Eagle Materials Inc · NYSE:EXP

Eagle Materials — Q2 2023 Earnings Presentation

15 slides from Eagle Materials's earnings presentation, Oct 26, 2022

  1. Slide 1: Second Quarter Fiscal 2023 Earnings Release and Conference Call

    October 26, 2022 Second Quarter Fiscal 2023 Earnings Release and Conference Call

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Forward‐Looking Statements. This presentation contains forward‐looking statements within the and their effects on our facilities, operations and contractual arrangements with third parties; meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities

  3. Slide 3: Fiscal Year 2023 Second Quarter Financial Highlights

    Fiscal Year 2023 Second Quarter Financial Highlights Strong first half of year – exceeded expectations  Delivered record results for another consecutive quarter — Revenue up 19% to record $605 million — Gross profit margin increased 160 bps to 32.1% — Diluted EPS up 51% to record $3.72  Pricing ac

  4. Slide 4: Fiscal Year 2023 Second Quarter Strategic Highlights

    Fiscal Year 2023 Second Quarter Strategic Highlights Steady progress on strategic priorities  Invested in strategic growth opportunities — Acquired cement distribution terminal in Nashville, Tennessee, extending operations in high-growth Southeastern region — Purchased aggregates quarry in northern

  5. Slide 5: Record Revenue Up 19%

    Record Revenue Up 19% Revenue $700 In millions $605 $600 $510 19% $500 INCREASE DRIVEN BY:  Higher Cement and Wallboard $400 sales prices $300  Gain in Wallboard sales volume $200 $100 $0 2022 2023 FISCAL Q2 5

  6. Slide 6: Record EPS Up 51%

    Record EPS Up 51% Diluted EPS $5 INCREASE REFLECTS: $4 $3.72  Robust price improvement $4  Reduced share count due to $3 51% $2.46 share buybacks $3  Non-routine expenses of $0.27 $2 per share in prior year $2 $1 $1 $0 2022 2023 FISCAL Q2 6

  7. Slide 7: Heavy Materials Second Quarter Results Reflect Strong Pricing Momentum

    Heavy Materials Second Quarter Results Reflect Strong Pricing Momentum Revenue1 Operating Earnings In millions In millions $389 $106 $96 SECOND QUARTER CEMENT 10% 14% $341  Net sales prices +12%  Sales volume -2% FY2022 FY2023 FY2022 FY2023 SECOND QUARTER SECOND QUARTER 1 Includes Cement, Concrete

  8. Slide 8: Light Materials Second Quarter Results Driven by Higher Wallboard Sales Price and Volume

    Light Materials Second Quarter Results Driven by Higher Wallboard Sales Price and Volume Revenue Operating Earnings In millions In millions $253 $95 SECOND QUARTER WALLBOARD $201 26% 42%  Net sales prices +22% $67  Sales volume +6% FY2022 FY2023 FY2022 FY2023 SECOND QUARTER SECOND QUARTER 8

  9. Slide 9: Continued Strong Cash Flow Generation

    Continued Strong Cash Flow Generation $300 million of cash flow from operations Six months ended September 30 in millions 2021 2022 Operating Cash Flow1 $262 $300 +15% Capex, net (27) (43) Free Cash Flow $235 $257 Acquisition Spending - (159) Dividends Paid (11) (19) Share Repurchases (248) (210) Ch

  10. Slide 10: Capital Structure Provides Significant Financial Flexibility

    Capital Structure Provides Significant Financial Flexibility Net Debt-to-Cap Net Debt to Adjusted EBITDA1 1.5x 48% 1.4x 45% 3.31.22 9.30.22 3.31.22 9.30.22 1 “Net Debt to Adjusted EBITDA” is defined as Net Debt divided by Adjusted EBITDA. Net Debt to Adjusted EBITDA and Adjusted EBITDA are non-GAAP

  11. Slide 11: Question & Answer

    E Eagle Materials Question & Answer

  12. 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.

  13. Slide 13: Appendix

    E Fagle Materials Appendix

  14. 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 September 30, 2022 Adjusted EBITDA to provide more consistent comparison of operating performance from period to period. EBITDA is

  15. 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 September 30, 2022 liquidity measures defined by GAAP. We define Net Debt as total debt minus cash and cash equivalents to indica

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