Eagle Materials Inc. (EXP, Financial) filed Quarterly Report for the period ended 2008-12-31.
Eagle Materials Inc. is a Dallas-based company that manufactures and distributes Cement Gypsum Wallboard Recycled Paperboard and Concrete and Aggregates. Eagle Materials Inc. has a market cap of $827.77 million; its shares were traded at around $21.94 with a P/E ratio of 20.9 and P/S ratio of 1.1. The dividend yield of Eagle Materials Inc. stocks is 2.1%. Eagle Materials Inc. had an annual average earning growth of 10.5% over the past 10 years.
Consolidated operating earnings decreased 30% and 48% during the three and nine month periods ended December 31, 2008, respectively, as compared to similar periods ended December 31, 2007. The decline in operating earnings was primarily related to our gypsum wallboard and cement businesses. Gypsum wallboard operating earnings declined 59% during the three month period ended December 31, 2008 primarily due to decreased sales volumes and increased manufacturing costs, which were offset slightly by increased average sales prices. Gypsum wallboard operating earnings for the nine month period ended December 31, 2008 declined 108% due to an 8% decline in sales volume, a 15% decline in average sales price and an increase in average unit costs. Cement operating earnings declined by 17% and 21% during the three and nine month periods ended December 31, 2008, respectively, as compared to the same period in fiscal 2007, primarily due to reduced sales volumes, particularly in our Illinois, Nevada and California markets.
Corporate general and administrative expenses increased 20% and decreased 2% for the three and nine months periods ended December 31, 2008, respectively, as compared to the similar periods in 2007. The increase in corporate overhead during the three month period ended December 31, 2008 is due primarily to stock compensation costs related to the stock option grant in August 2008.
As of December 31, 2008, the effective tax rate for fiscal 2009 was 30%, as compared to 32% for fiscal 2008. The expected tax rate the full fiscal year 2009 is estimated to be 30%, as compared to 32% for fiscal 2008. The decrease in the expected rate is primarily related to the greater impact our depletion deduction has on our decreased operating income.
Pre-tax earnings declined during the three and nine month periods primarily due to the decline in sales volumes for all of our businesses and increased interest expense due to our additional borrowings. As a result, our net income declined 50% and 63%, during the three and nine month periods ended December 31, 2008, respectively, as compared to similar periods in 2007, while our diluted earnings per share declined 48% and 61% during the three and nine month periods ended December 31, 2008, respectively, as compared to similar periods in 2007.
Revenues declined 16% and 19% for the three and nine month periods ended December 31, 2008, respectively, as compared to the three and nine month periods ended December 31, 2007, primarily due to the reduction in sales volume of 17% and 8%, respectively, during fiscal 2008. Revenue for the three month period ended December 31, 2008 was positively impacted by a 3% increase in average sales price as compared to the three month period ended December 31, 2007, while revenues for the nine month period ended December 31, 2008 were adversely impacted by a 15% decline in average sales prices as compared to the nine month period ended December 31, 2007. The decline in sales volumes during the three and nine month periods ended December 31, 2008 was partially offset by the startup of our Georgetown, South Carolina production facility in December 2007. The contraction of the residential housing market, which typically comprises 50% of the demand for gypsum wallboard, has resulted in decreased opportunities and downward pressure on pricing.
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Eagle Materials Inc. is a Dallas-based company that manufactures and distributes Cement Gypsum Wallboard Recycled Paperboard and Concrete and Aggregates. Eagle Materials Inc. has a market cap of $827.77 million; its shares were traded at around $21.94 with a P/E ratio of 20.9 and P/S ratio of 1.1. The dividend yield of Eagle Materials Inc. stocks is 2.1%. Eagle Materials Inc. had an annual average earning growth of 10.5% over the past 10 years.
Highlight of Business Operations:
We conduct one of our cement operations through a joint venture, Texas Lehigh Cement Company LP, which is located in Buda, Texas (the Joint Venture). We own a 50% interest in the joint venture and account for our interest under the equity method of accounting. We proportionately consolidate our 50% share of the Joint Ventures revenues and operating earnings in the presentation of our cement segment, which is the way management organizes the segments within the Company for making operating decisions and assessing performance.Consolidated operating earnings decreased 30% and 48% during the three and nine month periods ended December 31, 2008, respectively, as compared to similar periods ended December 31, 2007. The decline in operating earnings was primarily related to our gypsum wallboard and cement businesses. Gypsum wallboard operating earnings declined 59% during the three month period ended December 31, 2008 primarily due to decreased sales volumes and increased manufacturing costs, which were offset slightly by increased average sales prices. Gypsum wallboard operating earnings for the nine month period ended December 31, 2008 declined 108% due to an 8% decline in sales volume, a 15% decline in average sales price and an increase in average unit costs. Cement operating earnings declined by 17% and 21% during the three and nine month periods ended December 31, 2008, respectively, as compared to the same period in fiscal 2007, primarily due to reduced sales volumes, particularly in our Illinois, Nevada and California markets.
Corporate general and administrative expenses increased 20% and decreased 2% for the three and nine months periods ended December 31, 2008, respectively, as compared to the similar periods in 2007. The increase in corporate overhead during the three month period ended December 31, 2008 is due primarily to stock compensation costs related to the stock option grant in August 2008.
As of December 31, 2008, the effective tax rate for fiscal 2009 was 30%, as compared to 32% for fiscal 2008. The expected tax rate the full fiscal year 2009 is estimated to be 30%, as compared to 32% for fiscal 2008. The decrease in the expected rate is primarily related to the greater impact our depletion deduction has on our decreased operating income.
Pre-tax earnings declined during the three and nine month periods primarily due to the decline in sales volumes for all of our businesses and increased interest expense due to our additional borrowings. As a result, our net income declined 50% and 63%, during the three and nine month periods ended December 31, 2008, respectively, as compared to similar periods in 2007, while our diluted earnings per share declined 48% and 61% during the three and nine month periods ended December 31, 2008, respectively, as compared to similar periods in 2007.
Revenues declined 16% and 19% for the three and nine month periods ended December 31, 2008, respectively, as compared to the three and nine month periods ended December 31, 2007, primarily due to the reduction in sales volume of 17% and 8%, respectively, during fiscal 2008. Revenue for the three month period ended December 31, 2008 was positively impacted by a 3% increase in average sales price as compared to the three month period ended December 31, 2007, while revenues for the nine month period ended December 31, 2008 were adversely impacted by a 15% decline in average sales prices as compared to the nine month period ended December 31, 2007. The decline in sales volumes during the three and nine month periods ended December 31, 2008 was partially offset by the startup of our Georgetown, South Carolina production facility in December 2007. The contraction of the residential housing market, which typically comprises 50% of the demand for gypsum wallboard, has resulted in decreased opportunities and downward pressure on pricing.
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