Martin Marietta Materials, Inc. (NYSE: MLM) (“Martin Marietta” or
the “Company”), a leading national supplier of aggregates and heavy
building materials, today reported results for the second quarter
ended June 30, 2021.
Second-Quarter Highlights
|
Quarter Ended June 30, |
($ in
millions, except per share) |
2021 |
|
2020 |
Products and services revenues 1 |
$ |
1,295.3 |
|
|
$ |
1,189.5 |
|
Building Materials business |
$ |
1,225.3 |
|
|
$ |
1,140.6 |
|
Magnesia Specialties |
$ |
70.0 |
|
|
$ |
48.9 |
|
Total revenues 2 |
$ |
1,377.9 |
|
|
$ |
1,270.6 |
|
Gross profit |
$ |
385.1 |
|
|
$ |
380.5 |
|
Adjusted gross profit 3 |
$ |
392.7 |
|
|
$ |
380.5 |
|
Earnings from operations |
$ |
307.5 |
|
|
$ |
306.4 |
|
Adjusted earnings from
operations 4 |
$ |
324.4 |
|
|
$ |
306.4 |
|
Net earnings attributable to
Martin Marietta |
$ |
225.8 |
|
|
$ |
217.6 |
|
Adjusted EBITDA 5 |
$ |
439.2 |
|
|
$ |
407.0 |
|
Earnings per diluted
share |
$ |
3.61 |
|
|
$ |
3.49 |
|
Adjusted earnings per diluted
share 6 |
$ |
3.81 |
|
|
$ |
3.49 |
|
1 |
Products and services revenues include the sales of aggregates,
cement, ready mixed concrete, asphalt and Magnesia Specialties
products, and paving services to customers, and exclude related
freight revenues. |
2 |
Total revenues include the sales of products and services to
customers (net of any discounts or allowances) and freight
revenues. |
3 |
2021 adjusted gross profit excludes an increase in cost of revenues
from the impact of selling acquired inventory after its markup to
fair value as part of acquisition accounting. See Appendix to this
earnings release for a reconciliation to reported gross profit
under generally accepted accounting principles (GAAP). |
4 |
2021 adjusted earnings from operations exclude an increase in cost
of revenues from the impact of selling acquired inventory after its
markup to fair value as part of acquisition accounting and
acquisition-related expenses. See Appendix to this earnings release
for a reconciliation to reported earnings from operations under
GAAP. |
5 |
Earnings before interest; income taxes; depreciation, depletion and
amortization; the earnings/loss from nonconsolidated equity
affiliates; acquisition-related expenses; and an increase in cost
of revenues from the impact of selling acquired inventory after its
markup to fair value as part of acquisition accounting, or Adjusted
EBITDA, is a non-GAAP financial measure. See Appendix to this
earnings release for a reconciliation to net earnings attributable
to Martin Marietta. |
6 |
2021 adjusted earnings per diluted share excludes charges for the
impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting and acquisition-related expenses.
See appendix to this earnings release for a reconciliation to
reported earnings per diluted share under GAAP. |
|
|
Ward Nye, Chairman and CEO of Martin Marietta,
stated, “Our second-quarter results demonstrate Martin Marietta’s
strong execution of our proven Strategic Operating Analysis and
Review (SOAR) plan and the benefit of strengthening product demand,
pricing gains across all product lines and targeted growth
initiatives. The Company established new quarterly records for
revenues, profits and safety, notwithstanding significant rainfall
that adversely impacted operations in several of our key
geographies, most notably Texas and Colorado, our two largest
revenue states. Importantly, Martin Marietta is poised to
capitalize on long-term secular demand trends that are expected to
support growing construction activity and contribute to favorable
pricing dynamics across our footprint. We remain on track to once
again deliver record revenues and Adjusted EBITDA for the full
year.
“As we responsibly and sustainably grow our
business, we continue to advance SOAR 2025 and enhance our
geographic footprint and product offerings. In May, we announced an
agreement to acquire Lehigh Hanson, Inc.’s West Region business
(“Lehigh West Region”), which provides the Company with a new
upstream materials-led growth platform across several of the
nation’s largest and fastest growing megaregions in California and
Arizona. We expect the transaction to be accretive to earnings per
diluted share in the first full year following closing, and are
confident in our ability to quickly drive shareholder value using
the time-tested integration approach we took with our River for the
Rockies, TXI and Bluegrass acquisitions.”
Mr. Nye concluded, “As we SOAR to a
Sustainable Future, Martin Marietta will continue to build
on our foundation that has proven successful – an aggregates-led
growth platform, a steadfast commitment to employee safety,
disciplined pricing, operational excellence and solid execution of
our strategy. We are confident in Martin Marietta’s outlook for the
balance of the year and beyond and remain committed to delivering
sustainable growth and superior shareholder value.”
Mr. Nye’s CEO Commentary and Market Perspective
can be found on the Investors section of the
Company’s website.
Second-Quarter Operating and Financial
Results
(All comparisons are versus the prior-year
second quarter unless noted otherwise)
Building Materials Business
The Building Materials business achieved
products and services revenues of $1.2 billion, a 7.4 percent
increase, and product gross profit of $356.9 million.
The Building Materials business benefitted from
solid product demand driven by single-family housing growth,
infrastructure investment and notable heavy industrial projects of
scale. The aggregates, cement and ready mixed concrete operations
in Texas experienced project delays as the state marked its
eleventh-wettest second quarter in 127 years. Additionally, the
aggregates and downstream operations in Colorado faced a difficult
comparison versus second-quarter 2020, which benefitted from
unseasonably favorable weather conditions.
As previously announced, the Company completed
the acquisition of Minnesota-based Tiller Corporation (“Tiller”) on
April 30, 2021. Tiller’s aggregates and asphalt operations are
reported as part of the East Group.
Aggregates
Second-quarter organic aggregates shipments and
pricing increased 1.5 percent and 3.4 percent, respectively. Total
aggregates shipments and pricing increased 3.3 percent and 2.9
percent, respectively.
By segment:
- East Group total shipments
increased 7.0 percent reflecting strong construction activity in
the Carolinas, Georgia, Florida and Maryland across all three
primary end-use markets and shipments from the recently acquired
Tiller operations. This growth more than offset weather-induced
project delays in the Midwest. Pricing increased 3.6 percent,
reflecting favorable geographic mix.
- West Group shipments decreased 3.6
percent, as significant rainfall in Texas and Colorado hindered
robust construction activity. Pricing increased 0.7 percent,
reflecting a lower percentage of higher-priced commercial
rail-shipped volumes. On a mix-adjusted basis, West Group pricing
increased 2.4 percent.
Second-quarter aggregates product gross margin
decreased 150 basis points to 34.0 percent, driven by higher diesel
costs and a $6.1 million increase in cost of revenues from the
impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting. Excluding the impact of
acquisition accounting, adjusted aggregates product gross margin
was 34.8 percent.
Cement
Cement shipments decreased 1.9 percent, despite
robust demand and construction activity throughout the Texas
Triangle, resulting from extreme precipitation from late April
through mid-June. Pricing improved 6.8 percent, or 4.2 percent on a
mix-adjusted basis, following annual price increases that went into
effect on April 1, 2021.
Cement product gross margin declined 870 basis
points to 31.0 percent, driven by the timing of planned outages at
the Company’s Hunter plant as well as higher energy and raw
materials costs that more than offset pricing gains.
Downstream businesses
Ready mixed concrete shipments increased 8.2
percent, or 2.3 percent organically, as incremental volume from
large projects and operations acquired in August 2020 more than
offset weather headwinds. Pricing increased 1.2 percent, reflecting
geographic mix from a lower percentage of higher-priced Colorado
shipments. Product gross margin decreased 350 basis points to 7.1
percent, driven primarily by higher raw material and diesel
costs.
Asphalt shipments increased 67.6 percent as
incremental volume from the acquired Tiller operations more than
offset weather-related shipment declines in Colorado. Additionally,
pricing increased 4.9 percent. Asphalt and paving products and
services gross margin improved 80 basis points, driven in part by
the Tiller business.
Magnesia Specialties Business
Magnesia Specialties second-quarter product
revenues increased 43.2 percent to $70.0 million versus a
COVID-19-challenged prior-year quarter. Higher revenues, combined
with disciplined cost control, resulted in product gross margin of
39.9 percent, a 260-basis-point improvement.
Consolidated
Second-quarter 2021 other operating income, net,
included a $12.3 million nonrecurring gain on the sale of
property.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities for the
six months ended June 30, 2021 was $441.2 million compared with
$373.2 million for the prior-year period.
Cash paid for property, plant and equipment
additions for the six months ended June 30, 2021 was $213.0
million. For the full-year, capital expenditures are expected to
range from $450 million to $500 million.
Through dividend payments and share repurchases,
the Company returned $71.8 million to shareholders in the first six
months of 2021 and $1.9 billion since announcing a 20 million share
repurchase authorization in February 2015.
The Company had $70.3 million of cash, cash
equivalents and restricted cash on hand and $857.4 million of
unused borrowing capacity on its existing credit facilities as of
June 30, 2021.
In July 2021, the Company issued $2.5 billion of
debt in anticipation of closing the Lehigh West Region acquisition
in the second half of 2021. The acquisition remains subject to
customary closing conditions. The newly-issued debt reflects a
weighted-average interest rate of 2.2 percent.
Full-Year Outlook
Martin Marietta remains confident that favorable
pricing dynamics will continue, supported by the Company’s
locally-driven pricing strategy. Additionally, the Company
anticipates single-family housing growth, expanded infrastructure
investment and notable heavy industrial projects of scale will
drive increased shipment levels. Martin Marietta expects these
demand drivers, combined with the ancillary construction necessary
for housing community buildouts and the potential for increased
infrastructure investment from a comprehensive federal surface
transportation package, to result in sustained, multi-year growth
in product demand.
The Company has updated its full-year 2021
guidance to reflect recent trends and the contribution of the
Tiller acquisition. This guidance excludes any benefit from
additional fiscal stimulus, relief funds beyond those already
enacted or a potential successor federal surface transportation
bill.
|
2021 GUIDANCE |
($ in millions, except per ton) |
Low * |
|
High * |
Consolidated |
|
|
|
|
|
|
|
Products and services revenues
1 |
$ |
4,705 |
|
|
$ |
4,850 |
|
Gross profit |
$ |
1,310 |
|
|
$ |
1,380 |
|
Adjusted gross profit 2 |
$ |
1,325 |
|
|
$ |
1,395 |
|
Selling, general and
administrative expenses (SG&A) |
$ |
330 |
|
|
$ |
335 |
|
Interest expense |
$ |
140 |
|
|
$ |
145 |
|
Estimated tax rate (excluding
discrete events) |
|
20 |
% |
|
|
22 |
% |
Net earnings attributable to
Martin Marietta |
$ |
675 |
|
|
$ |
750 |
|
Adjusted EBITDA 3 |
$ |
1,465 |
|
|
$ |
1,535 |
|
Capital
expenditures |
$ |
450 |
|
|
$ |
500 |
|
|
|
|
|
|
|
|
|
Building Materials
Business |
|
|
|
|
|
|
|
Aggregates |
|
|
|
|
|
|
|
Organic volume % growth 4 |
|
1.0 |
% |
|
|
3.0 |
% |
Total volume % growth 5 |
|
3.0 |
% |
|
|
5.0 |
% |
Organic average selling price per ton (ASP) % growth 6 |
|
3.0 |
% |
|
|
5.0 |
% |
Total ASP growth 6 |
|
2.0 |
% |
|
|
4.0 |
% |
Products and services revenues |
$ |
2,930 |
|
|
$ |
3,000 |
|
Gross profit |
$ |
900 |
|
|
$ |
940 |
|
Adjusted gross profit 2 |
$ |
910 |
|
|
$ |
950 |
|
|
|
|
|
|
|
|
|
Cement |
|
|
|
|
|
|
|
Products and services revenues |
$ |
465 |
|
|
$ |
495 |
|
Gross profit |
$ |
160 |
|
|
$ |
170 |
|
|
|
|
|
|
|
|
|
Ready Mixed Concrete and
Asphalt and Paving |
|
|
|
|
|
|
|
Products and services revenues |
$ |
1,425 |
|
|
$ |
1,470 |
|
Gross profit |
$ |
150 |
|
|
$ |
165 |
|
Adjusted gross profit 2 |
$ |
155 |
|
|
$ |
170 |
|
|
|
|
|
|
|
|
|
Magnesia Specialties
Business |
|
|
|
|
|
|
|
Products and services revenues |
$ |
250 |
|
|
$ |
260 |
|
Gross profit |
$ |
100 |
|
|
$ |
105 |
|
* Guidance range represents the low end and high end of the
respective line items provided above.
1 |
Consolidated products and services revenues exclude $365 million to
$375 million related to estimated interproduct sales and exclude
freight revenues. |
2 |
Adjusted gross profit is a non-GAAP financial measure and, in each
case, excludes an increase in cost of revenues from the impact of
selling acquired inventory after its markup to fair value as part
of acquisition accounting. |
3 |
Adjusted EBITDA is a non-GAAP financial measure. See Appendix to
this earnings release for a reconciliation to net earnings
attributable to Martin Marietta. |
4 |
Organic volume % growth range is for organic aggregates shipments,
inclusive of internal tons, and is in comparison with organic 2020
shipments of 185.7 million tons. |
5 |
Total volume % growth range is for total aggregates shipments,
inclusive of internal tons, and is in comparison with total 2020
shipments of 186.5 million tons. |
6 |
ASP % growth range is in comparison with 2020 ASP of $14.77 per
ton. |
|
|
Non-GAAP Financial Information
This earnings release contains financial
measures that have not been prepared in accordance with generally
accepted accounting principles in the United States (GAAP).
Reconciliations of non-GAAP financial measures to the closest GAAP
measures are included in the accompanying Appendix to this earnings
release. Management believes these non-GAAP measures are commonly
used financial measures for investors to evaluate the Company’s
operating performance and, when read in conjunction with the
Company’s consolidated financial statements, present a useful tool
to evaluate the Company’s ongoing operations, performance from
period to period and anticipated performance. In addition, these
are some of the factors the Company uses in internal evaluations of
the overall performance of its businesses. Management acknowledges
that there are many items that impact a company’s reported results
and the adjustments reflected in these non-GAAP measures are not
intended to present all items that may have impacted these results.
In addition, these non-GAAP measures are not necessarily comparable
to similarly titled measures used by other companies.
Conference Call Information
The Company will discuss its second-quarter 2021
earnings results on a conference call and an online webcast today
(July 29, 2021). The live broadcast of the Martin Marietta
conference call will begin at 11:00 a.m. Eastern Time. For those
investors without online web access, the conference call may also
be accessed by calling (970) 315-0423, confirmation number 6678376.
An online replay will be available approximately two hours
following the conclusion of the live broadcast. A link to these
events will be available at the Company’s website. Additionally,
the Company has posted Q2 2021 Supplemental Information on the
Investors section of its website.
About Martin Marietta
Martin Marietta, a member of the S&P 500
Index, is an American-based company and a leading supplier of
building materials, including aggregates, cement, ready mixed
concrete and asphalt. Through a network of operations spanning 26
states, Canada and The Bahamas, dedicated Martin Marietta teams
supply the resources necessary for building the solid foundations
on which our communities thrive. Martin Marietta’s Magnesia
Specialties business provides a full range of magnesium oxide,
magnesium hydroxide and dolomitic lime products. For more
information, visit www.martinmarietta.com or
www.magnesiaspecialties.com.
Investor Contact:
Suzanne Osberg Vice President,
Investor Relations (919)
783-4691Suzanne.Osberg@martinmarietta.com
MLM-E.
If you are interested in Martin Marietta stock,
management recommends that, at a minimum, you read the Company’s
current annual report and Forms 10-K, 10-Q and 8-K reports to the
Securities and Exchange Commission (SEC) over the past year. The
Company’s recent proxy statement for the annual meeting of
shareholders also contains important information. These and other
materials that have been filed with the SEC are accessible through
the Company’s website at www.martinmarietta.com and are also
available at the SEC’s website at www.sec.gov. You may also write
or call the Company’s Corporate Secretary, who will provide copies
of such reports.
Investors are cautioned that all statements in
this release that relate to the future involve risks and
uncertainties, and are based on assumptions that the Company
believes in good faith are reasonable but which may be materially
different from actual results. These statements, which are
forward-looking statements under the Private Securities Litigation
Reform Act of 1995, give the investor the Company’s expectations or
forecasts of future events. You can identify these statements by
the fact that they do not relate only to historical or current
facts. They may use words such as “guidance”, “anticipate”,
“expect”, “should”, “believe”, “will”, and other words of similar
meaning in connection with future events or future operating or
financial performance. Any or all of our forward-looking statements
here and in other publications may turn out to be wrong.
Second-quarter results and trends described in
this release may not necessarily be indicative of the Company’s
future performance. The Company’s outlook is subject to various
risks and uncertainties, and is based on assumptions that the
Company believes in good faith are reasonable but which may be
materially different from actual results. Factors that the Company
currently believes could cause actual results to differ materially
from the forward-looking statements in this release (including the
outlook) include, but are not limited to: the ability of the
Company to face challenges, including those posed by the COVID-19
pandemic and implementation of any such related response plans; the
fluctuations in COVID-19 cases in the United States and the extent
that geography of outbreak primarily matches the regions in which
the Company’s Building Materials business principally operates; the
resiliency and potential declines of the Company’s various
construction end-use markets; the potential negative impact of the
COVID-19 pandemic on the Company’s ability to continue supplying
heavy-side building materials and related services at normal levels
or at all in the Company’s key regions; the duration, impact and
severity of the impacts of the COVID-19 pandemic on the Company,
including the markets in which we do business, our suppliers,
customers or other business partners as well as on our employees;
the economic impact of government responses to the pandemic; the
performance of the United States economy, including the impact on
the economy of the COVID-19 pandemic and governmental orders
restricting activities imposed to prevent further outbreak of
COVID-19; shipment declines resulting from economic events beyond
the Company’s control; a widespread decline in aggregates pricing,
including a decline in aggregates shipment volume negatively
affecting aggregates price; the history of both cement and ready
mixed concrete being subject to significant changes in supply,
demand and price fluctuations; the termination, capping and/or
reduction or suspension of the federal and/or state gasoline
tax(es) or other revenue related to public construction; the level
and timing of federal, state or local transportation or
infrastructure or public projects funding, most particularly in
Texas, Colorado, North Carolina, Georgia, Florida, Iowa, Minnesota
and Maryland; the impact of governmental orders restricting
activities imposed to prevent further outbreak of COVID-19 on
travel, potentially reducing state fuel tax revenues used to fund
highway projects; the United States Congress’ inability to reach
agreement among themselves or with the Administration on policy
issues that impact the federal budget; the ability of states and/or
other entities to finance approved projects either with tax
revenues or alternative financing structures; levels of
construction spending in the markets the Company serves; a
reduction in defense spending and the subsequent impact on
construction activity on or near military bases; a decline in the
commercial component of the nonresidential construction market,
notably office and retail space, including a decline resulting from
economic distress related to the COVID-19 pandemic; a decline in
energy-related construction activity resulting from a sustained
period of low global oil prices or changes in oil production
patterns or capital spending, particularly in Texas and West
Virginia; increasing residential mortgage interest rates and other
factors that could result in a slowdown in residential
construction; unfavorable weather conditions, particularly Atlantic
Ocean and Gulf of Mexico hurricane activity, the late start to
spring or the early onset of winter and the impact of a drought or
excessive rainfall in the markets served by the Company, any of
which can significantly affect production schedules, volumes,
product and/or geographic mix and profitability; whether the
Company’s operations will continue to be treated as “essential”
operations under applicable government orders restricting business
activities imposed to prevent further outbreak of COVID-19 or, even
if so treated, whether site-specific health and safety concerns
might otherwise require certain of the Company’s operations to be
halted for some period of time; the volatility of fuel costs,
particularly diesel fuel, and the impact on the cost, or the
availability generally, of other consumables, namely steel,
explosives, tires and conveyor belts, and with respect to the
Company’s Magnesia Specialties business, natural gas; continued
increases in the cost of other repair and supply parts;
construction labor shortages and/or supply‐chain challenges;
unexpected equipment failures, unscheduled maintenance, industrial
accident or other prolonged and/or significant disruption to
production facilities; increasing governmental regulation,
including environmental laws; the failure of relevant government
agencies to implement expected regulatory reductions;
transportation availability or a sustained reduction in capital
investment by the railroads, notably the availability of railcars,
locomotive power and the condition of rail infrastructure to move
trains to supply the Company’s Texas, Colorado, Florida, Carolinas
and Gulf Coast markets, including the movement of essential
dolomitic lime for magnesia chemicals to the Company’s plant in
Manistee, Michigan and its customers; increased transportation
costs, including increases from higher or fluctuating
passed-through energy costs or fuel surcharges, and other costs to
comply with tightening regulations, as well as higher volumes of
rail and water shipments; availability of trucks and licensed
drivers for transport of the Company’s materials; availability and
cost of construction equipment in the United States; weakening in
the steel industry markets served by the Company’s dolomitic lime
products; trade disputes with one or more nations impacting the
U.S. economy, including the impact of tariffs on the steel
industry; unplanned changes in costs or realignment of customers
that introduce volatility to earnings, including that of the
Magnesia Specialties business that is running at capacity; proper
functioning of information technology and automated operating
systems to manage or support operations; inflation and its effect
on both production and interest costs; the concentration of
customers in construction markets and the increased risk of
potential losses on customer receivables; the impact of the level
of demand in the Company’s end-use markets, production levels and
management of production costs on the operating leverage and
therefore profitability of the Company; the possibility that the
expected synergies from acquisitions will not be realized or will
not be realized within the expected time period, including
achieving anticipated profitability to maintain compliance with the
Company’s leverage ratio debt covenant; changes in tax laws, the
interpretation of such laws and/or administrative practices that
would increase the Company’s tax rate; violation of the Company’s
debt covenant if price and/or volumes return to previous levels of
instability; downward pressure on the Company’s common stock price
and its impact on goodwill impairment evaluations; the possibility
of a reduction of the Company’s credit rating to non-investment
grade; and other risk factors listed from time to time found in the
Company’s filings with the SEC.
You should consider these forward-looking
statements in light of risk factors discussed in our Annual Report
on Form 10-K for the year ended December 31, 2020 and other
periodic filings made with the SEC. All of our forward-looking
statements should be considered in light of these factors. In
addition, other risks and uncertainties not presently known to us
or that we consider immaterial could affect the accuracy of our
forward-looking statements, or adversely affect or be material to
the Company. The Company assumes no obligation to update any such
forward-looking statements.
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Statements of Earnings |
(In millions, except per share data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Products and services revenues |
$ |
1,295.3 |
|
|
$ |
1,189.5 |
|
|
$ |
2,217.2 |
|
|
$ |
2,080.5 |
|
Freight revenues |
|
82.6 |
|
|
|
81.1 |
|
|
|
143.1 |
|
|
|
148.4 |
|
Total revenues |
|
1,377.9 |
|
|
|
1,270.6 |
|
|
|
2,360.3 |
|
|
|
2,228.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues - products
and services |
|
910.0 |
|
|
|
807.4 |
|
|
|
1,656.0 |
|
|
|
1,554.8 |
|
Cost of revenues -
freight |
|
82.8 |
|
|
|
82.7 |
|
|
|
144.5 |
|
|
|
151.2 |
|
Total cost of revenues |
|
992.8 |
|
|
|
890.1 |
|
|
|
1,800.5 |
|
|
|
1,706.0 |
|
Gross profit |
|
385.1 |
|
|
|
380.5 |
|
|
|
559.8 |
|
|
|
522.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling general &
administrative expenses |
|
82.4 |
|
|
|
71.2 |
|
|
|
162.2 |
|
|
|
149.9 |
|
Acquisition-related
expenses |
|
9.3 |
|
|
|
0.5 |
|
|
|
10.6 |
|
|
|
0.8 |
|
Other operating (income) and
expenses, net |
|
(14.1 |
) |
|
|
2.4 |
|
|
|
(19.8 |
) |
|
|
8.0 |
|
Earnings from operations |
|
307.5 |
|
|
|
306.4 |
|
|
|
406.8 |
|
|
|
364.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
28.1 |
|
|
|
31.2 |
|
|
|
55.6 |
|
|
|
61.0 |
|
Other nonoperating income,
net |
|
(8.7 |
) |
|
|
(3.8 |
) |
|
|
(18.2 |
) |
|
|
(1.9 |
) |
Earnings before income tax expense |
|
288.1 |
|
|
|
279.0 |
|
|
|
369.4 |
|
|
|
305.1 |
|
Income tax expense |
|
62.3 |
|
|
|
61.4 |
|
|
|
78.1 |
|
|
|
61.6 |
|
Consolidated net earnings |
|
225.8 |
|
|
|
217.6 |
|
|
|
291.3 |
|
|
|
243.5 |
|
Less: Net earnings
attributable to noncontrolling interests |
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
Net Earnings Attributable to
Martin Marietta Materials, Inc. |
$ |
225.8 |
|
|
$ |
217.6 |
|
|
$ |
291.1 |
|
|
$ |
243.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share
attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
3.62 |
|
|
$ |
3.49 |
|
|
$ |
4.66 |
|
|
$ |
3.91 |
|
Diluted |
$ |
3.61 |
|
|
$ |
3.49 |
|
|
$ |
4.65 |
|
|
$ |
3.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share |
$ |
0.57 |
|
|
$ |
0.55 |
|
|
$ |
1.14 |
|
|
$ |
1.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
62.4 |
|
|
|
62.3 |
|
|
|
62.4 |
|
|
|
62.3 |
|
Diluted |
|
62.5 |
|
|
|
62.3 |
|
|
|
62.5 |
|
|
|
62.4 |
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Financial Highlights |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
$ |
635.3 |
|
|
$ |
534.5 |
|
|
$ |
1,030.2 |
|
|
$ |
916.5 |
|
West Group |
|
666.8 |
|
|
|
682.5 |
|
|
|
1,183.4 |
|
|
|
1,193.1 |
|
Total Building Materials business |
|
1,302.1 |
|
|
|
1,217.0 |
|
|
|
2,213.6 |
|
|
|
2,109.6 |
|
Magnesia Specialties |
|
75.8 |
|
|
|
53.6 |
|
|
|
146.7 |
|
|
|
119.3 |
|
Total |
$ |
1,377.9 |
|
|
$ |
1,270.6 |
|
|
$ |
2,360.3 |
|
|
$ |
2,228.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
$ |
224.3 |
|
|
$ |
193.6 |
|
|
$ |
310.4 |
|
|
$ |
253.1 |
|
West Group |
|
133.3 |
|
|
|
165.5 |
|
|
|
195.2 |
|
|
|
224.1 |
|
Total Building Materials business |
|
357.6 |
|
|
|
359.1 |
|
|
|
505.6 |
|
|
|
477.2 |
|
Magnesia Specialties |
|
27.0 |
|
|
|
16.9 |
|
|
|
54.4 |
|
|
|
42.1 |
|
Corporate |
|
0.5 |
|
|
|
4.5 |
|
|
|
(0.2 |
) |
|
|
3.6 |
|
Total |
$ |
385.1 |
|
|
$ |
380.5 |
|
|
$ |
559.8 |
|
|
$ |
522.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
$ |
26.3 |
|
|
$ |
24.4 |
|
|
$ |
50.5 |
|
|
$ |
49.2 |
|
West Group |
|
33.6 |
|
|
|
32.7 |
|
|
|
66.9 |
|
|
|
66.0 |
|
Total Building Materials business |
|
59.9 |
|
|
|
57.1 |
|
|
|
117.4 |
|
|
|
115.2 |
|
Magnesia Specialties |
|
3.7 |
|
|
|
3.4 |
|
|
|
7.4 |
|
|
|
6.9 |
|
Corporate |
|
18.8 |
|
|
|
10.7 |
|
|
|
37.4 |
|
|
|
27.8 |
|
Total |
$ |
82.4 |
|
|
$ |
71.2 |
|
|
$ |
162.2 |
|
|
$ |
149.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
$ |
197.8 |
|
|
$ |
169.9 |
|
|
$ |
259.5 |
|
|
$ |
204.7 |
|
West Group |
|
101.8 |
|
|
|
133.2 |
|
|
|
133.6 |
|
|
|
155.9 |
|
Total Building Materials business |
|
299.6 |
|
|
|
303.1 |
|
|
|
393.1 |
|
|
|
360.6 |
|
Magnesia Specialties |
|
23.1 |
|
|
|
13.2 |
|
|
|
46.7 |
|
|
|
34.9 |
|
Corporate |
|
(15.2 |
) |
|
|
(9.9 |
) |
|
|
(33.0 |
) |
|
|
(31.3 |
) |
Total |
$ |
307.5 |
|
|
$ |
306.4 |
|
|
$ |
406.8 |
|
|
$ |
364.2 |
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Financial Highlights (Continued) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Amount |
|
% of Revenues |
|
Amount |
|
% of Revenues |
|
Amount |
|
% of Revenues |
|
Amount |
|
% of Revenues |
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
$ |
801.8 |
|
|
|
|
$ |
754.9 |
|
|
|
|
$ |
1,374.4 |
|
|
|
|
$ |
1,325.2 |
|
|
|
|
Cement |
|
116.5 |
|
|
|
|
|
109.5 |
|
|
|
|
|
226.1 |
|
|
|
|
|
216.1 |
|
|
|
|
Ready mixed concrete |
|
268.4 |
|
|
|
|
|
245.1 |
|
|
|
|
|
503.7 |
|
|
|
|
|
434.8 |
|
|
|
|
Asphalt and paving |
|
135.3 |
|
|
|
|
|
107.0 |
|
|
|
|
|
147.6 |
|
|
|
|
|
125.1 |
|
|
|
|
Less: Interproduct sales |
|
(96.7 |
) |
|
|
|
|
(75.9 |
) |
|
|
|
|
(169.8 |
) |
|
|
|
|
(129.5 |
) |
|
|
|
Products and services |
|
1,225.3 |
|
|
|
|
|
1,140.6 |
|
|
|
|
|
2,082.0 |
|
|
|
|
|
1,971.7 |
|
|
|
|
Freight |
|
76.8 |
|
|
|
|
|
76.4 |
|
|
|
|
|
131.6 |
|
|
|
|
|
137.9 |
|
|
|
|
Total Building Materials business |
|
1,302.1 |
|
|
|
|
|
1,217.0 |
|
|
|
|
|
2,213.6 |
|
|
|
|
|
2,109.6 |
|
|
|
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
70.0 |
|
|
|
|
|
48.9 |
|
|
|
|
|
135.2 |
|
|
|
|
|
108.8 |
|
|
|
|
Freight |
|
5.8 |
|
|
|
|
|
4.7 |
|
|
|
|
|
11.5 |
|
|
|
|
|
10.5 |
|
|
|
|
Total Magnesia Specialties |
|
75.8 |
|
|
|
|
|
53.6 |
|
|
|
|
|
146.7 |
|
|
|
|
|
119.3 |
|
|
|
|
Consolidated total
revenues |
$ |
1,377.9 |
|
|
|
|
$ |
1,270.6 |
|
|
|
|
$ |
2,360.3 |
|
|
|
|
$ |
2,228.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
$ |
273.0 |
|
|
34.0 |
% |
|
$ |
268.0 |
|
|
35.5 |
% |
|
$ |
394.7 |
|
|
28.7 |
% |
|
$ |
361.3 |
|
|
27.3 |
% |
Cement |
|
36.1 |
|
|
31.0 |
% |
|
|
43.4 |
|
|
39.7 |
% |
|
|
51.4 |
|
|
22.7 |
% |
|
|
70.7 |
|
|
32.7 |
% |
Ready mixed concrete |
|
19.1 |
|
|
7.1 |
% |
|
|
26.1 |
|
|
10.6 |
% |
|
|
38.6 |
|
|
7.7 |
% |
|
|
32.0 |
|
|
7.4 |
% |
Asphalt and paving |
|
28.7 |
|
|
21.2 |
% |
|
|
21.9 |
|
|
20.4 |
% |
|
|
20.4 |
|
|
13.9 |
% |
|
|
13.8 |
|
|
11.1 |
% |
Subtotal |
|
356.9 |
|
|
29.1 |
% |
|
|
359.4 |
|
|
31.5 |
% |
|
|
505.1 |
|
|
24.3 |
% |
|
|
477.8 |
|
|
24.2 |
% |
Freight |
|
0.7 |
|
|
NM |
|
|
(0.3 |
) |
|
NM |
|
|
0.5 |
|
|
NM |
|
|
(0.6 |
) |
|
NM |
Total Building Materials business |
|
357.6 |
|
|
27.5 |
% |
|
|
359.1 |
|
|
29.5 |
% |
|
|
505.6 |
|
|
22.8 |
% |
|
|
477.2 |
|
|
22.6 |
% |
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
27.9 |
|
|
39.9 |
% |
|
|
18.2 |
|
|
37.3 |
% |
|
|
56.3 |
|
|
41.7 |
% |
|
|
44.3 |
|
|
40.7 |
% |
Freight |
|
(0.9 |
) |
|
NM |
|
|
(1.3 |
) |
|
NM |
|
|
(1.9 |
) |
|
NM |
|
|
(2.2 |
) |
|
NM |
Total Magnesia Specialties |
|
27.0 |
|
|
35.6 |
% |
|
|
16.9 |
|
|
31.5 |
% |
|
|
54.4 |
|
|
37.1 |
% |
|
|
42.1 |
|
|
35.3 |
% |
Corporate |
|
0.5 |
|
|
NM |
|
|
4.5 |
|
|
NM |
|
|
(0.2 |
) |
|
NM |
|
|
3.6 |
|
|
NM |
Consolidated gross profit |
$ |
385.1 |
|
|
27.9 |
% |
|
$ |
380.5 |
|
|
29.9 |
% |
|
$ |
559.8 |
|
|
23.7 |
% |
|
$ |
522.9 |
|
|
23.5 |
% |
MARTIN MARIETTA MATERIALS, INC. |
Balance Sheet Data |
(In millions) |
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
2021 |
|
2020 |
|
(Unaudited) |
|
(Audited) |
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
53.1 |
|
|
$ |
207.3 |
|
Restricted cash |
|
17.2 |
|
|
|
97.1 |
|
Accounts receivable, net |
|
722.0 |
|
|
|
575.1 |
|
Inventories, net |
|
729.1 |
|
|
|
709.0 |
|
Other current assets |
|
94.9 |
|
|
|
79.8 |
|
Property, plant and equipment, net |
|
5,549.0 |
|
|
|
5,242.3 |
|
Intangible assets, net |
|
3,324.6 |
|
|
|
2,922.0 |
|
Operating lease right-of-use assets, net |
|
434.3 |
|
|
|
453.0 |
|
Other noncurrent assets |
|
298.9 |
|
|
|
295.2 |
|
Total assets |
$ |
11,223.1 |
|
|
$ |
10,580.8 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current maturities of long-term debt and short-term facilities |
$ |
240.1 |
|
|
$ |
— |
|
Current liabilities |
|
517.9 |
|
|
|
499.3 |
|
Long-term debt (excluding current maturities) |
|
2,627.2 |
|
|
|
2,625.8 |
|
Other noncurrent liabilities |
|
1,709.7 |
|
|
|
1,562.4 |
|
Total equity |
|
6,128.2 |
|
|
|
5,893.3 |
|
Total liabilities and equity |
$ |
11,223.1 |
|
|
$ |
10,580.8 |
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Statements of Cash Flows |
(In millions) |
|
Six Months Ended |
|
June 30, |
|
2021 |
|
2020 |
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
Consolidated net earnings |
$ |
291.3 |
|
|
$ |
243.5 |
|
Adjustments to reconcile consolidated net earnings to net cash
provided by operating activities: |
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
206.5 |
|
|
|
193.4 |
|
Stock-based compensation expense |
|
20.8 |
|
|
|
19.7 |
|
Gains on divestitures and sales of assets |
|
(19.2 |
) |
|
|
(3.1 |
) |
Deferred income taxes, net |
|
3.4 |
|
|
|
6.6 |
|
Other items, net |
|
(7.3 |
) |
|
|
1.2 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
Accounts receivable, net |
|
(137.8 |
) |
|
|
(117.4 |
) |
Inventories, net |
|
36.9 |
|
|
|
(21.7 |
) |
Accounts payable |
|
54.7 |
|
|
|
(0.5 |
) |
Other assets and liabilities, net |
|
(8.1 |
) |
|
|
51.5 |
|
Net Cash Provided by Operating
Activities |
|
441.2 |
|
|
|
373.2 |
|
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities: |
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
(213.0 |
) |
|
|
(175.7 |
) |
Acquisitions, net of cash acquired |
|
(653.2 |
) |
|
|
(2.3 |
) |
Proceeds from divestitures and sales of assets |
|
31.9 |
|
|
|
17.9 |
|
Investments in life insurance contracts, net |
|
11.2 |
|
|
|
(6.2 |
) |
Other investing activities, net |
|
— |
|
|
|
(4.5 |
) |
Net Cash Used for Investing
Activities |
|
(823.1 |
) |
|
|
(170.8 |
) |
|
|
|
|
|
|
|
|
Cash Flows from Financing
Activities: |
|
|
|
|
|
|
|
Borrowings of long-term debt |
|
400.0 |
|
|
|
618.0 |
|
Repayments of long-term debt |
|
(160.0 |
) |
|
|
(637.0 |
) |
Payments on finance lease obligations |
|
(4.3 |
) |
|
|
(1.6 |
) |
Debt issuance costs |
|
(0.3 |
) |
|
|
(1.7 |
) |
Distributions to owners of noncontrolling interests |
|
(0.5 |
) |
|
|
— |
|
Dividends paid |
|
(71.8 |
) |
|
|
(69.4 |
) |
Repurchases of common stock |
|
— |
|
|
|
(50.0 |
) |
Proceeds from exercise of stock options |
|
0.8 |
|
|
|
1.3 |
|
Shares withheld for employees' income tax obligations |
|
(16.1 |
) |
|
|
(12.9 |
) |
Net Cash Provided by (Used
for) Financing Activities |
|
147.8 |
|
|
|
(153.3 |
) |
|
|
|
|
|
|
|
|
Net (Decrease) Increase in
Cash, Cash Equivalents and Restricted Cash |
|
(234.1 |
) |
|
|
49.1 |
|
Cash, Cash Equivalents and
Restricted Cash, beginning of period |
|
304.4 |
|
|
|
21.0 |
|
Cash, Cash Equivalents and
Restricted Cash, end of period |
$ |
70.3 |
|
|
$ |
70.1 |
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Operational Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2021 |
|
June 30, 2021 |
|
Volume |
|
Pricing |
|
Volume |
|
Pricing |
Volume/Pricing
Variance (1) |
|
|
|
|
|
|
|
|
|
|
|
East Group |
7.0 |
% |
|
3.6 |
% |
|
4.2 |
% |
|
3.6 |
% |
West Group |
(3.6 |
%) |
|
0.7 |
% |
|
(5.5 |
%) |
|
1.3 |
% |
Total aggregates (2) |
3.3 |
% |
|
2.9 |
% |
|
0.6 |
% |
|
3.1 |
% |
Organic aggregates |
1.5 |
% |
|
3.4 |
% |
|
(0.4 |
%) |
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
Shipments
(tons in millions) |
2021 |
|
2020 |
|
2021 |
|
2020 |
East Group |
|
35.4 |
|
|
|
33.0 |
|
|
|
58.1 |
|
|
|
55.7 |
|
West Group |
|
17.5 |
|
|
|
18.2 |
|
|
|
31.9 |
|
|
|
33.8 |
|
Total aggregates (2) |
|
52.9 |
|
|
|
51.2 |
|
|
|
90.0 |
|
|
|
89.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Volume/pricing variances reflect the percentage increase from the
comparable period in the prior year. |
(2) Total
aggregates includes acquisitions from the date of acquisition and
divestitures through the date of disposal. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Shipments (in
millions) |
|
|
|
|
|
|
|
|
|
|
|
Aggregates tons - external
customers |
|
48.8 |
|
|
|
47.9 |
|
|
|
83.3 |
|
|
|
83.9 |
|
Internal aggregates tons used
in other product lines |
|
4.1 |
|
|
|
3.3 |
|
|
|
6.7 |
|
|
|
5.6 |
|
Total aggregates tons |
|
52.9 |
|
|
|
51.2 |
|
|
|
90.0 |
|
|
|
89.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement tons - external
customers |
|
0.5 |
|
|
|
0.7 |
|
|
|
1.2 |
|
|
|
1.3 |
|
Internal cement tons used in
other product lines |
|
0.4 |
|
|
|
0.3 |
|
|
|
0.7 |
|
|
|
0.6 |
|
Total cement tons |
|
0.9 |
|
|
|
1.0 |
|
|
|
1.9 |
|
|
|
1.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready mixed concrete - cubic
yards |
|
2.3 |
|
|
|
2.2 |
|
|
|
4.4 |
|
|
|
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asphalt tons - external
customers |
|
1.2 |
|
|
|
0.2 |
|
|
|
1.3 |
|
|
|
0.3 |
|
Internal asphalt tons used in
road paving business |
|
0.6 |
|
|
|
0.9 |
|
|
|
0.6 |
|
|
|
1.0 |
|
Total asphalt tons |
|
1.8 |
|
|
|
1.1 |
|
|
|
1.9 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit sales
price by product line (including internal sales): |
|
|
|
|
|
|
|
|
|
|
|
Aggregates (per ton) |
$ |
15.07 |
|
|
$ |
14.66 |
|
|
$ |
15.17 |
|
|
$ |
14.72 |
|
Cement (per ton) |
$ |
122.11 |
|
|
$ |
114.34 |
|
|
$ |
118.80 |
|
|
$ |
114.06 |
|
Ready mixed concrete (per
cubic yard) |
$ |
114.27 |
|
|
$ |
112.89 |
|
|
$ |
113.25 |
|
|
$ |
113.53 |
|
Asphalt (per ton) |
$ |
48.83 |
|
|
$ |
46.54 |
|
|
$ |
48.85 |
|
|
$ |
46.38 |
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures (Dollars
in millions)
Earnings before interest; income taxes;
depreciation, depletion and amortization expense; the earnings/loss
from nonconsolidated equity affiliates; acquisition-related
expenses; and the impact of selling acquired inventory after its
markup to fair value as part of acquisition accounting (Adjusted
EBITDA) is an indicator used by the Company and investors to
evaluate the Company’s operating performance from period to period.
Adjusted EBITDA is not defined by generally accepted accounting
principles and, as such, should not be construed as an alternative
to earnings from operations, net earnings or operating cash flow.
For further information on Adjusted EBITDA, refer to the Company’s
website at www.martinmarietta.com.
A
Reconciliation of Net Earnings Attributable to Martin Marietta to
Adjusted EBITDA is as follows: |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net earnings attributable to Martin Marietta |
$ |
225.8 |
|
|
$ |
217.6 |
|
|
$ |
291.1 |
|
|
$ |
243.5 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
28.2 |
|
|
|
31.0 |
|
|
|
55.5 |
|
|
|
60.7 |
|
Income tax expense for controlling interests |
|
62.2 |
|
|
|
61.4 |
|
|
|
78.1 |
|
|
|
61.5 |
|
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense and noncash earnings/loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from nonconsolidated equity affiliates |
|
106.1 |
|
|
|
97.0 |
|
|
|
201.9 |
|
|
|
190.3 |
|
Acquisition-related expenses |
|
9.3 |
|
|
|
— |
|
|
|
10.6 |
|
|
|
— |
|
Impact of selling acquired inventory after |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
its markup to fair value as part of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition accounting |
|
7.6 |
|
|
|
— |
|
|
|
7.6 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
439.2 |
|
|
$ |
407.0 |
|
|
$ |
644.8 |
|
|
$ |
556.0 |
|
A Reconciliation of the GAAP Measure to
2021 Adjusted EBITDA Guidance Range is as follows:
|
Low Point of Range |
|
High Point of Range |
Net earnings attributable to Martin Marietta |
$ |
675.0 |
|
$ |
750.0 |
Add back: |
|
|
|
Interest expense |
|
145.0 |
|
|
140.0 |
Taxes on income |
|
187.0 |
|
|
187.0 |
Depreciation, depletion and amortization expense and noncash |
|
|
|
|
|
earnings/loss from nonconsolidated equity affiliates |
|
425.0 |
|
|
425.0 |
Acquisition-related expenses |
|
18.0 |
|
|
18.0 |
Impact of selling acquired inventory after its markup to |
|
|
|
|
|
fair value as part of acquisition accounting |
|
15.0 |
|
|
15.0 |
Adjusted EBITDA |
$ |
1,465.0 |
|
$ |
1,535.0 |
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)(Dollars in millions)
Adjusted gross profit and adjusted gross margin
represent non-GAAP financial measures and exclude the impact of
selling acquired inventory after its markup to fair value as part
of acquisition accounting. Management presents these measures for
investors and analysts to evaluate and forecast the Company’s
results, as the impact of selling acquired inventory after its
markup to fair value as part of acquisition accounting is
nonrecurring.
A
Reconciliation of Gross Profit in Accordance with GAAP to Adjusted
Gross Profit is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Consolidated gross profit in
accordance with GAAP |
$ |
385.1 |
|
$ |
380.5 |
|
$ |
559.8 |
|
$ |
522.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair
value as part of acquisition accounting |
|
7.6 |
|
|
— |
|
|
7.6 |
|
|
— |
Adjusted consolidated gross
profit |
$ |
392.7 |
|
$ |
380.5 |
|
$ |
567.4 |
|
$ |
522.9 |
A
Reconciliation of Aggregates Product Gross Profit in Accordance
with GAAP to Adjusted Aggregates Product Gross Profit and Adjusted
Aggregates Product Gross Margin is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Aggregates product gross
profit in accordance with GAAP |
$ |
273.0 |
|
|
$ |
268.0 |
|
|
$ |
394.7 |
|
|
$ |
361.3 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
6.1 |
|
|
|
— |
|
|
|
6.1 |
|
|
|
— |
|
Adjusted aggregates product
gross profit |
$ |
279.1 |
|
|
$ |
268.0 |
|
|
$ |
400.8 |
|
|
$ |
361.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates products and
services revenues |
$ |
801.8 |
|
|
$ |
754.9 |
|
|
$ |
1,374.4 |
|
|
$ |
1,325.2 |
|
Adjusted aggregates product
gross margin |
|
34.8 |
% |
|
|
35.5 |
% |
|
|
29.2 |
% |
|
|
27.3 |
% |
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)(Dollars in millions, except per share)
Adjusted earnings from operations and adjusted
earnings per diluted share represent non-GAAP financial measures
and exclude acquisition-related expenses and the impact of selling
acquired inventory after its markup to fair value as part of
acquisition accounting. Management presents these measures for
investors and analysts to evaluate and forecast the Company’s
results, as the impact of acquisition-related expenses and selling
acquired inventory after its markup to fair value as part of
acquisition accounting are nonrecurring.
A
Reconciliation of Consolidated Earnings from Operations in
Accordance with GAAP to Adjusted Consolidated Earnings from
Operations is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Consolidated earnings from
operations in accordance with GAAP |
$ |
307.5 |
|
$ |
306.4 |
|
$ |
406.8 |
|
$ |
364.2 |
Add back: |
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after |
|
|
|
|
|
|
|
|
|
|
|
its markup to fair value as part of |
|
|
|
|
|
|
|
|
|
|
|
acquisition accounting |
|
7.6 |
|
|
— |
|
|
7.6 |
|
|
— |
Acquisition-related expenses |
|
9.3 |
|
|
— |
|
|
10.6 |
|
|
— |
Adjusted consolidated earnings
from operations |
$ |
324.4 |
|
$ |
306.4 |
|
$ |
425.0 |
|
$ |
364.2 |
A
Reconciliation of Earnings Per Diluted Share in Accordance with
GAAP to Adjusted Earnings Per Diluted Share is as
follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Earnings per diluted share in
accordance with GAAP |
$ |
3.61 |
|
$ |
3.49 |
|
$ |
4.65 |
|
$ |
3.90 |
Add back: |
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share impact of |
|
|
|
|
|
|
|
|
|
|
|
acquisition-related expenses |
|
0.11 |
|
|
— |
|
|
0.13 |
|
|
— |
Earnings per diluted share impact of selling |
|
|
|
|
|
|
|
|
|
|
|
acquired inventory after its markup to fair |
|
|
|
|
|
|
|
|
|
|
|
value as part of acquisition accounting |
|
0.09 |
|
|
— |
|
|
0.09 |
|
|
— |
Adjusted earnings per diluted
share |
$ |
3.81 |
|
$ |
3.49 |
|
$ |
4.87 |
|
$ |
3.90 |
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)(Dollars in millions)
Reconciliations of GAAP Measures to 2021 Guidance Ranges are as
follows:
2021 Guidance - Consolidated Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
Low Point of Range |
|
High Point of Range |
Consolidated gross profit |
$ |
1,310.0 |
|
$ |
1,380.0 |
Add back: |
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
15.0 |
|
|
15.0 |
Adjusted consolidated gross
profit |
$ |
1,325.0 |
|
$ |
1,395.0 |
|
|
|
|
|
|
|
|
|
|
|
|
2021 Guidance -
Aggregates Product Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
Low Point of Range |
|
High Point of Range |
Aggregates product gross
profit |
$ |
900.0 |
|
$ |
940.0 |
Add back: |
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
10.0 |
|
|
10.0 |
Adjusted aggregates product
gross profit |
$ |
910.0 |
|
$ |
950.0 |
|
|
|
|
|
|
|
|
|
|
|
|
2021 Guidance - Ready
Mixed Concrete and Asphalt and Paving Products and Services Gross
Profit |
|
|
|
|
|
|
|
|
|
|
|
|
Low Point of Range |
|
High Point of Range |
Ready mixed concrete and
asphalt and paving |
|
|
|
|
|
products and services gross profit |
$ |
150.0 |
|
$ |
165.0 |
Add back: |
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
5.0 |
|
|
5.0 |
Adjusted ready mixed concrete
and asphalt and paving |
|
|
|
|
|
products and services gross profit |
$ |
155.0 |
|
$ |
170.0 |
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
Mix-adjusted average selling price (mix-adjusted
ASP) is a non-GAAP measure that excludes the impact of
period-over-period product, geographic and other mix on the average
selling price. Mix-adjusted ASP is calculated by comparing
current-period shipments to like-for-like shipments in the
comparable prior period. Management uses this metric to evaluate
the realization of pricing increases and believes this information
is useful to investors. The following reconciles reported average
selling price to mix-adjusted ASP and corresponding variances.
|
Three Months Ended |
|
June 30, |
|
2021 |
|
2020 |
West Group - Aggregates: |
|
|
|
|
|
|
|
Reported average selling
price |
$ |
14.03 |
|
|
$ |
13.93 |
|
Adjustment for unfavorable
impact of product, geographic and other mix |
|
0.24 |
|
|
|
|
|
Mix-adjusted average selling
price |
$ |
14.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
0.7 |
% |
|
|
|
|
Mix-adjusted ASP variance |
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cement: |
|
|
|
|
|
|
|
Reported average selling
price |
$ |
122.11 |
|
|
$ |
114.34 |
|
Adjustment for favorable
impact of product, geographic and other mix |
|
(2.97 |
) |
|
|
|
|
Mix-adjusted average selling
price |
$ |
119.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
6.8 |
% |
|
|
|
|
Mix-adjusted ASP variance |
|
4.2 |
% |
|
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Martin Marietta Materials (NYSE:MLM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Martin Marietta Materials (NYSE:MLM)
Historical Stock Chart
From Apr 2023 to Apr 2024