EXECUTIVE SUMMARY
We are a leading manufacturer of heavy construction materials and light building materials inthe United States . Our primary products,Portland Cement and Gypsum Wallboard, 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 ofthe United States , except the Northeast, which provides us with regional economic diversification. However, general economic downturns or localized downturns in the regions where we have operations may have a material adverse effect on our business, financial condition, and results of operations. Our business is organized into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments; and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments. Financial results and other information for the three months endedJune 30, 2022 and 2021, are presented on a consolidated basis and by these business segments - Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. We conduct one of our cement operations through a joint venture,Texas Lehigh Cement Company LP , which is located inBuda, Texas (the Joint Venture). We own a 50% interest in the Joint Venture and account for our interest under the equity method of accounting. We proportionately consolidate our 50% share of the Joint Venture's Revenue and Operating Earnings in the presentation of our Cement segment, which is the way management organizes the segments within the Company for making operating decisions and assessing performance. All our business activities are conducted inthe United States . These activities 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). OnApril 22, 2022 , we finalized the ConAgg Acquisition. The Purchase Price of the ConAgg Acquisition was approximately$121.2 million . The ConAgg Acquisition is included in our Heavy Material sector, in the Concrete and Aggregates business segment. See Footnote (B) in the Unaudited Consolidated Financial Statements for more information regarding the ConAgg Acquisition.
MARKET CONDITIONS AND OUTLOOK
During the first quarter of fiscal 2023, our end markets generally remained resilient despite external challenges, such as transportation disruptions, supply chain constraints, and increasing interest rates and inflation. Construction activity in most of our regional markets continued to outpace the national average, and sales volume in our largest business lines remained strong - our Gypsum Wallboard shipments were up 5%, and although our Cement sales volume decreased 2%, sales volumes remain historically high. 20 --------------------------------------------------------------------------------
Demand Outlook
The principal end-use market of Cement is public infrastructure (i.e. roads, bridges, and highways). Our Cement business remains in a near sold-out position. We expect demand for cement to remain strong with infrastructure investment increasing as federal funding from theInfrastructure Investment and Jobs Act begins in earnest during this fiscal year. However, despite underlying demand growth, our ability to achieve further Cement sales volume growth from our existing facilities is limited, because our integrated cement sales network, which stretches across theU.S. heartland, is operating at high utilization levels. The principal end use for Gypsum Wallboard is residential housing, consisting of new construction (both single-family and multi-family homes) as well as repair and remodel. The construction of single-family homes is more wallboard-intensive than multi-family homes. Gypsum wallboard shipments and orders currently remain strong, but we recognize quantitative tightening will likely have an impact on residential construction activity in the future. In the near term, we expect record home construction backlogs to support product demand this year. Our Recycled Paperboard business sells paper primarily into the gypsum wallboard market, and demand for our paper generally follows the demand for gypsum wallboard.
Cost Outlook
We are well positioned to manage our cost structure and meet our customers' needs during the upcoming fiscal year, despite growing challenges related to rising inflation and increased transportation costs. Our substantial raw material reserves for our Cement, Aggregates, and Gypsum Wallboard businesses, and their proximity to our respective manufacturing facilities, support our low-cost producer position across all of our business segments. Energy and freight costs increased in all of our businesses during fiscal 2022, and we anticipate further increases throughout fiscal 2023. The increases in energy costs are related to rising demand and disruption in the global supply of natural gas and solid fuels. Regarding natural gas, we have forward purchase contracts for approximately 40% of our natural gas needs at$4.78 per mmbtu across all of our businesses for fiscal 2023. For freight, several factors are contributing to higher costs, including: limited availability of trucking and rail service, congestion on the shipping routes, and the increase in price of diesel fuel, all of which have constrained freight capacity. We do not expect these factors to improve in the near term. The primary raw material used to produce paperboard is OCC. Prices for OCC significantly increased during fiscal 2022 but started to decline during the winter and spring. We expect OCC prices to remain relatively level for the remainder of fiscal 2023. Our current customer contracts for gypsum liner include price adjustments that partially compensate for changes in raw material fiber prices. However, because these price escalations are not realized until future quarters, material costs in our Gypsum Wallboard segment are likely to be higher in the period that these price increases are realized. 21 --------------------------------------------------------------------------------
RESULTS OF OPERATIONS
THREE MONTHS ENDEDJune 30, 2022 Compared WITH THREE MONTHS ENDEDJune 30, 2021 For the Three Months Ended June 30, 2022 2021 Change (dollars in thousands, except per share) Revenue$ 561,387 $ 475,770 18 % Cost of Goods Sold (410,521 ) (349,259 ) 18 % Gross Profit 150,866 126,511 19 % Equity in Earnings of Unconsolidated Joint Venture 5,098 7,970 (36 )% Corporate General and Administrative (11,820 ) (9,468 ) 25 % Other Non-Operating Income (635 ) 3,678 (117 )% Interest Expense, net (7,330 ) (6,972 ) 5 % Earnings Before Income Taxes 136,179 121,719 12 % Income Tax Expense (31,174 ) (26,392 ) 18 % Net Earnings$ 105,005 $ 95,327 10 % Diluted Earnings per Share$ 2.75 $ 2.25 22 % REVENUE Revenue increased by$85.6 million , or 18%, to$561.4 million for the three months endedJune 30, 2022 . The ConAgg Acquisition contributed$11.0 million of Revenue during the three months endedJune 30, 2022 . Excluding the ConAgg Acquisition, Revenue improved by$74.6 million , or 16%, largely because of increases in both gross sales prices and Sales Volume. The increases in gross sales prices and Sales Volume positively affected Revenue by approximately$70.7 million and$3.9 million , respectively.
COST OF GOODS SOLD
Cost of Goods Sold increased by$61.3 million , or 18%, to$410.5 million for the three months endedJune 30, 2022 . The ConAgg Acquisition contributed$11.1 million of Cost of Goods Sold during the three months endedJune 30, 2022 . Excluding the ConAgg Acquisition, Cost of Goods Sold increased by$50.2 million , or 14%. The increase was due to higher Sales Volume and operating costs of$2.1 million and$48.1 million , respectively. Higher operating costs were primarily related to our Cement, Gypsum Wallboard, and Recycled Paperboard segments, which are discussed further in the segment analysis.
GROSS PROFIT
Gross Profit increased 19% to$150.9 million during the three months endedJune 30, 2022 . The improvement was primarily related to higher gross sales prices and Sales Volume, partially offset by increased operating costs. The gross margin increased slightly to 27%, with higher gross sales prices being offset by an increase in operating costs.
EQUITY IN EARNINGS OF UNCONSOLIDATED JOINT VENTURE
Equity in Earnings of our Unconsolidated Joint Venture declined$2.9 million , or 36%, for the three months endedJune 30, 2022 . The decrease was primarily due to increased operating costs, which adversely affected earnings by approximately$6.2 million . This was partially offset by higher gross sales prices and Sales Volume of$3.1 million and$0.2 million , respectively. The increase in operating costs was primarily related to extended equipment downtime that reduced cement production in June, and higher purchased cement costs, which reduced operating earnings by$3.1 million and$3.0 million , respectively. 22 --------------------------------------------------------------------------------
CORPORATE GENERAL AND ADMINISTRATIVE
Corporate General and Administrative expenses increased by approximately
OTHER NON-OPERATING INCOME
Other Non-Operating Income consists of a variety of items that are unrelated to segment operations and include non-inventoried Aggregates income, asset sales, and other miscellaneous income and cost items.
INTEREST EXPENSE, NET
Interest Expense, net increased by approximately$0.4 million , or 5%, during the three months endedJune 30, 2022 . This was primarily due to approximately$0.7 million of higher interest on our public notes because we increased our outstanding balance to$750.0 million from$350.0 million . The increased interest expense was partially offset by lower loan amortization costs of$0.3 million due to the termination of the term loan facility repaid onJuly 1, 2021 . See Footnote (M) to the Unaudited Consolidated Financial Statements for more information. EARNINGS BEFORE INCOME TAXES Earnings Before Income Taxes increased to$136.2 million during the three months endedJune 30, 2022 , primarily as a result of higher Gross Profit. This was partially offset by higher Corporate General and Administrative Expenses and Interest Expense, as well as lower Equity in Earnings of Unconsolidated Joint Venture. INCOME TAX EXPENSE Income Tax Expense was$31.2 million for the three months endedJune 30, 2022 , compared with$26.4 million for the three months endedJune 30, 2021 . The effective tax rate increased to 23% from 22% in the prior-year period. The increase was primarily due to a reduced benefit received from the vesting and exercise of employee stock awards during the quarter in fiscal 2023.
NET EARNINGS
Net Earnings increased 10% to
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Three MONTHS ENDED
The following presents results within our two business sectors for the three months endedJune 30, 2022 , and 2021. Revenue and operating results are organized by sector and discussed by individual business segment within each respective business sector. Heavy Materials CEMENT (1) For the Three Months Ended June 30, 2022 2021 Percentage Change (in thousands, except per ton information) Gross Revenue, including Intersegment and Joint Venture$ 284,516 $ 270,255 5 % Less Intersegment Revenue (6,291 ) (7,833 ) (20 )% Less Joint Venture Revenue (26,315 ) (22,691 ) 16 % Gross Revenue, as reported$ 251,910 $ 239,731 5 % Freight and Delivery Costs billed to Customers (15,970 ) (19,042 ) (16 )% Net Revenue$ 235,940 $ 220,689 7 % Sales Volume (M Tons) 1,993 2,036 (2 )%
Average
116.34 10 % Operating Margin, per ton$ 31.28 $ 30.72 2 % Operating Earnings$ 62,348 $ 62,547 -
(1) Total of wholly owned subsidiaries and proportionately consolidated 50% interest of the Joint Venture's results. (2) Net of freight per ton, including Joint Venture.
Cement Revenue was$284.5 million , a 5% increase, for the three months endedJune 30, 2022 . The increase was primarily due to higher gross sales prices, which improved Cement Revenue by approximately$21.4 million , partially offset by lower Sales Volume, which reduced Revenue by$7.2 million . Cement Operating Earnings declined$0.2 million to$62.3 million for the three months endedJune 30, 2022 . The decrease was due to lower Sales Volume of$2.1 million and higher operating costs$20.4 million . This was partially offset by an increase in gross sales prices of$21.4 million . The increase in operating costs was primarily due to higher energy and maintenance costs of approximately$10.9 million and$8.9 million , respectively. The Operating Margin decreased to 22% from 23%, primarily because of higher operating costs, partially offset by increased gross sales prices. 24
-------------------------------------------------------------------------------- CONCRETE AND AGGREGATES For the Three Months Ended June 30, 2022 2021 Percentage Change (in thousands, except net sales prices) Gross Revenue, as reported $ 61,618 $ 44,754 38 % Sales Volume M Cubic Yards of Concrete 406 348 17 % M Tons of Aggregate 795 361 120 % AverageNet Sales Price Concrete - Per Cubic Yard $ 128.73 $ 118.19 9 % Aggregates - Per Ton $ 11.22 $ 9.93 13 % Operating Earnings $ 5,732 $ 5,344 7 % Concrete and Aggregates Revenue increased 38% to$61.6 million for the three months endedJune 30, 2022 . The ConAgg Acquisition contributed$11.0 million of Revenue during the three months endedJune 30, 2022 . Excluding the ConAgg Acquisition, Revenue increased by$5.8 million , or 13%. The increase was due to higher gross sales price and Sales Volume, which improved Revenue by$3.4 million and$2.4 million , respectively. Operating Earnings increased 7% to approximately$5.7 million . Excluding the ConAgg Acquisition, Operating Earnings increased to$5.8 million , which was due to increased gross sales prices and Sales Volume of$3.4 million and$0.3 million , respectively. This was partially offset by higher operating costs of$3.2 million . The increase in operating costs was primarily due to higher materials and delivery expenses of approximately$2.4 million and$1.1 million , respectively, partially offset by lower fixed costs in our aggregate operations of approximately$0.5 million . 25
-------------------------------------------------------------------------------- Light Materials GYPSUM WALLBOARD For the Three Months Ended June 30, 2022 2021 Percentage Change (in thousands, except per MSF information) Gross Revenue, as reported$ 216,327 $ 166,267 30 % Freight and Delivery Costs billed to Customers (42,006 ) (31,322 ) 34 % Net Revenue$ 174,321 $ 134,945 29 % Sales Volume (MMSF) 798 763 5 % Average Net Sales Price, per MSF (1)$ 218.57 $ 176.79 24 % Freight, per MSF$ 52.64 $ 41.05 28 % Operating Margin, per MSF$ 105.35 $ 82.90 27 % Operating Earnings$ 84,068 $ 63,253 33 % (1) Net of freight per MSF. Gypsum Wallboard Revenue increased 30% to$216.3 million for the three months endedJune 30, 2022 . The improvement was due to higher gross sales prices and Sales Volume, which increased Revenue by approximately$42.4 million and$7.6 million , respectively. Our market share remained relatively consistent during the three months endedJune 30, 2022 . Operating Earnings increased 33% to$84.1 million , primarily because of higher gross sales prices and Sales Volume. The increase in gross sales prices and Sales Volume positively affected Operating Earnings by approximately$42.4 million and$2.9 million , respectively. This was partially offset by higher operating costs, which adversely affected Operating Earnings by approximately$24.5 million . The higher operating costs were primarily related to freight, energy, and raw materials, which reduced Operating Earnings by approximately$9.3 million ,$5.8 million , and$9.2 million , respectively. The Operating Margin increased to 39% for the three months endedJune 30, 2022 , primarily because of higher gross sales prices, partly offset by higher operating costs. Fixed costs are not a significant portion of the overall cost of wallboard; therefore, changes in utilization have a relatively minor impact on our operating cost per unit. 26
-------------------------------------------------------------------------------- RECYCLED PAPERBOARD For the Three Months Ended June 30, 2022 2021 Percentage Change (in thousands, except per ton information) Gross Revenue, including intersegment$ 54,073 $ 43,267 25 % Less intersegment Revenue (22,541 ) (18,249 ) 24 % Gross Revenue, as reported$ 31,532 $ 25,018 26 % Freight and Delivery Costs billed to Customers (2,549 ) (1,448 ) 76 % Net Revenue$ 28,983 $ 23,570 23 % Sales Volume (M Tons) 84 84 - Average Net Sales Price, per ton (1)$ 611.87 $ 498.49 23 % Freight, per ton$ 30.35 $ 17.24 76 % Operating Margin, per ton$ 45.43 $ 39.73 14 % Operating Earnings$ 3,816 $ 3,337 14 % (1) Net of freight per ton. Recycled Paperboard Revenue increased 25% to$54.1 million during the three months endedJune 30, 2022 . The increase was primarily due to higher gross sales prices and Sales Volume, which positively affected Revenue by$10.6 million and$0.2 million , respectively. Higher gross sales prices were related to the pricing provisions in our long-term sales agreements. Operating Earnings increased 14% to$3.8 million , primarily because of higher gross sales prices, which increased Operating Earnings by$10.6 million . This was partially offset by higher operating costs, which reduced Operating Earnings by approximately$10.1 million . The increase in operating costs was primarily related to higher input costs, namely fiber, energy, and freight, which lowered Operating Earnings by approximately$5.5 million ,$2.1 million , and$1.1 million , respectively. The Operating Margin declined to 7% because of increased operating costs, partially offset by higher gross sales prices. Although the Company has certain pricing provisions in its long-term sales agreements, prices are only adjusted at certain times throughout the year, so price adjustments are not always reflected in the same period as the change in costs. 27 --------------------------------------------------------------------------------
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of financial statements in accordance with accounting principles generally accepted inthe United States requires management to adopt accounting policies and make significant judgments and estimates to develop amounts disclosed in the financial statements. In many cases, there are alternative policies or estimation techniques that could be used. We maintain a thorough process to review the application of our accounting policies and to evaluate the appropriateness of the many estimates that are required to prepare our financial statements. However, even under optimal circumstances, estimates routinely require adjustment based on changing circumstances and the receipt of new or better information. Information regarding our Critical Accounting Policies can be found in our Annual Report. The three Critical Accounting Policies that we believe either require the use of the most judgment, or the selection or application of alternative accounting policies, and are material to our financial statements, are those related to long-lived assets, goodwill, and business combinations. Management has discussed the development and selection of these Critical Accounting Policies and estimates with the Audit Committee of our Board of Directors and with our independent registered public accounting firm. In addition, Note (A) to the financial statements in our Annual Report contains a summary of our significant accounting policies.
Recent Accounting Pronouncements
Refer to Footnote (A) in the Notes to Unaudited Consolidated Financial Statements of this Form 10-Q for information regarding recently issued accounting pronouncements that may affect our financial statements.
LIQUIDITY AND CAPITAL RESOURCES
We believe at this time that we have access to sufficient financial resources from our liquidity sources to fund our business and operations, including contractual obligations, capital expenditures, and debt service obligations for at least the next twelve months. We regularly monitor any potential disruptions to the economy, and to our operations, particularly changing fiscal policy or economic conditions affecting our industries. Please see the Debt Financing Activities section below for a discussion of our revolving credit facility and the amount of borrowings available to us in the next twelve-month period.
Cash Flow
The following table provides a summary of our cash flows:
For the Three Months Ended June 30, 2022 2021 (dollars in thousands) Net Cash Provided by Operating Activities $ 124,802$ 111,121 Investing Activities Additions to Property, Plant, and Equipment (14,914 ) (11,935 ) Acquisition Spending (121,162 ) - Net Cash Used in Investing Activities (136,076 ) (11,935 ) Financing Activities Increase (Decrease) in Credit Facility (19,000 ) - Term Loan 200,000 - Dividends Paid to Stockholders (9,642 ) - Purchase and Retirement of Common Stock (109,612 ) (61,929 ) Proceeds from Stock Option Exercises 667 8,222 Payment of Debt Issuance Costs (777 ) (1,243 ) Shares Redeemed to Settle Employee Taxes on Stock Compensation (1,497 ) (1,214 ) Net Cash Provided by (Used in) Financing Activities 60,139 (56,164 ) Net Increase in Cash and Cash Equivalents $ 48,865 $ 43,022 28
-------------------------------------------------------------------------------- Net Cash Provided by Operating Activities increased by$13.7 million to$124.8 million during the three months endedJune 30, 2022 . This increase was primarily attributable to higher Net Earnings, adjusted for non-cash charges, of approximately$18.3 million . This was partially offset by changes in working capital of$2.1 million and lower dividends from our Unconsolidated Joint Venture of$2.5 million . Working capital increased by$83.3 million to$318.5 million atJune 30, 2022 , compared withMarch 31, 2022 . The increase was due to higher Cash of approximately$48.9 million ; higher Accounts and Notes Receivable, net of approximately$58.4 million , and lower Accounts Payable and Accrued Liabilities of$3.6 million . This was partially offset by lower Inventories and Income Tax Receivable of approximately$3.2 million and$4.6 million , respectively, and higher Income Tax Payable of$25.0 million . The reduction in inventory was due to our normal sales cycle in which we build inventory in the winter months to meet demand in the spring and summer. The ConAgg Acquisition inApril 2022 increased working capital by approximately$12.6 million atJune 30, 2022 . The increase in Accounts Receivable atJune 30, 2022 , was primarily related to higher Revenue during the three months endedJune 30, 2022 , compared with the three months endedMarch 31, 2022 . As a percentage of quarterly sales generated for the respective quarter, Accounts Receivable was approximately 42% atJune 30, 2022 and 43% atMarch 31, 2022 . Accounts Receivable related to the ConAgg Acquisition atJune 30, 2022 were approximately$8.2 million . Management measures the change in Accounts Receivable by monitoring the days sales outstanding on a monthly basis to determine if any deterioration has occurred in the collectability of the Accounts Receivable. No significant deterioration in the collectability of our Accounts Receivable was identified atJune 30, 2022 . Notes Receivable are monitored on an individual basis, and no significant deterioration in the collectability of our Notes Receivable was identified atJune 30, 2022 . Our Inventory balance atJune 30, 2022 declined by approximately$3.1 million from our balance atMarch 31, 2022 . Excluding the ConAgg Acquisition, our Inventory balance declined by$8.0 million . Within Inventory, raw materials and materials-in-progress decreased by approximately$3.6 million and finished cement decreased by approximately$4.1 million . The decline in raw materials and materials-in-progress and finished cement is consistent with our business cycle; we generally build up clinker inventory over the winter months to meet the demand for cement in the spring and summer. The increase in repair parts inventory was primarily due to the build-up of inventory necessary for our scheduled outages over the next several months. The largest individual balance in our Inventory is our repair parts. These parts are necessary given the size and complexity of our manufacturing plants, as well as the age of certain of our plants, which creates the need to stock a high level of repair parts inventory. We believe all of these repair parts are necessary, and we perform semi-annual analyses to identify obsolete parts. We have less than one year's sales of all product inventories, and our inventories have a low risk of obsolescence because our products are basic construction materials.Net Cash Used in Investing Activities during the three months endedJune 30, 2022 , was approximately$136.1 million , compared with$11.9 million during the same period in 2021, an increase of approximately$124.2 million . The increase was primarily related to the$121.2 million Purchase Price for the ConAgg Acquisition inApril 2022 . Net Cash Provided by Financing Activities was approximately$60.1 million during the three months endedJune 30, 2022 , compared withNet Cash Used in Financing Activities of$56.2 million during the three months endedJune 30, 2021 . The$116.3 million increase was primarily related to higher borrowings of$181.0 million , partially offset by increases in Dividends Paid to Shareholders of$9.6 million and Purchase and Retirement of Common Stock of$47.7 million .
Our debt-to-capitalization ratio and net-debt-to-capitalization ratio were 50.0%
and 48.6%, respectively, at
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Debt Financing Activities
Below is a summary of the Company's outstanding debt facilities at
Maturity
Revolving Credit Facility
Term LoanMay 2027
2.500% Senior Unsecured Notes
See Footnote (M) to the Unaudited Consolidated Financial Statements for further details on the Company's debt facilities, including interest rate, and financial and other covenants and restrictions. The borrowing capacity of our Revolving Credit Facility is$750.0 million untilMay 5, 2027 . The Revolving Credit Facility also includes a swingline loan sublimit of$25.0 million , and a$40.0 million letter of credit facility. AtJune 30, 2022 we had$181.0 million outstanding under the Revolving Credit Facility and$6.4 million of outstanding letters of credit, leaving us with$562.6 million of available borrowings under the Revolving Credit Facility, net of the outstanding letters of credit. We are contingently liable for performance under$26.8 million in performance bonds relating primarily to our mining operations. We do not have any off-balance sheet debt, or any outstanding debt guarantees. Other than the Revolving Credit Facility, we have no additional source of committed external financing in place. Should the Revolving Credit Facility be terminated, no assurance can be given as to our ability to secure a new source of financing. Consequently, if any balance were outstanding on the Revolving Credit Facility at the time of termination, and an alternative source of financing could not be secured, it would have a material adverse impact on our business. We believe that our cash flow from operations and available borrowings under our Revolving Credit Facility, as well as cash on hand, should be sufficient to meet our currently anticipated operating needs, capital expenditures, and dividend and debt service requirements for at least the next 12 months. However, our future liquidity and capital requirements may vary depending on a number of factors, including market conditions in the construction industry, our ability to maintain compliance with covenants in our Revolving Credit Facility, the level of competition, and general and economic factors beyond our control, such as COVID-19 or similar pandemics. These and other developments could reduce our cash flow or require that we seek additional sources of funding. We cannot predict what effect these factors will have on our future liquidity. As market conditions warrant, the Company may from time to time seek to purchase or repay its outstanding debt securities or loans, including the 2.500% Senior Unsecured Notes, Term Loan, and borrowings under the Revolving Credit Facility, in privately negotiated or open market transactions, by tender offer or otherwise. Subject to any applicable limitations contained in the agreements governing our indebtedness, any purchases made by us may be funded by the use of cash on our balance sheet or the incurrence of new debt. The amounts involved in any such purchase transactions, individually or in aggregate, may be material.
We have approximately
Dividends
Dividends paid were$9.6 million for the three months endedJune 30, 2022 . There were no dividends paid during the three months endedJune 30, 2021 . OnMay 19, 2021 , we announced the reinstatement of our quarterly dividend that was suspended in fiscal 2021. Each quarterly dividend payment is subject to review and approval by our Board of Directors, who will continue to evaluate our dividend payment amount on a quarterly basis. 30 --------------------------------------------------------------------------------
Share Repurchases
During the three months endedJune 30, 2022 , our share repurchases were as follows: Total Number Maximum of Number Shares of Shares Purchased that May as Part of Yet be Total Publicly Purchased Number of Average Announced Under the Shares Price Paid Plans Plans Period Purchased Per Share or Programs or Programs April 1 through April 30, 2022 296,000$ 125.41
296,000
May 1 through May 31, 2022 294,000 124.72
294,000
June 1 through June 30, 2022 294,000 121.86
294,000
Quarter 1 Totals 884,000$ 124.00
884,000
Year-to-Date Totals 884,000$ 124.00
884,000 9,938,992
OnMay 17, 2022 , the Board of Directors authorized us to repurchase an additional 7.5 million shares. This authorization brought the cumulative total of Common Stock our Board has approved for repurchase in the open market to 55.9 million shares since we became publicly held inApril 1994 . ThroughJune 30, 2022 , we have repurchased approximately 46.0 million shares. Share repurchases may be made from time to time in the open market or in privately negotiated transactions. The timing and amount of any share repurchases are determined by management, based on its evaluation of market and economic conditions and other factors. In some cases, repurchases may be made pursuant to plans, programs, or directions established from time to time by the Company's management, including plans intended to comply with the safe-harbor provided by Rule 10b5-1. During the three months endedJune 30, 2022 , the Company withheld from employees 10,745 shares of stock upon the vesting of Restricted Shares that were granted under the Plan. We withheld these shares to satisfy the employees' statutory tax withholding requirements, which is required once the Restricted Shares or Restricted Share Units are vested.
Capital Expenditures
The following table details capital expenditures by category:
For the Three Months Ended June 30, 2022 2021 (dollars in thousands) Land and Quarries $ 1,352 $ 586 Plants 8,814 9,624 Buildings, Machinery, and Equipment 4,748 1,725 Total Capital Expenditures $ 14,914 $ 11,935 Capital expenditures for fiscal 2023 are expected to range from$110.0 million to$120.0 million and will be allocated across both Heavy Materials and Light Materials sectors. These estimated capital expenditures will include maintenance capital expenditures and improvements, as well as other safety and regulatory projects. 31
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FORWARD LOOKING STATEMENTS
Certain matters discussed in this report contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimates or expectations. These statements are not historical facts or guarantees of future performance but instead represent only the Company's belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside the Company's control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. The principal risks and uncertainties that may affect the Company's actual performance include the following: the cyclical and seasonal nature of the Company's businesses; public infrastructure expenditures; adverse weather conditions; the fact that our products are commodities and that prices for our products are subject to material fluctuation due to market conditions and other factors beyond our control; availability of raw materials; changes in the costs of energy, including, without limitation, natural gas, coal and oil, and the nature of our obligations to counterparties under energy supply contracts, such as those related to market conditions (such as fluctuations in spot market prices), governmental orders and other matters; changes in the cost and availability of transportation; unexpected operational difficulties, including unexpected maintenance costs, equipment downtime and interruption of production; material nonpayment or non-performance by any of our key customers; fluctuations in or changes in the nature of activity in the oil and gas industry; inability to timely execute announced capacity expansions; difficulties and delays in the development of new business lines; governmental regulation and changes in governmental and public policy (including, without limitation, climate change and other environmental regulation); possible outcomes of pending or future litigation or arbitration proceedings; changes in economic conditions specific to any one or more of the Company's markets; adverse impact of severe weather conditions (such as winter storms, tornados and hurricanes) and their effects on our facilities, operations and contractual arrangements with third parties; competition; cyber-attacks or data security breaches; announced increases in capacity in the gypsum wallboard and cement industries; changes in the demand for residential housing construction or commercial construction or construction projects undertaken by state or local governments; risks related to pursuit of acquisitions, joint ventures and other transactions or the execution or implementation of such transactions, including the integration of operations acquired by the Company; general economic conditions; and interest rates. For example, increases in interest rates, decreases in demand for construction materials or increases in the cost of energy (including, without limitation, natural gas, coal and oil) and the cost of our raw materials could affect the revenue and operating earnings of our operations. In addition, changes in national or regional economic conditions and levels of infrastructure and construction spending could also adversely affect the Company's result of operations. Finally, any forward-looking statements made by the Company are subject to the risks and impacts associated with natural disasters, pandemics or other unforeseen events, including, without limitation, the COVID-19 pandemic and responses thereto designed to contain its spread and mitigate its public health effects, as well as their impact on economic conditions, capital and financial markets. These and other factors are described in the Company's Annual Report on Form 10-K for the fiscal year endedMarch 31, 2022 . All forward-looking statements made herein are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. The Company undertakes no duty to update any forward-looking statement to reflect future events or changes in the Company's expectations. 32
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