Solid Execution Drives Margin Expansion
Despite Extreme Weather Disruptions
Uniquely Positioned Aggregates Business
Supports Earnings Growth
BIRMINGHAM, Ala., Oct. 30,
2024 /PRNewswire/ -- Vulcan Materials Company (NYSE:
VMC), the nation's largest producer of construction aggregates,
today announced results for the quarter ended September 30, 2024.
Financial Highlights Include:
|
Third
Quarter
|
|
Year-to-Date
|
|
Trailing-Twelve
Months
|
|
Amounts in millions,
except per unit data
|
2024
|
2023
|
|
2024
|
2023
|
|
2024
|
2023
|
|
Total
revenues
|
$ 2,004
|
$ 2,186
|
|
$ 5,564
|
$ 5,948
|
|
$
7,398
|
$
7,680
|
|
Gross profit
|
$
565
|
$
591
|
|
$ 1,462
|
$ 1,476
|
|
$
1,935
|
$
1,826
|
|
Selling, Administrative
and General (SAG)
|
$
129
|
$
144
|
|
$
393
|
$
400
|
|
$
535
|
$
527
|
|
As % of Total
revenues
|
6.4 %
|
6.6 %
|
|
7.1 %
|
6.7 %
|
|
7.2 %
|
6.9 %
|
|
Net earnings
attributable to Vulcan
|
$
208
|
$
276
|
|
$
618
|
$
706
|
|
$
846
|
$
825
|
|
Adjusted
EBITDA
|
$
581
|
$
602
|
|
$ 1,507
|
$ 1,535
|
|
$
1,983
|
$
1,910
|
|
Adjusted EBITDA
Margin
|
29.0 %
|
27.6 %
|
|
27.1 %
|
25.8 %
|
|
26.8 %
|
24.9 %
|
|
Earnings attributable
to Vulcan from
continuing operations per diluted
share
|
$ 1.57
|
$ 2.09
|
|
$ 4.68
|
$ 5.34
|
|
$
6.40
|
$
6.25
|
|
Adjusted earnings
attributable to Vulcan from
continuing operations per diluted
share
|
$ 2.22
|
$ 2.29
|
|
$ 5.37
|
$ 5.54
|
|
$
6.83
|
$
6.62
|
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
Shipments
(tons)
|
57.7
|
64.0
|
|
166.0
|
179.2
|
|
221.4
|
233.5
|
|
Freight-adjusted sales
price per ton
|
$ 21.27
|
$ 19.31
|
|
$ 20.98
|
$ 18.92
|
|
$
20.57
|
$
18.47
|
|
Gross profit per
ton
|
$ 8.63
|
$ 7.95
|
|
$ 8.01
|
$ 7.32
|
|
$
7.93
|
$
7.03
|
|
Cash gross profit per
ton
|
$ 10.89
|
$ 9.92
|
|
$ 10.31
|
$ 9.32
|
|
$
10.22
|
$
9.06
|
Tom Hill, Vulcan Materials'
Chairman and Chief Executive Officer, said, "Results and activities
in the third quarter evidence the consistent execution of our
two-pronged strategy to generate durable growth. We continue
to enhance our core through expansion of our industry-leading
aggregates cash gross profit per ton, which increased 10 percent in
the third quarter and has grown by double-digits for eight
consecutive quarters. We also recently announced the
acquisition of Wake Stone Corporation, a leading pure-play
aggregates producer, that will expand our reach in high-growth
geographies in the Carolinas. Our Vulcan Way of Selling and
Vulcan Way of Operating disciplines remain fundamental to
compounding profitability across our franchise and successfully
integrating new operations."
Third Quarter Segment Results
Aggregates
Third quarter segment gross profit was
$498 million ($8.63 per ton), and gross profit margin expanded
40 basis points. Cash gross profit per ton improved 10
percent to $10.89 per ton, despite
lower shipments and harsh weather conditions throughout the
quarter. Improvements in unit profitability were widespread
across the Company's footprint.
Aggregates shipments decreased 10 percent as compared to the
prior year's third quarter. Shipments across the Southeast
were impacted by significant rainfall in July, followed by numerous
hurricanes and severe storms in August and September. The
prior year's third quarter included fewer severe weather
events.
The pricing environment remained positive across the
footprint. Freight-adjusted selling prices increased 10
percent as compared to the prior year. Freight-adjusted unit
cash cost of sales was negatively impacted by lower volume and
challenging weather-affected operating conditions; freight-adjusted
cash cost of sales dollars remained flat compared to the prior
year.
Asphalt and Concrete
Asphalt segment gross profit was
$60 million, and cash gross profit
was $72 million, a 12 percent
improvement over the prior year. Shipments increased slightly
as compared to the prior year, and price improved 6 percent.
Concrete segment gross profit was $7
million, and cash gross profit was $17 million. The prior year's third quarter
included results from the previously divested concrete assets in
Texas, which accounted for the
majority of the year-over-year decline in cash gross profit.
Selling, Administrative and General (SAG) and Other
Items
SAG expense was $129
million compared to $144
million in the prior year's third quarter. As a
percent of total revenues, SAG expense was 6.4 percent and 20 basis
points lower than the prior year's third quarter.
This year's third quarter included a pretax charge of
$87 million ($84 million after-tax) resulting from the
write-off of goodwill for the Company's concrete assets in
Northern California.
Financial Position, Liquidity and Capital
Allocation
The Company remains well positioned for continued
growth with a strong liquidity position and balance sheet
profile. As of September 30,
2024, the ratio of total debt to trailing-twelve months
Adjusted EBITDA was 1.7 times and below the Company's target range
of 2.0 to 2.5 times. On a trailing-twelve months basis,
return on invested capital improved 70 basis points over the prior
year to 16.1 percent.
Capital expenditures were $104
million in the third quarter and $402
million on a year-to-date basis. For the full year,
the Company expects to spend between $625 and $650
million for maintenance and growth projects. During
the quarter, the Company returned $61
million to shareholders through dividends, a 6 percent
increase versus the prior year's third quarter.
The acquisition of Wake Stone Corporation is consistent with our
disciplined capital allocation priorities and aggregates-led
strategy of continuing to expand our reach to better serve more
high-growth regions in the United States. The acquisition is
expected to provide more than 60 years of quality hard rock
reserves. The Company expects to close the transaction during
the fourth quarter of this year, subject to satisfaction of
customary closing conditions.
Outlook
Regarding the Company's current year outlook,
Mr. Hill said, "While significant weather disruptions have impacted
construction activity through the first nine months of the year,
overall demand fundamentals continue to underpin long-term
growth. The pricing environment remains positive, and we
continue to execute well. Given the decline in shipments to
date and continued weather events so far in the fourth quarter, we
now expect full-year Adjusted EBITDA of approximately $2 billion.
Mr. Hill continued, "As we look to 2025, we expect aggregates
price to improve high-single digits, cost to benefit from our
Vulcan Way of Operating disciplines and moderating inflation and,
most importantly, cash gross profit per ton to continue expanding
at double-digit levels. A demand backdrop underpinned by
growth in public construction activity and an improving private
demand environment should lead to volume growth in 2025. Our
steadfast focus to execute at the highest level – both commercially
and operationally – positions us well to capitalize on improving
volume and grow earnings."
Conference Call
Vulcan will host a conference call at
10:00 a.m. CT on October 30, 2024. A webcast will be
available via the Company's website at
www.vulcanmaterials.com. Investors and other interested
parties may access the teleconference live by calling 800-274-8461,
or 203-518-9814 if outside the U.S. The conference ID is
4730253. The conference call will be recorded and available
for replay at the Company's website approximately two hours after
the call.
About Vulcan Materials Company
Vulcan Materials
Company, a member of the S&P 500 Index with headquarters in
Birmingham, Alabama, is the
nation's largest supplier of construction aggregates – primarily
crushed stone, sand and gravel – and a major producer of
aggregates-based construction materials, including asphalt and
ready-mixed concrete. For additional information about
Vulcan, go to www.vulcanmaterials.com.
Non-GAAP Financial Measures
Because GAAP financial
measures on a forward-looking basis are not accessible, and
reconciling information is not available without unreasonable
effort, we have not provided reconciliations for
forward-looking non-GAAP measures, other than the reconciliation of
Projected Adjusted EBITDA as included in Appendix 2 hereto. For the
same reasons, we are unable to address the probable significance of
the unavailable information, which could be material to future
results.
FORWARD-LOOKING STATEMENT DISCLAIMER
This document
contains forward-looking statements. Statements that are not
historical fact, including statements about Vulcan's beliefs and
expectations, are forward-looking statements. Generally,
these statements relate to future financial performance, results of
operations, business plans or strategies, projected or anticipated
revenues, expenses, earnings (including EBITDA and other measures),
dividend policy, shipment volumes, pricing, levels of capital
expenditures, intended cost reductions and cost savings,
anticipated profit improvements and/or planned divestitures and
asset sales. These forward-looking statements are sometimes
identified by the use of terms and phrases such as "believe,"
"should," "would," "expect," "project," "estimate," "anticipate,"
"intend," "plan," "will," "can," "may" or similar expressions
elsewhere in this document. These statements are subject to
numerous risks, uncertainties, and assumptions, including but not
limited to general business conditions, competitive factors,
pricing, energy costs, and other risks and uncertainties discussed
in the reports Vulcan periodically files with the SEC.
Forward-looking statements are not guarantees of future
performance and actual results, developments, and business
decisions may vary significantly from those expressed in or implied
by the forward-looking statements. The following risks
related to Vulcan's business, among others, could cause actual
results to differ materially from those described in the
forward-looking statements: general economic and business
conditions; domestic and global political, economic or diplomatic
developments; a pandemic, epidemic or other public health
emergency; Vulcan's dependence on the construction industry, which
is subject to economic cycles; the timing and amount of federal,
state and local funding for infrastructure; changes in the level of
spending for private residential and private nonresidential
construction; changes in Vulcan's effective tax rate; the
increasing reliance on information technology infrastructure,
including the risks that the infrastructure does not work as
intended, experiences technical difficulties or is subjected to
cyber-attacks; the impact of the state of the global economy on
Vulcan's businesses and financial condition and access to capital
markets; international business operations and relationships,
including recent actions taken by the Mexican government with
respect to Vulcan's property and operations in that country; the
highly competitive nature of the construction industry; the impact
of future regulatory or legislative actions, including those
relating to climate change, biodiversity, land use, wetlands,
greenhouse gas emissions, the definition of minerals, tax policy
and domestic and international trade; the outcome of pending legal
proceedings; pricing of Vulcan's products; weather and other
natural phenomena, including the impact of climate change and
availability of water; availability and cost of trucks, railcars,
barges and ships as well as their licensed operators for transport
of Vulcan's materials; energy costs; costs of hydrocarbon-based raw
materials; healthcare costs; labor relations, shortages and
constraints; the amount of long-term debt and interest expense
incurred by Vulcan; changes in interest rates; volatility in
pension plan asset values and liabilities, which may require cash
contributions to the pension plans; the impact of environmental
cleanup costs and other liabilities relating to existing and/or
divested businesses; Vulcan's ability to secure and permit
aggregates reserves in strategically located areas; Vulcan's
ability to manage and successfully integrate acquisitions; Vulcan's
proposed acquisition of Wake Stone Corporation ("Wake Stone"),
including: (1) Vulcan's ability to complete the transaction on the
proposed terms or on the anticipated timeline, or at all, including
risks and uncertainties related to securing the necessary approvals
and the satisfaction of other closing conditions to consummate the
proposed transaction; (2) the occurrence of any event, change or
other circumstance that could give rise to the termination of the
definitive merger agreement relating to the proposed transaction;
(3) failure to realize the expected benefits of the proposed
transaction; (4) significant transaction costs and/or unknown or
inestimable liabilities; (5) the risk that Wake Stone's business
will not be integrated successfully or that such integration may be
more difficult, time-consuming or costly than expected; (6) risks
related to future opportunities and plans for the combined company;
(7) disruption from the proposed transaction, making it more
difficult to conduct business as usual or maintain relationships
with customers, employees or suppliers; and (8) the possibility
that, if Vulcan does not achieve the perceived benefits of the
proposed transaction as rapidly or to the extent anticipated by
financial analysts or investors, the market price of Vulcan's
common stock could decline; the effect of changes in tax laws,
guidance and interpretations; significant downturn in the
construction industry may result in the impairment of goodwill or
long-lived assets; changes in technologies, which could disrupt the
way Vulcan does business and how Vulcan's products are distributed;
the risks of open pit and underground mining; expectations relating
to environmental, social and governance considerations; claims that
our products do not meet regulatory requirements or contractual
specifications; and other assumptions, risks and uncertainties
detailed from time to time in the reports filed by Vulcan with the
SEC. All forward-looking statements in this communication are
qualified in their entirety by this cautionary statement.
Vulcan disclaims and does not undertake any obligation to
update or revise any forward-looking statement in this document
except as required by law.
Investor Contact: Mark Warren (205) 298-3220
Media Contact: Jack Bonnikson (205) 298-3220
|
|
|
|
|
|
|
|
|
|
|
Table A
|
|
Vulcan Materials
Company
|
|
|
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Consolidated
Statements of Earnings
|
|
September
30
|
|
September
30
|
|
(Condensed and
unaudited)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$2,003.9
|
|
$2,185.8
|
|
$5,564.0
|
|
$5,947.6
|
|
Cost of
revenues
|
|
(1,438.7)
|
|
(1,594.8)
|
|
(4,101.6)
|
|
(4,471.3)
|
|
Gross profit
|
|
565.2
|
|
591.0
|
|
1,462.4
|
|
1,476.3
|
|
Selling, administrative
and general expenses
|
|
(129.1)
|
|
(143.9)
|
|
(393.0)
|
|
(400.4)
|
|
Gain on sale of
property, plant & equipment
|
|
|
|
|
|
|
|
|
|
and
businesses
|
|
0.2
|
|
4.3
|
|
4.6
|
|
22.8
|
|
Loss on
impairments
|
|
(86.6)
|
|
(28.3)
|
|
(86.6)
|
|
(28.3)
|
|
Other operating
expense, net
|
|
(12.6)
|
|
(4.2)
|
|
(23.9)
|
|
(13.1)
|
|
Operating
earnings
|
|
337.1
|
|
418.9
|
|
963.5
|
|
1,057.3
|
|
Other nonoperating
expense, net
|
|
(3.8)
|
|
(6.4)
|
|
(12.7)
|
|
(5.3)
|
|
Interest expense,
net
|
|
(38.4)
|
|
(46.6)
|
|
(117.7)
|
|
(142.2)
|
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
|
before income
taxes
|
|
294.9
|
|
365.9
|
|
833.1
|
|
909.8
|
|
Income tax
expense
|
|
(85.2)
|
|
(85.8)
|
|
(208.5)
|
|
(194.4)
|
|
Earnings from
continuing operations
|
|
209.7
|
|
280.1
|
|
624.6
|
|
715.4
|
|
Loss on discontinued
operations, net of tax
|
|
(1.3)
|
|
(2.8)
|
|
(5.0)
|
|
(8.6)
|
|
Net earnings
|
|
|
|
208.4
|
|
277.3
|
|
619.6
|
|
706.8
|
|
Earnings attributable
to noncontrolling interest
|
|
(0.8)
|
|
(0.8)
|
|
(1.4)
|
|
(1.0)
|
|
Net earnings
attributable to Vulcan
|
|
$207.6
|
|
$276.5
|
|
$618.2
|
|
$705.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.58
|
|
$2.10
|
|
$4.71
|
|
$5.37
|
|
Discontinued
operations
|
|
($0.01)
|
|
($0.02)
|
|
($0.04)
|
|
($0.07)
|
|
Net earnings
|
|
$1.57
|
|
$2.08
|
|
$4.67
|
|
$5.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.57
|
|
$2.09
|
|
$4.68
|
|
$5.34
|
|
Discontinued
operations
|
|
($0.01)
|
|
($0.02)
|
|
($0.03)
|
|
($0.06)
|
|
Net earnings
|
|
$1.56
|
|
$2.07
|
|
$4.65
|
|
$5.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
132.2
|
|
133.0
|
|
132.3
|
|
133.1
|
|
Assuming
dilution
|
|
133.0
|
|
133.7
|
|
133.1
|
|
133.7
|
|
Effective tax rate from
continuing operations
|
|
28.9 %
|
|
23.4 %
|
|
25.0 %
|
|
21.4 %
|
|
|
|
|
|
|
|
|
Table B
|
|
Vulcan Materials
Company
|
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
Consolidated Balance
Sheets
|
|
September
30
|
|
December
31
|
|
September
30
|
|
(Condensed and
unaudited)
|
|
2024
|
|
2023
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$433.2
|
|
$931.1
|
|
$340.0
|
|
Restricted
cash
|
|
1.1
|
|
18.1
|
|
5.0
|
|
Accounts and notes
receivable
|
|
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
1,030.9
|
|
903.3
|
|
1,199.2
|
|
Allowance for credit
losses
|
|
(13.5)
|
|
(13.6)
|
|
(14.7)
|
|
Accounts and notes
receivable, net
|
|
1,017.4
|
|
889.7
|
|
1,184.5
|
|
Inventories
|
|
|
|
|
|
|
|
Finished
products
|
|
505.9
|
|
494.4
|
|
448.1
|
|
Raw
materials
|
|
62.2
|
|
51.2
|
|
50.5
|
|
Products in
process
|
|
11.1
|
|
6.5
|
|
8.6
|
|
Operating supplies and
other
|
|
68.5
|
|
63.5
|
|
63.4
|
|
Inventories
|
|
647.7
|
|
615.6
|
|
570.6
|
|
Other current
assets
|
|
113.5
|
|
70.4
|
|
106.0
|
|
Assets held for
sale
|
|
0.0
|
|
0.0
|
|
495.1
|
|
Total current
assets
|
|
2,212.9
|
|
2,524.9
|
|
2,701.2
|
|
Investments and
long-term receivables
|
|
31.4
|
|
31.3
|
|
31.2
|
|
Property, plant &
equipment
|
|
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
12,350.5
|
|
11,835.5
|
|
11,610.4
|
|
Allowances for
depreciation, depletion & amortization
|
|
(5,937.0)
|
|
(5,617.8)
|
|
(5,498.4)
|
|
Property, plant &
equipment, net
|
|
6,413.5
|
|
6,217.7
|
|
6,112.0
|
|
Operating lease
right-of-use assets, net
|
|
508.3
|
|
511.7
|
|
521.5
|
|
Goodwill
|
|
3,450.0
|
|
3,531.7
|
|
3,531.7
|
|
Other intangible
assets, net
|
|
1,448.3
|
|
1,460.7
|
|
1,471.8
|
|
Other noncurrent
assets
|
|
287.5
|
|
267.7
|
|
251.1
|
|
Total assets
|
|
$14,351.9
|
|
$14,545.7
|
|
$14,620.5
|
|
Liabilities
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
0.5
|
|
0.5
|
|
0.5
|
|
Trade payables and
accruals
|
|
352.6
|
|
390.4
|
|
412.8
|
|
Other current
liabilities
|
|
421.0
|
|
406.7
|
|
440.8
|
|
Liabilities of assets
held for sale
|
|
0.0
|
|
0.0
|
|
10.1
|
|
Total current
liabilities
|
|
774.1
|
|
797.6
|
|
864.2
|
|
Long-term
debt
|
|
3,329.2
|
|
3,877.3
|
|
3,874.3
|
|
Deferred income taxes,
net
|
|
1,000.3
|
|
1,028.9
|
|
1,068.3
|
|
Deferred
revenue
|
|
139.4
|
|
145.3
|
|
147.4
|
|
Noncurrent operating
lease liabilities
|
|
503.5
|
|
507.4
|
|
516.0
|
|
Other noncurrent
liabilities
|
|
712.3
|
|
681.3
|
|
685.1
|
|
Total
liabilities
|
|
$6,458.8
|
|
$7,037.8
|
|
$7,155.3
|
|
Equity
|
|
|
|
|
|
|
|
Common stock, $1 par
value
|
|
132.1
|
|
132.1
|
|
132.9
|
|
Capital in excess of
par value
|
|
2,895.0
|
|
2,880.1
|
|
2,862.4
|
|
Retained
earnings
|
|
4,980.7
|
|
4,615.0
|
|
4,595.0
|
|
Accumulated other
comprehensive loss
|
|
(138.8)
|
|
(143.8)
|
|
(149.7)
|
|
Total shareholder's
equity
|
|
7,869.0
|
|
7,483.4
|
|
7,440.6
|
|
Noncontrolling
interest
|
|
24.1
|
|
24.5
|
|
24.6
|
|
Total equity
|
|
$7,893.1
|
|
$7,507.9
|
|
$7,465.2
|
|
Total liabilities and
equity
|
|
$14,351.9
|
|
$14,545.7
|
|
$14,620.5
|
|
|
|
|
|
|
|
Table C
|
|
Vulcan Materials
Company
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
September
30
|
|
(Condensed and
unaudited)
|
|
2024
|
|
2023
|
|
Operating
Activities
|
|
|
|
|
|
Net earnings
|
|
|
|
|
$619.6
|
|
$706.8
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
468.4
|
|
464.4
|
|
Noncash operating lease
expense
|
|
38.6
|
|
40.7
|
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(4.6)
|
|
(22.8)
|
|
Loss on
impairments
|
|
86.6
|
|
28.3
|
|
Contributions to
pension plans
|
|
(7.1)
|
|
(5.6)
|
|
Share-based
compensation expense
|
|
39.9
|
|
43.5
|
|
Deferred income taxes,
net
|
|
(30.3)
|
|
(6.0)
|
|
Changes in assets and
liabilities before initial
|
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(246.5)
|
|
(206.0)
|
|
Other, net
|
|
|
|
|
4.9
|
|
11.9
|
|
Net cash provided by
operating activities
|
|
$969.5
|
|
$1,055.2
|
|
Investing
Activities
|
|
|
|
|
|
Purchases of property,
plant & equipment
|
|
(441.0)
|
|
(666.3)
|
|
Proceeds from sale of
property, plant & equipment
|
|
5.6
|
|
26.2
|
|
Proceeds from sale of
businesses
|
|
0.2
|
|
130.0
|
|
Payment for businesses
acquired, net of acquired cash and adjustments
|
|
(206.4)
|
|
0.9
|
|
Other, net
|
|
|
|
|
(0.2)
|
|
0.0
|
|
Net cash used for
investing activities
|
|
($641.8)
|
|
($509.2)
|
|
Financing
Activities
|
|
|
|
|
|
Proceeds from
short-term debt
|
|
8.1
|
|
166.1
|
|
Payment of short-term
debt
|
|
(8.0)
|
|
(266.1)
|
|
Payment of current
maturities and long-term debt
|
|
(550.5)
|
|
(550.5)
|
|
Proceeds from issuance
of long-term debt
|
|
0.0
|
|
550.0
|
|
Debt issuance and
exchange costs
|
|
(3.5)
|
|
(3.4)
|
|
Payment of finance
leases
|
|
(10.0)
|
|
(17.2)
|
|
Purchases of common
stock
|
|
(68.8)
|
|
(49.9)
|
|
Dividends
paid
|
|
|
|
(183.6)
|
|
(171.6)
|
|
Share-based
compensation, shares withheld for taxes
|
|
(24.5)
|
|
(19.9)
|
|
Distribution to
noncontrolling interest
|
|
(1.8)
|
|
0.0
|
|
Net cash used for
financing activities
|
|
($842.6)
|
|
($362.5)
|
|
Net increase (decrease)
in cash and cash equivalents and restricted cash
|
|
(514.9)
|
|
183.5
|
|
Cash and cash
equivalents and restricted cash at beginning of year
|
|
949.2
|
|
161.5
|
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$434.3
|
|
$345.0
|
|
|
|
|
|
|
|
|
|
|
|
Table D
|
|
Segment Financial
Data and Unit Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per unit data)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30
|
|
September
30
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
$1,572.4
|
|
$1,628.4
|
|
$4,477.3
|
|
$4,505.9
|
|
Asphalt
2
|
|
|
381.1
|
|
347.2
|
|
918.5
|
|
854.3
|
|
Concrete
|
|
174.4
|
|
364.6
|
|
489.9
|
|
993.3
|
|
Segment
sales
|
|
$2,127.9
|
|
$2,340.2
|
|
$5,885.7
|
|
$6,353.5
|
|
Aggregates intersegment
sales
|
|
(124.0)
|
|
(154.4)
|
|
(321.7)
|
|
(405.9)
|
|
Total
revenues
|
|
$2,003.9
|
|
$2,185.8
|
|
$5,564.0
|
|
$5,947.6
|
|
Gross
Profit
|
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$498.5
|
|
$509.1
|
|
$1,330.3
|
|
$1,312.3
|
|
Asphalt
|
|
|
60.2
|
|
55.9
|
|
123.9
|
|
113.3
|
|
Concrete
|
|
6.5
|
|
26.0
|
|
8.2
|
|
50.7
|
|
Total
|
|
|
|
$565.2
|
|
$591.0
|
|
$1,462.4
|
|
$1,476.3
|
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
|
|
Aggregates
|
|
$130.3
|
|
$125.6
|
|
$381.8
|
|
$357.6
|
|
Asphalt
|
|
|
12.0
|
|
8.8
|
|
31.9
|
|
26.7
|
|
Concrete
|
|
10.9
|
|
20.5
|
|
34.9
|
|
60.4
|
|
Other
|
|
|
|
7.5
|
|
6.2
|
|
19.8
|
|
19.7
|
|
Total
|
|
|
|
$160.7
|
|
$161.1
|
|
$468.4
|
|
$464.4
|
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
$1,228.0
|
|
$1,235.7
|
|
$3,482.0
|
|
$3,390.7
|
|
Aggregates -
tons
|
|
57.7
|
|
64.0
|
|
166.0
|
|
179.2
|
|
Freight-adjusted sales
price 4
|
|
$21.27
|
|
$19.31
|
|
$20.98
|
|
$18.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
|
Asphalt Mix -
tons
|
|
4.1
|
|
4.0
|
|
10.2
|
|
10.1
|
|
Asphalt Mix - sales
price 5
|
|
$80.88
|
|
$76.22
|
|
$79.42
|
|
$75.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete -
cubic yards
|
|
0.9
|
|
2.1
|
|
2.7
|
|
6.0
|
|
Ready-mixed concrete -
sales price 5
|
|
$185.61
|
|
$169.98
|
|
$182.88
|
|
$165.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Includes
product sales (crushed stone, sand and gravel, sand, and other
aggregates), as well as freight & delivery
|
|
|
|
costs that we pass along to our
customers, and service revenues related to aggregates.
|
|
|
|
|
|
2 Includes
product sales, as well as service revenues from our asphalt
construction paving business.
|
|
|
|
|
|
3
Freight-adjusted revenues are Aggregates segment sales excluding
freight & delivery revenues and
|
|
|
|
|
|
other revenues related to
services, such as landfill tipping fees, that are derived from our
aggregates business.
|
|
|
|
4
Freight-adjusted sales price is calculated as freight-adjusted
revenues divided by aggregates unit shipments.
|
|
|
|
5 Sales
price is calculated by dividing revenues generated from the
shipment of product (excluding service revenues
|
|
|
|
generated by the segments) by
total units of the product shipped.
|
|
|
|
|
|
|
|
Appendix 1
|
|
'Reconciliation of
Non-GAAP Measures
|
|
|
'Aggregates segment
freight-adjusted revenues is not a Generally Accepted Accounting
Principle (GAAP) measure and should not be considered as an
alternative to metrics defined by GAAP. We present this metric as
it is consistent with the basis by which we review our operating
results. We believe that this presentation is consistent with our
competitors and meaningful to our investors as it excludes revenues
associated with freight & delivery, which are pass-through
activities. It also excludes other revenues related to services,
such as landfill tipping fees, that are derived from our aggregates
business. Additionally, we use this metric as the basis for
calculating the average sales price of our aggregates products.
Reconciliation of this metric to its nearest GAAP measure is
presented below:
|
|
|
|
Aggregates Segment
Freight-Adjusted Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per ton data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
Trailing
Twelve Months Ended
|
|
|
|
|
|
|
|
September
30
|
|
|
|
September
30
|
|
September
30
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
sales
|
|
$1,572.4
|
|
$1,628.4
|
|
$4,477.3
|
|
$4,505.9
|
|
$5,890.3
|
|
$5,767.6
|
|
Freight & delivery
revenues 1
|
|
(320.5)
|
|
(366.3)
|
|
(922.4)
|
|
(1,040.8)
|
|
(1,231.8)
|
|
(1,359.0)
|
|
Other
revenues
|
|
(23.9)
|
|
(26.4)
|
|
(72.9)
|
|
(74.4)
|
|
(105.9)
|
|
(96.7)
|
|
Freight-adjusted
revenues
|
|
$1,228.0
|
|
$1,235.7
|
|
$3,482.0
|
|
$3,390.7
|
|
$4,552.6
|
|
$4,311.9
|
|
Unit shipments -
tons
|
|
57.7
|
|
64.0
|
|
166.0
|
|
179.2
|
|
221.4
|
|
233.5
|
|
Freight-adjusted sales
price
|
|
$21.27
|
|
$19.31
|
|
$20.98
|
|
$18.92
|
|
$20.57
|
|
$18.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 At the
segment level, freight & delivery revenues include intersegment
freight & delivery (which are eliminated at the consolidated
level) and freight to remote distribution sites.
|
|
|
'GAAP does not define
"cash gross profit," and it should not be considered as an
alternative to earnings measures defined by GAAP. We and the
investment community use this metric to assess the operating
performance of our business. Additionally, we present this metric
as we believe that it closely correlates to long-term shareholder
value. Cash gross profit adds back noncash charges for
depreciation, depletion, accretion and amortization to gross
profit. Segment cash gross profit per unit is computed by dividing
segment cash gross profit by units shipped. Segment cash cost of
sales per unit is computed by subtracting segment cash gross profit
per unit from segment freight-adjusted sales price. Reconciliation
of these metrics to their nearest GAAP measures are presented
below:
|
|
|
Cash Gross
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per ton data)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Trailing Twelve
Months Ended
|
|
|
|
|
|
September
30
|
|
September
30
|
|
September
30
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$498.5
|
|
$509.1
|
|
$1,330.3
|
|
$1,312.3
|
|
$1,754.8
|
|
$1,640.5
|
|
Depreciation,
depletion, accretion and amortization
|
|
130.3
|
|
125.6
|
|
381.8
|
|
357.6
|
|
506.6
|
|
474.4
|
|
Cash gross
profit
|
|
$628.8
|
|
$634.7
|
|
$1,712.1
|
|
$1,669.9
|
|
$2,261.4
|
|
$2,114.9
|
|
Unit shipments -
tons
|
|
57.7
|
|
64.0
|
|
166.0
|
|
179.2
|
|
221.4
|
|
233.5
|
|
Gross profit per
ton
|
|
$8.63
|
|
$7.95
|
|
$8.01
|
|
$7.32
|
|
$7.93
|
|
$7.03
|
|
Freight-adjusted sales
price
|
|
$21.27
|
|
$19.31
|
|
$20.98
|
|
$18.92
|
|
$20.57
|
|
$18.47
|
|
Cash gross profit per
ton
|
|
10.89
|
|
9.92
|
|
10.31
|
|
9.32
|
|
10.22
|
|
9.06
|
|
Freight-adjusted cash
cost of sales per ton
|
|
$10.38
|
|
$9.39
|
|
$10.67
|
|
$9.60
|
|
$10.35
|
|
$9.41
|
|
Asphalt
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$60.2
|
|
$55.9
|
|
$123.9
|
|
$113.3
|
|
$160.2
|
|
$130.4
|
|
Depreciation,
depletion, accretion and amortization
|
|
12.0
|
|
8.8
|
|
31.9
|
|
26.7
|
|
40.8
|
|
35.8
|
|
Cash gross
profit
|
|
$72.2
|
|
$64.7
|
|
$155.8
|
|
$140.0
|
|
$201.0
|
|
$166.2
|
|
Concrete
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$6.5
|
|
$26.0
|
|
$8.2
|
|
$50.7
|
|
$19.7
|
|
$55.3
|
|
Depreciation,
depletion, accretion and amortization
|
|
10.9
|
|
20.5
|
|
34.9
|
|
60.4
|
|
47.2
|
|
80.0
|
|
Cash gross
profit
|
|
$17.4
|
|
$46.5
|
|
$43.1
|
|
$111.1
|
|
$66.9
|
|
$135.3
|
|
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
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net earnings
attributable to Vulcan
|
|
$207.6
|
|
$276.5
|
|
$618.2
|
|
$705.8
|
|
$845.6
|
|
$825.1
|
|
Income tax expense,
including discontinued operations
|
|
84.7
|
|
84.8
|
|
206.7
|
|
191.3
|
|
311.0
|
|
218.8
|
|
Interest expense,
net
|
|
38.4
|
|
46.6
|
|
117.7
|
|
142.2
|
|
155.1
|
|
189.8
|
|
Depreciation,
depletion, accretion and amortization
|
|
160.7
|
|
161.1
|
|
468.4
|
|
464.4
|
|
620.9
|
|
616.9
|
|
EBITDA
|
|
|
$491.3
|
|
$569.0
|
|
$1,411.0
|
|
$1,503.8
|
|
$1,932.6
|
|
$1,850.7
|
|
Loss on discontinued
operations
|
|
$1.8
|
|
$3.8
|
|
$6.8
|
|
$11.7
|
|
$9.8
|
|
$15.1
|
|
Gain (loss) on sale of
real estate and businesses, net
|
|
0.0
|
|
0.0
|
|
0.0
|
|
(15.2)
|
|
(51.9)
|
|
2.2
|
|
Charges associated with
divested operations
|
|
0.0
|
|
0.0
|
|
1.0
|
|
4.7
|
|
4.2
|
|
7.4
|
|
Acquisition related
charges 1
|
|
0.8
|
|
1.2
|
|
1.8
|
|
2.0
|
|
1.9
|
|
6.1
|
|
Loss on
impairments
|
|
86.6
|
|
28.3
|
|
86.6
|
|
28.3
|
|
86.6
|
|
28.3
|
|
Adjusted
EBITDA
|
|
$580.6
|
|
$602.2
|
|
$1,507.1
|
|
$1,535.1
|
|
$1,983.3
|
|
$1,909.8
|
|
1 Represents
charges associated with acquisitions requiring clearance under
federal antitrust laws.
|
|
|
'Similar to our
presentation of Adjusted EBITDA, we present Adjusted Diluted
Earnings Per Share (EPS) attributable to Vulcan from continuing
operations to provide a more consistent comparison of earnings
performance from period to period. This metric is not defined by
GAAP and should not be considered as an alternative to earnings
measures defined by GAAP. Reconciliation of this metric to its
nearest GAAP measure is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
attributable to Vulcan from Continuing Operations (Adjusted Diluted
EPS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Trailing Twelve
Months Ended
|
|
|
|
|
|
September
30
|
|
September
30
|
|
September
30
|
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net earnings
attributable to Vulcan
|
|
$1.56
|
|
$2.07
|
|
$4.65
|
|
$5.28
|
|
$6.35
|
|
$6.17
|
|
Items included in
Adjusted EBITDA above, net of tax
|
|
0.65
|
|
0.18
|
|
0.69
|
|
0.17
|
|
0.43
|
|
0.33
|
|
NOL carryforward
valuation allowance
|
|
0.01
|
|
0.04
|
|
0.03
|
|
0.09
|
|
0.05
|
|
0.12
|
|
Adjusted diluted EPS
attributable to Vulcan from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continuing
operations
|
|
$2.22
|
|
$2.29
|
|
$5.37
|
|
$5.54
|
|
$6.83
|
|
$6.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Projected Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-point
|
|
Net earnings
attributable to Vulcan
|
|
|
|
|
|
|
|
|
|
|
|
$845
|
|
Income tax expense,
including discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
274
|
|
Interest expense, net
of interest income
|
|
|
|
|
|
|
|
|
|
|
|
155
|
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
|
|
|
|
|
|
630
|
|
Projected
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
$1,904
|
|
Items included in
Adjusted EBITDA above
|
|
|
|
|
|
|
|
|
|
|
|
96
|
|
Projected Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
$2,000
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
Debt
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
$0.5
|
|
$0.5
|
|
Long-term
debt
|
|
3,329.2
|
|
3,874.3
|
|
Total debt
|
|
$3,329.7
|
|
$3,874.8
|
|
Cash and cash
equivalents and restricted cash
|
|
(434.3)
|
|
(345.0)
|
|
Net debt
|
|
|
$2,895.4
|
|
$3,529.8
|
|
Trailing-Twelve Months
(TTM) Adjusted EBITDA
|
|
$1,983.3
|
|
$1,909.8
|
|
Total debt to TTM
Adjusted EBITDA
|
|
1.7x
|
|
2.0x
|
|
Net debt to TTM
Adjusted EBITDA
|
|
1.5x
|
|
1.8x
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
$1,983.3
|
|
$1,909.8
|
|
Average invested
capital
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment, net
|
|
|
|
|
|
|
|
$6,273.7
|
|
$6,059.8
|
|
Goodwill
|
|
|
|
|
|
|
|
3,516.4
|
|
3,661.0
|
|
Other intangible
assets
|
|
|
|
|
|
|
|
1,457.9
|
|
1,642.9
|
|
Fixed and intangible
assets
|
|
|
|
|
|
|
|
$11,248.0
|
|
$11,363.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
$2,264.6
|
|
$2,154.6
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
(428.0)
|
|
(192.3)
|
|
Current tax
|
|
|
|
|
|
|
|
(36.4)
|
|
(41.7)
|
|
Adjusted current
assets
|
|
|
|
|
|
|
|
1,800.2
|
|
1,920.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
(785.8)
|
|
(946.7)
|
|
Current maturities of
long-term debt
|
|
|
|
|
|
|
|
0.5
|
|
0.5
|
|
Short-term
debt
|
|
|
|
|
|
|
|
19.0
|
|
82.4
|
|
Adjusted current
liabilities
|
|
|
|
|
|
|
|
(766.3)
|
|
(863.8)
|
|
Adjusted net working
capital
|
|
|
|
|
|
|
|
$1,033.9
|
|
$1,056.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested
capital
|
|
|
|
|
|
|
|
$12,281.9
|
|
$12,420.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on invested
capital
|
|
|
|
|
|
|
|
16.1 %
|
|
15.4 %
|
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SOURCE Vulcan Materials Company