BIRMINGHAM, Ala., May 3, 2016 /PRNewswire/ -- Vulcan Materials
Company (NYSE:VMC), the nation's largest producer of construction
aggregates, today announced results for the first quarter ending
March 31, 2016.
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The Company's first quarter results reflect continued strong
revenue growth and margin expansion. Total revenues grew 20
percent. Total gross profit more than doubled, with growth in
all segments. First quarter Adjusted EBITDA was $156 million. Compared with the prior
year's first quarter, aggregates shipments rose 5.7 million tons,
or 17 percent, and freight-adjusted aggregates pricing increased
$1.08 per ton, or 9.5 percent.
For the trailing twelve months, Adjusted EBITDA of $914 million represents a 42 percent gain over
the prior year period. Same-store aggregates shipments for
this period grew 9 percent, and freight-adjusted pricing grew 8
percent. Incremental aggregates gross profit equaled 71
percent of incremental freight-adjusted revenues. Aggregates
gross profit as a percentage of freight-adjusted revenues expanded
to 38 percent from 31 percent.
Tom Hill, Chairman and Chief
Executive Officer, said, "The recovery in construction activity
continues across most of our markets and our strong first quarter
volume growth – along with the growth we've seen over the past
several quarters – reflects that sustained strengthening in
demand. Several factors contributed to the above-trend volume
growth seen in the first quarter, including relatively favorable
weather conditions in certain of our markets, our customers'
success in winning and executing new project work, incremental
improvements in public construction spending, and an additional
shipping day in the quarter due to Leap
Year.
Our local leadership teams continue to capitalize on the
recovery in demand for our products, serving our customers well and
doing so efficiently and safely. As a result of their efforts
and our improving business fundamentals, we currently project full
year adjusted EBITDA at or near the high-end of our guidance range
and supported by 8 to 9 percent growth in full year aggregates
shipments over 2015."
First Quarter Summary (compared with prior year's first
quarter)
- Total revenues increased $123
million, or 20 percent, to $755
million
- Gross profit increased $87
million, or 112 percent, to $165 million
- Aggregates freight-adjusted revenues increased $107 million, or 28 percent, to $487 million
- Shipments increased 17 percent, or 5.7 million tons, to 39
million tons
- Freight-adjusted sales price increased 9.5 percent
- Segment gross profit increased $81
million, or 119 percent, to $148
million
- Asphalt, Concrete and Calcium segment gross profit improved
$6 million, or 60 percent,
collectively
- SAG declined approximately 50 basis points as a percentage of
total revenues
- Adjusted EBIT was $86 million, an
increase of $75 million
- Adjusted EBITDA was $156 million,
an increase of $78 million, or 100
percent
- Earnings from continuing operations were $0.15 per diluted share versus a loss of
$0.28 per diluted share in the first
quarter of 2015
- The current quarter's earnings include $0.11 per diluted share for impairment of leased
property and certain charges recorded in Other Operating Expense
(detailed on page 4 of this release)
- The prior year's results include $0.12 per diluted share for net charges related
to a debt purchase, gain on sale of assets, restructuring and
business development costs
- Adjusted for these items, earnings from continuing operations
were $0.26 per diluted share in the
first quarter of 2016 versus a loss of $0.16 per diluted share in the prior year
Trailing Twelve Months Summary (compared with the prior
twelve month period)
- Total revenues increased $495
million, or 16 percent, to $3.5
billion
- Gross profit increased $313
million, or 50 percent, to $944 million
- Aggregates freight-adjusted revenues increased $370 million, or 20 percent, to $2.2 billion
- Total shipments increased 11 percent, or 17.7 million tons, to
184 million tons; same-store shipments increased 9 percent
- Freight-adjusted sales price increased 8 percent
- Segment gross profit increased $263
million, or 46 percent, to $836
million
- Asphalt, Concrete and Calcium segment gross profit improved 86
percent, or $50 million,
collectively
- SAG declined as a percentage of total revenues by 60 basis
points
- Adjusted EBIT was $637 million,
an increase of $271 million, or 74
percent
- Adjusted EBITDA was $914 million,
an increase of $272 million, or 42
percent
- Earnings from continuing operations were $2.14 per diluted share versus $0.87 per share
- These results include gains on sale of assets, as well as
charges related to debt refinancing, impairment of leased property
certain charges recorded in Other Operating Expense (noted above
for first quarter 2016), business development activities,
restructuring and certain income tax items
- Excluding these items, earnings from continuing operations were
$2.57 per diluted share versus
$1.04 per diluted share
Segment Results
Aggregates
The gradual recovery in construction activity and demand for
aggregates continued across most of the Company's footprint in the
first quarter. On a same-store basis, most of the Company's
key states realized strong double-digit volume growth, aided by
relatively favorable weather for construction as well as strong
performance by our customers in winning and executing
projects. In contrast, California shipments fell more than 10 percent
from the prior year, and shipments in Texas grew only 2 percent. Wet weather
negatively impacted shipments in both states. In addition,
California experienced a slowdown
in larger public construction activity, and Texas experienced softening demand in the
Houston metro region.
For the twelve months ended March
31, same-store shipments rose 9 percent over the
year-earlier period. This quarter was the eleventh
consecutive quarter in which the rate of shipments, on a
consecutive trailing twelve months basis, has increased.
Despite these recent gains, demand for aggregates remains well
below demographic-driven historical trend lines in the U.S.
The passage of the FAST Act and key state-level transportation
funding measures does not appear yet to have impacted construction
activity significantly. The Company believes conditions
remain in place for a sustained, multi-year recovery in demand for
aggregates.
For the quarter, freight-adjusted average sales price for
aggregates increased 9.5 percent, or $1.08 per ton, versus the prior year. On a
trailing twelve months basis, pricing in all of the Company's major
markets has increased versus the prior year's comparable
period. The overall pricing climate remains favorable as
construction materials producers remain focused on earning adequate
returns on capital.
First quarter unit cost of sales in the Aggregates segment was
lower than the prior year by approximately $0.68 per ton. Improved leverage of fixed
costs with higher production, as well as lower average diesel
costs, underpinned this improvement versus a weather-challenged
comparison period. Repair and maintenance costs in the first
quarter remained higher than the prior year period, consistent with
the Company's experience over the last few quarters. For the
trailing twelve months, unit costs of sales, excluding the impact
of lower diesel costs, was essentially flat. These results
reflect the Company's continued commitment to plant-level cost
controls and operating disciplines.
Aggregates segment unit margins continued to expand faster than
unit pricing. Gross profit per ton increased $1.76, or 87 percent, from the prior year.
Cash gross profit per ton increased $1.57, or 43 percent, from the prior year.
On a trailing twelve months basis, unit gross profit has increased
32 percent, while unit cash gross profit has increased 20 percent
to $5.80 per ton. These results
reflect the Company's continued commitment to plant-level cost
controls and operating disciplines.
For the quarter, aggregates gross profit flow-through rate was
strong. Freight-adjusted revenues increased $107 million, while gross profit for the segment
increased $81 million. On a
same-store basis, incremental gross profit was 77 percent of
incremental freight-adjusted revenues. Because quarterly
results can be volatile due to seasonality and other factors, the
Company encourages investors to also consider longer-term
trends. On a trailing twelve months same-store basis, this
flow-through rate was 71 percent and has consistently exceeded the
Company's stated goal of 60 percent in each of the quarters since
volumes began to recover in the second half of 2013.
Asphalt, Concrete and Calcium
In the first quarter, asphalt gross profit was $12 million versus $9
million in the prior year. This year-over-year
improvement was due to solid sales and operating disciplines as
well as effective materials margin management. On a total and
same-store basis, volumes declined 4 percent due primarily to
extremely wet weather in California in January and March of this year
compared to an unseasonably mild first quarter last year.
Concrete gross profit improved $2.7
million from the prior year. On a same-store basis,
sales volumes increased sharply versus the prior year due to strong
shipment growth in Georgia,
Texas and Virginia. Pricing
and unit profitability also continued to improve.
In the first quarter, the Company's Calcium segment reported
gross profit of $0.6 million, a 13
percent improvement over the prior year.
Selling, Administrative and General (SAG), Asset Impairment,
and Other Operating Expense
Selling, administrative and general (SAG) expenses increased
$9.7 million versus the prior year
but decreased approximately 50 basis points as a percentage of
total revenues. The year-over-year increase results primarily
from certain compensation-related charges during the first quarter
of 2016 as a result of the significant improvement in both business
performance and the Company's stock price.
During the first quarter, the Company recognized approximately
$22 million in charges not reflected
in Adjusted EBITDA. Included in this amount is $9.6 million impairment relating to a leased
property we no longer intend to develop (reference impairment of
long-lived assets on the Consolidated Statements of
Earnings). Also included are charges associated with office
space no longer needed and vacated ($5.2
million), the write-off of a prepaid royalty asset resulting
from a change in long-term mining plans ($3.6 million), a property litigation settlement
($1.9 million), and environmental
liability accruals associated with previously divested properties
($1.2 million). These items
drove the $10 million increase in
Other Operating Expense over the prior year's first quarter
($13.9 million vs. $3.9 million). A reconciliation of Net
Earnings to EBITDA and Adjusted EBITDA can be found on Appendix 4
to the attached first quarter financial statements.
Credit Position and Capital Allocation
At the end of the first quarter, total debt outstanding was
approximately $2 billion, including
$235 million of floating-rate
borrowings, and the ratio of total debt to trailing twelve months
Adjusted EBITDA was 2.2 times. The quarter end cash balance
was $192 million.
In March, the Company's financial strength and flexibility was
recognized with investment-grade ratings by Standard & Poor's
Financial Services LLC and Fitch Ratings, Inc. The Company is
committed to maintaining investment-grade ratings through the
business cycle.
Cash capital expenditures in the first quarter were $108 million, including $28 million invested in the purchase of two
replacement ships to transport aggregates from the Company's
high-volume quarry in Mexico, new
site development and other growth opportunities. For the full
year, core capital expenditures, excluding acquisitions and
internal growth capital investments, are expected to be
approximately $275 million.
In the first quarter, the Company returned $50 million to shareholders through dividends and
share repurchases.
Demand and Earnings Outlook
Regarding the Company's earnings outlook for 2016, Mr. Hill
stated, "The strong fundamentals of our aggregates-focused business
and the execution of our teams led to strong earnings growth in
2015 and to a fast start in 2016. Our fast start through the
first quarter has put us ahead of our original plans and tracking
towards the high end of our full year Adjusted EBITDA guidance of
$1.0 to $1.1 billion. In
addition, we now project full year 2016 aggregates shipments to be
8 to 9 percent higher than 2015 (vs. our prior 7 percent growth
estimate). Other management expectations (e.g., aggregates
price, gross profit growth and SAG expense) remain consistent with
those outlined during our fourth quarter 2015 communications.
Mr. Hill concluded, "Our early 2016 results and full year
outlook align well with our longer range market expectations and
performance goals. Since the beginning of this recovery in
the second half of 2013, our teams' efforts have resulted in
trailing twelve months aggregates gross profit increasing nearly
$480 million on a 44 million tons
increase in annualized shipments. We remain on track to
deliver further gains in profitability and cash flow as the
recovery moves forward. I'm very pleased with the way our
people have executed, and I'm proud of their commitment to
continuous improvement in safety, customer service, and operating
efficiency."
Conference Call
Vulcan will host a conference call at 10:00 a.m. CDT on May
3, 2016. A webcast will be available via the Company's
website at www.vulcanmaterials.com. Investors and other
interested parties in the U.S. may also access the teleconference
live by calling 888-427-9419 approximately 10 minutes before the
scheduled start. International participants can dial
719-325-2393. The conference ID is 9719747. The
conference call will be recorded and available for replay at the
Company's website approximately two hours after the call.
Vulcan Materials Company, a member of the S&P 500 Index, is
the nation's largest producer of construction aggregates, and a
major producer of other construction materials.
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: those associated with general economic
and business conditions; the timing and amount of federal, state
and local funding for infrastructure; changes in Vulcan's effective
tax rate that can adversely impact results; the increasing reliance
on information technology infrastructure for Vulcan's ticketing,
procurement, financial statements and other processes could
adversely affect operations in the event such infrastructure does
not work as intended or 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; changes in the level of spending for private
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 of Vulcan's products; weather
and other natural phenomena; energy costs; costs of
hydrocarbon-based raw materials; healthcare costs; 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 clean-up costs and other
liabilities relating to previously 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 potential of goodwill or long-lived
asset impairment; the potential impact of future legislation or
regulations relating to climate change or greenhouse gas emissions
or the definition of minerals; and other assumptions, risks and
uncertainties detailed from time to time in the reports filed by
Vulcan with the SEC. All forward-looking statements in this
communication are qualified in their entirety by this cautionary
statement. Vulcan disclaims and does not undertake any
obligation to update or revise any forward-looking statement in
this document except as required by law.
Table A
|
Vulcan Materials
Company
|
and Subsidiary
Companies
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Consolidated
Statements of Earnings
|
|
March
31
|
(Condensed and
unaudited)
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Total
revenues
|
|
$754,728
|
|
$631,293
|
Cost of
revenues
|
|
590,010
|
|
553,428
|
Gross
profit
|
|
164,718
|
|
77,865
|
Selling,
administrative and general expenses
|
|
76,468
|
|
66,763
|
Gain on sale of
property, plant & equipment
and businesses
|
|
555
|
|
6,375
|
Impairment of
long-lived assets
|
|
(9,646)
|
|
0
|
Restructuring
charges
|
|
(320)
|
|
(2,818)
|
Other operating
expense, net
|
|
(13,918)
|
|
(3,900)
|
Operating earnings
|
|
64,921
|
|
10,759
|
Other nonoperating
income (expense), net
|
|
(694)
|
|
979
|
Interest expense,
net
|
|
33,732
|
|
62,480
|
Earnings (loss) from
continuing operations
before income
taxes
|
|
30,495
|
|
(50,742)
|
Provision for
(benefit from) income taxes
|
|
9,764
|
|
(14,075)
|
Earnings (loss) from
continuing operations
|
|
20,731
|
|
(36,667)
|
Loss on discontinued
operations, net of tax
|
|
(1,807)
|
|
(3,011)
|
Net earnings
(loss)
|
|
$18,924
|
|
($39,678)
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
|
|
|
Continuing operations
|
|
$0.15
|
|
($0.28)
|
Discontinued
operations
|
|
($0.01)
|
|
($0.02)
|
Net earnings (loss)
|
|
$0.14
|
|
($0.30)
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
Continuing operations
|
|
$0.15
|
|
($0.28)
|
Discontinued
operations
|
|
($0.01)
|
|
($0.02)
|
Net earnings (loss)
|
|
$0.14
|
|
($0.30)
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
|
|
|
Basic
|
|
133,821
|
|
132,659
|
Assuming dilution
|
|
135,452
|
|
132,659
|
Cash dividends per
share of common stock
|
|
$0.20
|
|
$0.10
|
Depreciation,
depletion, accretion and amortization
|
|
$69,406
|
|
$66,723
|
Effective tax rate
from continuing operations
|
|
32.0%
|
|
27.7%
|
Table B
|
Vulcan Materials
Company
|
and Subsidiary
Companies
|
|
|
|
(in
thousands)
|
Consolidated
Balance Sheets
|
|
March
31
|
|
December
31
|
|
March
31
|
(Condensed and
unaudited)
|
|
2016
|
|
2015
|
|
2015
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$191,886
|
|
$284,060
|
|
$392,657
|
Restricted
cash
|
|
0
|
|
1,150
|
|
0
|
Accounts and notes
receivable
|
|
|
|
|
|
|
Accounts and notes receivable,
gross
|
|
449,538
|
|
423,600
|
|
375,196
|
Less: Allowance for doubtful
accounts
|
|
(5,775)
|
|
(5,576)
|
|
(5,244)
|
Accounts and notes receivable,
net
|
|
443,763
|
|
418,024
|
|
369,952
|
Inventories
|
|
|
|
|
|
|
Finished products
|
|
288,891
|
|
297,925
|
|
285,313
|
Raw materials
|
|
22,160
|
|
21,765
|
|
21,203
|
Products in process
|
|
1,221
|
|
1,008
|
|
1,189
|
Operating supplies and
other
|
|
25,486
|
|
26,375
|
|
25,987
|
Inventories
|
|
337,758
|
|
347,073
|
|
333,692
|
Current deferred
income taxes
|
|
0
|
|
0
|
|
39,881
|
Prepaid
expenses
|
|
34,096
|
|
34,284
|
|
58,483
|
Total current
assets
|
|
1,007,503
|
|
1,084,591
|
|
1,194,665
|
Investments and
long-term receivables
|
|
38,895
|
|
40,558
|
|
41,613
|
Property, plant &
equipment
|
|
|
|
|
|
|
Property, plant & equipment,
cost
|
|
6,984,417
|
|
6,891,287
|
|
6,671,537
|
Reserve for depreciation,
depletion & amortization
|
|
(3,786,590)
|
|
(3,734,997)
|
|
(3,587,444)
|
Property, plant & equipment,
net
|
|
3,197,827
|
|
3,156,290
|
|
3,084,093
|
Goodwill
|
|
3,094,824
|
|
3,094,824
|
|
3,094,824
|
Other intangible
assets, net
|
|
753,372
|
|
766,579
|
|
764,072
|
Other noncurrent
assets
|
|
154,604
|
|
158,790
|
|
147,258
|
Total
assets
|
|
$8,247,025
|
|
$8,301,632
|
|
$8,326,525
|
Liabilities
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
131
|
|
130
|
|
365,441
|
Trade payables and
accruals
|
|
185,653
|
|
175,729
|
|
157,829
|
Other current
liabilities
|
|
170,701
|
|
177,620
|
|
180,066
|
Total current
liabilities
|
|
356,485
|
|
353,479
|
|
703,336
|
Long-term
debt
|
|
1,981,425
|
|
1,980,334
|
|
1,888,365
|
Noncurrent deferred
income taxes
|
|
663,364
|
|
681,096
|
|
682,849
|
Deferred
revenue
|
|
205,892
|
|
207,660
|
|
212,987
|
Other noncurrent
liabilities
|
|
618,806
|
|
624,875
|
|
678,821
|
Total
liabilities
|
|
$3,825,972
|
|
$3,847,444
|
|
$4,166,358
|
Equity
|
|
|
|
|
|
|
Common stock, $1 par
value
|
|
133,348
|
|
133,172
|
|
132,660
|
Capital in excess of
par value
|
|
2,823,116
|
|
2,822,578
|
|
2,765,391
|
Retained
earnings
|
|
1,584,344
|
|
1,618,507
|
|
1,418,901
|
Accumulated other
comprehensive loss
|
|
(119,755)
|
|
(120,069)
|
|
(156,785)
|
Total
equity
|
|
$4,421,053
|
|
$4,454,188
|
|
$4,160,167
|
Total liabilities and
equity
|
|
$8,247,025
|
|
$8,301,632
|
|
$8,326,525
|
Table C
|
Vulcan Materials
Company
|
and Subsidiary
Companies
|
(in
thousands)
|
|
|
|
Three Months
Ended
|
Consolidated
Statements of Cash Flows
|
|
March
31
|
(Condensed and
unaudited)
|
|
2016
|
|
2015
|
Operating
Activities
|
|
|
|
|
Net earnings
(loss)
|
|
$18,924
|
|
($39,678)
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
Depreciation, depletion,
accretion and amortization
|
|
69,406
|
|
66,723
|
Net gain on sale of property,
plant & equipment and businesses
|
|
(555)
|
|
(6,375)
|
Contributions to pension
plans
|
|
(2,343)
|
|
(1,447)
|
Share-based
compensation
|
|
4,321
|
|
4,700
|
Excess tax benefits from
share-based compensation
|
|
(21,235)
|
|
(7,575)
|
Deferred tax provision
(benefit)
|
|
(17,879)
|
|
(11,592)
|
Cost of debt purchase
|
|
0
|
|
21,734
|
Changes in assets and liabilities
before initial
effects of
business acquisitions and dispositions
|
|
19,668
|
|
4,575
|
Other, net
|
|
|
(27,450)
|
|
(11,911)
|
Net cash provided by
operating activities
|
|
$42,857
|
|
$19,154
|
Investing
Activities
|
|
|
|
|
Purchases of
property, plant & equipment
|
|
(108,284)
|
|
(49,611)
|
Proceeds from sale of
property, plant & equipment
|
|
1,086
|
|
2,354
|
Payment for
businesses acquired, net of acquired cash
|
|
(1,611)
|
|
0
|
Decrease in
restricted cash
|
|
1,150
|
|
0
|
Other, net
|
|
|
1,549
|
|
(334)
|
Net cash used for
investing activities
|
|
($106,110)
|
|
($47,591)
|
Financing
Activities
|
|
|
|
|
Payments of current
maturities and long-term debt
|
|
(5)
|
|
(145,918)
|
Proceeds from
issuance of long-term debt
|
|
0
|
|
400,000
|
Purchases of common
stock
|
|
(23,433)
|
|
0
|
Dividends
paid
|
|
(26,718)
|
|
(13,253)
|
Proceeds from
exercise of stock options
|
|
0
|
|
31,416
|
Excess tax benefits
from share-based compensation
|
|
21,235
|
|
7,575
|
Other, net
|
|
|
0
|
|
1
|
Net cash provided by
(used for) financing activities
|
|
($28,921)
|
|
$279,821
|
Net increase
(decrease) in cash and cash equivalents
|
|
(92,174)
|
|
251,384
|
Cash and cash
equivalents at beginning of year
|
|
284,060
|
|
141,273
|
Cash and cash
equivalents at end of period
|
|
$191,886
|
|
$392,657
|
Table D
|
Segment Financial
Data and Unit Shipments
|
(in thousands, except
per unit data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Total
Revenues
|
|
|
|
|
Aggregates
1
|
|
$634,868
|
|
$503,509
|
Asphalt Mix
2
|
|
89,099
|
|
103,071
|
Concrete
2
|
|
70,397
|
|
59,789
|
Calcium
3
|
|
1,910
|
|
1,855
|
Segment
sales
|
|
$796,274
|
|
$668,224
|
Aggregates
intersegment sales
|
|
(41,546)
|
|
(36,931)
|
Total
revenues
|
|
$754,728
|
|
$631,293
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
Aggregates
|
|
$148,383
|
|
$67,665
|
Asphalt Mix
2
|
|
12,214
|
|
8,818
|
Concrete
2
|
|
3,477
|
|
810
|
Calcium
3
|
|
644
|
|
572
|
Total
|
|
$164,718
|
|
$77,865
|
|
|
|
|
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
|
Aggregates
|
|
$57,511
|
|
$55,515
|
Asphalt Mix
2
|
|
4,232
|
|
3,909
|
Concrete
2
|
|
2,981
|
|
2,728
|
Calcium
3
|
|
183
|
|
162
|
Other
|
|
4,499
|
|
4,409
|
Total
|
|
$69,406
|
|
$66,723
|
|
|
|
|
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
Aggregates
|
|
|
|
|
Freight-adjusted
revenues 4
|
|
$486,917
|
|
$379,880
|
Aggregates -
tons
|
|
39,206
|
|
33,504
|
Freight-adjusted
sales price 5
|
|
$12.42
|
|
$11.34
|
|
|
|
|
|
Other
Products
|
|
|
|
|
Asphalt Mix -
tons
|
|
1,699
|
|
1,768
|
Asphalt Mix - sales
price
|
|
$52.04
|
|
$53.13
|
|
|
|
|
|
Ready-mixed concrete
- cubic yards
|
|
648
|
|
573
|
Ready-mixed concrete
- sales price
|
|
$108.58
|
|
$104.25
|
|
|
|
|
|
Calcium -
tons
|
|
72
|
|
67
|
Calcium - sales
price
|
|
$26.47
|
|
$26.61
|
1 Includes
crushed stone, sand and gravel, sand, other aggregates, as well as
freight, delivery and transportation
revenues,
and other revenues related to services.
|
2 In
January 2015, we exchanged our California ready-mixed concrete
operations for 13 asphalt mix plants, primarily in
Arizona.
|
3 Includes
cement and calcium products.
|
4
Freight-adjusted revenues are Aggregates segment sales excluding
freight, delivery and transportation
revenues, and other revenues
related to services, such as landfill tipping fees that are
derived from our aggregates business.
|
5
Freight-adjusted sales price is calculated as freight-adjusted
revenues divided by aggregates unit shipments.
|
Appendix 1
|
1.
Supplemental Cash Flow Information
|
Supplemental
information referable to the Condensed Consolidated Statements of
Cash Flows is summarized below:
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
March
31
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Cash
Payments
|
|
|
|
|
Interest (exclusive
of amount capitalized)
|
|
$2,715
|
|
$21,869
|
Income
taxes
|
|
6,486
|
|
2,062
|
|
|
|
|
|
|
Noncash Investing
and Financing Activities
|
|
|
|
|
Accrued liabilities
for purchases of property, plant & equipment
|
|
25,880
|
|
13,340
|
Accrued liabilities
for common stock purchases
|
|
3,164
|
|
0
|
Amounts referable to
business acquisitions
|
|
|
|
|
|
Fair value of noncash
assets and liabilities exchanged
|
|
0
|
|
20,000
|
|
2.
Reconciliation of Non-GAAP Measures
|
|
Gross profit margin
excluding freight and delivery revenues is not a Generally Accepted
Accounting Principle (GAAP) measure. We present this metric as it
is consistent with the basis by which we review our operating
results. Likewise, we believe that this presentation is consistent
with the basis by which investors analyze our operating results
considering that freight and delivery services represent
pass-through activities. Reconciliation of this metric to its
nearest GAAP measure is presented below:
|
|
Gross Profit
Margin in Accordance with GAAP
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Gross
profit
|
|
$164,718
|
|
$77,865
|
Total
revenues
|
|
$754,728
|
|
$631,293
|
|
Gross profit
margin
|
|
21.8%
|
|
12.3%
|
|
|
|
|
|
|
Gross Profit
Margin Excluding Freight and Delivery Revenues
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Gross
profit
|
|
$164,718
|
|
$77,865
|
Total
revenues
|
|
$754,728
|
|
$631,293
|
Freight and delivery
revenues 1
|
|
121,211
|
|
106,372
|
|
Total revenues
excluding freight and delivery revenues
|
|
$633,517
|
|
$524,921
|
Gross profit margin
excluding freight and delivery revenues
|
|
26.0%
|
|
14.8%
|
|
|
|
|
|
|
1 Includes
freight to remote distributions sites.
|
Appendix 2
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
|
|
|
|
|
Aggregates segment
gross profit margin as a percentage of freight-adjusted revenues is
not a GAAP measure. We present this metric as it is consistent with
the basis by which we review our operating results. We believe that
this presentation is meaningful to our investors as it excludes
freight, delivery and transportation revenues which are
pass-through activities. It also excludes immaterial other revenues
related to services, such as landfill tipping fees, that are
derived from our aggregates business. Incremental gross profit as a
percentage of freight-adjusted revenues represents the
year-over-year change in gross profit divided by the year-over-year
change in freight-adjusted revenues. Reconciliations of these
metrics to their nearest GAAP measures are presented
below:
|
|
|
|
|
|
|
Aggregates Segment
Gross Profit Margin in Accordance with GAAP
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31
|
|
|
|
2016
|
|
2015
|
Aggregates
segment
|
|
|
|
|
Gross
profit
|
|
$148,383
|
|
$67,665
|
Segment
sales
|
|
$634,868
|
|
$503,509
|
Gross profit
margin
|
|
23.4%
|
|
13.4%
|
Incremental gross
profit margin
|
|
61.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates Segment
Gross Profit as a Percentage of Freight-Adjusted
Revenues
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31
|
|
|
|
2016
|
|
2015
|
Aggregates
segment
|
|
|
|
|
Gross
profit
|
|
$148,383
|
|
$67,665
|
Segment
sales
|
|
$634,868
|
|
$503,509
|
Less
|
|
|
|
|
|
Freight, delivery and
transportation revenues 1
|
|
$143,750
|
|
$117,398
|
|
Other
revenues
|
|
4,201
|
|
6,231
|
|
Freight-adjusted
revenues
|
|
$486,917
|
|
$379,880
|
|
|
|
|
|
|
Gross profit as a
percentage of freight-adjusted revenues
|
|
30.5%
|
|
17.8%
|
Incremental gross
profit as a percentage of freight-adjusted revenues
|
|
|
|
|
|
75.4%
|
|
|
|
|
|
|
|
|
1 At the
segment level, freight, delivery and transportation revenues
include intersegment freight & delivery
revenues, which are
eliminated at the consolidated level.
|
Appendix 3
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
GAAP does not define
"Aggregates segment cash gross profit" and "Earnings Before
Interest, Taxes, Depreciation and Amortization" (EBITDA). Thus,
Aggregates segment cash gross profit and EBITDA should not be
considered as alternatives to earnings measures defined by GAAP. We
present these metrics for the convenience of investment
professionals who use such metrics in their analyses and for
shareholders who need to understand the metrics we use to assess
performance. The investment community often uses these
metrics as indicators to assess the operating performance of a
company's businesses. We use Aggregates segment cash gross profit
and EBITDA to assess the operating performance of our various
business units and the consolidated company. Additionally, we
adjust EBITDA for certain items to provide a more consistent
comparison of performance from period to period. We do not use
these metrics as a measure to allocate resources. Reconciliations
of these metrics to their nearest GAAP measures are presented
below:
|
|
|
Aggregates Segment
Cash Gross Profit
|
|
|
Aggregates segment
cash gross profit adds back noncash charges for depreciation,
depletion, accretion and amortization (DDA&A) to Aggregates
segment gross profit.
|
(in
thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31
|
|
|
|
2016
|
|
2015
|
Aggregates
segment
|
|
|
|
|
Gross
profit
|
|
$148,383
|
|
$67,665
|
DDA&A
|
|
57,511
|
|
55,515
|
|
Aggregates segment
cash gross profit
|
|
$205,894
|
|
$123,180
|
Unit shipments -
tons
|
|
39,206
|
|
33,504
|
Aggregates segment
cash gross profit per ton
|
|
$5.25
|
|
$3.68
|
Appendix 4
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA
|
|
|
|
|
|
|
EBITDA is an acronym
for Earnings Before Interest, Taxes, Depreciation and Amortization
and excludes discontinued operations. We adjust EBITDA for
certain items to provide a more consistent comparison of
performance from period to period.
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Reconciliation of
Net Earnings to EBITDA
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
|
$18,924
|
|
($39,678)
|
Provision for
(benefit from) income taxes
|
|
9,764
|
|
(14,075)
|
Interest expense,
net
|
|
33,732
|
|
62,480
|
Loss on discontinued
operations, net of tax
|
|
1,807
|
|
3,011
|
EBIT
|
|
$64,227
|
|
$11,738
|
Depreciation,
depletion, accretion and amortization
|
|
69,406
|
|
66,723
|
EBITDA
|
|
$133,633
|
|
$78,461
|
|
|
|
|
|
|
Adjusted EBITDA
and Adjusted EBIT
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$133,633
|
|
$78,461
|
|
Gain on sale of real
estate and businesses
|
|
0
|
|
(5,886)
|
|
Charges associated
with acquisitions and divestitures
|
|
12,282
|
|
2,429
|
|
Asset
impairment
|
|
9,646
|
|
0
|
|
Restructuring
charges
|
|
320
|
|
2,818
|
Adjusted
EBITDA
|
|
$155,881
|
|
$77,822
|
|
Depreciation,
depletion, accretion and amortization
|
|
(69,406)
|
|
(66,723)
|
Adjusted
EBIT
|
|
$86,475
|
|
$11,099
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/vulcan-announces-first-quarter-2016-results-300261377.html
SOURCE Vulcan Materials Company