BIRMINGHAM, Ala., Nov. 4, 2021 /PRNewswire/ -- Vulcan Materials
Company (NYSE: VMC), the nation's largest producer of construction
aggregates, today announced results for the quarter ended
September 30, 2021.
Third Quarter Financial and Operating Highlights:
- The Company successfully closed the U.S. Concrete ("USCR")
acquisition on August 26, 2021
-
- Unless noted otherwise, consolidated figures include USCR's
results since closing
- Total Revenues were $1.52
billion, an increase of 16 percent compared to the prior
year
- Operating earnings were $262
million compared with $288
million in the prior year
-
- Include $28 million in
acquisition-related expenses and $6
million in other discrete charges
- Include $30 million of higher
same-store diesel fuel and liquid asphalt costs as compared to the
prior year
- Aggregates gross profit increased $34
million, or 10 percent, to $372
million
-
- Same-store volumes increased 5 percent, and mix-adjusted price
increased 3.5 percent
- Non-aggregates gross profit was $22
million compared with $43
million in the prior year
- Earnings attributable to Vulcan from continuing operations were
$177 million, or $1.33 per diluted share. Excluding discrete
charges adjusted out of EBITDA, earnings attributable to Vulcan
from continuing operations were $1.54
per diluted share
- Third quarter Adjusted EBITDA increased 4 percent to
$418 million
- Full year Adjusted EBITDA guidance increased to between
$1.430 and $1.460 billion
Tom Hill, Chairman and Chief
Executive Officer, said, "Our aggregates-focused business is built
for times like these. We expanded our industry-leading
trailing-twelve month unit profitability for the thirteenth
consecutive quarter despite a challenging operating environment
caused by inflationary pressures and labor constraints. This
consistent growth in the underlying business is driven by our
execution on Vulcan's four strategic disciplines and is further
enhanced by strategic growth through acquisitions and greenfield
investments. Since completing the USCR acquisition in late
August, our teams are making good progress integrating the
businesses across the expanded footprint and are identifying
additional opportunities to accelerate our growth and create value
for shareholders."
Mr. Hill continued, "Throughout a difficult eighteen months of
pandemic disruptions and economic challenges, our people
strengthened their operating disciplines and moved pricing
higher. Now that trailing-twelve month aggregates volumes are
back to pre-pandemic levels, these solid fundamentals, coupled with
our leading positions in attractive geographies, position us well
to capitalize on positive demand trends going forward and will
allow us to deliver both revenue and earnings growth."
Highlights as of September 30,
2021 include:
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Year-to-Date
|
|
Trailing-Twelve
Months
|
Amounts in millions,
except per unit data
|
2021
|
2020
|
|
2021
|
2020
|
|
2021
|
2020
|
Total
revenues
|
$ 1,516.5
|
$ 1,309.9
|
|
$ 3,945.9
|
$ 3,681.7
|
|
$
5,121.0
|
$
4,867.9
|
Gross
profit
|
$
394.1
|
$
380.5
|
|
$ 1,021.7
|
$
978.7
|
|
$
1,324.4
|
$
1,271.8
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Segment
sales
|
$ 1,172.4
|
$ 1,049.0
|
|
$ 3,192.7
|
$ 2,987.8
|
|
$
4,149.2
|
$
3,947.9
|
Freight-adjusted
revenue
|
$
898.0
|
$
807.6
|
|
$ 2,453.1
|
$ 2,270.3
|
|
$
3,190.4
|
$
2,990.9
|
Gross
profit
|
$
372.3
|
$
337.9
|
|
$
969.8
|
$
883.2
|
|
$
1,245.8
|
$
1,157.7
|
Shipments
(tons)
|
60.2
|
55.9
|
|
165.1
|
157.2
|
|
216.3
|
208.8
|
Freight-adjusted
sales price per ton
|
$
14.93
|
$
14.44
|
|
$
14.86
|
$
14.45
|
|
$
14.75
|
$
14.33
|
Gross profit per
ton
|
$
6.19
|
$
6.04
|
|
$
5.87
|
$
5.62
|
|
$
5.76
|
$
5.54
|
Asphalt, Concrete
& Calcium segment gross profit
|
$
21.7
|
$
42.6
|
|
$
51.9
|
$
95.6
|
|
$
78.6
|
$
114.1
|
Selling,
Administrative and General (SAG)
|
$
103.8
|
$
83.5
|
|
$
293.1
|
$
261.1
|
|
$
391.7
|
$
356.9
|
SAG as % of Total
revenues
|
6.8%
|
6.4%
|
|
7.4%
|
7.1%
|
|
7.6%
|
7.3%
|
Earnings from
continuing operations before income taxes
|
$
228.7
|
$
258.1
|
|
$
705.1
|
$
602.6
|
|
$
846.3
|
$
768.6
|
Net
earnings
|
$
176.9
|
$
199.8
|
|
$
532.9
|
$
470.0
|
|
$
647.4
|
$
611.1
|
Adjusted
EBIT
|
$
300.2
|
$
302.5
|
|
$
747.0
|
$
716.4
|
|
$
957.3
|
$
919.2
|
Adjusted
EBITDA
|
$
417.7
|
$
403.5
|
|
$ 1,068.0
|
$ 1,012.3
|
|
$
1,379.2
|
$
1,310.8
|
Earnings attributable
to Vulcan from continuing
operations, per diluted share
|
$
1.33
|
$
1.51
|
|
$
4.01
|
$
3.54
|
|
$
4.88
|
$
4.61
|
Adjusted earnings
attributable to Vulcan from continuing
operations, per diluted share
|
$
1.54
|
$
1.56
|
|
$
3.80
|
$
3.62
|
|
$
4.86
|
$
4.70
|
|
|
|
|
|
|
|
|
|
Segment Results
Aggregates
Third quarter
segment sales were $1.17 billion,
while gross profit increased 10 percent to $372 million. The year-over-year earnings
improvement was widespread across the Company's footprint and
resulted from both volume and price growth, as well as effective
cost control. This year's third quarter results include a
$3 million unfavorable impact from
selling acquired inventory after its markup to fair value as part
of acquisition accounting. The quarter's results also include
significantly higher diesel fuel costs, lowering segment gross
profit by $13 million.
Total aggregates shipments were 60.2 million tons versus 55.9
million in last year's third quarter, an increase of 8
percent. Same-store aggregates shipments increased 5 percent,
reflecting improving demand across all end-market segments and
despite severe wet weather in certain key markets. The
pricing environment continues to be positive across the Company's
footprint as demand visibility improves. The rate of pricing
growth has improved sequentially each quarter this year. In
the third quarter, same-store freight-adjusted pricing increased
3.1 percent year-over-year (mix-adjusted pricing increased 3.5
percent) with the growth widespread across geographies.
In the third quarter, solid execution helped to offset a more
than 50 percent increase in the average unit cost of diesel fuel,
inflation for certain parts and supplies, and operational
disruptions caused by wet weather in the Southeast and along the
Gulf Coast due in part to Hurricane Ida. Same-store
freight-adjusted unit cost of sales increased 1.7 percent over the
prior year's third quarter but decreased almost 1 percent excluding
the impact of higher diesel prices. Total cash gross profit
improved 3 percent from the prior year's third quarter to
$7.74 per ton. Positive pricing
opportunities and improved operating efficiencies are expected to
continue to help offset some of the cost inflation going
forward.
Asphalt, Concrete and Calcium
Asphalt segment gross
profit was $7 million in the quarter
compared to $30 million in the prior
year period. The decrease in earnings was driven primarily by
the impact of sharply higher energy costs and weather-related
impacts on volumes.
The average cost of liquid asphalt during the third quarter was
over $100 per ton higher than in the
same period last year (a $16 million
impact in the quarter). A rise in the cost of natural gas,
used in plant production, also negatively affected quarterly gross
profit. Average selling prices for asphalt mix increased 2
percent, or $1.07 per ton, versus the
prior year's third quarter as pricing actions began to gain
traction. Efforts to mitigate the earnings impact of energy
inflation will continue with positive results expected in the first
half of next year. Asphalt volumes declined 8 percent as
volume growth in California was
more than offset by lower volumes in Arizona. A
record-setting number of rainy days disrupted asphalt shipments in
Arizona, the Company's second
largest asphalt market. Additionally, construction activity
in Tennessee was also negatively
impacted by hurricane-related wet weather.
Third quarter Concrete segment gross profit increased 18 percent
to $14 million. The current
year's third quarter includes results from USCR's operations.
Same-store shipments decreased 7 percent versus the prior year due
to fewer large projects in the current year's quarter, while
same-store average selling prices increased 2 percent compared to
the prior year. Segment results were negatively impacted by
higher diesel prices and by the availability of drivers in certain
markets.
Calcium segment gross profit was $0.3
million compared to $0.2
million the prior year quarter.
Selling, Administrative and General (SAG)
SAG expense
was $104 million in the quarter, or
6.8 percent of total revenues. The current year's third
quarter includes overhead expenses associated with the USCR
business that were not in the prior year's quarter.
Additionally, increased routine business development activities and
more normalized travel expenses, due in part to integration
activities, contributed to the year-over-year increase.
Financial Position, Liquidity and Capital
Allocation
Capital expenditures in the third quarter were
$127 million, including $69 million for growth projects.
Year-to-date capital expenditures total approximately $292 million. For the full year 2021, the
Company expects to spend between $450
and $475 million on capital
expenditures, including growth projects. The Company will
continue to review its plans and will adjust as needed, while being
thoughtful about preserving liquidity.
At September 30, 2021, the ratio
of total debt to Adjusted EBITDA was 2.8 times (2.7 times on a net
debt basis) reflecting financing actions taken to complete the USCR
acquisition during the quarter. The Company remains committed
to its stated target leverage range of 2.0 to 2.5 times.
Interest expense, net of interest income, was $37 million in the third quarter compared with
$36 million in the prior year.
Year-to-date, interest expense, net of interest income, was
$112 million compared to $101 million in the prior year. This
increase includes $9 million of cost
in the second quarter associated with financing the pending
acquisition of USCR. The Company expects full year interest
expense to be approximately $145
million.
On a trailing-twelve month basis, return on invested capital was
14.2 percent, reflecting the investment in USCR and its earnings
contribution since August 26,
2021. The Company remains committed to driving further
improvement through solid operating earnings growth coupled with
disciplined capital management and a balanced approach to
growth.
Outlook
Regarding the Company's current expectations
for 2021, Mr. Hill said, "We are increasing our full-year Adjusted
EBITDA range to reflect the earnings contribution of U.S. Concrete
as well as the recent trends in demand, price and cost
inflation. As a result, we expect full-year Adjusted EBITDA
to be between $1.430 to $1.460 billion in 2021 (excluding the
$115 million gain from a land sale
completed in the first quarter and including the U.S. Concrete
acquisition)."
Mr. Hill concluded, "As we look ahead, we believe our
aggregates-focused business is uniquely positioned for broad
participation in improving demand and is capable of navigating any
changes in the macro environment. The USCR acquisition
extends our growth platform, and we are excited about the
opportunities in front of us. The prospects continue to be
positive for the most significant federal investment in
infrastructure since the creation of the Interstate Highway System
in 1956, and we are well situated with leading positions in
attractive growth areas where the need is greatest. Finally,
we expect favorable pricing dynamics to continue, leading to
attractive price growth."
Conference Call
Vulcan will host a conference call at
9:00 a.m. CT on November 4, 2021. 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 866-831-8713,
or 203-518-9797 if outside the U.S., approximately 10 minutes
before the scheduled start. The conference ID is
8413025. 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.
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; a pandemic, epidemic or other public health emergency,
such as the COVID-19 outbreak; 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; the highly competitive
nature of the construction industry; the impact of future
regulatory or legislative actions, including those relating to
climate change, wetlands, greenhouse gas emissions, the definition
of minerals, tax policy or 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; the amount of
long-term debt and interest expense incurred by Vulcan; changes in
interest rates; the impact of a discontinuation of the London
Interbank Offered Rate (LIBOR); 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;
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: Janet
Kavinoky (205) 298-3220
|
|
|
|
|
|
|
|
|
|
Table A
|
Vulcan Materials
Company
|
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
Consolidated
Statements of Earnings
|
|
|
|
September
30
|
|
|
|
September
30
|
(Condensed and
unaudited)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$1,516,506
|
|
$1,309,890
|
|
$3,945,897
|
|
$3,681,707
|
Cost of
revenues
|
|
1,122,445
|
|
929,392
|
|
2,924,206
|
|
2,702,967
|
Gross
profit
|
|
394,061
|
|
380,498
|
|
1,021,691
|
|
978,740
|
Selling,
administrative and general expenses
|
|
103,792
|
|
83,511
|
|
293,052
|
|
261,146
|
Gain on sale of
property, plant & equipment
|
|
|
|
|
|
|
|
|
and
businesses
|
|
2,940
|
|
1,576
|
|
120,316
|
|
2,317
|
Other operating
expense, net
|
|
(30,843)
|
|
(10,459)
|
|
(49,541)
|
|
(20,610)
|
Operating
earnings
|
|
262,366
|
|
288,104
|
|
799,414
|
|
699,301
|
Other nonoperating
income, net
|
|
3,152
|
|
5,787
|
|
17,288
|
|
3,817
|
Interest expense,
net
|
|
36,776
|
|
35,782
|
|
111,589
|
|
100,508
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
before income
taxes
|
|
228,742
|
|
258,109
|
|
705,113
|
|
602,610
|
Income tax
expense
|
|
51,770
|
|
56,984
|
|
169,692
|
|
130,530
|
Earnings from
continuing operations
|
|
176,972
|
|
201,125
|
|
535,421
|
|
472,080
|
Loss on discontinued
operations, net of tax
|
|
(212)
|
|
(1,337)
|
|
(2,702)
|
|
(2,118)
|
Net
earnings
|
|
|
|
176,760
|
|
199,788
|
|
532,719
|
|
469,962
|
Loss attributable to
noncontrolling interest
|
|
146
|
|
0
|
|
146
|
|
0
|
Net earnings
attributable to Vulcan
|
|
$176,906
|
|
$199,788
|
|
$532,865
|
|
$469,962
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.33
|
|
$1.52
|
|
$4.03
|
|
$3.56
|
Discontinued
operations
|
|
$0.00
|
|
($0.01)
|
|
($0.02)
|
|
($0.01)
|
Net earnings
attributable to Vulcan
|
|
$1.33
|
|
$1.51
|
|
$4.01
|
|
$3.55
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to Vulcan
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.33
|
|
$1.51
|
|
$4.01
|
|
$3.54
|
Discontinued
operations
|
|
($0.01)
|
|
($0.01)
|
|
($0.02)
|
|
($0.01)
|
Net earnings
attributable to Vulcan
|
|
$1.32
|
|
$1.50
|
|
$3.99
|
|
$3.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
132,810
|
|
132,573
|
|
132,780
|
|
132,564
|
Assuming
dilution
|
|
133,544
|
|
133,268
|
|
133,480
|
|
133,192
|
Effective tax rate
from continuing operations
|
|
22.6%
|
|
22.1%
|
|
24.1%
|
|
21.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table B
|
Vulcan Materials
Company
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Consolidated
Balance Sheets
|
|
September
30
|
|
December
31
|
|
September
30
|
(Condensed and
unaudited)
|
|
2021
|
|
2020
|
|
2020
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$135,683
|
|
$1,197,068
|
|
$1,084,100
|
Restricted
cash
|
|
747
|
|
945
|
|
630
|
Accounts and notes
receivable
|
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
948,347
|
|
558,848
|
|
647,362
|
Allowance for
doubtful accounts
|
|
(10,158)
|
|
(2,551)
|
|
(3,155)
|
Accounts and notes
receivable, net
|
|
938,189
|
|
556,297
|
|
644,207
|
Inventories
|
|
|
|
|
|
|
Finished
products
|
|
411,872
|
|
378,389
|
|
384,575
|
Raw
materials
|
|
58,223
|
|
33,780
|
|
34,562
|
Products in
process
|
|
3,815
|
|
4,555
|
|
5,098
|
Operating supplies
and other
|
|
38,320
|
|
31,861
|
|
31,226
|
Inventories
|
|
512,230
|
|
448,585
|
|
455,461
|
Other current
assets
|
|
131,567
|
|
74,270
|
|
80,935
|
Total current
assets
|
|
1,718,416
|
|
2,277,165
|
|
2,265,333
|
Investments and
long-term receivables
|
|
34,108
|
|
34,301
|
|
41,778
|
Property, plant &
equipment
|
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
10,362,862
|
|
9,102,086
|
|
8,958,342
|
Allowances for
depreciation, depletion & amortization
|
|
(4,815,913)
|
|
(4,676,087)
|
|
(4,614,543)
|
Property, plant &
equipment, net
|
|
5,546,949
|
|
4,425,999
|
|
4,343,799
|
Operating lease
right-of-use assets, net
|
|
656,881
|
|
423,128
|
|
431,227
|
Goodwill
|
|
3,674,763
|
|
3,172,112
|
|
3,172,112
|
Other intangible
assets, net
|
|
1,819,778
|
|
1,123,544
|
|
1,107,091
|
Other noncurrent
assets
|
|
237,107
|
|
230,656
|
|
229,193
|
Total
assets
|
|
$13,688,002
|
|
$11,686,905
|
|
$11,590,533
|
Liabilities
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
12,228
|
|
515,435
|
|
509,435
|
Trade payables and
accruals
|
|
410,340
|
|
273,080
|
|
263,296
|
Other current
liabilities
|
|
454,125
|
|
259,368
|
|
297,162
|
Total current
liabilities
|
|
876,693
|
|
1,047,883
|
|
1,069,893
|
Long-term
debt
|
|
3,874,116
|
|
2,772,240
|
|
2,777,072
|
Deferred income
taxes, net
|
|
1,053,415
|
|
706,050
|
|
685,520
|
Deferred
revenue
|
|
168,138
|
|
174,045
|
|
174,488
|
Noncurrent operating
lease liabilities
|
|
622,275
|
|
399,582
|
|
407,336
|
Other noncurrent
liabilities
|
|
644,226
|
|
559,775
|
|
547,872
|
Total
liabilities
|
|
$7,238,863
|
|
$5,659,575
|
|
$5,662,181
|
Equity
|
|
|
|
|
|
|
Common stock, $1 par
value
|
|
132,704
|
|
132,516
|
|
132,454
|
Capital in excess of
par value
|
|
2,810,257
|
|
2,802,012
|
|
2,797,222
|
Retained
earnings
|
|
3,659,657
|
|
3,274,107
|
|
3,204,671
|
Accumulated other
comprehensive loss
|
|
(176,520)
|
|
(181,305)
|
|
(205,995)
|
Total shareholder's
equity
|
|
6,426,098
|
|
6,027,330
|
|
5,928,352
|
Noncontrolling
interest
|
|
23,041
|
|
0
|
|
0
|
Total
equity
|
|
$6,449,139
|
|
$6,027,330
|
|
$5,928,352
|
Total liabilities and
equity
|
|
$13,688,002
|
|
$11,686,905
|
|
$11,590,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table C
|
Vulcan Materials
Company
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
Consolidated
Statements of Cash Flows
|
|
|
|
September
30
|
(Condensed and
unaudited)
|
|
2021
|
|
2020
|
Operating
Activities
|
|
|
|
|
Net
earnings
|
|
|
|
$532,719
|
|
$469,962
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
320,992
|
|
295,912
|
Noncash operating
lease expense
|
|
32,697
|
|
27,820
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(120,316)
|
|
(2,317)
|
Contributions to
pension plans
|
|
(6,032)
|
|
(6,540)
|
Share-based
compensation expense
|
|
25,200
|
|
23,239
|
Deferred tax
expense
|
|
71,449
|
|
50,346
|
Changes in assets and
liabilities before initial
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(144,635)
|
|
(76,545)
|
Other, net
|
|
|
|
|
12,742
|
|
(3,951)
|
Net cash provided by
operating activities
|
|
$724,816
|
|
$777,926
|
Investing
Activities
|
|
|
|
|
Purchases of
property, plant & equipment
|
|
(318,620)
|
|
(268,989)
|
Proceeds from sale of
property, plant & equipment
|
|
192,367
|
|
9,440
|
Proceeds from sale of
businesses
|
|
0
|
|
651
|
Payment for
businesses acquired, net of acquired cash
|
|
(1,634,492)
|
|
(5,668)
|
Other, net
|
|
|
|
|
161
|
|
10,819
|
Net cash used for
investing activities
|
|
($1,760,584)
|
|
($253,747)
|
Financing
Activities
|
|
|
|
|
Payment of current
maturities and long-term debt
|
|
(1,444,024)
|
|
(250,018)
|
Proceeds from
issuance of long-term debt
|
|
1,600,000
|
|
750,000
|
Debt issuance and
exchange costs
|
|
(13,286)
|
|
(15,394)
|
Settlements of
interest rate derivatives
|
|
0
|
|
(19,863)
|
Purchases of common
stock
|
|
0
|
|
(26,132)
|
Dividends
paid
|
|
|
|
(147,267)
|
|
(135,161)
|
Share-based
compensation, shares withheld for taxes
|
|
(15,776)
|
|
(16,303)
|
Other, net
|
|
|
|
|
(5,462)
|
|
(1,084)
|
Net cash provided by
(used for) financing activities
|
|
($25,815)
|
|
$286,045
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
|
(1,061,583)
|
|
810,224
|
Cash and cash
equivalents and restricted cash at beginning of year
|
|
1,198,013
|
|
274,506
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$136,430
|
|
$1,084,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table D
|
Segment Financial
Data and Unit Shipments
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
per unit data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
September
30
|
|
|
|
September
30
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Total
Revenues
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
$1,172,409
|
|
$1,048,962
|
|
$3,192,685
|
|
$2,987,784
|
Asphalt
2
|
|
220,652
|
|
235,201
|
|
580,396
|
|
597,940
|
Concrete
|
|
219,225
|
|
102,807
|
|
396,785
|
|
298,255
|
Calcium
|
|
1,474
|
|
1,354
|
|
5,494
|
|
5,269
|
Segment
sales
|
|
$1,613,760
|
|
$1,388,324
|
|
$4,175,360
|
|
$3,889,248
|
Aggregates
intersegment sales
|
|
(97,254)
|
|
(78,434)
|
|
(229,463)
|
|
(207,541)
|
Total
revenues
|
|
$1,516,506
|
|
$1,309,890
|
|
$3,945,897
|
|
$3,681,707
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$372,346
|
|
$337,891
|
|
$969,817
|
|
$883,184
|
Asphalt
|
|
|
7,075
|
|
30,217
|
|
17,616
|
|
58,246
|
Concrete
|
|
14,301
|
|
12,157
|
|
32,362
|
|
35,597
|
Calcium
|
|
|
|
|
339
|
|
233
|
|
1,896
|
|
1,713
|
Total
|
|
|
|
$394,061
|
|
$380,498
|
|
$1,021,691
|
|
$978,740
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
Aggregates
|
|
$93,344
|
|
$82,487
|
|
$258,480
|
|
$240,370
|
Asphalt
|
|
|
8,956
|
|
8,644
|
|
27,111
|
|
26,046
|
Concrete
|
|
8,655
|
|
3,987
|
|
16,633
|
|
12,070
|
Calcium
|
|
38
|
|
49
|
|
116
|
|
146
|
Other
|
|
|
|
6,524
|
|
5,795
|
|
18,652
|
|
17,280
|
Total
|
|
|
|
$117,517
|
|
$100,962
|
|
$320,992
|
|
$295,912
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
$897,963
|
|
$807,575
|
|
$2,453,089
|
|
$2,270,321
|
Aggregates -
tons
|
|
60,163
|
|
55,920
|
|
165,128
|
|
157,163
|
Freight-adjusted
sales price 4
|
|
$14.93
|
|
$14.44
|
|
$14.86
|
|
$14.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
Asphalt Mix -
tons
|
|
3,202
|
|
3,493
|
|
8,553
|
|
8,953
|
Asphalt Mix - sales
price
|
|
$59.43
|
|
$58.36
|
|
$58.27
|
|
$58.05
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete
- cubic yards
|
1,596
|
|
775
|
|
2,940
|
|
2,295
|
Ready-mixed concrete
- sales price
|
|
$136.29
|
|
$131.51
|
|
$133.88
|
|
$128.93
|
|
|
|
|
|
|
|
|
|
|
|
|
Calcium -
tons
|
|
52
|
|
49
|
|
197
|
|
193
|
Calcium - sales
price
|
|
$28.29
|
|
$27.51
|
|
$27.81
|
|
$27.18
|
|
|
|
|
|
|
|
|
|
|
|
|
1Includes
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.
|
2Includes
product sales, as well as service revenues from our asphalt
construction paving business.
|
3Freight-adjusted revenues are Aggregates
segment sales excluding freight & delivery revenues and
immaterial
other revenues related to
services, such as landfill tipping fees, that are derived from our
aggregates business.
|
4Freight-adjusted sales price is
calculated as freight-adjusted revenues divided by aggregates unit
shipments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 1
|
|
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 immaterial 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 thousands, except
per ton data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
September
30
|
|
|
|
September
30
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
Segment
sales
|
|
$1,172,409
|
|
$1,048,962
|
|
$3,192,685
|
|
$2,987,784
|
|
Less:
|
|
Freight &
delivery revenues 1
|
|
253,084
|
|
225,382
|
|
685,156
|
|
671,969
|
|
|
|
|
Other
revenues
|
|
21,362
|
|
16,005
|
|
54,440
|
|
45,494
|
|
Freight-adjusted
revenues
|
|
$897,963
|
|
$807,575
|
|
$2,453,089
|
|
$2,270,321
|
|
Unit shipment -
tons
|
|
60,163
|
|
55,920
|
|
165,128
|
|
157,163
|
|
Freight-adjusted
sales price
|
|
$14.93
|
|
$14.44
|
|
$14.86
|
|
$14.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates segment
incremental gross profit flow-through rate is not a GAAP measure
and represents the year-over-year change in gross profit divided by
the year-over-year change in segment sales excluding freight &
delivery (revenues and costs). This metric 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. Reconciliation of this metric to its
nearest GAAP measure is presented below:
|
|
|
|
|
|
|
|
|
|
|
Aggregates Segment
Incremental Gross Profit Margin in Accordance with
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
September
30
|
|
|
|
September
30
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$372,346
|
|
$337,891
|
|
$969,817
|
|
$883,184
|
|
Segment
sales
|
|
$1,172,409
|
|
$1,048,962
|
|
$3,192,685
|
|
$2,987,784
|
|
Gross profit
margin
|
|
31.8%
|
|
32.2%
|
|
30.4%
|
|
29.6%
|
|
Incremental gross
profit margin
|
|
27.9%
|
|
|
|
42.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates Segment
Incremental Gross Profit Flow-through Rate
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
September
30
|
|
|
|
September
30
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$372,346
|
|
$337,891
|
|
$969,817
|
|
$883,184
|
|
Segment
sales
|
|
$1,172,409
|
|
$1,048,962
|
|
$3,192,685
|
|
$2,987,784
|
|
Less:
|
|
Freight &
delivery revenues 1
|
|
253,084
|
|
225,382
|
|
685,156
|
|
671,969
|
|
|
Segment sales
excluding freight & delivery
|
|
$919,325
|
|
$823,580
|
|
$2,507,529
|
|
$2,315,815
|
|
Gross profit margin
excluding freight & delivery
|
|
40.5%
|
|
41.0%
|
|
38.7%
|
|
38.1%
|
|
Incremental gross
profit flow-through rate
|
|
36.0%
|
|
|
|
45.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
"Aggregates segment 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. We do not use this metric as a measure to
allocate resources. Aggregates segment cash gross profit per ton is
computed by dividing Aggregates segment cash gross profit by tons
shipped. Reconciliation of this metric to its nearest GAAP measure
is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates Segment
Cash Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
per ton data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
September
30
|
|
|
|
September
30
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$372,346
|
|
$337,891
|
|
$969,817
|
|
$883,184
|
|
Depreciation,
depletion, accretion and amortization
|
|
93,344
|
|
82,487
|
|
258,480
|
|
240,370
|
|
|
Aggregates segment
cash gross profit
|
|
$465,690
|
|
$420,378
|
|
$1,228,297
|
|
$1,123,554
|
|
Unit shipments -
tons
|
|
60,163
|
|
55,920
|
|
165,128
|
|
157,163
|
|
Aggregates segment
cash gross profit per ton
|
|
$7.74
|
|
$7.52
|
|
$7.44
|
|
$7.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
TTM
|
|
|
|
|
|
|
|
|
|
September
30
|
|
|
|
September
30
|
|
|
|
September
30
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
Net earnings
attributable to Vulcan
|
|
$176,906
|
|
$199,788
|
|
$532,865
|
|
$469,962
|
|
$647,383
|
|
$611,055
|
|
|
Income tax
expense
|
|
51,770
|
|
56,984
|
|
169,692
|
|
130,530
|
|
194,965
|
|
153,964
|
|
|
Interest expense,
net
|
|
36,776
|
|
35,782
|
|
111,589
|
|
100,508
|
|
145,473
|
|
131,343
|
|
|
Loss on discontinued
operations, net of tax
|
|
212
|
|
1,337
|
|
2,702
|
|
2,118
|
|
4,099
|
|
3,621
|
|
|
EBIT
|
|
|
|
$265,664
|
|
$293,891
|
|
$816,848
|
|
$703,118
|
|
$991,920
|
|
$899,983
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
117,517
|
|
100,962
|
|
320,992
|
|
295,912
|
|
421,886
|
|
391,583
|
|
|
EBITDA
|
|
|
$383,181
|
|
$394,853
|
|
$1,137,840
|
|
$999,030
|
|
$1,413,806
|
|
$1,291,566
|
|
|
|
Gain on sale of real
estate and businesses, net
|
|
0
|
|
0
|
|
(114,695)
|
|
0
|
|
(114,695)
|
|
(9,289)
|
|
|
|
Property
donation
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
10,847
|
|
|
|
Charges associated
with divested operations
|
|
404
|
|
5,892
|
|
1,090
|
|
6,666
|
|
1,359
|
|
9,699
|
|
|
|
Business development
1
|
|
24,683
|
|
346
|
|
30,558
|
|
(2,113)
|
|
40,005
|
|
(768)
|
|
|
|
COVID-19 direct
incremental costs 2
|
|
5,902
|
|
2,380
|
|
9,688
|
|
7,389
|
|
12,469
|
|
7,389
|
|
|
|
Pension settlement
charge
|
|
0
|
|
0
|
|
0
|
|
0
|
|
22,740
|
|
0
|
|
|
|
Restructuring
charges
|
|
3,516
|
|
0
|
|
3,516
|
|
1,333
|
|
3,516
|
|
1,333
|
|
|
Adjusted
EBITDA
|
|
$417,686
|
|
$403,471
|
|
$1,067,997
|
|
$1,012,305
|
|
$1,379,200
|
|
$1,310,777
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
(117,517)
|
|
(100,962)
|
|
(320,992)
|
|
(295,912)
|
|
(421,886)
|
|
(391,583)
|
|
|
Adjusted
EBIT
|
|
$300,169
|
|
$302,509
|
|
$747,005
|
|
$716,393
|
|
$957,314
|
|
$919,194
|
|
|
Adjusted EBITDA
margin
|
|
27.5%
|
|
30.8%
|
|
27.1%
|
|
27.5%
|
|
26.9%
|
|
26.9%
|
|
|
1 Represents non-routine charges or
gains associated with acquisitions and dispositions. Costs in the
third quarter of 2021 include USCR acquisition related expenses
of
|
|
|
$21,092,000 and the cost impact of purchase accounting inventory
valuations of $3,000,000.
|
|
|
|
|
|
|
|
|
|
|
2 These
costs include $3,049,000 related to our COVID-19 vaccination
incentive program initiated in the third quarter of
2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Nine Months
Ended
|
|
|
|
TTM
|
|
|
|
|
|
|
|
|
|
September
30
|
|
|
|
September
30
|
|
|
|
September
30
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
Diluted EPS
attributable to Vulcan from continuing operations
|
$1.33
|
|
$1.51
|
|
$4.01
|
|
$3.54
|
|
$4.88
|
|
$4.61
|
|
|
|
Items included in
Adjusted EBITDA above
|
|
0.21
|
|
0.05
|
|
(0.36)
|
|
0.08
|
|
(0.17)
|
|
0.09
|
|
|
|
Alabama NOL
carryforward valuation allowance
|
|
0.00
|
|
0.00
|
|
0.10
|
|
0.00
|
|
0.10
|
|
0.00
|
|
|
|
Acquisition financing
interest costs
|
|
0.00
|
|
0.00
|
|
0.05
|
|
0.00
|
|
0.05
|
|
0.00
|
|
|
Adjusted diluted
EPS
|
|
$1.54
|
|
$1.56
|
|
$3.80
|
|
$3.62
|
|
$4.86
|
|
$4.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
|
|
|
|
|
|
|
|
$12,228
|
|
$509,435
|
|
|
Long-term
debt
|
|
|
|
|
|
|
|
|
|
3,874,116
|
|
2,777,072
|
|
|
Total debt
|
|
|
|
|
|
|
|
|
|
$3,886,344
|
|
$3,286,507
|
|
|
Less: Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
|
|
136,430
|
|
1,084,730
|
|
|
Net debt
|
|
|
|
|
|
|
|
|
|
$3,749,914
|
|
$2,201,777
|
|
|
Trailing-Twelve
Months (TTM) Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
$1,379,200
|
|
$1,310,777
|
|
|
Total debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
2.8x
|
|
2.5x
|
|
|
Net debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
2.7x
|
|
1.7x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 3
|
|
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciliation to the mid-point of the range of 2021 Projected
EBITDA excludes adjustments (as noted in Adjusted EBITDA above) as
they are difficult to forecast (timing or amount). Due to the
difficulty in forecasting such adjustments, we are unable to
estimate their significance. 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 Projected
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-point
|
|
|
Net earnings
attributable to Vulcan
|
|
|
|
|
|
|
|
$640
|
|
|
Income tax
expense
|
|
|
|
|
|
|
|
195
|
|
|
Interest expense, net
of interest income
|
|
|
|
|
|
|
|
145
|
|
|
Discontinued
operations, net of tax
|
|
|
|
|
|
|
|
0
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
|
|
465
|
|
|
Projected
EBITDA
|
|
|
|
|
|
|
|
$1,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Invested
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TTM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
$1,379,200
|
|
$1,310,777
|
|
|
Average invested
capital 1
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment, net
|
|
|
|
|
|
$4,609,064
|
|
$4,346,256
|
|
|
|
Goodwill
|
|
|
|
|
|
3,272,643
|
|
3,169,082
|
|
|
|
Other intangible
assets
|
|
|
|
|
|
1,253,622
|
|
1,093,601
|
|
|
|
Fixed and intangible
assets
|
|
|
|
|
|
$9,135,329
|
|
$8,608,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
$2,090,869
|
|
$1,655,158
|
|
|
|
Less: Cash and cash
equivalents
|
|
|
|
|
|
855,704
|
|
477,562
|
|
|
|
Less: Current
tax
|
|
|
|
|
|
29,606
|
|
16,002
|
|
|
|
Adjusted current
assets
|
|
|
|
|
|
1,205,559
|
|
1,161,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
831,914
|
|
731,033
|
|
|
|
Less: Current
maturities of long-term debt
|
|
|
|
|
|
213,594
|
|
201,907
|
|
|
|
Less: Short-term
debt
|
|
|
|
|
|
0
|
|
0
|
|
|
|
Adjusted current
liabilities
|
|
|
|
|
|
618,320
|
|
529,126
|
|
|
|
Adjusted net working
capital
|
|
|
|
|
|
$587,239
|
|
$632,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested
capital
|
|
|
|
|
|
$9,722,568
|
|
$9,241,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on invested
capital
|
|
|
|
|
|
14.2%
|
|
14.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Average invested capital is based
on a trailing 5-quarters.
|
|
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multimedia:https://www.prnewswire.com/news-releases/vulcan-reports-third-quarter-2021-results-301415936.html
SOURCE Vulcan Materials Company