improving construction fundamentals in the U.S. In addition, improved pricing was achieved across all businesses.
Eagle’s Oil and Gas Proppants business reported fiscal 2015 revenues of $81.4 million and an operating loss of $2.5 million. Depreciation, depletion and amortization expense was $8.8 million and purchase price adjustments totaled $1.5 million during fiscal 2015.
“The increased revenue reflects the ramp up of our greenfield frac sand business over the past year as well as the acquisition of CRS Proppants,” the company stated. “We are pleased with the continuing growth and development of our frac sand business during fiscal 2015, including opening our frac sand mine in Northern Illinois, opening additional distribution sites in south Texas and acquiring CRS Proppants.
“The recent decline in rig count and completion activity has negatively impacted oil and gas activity leading to reduced demand and pricing for proppants. We expect these conditions to persist for the remainder of calendar 2015; however, we remain focused on strengthening our low-cost position and taking this opportunity to continue to build our low-delivered cost position to targeted shale plays,” the company said.