Pricing Momentum and Solid Execution Drive
Strong Earnings Growth
Full Year Outlook Underpinned by Uniquely
Positioned Aggregates Business
BIRMINGHAM, Ala., May 4, 2023
/PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's
largest producer of construction aggregates, today announced
results for the quarter ended March
31, 2023.
Financial Highlights Include:
|
First
Quarter
|
|
Trailing-Twelve
Months
|
Amounts in millions,
except per unit data
|
2023
|
2022
|
|
2023
|
2022
|
Total
revenues
|
$ 1,649
|
$ 1,541
|
|
$ 7,424
|
$ 6,025
|
Gross profit
|
$
302
|
$
269
|
|
$ 1,591
|
$ 1,413
|
Selling, Administrative
and General (SAG)
|
$
117
|
$
119
|
|
$
514
|
$
448
|
As % of Total
revenues
|
7.1 %
|
7.7 %
|
|
6.9 %
|
7.4 %
|
Net earnings
attributable to Vulcan
|
$
121
|
$ 92
|
|
$
604
|
$
602
|
Adjusted
EBITDA
|
$
338
|
$
294
|
|
$ 1,669
|
$ 1,501
|
Earnings attributable
to Vulcan from
continuing operations per diluted
share
|
$ 0.92
|
$ 0.70
|
|
$ 4.67
|
$ 4.54
|
Adjusted earnings
attributable to Vulcan from
continuing operations per diluted
share
|
$ 0.95
|
$ 0.73
|
|
$ 5.34
|
$ 5.08
|
Aggregates
segment
|
|
|
|
|
|
Shipments
(tons)
|
51.7
|
53.0
|
|
235.1
|
229.5
|
Freight-adjusted sales
price per ton
|
$ 18.67
|
$ 15.52
|
|
$ 17.10
|
$ 15.06
|
Gross profit
|
$
303
|
$
243
|
|
$ 1,468
|
$ 1,315
|
Gross profit per
ton
|
$ 5.85
|
$ 4.58
|
|
$ 6.25
|
$ 5.73
|
Cash gross
profit
|
$
415
|
$
346
|
|
$ 1,918
|
$ 1,698
|
Cash gross profit per
ton
|
$ 8.02
|
$ 6.53
|
|
$ 8.16
|
$ 7.40
|
Tom Hill, Vulcan Materials'
Chairman and Chief Executive Officer, said, "The powerful
combination of our aggregates-led business and our commitment to
execute on our strategic disciplines resulted in strong earnings
growth in the first quarter. Aggregates earnings increased
sharply with cash gross profit per ton improving 23 percent and
gross margin expanding despite lower shipments and persistent
inflationary cost pressures. As we look ahead, we are
increasing our full-year earnings outlook to reflect the pricing
momentum and solid execution realized in our first quarter
results. We now expect full-year Adjusted EBITDA of
$1.850 to $1.950 billion."
Segment Results
Aggregates
Segment gross
profit increased 25 percent to $303
million ($5.85 per ton).
Gross profit margin expanded 170 basis points due to strong pricing
growth and solid operational execution. Earnings improvement
was widespread across the Company's footprint.
Aggregates shipments decreased 2 percent. Shipments across the
Southeast and East coast benefited from more favorable weather,
while shipments in California and
Texas were impacted by significant
rainfall throughout most of the quarter. First quarter volume
also benefited from some shipments delayed by unfavorable weather
in the fourth quarter.
The pricing environment remains positive. Pricing actions
effective at the start of the year resulted in another quarter of
accelerating price growth. Freight-adjusted selling prices
increased 20 percent, or $3.15 per
ton, as compared to the prior year, with all markets realizing
year-over-year improvement. Adjusting for mix impacts,
average selling prices increased 19 percent in the first
quarter.
Consistent with expectations, freight-adjusted unit cash cost of
sales increased 18 percent, or $1.66
per ton, over the prior year. Solid operational execution
helped mitigate continued year-over-year inflationary pressures,
particularly for parts and services. The average price of
diesel was 3 percent higher ($2
million) than the prior year.
First quarter cash gross profit per ton improved 23 percent to
$8.02 per ton. The Company
remains focused on compounding improvements in unit margins
throughout the cycle through fixed cost leverage, price growth and
operating efficiencies.
Asphalt, Concrete and Calcium
Asphalt segment gross
profit was $1 million in the first
quarter. Cash gross profit was $10
million compared to $6 million
in the prior year. Pricing increased 15 percent, or
$9.38 per ton, and drove the
year-over-year improvement in earnings. The average unit cost
of liquid asphalt was 7 percent higher ($4
million) than the prior year. Shipments decreased 11
percent as compared to the prior year's first quarter. The
year-over-year decline was primarily driven by lower shipments in
California and Arizona, the Company's largest asphalt
markets, due to significant rainfall in the quarter.
Concrete segment gross profit was a loss of $2 million, and cash gross profit was
$18 million in the first
quarter. Shipments decreased 30 percent as compared to the
prior year. Current year results were impacted by the
divestiture of the Company's operations in New York, New
Jersey and Pennsylvania. Additionally, unfavorable
weather in California and
Texas and a slowdown in
residential construction activity affected segment earnings.
Calcium segment gross profit was $0.8
million compared to $0.7
million in the prior year's first quarter.
Selling, Administrative and General (SAG)
SAG expense
in the quarter was $117 million, or
7.1 percent of total revenues, a 60 basis-points improvement versus
the prior year. Trailing-twelve months SAG expense was 6.9
percent of total revenues. The Company remains focused on
further leveraging its overhead cost structure.
Financial Position, Liquidity and Capital
Allocation
Capital expenditures in the first quarter were
$113 million, including both
maintenance and growth projects. In 2023, the Company expects
to spend $600 to $650 million, including growth projects.
The Company will continue to review its plans and will adjust as
needed.
On March 31, 2023, the ratio of
total debt to trailing-twelve-months Adjusted EBITDA was 2.3 times
(2.2 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 average invested
capital was 13.7 percent, a 20 basis-points improvement from
December 31, 2022. The Company
is focused on driving improvement through solid operating earnings
growth coupled with disciplined capital management.
Outlook
Regarding the Company's full-year outlook for
2023, Mr. Hill stated, "We are increasing our full-year earnings
expectations to incorporate the success of our pricing efforts
during the first quarter. Leading indicators of demand remain
mixed, and full-year shipments for 2023 will still ultimately
depend upon the depth of the decline in residential construction
activity and the timing of highway starts converting to
shipments. Despite a challenging macro-environment, our
uniquely positioned aggregates business and our best-in-class
execution position us to successfully navigate shifts in
demand."
Management expectations for 2023 include the following
updates:
- Aggregates freight-adjusted price growth of approximately 15
percent ($16.40 in 2022)
- Net earnings attributable to Vulcan of between $815 and $895
million
- Adjusted EBITDA of between $1.850
and $1.950 billion
- All other aspects of the Company's expectations for 2023 remain
unchanged from those reported as part of its fourth quarter
earnings release in February
Conference Call
Vulcan will host a conference call at
10:00 a.m. CT on May 4, 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 800-245-3047, or 203-518-9765 if
outside the U.S. The conference ID is 3751956. 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 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; 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.
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
|
Consolidated
Statements of Earnings
|
|
|
|
|
|
|
|
March
31
|
(Condensed and
unaudited)
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
|
|
|
|
$1,649.0
|
|
$1,540.7
|
Cost of
revenues
|
|
|
|
|
|
(1,347.0)
|
|
(1,271.9)
|
Gross profit
|
|
|
|
|
|
302.0
|
|
268.8
|
Selling, administrative
and general expenses
|
|
|
|
|
|
(117.3)
|
|
(119.0)
|
Gain on sale of
property, plant & equipment
|
|
|
|
|
|
|
|
|
and
businesses
|
|
|
|
|
|
1.7
|
|
2.6
|
Loss on
impairments
|
|
|
|
|
|
0.0
|
|
(0.1)
|
Other operating income
(expense), net
|
|
|
|
|
|
0.8
|
|
(5.3)
|
Operating
earnings
|
|
|
|
|
|
187.2
|
|
147.0
|
Other nonoperating
income, net
|
|
|
|
|
|
1.4
|
|
1.5
|
Interest expense,
net
|
|
|
|
|
|
(49.0)
|
|
(35.9)
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
before income
taxes
|
|
|
|
|
|
139.6
|
|
112.6
|
Income tax
expense
|
|
|
|
|
|
(16.6)
|
|
(18.7)
|
Earnings from
continuing operations
|
|
|
|
|
|
123.0
|
|
93.9
|
Loss on discontinued
operations, net of tax
|
|
|
|
|
|
(2.1)
|
|
(1.8)
|
Net earnings
|
|
|
|
|
|
|
|
120.9
|
|
92.1
|
Earnings attributable
to noncontrolling interest
|
|
|
|
|
|
(0.2)
|
|
(0.3)
|
Net earnings
attributable to Vulcan
|
|
|
|
|
|
$120.7
|
|
$91.8
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
|
|
|
$0.92
|
|
$0.70
|
Discontinued
operations
|
|
|
|
|
|
($0.01)
|
|
($0.01)
|
Net earnings
|
|
|
|
|
|
$0.91
|
|
$0.69
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
Continuing
operations
|
|
|
|
|
|
$0.92
|
|
$0.70
|
Discontinued
operations
|
|
|
|
|
|
($0.02)
|
|
($0.01)
|
Net earnings
|
|
|
|
|
|
$0.90
|
|
$0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
133.2
|
|
133.0
|
Assuming
dilution
|
|
|
|
|
|
133.7
|
|
133.6
|
Effective tax rate from
continuing operations
|
|
|
|
|
|
11.9 %
|
|
16.6 %
|
|
|
|
|
|
|
|
|
Table B
|
Vulcan Materials
Company
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Consolidated Balance
Sheets
|
|
March
31
|
|
December
31
|
|
March
31
|
(Condensed and
unaudited)
|
|
2023
|
|
2022
|
|
2022
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$139.6
|
|
$161.4
|
|
$123.1
|
Restricted
cash
|
|
0.4
|
|
0.1
|
|
9.9
|
Accounts and notes
receivable
|
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
988.1
|
|
1,056.2
|
|
928.6
|
Allowance for credit
losses
|
|
(13.1)
|
|
(10.9)
|
|
(10.7)
|
Accounts and notes
receivable, net
|
|
975.0
|
|
1,045.3
|
|
917.9
|
Inventories
|
|
|
|
|
|
|
Finished
products
|
|
437.8
|
|
439.3
|
|
412.2
|
Raw
materials
|
|
70.6
|
|
63.4
|
|
63.2
|
Products in
process
|
|
6.2
|
|
6.0
|
|
4.4
|
Operating supplies and
other
|
|
71.0
|
|
70.6
|
|
44.7
|
Inventories
|
|
585.6
|
|
579.3
|
|
524.5
|
Other current
assets
|
|
91.9
|
|
115.9
|
|
87.2
|
Total current
assets
|
|
1,792.5
|
|
1,902.0
|
|
1,662.6
|
Investments and
long-term receivables
|
|
31.3
|
|
31.8
|
|
36.5
|
Property, plant &
equipment
|
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
11,413.5
|
|
11,306.4
|
|
10,724.1
|
Allowances for
depreciation, depletion & amortization
|
|
(5,368.6)
|
|
(5,255.1)
|
|
(4,998.5)
|
Property, plant &
equipment, net
|
|
6,044.9
|
|
6,051.3
|
|
5,725.6
|
Operating lease
right-of-use assets, net
|
|
569.5
|
|
572.6
|
|
679.7
|
Goodwill
|
|
3,689.6
|
|
3,689.6
|
|
3,709.2
|
Other intangible
assets, net
|
|
1,679.2
|
|
1,702.1
|
|
1,751.9
|
Other noncurrent
assets
|
|
269.9
|
|
285.2
|
|
295.3
|
Total assets
|
|
$14,076.9
|
|
$14,234.6
|
|
$13,860.8
|
Liabilities
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
0.5
|
|
0.5
|
|
3.9
|
Short-term
debt
|
|
0.0
|
|
100.0
|
|
100.0
|
Trade payables and
accruals
|
|
370.3
|
|
454.5
|
|
390.1
|
Other current
liabilities
|
|
386.1
|
|
401.6
|
|
398.7
|
Total current
liabilities
|
|
756.9
|
|
956.6
|
|
892.7
|
Long-term
debt
|
|
3,876.9
|
|
3,875.2
|
|
3,874.5
|
Deferred income taxes,
net
|
|
1,060.1
|
|
1,072.8
|
|
1,007.7
|
Deferred
revenue
|
|
157.8
|
|
159.8
|
|
166.8
|
Noncurrent operating
lease liabilities
|
|
545.9
|
|
548.4
|
|
631.7
|
Other noncurrent
liabilities
|
|
668.6
|
|
669.6
|
|
689.1
|
Total
liabilities
|
|
$7,066.2
|
|
$7,282.4
|
|
$7,262.5
|
Equity
|
|
|
|
|
|
|
Common stock, $1 par
value
|
|
133.1
|
|
132.9
|
|
132.9
|
Capital in excess of
par value
|
|
2,832.9
|
|
2,839.0
|
|
2,806.8
|
Retained
earnings
|
|
4,174.0
|
|
4,111.4
|
|
3,787.2
|
Accumulated other
comprehensive loss
|
|
(153.1)
|
|
(154.7)
|
|
(151.6)
|
Total shareholder's
equity
|
|
6,986.9
|
|
6,928.6
|
|
6,575.3
|
Noncontrolling
interest
|
|
23.8
|
|
23.6
|
|
23.0
|
Total equity
|
|
$7,010.7
|
|
$6,952.2
|
|
$6,598.3
|
Total liabilities and
equity
|
|
$14,076.9
|
|
$14,234.6
|
|
$13,860.8
|
|
|
|
|
|
|
|
Table C
|
Vulcan Materials
Company
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
Three Months
Ended
|
Consolidated
Statements of Cash Flows
|
|
|
|
March
31
|
(Condensed and
unaudited)
|
|
2023
|
|
2022
|
Operating
Activities
|
|
|
|
|
Net earnings
|
|
|
|
$120.9
|
|
$92.1
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
148.4
|
|
141.0
|
Noncash operating lease
expense
|
|
13.6
|
|
16.4
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(1.7)
|
|
(2.6)
|
Loss on
impairments
|
|
0.0
|
|
0.1
|
Contributions to
pension plans
|
|
(1.9)
|
|
(2.0)
|
Share-based
compensation expense
|
|
8.2
|
|
7.5
|
Deferred tax provision
(benefit)
|
|
(13.3)
|
|
1.1
|
Changes in assets and
liabilities before initial
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(55.2)
|
|
(77.8)
|
Other, net
|
|
|
|
|
2.3
|
|
(0.2)
|
Net cash provided by
operating activities
|
|
$221.3
|
|
$175.6
|
Investing
Activities
|
|
|
|
|
Purchases of property,
plant & equipment
|
|
(193.6)
|
|
(160.4)
|
Proceeds from sale of
property, plant & equipment
|
|
1.4
|
|
6.2
|
Proceeds from sale of
businesses
|
|
130.0
|
|
0.0
|
Payment for businesses
acquired, net of acquired cash
|
|
0.5
|
|
(148.2)
|
Other, net
|
|
|
|
|
0.0
|
|
(0.1)
|
Net cash used for
investing activities
|
|
($61.7)
|
|
($302.5)
|
Financing
Activities
|
|
|
|
|
Proceeds from
short-term debt
|
|
28.0
|
|
189.0
|
Payment of short-term
debt
|
|
(128.0)
|
|
(89.0)
|
Payment of current
maturities and long-term debt
|
|
(550.4)
|
|
(2.3)
|
Proceeds from issuance
of long-term debt
|
|
550.0
|
|
0.0
|
Debt issuance and
exchange costs
|
|
(3.4)
|
|
(0.7)
|
Payment of finance
leases
|
|
(5.8)
|
|
(8.5)
|
Dividends
paid
|
|
|
|
(57.2)
|
|
(53.2)
|
Share-based
compensation, shares withheld for taxes
|
|
(14.3)
|
|
(17.1)
|
Other, net
|
|
|
|
|
0.0
|
|
0.2
|
Net cash provided by
(used for) financing activities
|
|
($181.1)
|
|
$18.4
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
(21.5)
|
|
(108.5)
|
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
|
|
$140.0
|
|
$133.0
|
|
|
|
|
|
|
|
|
|
|
|
Table D
|
Segment Financial
Data and Unit Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
unit and per unit data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
Total
Revenues
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
|
|
|
|
$1,294.3
|
|
$1,121.2
|
Asphalt
2
|
|
|
|
|
|
169.8
|
|
167.1
|
Concrete
|
|
|
|
|
|
285.1
|
|
360.5
|
Calcium
|
|
|
|
|
|
2.3
|
|
1.9
|
Segment
sales
|
|
|
|
|
|
$1,751.5
|
|
$1,650.7
|
Aggregates intersegment
sales
|
|
|
|
|
|
(102.5)
|
|
(110.0)
|
Total
revenues
|
|
|
|
|
|
$1,649.0
|
|
$1,540.7
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
$302.8
|
|
$242.8
|
Asphalt
|
|
|
|
|
|
|
0.8
|
|
(2.9)
|
Concrete
|
|
|
|
|
|
(2.4)
|
|
28.2
|
Calcium
|
|
|
|
|
|
|
|
|
0.8
|
|
0.7
|
Total
|
|
|
|
|
|
|
|
$302.0
|
|
$268.8
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
|
Aggregates
|
|
|
|
|
|
$112.3
|
|
$103.6
|
Asphalt
|
|
|
|
|
|
|
9.0
|
|
8.6
|
Concrete
|
|
|
|
|
|
20.4
|
|
21.1
|
Calcium
|
|
|
|
|
|
0.0
|
|
0.0
|
Other
|
|
|
|
|
|
|
|
6.7
|
|
7.7
|
Total
|
|
|
|
|
|
|
|
$148.4
|
|
$141.0
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
|
|
|
|
$965.9
|
|
$822.7
|
Aggregates - tons
(thousands)
|
|
|
|
|
|
51,738
|
|
53,020
|
Freight-adjusted sales
price 4
|
|
|
|
|
|
$18.67
|
|
$15.52
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
Asphalt Mix - tons
(thousands)
|
|
|
|
|
|
2,077
|
|
2,322
|
Asphalt Mix - sales
price
|
|
|
|
|
|
$73.44
|
|
$64.06
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete -
cubic yards (thousands)
|
|
|
|
|
1,762
|
|
2,500
|
Ready-mixed concrete -
sales price
|
|
|
|
|
|
$161.25
|
|
$143.81
|
|
|
|
|
|
|
|
|
|
|
|
|
Calcium - tons
(thousands)
|
|
|
|
|
|
59
|
|
54
|
Calcium - sales
price
|
|
|
|
|
|
$38.11
|
|
$34.67
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Trailing Twelve Months
Ended
|
|
|
|
|
|
March 31
|
|
March 31
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Aggregates segment
|
|
|
|
|
|
|
|
|
Segment
sales
|
|
$1,294.3
|
|
$1,121.2
|
|
$5,445.9
|
|
$4,571.3
|
Less:
|
|
Freight & delivery
revenues 1
|
|
309.7
|
|
272.4
|
|
1,328.6
|
|
1,027.2
|
|
|
|
Other
revenues
|
|
18.7
|
|
26.1
|
|
98.9
|
|
88.6
|
Freight-adjusted
revenues
|
|
$965.9
|
|
$822.7
|
|
$4,018.4
|
|
$3,455.5
|
Unit shipments -
tons
|
|
51.7
|
|
53.0
|
|
235.1
|
|
229.5
|
Freight-adjusted sales
price
|
|
$18.67
|
|
$15.52
|
|
$17.10
|
|
$15.06
|
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. 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:
|
Cash Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per ton data)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Trailing Twelve Months
Ended
|
|
|
|
|
|
|
|
March 31
|
|
March 31
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Aggregates segment
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$302.8
|
|
$242.8
|
|
$1,468.5
|
|
$1,314.8
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
112.3
|
|
103.6
|
|
449.8
|
|
383.2
|
|
|
|
Aggregates segment cash
gross profit
|
|
$415.1
|
|
$346.4
|
|
$1,918.3
|
|
$1,698.0
|
|
|
Unit shipments -
tons
|
|
51.7
|
|
53.0
|
|
235.1
|
|
229.5
|
|
|
Aggregates segment
gross profit per ton
|
|
$5.85
|
|
$4.58
|
|
$6.25
|
|
$5.73
|
|
|
Aggregates segment cash
gross profit per ton
|
|
$8.02
|
|
$6.53
|
|
$8.16
|
|
$7.40
|
|
|
Asphalt segment
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$0.8
|
|
($2.9)
|
|
$61.0
|
|
$21.3
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
9.0
|
|
8.6
|
|
35.5
|
|
35.5
|
|
|
|
Asphalt segment cash
gross profit
|
|
$9.8
|
|
$5.7
|
|
$96.5
|
|
$56.8
|
|
|
Concrete segment
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
($2.4)
|
|
$28.2
|
|
$58.7
|
|
$74.8
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
20.4
|
|
21.1
|
|
82.4
|
|
58.6
|
|
|
|
Concrete segment cash
gross profit
|
|
$18.0
|
|
$49.3
|
|
$141.1
|
|
$133.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 2
|
Reconciliation of Non-GAAP Measures
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP does not define
"Earnings Before Interest, Taxes, Depreciation and Amortization"
(EBITDA), and it should not be considered as an alternative to
earnings measures defined by GAAP. We use this metric to assess the
operating performance of our business and as a basis for strategic
planning and forecasting as we believe that it closely correlates
to long-term shareholder value. We do not use this metric as a
measure to allocate resources. We adjust EBITDA for certain items
to provide a more consistent comparison of earnings performance
from period to period. Reconciliation of this metric to its nearest
GAAP measure is presented below (numbers may not foot due to
rounding):
|
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Trailing Twelve Months
Ended
|
|
|
|
|
|
|
|
March 31
|
|
March 31
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Net earnings
attributable to Vulcan
|
|
$120.7
|
|
$91.8
|
|
$604.4
|
|
$602.0
|
|
|
Income tax
expense
|
|
16.6
|
|
18.7
|
|
190.9
|
|
158.2
|
|
|
Interest expense,
net
|
|
49.0
|
|
35.9
|
|
181.4
|
|
150.5
|
|
|
Loss on discontinued
operations, net of tax
|
|
2.1
|
|
1.8
|
|
19.0
|
|
4.0
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
148.4
|
|
141.0
|
|
594.9
|
|
503.6
|
|
|
EBITDA
|
|
|
$336.7
|
|
$289.3
|
|
$1,590.6
|
|
$1,418.5
|
|
|
|
Gain on sale of real
estate and businesses, net
|
|
$0.0
|
|
$0.0
|
|
($6.1)
|
|
$0.0
|
|
|
|
Charges associated with
divested operations
|
|
0.0
|
|
0.3
|
|
2.8
|
|
1.5
|
|
|
|
Business development
1
|
|
0.6
|
|
2.5
|
|
8.6
|
|
36.5
|
|
|
|
COVID-19 direct
incremental costs
|
|
0.0
|
|
0.0
|
|
0.0
|
|
10.9
|
|
|
|
Pension settlement
charge
|
|
0.0
|
|
0.0
|
|
0.0
|
|
12.1
|
|
|
|
Loss on
impairments
|
|
0.0
|
|
0.0
|
|
67.8
|
|
4.6
|
|
|
|
Restructuring
charges
|
|
0.3
|
|
1.8
|
|
5.7
|
|
16.8
|
|
|
Adjusted
EBITDA
|
|
$337.6
|
|
$293.9
|
|
$1,669.4
|
|
$1,501.0
|
|
|
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
|
|
Trailing Twelve Months
Ended
|
|
|
|
|
|
|
|
March 31
|
|
March 31
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Net earnings
attributable to Vulcan
|
|
$0.90
|
|
$0.69
|
|
$4.52
|
|
$4.51
|
|
|
Less:
|
Discontinued
operations
|
|
(0.02)
|
|
(0.01)
|
|
(0.15)
|
|
(0.03)
|
|
|
Diluted EPS
attributable to Vulcan from continuing operations
|
$0.92
|
|
$0.70
|
|
$4.67
|
|
$4.54
|
|
|
Items included in
Adjusted EBITDA above, net of tax
|
|
0.01
|
|
0.03
|
|
0.54
|
|
0.49
|
|
|
NOL carryforward
valuation allowance
|
|
0.02
|
|
0.00
|
|
0.13
|
|
0.00
|
|
|
Acquisition financing
interest costs
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.05
|
|
|
Adjusted diluted EPS
attributable to Vulcan from
|
|
|
|
|
|
|
|
|
|
|
|
continuing
operations
|
|
$0.95
|
|
$0.73
|
|
$5.34
|
|
$5.08
|
|
|
The following
reconciliation to the mid-point of the range of 2023 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:
|
2023 Projected EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-point
|
|
|
Net earnings
attributable to Vulcan
|
|
|
|
|
|
|
|
$855
|
|
|
Income tax
expense
|
|
|
|
|
|
|
|
240
|
|
|
Interest expense, net
of interest income
|
|
|
|
|
|
|
|
195
|
|
|
Discontinued
operations, net of tax
|
|
|
|
|
|
|
|
0
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
|
|
610
|
|
|
Projected
EBITDA
|
|
|
|
|
|
|
|
$1,900
|
|
|
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 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
|
|
|
|
|
|
$0.5
|
|
$3.9
|
|
|
Short-term
debt
|
|
|
|
|
|
|
|
0.0
|
|
100.0
|
|
|
Long-term
debt
|
|
|
|
|
|
|
|
3,876.9
|
|
3,874.5
|
|
|
Total debt
|
|
|
|
|
|
|
|
$3,877.4
|
|
$3,978.4
|
|
|
Less: Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
140.0
|
|
133.0
|
|
|
Net debt
|
|
|
|
|
|
|
|
|
$3,737.4
|
|
$3,845.4
|
|
|
Trailing-Twelve Months
(TTM) Adjusted EBITDA
|
|
|
|
|
|
|
|
$1,669.4
|
|
$1,501.0
|
|
|
Total debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
|
|
2.3x
|
|
2.7x
|
|
|
Net debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
|
|
2.2x
|
|
2.6x
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
March 31
|
|
December 31
|
|
March 31
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
$1,669.4
|
|
$1,625.6
|
|
$1,501.0
|
|
|
Average invested
capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment, net
|
|
|
|
|
|
$5,910.0
|
|
$5,810.4
|
|
$5,109.6
|
|
|
|
Goodwill
|
|
|
|
|
|
3,707.1
|
|
3,708.5
|
|
3,485.0
|
|
|
|
Other intangible
assets
|
|
|
|
|
|
1,723.5
|
|
1,737.5
|
|
1,507.7
|
|
|
|
Fixed and intangible
assets
|
|
|
|
|
|
$11,340.6
|
|
$11,256.4
|
|
$10,102.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
$1,918.0
|
|
$1,898.8
|
|
$1,854.2
|
|
|
|
Less: Cash and cash
equivalents
|
|
|
|
|
|
141.0
|
|
161.3
|
|
474.0
|
|
|
|
Less: Current
tax
|
|
|
|
|
|
45.6
|
|
47.2
|
|
32.3
|
|
|
|
Adjusted current
assets
|
|
|
|
|
|
1,731.4
|
|
1,690.3
|
|
1,347.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
999.6
|
|
1,002.1
|
|
740.8
|
|
|
|
Less: Current
maturities of long-term debt
|
|
|
|
|
|
1.2
|
|
2.1
|
|
10.5
|
|
|
|
Less: Short-term
debt
|
|
|
|
|
|
137.6
|
|
137.6
|
|
20.0
|
|
|
|
Adjusted current
liabilities
|
|
|
|
|
|
860.8
|
|
862.4
|
|
710.3
|
|
|
|
Adjusted net working
capital
|
|
|
|
|
|
$870.6
|
|
$827.9
|
|
$637.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested
capital
|
|
|
|
|
|
$12,211.2
|
|
$12,084.3
|
|
$10,739.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on invested
capital
|
|
|
|
|
|
13.7 %
|
|
13.5 %
|
|
14.0 %
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/vulcan-reports-first-quarter-2023-results-301815418.html
SOURCE Vulcan Materials Company