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SEGMENT INFORMATION
 9 Months Ended
Dec. 31, 2024
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 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 to build, expand, and repair roads and buildings; and all repair and remodel activities. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. We distribute our products across many United States markets, 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 our Texas Lehigh joint venture (The Joint Venture)), two slag grinding facilities (one of which is operated through the Joint Venture), and more than 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 25 readymix concrete batch plants and seven 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 December 31,

 

 

For the Nine Months Ended December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

295,400

 

 

$

308,654

 

 

$

987,342

 

 

$

998,437

 

Concrete and Aggregates

 

 

60,716

 

 

 

61,186

 

 

 

195,511

 

 

 

201,526

 

Gypsum Wallboard

 

 

209,493

 

 

 

200,969

 

 

 

642,294

 

 

 

629,299

 

Recycled Paperboard

 

 

56,158

 

 

 

47,053

 

 

 

161,175

 

 

 

135,397

 

 

 

 

621,767

 

 

 

617,862

 

 

 

1,986,322

 

 

 

1,964,659

 

Less: Intersegment Revenue

 

 

(37,316

)

 

 

(32,346

)

 

 

(111,428

)

 

 

(99,356

)

Less: Joint Venture Revenue

 

 

(26,426

)

 

 

(26,683

)

 

 

(84,561

)

 

 

(82,713

)

 

 

$

558,025

 

 

$

558,833

 

 

$

1,790,333

 

 

$

1,782,590

 

 

 

For the Three Months Ended December 31,

 

 

For the Nine Months Ended December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Intersegment Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

9,084

 

 

$

7,804

 

 

$

29,748

 

 

$

27,192

 

Concrete and Aggregates

 

 

4,311

 

 

 

3,414

 

 

 

12,138

 

 

 

10,235

 

Recycled Paperboard

 

 

23,921

 

 

 

21,128

 

 

 

69,542

 

 

 

61,929

 

 

 

$

37,316

 

 

$

32,346

 

 

$

111,428

 

 

$

99,356

 

Cement Sales Volume (M tons)

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

 

1,541

 

 

 

1,663

 

 

 

5,156

 

 

 

5,470

 

Joint Venture

 

 

161

 

 

 

161

 

 

 

517

 

 

 

496

 

 

 

 

1,702

 

 

 

1,824

 

 

 

5,673

 

 

 

5,966

 

 

 

 

 

For the Three Months Ended December 31,

 

 

For the Nine Months Ended December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

86,763

 

 

$

105,566

 

 

$

291,821

 

 

$

301,056

 

Concrete and Aggregates

 

 

(1,397

)

 

 

1,760

 

 

 

588

 

 

 

13,434

 

Gypsum Wallboard

 

 

86,393

 

 

 

75,063

 

 

 

270,510

 

 

 

251,625

 

Recycled Paperboard

 

 

11,041

 

 

 

7,524

 

 

 

27,585

 

 

 

22,316

 

Sub-Total

 

 

182,800

 

 

 

189,913

 

 

 

590,504

 

 

 

588,431

 

Corporate General and Administrative Expense

 

 

(20,818

)

 

 

(14,201

)

 

 

(54,346

)

 

 

(42,456

)

Other Non-Operating Income (Loss)

 

 

1,381

 

 

 

1,019

 

 

 

4,788

 

 

 

2,837

 

Earnings Before Interest and Income Taxes

 

 

163,363

 

 

 

176,731

 

 

 

540,946

 

 

 

548,812

 

Interest Expense, net

 

 

(9,061

)

 

 

(10,128

)

 

 

(30,459

)

 

 

(32,571

)

Earnings Before Income Taxes

 

$

154,302

 

 

$

166,603

 

 

$

510,487

 

 

$

516,241

 

Cement Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

$

81,776

 

 

$

96,281

 

 

$

269,842

 

 

$

278,266

 

Joint Venture

 

 

4,987

 

 

 

9,285

 

 

 

21,979

 

 

 

22,790

 

 

 

$

86,763

 

 

$

105,566

 

 

$

291,821

 

 

$

301,056

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

35,609

 

 

$

11,571

 

 

$

102,384

 

 

$

38,288

 

Concrete and Aggregates

 

 

4,668

 

 

 

1,207

 

 

 

18,795

 

 

 

10,281

 

Gypsum Wallboard

 

 

2,560

 

 

 

7,386

 

 

 

9,925

 

 

 

23,866

 

Recycled Paperboard

 

 

4,309

 

 

 

1,868

 

 

 

12,425

 

 

 

7,733

 

Corporate and Other

 

 

224

 

 

 

403

 

 

 

3,446

 

 

 

7,680

 

 

 

$

47,370

 

 

$

22,435

 

 

$

146,975

 

 

$

87,848

 

Depreciation, Depletion, and Amortization

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

23,029

 

 

$

22,514

 

 

$

68,853

 

 

$

66,380

 

Concrete and Aggregates

 

 

5,261

 

 

 

4,857

 

 

 

15,074

 

 

 

14,850

 

Gypsum Wallboard

 

 

6,414

 

 

 

5,611

 

 

 

19,338

 

 

 

16,620

 

Recycled Paperboard

 

 

3,723

 

 

 

3,694

 

 

 

11,082

 

 

 

11,121

 

Corporate and Other

 

 

807

 

 

 

792

 

 

 

2,314

 

 

 

2,376

 

 

 

$

39,234

 

 

$

37,468

 

 

$

116,661

 

 

$

111,347

 

 

 

 

December 31,

 

 

March 31,

 

 

 

2024

 

 

2024

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

Cement

 

$

2,115,736

 

 

$

2,042,499

 

Concrete and Aggregates

 

 

259,266

 

 

 

225,485

 

Gypsum Wallboard

 

 

409,056

 

 

 

432,122

 

Recycled Paperboard

 

 

168,690

 

 

 

170,832

 

Other, net

 

 

90,922

 

 

 

76,081

 

 

 

$

3,043,670

 

 

$

2,947,019

 

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:

 

 

December 31,

 

 

March 31,

 

 

 

2024

 

 

2024

 

 

 

(dollars in thousands)

 

Cement

 

$

227,639

 

 

$

227,639

 

Concrete and Aggregates

 

 

46,534

 

 

 

40,774

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Recycled Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

398,329

 

 

$

392,569

 

The increase in Goodwill in the Concrete and Aggregates segment is related to the Kentucky 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 December 31,

 

 

For the Nine Months Ended December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenue

 

$

52,852

 

 

$

53,366

 

 

$

153,619

 

 

$

165,426

 

Gross Margin

 

$

12,483

 

 

$

19,465

 

 

$

45,948

 

 

$

51,512

 

Earnings Before Income Taxes

 

$

10,058

 

 

$

18,711

 

 

$

41,733

 

 

$

45,925

 

 

 

 

 

December 31,

 

 

March 31,

 

 

 

2024

 

 

2024

 

 

 

(dollars in thousands)

 

Current Assets

 

$

117,957

 

 

$

111,164

 

Noncurrent Assets

 

$

206,037

 

 

$

158,618

 

Current Liabilities

 

$

47,579

 

 

$

27,994