Eagle Materials (EXP) 8-K Eagle Materials Inc. Reports

Exhibit 99.1

	Contact at 214/432-2000
	Steven R. Rowley
	President & CEO
	D. Craig Kesler
	Executive Vice President & CFO
	Robert S. Stewart
	Executive Vice President

News For Immediate Release

EAGLE MATERIALS INC. REPORTS

FIRST QUARTER EARNINGS

DALLAS, TX (July 28, 2011) – Eagle Materials Inc. (NYSE: EXP) today reported financial results for the first quarter of fiscal 2012 ended June 30, 2011. Notable items for the quarter include:

• Revenues of $119.8 million

• Earnings per diluted share of $0.07

• Net earnings of $3.1 million

Industry demand for building materials and construction products remains weak and we continue to “right-size” our operations to respond to these lower levels of construction activity. Revenues decreased from the prior year primarily due to lower sales volumes across all of our major businesses.

Cement, Concrete and Aggregates

Cement revenues for the first quarter, including joint venture and intersegment revenues, totaled $60.1 million, 4% less than the same quarter last year. Operating earnings from Cement for the first quarter were $8.8 million, a 36% decline from the same quarter a year ago. Lower cement sales volumes and higher maintenance costs associated with scheduled maintenance at our Texas cement facility were the primary drivers of the quarterly earnings decline. Cement sales volumes for the quarter were 674,000 tons, 4% lower than the same quarter a year ago. The average net sales price for this quarter was $81.25 per ton, about flat with the same quarter last year.

Concrete and Aggregates reported an operating loss of $0.2 million for the first quarter, down from the $0.3 million operating profit for the same quarter a year ago, primarily due to lower aggregates sales volumes and net sales prices slightly offset by improved concrete volumes.

Revenues from Concrete and Aggregates were $11.8 million for the quarter, 5% greater than the same quarter a year ago. Concrete sales volume increased 16% from the same quarter a year ago to 136,000 cubic yards. Concrete average net sales price for the quarter of $61.04 per cubic yard was 5% less than the same quarter a year ago. Aggregates sales volumes of 612,000

tons for this quarter were 2% less than the sales volume for the same quarter a year ago. Aggregates average net sales price for the quarter was $5.88, down 3% compared to last year’s first quarter.

Gypsum Wallboard and Paperboard

Gypsum Wallboard and Paperboard’s first quarter operating earnings of $4.3 million were down 53% over the same quarter last year. Lower Gypsum Wallboard net sales prices and sales volumes were the primary driver of the quarterly earnings decline.

Gypsum Wallboard and Paperboard revenues for the first quarter totaled $70.3 million, a 9% decrease from the same quarter a year ago. The revenue decline reflects lower Gypsum Wallboard and Paperboard sales volumes and lower average Gypsum Wallboard net sales prices slightly offset by higher Paperboard net sales prices. The average Gypsum Wallboard net sales price this quarter was $90.03 per MSF, 8% less than the same quarter a year ago. Gypsum Wallboard sales volume for the quarter of 412 million square feet (MMSF) represents a 9% decline from the same quarter last year. The average Paperboard net sales price this quarter was $505.61 per ton, 5% higher than the same quarter a year ago. Paperboard sales volume for the quarter was 57,000 tons, 3% lower than the same quarter a year ago.

Details of Financial Results

We conduct one of our cement plant operations through a 50/50 joint venture, Texas Lehigh Cement Company LP (the “Joint Venture”). We utilize the equity method of accounting for our 50% interest in the Joint Venture. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture’s revenues and operating earnings, which is consistent with the way management organizes the segments within the Company for making operating decisions and assessing performance.

In addition, for segment reporting purposes, we report intersegment revenues as a part of a segment’s total revenues. Intersegment sales are eliminated on the income statement. Refer to Attachment 3 for a reconciliation of the amounts referred to above.

About Eagle Materials Inc.

Eagle Materials Inc. manufactures and distributes Cement, Gypsum Wallboard, Recycled Paperboard, Concrete and Aggregates from 25 facilities across the US. The Company is headquartered in Dallas, Texas.

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Eagle’s senior management will conduct a conference call to discuss the financial results, forward-looking information and other matters at 2:00 p.m. Eastern Standard Time (1:00 p.m. Central Standard Time) on Thursday, July 28, 2011. The conference call will be webcast simultaneously on the Eagle Web sitehttp://www.eaglematerials.com. A replay of the webcast and the presentation will be archived on that site for one year. For more information, contact Eagle at (214) 432-2000.

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Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimates or expectations. These statements are not historical facts or guarantees of future performance but instead represent only the Company’s belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors many of which are outside the Company’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. The principal risks and uncertainties that may affect the Company’s actual performance include the following: the cyclical and seasonal nature of the Company’s business; public infrastructure expenditures; adverse weather conditions; availability of raw materials; changes in energy costs including, without limitation, natural gas and oil; changes in the cost and availability of transportation; unexpected operational difficulties; inability to timely execute announced capacity expansions; governmental regulation and changes in governmental and public policy (including, without limitation, climate change regulation); changes in economic conditions specific to any one or more of the Company’s markets; competition; announced increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction; general economic conditions; and interest rates. For example, increases in interest rates, decreases in demand for construction materials or increases in the cost of energy (including, without limitation, natural gas and oil) could affect the revenues and operating earnings of our operations. In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company’s result of operations. These and other factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2011. This report is filed with the Securities and Exchange Commission. All forward-looking statements made herein are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. The Company undertakes no duty to update any forward-looking statement to reflect future events or changes in the Company’s expectations.

Steven R. Rowley

President and Chief Executive Officer

D. Craig Kesler

Executive Vice President and Chief Financial Officer

Robert S. Stewart

Executive Vice President, Strategy, Corporate Development and Communications

Attachment 1 Summary of Consolidated Earnings

Attachment 2 Revenues and Earnings by Lines of Business (Quarter)

Attachment 3 Sales Volume, Net Sales Prices and Intersegment and Cement Revenues

Attachment 4 Consolidated Balance Sheets

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Eagle Materials Inc.

Attachment 1

Eagle Materials Inc.

Statement of Consolidated Earnings

(dollars in thousands, except per share data)

(unaudited)

	Quarter Ended June 30,
	2011			2010
Revenues	$	119,807		$	130,794
Cost of Goods Sold		112,434			114,363
Gross Profit		7,373			16,431
Equity in Earnings of Unconsolidated JV		5,448			6,512
Other Operating (Expense) Income		(79	)		717
Operating Earnings		12,742			23,660
Corporate General and Administrative Expense		(4,118	)		(3,703	)
Earnings before Interest and Income Taxes		8,624			19,957
Interest Expense, Net		(4,585	)		(5,290	)
Earnings before Income Taxes		4,039			14,667
Income Tax Expense		(982	)		(4,140	)
Net Earnings	$	3,057		$	10,527
EARNINGS PER SHARE
Basic	$	0.07		$	0.24
Diluted	$	0.07		$	0.24
AVERAGE SHARES OUTSTANDING
Basic		44,180,039			43,832,372
Diluted		44,709,262			44,222,884

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Eagle Materials Inc.

Attachment 2

Eagle Materials Inc.

Revenues and Earnings by Lines of Business

(dollars in thousands)

(unaudited)

	Quarter Ended June 30,
	2011			2010
Revenues*
Gypsum Wallboard and Paperboard:
Gypsum Wallboard	$	51,342		$	58,200
Gypsum Paperboard		18,994			18,761
		70,336			76,961
Cement (Wholly Owned)		37,711			42,630
Concrete and Aggregates		11,760			11,203
Total	$	119,807		$	130,794
Operating Earnings
Gypsum Wallboard and Paperboard:
Gypsum Wallboard	$	1,238		$	5,201
Gypsum Paperboard		3,030			3,794
		4,268			8,995
Cement:
Wholly Owned		3,340			7,121
Joint Venture		5,448			6,512
		8,788			13,633
Concrete and Aggregates		(235	)		315
Other, net		(79	)		717
Total Operating Earnings		12,742			23,660

* Net of Intersegment and Joint Venture Revenues listed on Attachment 3.

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Eagle Materials Inc.

Attachment 3

Eagle Materials Inc.

Sales Volume, Net Sales Prices and Intersegment and Cement Revenues

(unaudited)

	Sales Volume
	Quarter Ended June 30,
	2011		2010		Change
Gypsum Wallboard (MMSF’s)		412		454		-9	%
Paperboard (M Tons):
Internal		17		19		-11	%
External		40		40		0	%
		57		59		-3	%
Cement (M Tons):
Wholly Owned		449		498		-10	%
Joint Venture		225		204		+10	%
		674		702		-4	%
Concrete (M Cubic Yards)		136		117		+16	%
Aggregates (M Tons)		612		627		-2	%

	Average Net Sales Price *
	Quarter Ended June 30,
	2011		2010		Change
Gypsum Wallboard (MSF)	$	90.03	$	98.15		-8	%
Paperboard (Ton)	$	505.61	$	481.47		+5	%
Cement (Ton)	$	81.25	$	81.39		0	%
Concrete (Cubic Yard)	$	61.04	$	63.99		-5	%
Aggregates (Ton)	$	5.88	$	6.05		-3	%

* Net of freight and delivery costs billed to customers.

	Intersegment and  Cement Revenues ($ in thousands)
	Quarter Ended June 30,
	2011		2010
Intersegment Revenues:
Cement	$	1,039	$	992
Paperboard		9,682		9,963
Concrete and Aggregates		140		120
	$	10,861	$	11,075
Cement Revenues:
Wholly Owned	$	37,711	$	42,630
Joint Venture		21,394		18,840
	$	59,105	$	61,470

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Eagle Materials Inc.

Attachment 4

Eagle Materials Inc.

Consolidated Balance Sheets

(dollars in thousands)

(unaudited)

	June 30,						March 31,
	2011			2010			2011*
ASSETS
Current Assets –
Cash and Cash Equivalents	$	3,478		$	2,997		$	1,874
Accounts and Notes Receivable, net		54,192			53,574			43,855
Inventories		114,124			106,505			115,237
Federal Income Tax Receivable		5,374			—			9,088
Prepaid and Other Assets		3,836			3,508			4,572
Total Current Assets		181,004			166,584			174,626
Property, Plant and Equipment –		1,119,346			1,103,616			1,112,058
Less: Accumulated Depreciation		(524,143	)		(480,198	)		(512,228	)
Property, Plant and Equipment, net		595,203			623,418			599,830
Investments in Joint Venture		34,109			33,190			33,661
Notes Receivable		5,139			10,201			5,326
Goodwill and Intangibles		151,380			152,016			151,539
Other Assets		18,376			23,480			17,828
	$	985,211		$	1,008,889		$	982,810
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities –
Accounts Payable	$	31,472		$	27,381		$	30,339
Federal Income Taxes Payable		—			6,982			—
Accrued Liabilities		33,388			35,270			40,011
Current Portion of Bank Credit Facility		—			10,000			—
Total Current Liabilities		64,860			79,633			70,350
Long-term Liabilities		37,905			68,726			37,807
Bank Credit Facility		11,000			—			2,000
Senior Notes		285,000			285,000			285,000
Deferred Income Taxes		127,689			122,424			128,089
Stockholders’ Equity –
Preferred Stock, Par Value $0.01; Authorized 5,000,000 Shares; None Issued		—			—			—
Common Stock, Par Value $0.01; Authorized 100,000,000 Shares; Issued and Outstanding 44,906,232; 44,158,078 and 44,447,428 Shares, respectively.		449			442			444
Capital in Excess of Par Value		25,439			16,352			24,859
Accumulated Other Comprehensive Losses		(2,893	)		(3,518	)		(2,893	)
Retained Earnings		435,762			439,830			437,154
Total Stockholders’ Equity		458,757			453,106			459,564
	$	985,211		$	1,008,889		$	982,810

* From audited financial statements.

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