Strong Execution Drives Margin
Expansion
Reaffirms Full Year Outlook for
Double-Digit Earnings Growth in 2024
BIRMINGHAM, Ala., May 2, 2024
/PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's
largest producer of construction aggregates, today announced
results for the quarter ended March
31, 2024.
Financial Highlights Include:
|
First Quarter
|
|
Trailing-Twelve Months
|
|
Amounts in millions,
except per unit data
|
2024
|
2023
|
|
2024
|
2023
|
|
Total
revenues
|
$
1,546
|
$
1,649
|
|
$
7,679
|
$
7,424
|
|
Gross profit
|
$
305
|
$
302
|
|
$
1,951
|
$
1,591
|
|
Selling, Administrative
and General (SAG)
|
$
130
|
$
117
|
|
$
555
|
$
514
|
|
As % of Total
revenues
|
8.4 %
|
7.1 %
|
|
7.2 %
|
6.9 %
|
|
Net earnings
attributable to Vulcan
|
$
103
|
$
121
|
|
$
915
|
$
604
|
|
Adjusted
EBITDA
|
$
323
|
$
338
|
|
$
1,997
|
$
1,669
|
|
Adjusted EBITDA
Margin
|
20.9 %
|
20.5 %
|
|
26.0 %
|
22.5 %
|
|
Earnings attributable
to Vulcan from
continuing operations per diluted
share
|
$
0.78
|
$
0.92
|
|
$
6.92
|
$
4.67
|
|
Adjusted earnings
attributable to Vulcan from
continuing operations per diluted
share
|
$
0.80
|
$
0.95
|
|
$
6.85
|
$
5.34
|
|
Aggregates
segment
|
|
|
|
|
|
|
Shipments
(tons)
|
48.1
|
51.8
|
|
230.9
|
235.3
|
|
Freight-adjusted sales
price per ton
|
$
20.59
|
$
18.69
|
|
$
19.42
|
$
17.11
|
|
Gross profit per
ton
|
$
6.30
|
$
5.86
|
|
$
7.52
|
$
6.25
|
|
Cash gross profit per
ton
|
$
8.86
|
$
8.03
|
|
$
9.66
|
$
8.17
|
Tom Hill, Vulcan Materials'
Chairman and Chief Executive Officer, said, "Our teams' solid
execution helped us overcome challenging weather conditions
throughout much of the first quarter. Margins expanded
despite lower aggregates shipments, demonstrating the durability of
our aggregates business and its attractive compounding growth
characteristics. Aggregates cash gross profit per ton
increased 10 percent in the first quarter, with improvements
widespread across our footprint. A consistent focus on our
strategic disciplines coupled with continued pricing momentum
reinforces our confidence in our full year outlook and our ability
to deliver another year of double-digit earnings growth and strong
cash generation."
First Quarter Segment Results
Aggregates
Segment gross profit was $303 million ($6.30
per ton). Cash gross profit per ton improved 10 percent to
$8.86 per ton, despite lower
shipments due to unfavorable weather conditions throughout most of
the quarter. Improvements in unit profitability were
widespread across the Company's footprint and resulted from
continued pricing momentum and solid operational execution.
Price increases effective at the beginning of the year resulted
in another quarter of attractive growth. Freight-adjusted
selling prices increased 10 percent versus the prior year, with all
markets realizing year-over-year improvement.
Freight-adjusted unit cash cost of sales increased 10 percent,
primarily driven by a 7 percent decline in aggregates shipments due
to unfavorable weather. On a trailing-twelve months basis,
unit cash cost increased 9 percent, marking the fourth consecutive
quarter of unit cost deceleration.
Asphalt and Concrete
Asphalt segment gross profit was
$5 million, and cash gross profit was
$14 million, a 39 percent improvement
over the prior year. Shipments increased 3 percent, and price
improved 6 percent. Strong shipments in Arizona and California, the Company's largest asphalt
markets, were partially offset by lower shipments in Texas due to weather impacts. Concrete
segment gross profit was a loss of $3
million. Cash gross profit was $9 million, and unit cash gross profit improved
10 percent despite lower volumes. The prior year included
results from the previously divested concrete assets in
Texas.
Selling, Administrative and General (SAG)
SAG expense
of $130 million was in line with the
Company's expectations for the first quarter. On a
trailing-twelve months basis, SAG expense was $555 million, or 7.2 percent of total
revenues.
Financial Position, Liquidity and Capital
Allocation
Capital expenditures were $103 million in the first quarter. For the
full year, the Company expects to spend $625 to $675
million for maintenance and growth projects. During
the quarter, the Company returned $81
million to shareholders through $19
million of common stock repurchases and $62 million of dividends. The Company also
used $550 million of cash on hand to
redeem its 2026 notes, resulting in a ratio of total debt to
Adjusted EBITDA of 1.7 times, or 1.5 times on a net basis
reflecting $300 million of cash on
hand. A strong liquidity and balance sheet profile positions
the Company well for continued growth. The Company's
weighted-average debt maturity was 11 years, and the effective
weighted-average interest rate was 4.8 percent. On a
trailing-twelve months basis, return on average invested capital
was 16.3 percent, a 260 basis points improvement over the prior
year.
Outlook
Regarding the Company's outlook, Mr. Hill
said, "Our operating performance in the first quarter was solid and
in line with our expectations. We remain on track to deliver
$2.15 to $2.30
billion of Adjusted EBITDA, marking the fourth consecutive
year of double-digit growth. The pricing environment remains
positive, and our focus remains on compounding unit margins through
all parts of the cycle, creating value for our shareholders through
improving returns on capital."
All aspects of the Company's outlook in February remain
unchanged.
Conference Call
Vulcan will host a conference call at
10:00 a.m. CT on May 2, 2024. A webcast will be available
via the Company's website at www.vulcanmaterials.com.
Investors and other interested parties may access the
teleconference live by calling 800-267-6316, or 203-518-9843 if
outside the U.S. The conference ID is 1104565. The
conference call will be recorded and available for replay at the
Company's website approximately two hours after the call.
About Vulcan Materials Company
Vulcan Materials
Company, a member of the S&P 500 Index with headquarters in
Birmingham, Alabama, is the
nation's largest supplier of construction aggregates – primarily
crushed stone, sand and gravel – and a major producer of
aggregates-based construction materials, including asphalt and
ready-mixed concrete. For additional information about
Vulcan, go to www.vulcanmaterials.com.
Non-GAAP Financial Measures
Because GAAP financial
measures on a forward-looking basis are not accessible, and
reconciling information is not available without unreasonable
effort, we have not provided reconciliations for forward-looking
non-GAAP measures, other than the reconciliation of Projected
Adjusted EBITDA as included in Appendix 2 hereto. For the same
reasons, we are unable to address the probable significance of the
unavailable information, which could be material to future
results.
FORWARD-LOOKING STATEMENT DISCLAIMER
This document
contains forward-looking statements. Statements that are not
historical fact, including statements about Vulcan's beliefs and
expectations, are forward-looking statements. Generally,
these statements relate to future financial performance, results of
operations, business plans or strategies, projected or anticipated
revenues, expenses, earnings (including EBITDA and other measures),
dividend policy, shipment volumes, pricing, levels of capital
expenditures, intended cost reductions and cost savings,
anticipated profit improvements and/or planned divestitures and
asset sales. These forward-looking statements are sometimes
identified by the use of terms and phrases such as "believe,"
"should," "would," "expect," "project," "estimate," "anticipate,"
"intend," "plan," "will," "can," "may" or similar expressions
elsewhere in this document. These statements are subject to
numerous risks, uncertainties, and assumptions, including but not
limited to general business conditions, competitive factors,
pricing, energy costs, and other risks and uncertainties discussed
in the reports Vulcan periodically files with the SEC.
Forward-looking statements are not guarantees of future
performance and actual results, developments, and business
decisions may vary significantly from those expressed in or implied
by the forward-looking statements. The following risks
related to Vulcan's business, among others, could cause actual
results to differ materially from those described in the
forward-looking statements: general economic and business
conditions; domestic and global political, economic or diplomatic
developments; a pandemic, epidemic or other public health
emergency; Vulcan's dependence on the construction industry, which
is subject to economic cycles; the timing and amount of federal,
state and local funding for infrastructure; changes in the level of
spending for private residential and private nonresidential
construction; changes in Vulcan's effective tax rate; the
increasing reliance on information technology infrastructure,
including the risks that the infrastructure does not work as
intended, experiences technical difficulties or is subjected to
cyber-attacks; the impact of the state of the global economy on
Vulcan's businesses and financial condition and access to capital
markets; international business operations and relationships,
including recent actions taken by the Mexican government with
respect to Vulcan's property and operations in that country; the
highly competitive nature of the construction industry; the impact
of future regulatory or legislative actions, including those
relating to climate change, biodiversity, land use, wetlands,
greenhouse gas emissions, the definition of minerals, tax policy
and domestic and international trade; the outcome of pending legal
proceedings; pricing of Vulcan's products; weather and other
natural phenomena, including the impact of climate change and
availability of water; availability and cost of trucks, railcars,
barges and ships as well as their licensed operators for transport
of Vulcan's materials; energy costs; costs of hydrocarbon-based raw
materials; healthcare costs; labor relations, shortages and
constraints; the amount of long-term debt and interest expense
incurred by Vulcan; changes in interest rates; volatility in
pension plan asset values and liabilities, which may require cash
contributions to the pension plans; the impact of environmental
cleanup costs and other liabilities relating to existing and/or
divested businesses; Vulcan's ability to secure and permit
aggregates reserves in strategically located areas; Vulcan's
ability to manage and successfully integrate acquisitions; the
effect of changes in tax laws, guidance and interpretations;
significant downturn in the construction industry may result in the
impairment of goodwill or long-lived assets; changes in
technologies, which could disrupt the way Vulcan does business and
how Vulcan's products are distributed; the risks of open pit and
underground mining; expectations relating to environmental, social
and governance considerations; claims that our products do not meet
regulatory requirements or contractual specifications; and other
assumptions, risks and uncertainties detailed from time to time in
the reports filed by Vulcan with the SEC. All forward-looking
statements in this communication are qualified in their entirety by
this cautionary statement. Vulcan disclaims and does not
undertake any obligation to update or revise any forward-looking
statement in this document except as required by law.
Investor Contact: Mark
Warren (205) 298-3220
Media Contact: Jack Bonnikson
(205) 298-3220
|
Table A
|
|
Vulcan Materials
Company
|
|
and Subsidiary
Companies
|
|
(in millions, except
per share data)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Consolidated
Statements of Earnings
|
|
|
|
|
|
|
|
March
31
|
|
(Condensed and
unaudited)
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
|
|
|
|
$1,545.7
|
|
$1,649.0
|
|
Cost of
revenues
|
|
|
|
|
|
(1,240.8)
|
|
(1,347.0)
|
|
Gross
profit
|
|
|
|
|
|
304.9
|
|
302.0
|
|
Selling, administrative
and general expenses
|
|
|
|
|
|
(129.7)
|
|
(117.3)
|
|
Gain on sale of
property, plant & equipment
|
|
|
|
|
|
|
|
|
|
and
businesses
|
|
|
|
|
|
0.6
|
|
1.7
|
|
Other operating income
(expense), net
|
|
|
|
|
|
(2.9)
|
|
0.8
|
|
Operating
earnings
|
|
|
|
|
|
172.9
|
|
187.2
|
|
Other nonoperating
income (expense), net
|
|
|
|
|
|
(0.3)
|
|
1.4
|
|
Interest expense,
net
|
|
|
|
|
|
(39.1)
|
|
(49.0)
|
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
|
before income
taxes
|
|
|
|
|
|
133.5
|
|
139.6
|
|
Income tax
expense
|
|
|
|
|
|
(28.9)
|
|
(16.6)
|
|
Earnings from
continuing operations
|
|
|
|
|
|
104.6
|
|
123.0
|
|
Loss on discontinued
operations, net of tax
|
|
|
|
|
|
(1.7)
|
|
(2.1)
|
|
Net earnings
|
|
|
|
|
|
102.9
|
|
120.9
|
|
Earnings attributable
to noncontrolling interest
|
|
|
|
|
|
(0.2)
|
|
(0.2)
|
|
Net earnings
attributable to Vulcan
|
|
|
|
|
|
$102.7
|
|
$120.7
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
|
|
|
$0.79
|
|
$0.92
|
|
Discontinued
operations
|
|
|
|
|
|
($0.01)
|
|
($0.01)
|
|
Net
earnings
|
|
|
|
|
|
$0.78
|
|
$0.91
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
|
|
|
$0.78
|
|
$0.92
|
|
Discontinued
operations
|
|
|
|
|
|
($0.01)
|
|
($0.02)
|
|
Net
earnings
|
|
|
|
|
|
$0.77
|
|
$0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
132.4
|
|
133.2
|
|
Assuming
dilution
|
|
|
|
|
|
133.1
|
|
133.7
|
|
Effective tax rate from
continuing operations
|
|
|
|
|
|
21.6 %
|
|
11.9 %
|
|
|
|
|
|
|
|
|
Table B
|
|
Vulcan Materials
Company
|
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
Consolidated Balance
Sheets
|
|
March
31
|
|
December
31
|
|
March
31
|
|
(Condensed and
unaudited)
|
|
2024
|
|
2023
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$292.4
|
|
$931.1
|
|
$139.6
|
|
Restricted
cash
|
|
7.7
|
|
18.1
|
|
0.4
|
|
Accounts and notes
receivable
|
|
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
900.4
|
|
903.3
|
|
988.1
|
|
Allowance for credit
losses
|
|
(14.3)
|
|
(13.6)
|
|
(13.1)
|
|
Accounts and notes
receivable, net
|
|
886.1
|
|
889.7
|
|
975.0
|
|
Inventories
|
|
|
|
|
|
|
|
Finished
products
|
|
512.7
|
|
494.4
|
|
437.8
|
|
Raw
materials
|
|
58.7
|
|
51.2
|
|
70.6
|
|
Products in
process
|
|
6.8
|
|
6.5
|
|
6.2
|
|
Operating supplies and
other
|
|
69.0
|
|
63.5
|
|
71.0
|
|
Inventories
|
|
647.2
|
|
615.6
|
|
585.6
|
|
Other current
assets
|
|
74.2
|
|
70.4
|
|
91.9
|
|
Total current
assets
|
|
1,907.6
|
|
2,524.9
|
|
1,792.5
|
|
Investments and
long-term receivables
|
|
31.4
|
|
31.3
|
|
31.3
|
|
Property, plant &
equipment
|
|
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
11,949.3
|
|
11,835.5
|
|
11,413.5
|
|
Allowances for
depreciation, depletion & amortization
|
|
(5,740.0)
|
|
(5,617.8)
|
|
(5,368.6)
|
|
Property, plant &
equipment, net
|
|
6,209.3
|
|
6,217.7
|
|
6,044.9
|
|
Operating lease
right-of-use assets, net
|
|
512.4
|
|
511.7
|
|
569.5
|
|
Goodwill
|
|
3,531.7
|
|
3,531.7
|
|
3,689.6
|
|
Other intangible
assets, net
|
|
1,445.8
|
|
1,460.7
|
|
1,679.2
|
|
Other noncurrent
assets
|
|
272.7
|
|
267.7
|
|
269.9
|
|
Total assets
|
|
$13,910.9
|
|
$14,545.7
|
|
$14,076.9
|
|
Liabilities
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
0.5
|
|
0.5
|
|
0.5
|
|
Trade payables and
accruals
|
|
320.9
|
|
390.4
|
|
370.3
|
|
Other current
liabilities
|
|
374.8
|
|
406.7
|
|
386.1
|
|
Total current
liabilities
|
|
696.2
|
|
797.6
|
|
756.9
|
|
Long-term
debt
|
|
3,330.7
|
|
3,877.3
|
|
3,876.9
|
|
Deferred income taxes,
net
|
|
1,027.3
|
|
1,028.9
|
|
1,060.1
|
|
Deferred
revenue
|
|
143.6
|
|
145.3
|
|
157.8
|
|
Noncurrent operating
lease liabilities
|
|
508.2
|
|
507.4
|
|
545.9
|
|
Other noncurrent
liabilities
|
|
688.3
|
|
681.3
|
|
668.6
|
|
Total
liabilities
|
|
$6,394.3
|
|
$7,037.8
|
|
$7,066.2
|
|
Equity
|
|
|
|
|
|
|
|
Common stock, $1 par
value
|
|
132.3
|
|
132.1
|
|
133.1
|
|
Capital in excess of
par value
|
|
2,865.0
|
|
2,880.1
|
|
2,832.9
|
|
Retained
earnings
|
|
4,636.7
|
|
4,615.0
|
|
4,174.0
|
|
Accumulated other
comprehensive loss
|
|
(142.1)
|
|
(143.8)
|
|
(153.1)
|
|
Total shareholder's
equity
|
|
7,491.9
|
|
7,483.4
|
|
6,986.9
|
|
Noncontrolling
interest
|
|
24.7
|
|
24.5
|
|
23.8
|
|
Total equity
|
|
$7,516.6
|
|
$7,507.9
|
|
$7,010.7
|
|
Total liabilities and
equity
|
|
$13,910.9
|
|
$14,545.7
|
|
$14,076.9
|
|
|
|
|
|
|
|
Table C
|
|
Vulcan Materials
Company
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
March
31
|
|
(Condensed and
unaudited)
|
|
2024
|
|
2023
|
|
Operating
Activities
|
|
|
|
|
|
Net earnings
|
|
|
|
|
$102.9
|
|
$120.9
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
150.9
|
|
148.4
|
|
Noncash operating lease
expense
|
|
12.9
|
|
13.6
|
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(0.6)
|
|
(1.7)
|
|
Contributions to
pension plans
|
|
(1.7)
|
|
(1.9)
|
|
Share-based
compensation expense
|
|
9.1
|
|
8.2
|
|
Deferred income taxes,
net
|
|
(2.1)
|
|
(13.3)
|
|
Changes in assets and
liabilities before initial
|
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(102.2)
|
|
(55.2)
|
|
Other, net
|
|
|
|
|
4.2
|
|
2.3
|
|
Net cash provided by
operating activities
|
|
$173.4
|
|
$221.3
|
|
Investing
Activities
|
|
|
|
|
|
Purchases of property,
plant & equipment
|
|
(152.8)
|
|
(193.6)
|
|
Proceeds from sale of
property, plant & equipment
|
|
1.4
|
|
1.4
|
|
Proceeds from sale of
businesses
|
|
0.0
|
|
130.0
|
|
Payment for businesses
acquired, net of acquired cash and adjustments
|
|
(12.3)
|
|
0.5
|
|
Other, net
|
|
|
|
|
(0.1)
|
|
0.0
|
|
Net cash used for
investing activities
|
|
($163.8)
|
|
($61.7)
|
|
Financing
Activities
|
|
|
|
|
|
Proceeds from
short-term debt
|
|
0.0
|
|
28.0
|
|
Payment of short-term
debt
|
|
0.0
|
|
(128.0)
|
|
Payment of current
maturities and long-term debt
|
|
(550.4)
|
|
(550.4)
|
|
Proceeds from issuance
of long-term debt
|
|
0.0
|
|
550.0
|
|
Debt issuance and
exchange costs
|
|
0.0
|
|
(3.4)
|
|
Payment of finance
leases
|
|
(3.6)
|
|
(5.8)
|
|
Purchases of common
stock
|
|
(18.8)
|
|
0.0
|
|
Dividends
paid
|
|
|
|
(62.0)
|
|
(57.2)
|
|
Share-based
compensation, shares withheld for taxes
|
|
(23.8)
|
|
(14.3)
|
|
Other, net
|
|
|
|
|
(0.1)
|
|
0.0
|
|
Net cash used for
financing activities
|
|
($658.7)
|
|
($181.1)
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
(649.1)
|
|
(21.5)
|
|
Cash and cash
equivalents and restricted cash at beginning of year
|
|
949.2
|
|
161.5
|
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$300.1
|
|
$140.0
|
|
|
Table D
|
|
Segment Financial
Data and Unit Shipments
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per unit data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
2024
|
|
2023
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
|
|
|
|
$1,291.3
|
|
$1,296.6
|
|
Asphalt
2
|
|
|
|
|
|
186.2
|
|
169.8
|
|
Concrete
|
|
|
|
|
|
148.3
|
|
285.1
|
|
Segment
sales
|
|
|
|
|
|
$1,625.8
|
|
$1,751.5
|
|
Aggregates intersegment
sales
|
|
|
|
|
|
(80.1)
|
|
(102.5)
|
|
Total
revenues
|
|
|
|
|
|
$1,545.7
|
|
$1,649.0
|
|
Gross
Profit
|
|
|
|
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
$303.3
|
|
$303.6
|
|
Asphalt
|
|
|
|
|
|
4.7
|
|
0.8
|
|
Concrete
|
|
|
|
|
|
(3.1)
|
|
(2.4)
|
|
Total
|
|
|
|
|
|
$304.9
|
|
$302.0
|
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
$123.5
|
|
$112.3
|
|
Asphalt
|
|
|
|
|
|
8.9
|
|
9.0
|
|
Concrete
|
|
|
|
|
|
12.3
|
|
20.4
|
|
Other
|
|
|
|
|
|
6.2
|
|
6.7
|
|
Total
|
|
|
|
|
|
$150.9
|
|
$148.4
|
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
|
|
|
|
$991.4
|
|
$968.1
|
|
Aggregates -
tons
|
|
|
|
|
|
48.1
|
|
51.8
|
|
Freight-adjusted sales
price 4
|
|
|
|
|
|
$20.59
|
|
$18.69
|
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
|
Asphalt Mix -
tons
|
|
|
|
|
|
2.1
|
|
2.1
|
|
Asphalt Mix - sales
price 5
|
|
|
|
|
|
$77.83
|
|
$73.44
|
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete -
cubic yards
|
|
|
|
|
|
0.8
|
|
1.8
|
|
Ready-mixed concrete -
sales price 5
|
|
|
|
|
|
$182.73
|
|
$161.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Includes product sales (crushed stone,
sand and gravel, sand, and other aggregates), as well as freight
& delivery
|
|
costs that we pass along to our customers, and service
revenues related to aggregates.
|
|
2
Includes product sales, as well as
service revenues from our asphalt construction paving
business.
|
|
3
Freight-adjusted revenues are Aggregates
segment sales excluding freight & delivery revenues
and
|
|
other revenues related to services, such as landfill tipping
fees, that are derived from our aggregates business.
|
|
4
Freight-adjusted sales price is
calculated as freight-adjusted revenues divided by aggregates unit
shipments.
|
|
5
Sales price is calculated by dividing
revenues generated from the shipment of product (excluding service
revenues
|
|
generated by the segments) by total units of the product
shipped.
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 1
|
|
|
|
Reconciliation of Non-GAAP
Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates segment
freight-adjusted revenues is not a Generally Accepted Accounting
Principle (GAAP) measure and should not be considered as an
alternative to metrics defined by GAAP. We present this metric as
it is consistent with the basis by which we review our operating
results. We believe that this presentation is consistent with our
competitors and meaningful to our investors as it excludes revenues
associated with freight & delivery, which are pass-through
activities. It also excludes other revenues related to services,
such as landfill tipping fees, that are derived from our aggregates
business. Additionally, we use this metric as the basis for
calculating the average sales price of our aggregates products.
Reconciliation of this metric to its nearest GAAP measure is
presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates Segment Freight-Adjusted
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per ton data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Trailing Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
March 31
|
|
|
|
March 31
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Aggregates segment
|
|
|
|
|
|
|
|
|
|
|
|
Segment
sales
|
|
$1,291.3
|
|
$1,296.6
|
|
$5,913.6
|
|
$5,454.1
|
|
|
|
Freight & delivery
revenues 1
|
|
(277.4)
|
|
(309.8)
|
|
(1,317.8)
|
|
(1,328.6)
|
|
|
|
Other
revenues
|
|
(22.5)
|
|
(18.7)
|
|
(111.2)
|
|
(98.9)
|
|
|
|
Freight-adjusted
revenues
|
|
$991.4
|
|
$968.1
|
|
$4,484.6
|
|
$4,026.6
|
|
|
|
Unit shipments -
tons
|
|
48.1
|
|
51.8
|
|
230.9
|
|
235.3
|
|
|
|
Freight-adjusted sales
price
|
|
$20.59
|
|
$18.69
|
|
$19.42
|
|
$17.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
At the segment level, freight &
delivery revenues include intersegment freight & delivery
(which are eliminated at the consolidated level) and freight
to
|
|
|
|
remote
distribution sites.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP does not define
"cash gross profit," and it should not be considered as an
alternative to earnings measures defined by GAAP. We and the
investment community use this metric to assess the operating
performance of our business. Additionally, we present this metric
as we believe that it closely correlates to long-term shareholder
value. Cash gross profit adds back noncash charges for
depreciation, depletion, accretion and amortization to gross
profit. Segment cash gross profit per unit is computed by dividing
segment cash gross profit by units shipped. Segment cash cost of
sales per unit is computed by subtracting segment cash gross profit
per unit from segment freight-adjusted sales price. Reconciliation
of these metrics to their nearest GAAP measures are presented
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per ton data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Trailing Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
March 31
|
|
|
|
March 31
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Aggregates segment
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$303.3
|
|
$303.6
|
|
$1,736.5
|
|
$1,471.3
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
123.5
|
|
112.3
|
|
493.5
|
|
450.0
|
|
|
|
Aggregates segment cash
gross profit
|
|
$426.8
|
|
$415.9
|
|
$2,230.0
|
|
$1,921.3
|
|
|
|
Unit shipments -
tons
|
|
48.1
|
|
51.8
|
|
230.9
|
|
235.3
|
|
|
|
Aggregates segment
gross profit per ton
|
|
$6.30
|
|
$5.86
|
|
$7.52
|
|
$6.25
|
|
|
|
Aggregates segment
freight-adjusted sales price
|
|
$20.59
|
|
$18.69
|
|
$19.42
|
|
$17.11
|
|
|
|
Aggregates segment cash
gross profit per ton
|
|
8.86
|
|
8.03
|
|
9.66
|
|
8.17
|
|
|
|
Aggregates segment
freight-adjusted cash cost of sales per ton
|
$11.73
|
|
$10.66
|
|
$9.76
|
|
$8.95
|
|
|
|
Asphalt segment
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$4.7
|
|
$0.8
|
|
$153.5
|
|
$61.0
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
8.9
|
|
9.0
|
|
35.5
|
|
35.5
|
|
|
|
Asphalt segment cash
gross profit
|
|
$13.6
|
|
$9.8
|
|
$189.0
|
|
$96.5
|
|
|
|
Concrete segment
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
($3.1)
|
|
($2.4)
|
|
$61.5
|
|
$58.7
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
12.3
|
|
20.4
|
|
64.5
|
|
82.4
|
|
|
|
Concrete segment cash
gross profit
|
|
$9.2
|
|
$18.0
|
|
$126.0
|
|
$141.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 2
|
|
|
|
Reconciliation of Non-GAAP Measures
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP does not define
"Earnings Before Interest, Taxes, Depreciation and Amortization"
(EBITDA), and it should not be considered as an alternative to
earnings measures defined by GAAP. We use this metric to assess the
operating performance of our business and as a basis for strategic
planning and forecasting as we believe that it closely correlates
to long-term shareholder value. We do not use this metric as a
measure to allocate resources. We adjust EBITDA for certain items
to provide a more consistent comparison of earnings performance
from period to period. Reconciliation of this metric to its nearest
GAAP measure is presented below (numbers may not foot due to
rounding):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Trailing Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
March 31
|
|
|
|
March 31
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Net earnings
attributable to Vulcan
|
|
$102.7
|
|
$120.7
|
|
$915.2
|
|
$604.4
|
|
|
|
Income tax expense,
including discontinued operations
|
|
28.3
|
|
15.8
|
|
308.1
|
|
184.2
|
|
|
|
Interest expense,
net
|
|
39.1
|
|
49.0
|
|
169.8
|
|
181.4
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
150.9
|
|
148.4
|
|
619.5
|
|
594.9
|
|
|
|
EBITDA
|
|
|
$321.0
|
|
$333.8
|
|
$2,012.6
|
|
$1,564.9
|
|
|
|
Loss on discontinued
operations
|
|
$2.3
|
|
$2.9
|
|
$14.1
|
|
$25.7
|
|
|
|
Gain on sale of real
estate and businesses, net
|
|
0.0
|
|
0.0
|
|
(67.1)
|
|
(6.1)
|
|
|
|
Charges associated with
divested operations
|
|
0.0
|
|
0.4
|
|
7.6
|
|
3.8
|
|
|
|
Acquisition related
charges 1
|
|
0.1
|
|
0.5
|
|
1.7
|
|
13.3
|
|
|
|
Loss on
impairments
|
|
0.0
|
|
0.0
|
|
28.3
|
|
67.8
|
|
|
|
Adjusted
EBITDA
|
|
$323.5
|
|
$337.7
|
|
$1,997.1
|
|
$1,669.4
|
|
|
|
1
Represents charges associated with
acquisitions requiring clearance under federal antitrust
laws.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Similar to our
presentation of Adjusted EBITDA, we present Adjusted diluted
earnings per share (EPS) attributable to Vulcan from continuing
operations to provide a more consistent comparison of earnings
performance from period to period. This metric is not defined by
GAAP and should not be considered as an alternative to earnings
measures defined by GAAP. Reconciliation of this metric to its
nearest GAAP measure is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS attributable to Vulcan from
Continuing Operations (Adjusted Diluted EPS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Trailing Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
March 31
|
|
|
|
March 31
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Net earnings
attributable to Vulcan
|
|
$0.77
|
|
$0.90
|
|
$6.85
|
|
$4.52
|
|
|
|
Items included in
Adjusted EBITDA above, net of tax
|
|
0.02
|
|
0.03
|
|
(0.08)
|
|
0.69
|
|
|
|
NOL carryforward
valuation allowance
|
|
0.01
|
|
0.02
|
|
0.08
|
|
0.13
|
|
|
|
Adjusted diluted EPS
attributable to Vulcan from
|
|
|
|
|
|
|
|
|
|
|
|
continuing
operations
|
|
$0.80
|
|
$0.95
|
|
$6.85
|
|
$5.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected Adjusted
EBITDA is not defined by GAAP and should not be considered as an
alternative to earnings measures defined by GAAP. Reconciliation of
this metric to its nearest GAAP measure is presented
below:
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|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
2024 Projected Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-point
|
|
|
|
Net earnings
attributable to Vulcan
|
|
|
|
|
|
|
|
$1,130
|
|
|
|
Income tax expense,
including discontinued operations
|
|
|
|
|
|
|
|
330
|
|
|
|
Interest expense, net
of interest income
|
|
|
|
|
|
|
|
155
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
|
|
610
|
|
|
|
Projected
EBITDA
|
|
|
|
|
|
|
|
$2,225
|
|
|
|
Items included in
Adjusted EBITDA above
|
|
|
|
|
|
|
|
0
|
|
|
|
Projected Adjusted
EBITDA
|
|
|
|
|
|
|
|
$2,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Because GAAP financial
measures on a forward-looking basis are not accessible, and
reconciling information is not available without unreasonable
effort, we have not provided reconciliations for forward-looking
non-GAAP measures, other than the reconciliation of Projected
Adjusted EBITDA as noted above. For the same reasons, we are unable
to address the probable significance of the unavailable
information, which could be material to future results.
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Appendix 3
|
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|
|
Reconciliation of Non-GAAP Measures
(Continued)
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|
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|
|
|
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|
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|
|
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|
|
Net debt to Adjusted
EBITDA is not a GAAP measure and should not be considered as an
alternative to metrics defined by GAAP. We, the investment
community and credit rating agencies use this metric to assess our
leverage. Net debt subtracts cash and cash equivalents and
restricted cash from total debt. Reconciliation of this metric to
its nearest GAAP measure is presented below:
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|
Net Debt to Adjusted EBITDA
|
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|
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|
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|
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|
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|
|
|
|
|
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|
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(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
March 31
|
|
|
|
|
|
|
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|
|
|
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|
|
2024
|
|
2023
|
|
|
|
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
|
|
|
|
|
|
$0.5
|
|
$0.5
|
|
|
|
Long-term
debt
|
|
|
|
|
|
|
|
3,330.7
|
|
3,876.9
|
|
|
|
Total debt
|
|
|
|
|
|
|
|
$3,331.2
|
|
$3,877.4
|
|
|
|
Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
(300.1)
|
|
(140.0)
|
|
|
|
Net debt
|
|
|
|
|
|
|
|
|
$3,031.1
|
|
$3,737.4
|
|
|
|
Trailing-Twelve Months
(TTM) Adjusted EBITDA
|
|
|
|
|
|
|
|
$1,997.1
|
|
$1,669.4
|
|
|
|
Total debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
|
|
1.7x
|
|
2.3x
|
|
|
|
Net debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
|
|
1.5x
|
|
2.2x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We define "Return on
Invested Capital" (ROIC) as Adjusted EBITDA for the trailing-twelve
months divided by average invested capital (as illustrated below)
during the trailing 5-quarters. Our calculation of ROIC is
considered a non-GAAP financial measure because we calculate ROIC
using the non-GAAP metric EBITDA. We believe that our ROIC metric
is meaningful because it helps investors assess how effectively we
are deploying our assets. Although ROIC is a standard financial
metric, numerous methods exist for calculating a company's ROIC. As
a result, the method we use to calculate our ROIC may differ from
the methods used by other companies. This metric is not defined by
GAAP and should not be considered as an alternative to earnings
measures defined by GAAP. Reconciliation of this metric to its
nearest GAAP measure is presented below (numbers may not foot due
to rounding):
|
|
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Invested Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31
|
|
March 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
$1,997.1
|
|
$1,669.4
|
|
|
|
Average invested
capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment, net
|
|
|
|
|
|
|
|
$6,137.9
|
|
$5,910.0
|
|
|
|
Goodwill
|
|
|
|
|
|
|
|
3,594.9
|
|
3,707.1
|
|
|
|
Other intangible
assets
|
|
|
|
|
|
|
|
1,542.1
|
|
1,723.5
|
|
|
|
Fixed and intangible
assets
|
|
|
|
|
|
|
|
$11,274.9
|
|
$11,340.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
$2,194.0
|
|
$1,918.0
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
(380.5)
|
|
(141.0)
|
|
|
|
Current tax
|
|
|
|
|
|
|
|
(24.3)
|
|
(45.6)
|
|
|
|
Adjusted current
assets
|
|
|
|
|
|
|
|
1,789.2
|
|
1,731.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
(781.6)
|
|
(999.6)
|
|
|
|
Current maturities of
long-term debt
|
|
|
|
|
|
|
|
0.5
|
|
1.2
|
|
|
|
Short-term
debt
|
|
|
|
|
|
|
|
0.0
|
|
137.6
|
|
|
|
Adjusted current
liabilities
|
|
|
|
|
|
|
|
(781.1)
|
|
(860.8)
|
|
|
|
Adjusted net working
capital
|
|
|
|
|
|
|
|
$1,008.1
|
|
$870.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested
capital
|
|
|
|
|
|
|
|
$12,283.0
|
|
$12,211.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on invested
capital
|
|
|
|
|
|
|
|
16.3 %
|
|
13.7 %
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/vulcan-reports-first-quarter-2024-results-302133763.html
SOURCE Vulcan Materials Company
