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Business Segments
 12 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Business Segments

(G) Business Segments

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.  Operations related to the Skyway Acquisition will be included in the cement segment, as this plant has an identical customer base and is managed by the cement division.

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 (a basic construction material which are the essential binding ingredients in concrete), the grinding of slag, 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 with broad application as construction products, building materials, and basic materials used for oil and natural gas extraction.  Our construction productions are used in residential, industrial, commercial and infrastructure construction and include cement, 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 seven cement plants, one slag grinding facility, seventeen cement distribution terminals, five gypsum wallboard plants, 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, three frac sand drying facilities 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, southern Ohio 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 deposits across the United States.

We conduct one of our seven 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 Years Ended March 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

566,321

 

 

$

528,499

 

 

$

488,644

 

Gypsum Wallboard

 

 

473,651

 

 

 

461,457

 

 

 

437,514

 

Paperboard

 

 

167,065

 

 

 

149,192

 

 

 

142,690

 

Oil and Gas Proppants

 

 

34,623

 

 

 

57,591

 

 

 

81,381

 

Concrete and Aggregates

 

 

154,592

 

 

 

128,073

 

 

 

107,892

 

 

 

 

1,396,252

 

 

 

1,324,812

 

 

 

1,258,121

 

Less: Intersegment Revenues

 

 

(79,116

)

 

 

(73,862

)

 

 

(65,533

)

Less: Joint Venture Revenues

 

 

(105,916

)

 

 

(107,458

)

 

 

(126,220

)

 

 

$

1,211,220

 

 

$

1,143,492

 

 

$

1,066,368

 

 

 

 

 

For the Years Ended March 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

Intersegment Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

15,781

 

 

$

13,939

 

 

$

9,598

 

Paperboard

 

 

62,073

 

 

 

59,001

 

 

 

55,060

 

Concrete and Aggregates

 

 

1,262

 

 

 

922

 

 

 

875

 

 

 

$

79,116

 

 

$

73,862

 

 

$

65,533

 

Cement Sales Volumes (M tons) -

 

 

 

 

 

 

 

 

 

 

 

 

Wholly-Owned

 

 

3,934

 

 

 

3,903

 

 

 

3,744

 

Joint Venture

 

 

937

 

 

 

875

 

 

 

1,055

 

 

 

 

4,871

 

 

 

4,778

 

 

 

4,799

 

 

 

 

 

For the Years Ended March 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

153,525

 

 

$

137,854

 

 

$

117,527

 

Gypsum Wallboard

 

 

159,866

 

 

 

159,352

 

 

 

145,871

 

Paperboard

 

 

37,601

 

 

 

32,153

 

 

 

31,512

 

Oil and Gas Proppants

 

 

(14,633

)

 

 

(68,466

)

 

 

(2,546

)

Concrete and Aggregates

 

 

18,072

 

 

 

9,807

 

 

 

6,736

 

Other, net

 

 

2,139

 

 

 

2,328

 

 

 

3,201

 

Sub-Total

 

 

356,570

 

 

 

273,028

 

 

 

302,301

 

Corporate General and Administrative

 

 

(33,940

)

 

 

(37,193

)

 

 

(30,751

)

Acquisition, Litigation and Other Expense

 

 

(5,480

)

 

 

—

 

 

 

(6,880

)

Earnings Before Interest and Income Taxes

 

 

317,150

 

 

 

235,835

 

 

 

264,670

 

Interest Expense, net

 

 

(22,631

)

 

 

(16,583

)

 

 

(11,743

)

Earnings Before Income Taxes

 

$

294,519

 

 

$

219,252

 

 

$

252,927

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

Wholly-Owned

 

$

111,139

 

 

$

98,771

 

 

$

72,560

 

Joint Ventures

 

 

42,386

 

 

 

39,083

 

 

 

44,967

 

 

 

$

153,525

 

 

$

137,854

 

 

$

117,527

 

Capital Expenditures -

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

32,790

 

 

$

20,262

 

 

$

27,086

 

Gypsum Wallboard

 

 

11,393

 

 

 

4,832

 

 

 

7,129

 

Paperboard

 

 

3,996

 

 

 

5,542

 

 

 

1,888

 

Oil and Gas Proppants

 

 

1,534

 

 

 

40,144

 

 

 

61,484

 

Concrete and Aggregates

 

 

6,528

 

 

 

18,783

 

 

 

13,851

 

Other, net

 

 

697

 

 

 

—

 

 

 

135

 

 

 

$

56,938

 

 

$

89,563

 

 

$

111,573

 

Depreciation, Depletion and Amortization -

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

36,727

 

 

$

33,400

 

 

$

31,839

 

Gypsum Wallboard

 

 

18,728

 

 

 

19,988

 

 

 

20,092

 

Paperboard

 

 

8,425

 

 

 

8,312

 

 

 

8,251

 

Oil and Gas Proppants

 

 

18,255

 

 

 

27,227

 

 

 

8,839

 

Concrete and Aggregates

 

 

7,931

 

 

 

6,260

 

 

 

5,533

 

Corporate and Other

 

 

1,725

 

 

 

1,918

 

 

 

1,745

 

 

 

$

91,791

 

 

$

97,105

 

 

$

76,299

 

 

 

 

 

As of March 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

1,234,617

 

 

$

819,994

 

 

$

777,956

 

Gypsum Wallboard

 

 

379,414

 

 

 

392,523

 

 

 

403,279

 

Paperboard

 

 

124,356

 

 

 

127,371

 

 

 

123,519

 

Oil and Gas Proppants

 

 

376,306

 

 

 

409,497

 

 

 

455,572

 

Concrete and Aggregates

 

 

110,413

 

 

 

106,634

 

 

 

96,610

 

Other, net

 

 

22,018

 

 

 

27,616

 

 

 

23,390

 

 

 

$

2,247,124

 

 

$

1,883,635

 

 

$

1,880,326

 

 

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. We account for intersegment sales at market prices. Corporate assets consist primarily of cash and cash equivalents, general office assets and miscellaneous other assets.

The basis used to disclose Identifiable Assets, Capital Expenditures and Depreciation, Depletion conforms with the equity method, and is similar to how we disclose these accounts in our Consolidated Balance Sheets and Consolidated Statements of Earnings.

The segment breakdown of goodwill at March 31, 2017 and 2016 is as follows:

 

 

 

For the Years Ended March 31,

 

 

 

2017

 

 

2016

 

 

 

(dollars in thousands)

 

Cement

 

$

74,214

 

 

$

9,729

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

198,370

 

 

$

133,885

 

 

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 accounts):

 

 

For the Years Ended March 31,

 

 

 

2017

 

 

2016

 

 

 

(dollars in thousands)

 

Revenues

 

$

215,569

 

 

$

214,916

 

Gross Margin

 

$

90,098

 

 

$

84,380

 

Earnings Before Income Taxes

 

$

84,772

 

 

$

78,166

 

 

 

 

March 31,

2017

 

 

March 31,

2016

 

 

 

(dollars in thousands)

 

Current Assets

 

$

73,767

 

 

$

70,491

 

Non-Current Assets

 

$

42,337

 

 

$

41,464

 

Current Liabilities

 

$

22,293

 

 

$

15,964