Company positioned for significant participation in U.S. economic
recovery BIRMINGHAM, Ala., Aug. 3, 2009 /PRNewswire-FirstCall/ --
Vulcan Materials Company (NYSE:VMC), the nation's largest producer
of construction aggregates, announced results today for the second
quarter ended June 30, 2009. Second Quarter Summary and Comparisons
with the Prior Year -- Net earnings were $22 million, or $0.20 per
diluted share, including $0.14 per diluted share from continuing
operations. -- A change in the estimated annual effective tax rate
reduced earnings $0.06 per diluted share. -- Aggregates shipments
declined 31 percent, reducing earnings $0.64 per diluted share. --
Aggregates pricing increased 3 percent. -- Aggregates cash fixed
costs decreased 17 percent. -- Asphalt unit margins continued to
recover. -- EBITDA was $168 million versus $265 million in the
prior year. Cash earnings were $118 million versus $199 million in
the prior year. Both comparisons exclude the effects in 2008
referable to the gain on sale of required divestitures as part of
the Florida Rock acquisition. -- Year-to-date cash provided by
operating activities was $169 million compared with $134 million in
the prior year. -- Net proceeds of approximately $520 million from
the public equity offering of early June were used to reduce
short-term borrowing. Commenting for the Company, Don James,
Vulcan's Chairman and Chief Executive Officer, stated, "While our
current results reflect the volume effect of the prolonged
recession, we are encouraged by the increased level of bid activity
by state transportation departments as well as the significant
increase in highway construction contract awards reported in May
and June. The increased level of bid activity and contracts awarded
demonstrate that funding provided by the federal economic stimulus
plan, or American Recovery and Reinvestment Act (ARRA), is working
its way into the economy. We expect construction activity referable
to these contract awards to begin in the second half of 2009 and to
provide a meaningful contribution to overall aggregates demand in
2010. "We remain focused on managing costs and generating cash,
which will enhance our ability to increase earnings as the economy
recovers and construction activity improves. In early June, we
further strengthened our balance sheet and enhanced our financial
flexibility by completing a successful public equity offering. Net
proceeds of $520 million from the offering were used to reduce
short-term bank borrowings, thereby freeing up a like amount of
liquidity under our lines of credit." Second Quarter Operating
Results Commentary Second quarter earnings for aggregates declined
as the impact of sharply lower shipments more than offset the
earnings benefit from improved prices, lower unit costs for diesel
fuel and cost control measures. Aggregates shipments declined 31
percent from the prior year due to weak demand and wet weather. The
decrease in aggregates volumes reduced second quarter EBITDA by
approximately $112 million versus the prior year. The increase in
the average selling price for aggregates reflects wide variations
across Vulcan-served markets. Many major markets realized price
improvement from the prior year well above the 3 percent average,
while certain markets in the far West and Florida reported
year-over-year declines in average selling price. By rationalizing
production, reducing operating hours, streamlining the workforce
and effectively managing spending, the Company offset some of the
cost impact related to lower volumes. Aggregates cash fixed costs
were reduced 17 percent from the prior year's second quarter. The
unit cost for diesel fuel decreased 54 percent from the prior
year's second quarter, increasing earnings $0.12 per diluted share.
Asphalt earnings in the second quarter were higher than last year's
second quarter as material margins recovered to more normal levels,
reflecting moderation in the cost of liquid asphalt, which more
than offset the earnings effect of a 30 percent decline in asphalt
volumes. Concrete earnings decreased from the prior year's second
quarter due primarily to lower volumes. Cement earnings showed a
slight loss in the second quarter due to the effects of weaker
sales volumes, slightly offset by lower energy costs. Selling,
administrative and general expenses in the second quarter decreased
$5 million from the prior year. Cost-saving actions implemented
across the Company to align spending levels with weak product
demand more than offset $4 million in project costs related to the
replacement of legacy IT systems. Additionally, the prior year's
second quarter included expenses of $6 million for the fair market
value of donated real estate. During the second quarter, we revised
our estimated annual effective tax rate to 6.4 percent,
significantly lower than the 23.2 percent estimated in the first
quarter. An adjustment to the current quarter's income tax
provision was required so that the year-to-date provision reflects
the expected annual tax rate. A substantial amount of the tax
benefit recognized for the loss reported in the first quarter of
2009 was reversed during the second quarter to reflect the revised
annual rate. This adjustment reduced earnings $0.06 per diluted
share, during the second quarter of 2009, resulting in an effective
tax rate of 38.2 percent, as compared with 31.0 percent in the
second quarter of 2008. All results are unaudited. Outlook
Highlights and Commentary Commenting on the Company's outlook for
2009, Mr. James stated, "The current year remains challenging due
to weak private construction activity. Despite these challenges, we
believe the cost management actions we have taken, along with our
disciplined approach to pricing, and the improved liquidity and
financial flexibility we have achieved, will enable us to
participate fully in the economic recovery. "Plant operating costs
and overhead are being tightly managed as we continue to adjust our
cost structure to match the weak demand environment. Additionally,
lower unit costs for diesel fuel and liquid asphalt should continue
to benefit earnings in 2009. "We expect higher selling prices for
our products in 2009 to partially offset the earnings effects of
lower volumes. For the full year 2009, we expect aggregates pricing
to improve 3 to 4 percent. The average selling price for asphalt
mix in 2009 should also increase from 2008. "Our revised outlook
for 2009 aggregates demand is due primarily to further weakness
expected in private construction. U.S. contract awards in the most
recent two months for private nonresidential and private
infrastructure construction have weakened, lowering our expectation
for aggregates demand from this end use in the second half of the
year. Specifically, published contract awards for private
nonresidential buildings reported during the second quarter
declined more than 60 percent in Vulcan-served states when compared
with the prior year's second quarter. Contract awards for private
infrastructure-related projects declined more than 80 percent. As a
result, we now expect 2009 full year aggregates shipments to
decline 21 to 24 percent from 2008 levels. "We expect the further
weakness in private construction awards to be offset somewhat by
incremental demand in the second half of 2009 from highway
construction activity related primarily to economic stimulus
projects. State departments of transportation and local governments
continue to make good progress obligating stimulus dollars for
transportation projects. In July, the Federal Highway
Administration reported that 64 percent of the $26.8 billion of
ARRA highway funds has been obligated by state departments of
transportation, up from $13 billion at the end of May.
Additionally, the number of transportation projects bid and the
frequency of bid lettings have increased in recent months,
contributing to a 61 percent increase in the value of
transportation contract awards in June in Vulcan-served states.
Overall, our outlook for stimulus-related demand remains unchanged
for the second half of 2009 and beyond. "As a result, we now expect
second half earnings of $0.60 to $0.85 per diluted share, including
$0.55 to $0.80 per diluted share from continuing operations. In the
second half of 2008, earnings were $0.63 per share, excluding the
noncash charge for impairment of the goodwill associated with the
cement segment. Full year earnings are expected to be $0.51 to
$0.76 per diluted share, including $0.40 to $0.65 per diluted share
from continuing operations. "Debt reduction and achieving target
debt ratios remain a priority use of cash flows. With the proceeds
of the recent equity offering and the previously announced
reduction in the quarterly dividend, we expect to reduce total debt
by approximately $700 million during 2009. For the full year 2009,
we expect capital spending to be approximately $175 million, down
sharply from the $354 million spent in 2008. "Looking ahead to
2010, Vulcan should benefit from our aggregates-focused strategy
that is complemented by our asphalt and concrete operations in
certain markets. Our preliminary estimates for growth in demand for
our products from stimulus-related construction activity, as well
as some improvement in residential construction, point toward
growth in earnings. Our available production capacity and improved
cost structure position Vulcan to participate efficiently and
effectively in the supply of material for economic stimulus
projects. Key Vulcan-served states such as California, Florida and
Texas will receive the largest percentage of highway funding under
the stimulus plan and are likely targets for above-average funding
for other stimulus spending for infrastructure because of their
high growth and large population base." Conference Call Vulcan will
host a conference call at 10:00 a.m. CDT on August 4, 2009.
Investors and other interested parties in the U.S. may access the
teleconference live by calling 888.680.0865 approximately 10
minutes before the scheduled start. International participants can
dial 617.213.4853. The access code is 82537459. A live webcast will
be available via the Internet through Vulcan's home page at
http://www.vulcanmaterials.com/. The conference call will be
recorded and available for replay approximately two hours after the
call through August 11, 2009. Vulcan Materials Company, a member of
the S&P 500 Index, is the nation's largest producer of
construction aggregates, a major producer of asphalt mix and
concrete and a leading producer of cement in Florida. Certain
matters discussed in this release, including expectations regarding
future performance, contain forward-looking statements that are
subject to assumptions, risks and uncertainties that could cause
actual results to differ materially from those projected. These
assumptions, risks and uncertainties include, but are not limited
to, those associated with general economic and business conditions;
changes in interest rates; the timing and amount of federal, state
and local funding for infrastructure; changes in the level of
spending for residential and private nonresidential construction;
the highly competitive nature of the construction materials
industry; the impact of future regulatory or legislative actions;
the outcome of pending legal proceedings; pricing; weather and
other natural phenomena; energy costs; costs of hydrocarbon-based
raw materials; increasing healthcare costs; the amount of long-term
debt and interest expense; possible increase in the cash
contributions to pension plans; the timing and amount of any future
payments to be received under the 5CP earn-out contained in the
agreement for the divestiture of the Company's Chemicals business;
the Company's ability to secure and permit aggregates reserves in
strategically located areas; the Company's ability to manage and
successfully integrate acquisitions; the impact of the global
financial crisis on our business and financial condition and access
to the capital markets; and other assumptions, risks and
uncertainties detailed from time to time in the Company's SEC
reports, including the report on Form 10-K for the year.
Forward-looking statements speak only as of the date hereof, and
Vulcan assumes no obligation to publicly update such statements.
(Logo: http://www.newscom.com/cgi-bin/prnh/20090710/CL44887LOGO)
Table A Vulcan Materials Company and Subsidiary Companies (Amounts
and shares in thousands, except per share data) Three Months Ended
Six Months Ended Consolidated Statements June 30 June 30 of
Earnings ------- ------- (Condensed and unaudited) 2009 2008 2009
2008 ------------------------- -------- -------- ----------
---------- Net sales $681,380 $965,957 $1,249,275 $1,737,718
Delivery revenues 40,479 55,594 72,878 101,172 -------- --------
---------- ---------- Total revenues 721,859 1,021,551 1,322,153
1,838,890 Cost of goods sold 535,546 720,731 1,025,834 1,338,042
Delivery costs 40,479 55,594 72,878 101,172 -------- --------
---------- ---------- Cost of revenues 576,025 776,325 1,098,712
1,439,214 -------- -------- ---------- ---------- Gross profit
145,834 245,226 223,441 399,676 Selling, administrative and general
expenses 79,353 84,781 159,070 177,357 Gain on sale of property,
plant & equipment and businesses, net 654 80,498 3,157 84,443
Other operating (income) expense, net 1,451 2,474 3,170 1,534
-------- -------- ---------- ---------- Operating earnings 65,684
238,469 64,358 305,228 Other income (expense), net 2,895 3,444
1,820 792 Interest income 687 997 1,482 1,669 Interest expense
44,073 38,193 87,992 81,652 -------- -------- ---------- ----------
Earnings (loss) from continuing operations before income taxes
25,193 204,717 (20,332) 226,037 Provision (benefit) for income
taxes 9,632 63,492 (3,638) 70,327 -------- -------- ----------
---------- Earnings (loss) from continuing operations 15,561
141,225 (16,694) 155,710 Earnings (loss) on discontinued
operations, net of tax 6,651 (470) 6,125 (1,022) -------- --------
---------- ---------- Net earnings (loss) $22,212 $140,755
$(10,569) $154,688 ==================== ======== ========
========== ========== Basic earnings (loss) per share: Continuing
operations $0.14 $1.28 $(0.15) $1.42 Discontinued operations 0.06 -
0.06 - -------- -------- ---------- ---------- Net earnings (loss)
per share $0.20 $1.28 $(0.09) $1.42 Diluted earnings (loss) per
share: Continuing operations $0.14 $1.27 $(0.15) $1.41 Discontinued
operations 0.06 - 0.06 (0.01) -------- -------- ----------
---------- Net earnings (loss) per share $0.20 $1.27 $(0.09) $1.40
========= ======== ======== ========== ========== Weighted-average
common shares outstanding: Basic 113,477 109,922 112,045 109,286
Assuming dilution 113,829 111,117 112,045 110,515 Cash dividends
declared per share of common stock $0.49 $0.49 $0.98 $0.98
Depreciation, depletion, accretion and amortization from continuing
operations $99,600 $96,919 $198,915 $192,775 Effective tax rate
from continuing operations 38.2% 31.0% 17.9% 31.1%
======================= ======== ======== ========== ==========
Table B Vulcan Materials Company and Subsidiary Companies (Amounts
in thousands) Consolidated Balance Sheets June 30 December 31 June
30 (Condensed and unaudited) 2009 2008 2008 Assets ------ Cash and
cash equivalents $43,711 $10,194 $151,210 Medium-term investments
6,755 36,734 - Accounts and notes receivable: Accounts and notes
receivable, gross 394,938 365,688 530,759 Less: Allowance for
doubtful accounts (9,437) (8,711) (7,456) ---------- ----------
---------- Accounts and notes receivable, net 385,501 356,977
523,303 Inventories: Finished products 290,451 295,525 309,868 Raw
materials 32,035 28,568 29,009 Products in process 5,133 4,475
3,113 Operating supplies and other 35,964 35,743 41,510 ----------
---------- ---------- Inventories 363,583 364,311 383,500 Deferred
income taxes 69,080 71,205 62,074 Prepaid expenses 58,425 54,469
19,392 ---------- ---------- ---------- Total current assets
927,055 893,890 1,139,479 Investments and long-term receivables
30,614 27,998 24,265 Property, plant & equipment: Property,
plant & equipment, cost 6,672,394 6,635,873 6,047,065 Less:
Reserve for depr., depl. & amort. (2,644,146) (2,480,061)
(2,325,181) ---------- ---------- ---------- Property, plant &
equipment, net 4,028,248 4,155,812 3,721,884 Goodwill 3,091,524
3,083,013 3,895,267 Other intangible assets 683,092 673,792 153,094
Other assets 87,339 79,664 200,493 ---------- ---------- ----------
Total assets $8,847,872 $8,914,169 $9,134,482 ========== ==========
========== Liabilities and Shareholders' Equity
------------------------------------ Current maturities of
long-term debt $60,417 $311,685 $330,081 Short-term borrowings
412,300 1,082,500 1,209,500 Trade payables and accruals 145,744
147,104 215,835 Other current liabilities 130,103 121,777 178,775
---------- ---------- ---------- Total current liabilities 748,564
1,663,066 1,934,191 Long-term debt 2,521,190 2,153,588 2,183,584
Deferred income taxes 957,248 949,036 685,432 Other noncurrent
liabilities 617,651 625,743 415,506 ---------- ----------
---------- Total liabilities 4,844,653 5,391,433 5,218,713
---------- ---------- ---------- Shareholders' equity: Common
stock, $1 par value 124,989 110,270 109,834 Capital in excess of
par value 2,316,507 1,734,835 1,702,946 Retained earnings 1,743,097
1,862,913 2,129,554 Accumulated other comprehensive loss (181,374)
(185,282) (26,565) ---------- ---------- ---------- Shareholders'
equity 4,003,219 3,522,736 3,915,769 ---------- ----------
---------- Total liabilities and shareholders' equity $8,847,872
$8,914,169 $9,134,482 ===================== ========== ==========
========== Table C Vulcan Materials Company and Subsidiary
Companies (Amounts in thousands) Six Months Ended June 30
Consolidated Statements of Cash Flows ------- (Condensed and
unaudited) 2009 2008
----------------------------------------------------------------------
Operating Activities -------------------- Net earnings (loss)
$(10,569) $154,688 Adjustments to reconcile net earnings (loss) to
net cash provided by operating activities: Depreciation, depletion,
accretion and amortization 198,915 192,775 Net gain on sale of
property, plant & equipment and businesses (3,880) (84,443)
Contributions to pension plans (2,242) (1,593) Share-based
compensation 14,010 9,169 Excess tax benefit from share-based
compensation (325) (3,605) Deferred tax provision 5,671 194 Changes
in assets and liabilities before initial effects of business
acquisitions and dispositions (35,850) (126,566) Other, net 3,672
(6,566) ------- ------- Net cash provided by operating activities
169,402 134,053 ------- ------- Investing Activities
-------------------- Purchases of property, plant & equipment
(60,101) (198,658) Proceeds from sale of property, plant &
equipment 4,051 13,576 Proceeds from sale of businesses 11,537
225,783 Payment for businesses acquired, net of acquired cash
(36,980) (79,822) Redemption of medium-term investments 30,590 -
Proceeds from loan on life insurance policies - 28,646 Withdrawal
from nonconsolidated companies, net 63 469 Other, net 651 5,008
------- ------- Net cash used for investing activities (50,189)
(4,998) ------- ------- Financing Activities --------------------
Net short-term payments (672,176) (882,000) Payment of short-term
debt and current maturities (281,461) (483) Proceeds from issuance
of long-term debt, net of discounts 397,660 949,078 Debt issuance
costs (3,033) (5,633) Settlements of forward starting swaps -
(32,474) Proceeds from issuance of common stock 578,237 55,072
Dividends paid (108,752) (106,976) Proceeds from exercise of stock
options 3,697 6,850 Excess tax benefit from share-based
compensation 325 3,605 Other, net (193) 228 ------- ------- Net
cash used for financing activities (85,696) (12,733) -------
------- Net increase in cash and cash equivalents 33,517 116,322
Cash and cash equivalents at beginning of year 10,194 34,888
------- ------- Cash and cash equivalents at end of period $43,711
$151,210 =========================================== =======
======== Table D Segment Financial Data and Unit Shipments (Amounts
in thousands, except per unit data) Three Months Ended Six Months
Ended June 30 June 30 --------------------- ---------------------
2009 2008 2009 2008 --------------------- ---------------------
Total Revenues Aggregates (a) $497,605 $679,271 $899,417 $1,215,309
Asphalt mix and Concrete (b) 218,308 325,374 411,507 592,002 Cement
(c) 16,853 29,162 36,594 60,249 Intersegment sales (51,386)
(67,850) (98,243) (129,842) -------- ---------- ----------
---------- Total net sales 681,380 965,957 1,249,275 1,737,718
Delivery revenues 40,479 55,594 72,878 101,172 -------- ----------
---------- ---------- Total revenues $721,859 $1,021,551 $1,322,153
$1,838,890 ======== ========== ========== ========== Gross Profit
Aggregates $126,830 $217,866 $190,446 $344,773 Asphalt mix and
Concrete 19,511 23,266 34,828 43,340 Cement (507) 4,094 (1,833)
11,563 -------- ---------- ---------- ---------- Total gross profit
$145,834 $245,226 $223,441 $399,676 ======== ========== ==========
========== Unit Shipments Aggregates Customer tons 37,793 54,331
67,334 96,401 Internal tons (d) 2,929 4,916 5,441 8,887 --------
---------- ---------- ---------- Aggregates - tons 40,722 59,247
72,775 105,288 ====== ====== ====== ======= Asphalt mix - tons
1,902 2,725 3,300 4,629 Ready-mixed concrete - cubic yards 1,129
1,727 2,216 3,320 Cement Customer tons 57 174 124 347 Internal tons
(d) 89 124 190 241 -------- ---------- ---------- ---------- Cement
- tons 146 298 314 588 ======== ========== ========== ==========
Average Unit Sales Price (including internal sales) Aggregates
(freight- adjusted) (e) $10.35 $10.02 $10.31 $10.06 Asphalt mix
$53.64 $51.93 $54.30 $50.70 Ready-mixed concrete $96.74 $97.39
$98.08 $98.41 Cement $98.70 $96.50 $97.79 $97.32 (a) Includes
crushed stone, sand and gravel, sand, other aggregates, as well as
transportation and service revenues associated with the aggregates
business. (b) Includes asphalt mix, ready-mixed concrete, concrete
block, precast, as well as building materials purchased for resale.
(c) Includes cement and calcium products. (d) Represents tons
shipped primarily to our downstream operations (e.g., asphalt mix
and ready-mixed concrete). Sales from internal shipments are
eliminated in net sales presented above and in the accompanying
Condensed Consolidated Statements of Earnings. (e) Freight-adjusted
sales price is calculated as total sales dollars (internal and
external) less freight to remote distribution sites divided by
total sales units (internal and external). Table E Supplemental
Cash Flow Information Supplemental information referable to the
Condensed Consolidated Statements of Cash Flows for the Six Months
Ended June 30 is summarized below (amounts in thousands): 2009 2008
------- ------- Supplemental Disclosure of Cash Flow Information
------------------------------------------------ Cash paid
(refunded) during the period for: Interest, net of amount
capitalized $98,871 $89,532 Income taxes (9,468) 37,055
Supplemental Schedule of Noncash Investing and Financing Activities
---------------------------------------------- Liabilities assumed
in business acquisitions - 1,292 Accrued liabilities for purchases
of property & equipment 14,684 24,834 Carrying value of noncash
assets and liabilities exchanged - 42,974 Debt issued for purchases
of property, plant & equipment 1,982 8 Fair value of stock
issued in business acquisitions - 25,023 Other noncash transactions
- 16 Table F Reconciliation of Non-GAAP Measures EBITDA and Cash
Earnings Reconciliations (Amounts in thousands) Three Months Ended
Six Months Ended June 30 June 30 ------------------
----------------- 2009 2008 2009 2008
------------------------------------------------------------------------
Reconciliation of Net Cash Provided by Operating Activities to
EBITDA and Cash Earnings Net cash provided by operating activities
$64,303 $121,135 $169,402 $134,053 Changes in operating assets and
liabilities before initial effects of business acquisitions and
dispositions 72,161 35,875 35,850 126,566 Other net operating items
(providing) using cash (14,652) 80,664 (16,906) 86,844 (Earnings)
loss on discontinued operations, net of tax (6,651) 470 (6,125)
1,022 Provision for income taxes 9,632 63,492 (3,638) 70,327
Interest expense, net 43,386 37,196 86,510 79,983 Less:
Depreciation, depletion, accretion and amortization (99,600)
(96,919) (198,915) (192,775) -------- -------- -------- --------
EBIT 68,579 241,913 66,178 306,020 Plus: Depreciation, depletion,
accretion and amortization 99,600 96,919 198,915 192,775 --------
-------- -------- -------- EBITDA $168,179 $338,832 $265,093
$498,795 Less: Interest expense, net (43,386) (37,196) (86,510)
(79,983) Current taxes (6,379) (64,854) 9,527 (70,006) --------
-------- -------- -------- Cash earnings $118,414 $236,782 $188,110
$348,806 ======== ======== ======== ======== Reconciliation of
Operating Earnings to EBITDA and Cash Earnings Operating earnings
$65,684 $238,469 $64,358 $305,228 Other income (expense), net 2,895
3,444 1,820 792 -------- -------- -------- -------- EBIT 68,579
241,913 66,178 306,020 Plus: Depreciation, depletion, accretion and
amortization 99,600 96,919 198,915 192,775 -------- --------
-------- -------- EBITDA $168,179 $338,832 $265,093 $498,795 Less:
Interest expense, net (43,386) (37,196) (86,510) (79,983) Current
taxes (6,379) (64,854) 9,527 (70,006) -------- -------- --------
-------- Cash earnings $118,414 $236,782 $188,110 $348,806 ========
======== ======== ======== EBITDA and Earnings Per Share (EPS)
Bridge EBITDA EPS (millions) (diluted) ---------- ---------- Second
Quarter Continuing Operations - 2008 Actual $339 $1.27 Increase /
(Decrease) due to: Aggregates: Volumes (112) (0.64) Selling prices
14 0.08 Costs 8 0.05 Asphalt mix and Concrete (3) (0.02) Cement (5)
(0.03) Selling, administrative and general expenses 5 0.03 Gain on
sale of property, plant & equipment and businesses (74) (0.34)
Depreciation, depletion, accretion and amortization n/a (0.02)
Interest expense, net n/a (0.03) Tax rate differential and discrete
items n/a (0.13) Additional shares outstanding and other (4) (0.08)
---- ----- Second Quarter Continuing Operations - 2009 Actual $168
$0.14 ==== ===== EBITDA is an acronym for Earnings Before Interest,
Taxes, Depreciation and Amortization. Cash earnings adjusts EBITDA
for net interest and current taxes. These financial metrics are
often used by the investment community as indicators of a company's
ability to incur and service debt. They are not defined by
Generally Accepted Accounting Principles (GAAP); thus, it should
not be considered as an alternative to net cash provided by
operating activities, operating earnings, or any other liquidity or
performance measure defined by GAAP. These metrics are presented
for the convenience of investment professionals that use such
metrics in their analysis and to provide the Company's shareholders
an understanding of metrics management uses to assess performance
and to monitor our cash and liquidity positions. Due to the
significant write-up of the assets acquired in the November 2007
acquisition of Florida Rock resulting from the application of SFAS
141, Business Combinations, Vulcan's management internally uses
EBITDA, cash earnings and other such measures to assess the
operating performance of the acquired Florida Rock assets and
consolidated company. Vulcan's management does not use these
metrics as a measure to allocate resources internally. Investor
Contact: Mark Warren (205) 298-3220 Media Contact: David Donaldson
(205) 298-3220
http://www.newscom.com/cgi-bin/prnh/20090710/CL44887LOGODATASOURCE:
Vulcan Materials Company CONTACT: Investors, Mark Warren,
+1-205-298-3220, Media, David Donaldson, +1-205-298-3220, both of
Vulcan Materials Company Web Site: http://www.vulcanmaterials.com/
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