Short answer
Eagle Materials Inc (EXP) filed its fiscal 2019 10-K annual report with the SEC on May 23, 2019. It reported revenue of $1.4B (+0.5% year over year) and net income of $69M.
- Top risk flagged: EPA ozone standards: 10 of 16 operating states contain 2015 NAAQS nonattainment areas, potentially requiring significant compliance capital
FY2019 key financial metrics · XBRL
- Revenue
- $1.4B
- +0.5% YoY
- Net income
- $69M
- −73.2% YoY
- Operating margin
- 26.2%
- −1.4 pp YoY
- Gross margin
- 23.4%
- −1.0 pp YoY
- EPS (diluted)
- $1.47
- −72.2% YoY
- ROE
- 5.7%
- −12.4 pp YoY
- Operating cash flow
- $350M
- +3.7% YoY
Source: XBRL data from the Eagle Materials Inc (EXP) FY2019 10-K on SEC EDGAR. USD.
Eagle Materials Inc FY2019 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- U.S. supplier of commodity construction materials and frac sand, organized across Heavy Materials, Light Materials, and Oil and Gas Proppants
- New $70.0 million recycled-paperboard mill expansion, expected to add approximately 70,000 tons of capacity by late spring 2020
- Strategic portfolio review announced April 18, 2019, including potential business separation, third-party transactions, or other alternatives
- Approximately 2,300 employees, including approximately 800 under collective bargaining agreements
- Oil and Gas Proppants impairment: $220.3 million loss following declining prices, demand, and operating results
Management Discussion & Analysis
- Revenue $1,393.2M, up $6.7M YoY, driven by higher pricing of $4.5M
- Gross margin 23% vs 24%; net earnings $68.9M vs $256.6M
- Best segment: Gypsum Wallboard revenue $532.7M, operating earnings $180.8M, margin 34% vs 32%
- Worst segment: Oil and Gas Proppants revenue $83.0M, operating loss $28.7M, plus $220.3M impairment
- Operating cash flow $350.3M; capex $168.9M; buybacks $272.0M; dividends $18.9M
- Outlook: calendar 2019 demand positive; fiscal 2020 capex guidance $140.0M-$155.0M, while frac sand weakness may trigger further impairments
Risk Factors
- EPA ozone standards: 10 of 16 operating states contain 2015 NAAQS nonattainment areas, potentially requiring significant compliance capital
- Oil and gas exposure: frac-sand demand tied to volatile drilling activity, including continued lower-cost in-basin sand in Permian and Eagle Ford
- Synthetic gypsum vulnerability: third-party suppliers may cease or reduce by-product production, forcing costly or unavailable alternatives
- Market disruption: ceramic proppants, improved proppant placement, or alternatives to hydraulic fracturing could reduce frac-sand demand
- Debt structure: covenant breaches could accelerate indebtedness and terminate further credit commitments
Generated from the filing text; verify against the original. How to read a 10-K
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