Eagle Materials Inc · NYSE:EXP
Eagle Materials — Investor Presentation (September 2019)
18 slides from Eagle Materials's investor presentation, Sep 10, 2019
Slide 1: Autumn 2019 Investor Presentation
Low Cost Producer Sound Strategies Cyclic Tailwind Benefits Healthy Balance Sheet Strong Cash Flows Exceptional Track Record Autumn 2019 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements. This presentation 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 s
Slide 3: Eagle Materials Company Overview
Eagle Materials Company Overview Revenue (FYE March 31, $ in millions) Adjusted EBITDA1 & Margin (FYE March 31, $ in millions) Founded in 1963 as a subsidiary of Centex Corporation In 2004, Centex spun off Centex Construction Products which became Eagle Materials Inc. (NYSE: EXP) Diversified produce
Slide 4: Margin Performance Reflects Low Cost Position
Margin Performance Reflects Low Cost Position Pre-Tax Margins, Five Year Annual Averages Source: Source: Factset, Ending December 2018 Defined as earnings before income taxes divided by revenue EXP is a ~50/50 heavy/light business blend, yet margins are more than double the averages in either side,
Slide 5: Business Mix Overview
Business Mix Overview Gross Revenue by Segment for FYE Mar-19 ($ in millions)1 Operating Earnings + DD&A2 by Segment for FYE Mar-19 ($ in millions) 1 Includes intersegment revenue and our proportionate share of JV revenue 2 DD&A: Depreciation, Depletion and Amortization 34% 41% 9% 11% 5% 42% 45% 9%
Slide 6: Eagle Materials Capital Allocation
Eagle Materials Capital Allocation $1.2 Billion Over the Last Three Years 46%Heavy-Side Growth and Improvement (e.g., Cement Acquisitions) 36% Return of Cash to Shareholders 12% New Business Development (i.e., Close Adjacencies) 6%Light-Side Improvement Heavy-Side Growth and Improvement New Business
Slide 7: Cement
Cement 41% Note: Pie chart represents FYE Mar-19 Gross Revenue
Slide 8: Geographic Footprint – Cement
Geographic Footprint – Cement Contiguous System Largely Insulated from Coastal Imports Texas Lehigh (50%) 720 Illinois Cement 1,100 Mountain Cement 800 Nevada Cement 550 Central Plains Kansas City 1,100 Central Plains Tulsa 900 Fairborn Cement 980 1 Represents cement grinding production capacity; ge
Slide 9: US Cement Consumption and Clinker Capacity
US Cement Consumption and Clinker Capacity PCA Spring 2019 Consumption Outlook, Million Metric Tons New capacity -- and capacity expansion -- is constrained due to regulation (NESHAP) Imports will be required again to meet demand US Clinker Capacity
Slide 10: Historical Perspective on US Cement Demand
Historical Perspective on US Cement Demand Slowest Recovery in US History is Now the Longest ’19?
Slide 11: Gypsum Wallboard and Recycled Paperboard
Gypsum Wallboard and Recycled Paperboard 34% 11% Note: Pie chart represents FYE Mar-19 Gross Revenue
Slide 12: Eagle's US Market and Production Locations
Eagle’s US Market and Production Locations Wallboard Paperboard Gypsum, CO 700 MMSF Albuquerque, NM 425 MMSF Duke, OK 1,300 MMSF Georgetown, SC 900 MMSF Lawton, OK 350,000 tons paperboard Bernalillo, NM 550 MMSF Note: Design capacities here do not necessarily represent current operating rates (“effe
Slide 13: Industry Backdrop – Gypsum Wallboard
Industry Backdrop – Gypsum Wallboard US Demand is Closely Linked with Housing Source: Census Bureau, Gypsum Association
Slide 14: Significant, Sustained and Proven Cost Advantages
Significant, Sustained and Proven Cost Advantages Eagle Cost Advantages EXP Industry Sustained Innovation Focus on Cost Reduction Across Every Aspect of the Business System Inputs Waste Overhead Proximity of raw materials Unique technologies Material and energy usage Mining innovations Manufacturing
Slide 15: Historical Credit Ratios
Total Leverage Adj. EBITDA1 / Cash Interest (Adj. EBITDA1 – Capex) / Cash Interest Free Cash Flow2 / Total debt 1 Adjusted EBITDA is a non-GAAP measure; see appendix for reconciliation; 2 Net cash from operations less capital expenditures Historical Credit Ratios $ in millions, Fiscal Year Ending Ma
Slide 16: Contact Information
Contact Information Craig Kesler Executive Vice President and CFO (214) 432-2013 ckesler@eaglematerials.com Bob Stewart Executive Vice President, Strategy, Corporate Development and Communications (214) 432-2040 bstewart@eaglematerials.com Eagle Materials Inc. NYSE: EXP www.eaglematerials.com 28
Slide 17: Appendix
Estee Materials Appendix
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions, Fiscal Year Ending March 31 Relating to values associated primarily with a downward revaluation of (i) raw sand inventory that CRS Proppants purchased from a third party pursuant to a purchase contract entered into in connection with plant expansion; and
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