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SEGMENT INFORMATION
 9 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(M) 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

 

 

For the Nine Months

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

138,047

 

 

$

135,419

 

 

$

449,650

 

 

$

428,385

 

Gypsum Wallboard

 

 

121,504

 

 

 

108,907

 

 

 

357,689

 

 

 

343,660

 

Paperboard

 

 

41,254

 

 

 

36,822

 

 

 

128,528

 

 

 

111,285

 

Oil and Gas Proppants

 

 

7,124

 

 

 

8,476

 

 

 

18,851

 

 

 

49,608

 

Concrete and Aggregates

 

 

40,843

 

 

 

31,779

 

 

 

114,734

 

 

 

96,982

 

Sub-total

 

 

348,772

 

 

 

321,403

 

 

 

1,069,452

 

 

 

1,029,920

 

Less: Intersegment Revenues

 

 

(20,468

)

 

 

(17,986

)

 

 

(59,123

)

 

 

(56,005

)

Net Revenues, including Joint Venture

 

 

328,304

 

 

 

303,417

 

 

 

1,010,329

 

 

 

973,915

 

Less: Joint Venture

 

 

(25,909

)

 

 

(26,008

)

 

 

(77,772

)

 

 

(82,555

)

Net Revenues

 

$

302,395

 

 

$

277,409

 

 

$

932,557

 

 

$

891,360

 

 

 

 

For the Three Months

 

 

For the Nine Months

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Intersegment Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

4,336

 

 

$

3,714

 

 

$

12,407

 

 

$

11,072

 

Paperboard

 

 

15,887

 

 

 

14,069

 

 

 

45,845

 

 

 

44,216

 

Concrete and Aggregates

 

 

245

 

 

 

203

 

 

 

871

 

 

 

717

 

 

 

$

20,468

 

 

$

17,986

 

 

$

59,123

 

 

$

56,005

 

Cement Sales Volume (in thousands of tons) -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly –owned Operations

 

 

967

 

 

 

999

 

 

 

3,200

 

 

 

3,238

 

Joint Venture

 

 

231

 

 

 

213

 

 

 

691

 

 

 

661

 

 

 

 

1,198

 

 

 

1,212

 

 

 

3,891

 

 

 

3,899

 

 


 

 

 

For the Three Months

 

 

For the Nine Months

 

 

 

Ended December 31,

 

 

Ended December 31,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

45,307

 

 

$

41,768

 

 

$

127,623

 

 

$

116,058

 

Gypsum Wallboard

 

 

41,075

 

 

 

37,289

 

 

 

122,109

 

 

 

118,185

 

Paperboard

 

 

9,380

 

 

 

7,923

 

 

 

30,827

 

 

 

22,091

 

Oil and Gas Proppants

 

 

(1,726

)

 

 

(9,153

)

 

 

(11,728

)

 

 

(59,389

)

Concrete and Aggregates

 

 

4,588

 

 

 

1,521

 

 

 

13,085

 

 

 

7,304

 

Other, net

 

 

429

 

 

 

1,163

 

 

 

2,008

 

 

 

2,170

 

Sub-total

 

 

99,053

 

 

 

80,511

 

 

 

283,924

 

 

 

206,419

 

Corporate General and Administrative

 

 

(9,166

)

 

 

(8,304

)

 

 

(27,831

)

 

 

(26,659

)

Earnings Before Interest and Income Taxes

 

 

89,887

 

 

 

72,207

 

 

 

256,093

 

 

 

179,760

 

Interest Expense, net

 

 

(6,198

)

 

 

(4,002

)

 

 

(15,755

)

 

 

(12,830

)

Earnings Before Income Taxes

 

$

83,689

 

 

$

68,205

 

 

$

240,338

 

 

$

166,930

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly–owned Operations

 

$

34,063

 

 

$

31,285

 

 

$

96,252

 

 

$

86,065

 

Joint Venture

 

 

11,244

 

 

 

10,483

 

 

 

31,371

 

 

 

29,993

 

 

 

$

45,307

 

 

$

41,768

 

 

$

127,623

 

 

$

116,058

 

Capital Expenditures -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

8,558

 

 

$

3,206

 

 

$

18,812

 

 

$

16,705

 

Gypsum Wallboard

 

 

1,756

 

 

 

1,131

 

 

 

5,181

 

 

 

2,831

 

Paperboard

 

 

634

 

 

 

650

 

 

 

2,338

 

 

 

3,918

 

Oil and Gas Proppants

 

 

1,469

 

 

 

5,619

 

 

 

1,534

 

 

 

38,330

 

Concrete and Aggregates

 

 

3,045

 

 

 

9,061

 

 

 

5,595

 

 

 

13,752

 

Other

 

 

350

 

 

 

—

 

 

 

583

 

 

 

—

 

 

 

$

15,812

 

 

$

19,667

 

 

$

34,043

 

 

$

75,536

 

Depreciation, Depletion and Amortization -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

8,763

 

 

$

8,390

 

 

$

26,158

 

 

$

24,885

 

Gypsum Wallboard

 

 

4,636

 

 

 

5,445

 

 

 

14,166

 

 

 

15,050

 

Paperboard

 

 

2,105

 

 

 

2,093

 

 

 

6,311

 

 

 

6,209

 

Oil and Gas Proppants

 

 

4,987

 

 

 

7,210

 

 

 

14,432

 

 

 

21,974

 

Concrete and Aggregates

 

 

1,805

 

 

 

1,597

 

 

 

5,474

 

 

 

4,667

 

Other, net

 

 

349

 

 

 

476

 

 

 

1,353

 

 

 

1,460

 

 

 

$

22,645

 

 

$

25,211

 

 

$

67,894

 

 

$

74,245

 

 

 

 

As of

 

 

 

December 31,

2016

 

 

March 31,

2016

 

 

 

(dollars in thousands)

 

Identifiable Assets -

 

 

 

 

 

 

 

 

Cement

 

$

807,008

 

 

$

819,994

 

Gypsum Wallboard

 

 

368,153

 

 

 

392,523

 

Paperboard

 

 

121,358

 

 

 

127,371

 

Oil and Gas Proppants

 

 

390,116

 

 

 

409,497

 

Concrete and Aggregates

 

 

106,744

 

 

 

106,634

 

Corporate and Other

 

 

180,610

 

 

 

27,616

 

 

 

$

1,973,989

 

 

$

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

 

 

 

December 31,

2016

 

 

March 31,

2016

 

 

 

(dollars in thousands)

 

Cement

 

$

9,729

 

 

$

9,729

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

133,885

 

 

$

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 amounts):

 

 

 

For the Three Months

Ended December 31,

 

 

For the Nine Months

Ended December 31,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenues

 

$

53,018

 

 

$

52,016

 

 

$

158,351

 

 

$

165,110

 

Gross Margin

 

$

23,887

 

 

$

22,388

 

 

$

66,812

 

 

$

64,593

 

Earnings Before Income Taxes

 

$

22,488

 

 

$

20,967

 

 

$

62,742

 

 

$

59,987

 

 

 

 

As of

 

 

 

December 31,

2016

 

 

March 31,

2016

 

 

 

(dollars in thousands)

 

Current Assets

 

$

69,465

 

 

$

70,491

 

Non-Current Assets

 

$

39,543

 

 

$

41,464

 

Current Liabilities

 

$

17,353

 

 

$

15,964