XML 37 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
SEGMENT INFORMATION
6 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(M) 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 in order to allocate resources and assess performance.

We are a leading supplier of heavy construction materials, light building materials, and materials used for oil and natural gas extraction in the United States. Our products are commodities that are essential in commercial and residential construction; public construction projects; projects to build, expand, and repair roads and highways; and in oil and natural gas extraction.

Our business is organized into three sectors within which there are five 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. The Oil and Gas Proppants segment produces frac sand used in oil and gas exploration and extraction.

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) and sand used in hydraulic fracturing (frac sand).

We operate seven cement plants, one slag grinding facility, 18 cement distribution terminals, five gypsum wallboard plants, a gypsum wallboard distribution center, a recycled paperboard mill, 17 readymix concrete batch plants, four aggregates processing plants, 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, Illinois, the central plains, Michigan, Iowa, the Rocky Mountains, northern Nevada, southern Ohio, and northern California. We distribute gypsum wallboard and recycled paperboard 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, the region north of Sacramento, California; and the greater Kansas City, Missouri area. Frac sand is currently sold into shale deposits across the United States. Other segment operations that are not material to our business are included in Other.

We conduct one of our seven 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 Revenue and Operating Earnings, 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 Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(dollars in thousands)

 

Revenue -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

193,161

 

 

$

191,650

 

 

$

379,949

 

 

$

374,585

 

Concrete and Aggregates

 

 

39,744

 

 

 

43,431

 

 

 

80,584

 

 

 

87,350

 

Gypsum Wallboard

 

 

129,609

 

 

 

123,068

 

 

 

272,024

 

 

 

249,881

 

Paperboard

 

 

41,277

 

 

 

45,359

 

 

 

86,410

 

 

 

89,772

 

Oil and Gas Proppants

 

 

19,080

 

 

 

22,022

 

 

 

40,838

 

 

 

40,932

 

Other

 

 

4,386

 

 

 

 

 

 

10,328

 

 

 

 

 

 

 

427,257

 

 

 

425,530

 

 

 

870,133

 

 

 

842,520

 

Less: Intersegment Revenue

 

 

(20,279

)

 

 

(23,215

)

 

 

(42,135

)

 

 

(45,914

)

Less: Joint Venture Revenue

 

 

(25,479

)

 

 

(26,000

)

 

 

(52,743

)

 

 

(54,170

)

 

 

$

381,499

 

 

$

376,315

 

 

$

775,255

 

 

$

742,436

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(dollars in thousands)

 

Intersegment Revenue -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

4,073

 

 

$

4,654

 

 

$

8,251

 

 

$

9,583

 

Concrete and Aggregates

 

 

501

 

 

 

402

 

 

 

832

 

 

 

815

 

Paperboard

 

 

15,705

 

 

 

18,159

 

 

 

33,052

 

 

 

35,516

 

 

 

$

20,279

 

 

$

23,215

 

 

$

42,135

 

 

$

45,914

 

Cement Sales Volume (M tons) -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

 

1,339

 

 

 

1,343

 

 

 

2,614

 

 

 

2,611

 

Joint Venture

 

 

218

 

 

 

227

 

 

 

454

 

 

 

470

 

 

 

 

1,557

 

 

 

1,570

 

 

 

3,068

 

 

 

3,081

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(dollars in thousands)

 

Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

57,547

 

 

$

58,752

 

 

$

94,881

 

 

$

101,933

 

Concrete and Aggregates

 

 

4,100

 

 

 

5,619

 

 

 

9,584

 

 

 

11,640

 

Gypsum Wallboard

 

 

45,671

 

 

 

39,575

 

 

 

96,151

 

 

 

83,396

 

Paperboard

 

 

8,609

 

 

 

6,517

 

 

 

18,603

 

 

 

11,455

 

Oil and Gas Proppants

 

 

(7,921

)

 

 

(1,754

)

 

 

(10,612

)

 

 

(3,780

)

Other

 

 

98

 

 

 

 

 

 

382

 

 

 

 

Sub-Total

 

 

108,104

 

 

 

108,709

 

 

 

208,989

 

 

 

204,644

 

Corporate General and Administrative Expense

 

 

(9,922

)

 

 

(9,821

)

 

 

(17,925

)

 

 

(19,500

)

Litigation Settlements and Losses

 

 

 

 

 

 

 

 

(1,800

)

 

 

 

Other Non-Operating Income

 

 

428

 

 

 

887

 

 

 

999

 

 

 

1,644

 

Earnings Before Interest and Income Taxes

 

 

98,610

 

 

 

99,775

 

 

 

190,263

 

 

 

186,788

 

Interest Expense, net

 

 

(6,817

)

 

 

(7,456

)

 

 

(13,449

)

 

 

(14,939

)

Earnings Before Income Taxes

 

$

91,793

 

 

$

92,319

 

 

$

176,814

 

 

$

171,849

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

$

47,374

 

 

$

46,797

 

 

$

75,457

 

 

$

80,102

 

Joint Ventures

 

 

10,173

 

 

 

11,955

 

 

 

19,424

 

 

 

21,831

 

 

 

$

57,547

 

 

$

58,752

 

 

$

94,881

 

 

$

101,933

 

Capital Expenditures -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

14,220

 

 

$

13,014

 

 

$

33,833

 

 

$

20,732

 

Concrete and Aggregates

 

 

459

 

 

 

1,118

 

 

 

2,523

 

 

 

2,530

 

Gypsum Wallboard

 

 

4,124

 

 

 

5,219

 

 

 

6,479

 

 

 

10,861

 

Paperboard

 

 

5,345

 

 

 

659

 

 

 

6,410

 

 

 

1,423

 

Oil and Gas Proppants

 

 

14,827

 

 

 

13,781

 

 

 

42,463

 

 

 

14,360

 

Other, net

 

 

1,396

 

 

 

140

 

 

 

1,736

 

 

 

185

 

 

 

$

40,371

 

 

$

33,931

 

 

$

93,444

 

 

$

50,091

 

Depreciation, Depletion and Amortization -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

12,746

 

 

$

12,662

 

 

$

25,667

 

 

$

25,141

 

Concrete and Aggregates

 

 

2,052

 

 

 

1,929

 

 

 

4,105

 

 

 

3,844

 

Gypsum Wallboard

 

 

5,201

 

 

 

4,473

 

 

 

10,031

 

 

 

8,915

 

Paperboard

 

 

2,128

 

 

 

2,172

 

 

 

4,237

 

 

 

4,309

 

Oil and Gas Proppants

 

 

9,398

 

 

 

8,518

 

 

 

16,537

 

 

 

16,124

 

Corporate and Other

 

 

801

 

 

 

552

 

 

 

1,599

 

 

 

920

 

 

 

$

32,326

 

 

$

30,306

 

 

$

62,176

 

 

$

59,253

 

 

 

 

 

September 30,

 

 

March 31,

 

 

 

2018

 

 

2018

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

 

 

Cement

 

$

1,274,535

 

 

$

1,247,504

 

Concrete and Aggregates

 

 

104,166

 

 

 

104,851

 

Gypsum Wallboard

 

 

378,902

 

 

 

386,041

 

Paperboard

 

 

127,026

 

 

 

123,819

 

Oil and Gas Proppants

 

 

428,356

 

 

 

401,421

 

Other, net

 

 

66,527

 

 

 

104,367

 

 

 

$

2,379,512

 

 

$

2,368,003

 

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 primarily of cash and cash equivalents, general office assets, 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,

 

 

 

2018

 

 

2018

 

 

 

(dollars in thousands)

 

Cement

 

$

74,214

 

 

$

74,214

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

Corporate and Other

 

 

6,841

 

 

 

6,841

 

 

 

$

205,211

 

 

$

205,211

 

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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(dollars in thousands)

 

Revenue

 

$

51,859

 

 

$

54,000

 

 

$

107,510

 

 

$

111,818

 

Gross Margin

 

$

21,877

 

 

$

24,938

 

 

$

42,018

 

 

$

46,251

 

Earnings Before Income Taxes

 

$

20,345

 

 

$

23,910

 

 

$

38,849

 

 

$

43,662

 

 

 

 

September 30,

 

 

March 31,

 

 

 

2018

 

 

2018

 

 

 

(dollars in thousands)

 

Current Assets

 

$

67,861

 

 

$

71,089

 

Non-Current Assets

 

$

67,679

 

 

$

66,856

 

Current Liabilities

 

$

18,191

 

 

$

20,671