Eagle Materials Executive Insights: Trends and Pricing
On Wednesday, Eagle Materials, Inc. (NYSE:EXP) reported its fourth quarter earnings and discussed the following topics in its earnings conference call. Take a look.
Trey Grooms – Stephens Inc.: So, can you talk a little bit Steve, I mean you touched on it as far as kind of how March and April kind of look, but can you maybe quantify a little bit more kind of what the trends were kind of as you moved through the quarter and then obviously April and what you’re seeing thus far in May?
Steven R. Rowley – President and CEO: Sure, cement has remained very, very strong. The volumes are 25% to 30% up for the first six weeks of this quarter. We had a price increase in Texas of $6, it’s been fully implemented, price increase of $8 in Rocky mountain region, the majority of which has been implemented. So, pricing and volume, where volume is strong in all of our markets, pricing improving substantially in two of our markets, so very, very positive about cement going forward. On the wallboard side, volumes, we’re just very pleasantly surprised with the current levels of volumes and are trending higher than the first quarter. We just remained focused on quality service and quality products in our core markets. So, again as we’ve mentioned before, price remains more important to us than volume and service to our core markets remains more important to us than volume.
Trey Grooms – Stephens Inc.: With the wallboard pricing, you guys did a great job implementing that and pricing up nicely in the quarter, are you seeing any signs of it moving around it all here, as we’ve gotten into your fiscal first-quarter?
Steven R. Rowley – President and CEO: We’ve said before that we’re really focused on price and pricing factor has really remained unchanged since the first of the year. So we’re very, very pleased with that and again, pleasantly surprised at the level of volume with that same price.
Jack Kasprzak – BB&T Capital Markets: On wallboard pricing, do you think your average realization will improve a bit in the June quarter versus the March quarter, it was obviously up quite a bit in the March quarter, but maybe didn’t seem like it was dollars up as much as the price increase?
Steven R. Rowley – President and CEO: So the pricing is just slightly better if you look at March and April as compared to the average for the quarter, so I think pricing for us and we’ve really gone through the majority of any backlog of job quotes we had from the prior year, so pricing is pretty stable right now and we believe that it will stay that way, no reason not to, because we still are very, very happy with the volume levels that we are currently supplying into the marketplace.
Jack Kasprzak – BB&T Capital Markets: So you are obviously suggesting the June quarter in terms of wallboard volumes as a better trend and what we saw in the March quarter, but could you just talk about the factors that led to the decline in the March quarter for wallboard volume?
Steven R. Rowley – President and CEO: Certainly, a lot of that was – ahead of the January 1 price increase, there was a large volume swing in December. So, that the biggest change in volume was January was little slower. However, February picked up nicely, March improved nicely as well, but I can tell you it’s even improved beyond that in April and May. So, volumes are improving and the pricing is the same as it was in January.
Jack Kasprzak – BB&T Capital Markets: The price increases in cement that you referenced for the summer in the West are those in the $5 range as well?
Steven R. Rowley – President and CEO: That’s correct.