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FINANCIAL STATEMENTS FOR GUARANTORS OF THE 4.500% SENIOR UNSECURED NOTES
9 Months Ended
Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
FINANCIAL STATEMENTS FOR GUARANTORS OF THE 4.500% SENIOR UNSECURED NOTES

(T) FINANCIAL STATEMENTS FOR GUARANTORS OF THE 4.500% SENIOR UNSECURED NOTES

On August 2, 2016, the Company completed a public offering of its Senior Unsecured Notes. The Senior Unsecured Notes are senior unsecured obligations of the Company and were offered under the Company’s existing shelf registration statement filed with the Securities and Exchange Commission.

The Senior Unsecured Notes are guaranteed by all of the Company’s wholly owned subsidiaries, and all guarantees are full and unconditional, and joint and several. The following unaudited condensed consolidating financial statements present separately the Earnings and Comprehensive Earnings, financial position and Cash Flows of the parent issuer (Eagle Materials Inc.) and the guarantors (all wholly owned subsidiaries of Eagle Materials Inc.) on a combined basis with eliminating entries (dollars in thousands).  

 

Condensed Consolidating Statement of Earnings and

Comprehensive Earnings For the Three Months Ended December 31, 2019

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Revenue

 

$

 

 

$

350,249

 

 

$

 

 

$

350,249

 

Cost of Goods Sold

 

 

 

 

 

262,735

 

 

 

 

 

 

262,735

 

Gross Profit

 

 

 

 

 

87,514

 

 

 

 

 

 

87,514

 

Equity in Earnings of Unconsolidated Joint Venture

 

 

10,700

 

 

 

10,700

 

 

 

(10,700

)

 

 

10,700

 

Equity in Earnings of Subsidiaries

 

 

(88,687

)

 

 

 

 

 

88,687

 

 

 

 

Corporate General and Administrative Expenses

 

 

(13,359

)

 

 

(435

)

 

 

 

 

 

(13,794

)

Impairment Losses

 

 

 

 

 

(224,267

)

 

 

 

 

 

(224,267

)

Other Non-Operating Income

 

 

118

 

 

 

707

 

 

 

 

 

 

825

 

Interest Expense, net

 

 

(9,532

)

 

 

(11

)

 

 

 

 

 

(9,543

)

Earnings before Income Taxes

 

 

(100,760

)

 

 

(125,792

)

 

 

77,987

 

 

 

(148,565

)

Income Taxes

 

 

(13,872

)

 

 

47,805

 

 

 

 

 

 

33,933

 

Net Earnings

 

$

(114,632

)

 

$

(77,987

)

 

$

77,987

 

 

$

(114,632

)

Net Earnings

 

$

(114,632

)

 

$

(77,987

)

 

$

77,987

 

 

$

(114,632

)

Net Actuarial Change in Benefit Plans, net of tax

 

 

33

 

 

 

33

 

 

 

(33

)

 

 

33

 

Comprehensive Earnings

 

$

(114,599

)

 

$

(77,954

)

 

$

77,954

 

 

$

(114,599

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Earnings and

Comprehensive Earnings For the Three Months Ended December 31, 2018

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Revenue

 

$

 

 

$

333,285

 

 

$

 

 

$

333,285

 

Cost of Goods Sold

 

 

 

 

 

252,864

 

 

 

 

 

 

252,864

 

Gross Profit

 

 

 

 

 

80,421

 

 

 

 

 

 

80,421

 

Equity in Earnings of Unconsolidated Joint Venture

 

 

9,507

 

 

 

9,507

 

 

 

(9,507

)

 

 

9,507

 

Equity in Earnings of Subsidiaries

 

 

61,946

 

 

 

 

 

 

(61,946

)

 

 

 

Corporate General and Administrative Expenses

 

 

(8,863

)

 

 

(545

)

 

 

 

 

 

(9,408

)

Other Non-Operating Income

 

 

(43

)

 

 

1,335

 

 

 

 

 

 

1,292

 

Interest Expense, net

 

 

(7,282

)

 

 

(12

)

 

 

 

 

 

(7,294

)

Earnings before Income Taxes

 

 

55,265

 

 

 

90,706

 

 

 

(71,453

)

 

 

74,518

 

Income Taxes

 

 

2,450

 

 

 

(19,253

)

 

 

 

 

 

(16,803

)

Net Earnings

 

$

57,715

 

 

$

71,453

 

 

$

(71,453

)

 

$

57,715

 

Net Earnings

 

$

57,715

 

 

$

71,453

 

 

$

(71,453

)

 

 

57,715

 

Net Actuarial Change in Benefit Plans, net of tax

 

 

56

 

 

 

56

 

 

 

(56

)

 

 

56

 

Comprehensive Earnings

 

$

57,771

 

 

$

71,509

 

 

$

(71,509

)

 

$

57,771

 

 

Condensed Consolidating Statement of Earnings and

Comprehensive Earnings For the Nine Months Ended December 31, 2019

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Revenue

 

$

 

 

$

1,135,372

 

 

$

 

 

$

1,135,372

 

Cost of Goods Sold

 

 

 

 

 

868,023

 

 

 

 

 

 

868,023

 

Gross Profit

 

 

 

 

 

267,349

 

 

 

 

 

 

267,349

 

Equity in Earnings of Unconsolidated Joint Venture

 

 

32,489

 

 

 

32,489

 

 

 

(32,489

)

 

 

32,489

 

Equity in Earnings of Subsidiaries

 

 

47,036

 

 

 

 

 

 

(47,036

)

 

 

 

Corporate General and Administrative Expenses

 

 

(47,285

)

 

 

(1,221

)

 

 

 

 

 

(48,506

)

Impairment Losses

 

 

 

 

 

(224,267

)

 

 

 

 

 

(224,267

)

Other Non-Operating Income

 

 

525

 

 

 

1,442

 

 

 

 

 

 

1,967

 

Interest Expense, net

 

 

(28,490

)

 

 

(36

)

 

 

 

 

 

(28,526

)

Earnings before Income Taxes

 

 

4,275

 

 

 

75,756

 

 

 

(79,525

)

 

 

506

 

Income Taxes

 

 

(5,810

)

 

 

3,769

 

 

 

 

 

 

(2,041

)

Net Earnings

 

$

(1,535

)

 

$

79,525

 

 

$

(79,525

)

 

$

(1,535

)

Net Earnings

 

$

(1,535

)

 

$

79,525

 

 

$

(79,525

)

 

$

(1,535

)

Net Actuarial Change in Benefit Plans, net of tax

 

 

101

 

 

 

101

 

 

 

(101

)

 

 

101

 

Comprehensive Earnings

 

$

(1,434

)

 

$

79,626

 

 

$

(79,626

)

 

$

(1,434

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Earnings and

Comprehensive Earnings For the Nine Months Ended December 31, 2018

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Revenue

 

$

 

 

$

1,108,540

 

 

$

 

 

$

1,108,540

 

Cost of Goods Sold

 

 

 

 

 

838,554

 

 

 

 

 

 

838,554

 

Gross Profit

 

 

 

 

 

269,986

 

 

 

 

 

 

269,986

 

Equity in Earnings of Unconsolidated Joint Venture

 

 

28,931

 

 

 

28,931

 

 

 

(28,931

)

 

 

28,931

 

Equity in Earnings of Subsidiaries

 

 

204,234

 

 

 

 

 

 

(204,234

)

 

 

 

Corporate General and Administrative Expenses

 

 

(24,682

)

 

 

(2,651

)

 

 

 

 

 

(27,333

)

Legal Settlements

 

 

 

 

 

(1,800

)

 

 

 

 

 

(1,800

)

Other Non-Operating Income

 

 

(262

)

 

 

2,553

 

 

 

 

 

 

2,291

 

Interest Expense, net

 

 

(20,706

)

 

 

(37

)

 

 

 

 

 

(20,743

)

Earnings before Income Taxes

 

 

187,515

 

 

 

296,982

 

 

 

(233,165

)

 

 

251,332

 

Income Taxes

 

 

9,142

 

 

 

(63,817

)

 

 

 

 

 

(54,675

)

Net Earnings

 

$

196,657

 

 

$

233,165

 

 

$

(233,165

)

 

$

196,657

 

Net Earnings

 

$

196,657

 

 

$

233,165

 

 

$

(233,165

)

 

 

196,657

 

Net Actuarial Change in Benefit Plans, net of tax

 

 

168

 

 

 

168

 

 

 

(168

)

 

 

168

 

Comprehensive Earnings

 

$

196,825

 

 

$

233,333

 

 

$

(233,333

)

 

$

196,825

 

 

Condensed Consolidating Balance Sheet At December 31, 2019

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

124,084

 

 

$

2,171

 

 

$

 

 

$

126,255

 

Accounts and Notes Receivable

 

 

439

 

 

 

139,844

 

 

 

 

 

 

140,283

 

Inventories

 

 

 

 

 

234,264

 

 

 

 

 

 

234,264

 

Prepaid and Other Current Assets

 

 

1,371

 

 

 

5,626

 

 

 

 

 

 

6,997

 

Total Current Assets

 

 

125,894

 

 

 

381,905

 

 

 

 

 

 

507,799

 

Property, Plant, and Equipment, net

 

 

6,884

 

 

 

1,262,849

 

 

 

 

 

 

1,269,733

 

Notes Receivable

 

 

 

 

 

9,192

 

 

 

 

 

 

9,192

 

Investment in Joint Venture

 

 

70

 

 

 

71,792

 

 

 

 

 

 

71,862

 

Investments in Subsidiaries and Receivables from Affiliates

 

 

2,074,575

 

 

 

322,106

 

 

 

(2,396,681

)

 

 

 

Operating Lease Right-of-Use Assets

 

 

9,975

 

 

 

19,371

 

 

 

 

 

 

29,346

 

Goodwill and Intangible Assets, net

 

 

 

 

 

230,099

 

 

 

 

 

 

230,099

 

Other Assets

 

 

5,844

 

 

 

6,350

 

 

 

 

 

 

12,194

 

 

 

$

2,223,242

 

 

$

2,303,664

 

 

$

(2,396,681

)

 

$

2,130,225

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Payable

 

$

6,572

 

 

$

58,463

 

 

$

 

 

$

65,035

 

Accrued Liabilities

 

 

27,114

 

 

 

40,556

 

 

 

 

 

 

67,670

 

Income Taxes Payable

 

 

20,020

 

 

 

 

 

 

 

 

 

20,020

 

Operating Lease Liabilities

 

 

1,162

 

 

 

9,439

 

 

 

 

 

 

10,601

 

Total Current Liabilities

 

 

54,868

 

 

 

108,458

 

 

 

 

 

 

163,326

 

Long-term Debt

 

 

930,594

 

 

 

 

 

 

 

 

 

930,594

 

Noncurrent Lease Liabilities

 

 

12,538

 

 

 

39,401

 

 

 

 

 

 

51,939

 

Other Long-term Liabilities

 

 

 

 

 

36,648

 

 

 

 

 

 

36,648

 

Payables to Affiliates

 

 

322,106

 

 

 

6,010,080

 

 

 

(6,332,186

)

 

 

 

Deferred Income Taxes

 

 

5,809

 

 

 

44,582

 

 

 

 

 

 

50,391

 

Total Liabilities

 

 

1,325,915

 

 

 

6,239,169

 

 

 

(6,332,186

)

 

 

1,232,898

 

Total Stockholders’ Equity

 

 

897,327

 

 

 

(3,935,505

)

 

 

3,935,505

 

 

 

897,327

 

 

 

$

2,223,242

 

 

$

2,303,664

 

 

$

(2,396,681

)

 

$

2,130,225

 

 

Condensed Consolidating Balance Sheet At March 31, 2019

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

5,779

 

 

$

2,822

 

 

$

 

 

$

8,601

 

Accounts and Notes Receivable

 

 

437

 

 

 

128,285

 

 

 

 

 

 

128,722

 

Inventories

 

 

 

 

 

275,194

 

 

 

 

 

 

275,194

 

Income Tax Receivables

 

 

5,480

 

 

 

 

 

 

 

 

 

5,480

 

Prepaid and Other Current Assets

 

 

1,472

 

 

 

8,152

 

 

 

 

 

 

9,624

 

Total Current Assets

 

 

13,168

 

 

 

414,453

 

 

 

 

 

 

427,621

 

Property, Plant, and Equipment, net

 

 

7,756

 

 

 

1,419,183

 

 

 

 

 

 

1,426,939

 

Notes Receivable

 

 

 

 

 

2,898

 

 

 

 

 

 

2,898

 

Investment in Joint Venture

 

 

70

 

 

 

64,803

 

 

 

 

 

 

64,873

 

Investments in Subsidiaries and Receivables from Affiliates

 

 

2,322,334

 

 

 

406,726

 

 

 

(2,729,060

)

 

 

 

Goodwill and Intangible Assets, net

 

 

 

 

 

229,115

 

 

 

 

 

 

229,115

 

Other Assets

 

 

4,571

 

 

 

13,146

 

 

 

 

 

 

17,717

 

 

 

$

2,347,899

 

 

$

2,550,324

 

 

$

(2,729,060

)

 

$

2,169,163

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Payable

 

$

5,520

 

 

$

75,364

 

 

$

 

 

$

80,884

 

Accrued Liabilities

 

 

22,470

 

 

 

39,479

 

 

 

 

 

 

61,949

 

Current Portion of Long-term Debt

 

 

36,500

 

 

 

 

 

 

 

 

 

36,500

 

Total Current Liabilities

 

 

64,490

 

 

 

114,843

 

 

 

 

 

 

179,333

 

Long-term Debt

 

 

655,092

 

 

 

 

 

 

 

 

 

655,092

 

Other Long-term Liabilities

 

 

3,303

 

 

 

31,189

 

 

 

 

 

 

34,492

 

Payables to Affiliates

 

 

406,726

 

 

 

5,730,093

 

 

 

(6,136,819

)

 

 

 

Deferred Income Taxes

 

 

8,801

 

 

 

81,958

 

 

 

 

 

 

90,759

 

Total Liabilities

 

 

1,138,412

 

 

 

5,958,083

 

 

 

(6,136,819

)

 

 

959,676

 

Total Stockholders’ Equity

 

 

1,209,487

 

 

 

(3,407,759

)

 

 

3,407,759

 

 

 

1,209,487

 

 

 

$

2,347,899

 

 

$

2,550,324

 

 

$

(2,729,060

)

 

$

2,169,163

 

 

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended December 31, 2019

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Provided by (Used in) Operating Activities

 

$

(32,804

)

 

$

353,423

 

 

$

 

 

$

320,619

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to Property, Plant, and Equipment

 

 

 

 

 

(84,056

)

 

 

 

 

 

(84,056

)

Acquisition Spending

 

 

 

 

 

(30,424

)

 

 

 

 

 

(30,424

)

Net Cash Used in Investing Activities

 

 

 

 

 

(114,480

)

 

 

 

 

 

(114,480

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in Credit Facility

 

 

275,000

 

 

 

 

 

 

 

 

 

275,000

 

Repayment of Private Placement Senior Unsecured Notes

 

 

(36,500

)

 

 

 

 

 

 

 

 

 

 

(36,500

)

Dividends Paid to Stockholders

 

 

(13,131

)

 

 

 

 

 

 

 

 

(13,131

)

Purchase and Retirement of Common Stock

 

 

(313,887

)

 

 

 

 

 

 

 

 

(313,887

)

Proceeds from Stock Option Exercises

 

 

2,996

 

 

 

 

 

 

 

 

 

2,996

 

Shares Redeemed to Settle Employee Taxes on

   Stock Compensation

 

 

(2,963

)

 

 

 

 

 

 

 

 

(2,963

)

Intra-entity Activity, net

 

 

239,594

 

 

 

(239,594

)

 

 

 

 

 

 

Net Cash Provided by (Used in) Financing Activities

 

 

151,109

 

 

 

(239,594

)

 

 

 

 

 

(88,485

)

NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 

 

118,305

 

 

 

(651

)

 

 

 

 

 

117,654

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD

 

 

5,779

 

 

 

2,822

 

 

 

 

 

 

8,601

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

 

$

124,084

 

 

$

2,171

 

 

$

 

 

$

126,255

 

 

Condensed Consolidating Statement of Cash Flows

For the Nine Months Ended December 31, 2018

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Provided by (Used in) Operating Activities

 

$

(68,752

)

 

$

362,852

 

 

$

 

 

$

294,100

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, Plant, and Equipment Additions

 

 

(5,023

)

 

 

(121,423

)

 

 

 

 

 

(126,446

)

Proceeds from Sale of Property, Plant, and Equipment

 

 

 

 

 

2,281

 

 

 

 

 

 

 

2,281

 

Net Cash Used in Investing Activities

 

 

(5,023

)

 

 

(119,142

)

 

 

 

 

 

(124,165

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of Credit Facility

 

 

5,000

 

 

 

 

 

 

 

 

 

5,000

 

Dividends Paid to Stockholders

 

 

(14,293

)

 

 

 

 

 

 

 

 

(14,293

)

Purchase and Retirement of Common Stock

 

 

(191,800

)

 

 

 

 

 

 

 

 

(191,800

)

Proceeds from Stock Option Exercises

 

 

1,992

 

 

 

 

 

 

 

 

 

1,992

 

Shares Redeemed to Settle Employee Taxes on

   Stock Compensation

 

 

(1,842

)

 

 

 

 

 

 

 

 

(1,842

)

Intra-entity Activity, net

 

 

245,683

 

 

 

(245,683

)

 

 

 

 

 

 

Net Cash Provided by (Used in) Financing Activities

 

 

44,740

 

 

 

(245,683

)

 

 

 

 

 

(200,943

)

NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 

 

(29,035

)

 

 

(1,973

)

 

 

 

 

 

(31,008

)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD

 

 

44,537

 

 

 

3,531

 

 

 

 

 

 

48,068

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

 

$

15,502

 

 

$

1,558

 

 

$

 

 

$

17,060