(Q) FINANCIAL STATEMENTS FOR GUARANTORS OF THE 4.500% SENIOR UNSECURED NOTES

On August 2, 2016, the Company completed a public offering of its Senior Unsecured Notes. The Senior Unsecured Notes are senior unsecured obligations of the Company and were offered under the Company’s existing shelf registration statement filed with the Securities and Exchange Commission.

The Senior Unsecured Notes are guaranteed by all of the Company’s wholly-owned subsidiaries, and all guarantees are full and unconditional and are joint and several. The following unaudited condensed consolidating financial statements present separately the earnings and comprehensive earnings, financial position and cash flows of the parent issuer (Eagle Materials Inc.) and the guarantors (all wholly-owned subsidiaries of Eagle Materials Inc.) on a combined basis with eliminating entries (dollars in thousands).

Condensed Consolidating Statement of Earnings and Comprehensive Earnings For the Three Months Ended December 31, 2016	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	302,395		$	—		$	302,395
Cost of Goods Sold		—			215,015			—			215,015
Gross Profit		—			87,380			—			87,380
Equity in Earnings of Unconsolidated Joint Venture		11,244			11,244			(11,244	)		11,244
Equity in Earnings of Subsidiaries		60,294			—			(60,294	)		—
Corporate General and Administrative Expenses		(7,942	)		(1,224	)		—			(9,166	)
Other Income (Loss)		(264	)		693			—			429
Interest Expense, net		(14,413	)		8,215			—			(6,198	)
Earnings before Income Taxes		48,919			106,308			(71,538	)		83,689
Income Taxes		7,468			(34,770	)		—			(27,302	)
Net Earnings	$	56,387		$	71,538		$	(71,538	)	$	56,387
Net Earnings	$	56,387		$	71,538		$	(71,538	)	$	56,387
Net Actuarial Change in Benefit Plans, net of tax		312			312			(312	)		312
Comprehensive Earnings	$	56,699		$	71,850		$	(71,850	)	$	56,699

Condensed Consolidating Statement of Earnings and Comprehensive Earnings For the Three Months Ended December 31, 2015	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	277,409		$	—		$	277,409
Cost of Goods Sold		—			208,544			—			208,544
Gross Profit		—			68,865			—			68,865
Equity in Earnings of Unconsolidated Joint Venture		10,483			10,483			(10,483	)		10,483
Equity in Earnings of Subsidiaries		46,387			—			(46,387	)		—
Corporate General and Administrative Expenses		(7,063	)		(1,241	)		—			(8,304	)
Other Income (Loss)		258			905			—			1,163
Interest Expense, net		(9,791	)		5,789			—			(4,002	)
Earnings before Income Taxes		40,274			84,801			(56,870	)		68,205
Income Taxes		5,574			(27,931	)		—			(22,357	)
Net Earnings	$	45,848		$	56,870		$	(56,870	)		45,848
Net Earnings	$	45,848		$	56,870		$	(56,870	)		45,848
Net Actuarial Change in Benefit Plans, net of tax		318			318			(318	)		318
Comprehensive Earnings	$	46,166		$	57,188		$	(57,188	)	$	46,166

Condensed Consolidating Statement of Earnings and Comprehensive Earnings For the Nine Months Ended December 31, 2016	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	932,557		$	—		$	932,557
Cost of Goods Sold		—			682,012			—			682,012
Gross Profit		—			250,545			—			250,545
Equity in Earnings of Unconsolidated Joint Venture		31,371			31,371			(31,371	)		31,371
Equity in Earnings of Subsidiaries		171,466			—			(171,466	)		—
Corporate General and Administrative Expenses		(23,670	)		(4,161	)		—			(27,831	)
Other Income (Loss)		(478	)		2,486			—			2,008
Interest Expense, net		(36,778	)		21,023			—			(15,755	)
Earnings before Income Taxes		141,911			301,264			(202,837	)		240,338
Income Taxes		20,057			(98,427	)		—			(78,370	)
Net Earnings	$	161,968		$	202,837		$	(202,837	)	$	161,968
Net Earnings	$	161,968		$	202,837		$	(202,837	)	$	161,968
Net Actuarial Change in Benefit Plans, net of tax		936			936			(936	)		936
Comprehensive Earnings	$	162,904		$	203,773		$	(203,773	)	$	162,904

Condensed Consolidating Statement of Earnings and Comprehensive Earnings For the Nine Months Ended December 31, 2015	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	891,360		$	—		$	891,360
Cost of Goods Sold		—			717,104			—			717,104
Gross Profit		—			174,256			—			174,256
Equity in Earnings of Unconsolidated Joint Venture		29,993			29,993			(29,993	)		29,993
Equity in Earnings of Subsidiaries		118,088			—			(118,088	)		—
Corporate General and Administrative Expenses		(22,794	)		(3,865	)		—			(26,659	)
Other Income (Loss)		(48	)		2,218			—			2,170
Interest Expense, net		(28,275	)		15,445			—			(12,830	)
Earnings before Income Taxes		96,964			218,047			(148,081	)		166,930
Income Taxes		16,465			(69,966	)		—			(53,501	)
Net Earnings	$	113,429		$	148,081		$	(148,081	)		113,429
Net Earnings	$	113,429		$	148,081		$	(148,081	)		113,429
Net Actuarial Change in Benefit Plans, net of tax		958			958			(958	)		958
Comprehensive Earnings	$	114,387		$	149,039		$	(149,039	)	$	114,387

Condensed Consolidating Balance Sheet At December 31, 2016	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets -
Cash and Cash Equivalents	$	162,792		$	1,873		$	—		$	164,665
Accounts and Notes Receivable		581			114,697			—			115,278
Inventories		—			222,783			—			222,783
Income Tax Receivable		21,354			—			(21,354	)		—
Prepaid and Other Current Assets		5,167			792			—			5,959
Total Current Assets		189,894			340,145			(21,354	)		508,685
Property, Plant and Equipment -		3,196			2,095,499			—			2,098,695
Less: Accumulated Depreciation		(897	)		(869,962	)		—			(870,859	)
Property, Plant and Equipment, net		2,299			1,225,537			—			1,227,836
Notes Receivable		—			1,002			—			1,002
Deferred Income Taxes		3,478			—			(3,478	)		—
Investment in Joint Venture		47			47,553			—			47,600
Investments in Subsidiaries and Receivables from Affiliates		4,431,726			2,980,527			(7,412,253	)		—
Goodwill and Intangible Assets, net		—			161,765			—			161,765
Other Assets		5,888			21,213			—			27,101
	$	4,633,332		$	4,777,742		$	(7,437,085	)	$	1,973,989
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities-
Accounts Payable	$	6,684		$	57,163		$	—		$	63,847
Accrued Liabilities		20,992			36,657			—			57,649
Income Tax Payable		—			26,569			(21,354	)		5,215
Current Portion of Long-term Debt		81,214			—			—			81,214
Total Current Liabilities		108,890			120,389			(21,354	)		207,925
Long-term Debt		380,134			—			—			380,134
Other Long-term Liabilities		206			57,308			—			57,514
Payables to Affiliates		2,980,527			2,184,696			(5,165,223	)		—
Deferred Income Taxes		—			168,319			(3,478	)		164,841
Total Liabilities		3,469,757			2,530,712			(5,190,055	)		810,414
Total Stockholders’ Equity		1,163,575			2,247,030			(2,247,030	)		1,163,575
	$	4,633,332		$	4,777,742		$	(7,437,085	)	$	1,973,989

Condensed Consolidating Balance Sheet At March 31, 2016	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets -
Cash and Cash Equivalents	$	3,507		$	1,884		$	—		$	5,391
Accounts and Notes Receivable		324			119,897			—			120,221
Inventories		—			243,595			—			243,595
Income Tax Receivable		—			6,731			(1,108	)		5,623
Prepaid and Other Current Assets		1,365			3,808			—			5,173
Total Current Assets		5,196			375,915			(1,108	)		380,003
Property, Plant and Equipment -		2,612			2,070,164			—			2,072,776
Less: Accumulated Depreciation		(814	)		(816,651	)		—			(817,465	)
Property, Plant and Equipment, net		1,798			1,253,513			—			1,255,311
Notes Receivable		—			2,672			—			2,672
Deferred Income Taxes		3,375			—			(3,375	)		—
Investment in Joint Venture		33			49,432			—			49,465
Investments in Subsidiaries and Receivables from Affiliates		4,085,806			2,529,480			(6,615,286	)		—
Goodwill and Intangible Assets, net		—			165,827			—			165,827
Other Assets		5,557			24,800			—			30,357
	$	4,101,765		$	4,401,639		$	(6,619,769	)	$	1,883,635
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities-
Accounts Payable	$	6,968		$	59,646		$	—		$	66,614
Accrued Liabilities		15,708			30,267			—			45,975
Income Tax Payable		1,108			—			(1,108	)		—
Current Portion of Long-term Debt		8,000			—			—			8,000
Total Current Liabilities		31,784			89,913			(1,108	)		120,589
Long-term Debt		499,714			—			—			499,714
Other Long-term Liabilities		256			60,866			—			61,122
Payables to Affiliates		2,529,480			2,042,633			(4,572,113	)		—
Deferred Income Taxes		—			165,054			(3,375	)		161,679
Total Liabilities		3,061,234			2,358,466			(4,576,596	)		843,104
Total Stockholders’ Equity		1,040,531			2,043,173			(2,043,173	)		1,040,531
	$	4,101,765		$	4,401,639		$	(6,619,769	)	$	1,883,635

Condensed Consolidating Statement of Cash Flows Nine Months ended December 31, 2016	Parent			Guarantor Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net Cash Provided by (Used in) Operating Activities	$	(53,877	)	$	342,745		$	—	$	288,868
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant and Equipment		(271	)		(33,772	)		—		(34,043	)
Net Cash Used in Investing Activities		(271	)		(33,772	)		—		(34,043	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Decrease in Long-term Debt		(40,000	)		—			—		(40,000	)
Payment of Debt Issuance Costs		(6,637	)							(6,637	)
Dividends Paid to Stockholders		(14,500	)		—			—		(14,500	)
Purchase and Retirement of Common Stock		(60,013	)		—			—		(60,013	)
Proceeds from Stock Option Exercises		20,137			—			—		20,137
Shares Redeemed to Settle Employee Taxes on Stock Compensation		(3,084	)		—			—		(3,084	)
Excess Tax Benefits from Share Based Payment Arrangements		8,546			—			—		8,546
Intra-entity Activity, net		308,984			(308,984	)		—		—
Net Cash Provided by (Used in) Financing Activities		213,433			(308,984	)		—		(95,551	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		159,285			(11	)		—		159,274
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		3,507			1,884			—		5,391
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	162,792		$	1,873		$	—	$	164,665

Condensed Consolidating Statement of Cash Flows Nine Months ended December 31, 2015	Parent			Guarantor Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net Cash Provided by (Used in) Operating Activities	$	(51,482	)	$	267,772		$	—	$	216,290
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant and Equipment		—			(75,536	)		—		(75,536	)
Acquisition Spending		—			(32,427	)		—		(32,427	)
Net Cash Used in Investing Activities		—			(107,963	)		—		(107,963	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of Credit Facility		(12,045	)		—			—		(12,045	)
Dividends Paid to Stockholders		(15,078	)		—			—		(15,078	)
Shares Redeemed to Settle Employee Taxes on Stock Compensation		(1,815	)		—			—		(1,815	)
Purchase and Retirement of Common Stock		(76,231	)		—			—		(76,231	)
Proceed from Stock Option Exercises		2,580			—			—		2,580
Excess Tax Benefits from Share Based Payment Arrangements		2,504			—			—		2,504
Intra-entity Activity, net		160,107			(160,107	)		—		—
Net Cash Provided by (Used in) Financing Activities		60,022			(160,107	)		—		(100,085	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		8,540			(298	)		—		8,242
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		3,644			3,870			—		7,514
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	12,184		$	3,572		$	—	$	15,756