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SEGMENT INFORMATION
9 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(N) SEGMENT INFORMATION

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

We operate in five business segments: Cement, Gypsum Wallboard, Recycled Paperboard, Oil and Gas Proppants and Concrete and Aggregates. These operations are conducted in the U.S. and include the mining of limestone and the manufacture, production, distribution and sale of Portland cement (a basic construction material which is the essential binding ingredient in concrete), the mining of gypsum and 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) and sand used in hydraulic fracturing (“frac sand”). The products that we manufacture, distribute and sell are basic materials used with broad application as construction products, building materials, and basic materials used for oil and natural gas extraction.  Our construction products are used in residential, industrial, commercial and infrastructure construction and include cement, concrete and aggregates.  Our building materials are sold into similar markets and include gypsum wallboard.  Our basic materials used for oil and natural gas extraction include frac sand and oil well cement.

We operate six cement plants, one slag grinding facility, sixteen cement distribution terminals, five gypsum wallboard plants, including the plant idled in Bernalillo, N.M., a gypsum wallboard distribution center, a recycled paperboard mill, seventeen readymix concrete batch plant locations, three aggregates processing plant locations, three frac sand processing facilities, three frac sand drying facilities and six frac sand trans-load locations. The principal markets for our cement products are Texas, northern Illinois (including Chicago), the central plains, the Rocky Mountains, northern Nevada, and northern California. Gypsum wallboard and recycled paperboard are distributed throughout the continental U.S, with the exception of the northeast. Concrete and aggregates are sold to local readymix producers and paving contractors in the Austin, Texas area, north of Sacramento, California and the greater Kansas City, Missouri area, while frac sand is currently sold into shale deposit zones across the United States.   During July 2015, we completed the Skyway Acquisition, which is operated by Illinois Cement Company, and its operations are included in the Cement segment.

We conduct one of our six cement plant operations, Texas Lehigh Cement Company LP in Buda, Texas, through a Joint Venture. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture’s revenues and operating earnings, which is consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

We account for intersegment sales at market prices. The following table sets forth certain financial information relating to our operations by segment:

 

 

 

For the Three Months

 

 

For the Nine Months

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

135,419

 

 

$

124,048

 

 

$

428,385

 

 

$

397,845

 

Gypsum Wallboard

 

 

108,907

 

 

 

118,573

 

 

 

343,660

 

 

 

342,905

 

Paperboard

 

 

36,822

 

 

 

39,936

 

 

 

111,285

 

 

 

112,994

 

Oil and Gas Proppants

 

 

8,476

 

 

 

31,731

 

 

 

49,608

 

 

 

53,325

 

Concrete and Aggregates

 

 

31,779

 

 

 

27,116

 

 

 

96,982

 

 

 

85,239

 

Sub-total

 

 

321,403

 

 

 

341,404

 

 

 

1,029,920

 

 

 

992,308

 

Less: Intersegment Revenues

 

 

(17,986

)

 

 

(16,968

)

 

 

(56,005

)

 

 

(51,096

)

Net Revenues, including Joint Venture

 

 

303,417

 

 

 

324,436

 

 

 

973,915

 

 

 

941,212

 

Less: Joint Venture

 

 

(26,008

)

 

 

(32,907

)

 

 

(82,555

)

 

 

(98,624

)

Net Revenues

 

$

277,409

 

 

$

291,529

 

 

$

891,360

 

 

$

842,588

 

 

 

 

For the Three Months

 

 

For the Nine Months

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Intersegment Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

3,714

 

 

$

2,489

 

 

$

11,072

 

 

$

7,760

 

Paperboard

 

 

14,069

 

 

 

14,305

 

 

 

44,216

 

 

 

42,645

 

Concrete and Aggregates

 

 

203

 

 

 

174

 

 

 

717

 

 

 

691

 

 

 

$

17,986

 

 

$

16,968

 

 

$

56,005

 

 

$

51,096

 

Cement Sales Volume (in thousands of tons) -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly –owned Operations

 

 

999

 

 

 

935

 

 

 

3,238

 

 

 

3,135

 

Joint Venture

 

 

213

 

 

 

270

 

 

 

661

 

 

 

837

 

 

 

 

1,212

 

 

 

1,205

 

 

 

3,899

 

 

 

3,972

 


 

 

 

For the Three Months

 

 

For the Nine Months

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Operating Earnings -

 

 

 

 

 

 

 

 

Cement

 

$

41,768

 

 

$

37,578

 

 

$

116,058

 

 

$

96,535

 

Gypsum Wallboard

 

 

37,289

 

 

 

40,013

 

 

 

118,185

 

 

 

114,443

 

Paperboard

 

 

7,923

 

 

 

9,102

 

 

 

22,091

 

 

 

24,633

 

Oil and Gas Proppants

 

 

(9,153

)

 

 

3,241

 

 

 

(59,389

)

 

 

3,315

 

Concrete and Aggregates

 

 

1,521

 

 

 

1,638

 

 

 

7,304

 

 

 

5,959

 

Other, net

 

 

1,163

 

 

 

488

 

 

 

2,170

 

 

 

2,050

 

Sub-total

 

 

80,511

 

 

 

92,060

 

 

 

206,419

 

 

 

246,935

 

Corporate General and Administrative

 

 

(8,304

)

 

 

(9,371

)

 

 

(26,659

)

 

 

(23,827

)

Acquisition and Litigation Expense

 

 

-

 

 

 

(722

)

 

 

-

 

 

 

(2,825

)

Earnings Before Interest and Income Taxes

 

 

72,207

 

 

 

81,967

 

 

 

179,760

 

 

 

220,283

 

Interest Expense, net

 

 

(4,002

)

 

 

(4,101

)

 

 

(12,830

)

 

 

(12,054

)

Earnings Before Income Taxes

 

$

68,205

 

 

$

77,866

 

 

$

166,930

 

 

$

208,229

 

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly–owned Operations

 

$

31,285

 

 

$

25,155

 

 

$

86,065

 

 

$

62,261

 

Joint Venture

 

 

10,483

 

 

 

12,423

 

 

 

29,993

 

 

 

34,274

 

 

 

$

41,768

 

 

$

37,578

 

 

$

116,058

 

 

$

96,535

 

 

Capital Expenditures -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

3,206

 

 

$

3,890

 

 

$

16,705

 

 

$

16,886

 

Gypsum Wallboard

 

 

1,131

 

 

 

1,154

 

 

 

2,831

 

 

 

4,947

 

Paperboard

 

 

650

 

 

 

303

 

 

 

3,918

 

 

 

1,452

 

Oil and Gas Proppants

 

 

5,619

 

 

 

18,421

 

 

 

38,330

 

 

 

32,023

 

Concrete and Aggregates

 

 

9,061

 

 

 

1,128

 

 

 

13,752

 

 

 

9,477

 

Other

 

 

-

 

 

 

24

 

 

 

-

 

 

 

174

 

 

 

$

19,667

 

 

$

24,920

 

 

$

75,536

 

 

$

64,959

 

 

Depreciation, Depletion and Amortization -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

8,390

 

 

$

8,089

 

 

$

24,885

 

 

$

23,959

 

Gypsum Wallboard

 

 

5,445

 

 

 

4,967

 

 

 

15,050

 

 

 

15,096

 

Paperboard

 

 

2,093

 

 

 

2,069

 

 

 

6,209

 

 

 

6,196

 

Oil and Gas Proppants

 

 

7,210

 

 

 

2,673

 

 

 

21,974

 

 

 

3,926

 

Concrete and Aggregates

 

 

1,597

 

 

 

1,465

 

 

 

4,667

 

 

 

4,058

 

Other, net

 

 

476

 

 

 

425

 

 

 

1,460

 

 

 

1,317

 

 

 

$

25,211

 

 

$

19,688

 

 

$

74,245

 

 

$

54,552

 

 

 

 

As of

 

 

 

December 31,
2015

 

 

March 31,
2015

 

 

 

(dollars in thousands)

 

Identifiable Assets -

 

 

 

 

 

 

 

 

Cement

 

$

814,769

 

 

$

777,956

 

Gypsum Wallboard

 

 

382,081

 

 

 

403,279

 

Paperboard

 

 

121,640

 

 

 

123,519

 

Oil and Gas Proppants

 

 

425,128

 

 

 

455,572

 

Concrete and Aggregates

 

 

107,458

 

 

 

96,610

 

Corporate and Other

 

 

37,494

 

 

 

25,655

 

 

 

$

1,888,570

 

 

$

1,882,591

 

 

Segment operating earnings, including the proportionately consolidated 50% interest in the revenues and expenses of the Joint Venture, represent revenues, less direct operating expenses, segment depreciation, and segment selling, general and administrative expenses. Corporate assets consist primarily of cash and cash equivalents, general office assets, miscellaneous other assets and unrecognized tax benefits. The segment breakdown of goodwill is as follows:

 

 

 

As of

 

 

 

December 31,

 

 

March 31,

 

 

 

2015

 

 

2015

 

 

 

(dollars in thousands)

 

Cement

 

$

9,729

 

 

$

8,359

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

133,885

 

 

$

132,515

 

 

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 December 31,

 

 

For the Nine Months
Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenues

 

$

52,016

 

 

$

65,815

 

 

$

165,110

 

 

$

197,249

 

Gross Margin

 

$

22,388

 

 

$

26,445

 

 

$

64,593

 

 

$

72,282

 

Earnings Before Income Taxes

 

$

20,967

 

 

$

24,846

 

 

$

59,987

 

 

$

68,548

 

 

 

 

As of

 

 

 

December 31,
2015

 

 

March 31,
2015

 

 

 

(dollars in thousands)

 

Current Assets

 

$

73,037

 

 

$

68,399

 

Non-Current Assets

 

$

41,695

 

 

$

42,765

 

Current Liabilities

 

$

17,019

 

 

$

19,723