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SEGMENT INFORMATION
6 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(N) SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities that earn revenue, incur expenses, and prepare separate financial information that is evaluated regularly by our chief operating decision maker to allocate resources and assess performance.

Our business is organized into two sectors within which there are four reportable business segments. The Heavy Materials sector includes the Cement and Concrete and Aggregates segments. The Light Materials sector includes the Gypsum Wallboard and Recycled Paperboard segments.

Our primary products are commodities that are essential in commercial and residential construction; public construction projects to build, expand, and repair roads and buildings; and all repair and remodel activities. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. We distribute our products across many United States markets, which provides us with regional economic diversification. Our operations are conducted in the U.S. and include the mining of limestone for the manufacture, production, distribution, and sale of portland cement (a basic construction material that is the essential binding ingredient in concrete); the grinding and sale of slag; the mining of gypsum for the manufacture and sale of gypsum wallboard; the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and the mining and sale of aggregates (crushed stone, sand, and gravel).

We operate eight modern cement plants (one of which is operated through a joint venture located in Buda, Texas), one slag grinding facility, and over 30 cement distribution terminals. Our cement companies focus on the U.S. heartland and operate as an integrated network selling product primarily in California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Tennessee, and Texas. We operate 25 readymix concrete batch plants and six aggregates processing plants in markets that are complementary to our cement network.

We operate five gypsum wallboard plants and a recycled paperboard mill. We distribute gypsum wallboard and recycled paperboard throughout the continental U.S., with the exception of the Northeast.

We account for intersegment sales at market prices. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture Revenue and Operating Earnings, consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

The following table sets forth certain financial information relating to our operations by segment. We do not allocate interest or taxes at the segment level; these costs are disclosed at the consolidated company level.

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

352,780

 

 

$

360,751

 

 

$

691,942

 

 

$

689,783

 

Concrete and Aggregates

 

 

69,980

 

 

 

69,887

 

 

 

134,795

 

 

 

140,340

 

Gypsum Wallboard

 

 

214,975

 

 

 

209,233

 

 

 

432,801

 

 

 

428,330

 

Recycled Paperboard

 

 

50,777

 

 

 

43,016

 

 

 

105,017

 

 

 

88,344

 

 

 

 

688,512

 

 

 

682,887

 

 

 

1,364,555

 

 

 

1,346,797

 

Less: Intersegment Revenue

 

 

(36,068

)

 

 

(31,744

)

 

 

(74,112

)

 

 

(67,010

)

Less: Joint Venture Revenue

 

 

(28,825

)

 

 

(28,907

)

 

 

(58,135

)

 

 

(56,030

)

 

 

$

623,619

 

 

$

622,236

 

 

$

1,232,308

 

 

$

1,223,757

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Intersegment Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

10,384

 

 

$

9,251

 

 

$

20,664

 

 

$

19,388

 

Concrete and Aggregates

 

 

4,050

 

 

 

3,783

 

 

 

7,827

 

 

 

6,821

 

Recycled Paperboard

 

 

21,634

 

 

 

18,710

 

 

 

45,621

 

 

 

40,801

 

 

 

$

36,068

 

 

$

31,744

 

 

$

74,112

 

 

$

67,010

 

Cement Sales Volume (M tons)

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

 

1,848

 

 

 

1,959

 

 

 

3,615

 

 

 

3,807

 

Joint Venture

 

 

176

 

 

 

170

 

 

 

356

 

 

 

335

 

 

 

 

2,024

 

 

 

2,129

 

 

 

3,971

 

 

 

4,142

 

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

115,933

 

 

$

121,429

 

 

$

205,058

 

 

$

195,490

 

Concrete and Aggregates

 

 

(995

)

 

 

4,640

 

 

 

1,985

 

 

 

11,674

 

Gypsum Wallboard

 

 

90,141

 

 

 

85,705

 

 

 

184,117

 

 

 

176,562

 

Recycled Paperboard

 

 

8,041

 

 

 

7,590

 

 

 

16,544

 

 

 

14,792

 

Sub-Total

 

 

213,120

 

 

 

219,364

 

 

 

407,704

 

 

 

398,518

 

Corporate General and Administrative Expense

 

 

(17,879

)

 

 

(16,576

)

 

 

(33,528

)

 

 

(28,255

)

Other Non-Operating Income

 

 

724

 

 

 

1,605

 

 

 

3,407

 

 

 

1,818

 

Earnings Before Interest and Income Taxes

 

 

195,965

 

 

 

204,393

 

 

 

377,583

 

 

 

372,081

 

Interest Expense, net

 

 

(10,714

)

 

 

(10,204

)

 

 

(21,398

)

 

 

(22,443

)

Earnings Before Income Taxes

 

$

185,251

 

 

$

194,189

 

 

$

356,185

 

 

$

349,638

 

Cement Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

$

106,657

 

 

$

111,083

 

 

$

188,066

 

 

$

181,985

 

Joint Venture

 

 

9,276

 

 

 

10,346

 

 

 

16,992

 

 

 

13,505

 

 

 

$

115,933

 

 

$

121,429

 

 

$

205,058

 

 

$

195,490

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

47,981

 

 

$

14,487

 

 

$

66,775

 

 

$

26,757

 

Concrete and Aggregates

 

 

7,538

 

 

 

5,854

 

 

 

14,127

 

 

 

9,074

 

Gypsum Wallboard

 

 

4,085

 

 

 

5,452

 

 

 

7,365

 

 

 

16,480

 

Recycled Paperboard

 

 

4,555

 

 

 

2,597

 

 

 

8,116

 

 

 

5,865

 

Corporate and Other

 

 

2,318

 

 

 

1,064

 

 

 

3,222

 

 

 

7,277

 

 

 

$

66,477

 

 

$

29,454

 

 

$

99,605

 

 

$

65,453

 

Depreciation, Depletion, and Amortization

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

22,907

 

 

$

22,187

 

 

$

45,824

 

 

$

43,866

 

Concrete and Aggregates

 

 

5,283

 

 

 

4,962

 

 

 

9,813

 

 

 

9,993

 

Gypsum Wallboard

 

 

6,451

 

 

 

5,548

 

 

 

12,924

 

 

 

11,009

 

Recycled Paperboard

 

 

3,669

 

 

 

3,708

 

 

 

7,359

 

 

 

7,427

 

Corporate and Other

 

 

767

 

 

 

792

 

 

 

1,507

 

 

 

1,584

 

 

 

$

39,077

 

 

$

37,197

 

 

$

77,427

 

 

$

73,879

 

 

 

 

September 30,

 

 

March 31,

 

 

 

2024

 

 

2024

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

Cement

 

$

2,130,543

 

 

$

2,042,499

 

Concrete and Aggregates

 

 

269,410

 

 

 

225,485

 

Gypsum Wallboard

 

 

417,304

 

 

 

432,122

 

Recycled Paperboard

 

 

170,662

 

 

 

170,832

 

Other, net

 

 

133,884

 

 

 

76,081

 

 

 

$

3,121,803

 

 

$

2,947,019

 

Segment Operating Earnings, including the proportionately consolidated 50% interest in the revenue and expenses of the Joint Venture, represent Revenue, less direct operating expenses, segment Depreciation, and segment Selling, General, and Administrative expenses. We account for intersegment sales at market prices. Corporate assets consist mainly of cash and cash equivalents, general office assets, and miscellaneous other assets.

The basis used to disclose Identifiable Assets; Capital Expenditures; and Depreciation, Depletion, and Amortization conforms with the equity method, and is similar to how we disclose these accounts in our Unaudited Consolidated Balance Sheets and Unaudited Consolidated Statements of Earnings.

The segment breakdown of Goodwill is as follows:

 

 

September 30,

 

 

March 31,

 

 

 

2024

 

 

2024

 

 

 

(dollars in thousands)

 

Cement

 

$

227,639

 

 

$

227,639

 

Concrete and Aggregates

 

 

45,089

 

 

 

40,774

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Recycled Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

396,884

 

 

$

392,569

 

The increase in Goodwill in the Concrete and Aggregates segment is related to the Acquisition. The purchase price allocation is still in progress, and may affect the recorded balance of Goodwill when completed.

Summarized financial information for the Joint Venture that is not consolidated is set out below. This summarized financial information includes the total amount for the Joint Venture and not our 50% interest in those amounts:

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenue

 

$

57,650

 

 

$

57,813

 

 

$

116,270

 

 

$

112,060

 

Gross Margin

 

$

20,370

 

 

$

23,509

 

 

$

36,794

 

 

$

32,047

 

Earnings Before Income Taxes

 

$

18,437

 

 

$

20,690

 

 

$

33,985

 

 

$

27,009

 

 

 

 

 

September 30,

 

 

March 31,

 

 

 

2024

 

 

2024

 

 

 

(dollars in thousands)

 

Current Assets

 

$

124,109

 

 

$

111,164

 

Noncurrent Assets

 

$

184,289

 

 

$

158,618

 

Current Liabilities

 

$

42,864

 

 

$

27,994