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SEGMENT INFORMATION
 3 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(N) SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities that earn revenue, 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.

Our business is organized into two sectors within which there are four reportable business segments. The Heavy Materials sector includes the Cement and Concrete and Aggregates segments. The Light Materials sector includes the Gypsum Wallboard and Recycled Paperboard segments.

Our primary products are commodities that are essential in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. We distribute our products throughout most of the United States, except the Northeast, which provides us with regional economic diversification. Our operations are conducted in the U.S. and include the mining of limestone for the manufacture, production, distribution, and sale of portland cement (a basic construction material that is the essential binding ingredient in concrete); the grinding and sale of slag; the mining of gypsum for 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).

We operate eight modern cement plants (one of which is operated through a joint venture located in Buda, Texas), one slag grinding facility, and over 30 cement distribution terminals. Our cement companies focus on the U.S. heartland and operate as an integrated network selling product primarily in California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Tennessee, and Texas. We operate 30 readymix concrete batch plants and five aggregates processing plants in markets that are complementary to our cement network.

We operate five gypsum wallboard plants and a recycled paperboard mill. We distribute gypsum wallboard and recycled paperboard throughout the continental U.S., with the exception of the Northeast.

We account for intersegment sales at market prices. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture Revenue and Operating Earnings, consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

 

The following table sets forth certain financial information relating to our operations by segment. We do not allocate interest or taxes at the segment level; these costs are disclosed at the consolidated company level.

 

 

 

For the Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Revenue

 

 

 

 

 

 

Cement

 

$

329,032

 

 

$

284,516

 

Concrete and Aggregates

 

 

70,453

 

 

 

61,618

 

Gypsum Wallboard

 

 

219,097

 

 

 

216,327

 

Paperboard

 

 

45,328

 

 

 

54,073

 

 

 

 

663,910

 

 

 

616,534

 

Less: Intersegment Revenue

 

 

(35,266

)

 

 

(28,832

)

Less: Joint Venture Revenue

 

 

(27,123

)

 

 

(26,315

)

 

 

$

601,521

 

 

$

561,387

 

 

 

 

For the Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Intersegment Revenue

 

 

 

 

 

 

Cement

 

$

10,137

 

 

$

6,291

 

Concrete and Aggregates

 

 

3,038

 

 

 

—

 

Paperboard

 

 

22,091

 

 

 

22,541

 

 

 

$

35,266

 

 

$

28,832

 

Cement Sales Volume (M tons)

 

 

 

 

 

 

Wholly Owned

 

 

1,848

 

 

 

1,805

 

Joint Venture

 

 

165

 

 

 

188

 

 

 

 

2,013

 

 

 

1,993

 

 

 

 

 

 

 

For the Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Operating Earnings

 

 

 

 

 

 

Cement

 

$

74,061

 

 

$

62,348

 

Concrete and Aggregates

 

 

7,034

 

 

 

5,732

 

Gypsum Wallboard

 

 

90,857

 

 

 

84,068

 

Paperboard

 

 

7,202

 

 

 

3,816

 

Sub-Total

 

 

179,154

 

 

 

155,964

 

Corporate General and Administrative Expense

 

 

(11,679

)

 

 

(11,820

)

Other Non-Operating Income (Loss)

 

 

213

 

 

 

(635

)

Earnings Before Interest and Income Taxes

 

 

167,688

 

 

 

143,509

 

Interest Expense, net

 

 

(12,239

)

 

 

(7,330

)

Earnings Before Income Taxes

 

$

155,449

 

 

$

136,179

 

Cement Operating Earnings

 

 

 

 

 

 

Wholly Owned

 

$

70,902

 

 

$

57,250

 

Joint Venture

 

 

3,159

 

 

 

5,098

 

 

 

$

74,061

 

 

$

62,348

 

Capital Expenditures

 

 

 

 

 

 

Cement

 

$

18,368

 

 

$

8,986

 

Concrete and Aggregates

 

 

3,220

 

 

 

652

 

Gypsum Wallboard

 

 

11,028

 

 

 

4,079

 

Paperboard

 

 

3,268

 

 

 

837

 

Corporate and Other

 

 

115

 

 

 

360

 

 

 

$

35,999

 

 

$

14,914

 

Depreciation, Depletion, and Amortization

 

 

 

 

 

 

Cement

 

$

21,679

 

 

$

20,053

 

Concrete and Aggregates

 

 

5,031

 

 

 

4,201

 

Gypsum Wallboard

 

 

5,461

 

 

 

5,563

 

Paperboard

 

 

3,719

 

 

 

3,717

 

Corporate and Other

 

 

792

 

 

 

695

 

 

 

$

36,682

 

 

$

34,229

 

 

 

 

June 30,

 

 

March 31,

 

 

 

2023

 

 

2023

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

Cement

 

$

2,006,915

 

 

$

1,905,227

 

Concrete and Aggregates

 

 

241,746

 

 

 

234,767

 

Gypsum Wallboard

 

 

428,240

 

 

 

421,425

 

Paperboard

 

 

165,649

 

 

 

163,797

 

Other, net

 

 

73,696

 

 

 

55,786

 

 

 

$

2,916,246

 

 

$

2,781,002

 

Segment Operating Earnings, including the proportionately consolidated 50% interest in the revenue and expenses of the Joint Venture, represent Revenue, less direct operating expenses, segment Depreciation, and segment Selling, General, and Administrative expenses. We account for intersegment sales at market prices. Corporate assets consist mainly of cash and cash equivalents, general office assets, and miscellaneous other assets.

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

 

The segment breakdown of Goodwill is as follows:

 

 

June 30,

 

 

March 31,

 

 

 

2023

 

 

2023

 

 

 

(dollars in thousands)

 

Cement

 

$

229,857

 

 

$

215,781

 

Concrete and Aggregates

 

 

40,774

 

 

 

40,774

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

394,787

 

 

$

380,711

 

 

The increase in Goodwill in the Cement segment is related to the Stockton Terminal Acquisition. The purchase price allocation is still in progress, and may affect the recorded balance of Goodwill when completed.

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 June 30,

 

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Revenue

 

$

54,246

 

 

$

52,630

 

Gross Margin

 

$

8,538

 

 

$

12,026

 

Earnings Before Income Taxes

 

$

6,364

 

 

$

10,272

 

 

 

 

June 30,

 

 

March 31,

 

 

 

2023

 

 

2023

 

 

 

(dollars in thousands)

 

Current Assets

 

$

90,831

 

 

$

88,562

 

Noncurrent Assets

 

$

127,081

 

 

$

124,503

 

Current Liabilities

 

$

32,811

 

 

$

29,434