Eagle Materials (EXP) 26 Jan 232023 Q3 Earnings call transcript

Good day, everyone and welcome to Eagle Materials Third Quarter of Fiscal 2023 Earnings Conference Call. This call is being recorded. [Operator Instructions]. At this time, I would like to turn the call over to Eagle's President and Chief Executive Officer, Mr. Michael Haack. Mr. sir. ahead go please Haack,

Thank you call This Eagle conference Welcome Michael Good our third morning. for XXXX. to quarter Haack. Materials Drew. for is fiscal

Bob our Joining Development, Corporate Financial Craig today Communications. Vice Kesler, me Officer; of are and and Stewart, Strategy, Executive President Chief

glad are be today. with We us could you

slide made to connection go click the link with eaglematerials.com will to call. To There and presentation be this webcast. the a please in access it, on

covers note statements from While disclosure cause our risks you're slide slides, the during cautionary These to please those forward-looking call. that and the call. accessing are made statements differ could during the results regarding first the discussed to uncertainties this that subject

end of press information, please our to further which refer the is disclosure, release. For at this also included

by exceptional in our growth year-on-year, this over repurchase needs. total return $XXX and enabled to This flows we in operating strategically. last EPS XX%, and the margins also for continued this comments to a years was to This want and businesses XX% us quarter reflects Financially, EPS of quarter, pricing improvement $X company three in billion. bringing operationally, strength every shares million over up growth nearly excess our segment. my which start our shareholders opportunities our up Eagle exceptional I cash cash financially, revenues, reflects stating that the Materials XX%, of of our growth record today achieved tremendous to

as culture from for focus that employee I'm our Eagle caring injury that Operationally, achievement one rate. and proud to injury company and each a every in of of, lost This have we history terms of achieved the other rate from the both years employees. recordable safety we fellow best at in stems protecting performance is ensure of result most time

to the progress consistently of but made, our we from year team, have am the thank to truly achieve peers. focus personally proud I this industry metric, averages this everyone and this result. want well on separated Eagle been below their We we ourselves have for

Two grades ago, PLC. our be XX% all state almost on I updated other this that of PLC. approximately PLC. We are by Adaption enables production to was environmental that State talked PLC us, clinker forthcoming given that DoT and because report. I making or construction company's priority Cement full to of our operational can This past carbon formally confidence and us cement us strategic construction-grade progress has of and shared important our social make our an goals, priority our needed. quarter progress, for more we would quarters the also our across investments sold on XX% cement and rollout operational about go Very intensity. I'm there environmental not cement were scarce are matters disclosure our this our progress for Limestone to we'll that sales shortly, a it is happy updating also priorities. This make in is adoption highlight in and reduces and are further immediate I approval One and the conversion today, have board XXXX. long-term aspirations in Portland

see we this did foundation even say not better record year. and exceptionally have if for particularly that this calendar year of exceptional conditions the Now year. provide heartland some very a the business uncertainties in Current December are macro me enter prospects notwithstanding obvious our Materials, network. weather, the wet coming I would XXXX for let to the the about turn Eagle backdrop. quarter across can results entire been optimistic the about I

sold is strong, out not delay. position As conditions, a a relatively Notwithstanding these temporary just build position. no cement us reminder, does demand interruption means virtually and an imply with wet opportunity demand to weather in it inventory destruction, leaving

activity robust. of the construction since side Current busy. the for XXXX. home operations of business, number On highest at Wallboard multifamily The our example, units level is remain remains the light under construction,

Of of will around is many our key minds housing activity uncertainty the and question today mean. the course, on ahead what

Let these the offer me following on perspectives uncertainties.

I have as stated geography matters. First, before,

have U.S. serve enviable system built Our heartland us in years. that the we well will coming

change where to are from see cement, this hard the for and would to fundamentally the This picture. and stems are underway the into cement visibility the today fact picture that is decline better allocations a for give demand There Specifically, horizon that on it frame. next midterm. fund scenario over a infrastructure U.S. over time us demand well three-year existing or this would few State cement Federal substitutes

or demand cost if and expansions for meet is as in in very heartland their to this make be High best alter U.S. add very picture be and to tension time remain to industry, pricing or as that little for will U.S. ends fundamentals to are in required another of midterm and increasingly U.S. the the U.S. work in and degree a in expensive the the permitting the will the addition if one to terms imports have even efforts materially will is the to cement will for enough cement put project the These heartland high clinker well-positioned transportation to frame, of Barriers the us support not the imports capacity they see to use. tomorrow. U.S. precious U.S. go supply Again, not expected front further this producer, so. supply-demand manufacturers case, past. the I the Even could change cost. would cement midterm. to no relation additional to very heartland. builds up over both were supply demand plant construction At in new highest change supply,

and residential and Now uncertainties the of Gypsum in these and other to welcome It is are we But remodeling, last see Mortgage is demand. are saw modulating repair is significant highs let's that construction. single that to the rate the among mortgage most business, quarter. construction, specifically Wallboard turn residential Wallboard. off the half key in our for discussion commercial Gypsum used multifamily rates construction. we

I or and may Powell whether uncertainty economic housing "I a we're quote, scenarios between expressed household it's mainly have gap deep think going have or I now And housing he if knows stock. when going demand think don't midterm, and to for not. over the to be of said the imply do, not." recession one sizable by older whether Many sustained growth best Fed demolition anyone right driven and supply the a and we Chairman

rates, long homeowner cause term their well of the there prime age number repair the housing the activity. where buyer the record homes. homes may and put inclined The supported outlook bottom With average higher optimism midterm around uncertainty their is stay demand demand for improve some entering and is for obvious as and stock The relates homebuilder equity for line for the construction to by seems that remodel years. light demand and we housing it see home to term by be U.S. side the near and especially is single-family homeowners It interest activity. remodeling with of

to manufacturing the Gypsum Wallboard see limitations. supply to raw due supply turn material the to industry we response limits supply we broadly in If side,

important have beneficiaries are, of broad are negative trend, emphasized in we before, it. we we insulated the from implications As fact, and of this

plant uses very decades gypsum secure a many our long-term own we of natural gypsum supply and that synthetic has one agreement. As and

the XXXX important There frames, thereafter, in is shortly through Gypsum Wallboard pricing industry both we and gypsum situation demand those is pricing and instructive ahead is XXXX supply XXXX, capacity price at In here. cases, time which the prior saw another have it and XXXX history increasing was through industry raises met XXXX In servers aspect of what through that about with this increasing we to time. began for is for raining. as saw expansion, market significant pricing the again deflation. progress culminated XXXX periods, demand question we the understand In significant also Wallboard. seen among In

in longest to is retirement the plentiful of cheap. capacity believed history use scrubbed, power XXXX several does to being plants power housing This among we of proved lower-cost fact for hence, the which U.S. which case the not be reason about be plant, post gypsum. would assumption be massive And the continuing. as reasons. the other In of wrong of the take entered synthetic produce deepest was was which gypsum, XXXX, construction time does gas, and and synthetic greater synthetic is and recession at natural One coal-fired in gypsum advantage added is to not need reason

we years, have material expansion. capacity recent seen In not

should have not also Wallboard a gas cost is This think that we plant we businesses, key have existing for seen we both add natural economically to lower ability unappreciated some stemming expand for tailwinds will that the of plants. production of inputs, in and for I constraints, our fact, which observed of while. the from Notably, the outlook significant OCC secure shaping provide materials should margin factor raw I enough new capacity from support. to or a In today. the some is benefit a

following of I well for Regardless to brings, this positioned the believe what XXXX succeed. Eagle reasons. that I confidence Materials have is

First, we know to navigate how uncertainty.

every of are construction to We longest low-cost in has year. U.S. widening. attributable sustainable highly history and this recession that very positions deepest our are one which largely have is the competitive in by space a few arguably profitable and remain the navigated proved standpoint producer being our This from and

for of the in margins the the vicinity pretax and XX% enterprise widening. competition Our the are is with gap

are businesses generators. our strong Second, cash flow

on decision-making cash. strategic making of heavily use focused is the Our this best

good my are for confidence, capital reason third The allocators. we

We our growth are believing financial strategic highly the return committed that and to core growth meets in criteria.

commented the $X and side over shareholders earlier, three last through nearly business repurchases and dividends size of heavy as years. I our in share recent have tripled of years the to returned the billion We

quarter. to Our for With of in today me review financial our on it XX% a remains and stands let turn vicinity over that, the return of Craig equity industry-leading.

Great. Michael. Thank you,

Third quarter a prior an of increase revenue the was from year. $XXX million, XX% record

from Northern prices prior the reflects was our reduced were and our down XXXX. sales strong fundamentals to in in volume. both share reflects per increase XX% higher EPS prior peak and The increase record Wallboard business down year cement The shares as the also the as nearly well Diluted This Cement during Wallboard diluted sales XX% up revenue the X%. Fully resulting from count Colorado, in increased increase XX% was program. repurchase contributed and earnings share acquired from the quarter. share Excluding year. Wallboard a from $X.XX,

volume In business the cement lower by to in higher and now Northern Aggregates from sector, revenue prices cement sales includes revenue performance. increased sales were segment weather Turning our this from and Concrete down earnings our offset acquired segments, quarter. partially during which cement partially inventory prices Cement volume and materials X%, Colorado, conditions heavy sales higher reflecting XX% prices. XX%. resulting sales Operating levels also lower lower reflecting volume and higher difficult and and XX%, Cement by increased declined costs, offset much

the Moving Light slide, as in to $XX volume. prices in sector the Materials increased Materials Operating on input higher higher and offset the XX% by net sector next helped prices. prices our Wallboard increased earnings sales sector driven higher sales XX%, sales revenue million to Light to

as Looking disciplined our flow, which capital very we continue cash a allocate way. and in in Michael highlighted his strong now at generate to flow cash and remarks, remains strong

During and capital million $XX to improved from million $XX the to flow quarter, decreased million. cash $XXX operating X% spending

the $XXX repurchased million our repurchase X.X X.X% have of of outstanding. shares and million a $XXX paid Year-to-date, common or remaining to quarterly X.X dividend, returning approximately shares current authorization. under repurchased during our also our shares XXX,XXX stock of million we our have currently shareholders We approximately million total for quarter. We

of end quarter we'll flexibility. and question-and-answer meaningful us the ratio million, times. December debt-to-cap Total a the Thank today's and with million Drew, of move XX, at XXXX, At debt-to-EBITDA our at ratio We Finally, on net ended quarter providing look approximately maturities, now substantial our was with we hand. near-term $XXX was at cash you capital have X.X the leverage the liquidity attending session. to net our remains financial structure. call. no $XX debt committed for XX%

Instructions]. [Operator

go The with Trey first question Stephens. comes ahead. Please from Grooms

the -- volume nice think lower in was to and inventory especially the weather, with how to into mitigate much volume quarter, the morning that well us really impact issue, understand impacted expected. then was well. obviously Can mentioned guess, and the inventory quarter, in the move forward or work maybe you levels lower able help in and and good But much will -- as we was build impact and you And impact were there Cement, much on that, an year-over-year how volume these help Hey, I first weather as the quarter, Craig, lean given pretty there these some weather the you spring? it the quarter, on headwinds. for your going the maybe continue how I inventory

Good comparison, question, Trey. a and I inventory levels quarter, both year think it's of where terms terms a versus in in pretty of ago this Yes, this of year. were we patterns weather unique

to the If late month last was inventory the And you the us and is year, through allowed really And we December. recall, entire winter of didn't just to really levels. then in start little different a have near December. sell weather pattern this

just So quarter. this comparison unique think a for I year-over-year

the to issue are in this one growth volume remain to inventory cadence I quarter sold kind think typical we sales just and don't by you'll see is I continue our thing. more of where volume is into of but the get type as back out, variance tough we as come think a

it. Got

Okay. sticking that. for And then still with of helpful. super Thank Cement. kind you That's

have you thus Is those directionally your on here been going place So any Cement how maybe weeks early far? that in on there January few increases read guys are in have I now. a price for even now guess, increases market,

When Trey, working increases look the the still some expecting. this dynamics, is you at our We're have supply-demand price double-digit with we're network. with we but customers, dynamics, supply-demand Michael. Yes. what that's through implemented across

taking a on. Appreciate thanks will Okay, questions. I pass it lot. you the

The next comes ahead. Brent from go Davidson. D.A. Thielman with question Please

Hey strong, Great guess, joint from to headwind in earnings there? really anything Craig, on volume. back quarter thanks. I contribution the snapped pretty Hey, Good particular was the well. venture there Is despite to morning. as point the

Yes.

consistent, I we we think, businesses couple operations of quarter terms the look, that in profitability. as more of to pretty had start last believe had turned we turnaround a said and in there the see when quarters, the become operational some we and on issues you quick these

has So make that the operation seemed that term. to

just of question, new Okay. mean, I mean price Great. think the of realizing And sort term, the I'm how winter ability curious, in dynamics short realize is then I that? this supply/demand Cement to about do guess, back sort to harsher your Trey's impede these year in you I increases

fall we into the levels. No. the at time at When low went look we it, winter inventory frame frame time very and

And of really, I so that delays in comments, the use said the product with my it. weather as just really

fundamentals with the winter any Supply drive see business. it. forward don't we for going So impact that weather issue demand and will

of competitive within your around play seen Wallboard. Michael, you I And your sort just Have Wallboard your this competitive be changes if appreciate all Okay. wondering advantaged one disruption very of in business? sort footprint, cost cost then you assets those of on seen around -- just either environment, comments that any in in just things, structure, any competing lean those valid. as dynamics markets in, of you've the your can't sorts

Sun located with we're plant you to not third is cost in material way when our structured, located. don't We're have Eagle raw it. the love supply. where we're control we how is at I own dependent how our regions. for in in Belt compete structure love We any any these that parties any markets. disadvantaged No, look on I

Okay, alright, you. thank

question next Citi. Please ahead. comes from Anthony with The Pettinari go

you morning. On sounds the know markets your that Good is starting you the volumes just you of seeing impact? I'm understanding infrastructure and is IIJA wondering maybe [ph] going. weaker just don't Are through it activity are see despite residential outlook past or cement Cement, issues. and flow end positive sort pretty that wondering, spending always replace And demand and like to

that a bulk of no you starting are the markets. spending projects. of to and funding different To your has are continued and has the impact those ways. the There's It's hear planning individual financing top that to over infrastructure very have spending years, out federal Yes, doubt point, anecdotally, hard last starting several is going our exactly the sometimes. on individual supported Anthony, what's of Look, you monies to that is parse that spending taken project an robust forward. to But effort couple remain state in good question. in

to in underway. see the very to are side these also business that strength that large do get out, I'll and recovery well. construction very in activity, our markets around just the of we So to continue especially of very, some very, nonresidential point continues projects starting private

very just And thought you wondering the year benefit sustainability could is the Okay, that's and And dramatic, one sort accrue helpful. that? a OCC lag what I'm the there? the you if then of margin on from remind maybe the mean and I just can decline side. quick pretty drove you in of Wallboard last maybe that there Paperboard us what just was that of and kind late

Yes.

as So within lag the is the pretty you quarter, saw itself. paper quick this business

the what quarter as that to does large in XXXX, going and into improvement business. then to or I'm international and a It has in what more been XXXX a But the overseas and But little calendar A the paper lag these has certainly fiscal from normal XXXX. a calendar sustainable, spike the of reasons OCC why say, lot wasn't majority relates So year a that ago, up levels. XXXX, contributed look are into a prices business. and headwind around Wallboard profitability turned take two probably bit OCC the we fiscal we our generation saw prices and purchases. down of to go forward

Okay, will it helpful. turn I over. that’s

Sachs. ahead. comes with The next go question Goldman Please from Jerry Revich

hi, Yes, everyone. good morning

Jerry. morning Good

when talk could you your smaller. I'm margins wondering about Cement just if footprint was

do you in to to that were have margin business this of price that think that And level cycle? up increases approach the what you wondering in could now, you ago, able years get XX XX% I'm margins. Some you place folks

than so prior improvements the we the focus how in over I that say the we can distribution operationally. to what make and or that's think would cycles, we operating in network, in actually logistically the efficiencies, many different And we've whether we've day, the I that's a last at or the again, cost acquisitions that lower have improve Look, that's from and and continued Jerry. a of decade were perspective just made end on, Yes, system where today margins. ways, can we

just in bit a maybe there. Craig, little to And the pencil cap

to pricing the put about expecting margin the XXXX? calendar us for about just inflation you context that's talk you've Cement, spoke taken, expansion You you're can into in of feasible level that level the just of actions in

Yes.

in been we around saying cement inflation of some the generally to prices last and we've quarters, As Cement continue pressures fuels couple still that's solid and do see electricity. energy

So we expect XXXX. that continue to fiscal into

than to the more like inflation that see done energy continue pricing we have around cement. place XXXX. have we think in I fiscal and should we'll offset Now in that But here some

then cadence, to super. lower volume on whether were point around volumes seasonality. maybe than points Okay, And your sequentially the normal five your

just skew might off the business the pieces, down moving at through look current make where past we in that of of high inventory months based with and look rate like and etcetera it any that June, March run And on shaking sure I single-digit there still in As range the just performance? seasonality shipments that aren't to normal has want cadence that are does out normal six year-over-year. is running seasonality the

out exception one about that we've of with facilities. producing Cement a we've Jerry, and selling this begun Portland talked there, lot our product

out that ramp should up year, coming some incremental continue which of you'll see us this to volume facilities. think over I give

to that. we be generally, offset sales one conditions, continuing come that but of right, volumes by, lever sold-out growth in the will tough PLC be we're in might be pull you're able that So have around some to do to given to

Super, the discussion. Thanks. appreciate

Stifel. comes Please next ahead. Stanley go The from with question Elliott

just This markets a similar mean, seeing I year, you what Hey good think question. mentioned you're do you of the in and of for cement I to there? of allocation. everybody. past Thank were going a curious on you kind guys level high we're sold being morning dynamic lot guys sort out calendar but XXXX, know see

year, how this plant and and supply to similar be our key we of great right keep a going as because we currently will the very think each into as next is -- going can where question it's year, to out I demand there. be and is we're much now, our Yes, demand last the to running plants is get

later demand this is So the probably some maintain as year. in there allocations think will which as profile to year going long this be maintains, we

a or back some the buying talk little in what's happening you're an maybe shares you about what could versus pursuing now here acquisition M&A and And the levels? of these seeing marketplace at kind of your bit right bias --

Yes.

look say. at as we So everything we

we buy, how are network. it disciplined fits what very also into We our will in

could it's just during look to done have You when our market. the we would -- see we've the in extended the anything sold-out not where market. past footprint, that positions, now, distribution on much are where quarters we there's as right It's businesses transactions, at comes

see So market. like bought the market where for you we to at to said, makes aggregates positions in we strategic meet to continue look sense anything has side, We Those look at will to It just and comes the are the our with I pivoted criteria. we things that continuously, Eagle. can logistics Denver the that Nashville acquisition.

guys, Perfect of very luck. you best and much thank

next comes The Please Thompson go with from Thalhimer Davis. ahead. question Adam

think non-res in non-res wanted regions and morning particularly you projects. something, to like guys. Craig, about seeing follow seeing you I Hey, up on that that it are Are Hey projects, everywhere? or said large specific good you I large

large it's pretty Adam. on-shoring broad-based, And our we've of pretty Whether battery the in again, semiconductor broad-based. it's manufacturing Yes, very types seen facilities, those of facilities, that the markets.

of do comments going decline Okay. do volumes pricing that, if even lack see actually entering little a of of staying And Are see this into the a some kind you you pricing little bit -- bit flattish? of market a what's the then Michael, about Wallboard you soft the new implication patch. you capacity made

into into the And the at with is demand on look that is board it's everything, how it. you and criteria much all the inputs When going of when you market. supply one --

we both markets seen debates with analysts with see -- should seen or the in at where been we industry the that cycles, years, is expansion and of we there's different there's today it. we added, expansion added. capacity been what say, and capacity I when seeing previous on know don't have are Wallboard I just not And look us So previous we've not years, capacity

industry in it We with much the a since different cycle was that's happened than past with today lot consolidation also Wallboard a of last that have it. the

see do this than different I cycles. So a animal time previous in

your lastly, prices think little per then QX. And cost you trend down down? in that Wallboard bit Do sequentially went a unit gas can continue coming with

[ph], driven a gas did here here very Natural under energy more a certainly come we last weeks. basis, of Yes, few that importantly see and couple the sign. months last sequential Adam. the in and Yes. On prices down, good pressure over was has been

and saw you freight just freight -- a That we look, doesn't level, happen down I'll very at So often. also tick slightly. tell

So of yes, turn to those again around. saw been some we would headwinds year have starting this

Okay, Perfect. thanks guys.

go with from Ng comes ahead. question Please Jefferies. next Philip The

of through any thinking the on shape demand? the At backlogs carry color will But early you're volumes near be the that we're Michael, the guys. Wallboard it, the how year hear great think in it's color Wallboard to Cement. to don't just to the on expect the calendar tougher what in maybe Well, medium is XXXX, calendar term, of the year of Hey call in housing parts given down about terms hearing backdrop? least in year. industry you term, here about Any how

in some term comment question. point the the Yes, great is a to Phil, I'll in things look comments, When at I near my we're closely. it very it's monitoring

foundation has said, As a into been with going have this we it. year it. consistently Demand with great strong

with do, However, else starts, we guys do monitor everything as housing you it.

term. than demand around us. company takes and we that are then But the we midterm But near positioning the more or the that be that. going is near-term could produce concern now, react strong, the market what does to for quickly where now, producing we're to demand, can the see Our we right the we'll and term right long is change, if

the have some out Michael, of note, facilities Wallboard that guys on lowest And you there. cost

do things had the side, of If already? pivot are you what you just a your profile guys the cost on can some low given cost

Yes.

business. each to So not by able market cost With input which Wallboard ship -- our facilities, to with demand ones how facilities. know cost-intensive with is satisfy we it. a been the structures we and with significant to it. We've of flexible. add been operation run able We monitor all which that it's to of the very modulate everything and We've very the just be not it

So of we markets, and I of our has been leave plants watch each serve needed. won't for modulate you that where as closely now, strong. each we demand is the right But then

those So but if we're happen, prepared implemented for those haven't we those.

Got you. for one And just last me. quick one

Craig, on on the through us step-up, bit you're Because the Cement. calendar and think for front, a So help XXXX. that then energy prices, gas hedged guess, I solid fuel for I think,

a it for have fairly but of on prices think starts full soon. year, hold kind the I to you ability I think to the resetting

little you're a how us give currently? set just on up So color

Yes.

fiscal again, a fuels, good is higher past And for within have in paper -- for side this for within effectively we locked we the Wallboard hedge And segments. prices -- So solid than at natural but which and gas, where XXXX were position we're cement are year. most for the of on the albeit not hedged. our overly year, more prices

are levels. them lower these So continue some expect enjoy at prices and these we to lower to enjoying of

you hedged gas? for how on color are that Any

fiscal as around It's XX% into XXXX. or go we so

Okay, great. guys. it. Thank you Appreciate

question The go James. Tyler Raymond ahead. from Brown next Please with comes

guys. good Hey, morning

Good morning.

OCC and prices lag, into and maybe we kind XXX that go wallboard paper got move as your on help what the that of QX? back on percentage points, the questions parse even margins. Wallboard of but Can given I to to more of the help could pretty a see know us fiscal I basis Wallboard of costs and side, couple a maybe impact are OCC a you just Hey, little we there's specifically low, remain more

Yes.

So lower of really on OCC impact business. didn't of in the an Wallboard the terms they prices, have much

the it first on As a Wallboard ultimate shift as business within pricing basis. over two they're to to purchasing daily itself the paper lag. quarter I The to manifests one happens a the business said,

improvement didn't for we So That to yet that OCC. much to this have do come that saw still Wallboard quarter business. the with really margin is

Okay. seasonality, Wallboard to to near-term I I want is QX, like are there? just I be any year-over-year down if January focused, still think helpful. there And there's talk super normal super could just any seems color out tracking, how volume. volumes just don't color That's you some that and about it in questions I be on positive, volumes mean But want use Wallboard

comments said, orders during Michael's I of Look, remained little steady and into as shipments think January. Yes. even the think and have are bit a we I early here quarter

So as change that. we has been haven't in Michael seen saying, any

at to around pricing on guess, itself weakness durability lower you've mean, an horizon be I at rates any on. kind starts deflationary there, the And are doesn't Okay. come, least I both good my a just In I this what last looks to term. on view, minimum at Two, in diesel to Three, in they're of the Wallboard lend more the back one ability in one, they're I four, a comes be again just be or still It to the term. kind near my But of to, idea think pretty big may doesn't the and longer. intermediate margins saying a minimum, for fading. got the margins that labor look around outlook XXXX. going the year kind benefit question. disinflate that goes Wallboard? peaked OCC as absorb And to here, prices of mean picture in freight gas have

our again, the gypsum very just I add and Look, we Tyler, the unique and think for good position of us. some I you pointed supply around to trends that, for surety that have. Yes. industry for out would positive

you more So, as Eagle mentioning were that many to us. reasonable things ideas. surety supply at it the a cost of that these But for there's of macro were relates general other, and

business, we well yes, our is business very positioned. Wallboard So think our

Yeah, perfect.

guys. thanks Okay,

Next ahead. question Please Truist. Keith comes Hughes from go with

indication, how light, this heavy, commentary quick questions on been from directional my of any feel you have heading would just positions of one What on kind inventory Most you. Thank customers are distributor your hearing into season, but Wallboard. they about great? their be one asked,

in the really degrades kept Keith, not inventory there's it lot Wallboard perishable a of is at it's the channel. so of a product outside. the if end day,

you're talking weeks. So about

always this it's -- and time So at year. of hard

have You you exited January the disruption. you're weather holidays where and can into

an know So of that's much if issue. I don't

tight Okay. And amount market Cement the we term, issues Texas, on saw last of get the there of been in couple earlier the of the back of it a quarters. down discussing? you've got you've come discussed wouldn't particularly particularly tons last and couple JV, the has we couple longer secondly, in given years. to I the But of in reason ago, years tons the any kind is know

on Well, in yes, need lenses we to that I different two -- that. look Keith, at

tons, manufacturing we've consistently. operational we that problems we've behind of been talked had some out our the think are sold For we've And about us.

So the the operational and manufacturing be tons would side there.

procured We that that moving, was are also we had a that a up. has side larger side dried material

be more will over buying we year. were been on So procured where reselling the growth it's side consistent with and this past tonnage where the

you. Thank helpful. that’s Okay,

This remarks. like concludes turn Haack back I to session. to any for our closing question-and-answer Michael the would over conference

calling Drew. our today, We you you, look we'll in call. and forward at talking appreciate everybody to Thank to next

now for has conference you today's attending concluded. presentation. The Thank

disconnect. You may now