Sales and Operating Execution Drives Strong
Earnings Growth
Margin Expansion in All Product Lines
BIRMINGHAM, Ala., Oct. 26,
2023 /PRNewswire/ -- Vulcan Materials Company (NYSE:
VMC), the nation's largest producer of construction aggregates,
today announced results for the quarter ended September 30, 2023.
Financial Highlights Include:
|
Third
Quarter
|
|
Year-to-Date
|
|
Trailing-Twelve
Months
|
Amounts in millions,
except per unit data
|
2023
|
2022
|
|
2023
|
2022
|
|
2023
|
2022
|
Total
revenues
|
$ 2,186
|
$ 2,088
|
|
$ 5,948
|
$ 5,583
|
|
$ 7,680
|
$ 7,190
|
Gross profit
|
$
591
|
$
493
|
|
$ 1,476
|
$ 1,208
|
|
$ 1,826
|
$ 1,560
|
Selling, Administrative
and General (SAG)
|
$
144
|
$
135
|
|
$
400
|
$
389
|
|
$
527
|
$
513
|
As % of Total
revenues
|
6.6 %
|
6.5 %
|
|
6.7 %
|
7.0 %
|
|
6.9 %
|
7.1 %
|
Net earnings
attributable to Vulcan
|
$
276
|
$
177
|
|
$
706
|
$
456
|
|
$
825
|
$
594
|
Adjusted
EBITDA
|
$
602
|
$
507
|
|
$ 1,535
|
$ 1,251
|
|
$ 1,910
|
$ 1,634
|
Earnings attributable
to Vulcan from
continuing operations per diluted
share
|
$ 2.09
|
$ 1.33
|
|
$ 5.34
|
$ 3.54
|
|
$ 6.25
|
$ 4.58
|
Adjusted earnings
attributable to Vulcan from
continuing operations per diluted
share
|
$ 2.29
|
$ 1.78
|
|
$ 5.54
|
$ 4.03
|
|
$ 6.62
|
$ 5.28
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Shipments
(tons)
|
63.9
|
65.4
|
|
179.0
|
182.2
|
|
233.2
|
239.9
|
Freight-adjusted sales
price per ton
|
$ 19.29
|
$ 16.79
|
|
$ 18.90
|
$ 16.23
|
|
$ 18.45
|
$ 15.91
|
Gross profit
|
$
508
|
$
436
|
|
$ 1,310
|
$ 1,081
|
|
$ 1,637
|
$ 1,407
|
Gross profit per
ton
|
$ 7.95
|
$ 6.67
|
|
$ 7.32
|
$ 5.94
|
|
$ 7.02
|
$ 5.87
|
Cash gross
profit
|
$
634
|
$
550
|
|
$ 1,667
|
$ 1,406
|
|
$ 2,111
|
$ 1,834
|
Cash gross profit per
ton
|
$ 9.92
|
$ 8.41
|
|
$ 9.31
|
$ 7.72
|
|
$ 9.05
|
$ 7.64
|
Tom Hill, Vulcan Materials'
Chairman and Chief Executive Officer, said, "Through the first nine
months of 2023, Adjusted EBITDA has improved 23 percent over the
prior year, and margin has expanded 340 basis points.
Aggregates cash gross profit per ton has improved 21 percent
and now exceeds $9 per ton.
These strong results demonstrate the compounding benefits of
our strategic disciplines and the durability of our aggregates-led
business. We remain focused on finishing the year strong and
carrying solid momentum into next year. As a result, we now
expect our full-year Adjusted EBITDA to be $1.95 to $2.00
billion for 2023."
Segment Results
Aggregates
In the third quarter, segment gross profit increased 17 percent to
$508 million ($7.95 per ton), and gross profit margin expanded
200 basis points. Cash gross profit per ton improved 18
percent to $9.92 per ton. These
improvements resulted from continued pricing momentum and solid
operational execution.
Aggregates shipments decreased 2 percent as compared to the
prior year's third quarter. Shipment growth in certain
Southeastern markets continued to benefit from healthy industrial
project activity, which dampened the impact of weakness in
residential demand.
Price growth in the third quarter was consistently strong with
all markets realizing year-over-year improvement.
Freight-adjusted selling prices increased 15 percent, or
$2.50 per ton, as compared to the
prior year, more than offsetting a 12 percent increase in
freight-adjusted unit cash cost of sales. On a sequential
basis, freight-adjusted selling prices continued to improve,
reflecting momentum from mid-year price increases, price growth
realized on backlogged projects, and the added benefit of positive
geographic mix (approximately 200 basis points).
The favorable pricing environment coupled with strong
operational execution has led to consistent improvement in unit
profitability through the first nine months. On a
year-to-date basis, cash gross profit per ton has improved 21
percent to $9.31 per ton. Gross
profit margin has expanded year over year in each quarter and has
improved 220 basis points year-to-date.
Asphalt, Concrete and Calcium
Asphalt segment gross profit was $56
million, an increase of $26
million over the prior year's third quarter, and gross
profit margin expanded 660 basis points. Cash gross profit
was $65 million versus $38 million in the prior year. Shipments
increased 11 percent with growth widespread across the Company's
footprint. Modest price growth and lower liquid asphalt costs
also contributed to the year-over-year improvement in earnings.
Concrete segment gross profit was $26
million, and gross profit margin expanded 120 basis points.
Cash gross profit was $47
million, versus $48 million in
the prior year which included earnings from the Company's divested
operations in New York,
New Jersey and Pennsylvania. Unit gross profit improved
34 percent, or $3.11 per cubic yard,
despite lower shipments. Shipments in the third quarter were
impacted by the divestiture and the timing of large projects in the
prior year. Pricing increased 11 percent.
Calcium segment gross profit approximated the prior year's third
quarter.
Selling, Administrative and General (SAG) and Other
Income/(Expense)
SAG expense in the quarter was $144
million, or 6.6 percent of total revenues.
Trailing-twelve months SAG expense was 6.9 percent of total
revenues, 20 basis points lower than the prior year.
We are currently finalizing an agreement for the disposition of
our concrete assets in Texas,
subject to obtaining regulatory approvals and the satisfaction of
other customary closing conditions. As a result, these assets
were classified as held for sale during the quarter and resulted in
a pre-tax charge of $28 million
($21 million after-tax).
Financial Position, Liquidity and Capital Allocation
Capital expenditures for maintenance and growth projects were
$141 million in the third quarter and
$411 million through the first nine
months. The Company expects to spend $600 to $650
million for maintenance and growth projects in 2023.
Additionally, as planned the Company began deploying capital for
opportunistic land purchases of strategic reserves in California, North
Carolina and Texas during
the third quarter; expenditures in the quarter were $173 million. The Company returned
$57 million to shareholders through
dividends, a 7 percent increase versus the prior year's third
quarter.
On September 30, 2023, the ratio
of total debt to trailing-twelve months Adjusted EBITDA was 2.0
times (1.8 times on a net debt basis). On a trailing-twelve
months basis, return on average invested capital was 15.4 percent,
a 180 basis points improvement over the prior year.
Outlook
Regarding the Company's outlook for the remainder of 2023, Mr. Hill
said, "We continue to execute at a high level and successfully
navigate the twists and turns of the broader macro economy.
Regardless of the macro environment, aggregates can be a
price-cost winner in all parts of the cycle. Our year-to-date
unit profitability growth of more than 20 percent demonstrates the
durability of our business. Aggregates shipments continue to
trend towards the upper end of full-year expectations, supported by
industrial-related nonresidential projects in key markets and
IIJA-related construction activity. As a result, we expect
full-year Adjusted EBITDA of $1.95 to
$2.00 billion, a 21 percent
improvement at the midpoint."
Mr. Hill continued, "We expect 2024 to be another year of
earnings growth and strong cash generation. Geographic
footprint is important, from both a diversification and growth
standpoint, and ours is unmatched. Leading indicators remain
supportive of continued growth in public construction activity, and
we are well positioned in high growth markets where the need is
greatest. On the private side, recovery in single-family
construction activity and healthy shipment levels to large
industrial-related projects, particularly manufacturing, will help
partially offset continued softness in multi-family construction as
well as other categories of nonresidential. The overall
pricing environment remains positive, and we carry good momentum
into 2024.
We have a durable business model with strong fundamentals
through economic cycles. We are positioned in geographic
markets that will continue to outperform other parts of the
country, and our continued execution on our operating and
commercial disciplines will lead to another year of earnings growth
in 2024."
Conference Call
Vulcan will host a conference call at 10:00
a.m. CT on October 26, 2023.
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 800-343-4849,
or 203-518-9814 if outside the U.S. The conference ID is
4363477. 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, 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; 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.
|
|
|
|
|
|
|
|
|
|
Table A
|
Vulcan Materials
Company
|
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
Consolidated
Statements of Earnings
|
|
September
30
|
|
September
30
|
(Condensed and
unaudited)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$2,185.8
|
|
$2,088.3
|
|
$5,947.6
|
|
$5,583.3
|
Cost of
revenues
|
|
(1,594.8)
|
|
(1,595.4)
|
|
(4,471.3)
|
|
(4,375.5)
|
Gross profit
|
|
591.0
|
|
492.9
|
|
1,476.3
|
|
1,207.8
|
Selling, administrative
and general expenses
|
|
(143.9)
|
|
(135.3)
|
|
(400.4)
|
|
(388.7)
|
Gain on sale of
property, plant & equipment
|
|
|
|
|
|
|
|
|
and
businesses
|
|
4.3
|
|
23.8
|
|
22.8
|
|
28.4
|
Loss on
impairments
|
|
(28.3)
|
|
(67.8)
|
|
(28.3)
|
|
(67.8)
|
Other operating
expense, net
|
|
(4.2)
|
|
(8.2)
|
|
(13.1)
|
|
(19.8)
|
Operating
earnings
|
|
418.9
|
|
305.4
|
|
1,057.3
|
|
759.9
|
Other nonoperating
income (expense), net
|
|
(6.4)
|
|
1.3
|
|
(5.3)
|
|
(1.7)
|
Interest expense,
net
|
|
(46.6)
|
|
(46.1)
|
|
(142.2)
|
|
(120.8)
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
before income
taxes
|
|
365.9
|
|
260.6
|
|
909.8
|
|
637.4
|
Income tax
expense
|
|
(85.8)
|
|
(82.3)
|
|
(194.4)
|
|
(164.6)
|
Earnings from
continuing operations
|
|
280.1
|
|
178.3
|
|
715.4
|
|
472.8
|
Loss on discontinued
operations, net of tax
|
|
(2.8)
|
|
(1.2)
|
|
(8.6)
|
|
(16.1)
|
Net earnings
|
|
|
|
277.3
|
|
177.1
|
|
706.8
|
|
456.7
|
Earnings attributable
to noncontrolling interest
|
|
(0.8)
|
|
0.0
|
|
(1.0)
|
|
(0.5)
|
Net earnings
attributable to Vulcan
|
|
$276.5
|
|
$177.1
|
|
$705.8
|
|
$456.2
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$2.10
|
|
$1.34
|
|
$5.37
|
|
$3.55
|
Discontinued
operations
|
|
($0.02)
|
|
($0.01)
|
|
($0.07)
|
|
($0.12)
|
Net earnings
|
|
$2.08
|
|
$1.33
|
|
$5.30
|
|
$3.43
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
Continuing
operations
|
|
$2.09
|
|
$1.33
|
|
$5.34
|
|
$3.54
|
Discontinued
operations
|
|
($0.02)
|
|
$0.00
|
|
($0.06)
|
|
($0.12)
|
Net earnings
|
|
$2.07
|
|
$1.33
|
|
$5.28
|
|
$3.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
133.0
|
|
133.0
|
|
133.1
|
|
133.0
|
Assuming
dilution
|
|
133.7
|
|
133.6
|
|
133.7
|
|
133.6
|
Effective tax rate from
continuing operations
|
|
23.4 %
|
|
31.6 %
|
|
21.4 %
|
|
25.8 %
|
|
|
|
|
|
|
|
|
Table B
|
Vulcan Materials
Company
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Consolidated Balance
Sheets
|
|
September
30
|
|
December
31
|
|
September
30
|
(Condensed and
unaudited)
|
|
2023
|
|
2022
|
|
2022
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$340.0
|
|
$161.4
|
|
$122.4
|
Restricted
cash
|
|
5.0
|
|
0.1
|
|
24.5
|
Accounts and notes
receivable
|
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
1,199.2
|
|
1,056.2
|
|
1,223.6
|
Allowance for credit
losses
|
|
(14.7)
|
|
(10.9)
|
|
(11.0)
|
Accounts and notes
receivable, net
|
|
1,184.5
|
|
1,045.3
|
|
1,212.6
|
Inventories
|
|
|
|
|
|
|
Finished
products
|
|
448.1
|
|
439.3
|
|
403.3
|
Raw
materials
|
|
50.5
|
|
63.4
|
|
64.9
|
Products in
process
|
|
8.6
|
|
6.0
|
|
5.6
|
Operating supplies and
other
|
|
63.4
|
|
70.6
|
|
68.2
|
Inventories
|
|
570.6
|
|
579.3
|
|
542.0
|
Other current
assets
|
|
106.0
|
|
115.9
|
|
140.8
|
Assets held for
sale
|
|
495.1
|
|
0.0
|
|
291.1
|
Total current
assets
|
|
2,701.2
|
|
1,902.0
|
|
2,333.4
|
Investments and
long-term receivables
|
|
31.2
|
|
31.8
|
|
33.1
|
Property, plant &
equipment
|
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
11,610.4
|
|
11,306.4
|
|
11,133.6
|
Allowances for
depreciation, depletion & amortization
|
|
(5,498.4)
|
|
(5,255.1)
|
|
(5,148.3)
|
Property, plant &
equipment, net
|
|
6,112.0
|
|
6,051.3
|
|
5,985.3
|
Operating lease
right-of-use assets, net
|
|
521.5
|
|
572.6
|
|
574.2
|
Goodwill
|
|
3,531.7
|
|
3,689.6
|
|
3,704.5
|
Other intangible
assets, net
|
|
1,471.8
|
|
1,702.1
|
|
1,708.3
|
Other noncurrent
assets
|
|
251.1
|
|
285.2
|
|
277.0
|
Total assets
|
|
$14,620.5
|
|
$14,234.6
|
|
$14,615.8
|
Liabilities
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
0.5
|
|
0.5
|
|
0.5
|
Short-term
debt
|
|
0.0
|
|
100.0
|
|
312.0
|
Trade payables and
accruals
|
|
412.8
|
|
454.5
|
|
484.2
|
Other current
liabilities
|
|
440.8
|
|
401.6
|
|
454.7
|
Liabilities of assets
held for sale
|
|
10.1
|
|
0.0
|
|
111.1
|
Total current
liabilities
|
|
864.2
|
|
956.6
|
|
1,362.5
|
Long-term
debt
|
|
3,874.3
|
|
3,875.2
|
|
3,874.2
|
Deferred income taxes,
net
|
|
1,068.3
|
|
1,072.8
|
|
1,073.0
|
Deferred
revenue
|
|
147.4
|
|
159.8
|
|
161.7
|
Noncurrent operating
lease liabilities
|
|
516.0
|
|
548.4
|
|
549.8
|
Other noncurrent
liabilities
|
|
685.1
|
|
669.6
|
|
715.7
|
Total
liabilities
|
|
$7,155.3
|
|
$7,282.4
|
|
$7,736.9
|
Equity
|
|
|
|
|
|
|
Common stock, $1 par
value
|
|
132.9
|
|
132.9
|
|
132.9
|
Capital in excess of
par value
|
|
2,862.4
|
|
2,839.0
|
|
2,826.9
|
Retained
earnings
|
|
4,595.0
|
|
4,111.4
|
|
4,045.3
|
Accumulated other
comprehensive loss
|
|
(149.7)
|
|
(154.7)
|
|
(149.4)
|
Total shareholder's
equity
|
|
7,440.6
|
|
6,928.6
|
|
6,855.7
|
Noncontrolling
interest
|
|
24.6
|
|
23.6
|
|
23.2
|
Total equity
|
|
$7,465.2
|
|
$6,952.2
|
|
$6,878.9
|
Total liabilities and
equity
|
|
$14,620.5
|
|
$14,234.6
|
|
$14,615.8
|
|
|
|
|
|
|
|
Table C
|
Vulcan Materials
Company
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
Nine Months
Ended
|
Consolidated
Statements of Cash Flows
|
|
September
30
|
(Condensed and
unaudited)
|
|
2023
|
|
2022
|
Operating
Activities
|
|
|
|
|
Net earnings
|
|
|
|
$706.8
|
|
$456.7
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
464.4
|
|
435.0
|
Noncash operating lease
expense
|
|
40.7
|
|
46.6
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(22.8)
|
|
(28.4)
|
Loss on
impairments
|
|
28.3
|
|
67.8
|
Contributions to
pension plans
|
|
(5.6)
|
|
(5.8)
|
Share-based
compensation expense
|
|
43.5
|
|
27.9
|
Deferred tax provision
(benefit)
|
|
(6.0)
|
|
35.4
|
Changes in assets and
liabilities before initial
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(206.0)
|
|
(295.5)
|
Other, net
|
|
|
|
|
11.9
|
|
8.6
|
Net cash provided by
operating activities
|
|
$1,055.2
|
|
$748.3
|
Investing
Activities
|
|
|
|
|
Purchases of property,
plant & equipment
|
|
(666.3)
|
|
(450.4)
|
Proceeds from sale of
property, plant & equipment
|
|
26.2
|
|
37.8
|
Proceeds from sale of
businesses
|
|
130.0
|
|
0.0
|
Payment for businesses
acquired, net of acquired cash and adjustments
|
|
0.9
|
|
(528.0)
|
Other, net
|
|
|
|
|
0.0
|
|
(0.1)
|
Net cash used for
investing activities
|
|
($509.2)
|
|
($940.7)
|
Financing
Activities
|
|
|
|
|
Proceeds from
short-term debt
|
|
166.1
|
|
1,288.2
|
Payment of short-term
debt
|
|
(266.1)
|
|
(976.2)
|
Payment of current
maturities and long-term debt
|
|
(550.5)
|
|
(557.6)
|
Proceeds from issuance
of long-term debt
|
|
550.0
|
|
550.0
|
Debt issuance and
exchange costs
|
|
(3.4)
|
|
(2.9)
|
Payment of finance
leases
|
|
(17.2)
|
|
(27.0)
|
Purchases of common
stock
|
|
(49.9)
|
|
0.0
|
Dividends
paid
|
|
|
|
(171.6)
|
|
(159.5)
|
Share-based
compensation, shares withheld for taxes
|
|
(19.9)
|
|
(17.4)
|
Other, net
|
|
|
|
|
0.0
|
|
0.2
|
Net cash provided by
(used for) financing activities
|
|
($362.5)
|
|
$97.8
|
Net increase (decrease)
in cash and cash equivalents and restricted cash
|
|
183.5
|
|
(94.6)
|
Cash and cash
equivalents and restricted cash at beginning of year
|
|
161.5
|
|
241.5
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$345.0
|
|
$146.9
|
|
|
|
|
|
|
|
|
|
|
|
Table D
|
Segment Financial
Data and Unit Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per unit data)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30
|
|
September
30
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Total
Revenues
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
$1,626.1
|
|
$1,490.5
|
|
$4,498.9
|
|
$4,013.5
|
Asphalt
2
|
|
347.2
|
|
310.2
|
|
854.3
|
|
752.1
|
Concrete
|
|
364.6
|
|
450.5
|
|
993.3
|
|
1,233.4
|
Calcium
|
|
2.3
|
|
2.1
|
|
7.0
|
|
5.4
|
Segment
sales
|
|
$2,340.2
|
|
$2,253.3
|
|
$6,353.5
|
|
$6,004.4
|
Aggregates intersegment
sales
|
|
(154.4)
|
|
(165.0)
|
|
(405.9)
|
|
(421.1)
|
Total
revenues
|
|
$2,185.8
|
|
$2,088.3
|
|
$5,947.6
|
|
$5,583.3
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$508.4
|
|
$436.1
|
|
$1,309.8
|
|
$1,081.3
|
Asphalt
|
|
|
55.9
|
|
29.5
|
|
113.3
|
|
40.2
|
Concrete
|
|
26.0
|
|
26.5
|
|
50.7
|
|
84.7
|
Calcium
|
|
|
|
|
0.7
|
|
0.8
|
|
2.5
|
|
1.6
|
Total
|
|
|
|
$591.0
|
|
$492.9
|
|
$1,476.3
|
|
$1,207.8
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
|
Aggregates
|
|
$125.6
|
|
$113.5
|
|
$357.4
|
|
$324.4
|
Asphalt
|
|
|
8.8
|
|
8.9
|
|
26.7
|
|
26.0
|
Concrete
|
|
20.5
|
|
21.7
|
|
60.4
|
|
63.5
|
Calcium
|
|
0.0
|
|
0.0
|
|
0.1
|
|
0.1
|
Other
|
|
|
|
6.2
|
|
6.9
|
|
19.8
|
|
21.0
|
Total
|
|
|
|
$161.1
|
|
$151.0
|
|
$464.4
|
|
$435.0
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
$1,233.5
|
|
$1,097.2
|
|
$3,383.8
|
|
$2,956.5
|
Aggregates -
tons
|
|
63.9
|
|
65.4
|
|
179.0
|
|
182.2
|
Freight-adjusted sales
price 4
|
|
$19.29
|
|
$16.79
|
|
$18.90
|
|
$16.23
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
Asphalt Mix -
tons
|
|
4.0
|
|
3.6
|
|
10.1
|
|
9.4
|
Asphalt Mix - sales
price 5
|
|
$76.22
|
|
$74.80
|
|
$75.37
|
|
$70.17
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete -
cubic yards
|
|
2.1
|
|
2.9
|
|
6.0
|
|
8.3
|
Ready-mixed concrete -
sales price 5
|
|
$169.98
|
|
$153.54
|
|
$165.27
|
|
$148.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
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
|
|
Nine Months
Ended
|
|
Trailing Twelve
Months Ended
|
|
|
|
|
|
September
30
|
|
September
30
|
|
September
30
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
sales
|
|
$1,626.1
|
|
$1,490.5
|
|
$4,498.9
|
|
$4,013.5
|
|
$5,758.2
|
|
$5,165.8
|
Less:
|
|
Freight & delivery
revenues 1
|
|
366.3
|
|
364.6
|
|
1,040.8
|
|
972.9
|
|
1,359.1
|
|
1,239.7
|
|
|
|
Other
revenues
|
|
26.3
|
|
28.7
|
|
74.3
|
|
84.1
|
|
96.6
|
|
108.7
|
Freight-adjusted
revenues
|
|
$1,233.5
|
|
$1,097.2
|
|
$3,383.8
|
|
$2,956.5
|
|
$4,302.5
|
|
$3,817.4
|
Unit shipments -
tons
|
|
63.9
|
|
65.4
|
|
179.0
|
|
182.2
|
|
233.2
|
|
239.9
|
Freight-adjusted sales
price
|
|
$19.29
|
|
$16.79
|
|
$18.90
|
|
$16.23
|
|
$18.45
|
|
$15.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. We do not use this metric as a measure to allocate
resources. 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. Reconciliation of this
metric to its nearest GAAP measure is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Gross
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per ton data)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Trailing Twelve
Months Ended
|
|
|
|
|
|
September
30
|
|
September
30
|
|
September
30
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$508.4
|
|
$436.1
|
|
$1,309.8
|
|
$1,081.3
|
|
$1,636.9
|
|
$1,407.2
|
Depreciation,
depletion, accretion and amortization
|
|
125.6
|
|
113.5
|
|
357.4
|
|
324.4
|
|
474.2
|
|
426.3
|
|
Aggregates segment cash
gross profit
|
|
$634.0
|
|
$549.6
|
|
$1,667.2
|
|
$1,405.7
|
|
$2,111.1
|
|
$1,833.5
|
Unit shipments -
tons
|
|
63.9
|
|
65.4
|
|
179.0
|
|
182.2
|
|
233.2
|
|
239.9
|
Aggregates segment
gross profit per ton
|
|
$7.95
|
|
$6.67
|
|
$7.32
|
|
$5.94
|
|
$7.02
|
|
$5.87
|
Aggregates segment cash
gross profit per ton
|
|
$9.92
|
|
$8.41
|
|
$9.31
|
|
$7.72
|
|
$9.05
|
|
$7.64
|
Asphalt
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$55.9
|
|
$29.5
|
|
$113.3
|
|
$40.2
|
|
$130.4
|
|
$43.8
|
Depreciation,
depletion, accretion and amortization
|
|
8.8
|
|
8.9
|
|
26.7
|
|
26.0
|
|
35.8
|
|
34.9
|
|
Asphalt segment cash
gross profit
|
|
$64.7
|
|
$38.4
|
|
$140.0
|
|
$66.2
|
|
$166.2
|
|
$78.7
|
Concrete
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$26.0
|
|
$26.5
|
|
$50.7
|
|
$84.7
|
|
$55.3
|
|
$106.6
|
Depreciation,
depletion, accretion and amortization
|
|
20.5
|
|
21.7
|
|
60.4
|
|
63.5
|
|
80.0
|
|
88.4
|
|
Concrete segment cash
gross profit
|
|
$46.5
|
|
$48.2
|
|
$111.1
|
|
$148.2
|
|
$135.3
|
|
$195.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
Trailing Twelve
Months Ended
|
|
|
|
|
|
September
30
|
|
September
30
|
|
September
30
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net earnings
attributable to Vulcan
|
|
$276.5
|
|
$177.1
|
|
$705.8
|
|
$456.2
|
|
$825.1
|
|
$594.2
|
Income tax expense,
including discontinued operations
|
|
84.8
|
|
81.8
|
|
191.3
|
|
159.0
|
|
218.8
|
|
189.3
|
Interest expense,
net
|
|
46.6
|
|
46.1
|
|
142.2
|
|
120.8
|
|
189.8
|
|
156.9
|
Depreciation,
depletion, accretion and amortization
|
|
161.1
|
|
151.0
|
|
464.4
|
|
435.0
|
|
616.9
|
|
577.0
|
EBITDA
|
|
|
$569.0
|
|
$456.0
|
|
$1,503.8
|
|
$1,171.0
|
|
$1,850.7
|
|
$1,517.3
|
|
Loss on discontinued
operations
|
|
$3.8
|
|
$1.6
|
|
$11.7
|
|
$21.7
|
|
$15.1
|
|
$22.5
|
|
Gain (loss) on sale of
real estate and businesses, net
|
|
0.0
|
|
(23.5)
|
|
(15.2)
|
|
(23.5)
|
|
2.2
|
|
(23.5)
|
|
Charges associated with
divested operations
|
|
0.0
|
|
0.4
|
|
4.7
|
|
1.0
|
|
7.4
|
|
1.5
|
|
Acquisition related
charges 1
|
|
1.2
|
|
4.7
|
|
2.0
|
|
13.0
|
|
6.1
|
|
32.9
|
|
COVID-19 direct
incremental costs
|
|
0.0
|
|
0.0
|
|
0.0
|
|
0.0
|
|
0.0
|
|
3.7
|
|
Pension settlement
charge
|
|
0.0
|
|
0.0
|
|
0.0
|
|
0.0
|
|
0.0
|
|
12.1
|
|
Loss on
impairments
|
|
28.3
|
|
67.8
|
|
28.3
|
|
67.8
|
|
28.3
|
|
67.8
|
Adjusted
EBITDA
|
|
$602.2
|
|
$507.0
|
|
$1,535.1
|
|
$1,251.0
|
|
$1,909.8
|
|
$1,634.3
|
1
Represents charges associated with
acquisitions requiring clearance under federal antitrust laws. Cost
for trailing-twelve months ended September 30, 2022 include U.S.
Concrete acquisition related expenses of $0.5 million, the cost
impact of purchase accounting inventory valuations of $11.8 million
and change in control severance and retention charges of $13.5
million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Trailing Twelve
Months Ended
|
|
|
|
|
|
September
30
|
|
September
30
|
|
September
30
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net earnings
attributable to Vulcan
|
|
$2.07
|
|
$1.33
|
|
$5.28
|
|
$3.42
|
|
$6.17
|
|
$4.45
|
Items included in
Adjusted EBITDA above, net of tax
|
|
0.18
|
|
0.38
|
|
0.17
|
|
0.54
|
|
0.33
|
|
0.76
|
NOL carryforward
valuation allowance
|
|
0.04
|
|
0.07
|
|
0.09
|
|
0.07
|
|
0.12
|
|
0.07
|
Adjusted diluted EPS
attributable to Vulcan from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continuing
operations
|
|
$2.29
|
|
$1.78
|
|
$5.54
|
|
$4.03
|
|
$6.62
|
|
$5.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 Projected
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-point
|
Net earnings
attributable to Vulcan
|
|
|
|
|
|
|
|
|
|
|
|
$890
|
Income tax expense,
including discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
250
|
Interest expense, net
of interest income
|
|
|
|
|
|
|
|
|
|
|
|
195
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
|
|
|
|
|
|
610
|
Projected
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
$1,945
|
Items included in
Adjusted Diluted EPS above
|
|
|
|
|
|
|
|
|
|
|
|
$30
|
Projected Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
$1,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
Appendix 3
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
|
|
|
|
|
|
|
|
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
millions)
|
|
|
|
|
September
30
|
|
|
|
|
2023
|
|
2022
|
Debt
|
|
|
|
|
|
Current maturities of
long-term debt
|
$0.5
|
|
$0.5
|
Short-term
debt
|
0.0
|
|
312.0
|
Long-term
debt
|
3,874.3
|
|
3,874.2
|
Total debt
|
$3,874.8
|
|
$4,186.7
|
Less: Cash and cash
equivalents and restricted cash
|
345.0
|
|
146.9
|
Net debt
|
$3,529.8
|
|
$4,039.8
|
Trailing-Twelve Months
(TTM) Adjusted EBITDA
|
$1,909.8
|
|
$1,634.3
|
Total debt to TTM
Adjusted EBITDA
|
2.0x
|
|
2.6x
|
Net debt to TTM
Adjusted EBITDA
|
1.8x
|
|
2.5x
|
|
|
|
|
|
|
|
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):
|
|
|
|
|
|
|
|
Return on Invested
Capital
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
Trailing Twelve
Months Ended
|
|
|
|
|
September
30
|
|
September
30
|
|
|
|
|
2023
|
|
2022
|
Adjusted
EBITDA
|
$1,909.8
|
|
$1,634.3
|
Average invested
capital
|
|
|
|
|
Property, plant &
equipment, net
|
$6,059.8
|
|
$5,716.4
|
|
Goodwill
|
3,661.0
|
|
3,705.5
|
|
Other intangible
assets
|
1,642.9
|
|
1,761.0
|
|
Fixed and intangible
assets
|
$11,363.7
|
|
$11,182.9
|
|
|
|
|
|
|
|
|
Current
assets
|
$2,154.6
|
|
$1,855.3
|
|
Less: Cash and cash
equivalents
|
192.3
|
|
156.3
|
|
Less: Current
tax
|
41.7
|
|
49.3
|
|
Adjusted current
assets
|
1,920.6
|
|
1,649.7
|
|
|
|
|
|
|
|
|
Current
liabilities
|
946.7
|
|
945.7
|
|
Less: Current
maturities of long-term debt
|
0.5
|
|
4.5
|
|
Less: Short-term
debt
|
82.4
|
|
117.6
|
|
Adjusted current
liabilities
|
863.8
|
|
823.6
|
|
Adjusted net working
capital
|
$1,056.8
|
|
$826.1
|
|
|
|
|
|
|
|
Average invested
capital
|
$12,420.5
|
|
$12,009.0
|
|
|
|
|
|
|
|
Return on invested
capital
|
15.4 %
|
|
13.6 %
|
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SOURCE Vulcan Materials Company