Eagle Materials Inc. (EXP, Financial) filed Quarterly Report for the period ended 2009-12-31.
Eagle Materials Inc. has a market cap of $1.02 billion; its shares were traded at around $23.19 with a P/E ratio of 30.92 and P/S ratio of 1.69. The dividend yield of Eagle Materials Inc. stocks is 1.72%. Eagle Materials Inc. had an annual average earning growth of 10.5% over the past 10 years.EXP is in the portfolios of Wallace Weitz of Weitz Wallace R & Co, Ron Baron of Baron Funds, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Bruce Kovner of Caxton Associates.
Interest Expense, Net. Net interest expense decreased 26% and 29% during the three and nine month periods ended December 31, 2009, respectively. The decrease in expense is related primarily to our repurchase of $100 million in private placement debt during February 2009, resulting in lower average borrowings during fiscal 2010, as compared to fiscal 2009. Additionally, interest rates for our revolving line of credit and unrecognized tax benefits were lower during the three and nine month periods ended December 31, 2009 as compared to the rates during the similar periods in 2008.
Income Taxes. As of December 31, 2009 the estimated tax rate for fiscal 2010 was 28%, as compared to 30% for fiscal 2009. The expected tax rate for the full fiscal year is expected to be 28%, as compared to 30% for fiscal 2009. The decline is primarily due to the impact of percentage depletion on lower earnings.
Net Earnings and Diluted Earnings per Share. Pre-tax earnings for the quarter of $5.5 million decreased 67% from last years pre-tax earnings of $16.6 million; while pre-tax earnings of $40.2 million for the nine month period ended December 31, 2009 decreased 19% from last years pre-tax earnings of $49.7 million. Net earnings of $4.7 million and diluted earnings per share of $0.11 for the third quarter of fiscal 2010 both declined 58%, as compared to the third quarter of fiscal 2009. Net earnings of $28.8 million for the nine month period ended December 31, 2009 decreased 17%, as compared to the nine month period ended December 31, 2008, while diluted earnings per share of $0.65 for the current nine month period decreased 18% as compared to the same nine month period of the prior fiscal year.
Gypsum Wallboard Operations. The decrease in revenues during the three and nine month periods ended December 31, 2009, as compared to the similar periods in 2008, is due primarily to the 14% and 21% decrease in sales volume, respectively. The decline in sales volume is primarily due to low demand for residential and commercial construction. Residential and commercial demand normally comprises approximately 70% of the demand for gypsum wallboard, and sharp declines in demand have reduced the consumption of gypsum wallboard by approximately 50% since its peak in 2006. In addition to the decline in sales volume for the third quarter of fiscal 2010, the average net sales price decreased 14% as compared to the third quarter of fiscal 2009. The nine month fiscal 2010 average net sales price also declined as compared to the fiscal 2009 nine month average, primarily due to the decline in average sales price over the last two fiscal quarters. Operating earnings for gypsum wallboard decreased during the quarter ended December 31, 2009 as compared to the similar quarter in 2008, but increased during the nine month period ended December 31, 2009 as compared to 2008. The decrease in operating earnings during the fiscal third quarter was primarily related to lower average net sales prices and net sales volumes, offset partially by reduced transportation costs. The increase in operating earnings for the nine month period ended December 31, 2009, as compared to the similar period in 2008, is due primarily to lower operating expenses, primarily natural gas, power and transportation, offset slightly by decreases in average net sales price and sales volume. In response to the decline in demand and industry utilization, we idled our Bernalillo wallboard facility during December 2009. Costs involved with the shut-down were not significant, and were expensed during the quarter ended December 31, 2009.
Recycled Paperboard Operations. Net revenues declined 19% and 31% during the three and nine month periods ended December 31, 2009 as compared to the similar periods in 2008, primarily due to the 16% and 18% decline in average net sales price and the 4% and 15% decline in average sales volume for the three and nine month periods, respectively. The decline in sales volume is primarily due to reduced residential and commercial construction, which has adversely impacted demand for gypsum paper, resulting in gypsum paper representing only 45% and 50% of total sales volume during the three and nine month periods ending December 31, 2009 as compared to 52% and 62% of total sales volume during the similar periods of fiscal 2009. The decrease in the proportion of the product mix represented by higher priced gypsum paper also had an adverse impact on the average selling price during the three and nine month periods ended December 31, 2009, as compared to December 31, 2008. For the three months ended December 31, 2009, operating earnings were down 20%, primarily due to the decrease in both pricing and volumes, as well as the change in sales mix. Operating expenses for the fiscal third quarter of 2010 were lower than operating expenses for the same quarter of 2009. During the fiscal third quarter, fiber costs increased, but were flat compared to the prior years third quarter, while natural gas and electricity costs were approximately 40% lower in fiscal 2010 than fiscal 2009. Operating earnings grew by 4% for the nine months ended December 31, 2009 as compared to 2008, primarily due to decreases in our primary operating expenses, namely fiber, natural gas, electricity and chemica
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Eagle Materials Inc. has a market cap of $1.02 billion; its shares were traded at around $23.19 with a P/E ratio of 30.92 and P/S ratio of 1.69. The dividend yield of Eagle Materials Inc. stocks is 1.72%. Eagle Materials Inc. had an annual average earning growth of 10.5% over the past 10 years.EXP is in the portfolios of Wallace Weitz of Weitz Wallace R & Co, Ron Baron of Baron Funds, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Bruce Kovner of Caxton Associates.
Highlight of Business Operations:
Corporate General and Administrative. Corporate general and administrative expenses declined 38% and 13% for the three and nine month periods ended December 31, 2009, respectively, as compared to the similar period in 2008. These declines were due primarily to lower incentive compensation in both the three and nine month periods, due to lower expected earnings, and improved overhead efficiency. Corporate General and Administrative Expenses also declined during the fiscal third quarter of 2010 as compared to 2009 due to the vesting of RSUs granted during August 2008, which became fully vested in August 2009.Interest Expense, Net. Net interest expense decreased 26% and 29% during the three and nine month periods ended December 31, 2009, respectively. The decrease in expense is related primarily to our repurchase of $100 million in private placement debt during February 2009, resulting in lower average borrowings during fiscal 2010, as compared to fiscal 2009. Additionally, interest rates for our revolving line of credit and unrecognized tax benefits were lower during the three and nine month periods ended December 31, 2009 as compared to the rates during the similar periods in 2008.
Income Taxes. As of December 31, 2009 the estimated tax rate for fiscal 2010 was 28%, as compared to 30% for fiscal 2009. The expected tax rate for the full fiscal year is expected to be 28%, as compared to 30% for fiscal 2009. The decline is primarily due to the impact of percentage depletion on lower earnings.
Net Earnings and Diluted Earnings per Share. Pre-tax earnings for the quarter of $5.5 million decreased 67% from last years pre-tax earnings of $16.6 million; while pre-tax earnings of $40.2 million for the nine month period ended December 31, 2009 decreased 19% from last years pre-tax earnings of $49.7 million. Net earnings of $4.7 million and diluted earnings per share of $0.11 for the third quarter of fiscal 2010 both declined 58%, as compared to the third quarter of fiscal 2009. Net earnings of $28.8 million for the nine month period ended December 31, 2009 decreased 17%, as compared to the nine month period ended December 31, 2008, while diluted earnings per share of $0.65 for the current nine month period decreased 18% as compared to the same nine month period of the prior fiscal year.
Gypsum Wallboard Operations. The decrease in revenues during the three and nine month periods ended December 31, 2009, as compared to the similar periods in 2008, is due primarily to the 14% and 21% decrease in sales volume, respectively. The decline in sales volume is primarily due to low demand for residential and commercial construction. Residential and commercial demand normally comprises approximately 70% of the demand for gypsum wallboard, and sharp declines in demand have reduced the consumption of gypsum wallboard by approximately 50% since its peak in 2006. In addition to the decline in sales volume for the third quarter of fiscal 2010, the average net sales price decreased 14% as compared to the third quarter of fiscal 2009. The nine month fiscal 2010 average net sales price also declined as compared to the fiscal 2009 nine month average, primarily due to the decline in average sales price over the last two fiscal quarters. Operating earnings for gypsum wallboard decreased during the quarter ended December 31, 2009 as compared to the similar quarter in 2008, but increased during the nine month period ended December 31, 2009 as compared to 2008. The decrease in operating earnings during the fiscal third quarter was primarily related to lower average net sales prices and net sales volumes, offset partially by reduced transportation costs. The increase in operating earnings for the nine month period ended December 31, 2009, as compared to the similar period in 2008, is due primarily to lower operating expenses, primarily natural gas, power and transportation, offset slightly by decreases in average net sales price and sales volume. In response to the decline in demand and industry utilization, we idled our Bernalillo wallboard facility during December 2009. Costs involved with the shut-down were not significant, and were expensed during the quarter ended December 31, 2009.
Recycled Paperboard Operations. Net revenues declined 19% and 31% during the three and nine month periods ended December 31, 2009 as compared to the similar periods in 2008, primarily due to the 16% and 18% decline in average net sales price and the 4% and 15% decline in average sales volume for the three and nine month periods, respectively. The decline in sales volume is primarily due to reduced residential and commercial construction, which has adversely impacted demand for gypsum paper, resulting in gypsum paper representing only 45% and 50% of total sales volume during the three and nine month periods ending December 31, 2009 as compared to 52% and 62% of total sales volume during the similar periods of fiscal 2009. The decrease in the proportion of the product mix represented by higher priced gypsum paper also had an adverse impact on the average selling price during the three and nine month periods ended December 31, 2009, as compared to December 31, 2008. For the three months ended December 31, 2009, operating earnings were down 20%, primarily due to the decrease in both pricing and volumes, as well as the change in sales mix. Operating expenses for the fiscal third quarter of 2010 were lower than operating expenses for the same quarter of 2009. During the fiscal third quarter, fiber costs increased, but were flat compared to the prior years third quarter, while natural gas and electricity costs were approximately 40% lower in fiscal 2010 than fiscal 2009. Operating earnings grew by 4% for the nine months ended December 31, 2009 as compared to 2008, primarily due to decreases in our primary operating expenses, namely fiber, natural gas, electricity and chemica
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