(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 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, 2018	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
Revenue	$	—		$	393,756		$	—		$	393,756
Cost of Goods Sold		—			302,122			—			302,122
Gross Profit		—			91,634			—			91,634
Equity in Earnings of Unconsolidated Joint Venture		9,251			9,251			(9,251	)		9,251
Equity in Earnings of Subsidiaries		67,258			—			(67,258	)		—
Corporate General and Administrative Expenses		(6,729	)		(1,274	)		—			(8,003	)
Legal Settlements		—			(1,800	)		—			(1,800	)
Other Non-Operating Income		(93	)		664			—			571
Interest Expense, net		(6,619	)		(13	)		—			(6,632	)
Earnings before Income Taxes		63,068			98,462			(76,509	)		85,021
Income Taxes		3,271			(21,953	)		—			(18,682	)
Net Earnings	$	66,339		$	76,509		$	(76,509	)	$	66,339
Net Earnings	$	66,339		$	76,509		$	(76,509	)	$	66,339
Net Actuarial Change in Benefit Plans, net of tax		56			56			(56	)		56
Comprehensive Earnings	$	66,395		$	76,565		$	(76,565	)	$	66,395

Condensed Consolidating Statement of Earnings and Comprehensive Earnings For the Three Months Ended June 30, 2017	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
Revenue	$	—		$	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		58,296			—			(58,296	)		—
Corporate General and Administrative Expenses		(8,648	)		(1,031	)		—			(9,679	)
Other Non-Operating Income		(167	)		924			—			757
Interest Expense, net		(12,962	)		5,479			—			(7,483	)
Earnings before Income Taxes		46,395			101,307			(68,172	)		79,530
Income Taxes		8,487			(33,135	)		—			(24,648	)
Net Earnings	$	54,882		$	68,172		$	(68,172	)	$	54,882
Net Earnings	$	54,882		$	68,172		$	(68,172	)		54,882
Net Actuarial Change in Benefit Plans, net of tax		197			197			(197	)		197
Comprehensive Earnings	$	55,079		$	68,369		$	(68,369	)	$	55,079

Condensed Consolidating Balance Sheet At June 30, 2018	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets -
Cash and Cash Equivalents	$	10,325		$	4,009		$	—		$	14,334
Restricted Cash		38,753			—			—			38,753
Accounts and Notes Receivable		1,057			183,026			—			184,083
Inventories		—			241,000			—			241,000
Income Tax Receivable		7,315			—			—			7,315
Prepaid and Other Current Assets		362			7,942			—			8,304
Total Current Assets		57,812			435,977			—			493,789
Property, Plant, and Equipment -		3,215			2,624,046			—			2,627,261
Less: Accumulated Depreciation		(1,127	)		(1,008,599	)		—			(1,009,726	)
Property, Plant and Equipment, net		2,088			1,615,447			—			1,617,535
Notes Receivable		—			3,266			—			3,266
Investment in Joint Venture		70			60,239			—			60,309
Investments in Subsidiaries and Receivables from Affiliates		2,273,998			183,393			(2,457,391	)		—
Goodwill and Intangible Assets, net		—			238,541			—			238,541
Other Assets		4,507			9,028			—			13,535
	$	2,338,475		$	2,545,891		$	(2,457,391	)	$	2,426,975
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities-
Accounts Payable	$	6,305		$	86,877		$	—		$	93,182
Accrued Liabilities		59,355			36,555			—			95,910
Total Current Liabilities		65,660			123,432			—			189,092
Long-term Debt		651,090			—			—			651,090
Other Long-term Liabilities		72			30,086			—			30,158
Payables to Affiliates		183,393			5,722,177			(5,905,570	)		—
Deferred Income Taxes		6,781			118,375			—			125,156
Total Liabilities		906,996			5,994,070			(5,905,570	)		995,496
Total Stockholders’ Equity		1,431,479			(3,448,179	)		3,448,179			1,431,479
	$	2,338,475		$	2,545,891		$	(2,457,391	)	$	2,426,975

Condensed Consolidating Balance Sheet At March 31, 2018	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets -
Cash and Cash Equivalents	$	5,784		$	3,531		$	—		$	9,315
Restricted Cash		38,753			—			—			38,753
Accounts and Notes Receivable		407			141,278			—			141,685
Inventories		—			258,159			—			258,159
Income Tax Receivable		109,510			—			(103,760	)		5,750
Prepaid and Other Current Assets		665			4,408			—			5,073
Total Current Assets		155,119			407,376			(103,760	)		458,735
Property, Plant, and Equipment -		3,188			2,583,340			—			2,586,528
Less: Accumulated Depreciation		(1,089	)		(990,140	)		—			(991,229	)
Property, Plant and Equipment, net		2,099			1,593,200			—			1,595,299
Notes Receivable		—			115			—			115
Investment in Joint Venture		70			60,488			—			60,558
Investments in Subsidiaries and Receivables from Affiliates		2,718,809			762,340			(3,481,149	)		—
Goodwill and Intangible Assets, net		—			239,342			—			239,342
Other Assets		5,417			8,537			—			13,954
	$	2,881,514		$	3,071,398		$	(3,584,909	)	$	2,368,003
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities-
Accounts Payable	$	5,591		$	67,868		$	—		$	73,459
Accrued Liabilities		67,387			38,483			—			105,870
Income Tax Payable		—			103,760			(103,760	)		—
Total Current Liabilities		72,978			210,111			(103,760	)		179,329
Long-term Debt		620,922			—			—			620,922
Other Long-term Liabilities		124			30,972			—			31,096
Payables to Affiliates		762,340			5,608,236			(6,370,576	)		—
Deferred Income Taxes		7,460			111,506			—			118,966
Total Liabilities		1,463,824			5,960,825			(6,474,336	)		950,313
Total Stockholders’ Equity		1,417,690			(2,889,427	)		2,889,427			1,417,690
	$	2,881,514		$	3,071,398		$	(3,584,909	)	$	2,368,003

Condensed Consolidating Statement of Cash Flows For the Three Months Ended June 30, 2018	Parent			Guarantor Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net Cash Provided by (Used in) Operating Activities	$	(21,444	)	$	103,353		$	—	$	81,909
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant, and Equipment		(27	)		(53,046	)		—		(53,073	)
Proceeds from Sale of Property, Plant, and Equipment		—			2,281			—		2,281
Net Cash Used in Investing Activities		(27	)		(50,765	)		—		(50,792	)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in Credit Facility		30,000			—			—		30,000
Dividends Paid to Stockholders		(4,790	)		—			—		(4,790	)
Purchase and Retirement of Common Stock		(52,344	)		—			—		(52,344	)
Proceeds from Stock Option Exercises		1,992			—			—		1,992
Shares Redeemed to Settle Employee Taxes on Stock Compensation		(956	)		—			—		(956	)
Intra-entity Activity, net		52,110			(52,110	)		—		—
Net Cash Provided by (Used in) Financing Activities		26,012			(52,110	)		—		(26,098	)
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		4,541			478			—		5,019
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD		44,537			3,531			—		48,068
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$	49,078		$	4,009		$	—	$	53,087

Condensed Consolidating Statement of Cash Flows For the 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
Property, Plant, and Equipment Additions		—			(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 AND RESTRICTED CASH		5,498			174			—		5,672
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD		5,184			1,377			—		6,561
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$	10,682		$	1,551		$	—	$	12,233