Eagle Materials Inc. (NYSE:EXP) Q1 2021 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:30 am ET


Eagle Materials Inc. (NYSE:EXP) Q1 2021 Earnings Conference Call - Final Transcript


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Good morning. My name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Eagle Materials' First Quarter Fiscal Year 2021 Earnings Conference Call. [Operator Instructions] Thank you.

I would now like to turn the call over to Mr. Michael Haack, President and CEO. Please go ahead, sir.

Michael R. Haack

Thank you, Lisa. Good morning. Welcome to Eagle Materials conference call for our first fiscal quarter of 2021. This is Michael Haack and joining me today are Craig Kesler, our Chief Financial Officer; and Bob Stewart, our Executive Vice President of Strategy, Corporate Development and Communications. We are glad you could be with us today.

There will be a slide presentation made in connection with this call. To access it, please go to www.eaglematerials.com and click on the link to the webcast. While you're accessing the slides, please note that the first slide covers our cautionary disclosure regarding forward-looking statements made during the call. These statements are subject to risks and uncertainties that could cause results to differ from those discussed during the call. For further information, please refer to this disclosure, which is also included at the end of our press release.

Let me start my comments today with a simple thank you to our thousands of team members who have stepped up during these unprecedented times. The world is unanimous about the first half of calendar 2020 being extremely challenging to navigate, especially with regard to the pandemic and its effect on our communities. These unique circumstances have required our team members to adapt how they work regarding how we serve our customers, how we operate efficiently and simply how we take care of each other. The focus and successful implementation of these items are certainly reflected in our first fiscal quarter results, results which represent an all-time quarterly high watermark for the company. Our results this quarter reflect success in both our growth strategy and in our operational execution.

The integration of Kosmos Cement acquisition proceeded on schedule. I'm proud to say that for the first time in Eagle's history, we sold over 2 million tons of cement during the quarter. Our cement operations performed well. Recent strategic investments to extend our capabilities to satisfy customer requirements are paying off. A good example of this is our expansion of grinding capacity at our Sugar Creek plant. Cement demand has remained strong across all of our markets. We are fortunate to operate in states where construction has largely been uninterrupted by COVID. I can say this is luck and in many ways, it certainly is, but I do not want to minimize that we have been extremely strategic and selective about our growth targets in the U.S.

We're focused on economically resilient and less cyclical U.S. Heartland geographies. We continue to shape our heavy side portfolio with both strategic sales and acquisitions. Our sale of Western Aggregates and Mathews Ready Mix northern California reflected in this quarter's results was a