(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 June 30, 2017	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	366,121		$	—		$	366,121
Cost of Goods Sold		—			280,062			—			280,062
Gross Profit		—			86,059			—			86,059
Equity in Earnings of Unconsolidated Joint Venture		9,876			9,876			(9,876	)		9,876
Equity in Earnings of Subsidiaries		68,173			—			(68,173	)		—
Corporate General and Administrative Expenses		(8,648	)		(1,031	)		—			(9,679	)
Other Income (Loss)		(167	)		924			—			757
Interest Expense, net		(12,962	)		5,479			—			(7,483	)
Earnings before Income Taxes		56,272			101,307			(78,049	)		79,530
Income Taxes		8,487			(33,135	)		—			(24,648	)
Net Earnings	$	64,759		$	68,172		$	(78,049	)	$	54,882
Net Earnings	$	64,759		$	68,172		$	(78,049	)	$	54,882
Net Actuarial Change in Benefit Plans, net of tax		197			197			(197	)		197
Comprehensive Earnings	$	64,956		$	68,369		$	(78,246	)	$	55,079

Condensed Consolidating Statement of Earnings and Comprehensive Earnings For the Three Months Ended June 30, 2016	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	297,504		$	—		$	297,504
Cost of Goods Sold		—			225,549			—			225,549
Gross Profit		—			71,955			—			71,955
Equity in Earnings of Unconsolidated Joint Venture		7,980			7,980			(7,980	)		7,980
Equity in Earnings of Subsidiaries		49,703			—			(49,703	)		—
Corporate General and Administrative Expenses		(8,231	)		(1,602	)		—			(9,833	)
Other Income (Loss)		(77	)		1,152			—			1,075
Interest Expense, net		(10,011	)		6,110			—			(3,901	)
Earnings before Income Taxes		39,364			85,595			(57,683	)		67,276
Income Taxes		5,980			(27,912	)		—			(21,932	)
Net Earnings	$	45,344		$	57,683		$	(57,683	)		45,344
Net Earnings	$	45,344		$	57,683		$	(57,683	)		45,344
Net Actuarial Change in Benefit Plans, net of tax		312			312			(312	)		312
Comprehensive Earnings	$	45,656		$	57,995		$	(57,995	)	$	45,656

Condensed Consolidating Balance Sheet At June 30, 2017	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets -
Cash and Cash Equivalents	$	10,682		$	1,551		$	—		$	12,233
Accounts and Notes Receivable		399			174,603			—			175,002
Inventories		—			244,886			—			244,886
Income Tax Receivable		10,252			—			(10,252	)		—
Prepaid and Other Current Assets		689			7,492			—			8,181
Total Current Assets		22,022			428,532			(10,252	)		440,302
Property, Plant and Equipment -		2,925			2,451,875			—			2,454,800
Less: Accumulated Depreciation		(968	)		(918,764	)		—			(919,732	)
Property, Plant and Equipment, net		1,957			1,533,111			—			1,535,068
Notes Receivable		—			653			—			653
Investment in Joint Venture		56			53,694			—			53,750
Investments in Subsidiaries and Receivables from Affiliates		5,230,160			3,309,550			(8,539,710	)		—
Goodwill and Intangible Assets, net		—			234,707			—			234,707
Other Assets		5,605			9,505			—			15,110
	$	5,259,800		$	5,569,752		$	(8,549,962	)	$	2,279,590
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities-
Accounts Payable	$	6,139		$	72,624		$	—		$	78,763
Accrued Liabilities		21,225			32,063			—			53,288
Income Tax Payable		—			36,714			(10,252	)		26,462
Current Portion of Long-term Debt		81,214			—			—			81,214
Total Current Liabilities		108,578			141,401			(10,252	)		239,727
Long-term Debt		580,421			—			—			580,421
Other Long-term Liabilities		173			41,853			—			42,026
Payables to Affiliates		3,309,550			2,861,409			(6,170,959	)		—
Deferred Income Taxes		5,991			156,338			—			162,329
Total Liabilities		4,004,713			3,201,001			(6,181,211	)		1,024,503
Total Stockholders’ Equity		1,255,087			2,368,751			(2,368,751	)		1,255,087
	$	5,259,800		$	5,569,752		$	(8,549,962	)	$	2,279,590

Condensed Consolidating Balance Sheet At March 31, 2017	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets -
Cash and Cash Equivalents	$	5,184		$	1,377		$	—		$	6,561
Accounts and Notes Receivable		422			135,891			—			136,313
Inventories		—			252,846			—			252,846
Income Tax Receivable		33,196			—			(33,196	)		—
Prepaid and Other Current Assets		484			4,420			—			4,904
Total Current Assets		39,286			394,534			(33,196	)		400,624
Property, Plant and Equipment -		2,914			2,436,524			—			2,439,438
Less: Accumulated Depreciation		(937	)		(891,664	)		—			(892,601	)
Property, Plant and Equipment, net		1,977			1,544,860			—			1,546,837
Notes Receivable		—			815			—			815
Investment in Joint Venture		51			48,569			—			48,620
Investments in Subsidiaries and Receivables from Affiliates		5,126,289			3,252,309			(8,378,598	)		—
Goodwill and Intangible Assets, net		—			235,505			—			235,505
Other Assets		5,687			9,036			—			14,723
	$	5,173,290		$	5,485,628		$	(8,411,794	)	$	2,247,124
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities-
Accounts Payable	$	6,687		$	85,506		$	—		$	92,193
Accrued Liabilities		21,043			34,336			—			55,379
Income Tax Payable		733			33,196			(33,196	)		733
Current Portion of Long-term Debt		81,214			—			—			81,214
Total Current Liabilities		109,677			153,038			(33,196	)		229,519
Long-term Debt		605,253			—			—			605,253
Other Long-term Liabilities		189			42,689			—			42,878
Payables to Affiliates		3,252,309			2,825,710			(6,078,019	)		—
Deferred Income Taxes		2,412			163,612			—			166,024
Total Liabilities		3,969,840			3,185,049			(6,111,215	)		1,043,674
Total Stockholders’ Equity		1,203,450			2,300,579			(2,300,579	)		1,203,450
	$	5,173,290		$	5,485,628		$	(8,411,794	)	$	2,247,124

Condensed Consolidating Statement of Cash Flows Three Months ended June 30, 2017	Parent			Guarantor Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net Cash Provided by (Used in) Operating Activities	$	16,506		$	37,164		$	—	$	53,670
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant and Equipment		—			(16,160	)		—		(16,160	)
Net Cash Used in Investing Activities		—			(16,160	)		—		(16,160	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of Credit Facility		(25,000	)		—			—		(25,000	)
Dividends Paid to Stockholders		(4,853	)		—			—		(4,853	)
Purchase and Retirement of Common Stock		(1,880	)		—			—		(1,880	)
Proceeds from Stock Option Exercises		1,273			—			—		1,273
Shares Redeemed to Settle Employee Taxes on Stock Compensation		(1,378	)		—			—		(1,378	)
Intra-entity Activity, net		20,830			(20,830	)		—		—
Net Cash Provided by (Used in) Financing Activities		(11,008	)		(20,830	)		—		(31,838	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		5,498			174			—		5,672
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		5,184			1,377			—		6,561
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	10,682		$	1,551		$	—	$	12,233

Condensed Consolidating Statement of Cash Flows Three Months ended June 30, 2016	Parent			Guarantor Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net Cash Provided by (Used in) Operating Activities	$	(35,457	)	$	89,540		$	—	$	54,083
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant and Equipment		—			(8,978	)		—		(8,978	)
Net Cash Used in Investing Activities		—			(8,978	)		—		(8,978	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of Credit Facility		(9,000	)		—			—		(9,000	)
Dividends Paid to Stockholders		(4,828	)		—			—		(4,828	)
Shares Redeemed to Settle Employee Taxes on Stock Compensation		(2,284	)		—			—		(2,284	)
Purchase and Retirement of Common Stock		(39,135	)		—			—		(39,135	)
Proceed from Stock Option Exercises		10,632			—			—		10,632
Excess Tax Benefits from Share Based Payment Arrangements		3,299			—			—		3,299
Intra-entity Activity, net		77,474			(77,474	)		—		—
Net Cash Provided by (Used in) Financing Activities		36,158			(77,474	)		—		(41,316	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		701			3,088			—		3,789
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		3,507			1,884			—		5,391
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	4,208		$	4,972		$	—	$	9,180