Aggregates Results Drive Second Quarter
Earnings Growth
Full Year Earnings Growth Outlook
Underpinned by Pricing Momentum and Solid Execution
BIRMINGHAM, Ala., Aug. 4, 2022
/PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's
largest producer of construction aggregates, today announced
results for the quarter ended June
30, 2022.
Financial and Operating Highlights:
- Total revenues increased sharply from the prior year driven by
double-digit growth in the Company's legacy business as well as the
addition of U.S. Concrete (USCR) operations
- Gross profit increased $48
million, or 12 percent, to $446
million
-
- Aggregates gross profit increased $29
million, or 8 percent, to $402
million
- Non-aggregates gross profit increased $19 million, or 78 percent, to $44 million
- Includes $74 million of higher
energy-related costs compared to the prior year's quarter
- Earnings attributable to Vulcan from continuing operations were
$1.50 per diluted share
- Adjusted EBITDA increased 11 percent to $450 million
-
- Includes an approximate $20
million negative impact related to the Company's aggregates
operations in Mexico that were
unexpectedly and arbitrarily shut down in May
- Average selling prices increased in each product line, helping
to offset inflationary pressures
-
- Aggregates pricing increased 9 percent (10 percent
mix-adjusted)
- Average price for asphalt and concrete increased 19 percent and
14 percent, respectively
- Shipments increased year-over-year in each major product line,
reflecting construction activity consistent with the Company's
expectations as well as the contribution from acquisitions
Tom Hill, Vulcan Materials'
Chairman and Chief Executive Officer, stated, "Our teams continued
to execute well and delivered another quarter of solid earnings
growth amidst a challenging backdrop. We are well on our way
to delivering another year of double-digit earnings
growth.
"We increased our aggregates gross profit by 11 percent during
the trailing-twelve months despite ongoing inflation and other
external headwinds. Robust growth in aggregates pricing and a
relentless focus on operating disciplines will help us carry this
momentum forward," continued Hill. "Our asphalt pricing
actions, which began late last year, are increasingly offsetting
sharply higher liquid asphalt costs, and we remain focused on
growing our gross profit in our Asphalt segment. In concrete,
leading indicators for private nonresidential construction activity
and a favorable pricing environment will support earnings growth in
2022."
Highlights as of June 30, 2022
include:
|
Second
Quarter
|
|
Year to
Date
|
|
Trailing-Twelve
Months
|
Amounts in millions,
except per unit data
|
2022
|
2021
|
|
2022
|
2021
|
|
2022
|
2021
|
Total
revenues
|
$ 1,954.3
|
$ 1,361.0
|
|
$ 3,495.0
|
$ 2,429.4
|
|
$ 6,617.8
|
$ 4,914.4
|
Gross profit
|
$
446.2
|
$
398.4
|
|
$
714.9
|
$
627.6
|
|
$ 1,460.7
|
$ 1,310.9
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Segment
sales
|
$ 1,401.8
|
$ 1,125.4
|
|
$ 2,523.0
|
$ 2,020.3
|
|
$ 4,847.7
|
$ 4,025.7
|
Freight-adjusted
revenue
|
$ 1,036.6
|
$
874.0
|
|
$ 1,859.3
|
$ 1,555.1
|
|
$ 3,618.2
|
$ 3,100.0
|
Gross profit
|
$
402.4
|
$
373.8
|
|
$
645.2
|
$
597.5
|
|
$ 1,343.4
|
$ 1,211.4
|
Shipments
(tons)
|
63.8
|
58.5
|
|
116.8
|
105.0
|
|
234.7
|
212.0
|
Freight-adjusted sales
price per ton
|
$
16.25
|
$
14.93
|
|
$
15.91
|
$
14.82
|
|
$
15.41
|
$
14.62
|
Gross profit per
ton
|
$ 6.31
|
$ 6.39
|
|
$ 5.52
|
$ 5.69
|
|
$ 5.72
|
$ 5.71
|
Asphalt, Concrete &
Calcium segment gross profit
|
$ 43.8
|
$ 24.6
|
|
$ 69.7
|
$ 30.1
|
|
$
117.3
|
$ 99.5
|
Selling, Administrative
and General (SAG)
|
$
134.4
|
$
100.7
|
|
$
253.4
|
$
189.3
|
|
$
481.7
|
$
371.4
|
SAG as % of Total
revenues
|
6.9 %
|
7.4 %
|
|
7.3 %
|
7.8 %
|
|
7.3 %
|
7.6 %
|
Earnings from
continuing operations before income taxes
|
$
264.2
|
$
254.1
|
|
$
376.8
|
$
476.4
|
|
$
774.3
|
$
875.7
|
Net earnings
attributable to Vulcan
|
$
187.3
|
$
195.3
|
|
$
279.1
|
$
356.0
|
|
$
594.0
|
$
670.3
|
Adjusted
EBITDA
|
$
450.2
|
$
406.0
|
|
$
744.1
|
$
650.3
|
|
$ 1,545.1
|
$ 1,365.0
|
Earnings attributable
to Vulcan from
continuing operations per diluted share
|
$ 1.50
|
$ 1.47
|
|
$ 2.20
|
$ 2.69
|
|
$ 4.56
|
$ 5.07
|
Adjusted earnings
attributable to Vulcan from
continuing operations per diluted share
|
$ 1.53
|
$ 1.57
|
|
$ 2.25
|
$ 2.26
|
|
$ 5.04
|
$ 4.90
|
Segment Results
Aggregates
Segment gross
profit was $402 million, an increase
of 8 percent from the prior year. Cash gross profit per ton
increased 2 percent to $7.99 per
ton. Strong price growth and solid operational execution
helped offset cost headwinds, including significantly higher diesel
fuel costs ($32 million) and
inflationary pressures for many other parts and supplies. Second
quarter results also included the impacts of the unexpected and
arbitrary shut down by the Mexican government of the Company's
Mexico operations in early May and
a $3 million unfavorable impact from
selling acquired inventory after its markup to fair value.
Price growth in the second quarter was widespread across the
Company's markets. Freight-adjusted pricing was $16.25 per ton, an increase of $1.32 per ton, or 9 percent, over the prior
year. Adjusting for mix impacts, average selling price
increased 10 percent. The Company expects this pricing
momentum to continue throughout the remainder of the year as the
second round of price increases gains traction across the Company's
markets.
Total aggregates shipments increased 9 percent, reflecting
shipment contribution from acquisitions and construction activity
consistent with the Company's expectations. On a same-store
basis, shipments increased 2 percent. Shipment activity was
particularly good in many southeastern markets and Texas.
Freight-adjusted unit cash cost of sales increased 16 percent,
or $1.16 per ton, as compared to the
prior year's second quarter. Excluding the impact of higher
diesel fuel costs and the impact of selling acquired inventory,
cash cost of sales increased 8 percent, or $0.60 per ton.
Asphalt, Concrete and Calcium
Asphalt segment gross
profit was $14 million, in line with
the prior year's second quarter. Asphalt pricing increased 19
percent, or $11.28 per ton, helping
offset a 42 percent ($29 million)
increase in the average price paid for liquid asphalt as well as a
$4 million year-over-year increase in
natural gas cost. Asphalt volumes increased 9 percent overall
driven by growth in Arizona,
California, and Texas, three of the Company's largest asphalt
markets. Strong price growth through the first half of the
year (up 17 percent, or $9.67 per
ton, year-over-year) helped preserve unit material margins (selling
price per ton less cost of raw materials per ton) despite sharp
increases in liquid asphalt as well as higher prices for aggregates
supplied by the Company.
Second quarter Concrete segment gross profit was $30 million, an increase of $20 million from the comparable quarter last
year. Concrete results benefited from the contribution of
USCR operations as well as strong price growth in the Company's
legacy operations. Material unit margins improved as higher
selling prices helped offset higher raw materials costs, including
aggregates supplied by the Company. Segment results were
negatively impacted by higher diesel prices and the availability of
cement and truck drivers in certain markets.
Selling, Administrative and General (SAG)
SAG expense
was $134 million in the quarter, or
6.9 percent of total revenues, and included 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. Trailing-twelve months SAG expense was 7.3 percent
of total revenues, 30 basis points less than the prior year.
Financial Position, Liquidity and Capital
Allocation
Capital expenditures in the second quarter were
$117 million, including both
maintenance and growth projects. Through the first half of
2022, capital expenditures were $240
million. For the full year, the Company expects to
spend $600 to $650 million. Full-year capital
expenditures include spending for USCR operations acquired in
August 2021 as well as spending for
projects put on hold in 2020 due to the pandemic. The Company
will continue to review its plans and will adjust as needed, while
being thoughtful about preserving liquidity.
On June 30, 2022, the ratio of
total debt to trailing-twelve months Adjusted EBITDA was 2.6 times
(2.5 times on a net debt basis). The Company remains
committed to its stated long-term target leverage range of 2.0 to
2.5 times total debt to trailing-twelve-months Adjusted
EBITDA.
On a trailing-twelve months basis, return on invested capital
was 13.6 percent. The Company is focused on driving further
improvement through solid operating earnings growth coupled with
disciplined capital management.
Outlook
Regarding the Company's full year outlook, Mr.
Hill said, "We are updating our full-year Adjusted EBITDA guidance
range to reflect the considerable pricing momentum in our
aggregates business as well as higher than expected energy-related
cost inflation that is currently impacting each of our
segments. Additionally, our outlook now reflects the
previously disclosed impact ($80 to
$100 million) of the closure of our
Mexico operations for the balance
of 2022."
Updates to management's expectations for 2022 include:
- Net earnings attributable to Vulcan of between $680 to $760
million
- Adjusted EBITDA of between $1.60
to $1.70 billion
- Aggregates freight-adjusted price increase of 9 to 11 percent
($14.87 per ton in 2021)
- Mid-single digit growth in Aggregates segment cash gross profit
per ton despite severe inflationary pressures from diesel fuel and
other commodities and supply chain challenges
- Cash gross profit of $280 to
$300 million in Asphalt, Concrete and
Calcium segments, collectively with concrete expected to account
for approximately 80 percent of the total
- SAG expense of between $495 to
$505 million
- Interest expense of approximately $165
million
- Depreciation, depletion, accretion and amortization expense of
approximately $565 million
Mr. Hill continued, "Our ability to grow our aggregates unit
profitability consistently during the last two years of
pandemic-related disruptions differentiates us from the rest of our
industry. These results demonstrate the resiliency of our
business and our ability to capitalize on changes in the macro
environment. We are positioned in markets that will continue
to outperform other parts of the country, from a demand
perspective, both in the near-term and longer term, and we expect
both the favorable pricing dynamics and our strong execution to
lead to attractive growth in aggregates unit profitability in 2022
and beyond."
Mexico Update
After the unexpected and arbitrary shut
down of the Company's operations in Mexico on May 5,
2022, and upon suspension of its three-year customs permit
(granted in March 2022), on
May 13, 2022, the Company disclosed a
potential EBITDA impact of $80 to
$100 million should it be unable to
fully operate in Mexico for the
balance of 2022. Operations remain shut down, and the
aforementioned potential impact has now been incorporated into the
Company's full year 2022 outlook.
On May 8, 2022, the Company filed
an application in its NAFTA arbitration seeking permission to file
an ancillary claim in connection with this latest shutdown of its
remaining operations in Mexico. On
July 11, 2022, the NAFTA arbitration
tribunal granted the Company's application. The ancillary claim
will be addressed as part of the pending arbitration, and it is
expected that the NAFTA arbitration tribunal will issue a decision
no earlier than 2023.
Conference Call
Vulcan will host a conference call at
9:00 a.m. CDT on August 4, 2022. 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 800-225-9448, or 203-518-9708 if
outside the U.S. The conference ID is 2021457. 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
EBITDA as included in Appendix 3 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; 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, 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; labor 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; 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 millions, except
per share data)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
Consolidated
Statements of Earnings
|
|
June
30
|
|
June
30
|
(Condensed and
unaudited)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$1,954.3
|
|
$1,361.0
|
|
$3,495.0
|
|
$2,429.4
|
Cost of
revenues
|
|
1,508.1
|
|
962.6
|
|
2,780.1
|
|
1,801.8
|
Gross profit
|
|
446.2
|
|
398.4
|
|
714.9
|
|
627.6
|
Selling, administrative
and general expenses
|
|
134.4
|
|
100.7
|
|
253.4
|
|
189.3
|
Gain on sale of
property, plant & equipment
|
|
|
|
|
|
|
|
|
and
businesses
|
|
2.0
|
|
0.2
|
|
4.6
|
|
117.4
|
Other operating
expense, net
|
|
(6.2)
|
|
(10.4)
|
|
(11.6)
|
|
(18.7)
|
Operating
earnings
|
|
307.6
|
|
287.5
|
|
454.5
|
|
537.0
|
Other nonoperating
income (expense), net
|
|
(4.7)
|
|
8.3
|
|
(3.0)
|
|
14.2
|
Interest expense,
net
|
|
38.7
|
|
41.7
|
|
74.7
|
|
74.8
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
before income
taxes
|
|
264.2
|
|
254.1
|
|
376.8
|
|
476.4
|
Income tax
expense
|
|
63.7
|
|
57.3
|
|
82.4
|
|
118.0
|
Earnings from
continuing operations
|
|
200.5
|
|
196.8
|
|
294.4
|
|
358.4
|
Loss on discontinued
operations, net of tax
|
|
(13.1)
|
|
(1.5)
|
|
(14.9)
|
|
(2.4)
|
Net earnings
|
|
187.4
|
|
195.3
|
|
279.5
|
|
356.0
|
(Earnings) loss
attributable to noncontrolling interest
|
|
(0.1)
|
|
0.0
|
|
(0.4)
|
|
0.0
|
Net earnings
attributable to Vulcan
|
|
$187.3
|
|
$195.3
|
|
$279.1
|
|
$356.0
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.51
|
|
$1.48
|
|
$2.21
|
|
$2.70
|
Discontinued
operations
|
|
($0.10)
|
|
($0.01)
|
|
($0.11)
|
|
($0.02)
|
Net earnings
|
|
$1.41
|
|
$1.47
|
|
$2.10
|
|
$2.68
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.50
|
|
$1.47
|
|
$2.20
|
|
$2.69
|
Discontinued
operations
|
|
($0.10)
|
|
($0.01)
|
|
($0.11)
|
|
($0.02)
|
Net earnings
|
|
$1.40
|
|
$1.46
|
|
$2.09
|
|
$2.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
133.0
|
|
132.8
|
|
133.0
|
|
132.8
|
Assuming
dilution
|
|
133.5
|
|
133.5
|
|
133.6
|
|
133.5
|
Effective tax rate from
continuing operations
|
|
24.1 %
|
|
22.5 %
|
|
21.9 %
|
|
24.8 %
|
|
|
|
|
|
|
Table B
|
Vulcan Materials
Company
|
and Subsidiary
Companies
|
|
|
|
|
|
|
(in
millions)
|
Consolidated Balance
Sheets
|
|
June
30
|
|
December
31
|
|
June
30
|
(Condensed and
unaudited)
|
|
2022
|
|
2021
|
|
2021
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$120.7
|
|
$235.0
|
|
$857.6
|
Restricted
cash
|
|
3.0
|
|
6.5
|
|
110.8
|
Accounts and notes
receivable
|
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
1,121.6
|
|
849.0
|
|
689.6
|
Allowance for credit
losses
|
|
(10.0)
|
|
(10.3)
|
|
(2.7)
|
Accounts and notes
receivable, net
|
|
1,111.6
|
|
838.7
|
|
686.9
|
Inventories
|
|
|
|
|
|
|
Finished
products
|
|
405.2
|
|
418.0
|
|
373.7
|
Raw
materials
|
|
63.5
|
|
59.9
|
|
37.9
|
Products in
process
|
|
4.8
|
|
4.2
|
|
5.1
|
Operating supplies and
other
|
|
50.7
|
|
39.2
|
|
33.9
|
Inventories
|
|
524.2
|
|
521.3
|
|
450.6
|
Other current
assets
|
|
140.0
|
|
95.1
|
|
94.5
|
Total current
assets
|
|
1,899.5
|
|
1,696.6
|
|
2,200.4
|
Investments and
long-term receivables
|
|
33.1
|
|
34.1
|
|
34.3
|
Property, plant &
equipment
|
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
10,831.1
|
|
10,444.4
|
|
9,094.7
|
Allowances for
depreciation, depletion & amortization
|
|
(5,087.9)
|
|
(4,897.6)
|
|
(4,729.5)
|
Property, plant &
equipment, net
|
|
5,743.2
|
|
5,546.8
|
|
4,365.2
|
Operating lease
right-of-use assets, net
|
|
692.6
|
|
691.4
|
|
464.8
|
Goodwill
|
|
3,742.4
|
|
3,696.7
|
|
3,172.1
|
Other intangible
assets, net
|
|
1,776.0
|
|
1,749.0
|
|
1,103.1
|
Other noncurrent
assets
|
|
294.7
|
|
268.0
|
|
231.1
|
Total assets
|
|
$14,181.5
|
|
$13,682.6
|
|
$11,571.0
|
Liabilities
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
0.5
|
|
5.2
|
|
15.4
|
Short-term
debt
|
|
176.0
|
|
0.0
|
|
0.0
|
Trade payables and
accruals
|
|
441.0
|
|
365.5
|
|
300.1
|
Other current
liabilities
|
|
411.8
|
|
398.6
|
|
283.7
|
Total current
liabilities
|
|
1,029.3
|
|
769.3
|
|
599.2
|
Long-term
debt
|
|
3,873.7
|
|
3,874.8
|
|
2,769.9
|
Deferred income taxes,
net
|
|
1,036.1
|
|
1,005.9
|
|
748.3
|
Deferred
revenue
|
|
163.9
|
|
167.1
|
|
170.2
|
Noncurrent operating
lease liabilities
|
|
645.1
|
|
642.5
|
|
443.1
|
Other noncurrent
liabilities
|
|
689.2
|
|
655.3
|
|
547.2
|
Total
liabilities
|
|
$7,437.3
|
|
$7,114.9
|
|
$5,277.9
|
Equity
|
|
|
|
|
|
|
Common stock, $1 par
value
|
|
132.9
|
|
132.7
|
|
132.7
|
Capital in excess of
par value
|
|
2,817.3
|
|
2,816.5
|
|
2,806.7
|
Retained
earnings
|
|
3,921.4
|
|
3,748.5
|
|
3,531.8
|
Accumulated other
comprehensive loss
|
|
(150.5)
|
|
(152.7)
|
|
(178.1)
|
Total shareholder's
equity
|
|
6,721.1
|
|
6,545.0
|
|
6,293.1
|
Noncontrolling
interest
|
|
23.1
|
|
22.7
|
|
0.0
|
Total equity
|
|
$6,744.2
|
|
$6,567.7
|
|
$6,293.1
|
Total liabilities and
equity
|
|
$14,181.5
|
|
$13,682.6
|
|
$11,571.0
|
|
|
|
|
Table C
|
Vulcan Materials
Company
|
and Subsidiary
Companies
|
|
|
|
|
(in
millions)
|
|
|
Six Months
Ended
|
Consolidated
Statements of Cash Flows
|
|
|
|
June
30
|
(Condensed and
unaudited)
|
|
2022
|
|
2021
|
Operating
Activities
|
|
|
|
|
Net earnings
|
|
$279.5
|
|
$356.0
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
284.0
|
|
203.5
|
Noncash operating lease
expense
|
|
31.3
|
|
20.9
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(4.6)
|
|
(117.4)
|
Contributions to
pension plans
|
|
(3.9)
|
|
(4.1)
|
Share-based
compensation expense
|
|
18.2
|
|
17.7
|
Deferred tax
expense
|
|
6.6
|
|
41.1
|
Changes in assets and
liabilities before initial
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(289.2)
|
|
(135.0)
|
Other, net
|
|
3.6
|
|
15.2
|
Net cash provided by
operating activities
|
|
$325.5
|
|
$397.9
|
Investing
Activities
|
|
|
|
|
Purchases of property,
plant & equipment
|
|
(290.6)
|
|
(192.2)
|
Proceeds from sale of
property, plant & equipment
|
|
10.2
|
|
190.7
|
Payment for businesses
acquired, net of acquired cash
|
|
(188.1)
|
|
0.0
|
Other, net
|
|
(0.2)
|
|
0.0
|
Net cash used for
investing activities
|
|
($468.7)
|
|
($1.5)
|
Financing
Activities
|
|
|
|
|
Proceeds from
short-term debt
|
|
559.8
|
|
0.0
|
Payment of short-term
debt
|
|
(383.8)
|
|
0.0
|
Payment of current
maturities and long-term debt
|
|
(7.6)
|
|
(500.0)
|
Debt issuance and
exchange costs
|
|
(0.7)
|
|
(13.3)
|
Payment of finance
leases
|
|
(18.8)
|
|
(1.3)
|
Dividends
paid
|
|
(106.3)
|
|
(98.2)
|
Share-based
compensation, shares withheld for taxes
|
|
(17.2)
|
|
(12.8)
|
Other, net
|
|
0.0
|
|
(0.4)
|
Net cash provided by
(used for) financing activities
|
|
$25.4
|
|
($626.0)
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
(117.8)
|
|
(229.6)
|
Cash and cash
equivalents and restricted cash at beginning of year
|
|
241.5
|
|
1,198.0
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$123.7
|
|
$968.4
|
|
|
|
|
|
|
|
|
Table D
|
Segment Financial
Data and Unit Shipments
|
|
|
(in millions, except
unit and per unit data)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30
|
|
June
30
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Total
Revenues
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
$1,401.8
|
|
$1,125.4
|
|
$2,523.0
|
|
$2,020.3
|
Asphalt
2
|
|
274.8
|
|
212.6
|
|
442.0
|
|
359.7
|
Concrete
|
|
422.3
|
|
96.1
|
|
782.8
|
|
177.6
|
Calcium
|
|
1.4
|
|
1.9
|
|
3.3
|
|
4.0
|
Segment
sales
|
|
$2,100.3
|
|
$1,436.1
|
|
$3,751.1
|
|
$2,561.6
|
Aggregates intersegment
sales
|
|
(146.0)
|
|
(75.1)
|
|
(256.1)
|
|
(132.2)
|
Total
revenues
|
|
$1,954.3
|
|
$1,361.0
|
|
$3,495.0
|
|
$2,429.4
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$402.4
|
|
$373.8
|
|
$645.2
|
|
$597.5
|
Asphalt
|
|
13.6
|
|
13.5
|
|
10.7
|
|
10.5
|
Concrete
|
|
30.0
|
|
10.3
|
|
58.2
|
|
18.1
|
Calcium
|
|
0.2
|
|
0.8
|
|
0.8
|
|
1.5
|
Total
|
|
$446.2
|
|
$398.4
|
|
$714.9
|
|
$627.6
|
Depreciation,
Depletion, Accretion and Amortization
|
|
Aggregates
|
|
$107.3
|
|
$84.3
|
|
$210.9
|
|
$165.1
|
Asphalt
|
|
8.5
|
|
9.1
|
|
17.1
|
|
18.2
|
Concrete
|
|
20.7
|
|
4.0
|
|
41.8
|
|
8.0
|
Calcium
|
|
0.1
|
|
0.0
|
|
0.1
|
|
0.1
|
Other
|
|
6.4
|
|
5.7
|
|
14.1
|
|
12.1
|
Total
|
|
$143.0
|
|
$103.1
|
|
$284.0
|
|
$203.5
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
$1,036.6
|
|
$874.0
|
|
$1,859.3
|
|
$1,555.1
|
Aggregates - tons
(thousands)
|
|
63,809
|
|
58,528
|
|
116,830
|
|
104,965
|
Freight-adjusted sales
price 4
|
|
$16.25
|
|
$14.93
|
|
$15.91
|
|
$14.82
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
Asphalt Mix - tons
(thousands)
|
|
3,422
|
|
3,134
|
|
5,743
|
|
5,351
|
Asphalt Mix - sales
price
|
|
$69.42
|
|
$58.14
|
|
$67.25
|
|
$57.58
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete -
cubic yards (thousands)
|
|
2,831
|
|
731
|
|
5,331
|
|
1,344
|
Ready-mixed concrete -
sales price
|
|
$148.75
|
|
$130.61
|
|
$146.43
|
|
$131.03
|
|
|
|
|
|
|
|
|
|
Calcium - tons
(thousands)
|
|
49
|
|
71
|
|
103
|
|
145
|
Calcium - sales
price
|
|
$28.75
|
|
$27.64
|
|
$31.85
|
|
$27.64
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
Trailing-Twelve
Months
|
|
|
|
|
|
June
30
|
|
June
30
|
|
June
30
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
sales
|
|
$1,401.8
|
|
$1,125.4
|
|
$2,523.0
|
|
$2,020.3
|
|
$4,847.7
|
|
$4,025.7
|
Less:
|
|
Freight & delivery
revenues 1
|
|
336.0
|
|
234.9
|
|
608.3
|
|
432.1
|
|
1,128.2
|
|
862.4
|
|
|
|
Other
revenues
|
|
29.2
|
|
16.5
|
|
55.4
|
|
33.1
|
|
101.3
|
|
63.3
|
Freight-adjusted
revenues
|
|
$1,036.6
|
|
$874.0
|
|
$1,859.3
|
|
$1,555.1
|
|
$3,618.2
|
|
$3,100.0
|
Unit shipment -
tons
|
|
63.8
|
|
58.5
|
|
116.8
|
|
105.0
|
|
234.7
|
|
212.1
|
Freight-adjusted sales
price
|
|
$16.25
|
|
$14.93
|
|
$15.91
|
|
$14.82
|
|
$15.41
|
|
$14.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Trailing-Twelve
Months
|
|
|
|
|
|
June
30
|
|
June
30
|
|
June
30
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$402.4
|
|
$373.8
|
|
$645.2
|
|
$597.5
|
|
$1,343.4
|
|
$1,211.4
|
Segment
sales
|
|
$1,401.8
|
|
$1,125.4
|
|
$2,523.0
|
|
$2,020.3
|
|
$4,847.7
|
|
$4,025.7
|
Gross profit
margin
|
|
28.7 %
|
|
33.2 %
|
|
25.6 %
|
|
29.6 %
|
|
27.7 %
|
|
30.1 %
|
Incremental gross
profit margin
|
|
10.3 %
|
|
|
|
9.5 %
|
|
|
|
16.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates Segment
Incremental Gross Profit Flow-through Rate
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Trailing-Twelve
Months
|
|
|
|
|
|
June
30
|
|
June
30
|
|
June
30
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$402.4
|
|
$373.8
|
|
$645.2
|
|
$597.5
|
|
$1,343.4
|
|
$1,211.4
|
Segment
sales
|
|
$1,401.8
|
|
$1,125.4
|
|
$2,523.0
|
|
$2,020.3
|
|
$4,847.7
|
|
$4,025.7
|
Less:
|
|
Freight & delivery
revenues 1
|
|
336.0
|
|
234.9
|
|
608.3
|
|
432.1
|
|
1,128.2
|
|
862.4
|
|
Segment sales excluding
freight & delivery
|
|
$1,065.8
|
|
$890.5
|
|
$1,914.7
|
|
$1,588.2
|
|
$3,719.5
|
|
$3,163.3
|
Gross profit margin
excluding freight & delivery
|
|
37.8 %
|
|
42.0 %
|
|
33.7 %
|
|
37.6 %
|
|
36.1 %
|
|
38.3 %
|
Incremental gross
profit flow-through rate
|
|
16.3 %
|
|
|
|
14.6 %
|
|
|
|
23.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 2
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 millions, except
per ton data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
Trailing-Twelve
Months
|
|
|
|
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$402.4
|
|
$373.8
|
|
$645.2
|
|
$597.5
|
|
$1,343.4
|
|
$1,211.4
|
Depreciation,
depletion, accretion and amortization
|
|
107.3
|
|
84.3
|
|
210.9
|
|
165.1
|
|
406.2
|
|
328.4
|
|
Aggregates segment cash
gross profit
|
|
$509.7
|
|
$458.1
|
|
$856.1
|
|
$762.6
|
|
$1,749.6
|
|
$1,539.8
|
Unit shipments -
tons
|
|
63.8
|
|
58.5
|
|
116.8
|
|
105.0
|
|
234.7
|
|
212.1
|
Aggregates segment cash
gross profit per ton
|
|
$7.99
|
|
$7.83
|
|
$7.33
|
|
$7.27
|
|
$7.45
|
|
$7.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Six Months
Ended
|
|
|
|
Trailing-Twelve
Months
|
|
|
|
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net earnings
attributable to Vulcan
|
|
$187.3
|
|
$195.3
|
|
$279.1
|
|
$356.0
|
|
$594.0
|
|
$670.3
|
Income tax
expense
|
|
63.7
|
|
57.3
|
|
82.4
|
|
118.0
|
|
164.6
|
|
200.2
|
Interest expense,
net
|
|
38.7
|
|
41.7
|
|
74.7
|
|
74.8
|
|
147.6
|
|
144.5
|
Loss on discontinued
operations, net of tax
|
|
13.1
|
|
1.5
|
|
14.9
|
|
2.4
|
|
15.7
|
|
5.2
|
Depreciation,
depletion, accretion and amortization
|
|
143.0
|
|
103.1
|
|
284.0
|
|
203.5
|
|
543.5
|
|
405.3
|
EBITDA
|
|
|
$445.8
|
|
$398.9
|
|
$735.1
|
|
$754.7
|
|
$1,465.3
|
|
$1,425.5
|
|
Gain on sale of real
estate and businesses, net
|
|
$0.0
|
|
$0.0
|
|
$0.0
|
|
($114.7)
|
|
$0.0
|
|
($114.7)
|
|
Charges associated with
divested operations
|
|
0.4
|
|
0.4
|
|
0.7
|
|
0.7
|
|
1.5
|
|
6.8
|
|
Business development
1
|
|
3.1
|
|
5.5
|
|
5.6
|
|
5.9
|
|
38.7
|
|
15.7
|
|
COVID-19 direct
incremental costs
|
|
0.0
|
|
1.3
|
|
0.0
|
|
3.8
|
|
9.6
|
|
8.9
|
|
Pension settlement
charge
|
|
0.0
|
|
0.0
|
|
0.0
|
|
0.0
|
|
12.1
|
|
22.7
|
|
Restructuring
charges
|
|
0.9
|
|
0.0
|
|
2.7
|
|
0.0
|
|
17.7
|
|
0.0
|
Adjusted
EBITDA
|
|
$450.2
|
|
$406.0
|
|
$744.1
|
|
$650.3
|
|
$1,545.1
|
|
$1,365.0
|
1
Represents non-routine charges or gains
associated with acquisitions and dispositions including the cost
impact of purchase accounting inventory
valuations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Six Months
Ended
|
|
|
|
Trailing-Twelve
Months
|
|
|
|
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Diluted EPS
attributable to Vulcan from continuing operations
|
$1.50
|
|
$1.47
|
|
$2.20
|
|
$2.69
|
|
$4.56
|
|
$5.07
|
|
Items included in
Adjusted EBITDA above
|
|
0.03
|
|
0.05
|
|
0.05
|
|
(0.58)
|
|
0.48
|
|
(0.32)
|
|
NOL carryforward
valuation allowance
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.10
|
|
0.00
|
|
0.10
|
|
Acquisition financing
interest costs
|
|
0.00
|
|
0.05
|
|
0.00
|
|
0.05
|
|
0.00
|
|
0.05
|
Adjusted diluted
EPS
|
|
$1.53
|
|
$1.57
|
|
$2.25
|
|
$2.26
|
|
$5.04
|
|
$4.90
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
June
30
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
Debt
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
|
|
|
|
$0.5
|
|
$15.4
|
Short-term
debt
|
|
|
|
|
|
176.0
|
|
0.0
|
Long-term
debt
|
|
|
|
|
|
3,873.7
|
|
2,769.9
|
Total debt
|
|
|
|
|
|
$4,050.2
|
|
$2,785.3
|
Less: Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
123.7
|
|
968.4
|
Net debt
|
|
|
|
|
|
$3,926.5
|
|
$1,816.9
|
Trailing-Twelve Months
(TTM) Adjusted EBITDA
|
|
|
|
|
|
$1,545.1
|
|
$1,365.0
|
Total debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
2.6x
|
|
2.0x
|
Net debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
2.5x
|
|
1.3x
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
reconciliation to the mid-point of the range of 2022 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 Projected
EBITDA
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Mid-point
|
Net earnings
attributable to Vulcan
|
|
|
|
|
|
|
|
$720
|
Income tax
expense
|
|
|
|
|
|
|
|
200
|
Interest expense, net
of interest income
|
|
|
|
|
|
|
|
165
|
Discontinued
operations, net of tax
|
|
|
|
|
|
|
|
0
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
|
|
565
|
Projected
EBITDA
|
|
|
|
|
|
|
|
$1,650
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
June
30
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
Adjusted
EBITDA
|
|
|
|
|
|
$1,545.1
|
|
$1,365.0
|
Average invested
capital
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment, net
|
|
|
|
|
|
$5,385.6
|
|
$4,376.3
|
|
Goodwill
|
|
|
|
|
|
3,599.0
|
|
3,172.1
|
|
Other intangible
assets
|
|
|
|
|
|
1,640.0
|
|
1,112.6
|
|
Fixed and intangible
assets
|
|
|
|
|
|
$10,624.6
|
|
$8,661.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
$1,835.5
|
|
$2,153.2
|
|
Less: Cash and cash
equivalents
|
|
|
|
|
|
320.6
|
|
991.9
|
|
Less: Current
tax
|
|
|
|
|
|
46.2
|
|
19.2
|
|
Adjusted current
assets
|
|
|
|
|
|
1,468.7
|
|
1,142.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
833.5
|
|
864.3
|
|
Less: Current
maturities of long-term debt
|
|
|
|
|
|
7.5
|
|
311.2
|
|
Less: Short-term
debt
|
|
|
|
|
|
55.2
|
|
0.0
|
|
Adjusted current
liabilities
|
|
|
|
|
|
770.8
|
|
553.2
|
|
Adjusted net working
capital
|
|
|
|
|
|
$697.9
|
|
$589.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested
capital
|
|
|
|
|
|
$11,322.5
|
|
$9,250.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on invested
capital
|
|
|
|
|
|
13.6 %
|
|
14.8 %
|
![Vulcan Materials Company, Birmingham, AL. (PRNewsFoto/Vulcan Materials Company) (PRNewsFoto/) (PRNewsFoto/) Vulcan Materials Company, Birmingham, AL. (PRNewsFoto/Vulcan Materials Company) (PRNewsFoto/) (PRNewsFoto/)](https://mma.prnewswire.com/media/324245/vulcan_materials_company_logo.jpg)
View original content to download
multimedia:https://www.prnewswire.com/news-releases/vulcan-reports-second-quarter-2022-results-301599536.html
SOURCE Vulcan Materials Company