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SEGMENT INFORMATION
 3 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(L) SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities that earn revenues, 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 operate in five business segments: Cement, Gypsum Wallboard, Recycled Paperboard, Oil and Gas Proppants and Concrete and Aggregates. These operations are conducted in the U.S. and include the mining of limestone and the manufacture, production, distribution and sale of Portland cement and slag (basic construction materials which are the essential binding ingredient in concrete), the grinding the mining of gypsum and 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”). The products that we manufacture, distribute and sell are basic materials used with broad application as construction products, building materials, and basic materials used for oil and natural gas extraction.  Our construction products are used in residential, industrial, commercial and infrastructure construction and include cement, slag, concrete and aggregates.  Our building materials are sold into similar markets and include gypsum wallboard.  Our basic materials used for oil and natural gas extraction include frac sand and oil well cement.

We operate six cement plants, one slag grinding facility, sixteen cement distribution terminals, five gypsum wallboard plants, including the plant idled in Bernalillo, N.M., a gypsum wallboard distribution center, a recycled paperboard mill, seventeen readymix concrete batch plant locations, four aggregates processing plant locations,  two frac sand processing facilities, including the mine idled in Utica, Illinois, three frac sand drying facilities, including the facility idled in Corpus Christi, Texas, and six frac sand trans-load locations. The principal markets for our cement products are Texas, northern Illinois (including Chicago), the central plains, the Rocky Mountains, northern Nevada, and northern California. Gypsum wallboard and recycled paperboard are distributed throughout the continental U.S, with the exception of the northeast. Concrete and aggregates are sold to local readymix producers and paving contractors in the Austin, Texas area, north of Sacramento, California and the greater Kansas City, Missouri area, while frac sand is currently sold into shale deposit zones across the United States.  

We conduct one of our six cement plant operations, Texas Lehigh Cement Company LP in Buda, Texas, through a Joint Venture. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture’s revenues and operating earnings, which is consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

 

We account for intersegment sales at market prices. The following table sets forth certain financial information relating to our operations by segment:

 

 

 

For the Three Months

 

 

 

Ended June 30,

 

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

Revenues -

 

 

 

 

 

 

 

 

Cement

 

$

144,792

 

 

$

128,176

 

Gypsum Wallboard

 

 

113,262

 

 

 

115,052

 

Paperboard

 

 

42,815

 

 

 

35,318

 

Oil and Gas Proppants

 

 

5,096

 

 

 

22,825

 

Concrete and Aggregates

 

 

34,751

 

 

 

28,532

 

Sub-total

 

 

340,716

 

 

 

329,903

 

Less: Intersegment Revenues

 

 

(18,324

)

 

 

(17,929

)

Net Revenues, including Joint Venture

 

 

322,392

 

 

 

311,974

 

Less: Joint Venture

 

 

(24,888

)

 

 

(27,011

)

Net Revenues

 

$

297,504

 

 

$

284,963

 

 

 

 

For the Three Months

 

 

 

Ended June 30,

 

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

Intersegment Revenues -

 

 

 

 

 

 

 

 

Cement

 

$

3,535

 

 

$

3,126

 

Paperboard

 

 

14,506

 

 

 

14,551

 

Concrete and Aggregates

 

 

283

 

 

 

252

 

 

 

$

18,324

 

 

$

17,929

 

Cement Sales Volume (in thousands of tons) -

 

 

 

 

 

 

 

 

Wholly –owned Operations

 

 

1,033

 

 

 

991

 

Joint Venture

 

 

218

 

 

 

212

 

 

 

 

1,251

 

 

 

1,203

 

 

 

 

For the Three Months

 

 

 

Ended June 30,

 

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

Operating Earnings -

 

 

 

 

 

 

 

 

Cement

 

$

31,600

 

 

$

25,713

 

Gypsum Wallboard

 

 

39,336

 

 

 

40,894

 

Paperboard

 

 

11,227

 

 

 

6,030

 

Oil and Gas Proppants

 

 

(5,912

)

 

 

(5,636

)

Concrete and Aggregates

 

 

3,684

 

 

 

1,926

 

Other, net

 

 

1,075

 

 

 

435

 

Sub-total

 

 

81,010

 

 

 

69,362

 

Corporate General and Administrative

 

 

(9,833

)

 

 

(8,991

)

Earnings Before Interest and Income Taxes

 

 

71,177

 

 

 

60,371

 

Interest Expense, net

 

 

(3,901

)

 

 

(4,486

)

Earnings Before Income Taxes

 

$

67,276

 

 

$

55,885

 

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

Wholly–owned Operations

 

$

23,620

 

 

$

17,883

 

Joint Venture

 

 

7,980

 

 

 

7,830

 

 

 

$

31,600

 

 

$

25,713

 

 

Capital Expenditures -

 

 

 

 

 

 

 

 

Cement

 

$

5,245

 

 

$

8,150

 

Gypsum Wallboard

 

 

1,328

 

 

 

1,497

 

Paperboard

 

 

1,304

 

 

 

844

 

Oil and Gas Proppants

 

 

57

 

 

 

15,967

 

Concrete and Aggregates

 

 

1,044

 

 

 

664

 

Other

 

 

—

 

 

 

—

 

 

 

$

8,978

 

 

$

27,122

 

 

Depreciation, Depletion and Amortization -

 

 

 

 

 

 

 

 

Cement

 

$

8,611

 

 

$

7,866

 

Gypsum Wallboard

 

 

4,762

 

 

 

4,786

 

Paperboard

 

 

2,100

 

 

 

2,053

 

Oil and Gas Proppants

 

 

5,184

 

 

 

7,559

 

Concrete and Aggregates

 

 

1,749

 

 

 

1,505

 

Other, net

 

 

457

 

 

 

495

 

 

 

$

22,863

 

 

$

24,264

 

 

 

 

As of

 

 

 

June 30,
2016

 

 

March 31,
2016

 

 

 

(dollars in thousands)

 

Identifiable Assets -

 

 

 

 

 

 

 

 

Cement

 

$

845,018

 

 

$

819,994

 

Gypsum Wallboard

 

 

380,640

 

 

 

392,523

 

Paperboard

 

 

128,448

 

 

 

127,371

 

Oil and Gas Proppants

 

 

401,285

 

 

 

409,497

 

Concrete and Aggregates

 

 

111,195

 

 

 

106,634

 

Corporate and Other

 

 

22,499

 

 

 

27,616

 

 

 

$

1,889,085

 

 

$

1,883,635

 

 

Segment operating earnings, including the proportionately consolidated 50% interest in the revenues and expenses of the Joint Venture, represent revenues, less direct operating expenses, segment depreciation, and segment selling, general and administrative expenses. Corporate assets consist primarily of cash and cash equivalents, general office assets, miscellaneous other assets and unrecognized tax benefits. The segment breakdown of goodwill is as follows:

 

 

 

As of

 

 

 

June 30,

 

 

March 31,

 

 

 

2016

 

 

2016

 

 

 

(dollars in thousands)

 

Cement

 

$

9,729

 

 

$

9,729

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

133,885

 

 

$

133,885

 

 

We perform our annual test of impairment on goodwill during the fourth quarter of our fiscal year. If business conditions in the operating units containing goodwill change substantially during the fiscal year, and we are unable to conclude that an impairment loss is not likely to occur, we will perform impairment tests for those business units during our quarterly periods. At June 30, 2016, we determined that impairment losses are not likely to occur; therefore, no impairment tests were performed during the quarter.

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 June 30,

 

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

Revenues

 

$

49,776

 

 

$

54,022

 

Gross Margin

 

$

17,337

 

 

$

17,012

 

Earnings Before Income Taxes

 

$

16,138

 

 

$

15,660

 

 

 

 

As of

 

 

 

June 30,
2016

 

 

March 31,
2016

 

 

 

(dollars in thousands)

 

Current Assets

 

$

69,965

 

 

$

70,491

 

Non-Current Assets

 

$

41,032

 

 

$

41,464

 

Current Liabilities

 

$

16,399

 

 

$

15,964