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Business Segments
12 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Business Segments

(G) Business Segments

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. Operations related to the Skyway Acquisition will be included in the cement segment, as this plant has an identical customer base and is managed by the cement divison.

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 and slag (a basic construction material which are the essential binding ingredients in concrete), the grinding of slag, 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 with broad application as construction products, building materials, and basic materials used for oil and natural gas extraction.  Our construction productions 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, four aggregates processing plant locations, two 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 deposits across the United States.

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 Years Ended March 31,

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

528,499

 

 

$

488,644

 

 

$

438,224

 

Gypsum Wallboard

 

 

461,457

 

 

 

437,514

 

 

 

387,016

 

Paperboard

 

 

149,192

 

 

 

142,690

 

 

 

130,178

 

Oil and Gas Proppants

 

 

57,591

 

 

 

81,381

 

 

 

19,557

 

Concrete and Aggregates

 

 

128,073

 

 

 

107,892

 

 

 

96,908

 

 

 

 

1,324,812

 

 

 

1,258,121

 

 

 

1,071,883

 

Less: Intersegment Revenues

 

 

(73,862

)

 

 

(65,533

)

 

 

(62,094

)

Less: Joint Venture Revenues

 

 

(107,458

)

 

 

(126,220

)

 

 

(111,393

)

 

 

$

1,143,492

 

 

$

1,066,368

 

 

$

898,396

 

 

 

 

For the Years Ended March 31,

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

Intersegment Revenues -

 

 

 

 

 

 

 

 

 

Cement

 

$

13,939

 

 

$

9,598

 

 

$

8,952

 

Paperboard

 

 

59,001

 

 

 

55,060

 

 

 

52,119

 

Concrete and Aggregates

 

 

922

 

 

 

875

 

 

 

1,023

 

 

 

$

73,862

 

 

$

65,533

 

 

$

62,094

 

Cement Sales Volumes (M tons) -

 

 

 

 

 

 

 

 

 

 

 

 

Wholly-Owned

 

 

3,903

 

 

 

3,744

 

 

 

3,580

 

Joint Venture

 

 

875

 

 

 

1,055

 

 

 

1,013

 

 

 

 

4,778

 

 

 

4,799

 

 

 

4,593

 

 

 

 

For the Years Ended March 31,

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

Cement

$

 

137,854

 

 

$

117,527

 

 

$

89,486

 

Gypsum Wallboard

 

 

159,352

 

 

 

145,871

 

 

 

114,852

 

Paperboard

 

 

32,153

 

 

 

31,512

 

 

 

23,610

 

Oil and Gas Proppants

 

 

(68,466

)

 

 

(2,546

)

 

 

(4,890

)

Concrete and Aggregates

 

 

9,807

 

 

 

6,736

 

 

 

212

 

Other, net

 

 

2,328

 

 

 

3,201

 

 

 

1,368

 

Sub-Total

 

 

273,028

 

 

 

302,301

 

 

 

224,638

 

Corporate General and Administrative

 

 

(37,193

)

 

 

(30,751

)

 

 

(24,552

)

Acquisition, Litigation and Other Expense

 

 

 

 

 

(6,880

)

 

 

 

Earnings Before Interest and Income Taxes

 

 

235,835

 

 

 

264,670

 

 

 

200,086

 

Interest Expense, net

 

 

(16,583

)

 

 

(11,743

)

 

 

(18,282

)

Earnings Before Income Taxes

 

$

219,252

 

 

$

252,927

 

 

$

181,804

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

Wholly-Owned

 

$

98,771

 

 

$

72,560

 

 

$

51,675

 

Joint Ventures

 

 

39,083

 

 

 

44,967

 

 

 

37,811

 

 

 

$

137,854

 

 

$

117,527

 

 

$

89,486

 

Capital Expenditures -

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

20,262

 

 

$

27,086

 

 

$

12,226

 

Gypsum Wallboard

 

 

4,832

 

 

 

7,129

 

 

 

4,825

 

Paperboard

 

 

5,542

 

 

 

1,888

 

 

 

3,354

 

Oil and Gas Proppants

 

 

40,144

 

 

 

61,484

 

 

 

34,264

 

Concrete and Aggregates

 

 

18,783

 

 

 

13,851

 

 

 

4,572

 

Other, net

 

 

 

 

 

135

 

 

 

249

 

 

 

$

89,563

 

 

$

111,573

 

 

$

59,490

 

Depreciation , Depletion and Amortization -

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

33,400

 

 

$

31,839

 

 

$

31,829

 

Gypsum Wallboard

 

 

19,988

 

 

 

20,092

 

 

 

20,981

 

Paperboard

 

 

8,312

 

 

 

8,251

 

 

 

8,716

 

Oil and Gas Proppants

 

 

27,227

 

 

 

8,839

 

 

 

1,707

 

Concrete and Aggregates

 

 

6,260

 

 

 

5,533

 

 

 

5,205

 

Corporate and Other

 

 

1,918

 

 

 

1,745

 

 

 

1,583

 

 

 

$

97,105

 

 

$

76,299

 

 

$

70,021

 

 

 

 

As of March 31,

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

819,994

 

 

$

777,956

 

 

$

762,578

 

Gypsum Wallboard

 

 

392,523

 

 

 

403,279

 

 

 

412,566

 

Paperboard

 

 

127,371

 

 

 

123,519

 

 

 

125,045

 

Oil and Gas Proppants

 

 

409,497

 

 

 

455,572

 

 

 

92,199

 

Concrete and Aggregates

 

 

106,634

 

 

 

96,610

 

 

 

87,364

 

Other, net

 

 

27,616

 

 

 

23,390

 

 

 

31,777

 

 

 

$

1,883,635

 

 

$

1,880,326

 

 

$

1,511,529

 

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. We account for intersegment sales at market prices. Corporate assets consist primarily of cash and cash equivalents, general office assets and miscellaneous other assets.

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

The segment breakdown of goodwill at March 31, 2016 and 2015 is as follows:

 

 

 

For the Years Ended March 31,

 

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

Cement

 

$

9,729

 

 

$

8,359

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

133,885

 

 

$

132,515