Centex Construction Products Reports Record Third Quarter and Nine Month Results.DALLAS--(BUSINESS WIRE)--Jan. 23, 1997--Centex Construction Products, Inc. (CXP CXP Common IFF Digital Transponder Program (US Navy shipboard and aircraft Identification Friend or Foe Transponder) ) today announced record results for the quarter ended December December: see month. 31, 1996, the third quarter of its 1997 fiscal year, and for the first nine months of fiscal 1997. A Dallas-based New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. company (symbol: CXP), the company has operations in Cement cement, binding material used in construction and engineering, often called hydraulic cement, typically made by heating a mixture of limestone and clay until it almost fuses and then grinding it to a fine powder. , Gypsum gypsum (jĭp`səm), mineral composed of calcium sulfate (calcium, sulfur, and oxygen) with two molecules of water, CaSO4·2H2O. It is the most common sulfate mineral, occurring in many places in a variety of forms. Wallboard, and Concrete and Aggregates. CXP is 51 percent owned by Centex Centex (NYSE: CTX) began trading publicly in 1969. Since the company’s founding in 1950 as a Dallas-based residential construction company, it has evolved into a company whose principal operations are focused on residential and commercial construction and related Corporation. Benefitting from significantly higher Gypsum Wallboard prices, CXP's net earnings rose 13 percent for this year's third quarter to $11,222,000 from $9,958,000 for the same quarter in fiscal 1996. Earnings per share of $0.51 for the current quarter were 18 percent higher than $0.43 for the third quarter last year. Total revenues for the third quarter this year were $59,117,000, up 7 percent from $55,429,000 for the same quarter a year ago. For the nine months ended December 31, 1996, CXP's net earnings increased 21 percent to an all time high $34,099,000 from $28,288,000 for the same period a year ago. Earnings per share for the period this year were $1.54, 25 percent higher than $1.23 per share for the same period last year. Revenues for the nine months rose 5 percent to $185,713,000 from $177,016,000 for the same period in the prior fiscal year. For both the quarter and nine months, earnings per share increased a higher percentage than net earnings due to fewer average shares outstanding in the current periods. Cement CXP said Cement revenues for the quarter this year totaled $32.2 million, 2 percent higher than $31.7 million for the same quarter last year. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before from Cement were $10.5 million for the quarter this year, down 2 percent from earnings of $10.7 million for the same quarter in fiscal 1996. Although Cement sales prices were higher for this year's quarter, Cement sales volume was lower due to less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. weather conditions than last year. CXP's average net Cement sales price for the quarter was $63.14 per ton, a 6 percent increase over $59.66 per ton for the same quarter a year ago. Cement sales volume for the current quarter totaled 510,000 tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. , 4 percent lower than Cement sales volume for the same quarter a year ago. For the current nine months, revenues from Cement were $108.8 million, 5 percent higher than $103.7 million for the same period a year ago. Operating earnings from Cement were $34.7 million, up 13 percent from $30.8 million for the similar period last year. Increased sales prices only partially offset by higher production costs accounted for most of the improvement. Cement sales volume of 1.7 million tons for the nine months this year was slightly lower than sales volume for the same period in fiscal 1996. All of CXP's Cement plants continue to operate at capacity and their current inventories of clinker clink·er n. 1. The incombustible residue, fused into an irregular lump, that remains after the combustion of coal. 2. A partially vitrified brick or a mass of bricks fused together. 3. and cement remain below normal levels. Gypsum Wallboard Gypsum Wallboard revenues for the quarter totaled $18.1 million, a 27 percent improvement over $14.2 million for the same quarter last year. Operating earnings from Gypsum Wallboard were $5.5 million for the quarter, up 89 percent over $2.9 million for the same quarter a year ago. For the current nine months, Gypsum Wallboard revenues were $49.8 million, a 15 percent increase over $43.2 million for the same period a year ago. Operating earnings from Gypsum Wallboard totaled $13.5 million for the nine months this year, up 60 percent over $8.5 million for the similar period in fiscal 1996. Higher sales volume and margins accounted for the improvement for both the quarter and the nine months. Gypsum Wallboard sales volume of 170 million square feet (MMSF) for this year's quarter was 4 percent greater than 164 MMSF sold during the same quarter last year. Positively impacted by strong home construction activity and record product consumption, the gypsum wallboard average net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight price for the current quarter rose 23 percent to $106.45 per thousand board feet (MSF MSF Manufacturing, Science, and Finance (Union) ) from $86.70 per MSF for the same quarter a year ago. For the nine month period, Gypsum Wallboard sales volume increased 6 percent to 516 MMSF from 486 MMSF for the same period last year. The average net sales price for the current period was $96.50 per MSF, 9 percent higher than $88.85 for the nine months last year. Like Cement, CXP's Gypsum Wallboard facilities continue to operate at capacity with low product inventories. Concrete and Aggregates Revenues from CXP's Concrete and Aggregates segment were $9.1 million for the quarter this year, a 6 percent decline from $9.7 million for the same quarter a year ago. Operating earnings of $1.1 million for the quarter were 31 percent less than $1.5 million for the same quarter last year, due to lower Concrete and Aggregates sales volumes and margins. Concrete sales volume for this year's quarter was 147,000 cubic yards, 9 percent less than the same quarter last year. The average Concrete net sales price of $46.86 per cubic yard for the quarter was 2 percent higher than $46.04 per cubic yard for the same quarter a year ago. Aggregate sales volume of $549,000 tons for the quarter was 2 percent less than volume of 562,000 tons for the same quarter last year. The decline in sales volume was due to the sale of CXP's North Texas sand and gravel gravel, particles of rock, i.e., stones and pebbles, usually round in form and intermediate in size between sand grains and boulders. Gravel is composed of various kinds of rock, the most common constituent being the mineral quartz. operation early in the third quarter of fiscal 1996. Product mix resulted in a 2 percent decline in average Aggregates pricing to $4.02 per ton for this year's quarter versus $4.10 per ton for the same quarter a year ago. Concrete and Aggregates revenues for the nine months were $29.3 million, 6 percent below $31.0 million for the same period a year ago. Operating earnings from Concrete and Aggregates were $4.2 million for the current nine months, 10 percent below the same period last year. Lower Aggregates sales volume and higher Concrete production cost resulted in the net earnings decline. Outlook At December 31, 1996, CXP was virtually debt-free, had $54 million in cash and $233 million of equity, putting the company in an excellent position for growth opportunities. On December 5, 1996, CXP signed a definitive agreement to purchase the gypsum wallboard facilities of Eagle-Gypsum Products located near Vail, Colorado "Vail" redirects here. For the community in Arizona, see Vail, Arizona. For the city in Iowa, see Vail, Iowa. Vail, Colorado is a town in Eagle County, Colorado, USA. According to 2005 Census Bureau estimates, the population of the city is 4,589. . Subject to the satisfaction of customary conditions, closing is anticipated in February February: see month. 1997. Upon completion, this acquisition will increase CXP's Gypsum Wallboard capacity 60 percent to 1.1 billion square feet annually from its current annual capacity of 700 million square feet. CXP will continue to explore other growth opportunities that will enable it to reach its strategic goals. CXP said it expects the current level of high demand for its Cement, Gypsum Wallboard and Concrete and Aggregates products to continue to support strong pricing in its markets for the remainder of the fiscal year. As a result, the Company expects to report another record performance for fiscal 1997. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provision. This quarterly report contains forward looking statements that involve risks and uncertainties including but not limited to shortages of raw materials or labor, strikes, an increase in interest rates, recessions and all others detailed in the company's recent SEC reports on Forms 10-K and 10-Q. CXP's actual future results could differ, perhaps materially, from those discussed here. -0-
Centex Construction Products, Inc.
Summary of Consolidated Earnings
(unaudited)
(dollar amounts in thousands, except per share data)
Quarter Ended
December 31,
-----------------------------------
1996 1995 Change
----------- ----------- ------
Revenues $ 59,117 $ 55,429 +7%
Earnings Before Income Taxes $ 17,291 $ 15,344 +13%
Net Earnings $ 11,222 $ 9,958 +13%
Earnings Per Share $ 0.51 $ 0.43 +18%
Average Shares Outstanding 21,996,836 22,972,504
Nine Months Ended
December 31,
-----------------------------------
1996 1995 Change
----------- ----------- ------
Revenues $ 185,713 $ 177,016 +5%
Earnings Before Income Taxes $ 52,541 $ 43,587 +21%
Net Earnings $ 34,099 $ 28,288 +21%
Earnings Per Share $ 1.54 $ 1.23 +25%
Average Shares Outstanding 22,202,130 22,966,805
Centex Construction Products, Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
Quarter Ended
December 31,
----------------------------------
1996 1995 Change
----------- ----------- ------
Revenues
Cement $ 32,228 $ 31,740 +2%
55% 57%
Wallboard 18,103 14,231 +27%
31% 26%
Concrete & Aggregates 9,123 9,737 -6%
15% 18%
Others, Net 843 817 +3%
1% 1%
Less Inter-Segment Sales (1,180) (1,096)
(2)% (2)%
----------- -----------
Total $ 59,117 $ 55,429 +7%
100% 100%
=========== ===========
Operating Earnings
Cement $ 10,466 $ 10,703 -2%
59% 67%
Wallboard 5,467 2,899 +89%
31% 18%
Concrete & Aggregates 1,052 1,514 -31%
6% 10%
Others, Net 843 817 +3%
4% 5%
----------- -----------
Total Operating Earnings 17,828 15,933 +12%
100% 100%
Corporate General Expenses (1,073) (614)
Interest Income, Net 536 25
----------- -----------
Earnings Before Income Taxes $ 17,291 $ 15,344 +13%
=========== ===========
Centex Construction Products, Inc.
Revenues and Earnings by Lines of Business
(dollars in thousands)
Nine Months Ended
December 31,
----------------------------------
1996 1995 Change
----------- ----------- ------
Revenues
Cement $ 108,844 $ 103,739 +13%
58% 59%
Wallboard 49,806 43,195 +15%
27% 24%
Concrete & Aggregates 29,289 31,032 -6%
16% 18%
Others, Net 1,573 2,247 -30%
1% 1%
Less Inter-Segment Sales (3,799) (3,197)
(2)% (2)%
----------- -----------
Total $ 185,713 $ 177,016 +5%
100% 100%
=========== ===========
Operating Earnings
Cement $ 34,678 $ 30,819 +13%
64% 67%
Wallboard 13,547 8,455 +60%
25% 18%
Concrete & Aggregates 4,221 4,687 -10%
8% 10%
Others, Net 1,573 2,247 -30%
3% 5%
----------- -----------
Total Operating Earnings 54,019 46,208 +17%
100% 100%
Corporate General Expenses (2,438) (1,875)
Interest Income (Expense), Net 960 (746)
----------- -----------
Earnings Before Income Taxes $ 52,541 $ 43,587 +21%
=========== ===========
Centex Construction Products, Inc.
Sales Volume and Net Sales Prices
Sales Volume
-------------------------------------
Quarter Ended Nine Months Ended
December 31, December 31,
-------------- -----------------
1996 1995 1996 1995
------ ------ ------ ------
Cement (M Tons) 510 532 1,712 1,720
Wallboard (MMSF) 170 164 516 486
Concrete (M Cubic Yards) 147 161 483 466
Aggregates (M Tons) 549 562 1,623 2,379
Average Net Sales Price
-------------------------------------
Quarter Ended Nine Months Ended
December 31, December 31,
-------------- -----------------
1996 1995 1996 1995
------ ------ ------ ------
Cement (Ton) $ 63.14 $59.66 $63.56 $60.32
Wallboard (MSF) $106.45 $86.70 $96.50 $88.85
Concrete (Cubic Yard) $ 46.86 $46.04 $46.67 $45.83
Aggregates (Ton) $ 4.02 $ 4.10 $ 4.15 $ 4.07
CONTACT: Centex Construction Products O.G. (Greg GREG Great Egg Harbor National Scenic and Recreational River (US National Park Service) ) Dagnan, 214/559-6514 (President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ) Arthur Arthur, king of Britain: see Arthurian legend. Arthur king and hero of Scotland, Wales, and England. [Arthurian Legend: Parrinder, 28] See : Heroism R. Zunker Jr., 214/559-6514 (Senior VP and CFO See Chief Financial Officer. ) |
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