Eagle Materials Inc. Reports Fiscal Year EPS up 29% on Record Revenue

DALLAS–(BUSINESS WIRE)–Eagle Materials Inc. (NYSE: EXP) today reported financial results for
fiscal year 2018 and the fiscal fourth quarter ended March 31, 2018.
Notable items for the fiscal year and quarter are highlighted below.
(Unless otherwise noted, all comparisons are with the prior fiscal year
or prior yearÔÇÖs fiscal fourth quarter):

Full Year Fiscal 2018 Results

• Record revenue of $1.4 billion, up 14%
• Record net earnings per diluted share of $5.28, up 29%
• After-tax margin (Net Earnings/Revenue) of 19%

Fourth Quarter Fiscal 2018 Results

• Record revenue of $284.7 million, up 2%
• Net earnings per diluted share of $0.76, up 1%
• Fourth Quarter Fiscal 2018 results were affected by two items:
  • A $6 million pre-tax charge related to the settlement by American
    Gypsum of the antitrust lawsuit brought by a group of homebuilders
  • $4 million of personnel-related expenses, including an increased
    contribution made to the Eagle profit sharing plan and a pension
    settlement charge

Commenting on the results, Dave Powers, President and CEO, said, ÔÇ£Our
track record of competitive margin performance remains industry leading
due to our long-standing commitment to improving our low-cost producer
positions, through wise investment in our people, processes and
operations. We have invested more than $1.5 billion so far this cycle to
profitably grow our businesses and create shareholder value. As we look
ahead, our strong balance sheet and anticipated cash flows, which have
been enhanced by tax reform, position us to continue to execute on
value-creation opportunities.ÔÇØ

Capital Allocation Priorities

During fiscal 2018, Eagle repurchased approximately 628,000 of its
common stock under its repurchase program at an aggregate purchase price
of $61.1 million. Eagle remains dedicated to a disciplined capital
allocation process to enhance shareholder value. Consistent with our
track record, our allocation priorities remain unchanged: 1.
Acquisitions that meet our strict return standards and are consistent
with our strategic focus; 2. Capital investments to organically
strengthen our low-cost producer positions; 3. The return of cash to
shareholders, primarily through our share repurchase program.

In the past three years, we have invested nearly $470 million in
acquisitions, $278 million in organic capital expenditures and $303
million in share repurchases and dividends. At March 31, 2018, nearly
4.2 million shares remain under the current repurchase authorization.

Segment Results

Heavy Materials: Cement, Concrete and Aggregates

Revenue in the Heavy Materials sector, which includes Cement, Concrete
and Aggregates and joint venture and intersegment Cement revenue,
increased 12% to $807.4 million in fiscal year 2018. Heavy Materials
operating earnings for the fiscal year were $197.0 million, an increase
of 15%.

Revenue from Cement, including joint venture and intersegment revenue,
increased 15% to $651.8 million for full fiscal 2018. Fiscal 2018
operating earnings from Cement were a record $179.2 million, an increase
of 17%, reflecting the financial results of the acquired cement plant in
Fairborn, Ohio and related assets (the Fairborn Business) and improved
pricing.

Operating earnings from Cement for the fourth quarter were $24.7
million, 5% below the same quarter a year ago. The earnings decline was
driven primarily by reduced sales volume due to persistently wet weather
in many of our markets and was partially offset by earnings from the
Fairborn Business and improved average net cement sales prices. Cement
revenue for the quarter, including joint venture and intersegment
revenue, was down 1% to $115.6 million. Cement sales volume for the
quarter was down 4% to 945,000 tons. The average net sales price for the
quarter improved 3% to $108.98 per ton.

Fiscal 2018 revenue from Concrete and Aggregates increased 2% to $155.7
million. Concrete and Aggregates reported fiscal 2018 operating earnings
of $17.9 million, down 1%.

Concrete and Aggregates revenue for the fourth quarter of 2018 was $30.7
million, a decrease of 22%. Fourth quarter operating earnings were $2.8
million, a 44% decline from the same quarter a year ago, reflecting wet
weather in two of our markets that hampered our ability to place
concrete during the quarter.

Light Materials: Gypsum Wallboard and Paperboard

Revenue in the Light Materials sector, which includes Gypsum Wallboard
and Paperboard, increased 4% to $603.2 million for fiscal 2018.
Operating earnings for the full fiscal year were $191.3 million in the
sector, a decrease of 3%, reflecting higher paper costs partially offset
by improved wallboard sales volume.

Gypsum Wallboard and Paperboard revenue for the fourth quarter totaled
$136.4 million, a 1% decrease. The decline reflects lower wallboard
sales volume partially offset by improved prices. The average Gypsum
Wallboard net sales price for the fourth quarter of fiscal 2018 was
$162.77 per MSF, a 3% improvement reflecting American GypsumÔÇÖs price
increase implemented in early January. Gypsum Wallboard sales volume of
541 million square feet (MMSF) was down approximately 10%.

Underlying demand fundamentals in wallboard continue to improve with the
increase in residential construction activity during the year. The
decline in wallboard sales volume in the fourth quarter of 2018 versus
the prior-year period was impacted by a shift in the timing of
pre-buying activity ahead of our January wallboard price increase.

The average Paperboard net sales price this quarter was $543.09 per ton,
up 3%. Paperboard sales volume for the quarter was 8% higher at 78,000
tons.

Gypsum Wallboard and Paperboard reported fourth quarter operating
earnings of $45.7 million, an improvement of 3%. The improvement
reflects higher wallboard net sales prices and lower operating costs,
which were partially offset by lower wallboard sales volume. The reduced
operating costs reflect lower recycled paper fibers costs during the
quarter.

Oil and Gas Proppants

EagleÔÇÖs Oil and Gas Proppants segment reported fiscal 2018 revenue of
$85.5 million, an increase of 147%, primarily reflecting a 170% increase
in frac sand sales volume. The fiscal 2018 operating loss was $6.4
million versus an operating loss of $14.6 million in the prior year.

EagleÔÇÖs Oil and Gas Proppants segment reported fourth quarter revenue of
$22.6 million, an increase of 43%, primarily reflecting a 59% increase
in frac sand sales volume. The fourth quarter sales volume was impacted
by harsh winter weather and rail delays. The fourth quarterÔÇÖs operating
loss of $1.6 million includes depreciation, depletion and amortization
of $3.7 million.

Details of Financial Results

We conduct one of our cement plant operations through a 50/50 joint
venture, Texas Lehigh Cement Company LP (the ÔÇ£Joint VentureÔÇØ). We use
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 VentureÔÇÖs revenue and operating
earnings, which is consistent with the way management organizes the
segments within Eagle for making operating decisions and assessing
performance.

In addition, for segment reporting purposes, we report intersegment
revenue as a part of a segmentÔÇÖs total revenue. Intersegment sales are
eliminated on the income statement. Refer to Attachment 3 for a
reconciliation of these amounts.

About Eagle Materials Inc.

Eagle Materials Inc. manufactures and distributes Cement, Aggregates,
Concrete, Gypsum Wallboard, Recycled Paperboard and Frac Sand from over
75 facilities across the U.S. Eagle is headquartered in Dallas, Texas.

EXPÔÇÖs senior management will conduct a conference call to discuss
the financial results, forward looking information and other matters at
8:30 a.m. Eastern Time (7:30 a.m. Central Time) on Tuesday, May 15, 2018.
The conference call will be webcast simultaneously on the EXP Web
site eaglematerials.com.
A replay of the webcast and the presentation will be archived on
the site for one year.

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; the fact that
our products are commodities and that prices for our products are
subject to material fluctuation due to market conditions and other
factors beyond our control; availability of raw materials; changes in
energy costs including, without limitation, natural gas, coal and oil;
changes in the cost and availability of transportation; unexpected
operational difficulties, including unexpected maintenance costs,
equipment downtime and interruption of production; material nonpayment
or non-performance by any of our key customers; fluctuations in activity
in the oil and gas industry, including the level of fracturing
activities and the demand for frac sand; inability to timely execute
announced capacity expansions; difficulties and delays in the
development of new business lines; governmental regulation and changes
in governmental and public policy (including, without limitation,
climate change regulation); possible outcomes of pending or future
litigation or arbitration proceedings; changes in economic conditions
specific to any one or more of the Company's markets; competition; a
cyber-attack or data security breach; announced increases in capacity in
the gypsum wallboard, cement and frac sand industries; changes in the
demand for residential housing construction or commercial construction;
risks related to pursuit of acquisitions, joint ventures and other
transactions; 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, coal 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,
2017 and the CompanyÔÇÖs Quarterly Report on Form 10-Q for the fiscal
quarter ended December 31, 2017. These reports are filed with the
Securities and Exchange Commission. With respect to our completed
acquisition of the Fairborn Business as described in this press release,
factors, risks and uncertainties that may cause actual events and
developments to vary materially from those anticipated in such
forward-looking statements include, but are not limited to, failure to
realize any expected synergies from or other benefits of the
transaction, possible negative effects of consummation of the
transaction, significant transaction or ownership transition costs,
unknown liabilities or other adverse developments affecting the Fairborn
Business, including the results of operations of the Fairborn Business
prior and after the closing, the effect on the Fairborn Business of the
same or similar factors discussed above to which our business is
subject, including changes in market conditions in the construction
industry and general economic and business conditions that may affect us
following the acquisition. 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.

Attachment 1 Statement of Consolidated Earnings
Attachment 2
Revenue and Earnings by Lines of Business (Quarter and Fiscal Year)
Attachment
3 Sales Volume, Net Sales Prices and Intersegment and Cement Revenue
Attachment
4 Consolidated Balance Sheets
Attachment 5 Depreciation, Depletion
and Amortization by Lines of Business

Contacts

Eagle Materials Inc.
David B. Powers, 214-432-2000
President
& CEO
or
D. Craig Kesler, 214-432-2000
Executive
Vice President & CFO
or
Robert S. Stewart, 214-432-2000
Executive
Vice President