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SEGMENT INFORMATION
9 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(P) 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 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 modern cement plants (one of which is operated through a joint venture located in Buda, Texas), one slag grinding facility, and 19 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, Iowa, Missouri, Nebraska, Nevada, Ohio, Oklahoma, and Texas. We operate 25 readymix concrete batch plants and five 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.

Our Oil and Gas Proppants business owns two frac sand processing facilities, four frac sand drying facilities, and five frac sand trans-load locations. Frac sand is currently sold into shale deposits across the United States.

We account for intersegment sales at market prices. 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.

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 December 31,

 

 

For the Nine Months Ended December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(dollars in thousands)

 

Revenue -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

183,031

 

 

$

163,732

 

 

$

605,357

 

 

$

543,681

 

Concrete and Aggregates

 

 

47,147

 

 

 

30,841

 

 

 

142,895

 

 

 

111,425

 

Gypsum Wallboard

 

 

125,070

 

 

 

130,954

 

 

 

380,454

 

 

 

402,978

 

Paperboard

 

 

37,813

 

 

 

39,638

 

 

 

122,360

 

 

 

126,048

 

Oil and Gas Proppants

 

 

7,345

 

 

 

14,100

 

 

 

36,535

 

 

 

65,266

 

 

 

 

400,406

 

 

 

379,265

 

 

 

1,287,601

 

 

 

1,249,398

 

Less: Intersegment Revenue

 

 

(21,775

)

 

 

(20,611

)

 

 

(66,454

)

 

 

(62,746

)

Less: Joint Venture Revenue

 

 

(28,382

)

 

 

(25,369

)

 

 

(85,775

)

 

 

(78,112

)

 

 

$

350,249

 

 

$

333,285

 

 

$

1,135,372

 

 

$

1,108,540

 

 

 

 

For the Three Months Ended December 31,

 

 

For the Nine Months Ended December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(dollars in thousands)

 

Intersegment Revenue -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

6,174

 

 

$

3,518

 

 

$

17,130

 

 

$

11,769

 

Concrete and Aggregates

 

 

350

 

 

 

346

 

 

 

1,134

 

 

 

1,178

 

Paperboard

 

 

15,251

 

 

 

16,747

 

 

 

48,190

 

 

 

49,799

 

 

 

$

21,775

 

 

$

20,611

 

 

$

66,454

 

 

$

62,746

 

Cement Sales Volume (M tons) -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

 

1,199

 

 

 

1,126

 

 

 

4,046

 

 

 

3,740

 

Joint Venture

 

 

240

 

 

 

218

 

 

 

721

 

 

 

672

 

 

 

 

1,439

 

 

 

1,344

 

 

 

4,767

 

 

 

4,412

 

 

 

 

For the Three Months Ended December 31,

 

 

For the Nine Months Ended December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(dollars in thousands)

 

Operating Earnings (Loss) -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

54,180

 

 

$

47,197

 

 

$

156,827

 

 

$

142,078

 

Concrete and Aggregates

 

 

3,334

 

 

 

1,037

 

 

 

15,023

 

 

 

10,621

 

Gypsum Wallboard

 

 

38,484

 

 

 

43,543

 

 

 

114,872

 

 

 

139,694

 

Paperboard

 

 

9,021

 

 

 

7,475

 

 

 

29,060

 

 

 

26,078

 

Oil and Gas Proppants

 

 

(6,805

)

 

 

(9,324

)

 

 

(15,944

)

 

 

(19,554

)

Sub-Total

 

 

98,214

 

 

 

89,928

 

 

 

299,838

 

 

 

298,917

 

Corporate General and Administrative Expense

 

 

(13,794

)

 

 

(9,408

)

 

 

(48,506

)

 

 

(27,333

)

Impairment Losses

 

 

(224,267

)

 

 

 

 

 

(224,267

)

 

 

 

Litigation Settlements and Losses

 

 

 

 

 

 

 

 

 

 

 

(1,800

)

Other Non-Operating Income

 

 

825

 

 

 

1,292

 

 

 

1,967

 

 

 

2,291

 

Earnings (Loss) Before Interest and Income Taxes

 

 

(139,022

)

 

 

81,812

 

 

 

29,032

 

 

 

272,075

 

Interest Expense, net

 

 

(9,543

)

 

 

(7,294

)

 

 

(28,526

)

 

 

(20,743

)

Earnings (Loss) Before Income Taxes

 

$

(148,565

)

 

$

74,518

 

 

$

506

 

 

$

251,332

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

$

43,480

 

 

$

37,690

 

 

$

124,338

 

 

$

113,147

 

Joint Ventures

 

 

10,700

 

 

 

9,507

 

 

 

32,489

 

 

 

28,931

 

 

 

$

54,180

 

 

$

47,197

 

 

$

156,827

 

 

$

142,078

 

Capital Expenditures -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

7,379

 

 

$

17,691

 

 

$

26,125

 

 

$

51,524

 

Concrete and Aggregates

 

 

3,233

 

 

 

2,263

 

 

 

9,324

 

 

 

4,786

 

Gypsum Wallboard

 

 

273

 

 

 

2,054

 

 

 

8,647

 

 

 

8,533

 

Paperboard

 

 

12,885

 

 

 

1,486

 

 

 

42,484

 

 

 

7,896

 

Oil and Gas Proppants

 

 

86

 

 

 

5,818

 

 

 

151

 

 

 

48,684

 

Corporate and Other

 

 

 

 

 

3,690

 

 

 

 

 

 

5,023

 

 

 

$

23,856

 

 

$

33,002

 

 

$

86,731

 

 

$

126,446

 

Depreciation, Depletion, and Amortization -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

14,189

 

 

$

13,242

 

 

$

42,275

 

 

$

38,909

 

Concrete and Aggregates

 

 

3,105

 

 

 

2,049

 

 

 

8,050

 

 

 

6,154

 

Gypsum Wallboard

 

 

5,050

 

 

 

4,978

 

 

 

15,149

 

 

 

15,009

 

Paperboard

 

 

2,244

 

 

 

2,150

 

 

 

6,610

 

 

 

6,387

 

Oil and Gas Proppants

 

 

3,445

 

 

 

6,964

 

 

 

11,087

 

 

 

24,403

 

Corporate and Other

 

 

578

 

 

 

402

 

 

 

1,773

 

 

 

1,099

 

 

 

$

28,611

 

 

$

29,785

 

 

$

84,944

 

 

$

91,961

 

 

 

 

 

December 31,

 

 

March 31,

 

 

 

2019

 

 

2019

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

 

 

Cement

 

$

1,282,081

 

 

$

1,289,468

 

Concrete and Aggregates

 

 

139,769

 

 

 

95,084

 

Gypsum Wallboard

 

 

367,833

 

 

 

372,206

 

Paperboard

 

 

169,508

 

 

 

138,614

 

Oil and Gas Proppants

 

 

18,029

 

 

 

236,357

 

Corporate and Other, net

 

 

153,005

 

 

 

37,434

 

 

 

$

2,130,225

 

 

$

2,169,163

 

The Capital Expenditures for the nine months ended December 31, 2019 disclosed above differ from the Capital Expenditures on the Unaudited Consolidated Statement of Cash Flows. The Capital Expenditures disclosed above includes $2.7 million of capital expenditures that were accrued at December 31, 2019 and therefore is not included in the Statement of Cash Flows. See Footnote (D) for more information.

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, Depletion and Amortization, and segment Selling, General and Administrative expenses. We account for intersegment sales at market prices. Corporate and Other, net consists 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, 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:

 

 

 

December 31,

 

 

March 31,

 

 

 

2019

 

 

2019

 

 

 

(dollars in thousands)

 

Cement

 

$

74,214

 

 

$

74,214

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

Concrete and Aggregates

 

 

1,639

 

 

 

 

 

 

$

200,009

 

 

$

198,370

 

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,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(dollars in thousands)

 

Revenue

 

$

56,767

 

 

$

51,411

 

 

$

172,385

 

 

$

158,922

 

Gross Margin

 

$

22,749

 

 

$

20,178

 

 

$

68,806

 

 

$

62,196

 

Earnings Before Income Taxes

 

$

21,402

 

 

$

19,013

 

 

$

64,979

 

 

$

57,862

 

 

 

 

December 31,

 

 

March 31,

 

 

 

2019

 

 

2019

 

 

 

(dollars in thousands)

 

Current Assets

 

$

80,108

 

 

$

71,688

 

Non-Current Assets

 

$

88,242

 

 

$

81,007

 

Current Liabilities

 

$

19,190

 

 

$

19,309