Eagle Materials Proppant Revenue Up 147 Percent

Eagle Materials Inc. reported record revenue of $1.4 billion, up 14 percent for fiscal year 2018; and record revenue of $284.7 million, up 2 percent for its fiscal fourth quarter ended March 31, 2018.

Eagle’s Oil and Gas Proppants segment reported fiscal 2018 revenue of $85.5 million, an increase of 147 percent, primarily reflecting a 170 percent increase in frac sand sales volume. The fiscal 2018 operating loss was $6.4 million versus an operating loss of $14.6 million in the prior year.

Eagle’s Oil and Gas Proppants segment reported fourth quarter revenue of $22.6 million, an increase of 43 percent, primarily reflecting a 59 percent increase in frac sand sales volume. The fourth quarter sales volume was impacted by harsh winter weather and rail delays. The fourth quarter’s operating loss of $1.6 million includes depreciation, depletion and amortization of $3.7 million.

Commenting on the results, Dave Powers, president and CEO, said, “Our track record of competitive margin performance remains industry leading due to our long-standing commitment to improving our low-cost producer positions, through wise investment in our people, processes and operations. We have invested more than $1.5 billion so far this cycle to profitably grow our businesses and create shareholder value. As we look ahead, our strong balance sheet and anticipated cash flows, which have been enhanced by tax reform, position us to continue to execute on value-creation opportunities.”

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