Continental Building Products (CBPX) 8-K Continental Building Products Reports Fourth Quarter

Exhibit 99.1

CONTINENTAL BUILDING PRODUCTS REPORTS FOURTH QUARTER

AND FULL YEAR 2013 RESULTS

- Wallboard Mill Net Price Increases 18% for 2013 -

- Wallboard Volume Rises 14% to 2.2 BSF in 2013 -

- Company Completes Initial Public Offering In February 2014 -

Reston, Virginia, March 27, 2014.Continental Building Products, Inc. (NYSE: CBPX), a leading manufacturer of wallboard and gypsum-based products, announced today results for the fourth quarter and fiscal year ended December 31, 2013.

Highlights of Fourth Quarter 2013 (Successor) as Compared to Fourth Quarter 2012 (Predecessor)

• Net sales increase 30% to $114.4 million

• Operating income of $15.9 million, up from $2.8 million

• Adjusted EBITDA¹ more than doubles to $29.8 million

• Net income increases 125% to $6.7 million

• Wallboard volume grows 18% to 632 million square feet (MMSF)

• Wallboard mill net price increases 14% to $143.04 per thousand square feet (MSF)

Highlights of Full Year 2013 as compared to Full Year 2012 on a pro forma basis²

• Net sales increase 29% to $402.3 million

• Operating income improves to $29.8 million, up from an operating loss of $45.4 million

• Adjusted EBITDA increases 152% to $102.6 million

• Net income increases to $4.9 million compared to a net loss of $68.7 million

“The positive momentum in our business continued into the year end, resulting in a net sales increase of 30% during the fourth quarter,” stated Ike Preston, Continental’s CEO. “As we progressed though the year, rising housing starts provided favorable residential construction activity, our repair and remodel end markets improved, and commercial orders started to show early signs of a recovery. The improvement in our performance reflects the improved demand environment, but is even more reflective of our market leading positions that we have forged in attractive regions throughout the Eastern United States.”

Mr. Preston continued, “The significant investments we have made to modernize our capacity allowed us to more than double our adjusted EBITDA in the fourth quarter 2013. We believe we are well positioned to continue growing our business as we leverage our existing capacity and low cost production capabilities to support additional profit expansion and cash generation over time.”

¹  See the financial schedules at the end of this press release for a reconciliation of adjusted EBITDA, a non-GAAP financial measure, to operating income.

²  Pro forma results are presented as a result of the acquisition that was completed on August 30, 2013. See the financial schedules at the end of this press release and the discussion below for more information regarding the acquisition and the pro forma adjustments.

Fourth Quarter 2013 (Successor) Vs Fourth Quarter 2012 (Predecessor)

Net sales for the fourth quarter of 2013 totaled $114.4 million, up 30.1%, compared to $88.0 million in the fourth quarter of 2012. The increase in sales was primarily driven by a 17.7% increase in wallboard volume to 632 MMSF compared to 537 MMSF in the prior year quarter, and a 13.8% increase in the average wallboard mill net price³ to $143.04 per MSF from $125.71 in the prior year quarter. The increase in wallboard volume was primarily driven by improved demand from residential, nonresidential and repair and remodel end markets. The improvement in average wallboard mill net price was a result of better demand and increased effective capacity utilization rates at our plants.

Gross profit was $24.6 million, up 114.2% compared to $11.5 million in the prior year quarter. The gross margin of 21.5% increased from 13.1% in the prior year quarter, primarily as a result of higher average wallboard mill net prices and the Company’s focus on cost reduction and efficiencies.

Selling and administrative (SG&A) expense was $8.8 million, up less than 1% from $8.7 million in the prior year quarter. Services performed by Lafarge North America, which were allocated costs in the prior year, are now performed by us directly or through a transition services agreement with Lafarge North America. In the current quarter, all of these costs were captured in direct SG&A.

Operating income was $15.9 million, up $13.1 million from $2.8 million in the prior year quarter. Net income during the quarter was $6.7 million, or $0.21 per diluted share, up 125% from $3.0 million in the prior year quarter.

Interest expense was $8.2 million, up $8.1 million from $0.1 million in the prior year quarter, reflecting an increase in long-term debt.

Adjusted EBITDA totaled $29.8 million, up $15.9 million, or 109%, compared to $14.3 million in the prior year quarter.

At the end of the quarter on December 31, 2013, the Company had cash of $11.8 million and total debt outstanding of $564.1 million. On February 10, 2014, the Company used proceeds from its initial public offering to reduce debt through the repayment of its second lien term loan of $155.0 million.

Jay Bachmann, Continental’s Chief Financial Officer commented, “We achieved operating leverage on Adjusted EBITDA of nearly 60% in the fourth quarter and nearly 70% for the full year, reflecting higher wallboard sales and dramatic improvements to our cost structure. Our fourth quarter gross margin increased 840 basis points to 21.5% and SG&A as a percent of sales improved 230 basis points to 7.6% due to the efficiencies we have extracted from our low cost plant operations as market conditions have continued to improve. Our successful investments in our capacity in previous years have allowed us to keep capital expenditures down and maximize free cash flow. As we move forward, we remain committed to maintaining strict capital discipline and reducing our debt leverage.”

³  Mill net sales price represents average selling price per thousand square feet net of freight and delivery costs.

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Full Year 2013 Vs Full Year 2012 on a Pro Forma Basis

Net sales for the full year of 2013 totaled $402.3 million, up 29.2% compared to $311.4 million for the full year of 2012. Wallboard volumes increased 13.6% to 2.2 billion square feet (BSF) compared 1.9 BSF in the prior year. The average wallboard mill net price increased 17.7% to $145.92 per MSF from $124.02 in the prior year.

Gross profit was $69.5 million, up from a $10.7 million loss in the prior year.

Selling and administrative (SG&A) expense was $39.8 million, up 14.4% from $34.7 million in the prior year. Acquisition closing costs of $3.3 million contributed to the increase versus last year.

Operating income was $29.8 million, up from an operating loss of $45.4 million in the prior year. Net income was $4.9 million, up from a net loss of $68.7 million in the prior year.

Interest expense was $23.4 million, up $0.2 million from $23.2 million in the prior year.

Adjusted EBITDA totaled $102.6 million, up $61.9 million, or 152.6% compared to $40.7 million in the prior year.

2014 Outlook

For the full year 2014, the Company expects net sales and adjusted EBITDA to increase compared to full year 2013, largely due to improving demand and pricing. The Company believes that economic fundamentals remain strong for rising construction activity, although during first quarter 2014, wallboard volumes have been adversely affected by weather conditions in the eastern United States.

About Continental Building Products

Continental Building Products is a leading North American manufacturer of gypsum wallboard, joint compound and complementary finishing products. The Company is headquartered in Reston, Virginia with operations serving the residential, commercial and repair and remodel construction markets primarily in the eastern United States and eastern Canada. For additional information, visit www.continental-bp.com.

On August 30, 2013, an affiliate of our controlling stockholder acquired substantially all of the assets of the gypsum business that was part of Lafarge North America Inc. (Lafarge) for a purchase price of approximately $700 million. The financial statements presented for periods prior to August 30, 2013, or the Predecessor statements, are derived from Lafarge’s consolidated financial statements and accounting records of its gypsum division. Continental, which was formed on July 26, 2013, had no operating results prior to its acquisition of the Lafarge gypsum division. The financial statements after August 30, 2013, or the Successor statements, reflect the net assets acquired at fair value and also include additional indebtedness arising from the acquisition.

Full year 2013 operating figures are presented on a pro forma basis to reflect the acquisition that was completed on August 30, 2013. The unaudited pro forma combined statements of operations give effect to the pro forma transactions as though the pro forma transactions had occurred as of January 1, 2012.

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Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on historical information available at the time the statements are made and are based on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for fiscal year 2013 expected to be filed on March 27, 2014, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.

Contact Information:

Investor Relations:

703 480-3980

Investorrelations@continental-bp.com

4

Continental Building Products, Inc.

Consolidated (Successor) / Combined (Predecessor) Statements of Operations

(dollars in thousands except per share data)

(Unaudited)

	Successor Three Months Ended December 31, 2013			Predecessor Three Months Ended December 31, 2012
Net Sales	$	114,436		$	87,961
Costs, expenses and other income:
Cost of goods sold		89,798			76,461
Selling and administrative:
Direct		8,753			7,116
Allocated from Lafarge		—			1,561
Total selling and administrative		8,753			8,677
Total costs and operating expenses		98,551			85,138
Operating income		15,885			2,823
Other (expense) income, net		(106	)		(72	)
Interest expense, net		(8,178	)		(62	)
Income (loss) before earnings (losses) on equity method investment and income tax		7,601			2,689
Earnings (losses) from equity method investment		—			18
Income (loss) before income tax benefit		7,601			2,707
Income tax (expense) benefit		(856	)		287
Net income (loss)	$	6,745		$	2,994
Net income per share, basic and diluted
Basic	$	0.21
Diluted	$	0.21
Weighted average shares outstanding
Basic		32,304
Diluted		32,304

5

Continental Building Products, Inc.

Consolidated (Successor) / Combined (Predecessor) Statements of Operations

(dollars in thousands except per share data)

(Unaudited)

	Successor			Predecessor
	July 26 to December 31, 2013			January 1 to August 30, 2013			Year Ended December 31, 2012
Net Sales	$	150,066		$	252,248		$	311,410
Costs, expenses and other income:
Cost of goods sold		121,335			195,338			289,936
Selling and administrative:
Direct		14,953			19,338			27,194
Allocated from Lafarge		—			4,945			7,037
Total selling and administrative		14,953			24,283			34,231
Total costs and operating expenses		136,288			219,621			324,167
Operating income		13,778			32,627			(12,757	)
Other (expense) income, net		(21	)		(191	)		(87	)
Interest expense, net		(10,542	)		(91	)		(212	)
Income (loss) before earnings (losses) on equity method investment and income tax		3,215			32,345			(13,056	)
Earnings (losses) from equity method investment		—			(30	)		(138	)
Income (loss) before income tax benefit		3,215			32,315			(13,194	)
Income tax (expense) benefit		(1,110	)		(130	)		352
Net income (loss)	$	2,105		$	32,185		$	(12,842	)
Net income per share, basic and diluted
Basic	$	0.07
Diluted	$	0.07
Weighted average shares outstanding
Basic		32,304
Diluted		32,304

6

Continental Building Products, Inc.

Pro Forma Combined Statements of Operations

(dollars in thousands)

(Unaudited)

	Year Ended December 31, 2013			Year Ended December 31, 2012
Net Sales	$	402,314		$	311,410
Costs, expenses and other income:
Cost of goods sold		332,773			322,068
Selling and administrative:
Direct		34,806			27,709
Allocated from Lafarge		4,945			7,037
Total selling and administrative		39,751			34,746
Total costs and operating expenses		372,524			356,814
Operating income		29,790			(45,404	)
Other (expense) income, net		(212	)		(448	)
Interest expense, net		(23,443	)		(23,151	)
Income (loss) before earnings (losses) on equity method investment and income tax		6,135			(69,003	)
Earnings (losses) from equity method investment		—			—
Income (loss) before income tax benefit		6,135			(69,003	)
Income tax (expense) benefit		(1,240	)		352
Net income (loss)	$	4,895		$	(68,651	)

See the accompanying notes to the unaudited pro forma statements of operations.

7

Continental Building Products, Inc.

Pro Forma Combined Statement of Operations

Full Year Ended December 31, 2013

(Unaudited)

(in thousands)	Predecessor			Successor
	January 1 to			July 26 to						December 31,
	August 30,			December 31,			Pro Forma			2013
	2013			2013			Adjustments			Pro forma
Net Sales	$	252,248		$	150,066		$	—		$	402,314
Costs, expenses and other income:
Cost of goods sold		195,338			121,335			16,100	(a)		332,773
Selling and administrative:
Direct		19,338			14,953			515	(b)		34,806
Allocated from Lafarge		4,945			—			—			4,945
Total selling and administrative		24,283			14,953			515			39,751
Total costs and operating expenses		219,621			136,288			16,615			372,524
Operating income		32,627			13,778			(16,615	)		29,790
Other (expense) income, net		(191	)		(21	)		—			(212	)
Interest expense, net		(91	)		(10,542	)		(12,810	) (c)		(23,443	)
Income (loss) before earnings (losses) on equity method investment and income tax		32,345			3,215			(29,425	)		6,135
Earnings (losses) from equity method investment		(30	)		—			30	(d)		—
Income (loss) before income tax benefit		32,315			3,215			(29,395	)		6,135
Income tax (expense) benefit		(130	)		(1,110	)		—	(e)		(1,240	)
Net income (loss)	$	32,185		$	2,105		$	(29,395	)	$	4,895

See the accompanying notes to the unaudited pro forma statements of operations.

8

Continental Building Products, Inc.

Pro Forma Combined Statement of Operations

Full Year Ended December 31, 2012

(Unaudited)

(in thousands)	Predecessor
	Year Ended						December 31,
	December 31,			Pro Forma			2012
	2012			Adjustments			Pro forma
Net Sales	$	311,410		$	—		$	311,410
Costs, expenses and other income:
Cost of goods sold		289,936			32,132	(a)		322,068
Selling and administrative:
Direct		27,194			515	(b)		27,709
Allocated from Lafarge		7,037			—			7,037
Total selling and administrative		34,231			515			34,746
Total costs and operating expenses		324,167			32,647			356,814
Operating income		(12,757	)		(32,647	)		(45,404	)
Other (expense) income, net		(87	)		(361	)		(448	)
Interest expense, net		(212	)		(22,939	) (c)		(23,151	)
Income (loss) before earnings (losses) on equity method investment and income tax		(13,056	)		(55,947	)		(69,003	)
Earnings (losses) from equity method investment		(138	)		138	(d)		—
Income (loss) before income tax benefit		(13,194	)		(55,809	)		(69,003	)
Income tax (expense) benefit		352			—	(e)		352
Net income (loss)	$	(12,842	)	$	(55,809	)	$	(68,651	)

See the accompanying notes to the unaudited pro forma statements of operations.

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Notes to the unaudited pro forma statements of operations:

(a) Purchase Accounting

The unaudited pro forma combined statements of operations reflect an adjustment for the increase in depreciation and amortization expenses related to the fair value adjustments to tangible and long-lived intangible assets with definite lives assuming the Acquisition occurred at January 1, 2012. The incremental pro forma amortization expense for long-lived intangible assets with definite lives was $10.4 and $20.4 million for the full year 2013 and 2012, respectively. The incremental pro forma depreciation expense for long-lived tangible assets was $7.2 and $10.2 million for the full year 2013 and 2012, respectively. We are in the process of finalizing third-party valuations of certain acquired assets; thus, the measurement of assets giving rise to these pro forma adjustments is subject to change.

The unaudited combined statements of operations also reflect an adjustment to increase cost of sales by $1.5 million for the 2012, with a corresponding reduction to cost of sales for 2013. This reflects the turn through cost of sales of inventory that was stepped up to fair value assuming that the transaction occurred on January 1, 2012.

(b) Equity Awards

In conjunction with our initial public offering that we completed in February 2014, we granted approximately 142,000 stock options and 75,000 restricted shares to employees. The fair value of the restricted shares is based on the share price on the date of grant, which was the offering price of $14.00 per share. The unaudited combined statements of operations reflect compensation expense for this award assuming the awards were granted on January 1, 2012. Pro forma compensation expense of $0.5 million has been recognized in selling and administrative expense for 2013 and 2012 based on a vesting period of four years.

(c) Debt financing

In connection with the Acquisition, we entered into a $320 million First Lien Credit Agreement that also included a revolving credit facility of up to $50 million U.S. dollars, and a $120 million Second Lien Credit Agreement. At the closing of the Acquisition, US $28.5 million was borrowed under the Revolver. On December 2, 2013, we entered into amendments to the First Lien Credit Agreement and the Second Lien Credit Agreement pursuant to which we issued additional term loans in an aggregate principal amount of $95 million under the First Lien Credit Agreement and $35 million under the Second Lien Credit Agreement with the proceeds distributed as a return of capital to our owner, Lone Star. On February 10, we used the proceeds from our initial public offering to completely repay the $155 million due under the Second Lien Credit Agreement. For our pro forma statements of operations, all three of these events are assumed to have happened on January 1, 2012 and result in the unaudited pro forma combined statements of operations reflecting an adjustment for interest expense and the amortization of deferred financing costs on the $415 million First Lien term loans and approximately $28.5 million Revolver borrowings. Incremental pro forma interest expense was $12.8 and $22.9 for 2013 and 2012, respectively.

The termination fee of $2.0 million for the asset advisory agreement with an affiliate of Lone Star and the $3.1 million for the 2% call premium on early repayment of our Second Lien Credit Agreement were not included in the pro forma income statement as each represents a non-recurring expense.

10

(d) Interest in Seven Hills

As of the Acquisition and through December 31, 2013, the equity interest in Seven Hills remained with Lafarge. Under the terms of the Asset Purchase Agreement entered into in connection with the Acquisition, Lafarge is passing through all of the benefits and burdens of the Joint Venture Agreement and the other operative agreements to us, and our supply of paper from the joint venture has continued after the closing of the Acquisition under the same terms and conditions as prior to the Acquisition. We elected to measure this financial interest in Seven Hills at fair value and the pro forma combined statements of operations eliminate the equity earnings of this investment.

(e) Income taxes

Due to our limited history and the history of pre-tax losses generated by the Predecessor, deferred tax benefits were not recorded on the pro forma adjustments.

11

Continental Building Products, Inc.

Consolidated (Successor) / Combined (Predecessor) Balance Sheets

(dollars in thousands except share data)

(Unaudited)

	Successor			Predecessor
	December 31,			December 31,
	2013			2012
Assets
Cash	$	11,822		$	—
Receivables, net		32,328			23,350
Inventories		28,120			29,206
Prepaid and other current assets		4,523			1,026
Deferred taxes, current		2,137			—
Total current assets		78,930			53,582
Property, plant and equipment, net		383,625			386,270
Customer relationships and other intangibles, net		126,126			3,829
Goodwill		119,945			94,360
Equity method investment		—			18,276
Financial interest in Seven Hills		13,000			—
Debt issuance costs		17,800			—
Deferred taxes, non-current		950			—
Other assets		—			429
Total Assets	$	740,376		$	556,746
Liabilities and Equity
Accounts payable	$	28,126		$	30,168
Accrued and other liabilities		11,325			7,361
Notes payable, current portion		4,150			—
Total current liabilities		43,601			37,529
Deferred Taxes		—			6,145
Capital lease obligations		—			2,839
Notes payable, non-current portion		559,924			—
Total liabilities		603,525			46,513
Equity
Common stock		32			—
Additional paid-in capital		134,968			—
Accumulated other comprehensive income (loss)		(254	)		(5,560	)
Accumulated earnings (deficit)		2,105			—
Accumulated net contributions from parent		—			515,793
Total equity		136,851			510,233
Total liabilities and equity	$	740,376		$	556,746

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Continental Building Products, Inc.

Consolidated (Successor) / Combined (Predecessor) Statements of Cash Flows

(dollars in thousands)

(Unaudited)

	Successor			Predecessor
	July 26 to			January 1 to
	December 31,			August 30,			December 31,
	2013			2013			2012
Cash flows from operating activities:
Net income (loss)	$	2,105		$	32,185		$	(12,842	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		18,529			16,886			36,331
Amortization of debt issuance costs and debt discount		808			—			—
(Gain) loss on disposal of property, plant and equipment		199			1,115			87
Loss from equity method investment		—			30			138
Deferred taxes		(3,087	)		182			190
Change in assets and liabilities:
Receivables		(451	)		(8,655	)		(12,338	)
Inventories		8,268			(5,827	)		(154	)
Prepaid expenses and other current assets		(2,509	)		(1,783	)		(133	)
Other long-term assets		—			429			—
Accounts payable		2,777			(5,738	)		5,396
Accrued and other liabilities		10,718			(3,996	)		(109	)
Other long term liabilities		—			(126	)		(168	)
Net cash provided by (used in) operating activities		37,357			24,702			16,398
Cash flows from investing activities:
Capital expenditures		(2,798	)		(2,506	)		(5,205	)
Acquisition of predecessor		(703,141	)		—			—
Software purchased or developed		—			—			(27	)
Proceeds from the sale of property, plant, and equipment		—			—			21
Capital contributions to equity method investment		—			(66	)		(84	)
Distributions from equity method investment		—			552			855
Net cash used in investing activities		(705,939	)		(2,020	)		(4,440	)
Cash flows from financing activities:
Capital contribution (distribution) from (to) Lafarge NA, net		—			(22,682	)		(11,958	)
Capital contribution from Lone Star Funds		265,000			—			—
Proceeds from issuance of long-term debt, net of original issue discount		564,965			—			—
Proceeds from revolving credit facility, net		—			—			—
Capital distribution to Lone Star Funds		(130,000	)		—			—
Principal payments on long-term debt		(1,038	)		—			—
Debt issuance costs		(18,461	)		—			—
Net cash provided by (used in) financing activities		680,466			(22,682	)		(11,958	)
Effect of foreign exchange rates on cash and cash equivalents		(62	)		—			—
Net change in cash and cash equivalents		11,822			—			—
Cash, beginning of period		—			—			—
Cash, end of period	$	11,822		$	—		$	—

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Reconciliation of GAAP Measure to Non-GAAP Measure

EBITDA and Adjusted EBITDA have been presented in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. We have presented EBITDA and Adjusted EBITDA as supplemental performance measures because we believe that they facilitate a comparative assessment of our operating performance relative to our performance based on our results under GAAP while isolating the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that we believe do not reflect our operations and underlying operational performance. Management also believes that EBITDA and Adjusted EBITDA are useful to investors because they present a better reflection of our performance as an independent company following the acquisition and allows investors to view our business through the eyes of management and the Board of Directors, facilitating comparison of results across historical periods.

EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate EBITDA and Adjusted EBITDA in the same manner as we do. EBITDA and Adjusted EBITDA are not measurements of our financial performance under GAAP and should not be considered in isolation or as alternatives to operating income determined in accordance with GAAP or any other financial statement data presented as indicators of financial performance or liquidity, each as calculated and presented in accordance with GAAP.

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The following is a reconciliation of operating income to EBITDA and adjusted EBITDA:

Continental Building Products, Inc.

Reconciliation of Non-GAAP Measure to GAAP Measure

(dollars in thousands)

(Unaudited)

			Successor		Predecessor
			Three Months Ended December 31, 2013		Three Months Ended December 31, 2012
Operating Income (loss) - GAAP Measure			$	15,885		2,823
Adjustments:
Depreciation and amortization				13,935		6,403
EBITDA - Non-GAAP Measure				29,820		9,226
Pension and post-retiree costs retained by Lafarge	(a	)		—		3,985
Master Brand Agreement	(b	)		—		1,062
Adjusted EBITDA - Non-GAAP Measure			$	29,820	$	14,273

		Successor		Predecessor					Pro Forma
		July 26 to December 31, 2013		January 1 to August 30, 2013		Year Ended December 31, 2012			Year Ended December 31, 2013		Year Ended December 31, 2012
Operating Income		$	13,778	$	32,627	$	(12,757	)	$	29,790	$	(45,404	)
Adjustments:
Depreciation and amortization			18,529		16,886		36,331			53,015		66,963
EBITDA - Non-GAAP Measure			32,307		49,513		23,574			82,805		21,559
Pension and post-retiree costs retained by Lafarge	(a)		—		7,636		11,925			7,636		11,925
Master Brand Agreement	(b)		—		3,004		3,602			3,004		3,602
Special bonus	(c)		—		—		904			—		904
Spare parts write-off	(d)		—		—		1,205			—		1,205
Newark lease termination costs	(e)		—		2,556		—			2,556		—
Co-generation lease termination costs	(f)		2,075		1,195		—			3,270		—
Acquisition closing costs	(g)		3,296		—		—			3,296		—
Inventory step-up impacting margin	(h)		1,500		—		—			—		1,500
Adjusted EBITDA - Non-GAAP Measure		$	39,178	$	63,904	$	41,210		$	102,567	$	40,695

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(a) Lafarge retained the pension and post-retiree liabilities related to its gypsum division and no new plans have been established by Continental. The adjustment represents pension and post-retiree benefit costs allocated to the Predecessor.

(b) Adjusts for the amounts paid to Lafarge under the master brand agreements by Lafarge that were discontinued after the Acquisition.

(c) Adjusts for special payouts paid by Lafarge related to a retention program due to the process of disposing of its gypsum business.

(d) Adjusts for the write-off of spare parts related to the closure of the Newark, New Jersey gypsum wallboard plant.

(e) Adjusts for the payment of a lease termination fee to the Port of Newark related the Newark, New Jersey plant closure.

(f) Adjusts for the payment of a lease termination fee to discontinue the use of the co-generation power plant.

(g) Adjusts for the transaction costs associated with the Acquisition.

(h) Adjusts for step-up to fair value of inventory that increased cost of sales for one month after the Acquisition.

Interim Volumes and Mill Net Prices

(unaudited)

	Predecessor						Successor
	Three Months Ended March 31, 2013		Three Months Ended June 30, 2013		July 1, 2013 to August 30, 2013		July 26, 2013 to September 30, 2013		Three Months Ended December 31, 2013
Volumes (million square feet)		438		523		373		195		632
Mill net Price per MSF	$	146.97	$	149.56	$	145.43	$	144.06	$	143.04

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