Slide 1: Third Quarter Fiscal 2023 Earnings Release and Conference Call
January 26, 2023 Third Quarter Fiscal 2023 Earnings Release and Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements. This presentation contains forward-looking statements within contractual arrangements with third parties; competition; cyber-attacks or data security the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities breache
Slide 3: Fiscal Year 2023 Third Quarter Highlights
Fiscal Year 2023 Third Quarter Highlights On track for another record year Delivered record quarterly results — Revenue up 10% to record $511 million — Gross profit margin increased 110 bps to 31.0% — Diluted EPS up 26% to record $3.20 Returned $113 million to shareholders — Repurchased 824,000
Slide 4: Business Conditions
Business Conditions Underlying economic fundamentals support both sectors Strong demand outlook — State DoT budgets running well above prior decade averages, with high allocations to fund infrastructure; skewing favorably toward Eagle footprint Cement — Federal highway bill continues to support in
Slide 5: Record Revenue Up 10%
Record Revenue Up 10% Revenue In millions $511 $463 10% INCREASE DRIVEN BY: Higher Cement and Wallboard sales prices Gain in Wallboard sales volume 2022 2023 FISCAL Q3 5
Slide 6: Record EPS Up 26%
Record EPS Up 26% Diluted EPS $4 $3.20 $3 $2.53 26% INCREASE REFLECTS: $3 Strong fundamentals in both $2 Cement and Wallboard $2 Reduced share count $1 $1 $0 2022 2023 FISCAL Q3 6
Slide 7: Heavy Materials Third Quarter Results Reflect Higher Cement Prices Offset by Weather Headwinds
Heavy Materials Third Quarter Results Reflect Higher Cement Prices Offset by Weather Headwinds Revenue1 Operating Earnings In millions In millions $311 $304 $84 THIRD QUARTER CEMENT $75 Net sales prices +13% Sales volume -13% FY2022 FY2023 FY2022 FY2023 THIRD QUARTER THIRD QUARTER 1 Includes Cem
Slide 8: Light Materials Third Quarter Results Up on Higher Wallboard Sales Prices and Volume
Light Materials Third Quarter Results Up on Higher Wallboard Sales Prices and Volume Revenue Operating Earnings In millions In millions $235 $95 $192 23% THIRD QUARTER WALLBOARD 51% Net sales prices +25% $63 Sales volume +5% FY2022 FY2023 FY2022 FY2023 THIRD QUARTER THIRD QUARTER 8
Slide 9: Continued Strong Cash Flow Generation
Continued Strong Cash Flow Generation $180 million of cash flow from operations Three months ended December 31 in millions 2021 2022 Operating Cash Flow1 $167 $180 +7% Capex, net (28) (18) Free Cash Flow $139 $162 Dividends Paid (10) (9) Share Repurchases (188) (103) Change in Debt 25 (73) Other 6 -
Slide 10: Capital Structure Provides Significant Financial Flexibility
Capital Structure Provides Significant Financial Flexibility Net Debt-to-Cap Net Debt to Adjusted EBITDA1 47% 45% 1.4x 1.4x 3.31.22 12.31.22 3.31.22 12.31.22 1 Net Debt to Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures and are described in the Appendix. 10
Slide 11: Question & Answer
E Eagle Materials Question & Answer
Slide 12: Thank you for participating in today's conference call web cast
Thank you for participating in today’s conference call web cast. An archive of this web cast will be available at eaglematerials.com later today.
Slide 13: Appendix
E Eagle Materials Appendix
Slide 14: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA We present Earnings Before Interest, Taxes, Fiscal Year ended TTM Depreciation and Amortization (EBITDA) and March 31, 2022 December 31, 2022 Adjusted EBITDA to provide more consistent comparison of operating performance from period to period. EBITDA is a
Slide 15: Reconciliation of Net Debt to Adjusted EBITDA
Reconciliation of Net Debt to Adjusted EBITDA GAAP does not define “Net Debt” and it should not As of As of be considered as an alternative to cash flow or March 31, 2022 December 31, 2022 liquidity measures defined by GAAP. We define Net Debt as total debt minus cash and cash equivalents to indicat