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 third quarter
ended September 30, 2021.
Third-Quarter Highlights
|
|
Quarter Ended September 30, |
|
(In
millions, except per share) |
|
2021 |
|
|
2020 |
|
Products and services revenues 1 |
|
$ |
1,462.7 |
|
|
$ |
1,240.7 |
|
Building Materials business |
|
$ |
1,390.8 |
|
|
$ |
1,185.5 |
|
Magnesia Specialties |
|
$ |
71.9 |
|
|
$ |
55.2 |
|
Total revenues 2 |
|
$ |
1,557.3 |
|
|
$ |
1,321.4 |
|
Gross profit |
|
$ |
441.9 |
|
|
$ |
404.5 |
|
Adjusted gross profit 3 |
|
$ |
450.0 |
|
|
$ |
404.5 |
|
Earnings from operations
7 |
|
$ |
356.9 |
|
|
$ |
400.6 |
|
Adjusted earnings from
operations 4 |
|
$ |
372.4 |
|
|
$ |
400.6 |
|
Net earnings attributable to
Martin Marietta 7 |
|
$ |
254.6 |
|
|
$ |
294.4 |
|
Adjusted EBITDA 5, 7 |
|
$ |
490.0 |
|
|
$ |
501.7 |
|
Earnings per diluted share
7 |
|
$ |
4.07 |
|
|
$ |
4.71 |
|
Adjusted earnings per diluted
share 6 |
|
$ |
4.25 |
|
|
$ |
4.71 |
|
- 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.
- Total revenues
include the sales of products and services to customers (net of any
discounts or allowances) and freight revenues.
- 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).
- 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.
- 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.
- 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.
- 2020 earnings
from operations, net earnings attributable to Martin Marietta,
Adjusted EBITDA and earnings per diluted share included $69.9
million, $54.1 million, $69.9 million and $0.87 per diluted share,
respectively, of gains on surplus land sales and divested assets.
These gains were nonrecurring in nature.
Ward Nye, Chairman and CEO of Martin Marietta,
stated, “Our third-quarter results demonstrate Martin Marietta’s
industry-leading performance and disciplined execution of our
proven Strategic Operating Analysis and Review (SOAR) plan. We
established new quarterly records for revenues, gross profit,
Adjusted EBITDA (excluding the $69.9 million of nonrecurring gains
in third-quarter 2020) and earnings per diluted share (excluding
the $0.87 per share of nonrecurring gains in third-quarter 2020).
These strong quarterly results were primarily driven by organic
shipment growth, pricing gains and value-enhancing acquisitions,
which more than offset higher energy-related costs. Importantly,
the year’s first nine months concluded with the best safety
performance in our history.
“Martin Marietta is well positioned to
capitalize on the secular demand trends across our geographic
footprint, including single-family housing strength, expanded
federal- and state-level infrastructure investment and light
nonresidential recovery. These trends should support growing
construction activity and contribute to attractive pricing
acceleration for heavy-side building materials. Our overall
confidence is augmented by our newly completed acquisition of
Lehigh Hanson, Inc.’s West Region business (“Lehigh West Region”),
which further enhanced our pipeline of growth opportunities and
deep bench of talent at Martin Marietta. This SOAR-aligned,
strategic transaction provides attractive new growth platforms for
Martin Marietta’s continued geographic expansion, especially in key
California and Arizona regions, where we are poised to benefit from
favorable market dynamics and accelerating public and private
construction activity.”
Mr. Nye concluded, “Underpinned by our
record-setting safety, operational and financial performance, we
are highly confident about Martin Marietta’s future. Our focus
remains on building the safest, best performing and most durable
aggregates-led public company. With our steadfast commitment to
employee health and safety, disciplined pricing, operational
excellence, sustainable business practices and strategy execution,
we are confident Martin Marietta will continue delivering
attractive growth and superior value for all of our stakeholders as
we SOAR to a Sustainable Future.”
Third-Quarter Operating and Financial
Results
(All comparisons are versus the prior-year third
quarter unless noted otherwise)
Building Materials Business
The Building Materials business achieved record
products and services revenues of $1,390.8 million, a 17.3 percent
increase, and record product gross profit of $413.1 million, a 7.9
percent increase.
The Building Materials business experienced
growing product demand across its three primary end-use markets.
However, contractor capacity constraints, including transportation
availability and labor shortages, combined with wet weather in
several markets, muted third-quarter shipment growth.
Aggregates
Third-quarter aggregates shipments, including
shipments from acquired operations, grew 10.2 percent. Acquired
operations have selling prices below the Company’s average, which
limited pricing growth to 1.2 percent.
On an organic basis, aggregates shipments
increased 6.0 percent while pricing increased 2.2 percent,
reflecting a higher percentage of lower-priced base stone shipments
and opportunistic sales of low-priced excess fill material.
By segment:
- East Group total shipments
increased 10.1 percent and benefitted from robust construction
activity across all three primary end-use markets and shipments
from the recently acquired Minnesota-based operations. Pricing
increased 0.4 percent, inclusive of acquisitions. On a mix-adjusted
basis, East Group pricing grew 2.5 percent.
- West Group shipments increased 10.4
percent from strong underlying demand in both Texas and Colorado,
improving energy-sector activity and shipments from a recent
bolt-on acquisition in Texas. Pricing increased 2.8 percent.
Third-quarter aggregates product gross margin
decreased 220 basis points to 34.2 percent, driven primarily by
$11.7 million in higher diesel costs and a $5.9 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 34.9 percent.
Cement
Cement shipments increased 4.1 percent,
benefitting from robust construction activity throughout the Texas
Triangle and improving demand for specialty oil-well cement
products. Pricing grew 8.4 percent, or 6.6 percent on a
mix-adjusted basis, reflecting periodic price increases.
Cement product gross margin declined 250 basis
points to 37.7 percent as higher energy and raw materials costs
outpaced shipment and pricing gains.
Downstream businesses
Ready mixed concrete shipments increased 23.2
percent, or 20.5 percent organically, reflecting the healthy Texas
and Colorado demand environment. Pricing increased 2.3 percent
following the implementation of mid-year price increases in Texas.
Product gross margin expanded modestly to 9.8 percent, as volume
and pricing growth overcame higher raw material and diesel
costs.
Total asphalt shipments increased 115.9 percent
as incremental volume from the acquired Minnesota operations more
than offset Colorado shipment declines resulting from late-summer
liquid asphalt shortages that have since been resolved. Asphalt
pricing decreased 1.7 percent, reflecting a higher percentage of
lower-priced shipments from the Company’s newly-acquired Minnesota
business. Organic pricing increased 1.2 percent. Asphalt and paving
products and services gross margin decreased 530 basis points,
driven by higher raw material costs and operational disruptions
from the Colorado liquid asphalt shortage.
Magnesia Specialties Business
Magnesia Specialties product revenues increased
30.3 percent to a record $71.9 million, driven by improving
domestic steel production and global demand for magnesia chemicals
products. Product gross margin improved 100 basis points to 39.0
percent as revenue growth more than offset higher costs for energy
and contract services.
Consolidated
For comparative purposes, third-quarter 2020
other operating income, net, included $69.9 million of gains on
surplus land sales and divested assets. These gains, which were
nonrecurring in nature, contributed $0.87 per share to
third-quarter 2020 earnings per diluted share.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities for the
nine months ended September 30, 2021 was $780.3 million compared
with $684.0 million for the prior-year period.
Cash paid for property, plant and equipment
additions for the nine months ended September 30, 2021 was $321.3
million. For the full-year, capital expenditures are expected to
range from $475 million to $525 million.
In July 2021, the Company issued $2.5 billion of
debt to fund the Lehigh West Region acquisition, which closed on
October 1, 2021, and other general corporate purposes. The
newly-issued debt reflects a weighted-average interest rate of 2.2
percent.
The Company extended the maturity of its $400
million trade receivable securitization facility by one year to
September 21, 2022.
Through dividend payments and share repurchases,
the Company returned $109.7 million to shareholders in the first
nine months of 2021 and over $1.9 billion since announcing a 20
million share repurchase authorization in February 2015.
As of September 30, 2021, the Company had $2.4
billion of cash, cash equivalents and restricted cash on hand and
nearly $1.1 billion of unused borrowing capacity on its existing
credit facilities. On October 1, 2021, the Company completed its
acquisition of Lehigh West Region for $2.3 billion in cash.
Full-Year 2021 Guidance
Full-year 2021 guidance has been updated to
reflect the Company’s year-to-date performance, continuing
energy-related cost headwinds, and expected contributions from
acquisitions closed in the fourth quarter.
2021 GUIDANCE |
|
(Dollars in Millions) |
|
Low * |
|
|
High * |
|
Consolidated |
|
|
|
|
|
|
|
|
Products and services revenues
1 |
|
$ |
4,955 |
|
|
$ |
5,050 |
|
Gross profit 2 |
|
$ |
1,330 |
|
|
$ |
1,380 |
|
Adjusted gross profit 3 |
|
$ |
1,350 |
|
|
$ |
1,400 |
|
Selling, general and
administrative expenses (SG&A) |
|
$ |
340 |
|
|
$ |
345 |
|
Interest expense |
|
$ |
140 |
|
|
$ |
145 |
|
Estimated tax rate (excluding
discrete events) |
|
|
20 |
% |
|
|
22 |
% |
Net earnings attributable to
Martin Marietta 2 |
|
$ |
680 |
|
|
$ |
735 |
|
Adjusted EBITDA 4 |
|
$ |
1,500 |
|
|
$ |
1,550 |
|
Capital
expenditures |
|
$ |
475 |
|
|
$ |
525 |
|
|
|
|
|
|
|
|
|
|
Building Materials
Business |
|
|
|
|
|
|
|
|
Aggregates |
|
|
|
|
|
|
|
|
Organic volume % growth 5 |
|
|
1.0 |
% |
|
|
3.0 |
% |
Total volume % growth 6 |
|
|
4.5 |
% |
|
|
6.5 |
% |
Organic average selling price
per ton (ASP) % growth 7 |
|
|
2.5 |
% |
|
|
3.5 |
% |
Total ASP growth 7 |
|
|
2.0 |
% |
|
|
3.0 |
% |
Products and services
revenues |
|
$ |
2,985 |
|
|
$ |
3,015 |
|
Gross profit 2 |
|
$ |
905 |
|
|
$ |
930 |
|
Adjusted gross profit 3 |
|
$ |
920 |
|
|
$ |
945 |
|
|
|
|
|
|
|
|
|
|
Cement |
|
|
|
|
|
|
|
|
Products and services
revenues |
|
$ |
525 |
|
|
$ |
545 |
|
Gross profit 2 |
|
$ |
160 |
|
|
$ |
170 |
|
|
|
|
|
|
|
|
|
|
Ready Mixed Concrete and
Asphalt and Paving |
|
|
|
|
|
|
|
|
Products and services
revenues |
|
$ |
1,580 |
|
|
$ |
1,625 |
|
Gross profit 2 |
|
$ |
160 |
|
|
$ |
170 |
|
Adjusted gross profit 3 |
|
$ |
165 |
|
|
$ |
175 |
|
|
|
|
|
|
|
|
|
|
Magnesia Specialties
Business |
|
|
|
|
|
|
|
|
Products and services
revenues |
|
$ |
260 |
|
|
$ |
270 |
|
Gross
profit |
|
$ |
105 |
|
|
$ |
110 |
|
* Guidance range represents the low end and high end of the
respective line items provided above.
- Consolidated products and services
revenues exclude $395 million to $405 million related to estimated
interproduct sales and exclude freight revenues.
- Ranges do not include estimates for
the increase in cost of revenues from the impact of selling
acquired inventory after its markup to fair value as part of
acquisition accounting for the Lehigh West Region transaction.
- 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.
- Adjusted EBITDA is a non-GAAP
financial measure. See Appendix to this earnings release for a
reconciliation to net earnings attributable to Martin
Marietta.
- 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.
- 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.
- ASP % growth range is in comparison
with 2020 ASP of $14.77 per ton.
Preliminary View of 2022
The Company’s preliminary view of 2022
anticipates organic aggregates shipments to increase in the
low-to-mid-single-digits as third-party labor and logistics
challenges continue to impact an otherwise robust product demand
environment. Martin Marietta remains confident that favorable
pricing dynamics will continue, supported by the Company’s
locally-driven pricing strategy, and anticipates
mid-to-high-single-digit growth in organic aggregates pricing in
2022.
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 third-quarter 2021
earnings results on a conference call and an online webcast today
(November 2, 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 dialing (970) 315-0423, confirmation number 9967776.
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 Q3 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 30
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 the Company’s forward-looking
statements here and in other publications may turn out to be
wrong.
Third-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 it does business, its suppliers,
customers or other business partners as well as on its 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,
including acquisitions or divestitures, 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 Martin Marietta’s
Annual Report on Form 10-K for the year ended December 31, 2020,
Martin Marietta’s Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2021 and June 30, 2021, and other periodic filings
made with the SEC. All of the Company’s forward-looking statements
should be considered in light of these factors. In addition, other
risks and uncertainties not presently known to the Company or that
it considers immaterial could affect the accuracy of its
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
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(In Millions, Except Per Share Data) |
|
Products and services
revenues |
|
$ |
1,462.7 |
|
|
$ |
1,240.7 |
|
|
$ |
3,679.9 |
|
|
$ |
3,321.2 |
|
Freight revenues |
|
|
94.6 |
|
|
|
80.7 |
|
|
|
237.7 |
|
|
|
229.1 |
|
Total Revenues |
|
|
1,557.3 |
|
|
|
1,321.4 |
|
|
|
3,917.6 |
|
|
|
3,550.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues - products
and services |
|
|
1,021.0 |
|
|
|
836.1 |
|
|
|
2,676.9 |
|
|
|
2,390.9 |
|
Cost of revenues -
freight |
|
|
94.4 |
|
|
|
80.8 |
|
|
|
239.0 |
|
|
|
232.0 |
|
Total Cost of Revenues |
|
|
1,115.4 |
|
|
|
916.9 |
|
|
|
2,915.9 |
|
|
|
2,622.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
441.9 |
|
|
|
404.5 |
|
|
|
1,001.7 |
|
|
|
927.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general &
administrative expenses |
|
|
86.0 |
|
|
|
71.1 |
|
|
|
248.2 |
|
|
|
221.0 |
|
Acquisition-related
expenses |
|
|
7.4 |
|
|
|
0.4 |
|
|
|
18.0 |
|
|
|
1.2 |
|
Other operating income, net |
|
|
(8.4 |
) |
|
|
(67.6 |
) |
|
|
(28.2 |
) |
|
|
(59.6 |
) |
Earnings from Operations |
|
|
356.9 |
|
|
|
400.6 |
|
|
|
763.7 |
|
|
|
764.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
44.3 |
|
|
|
28.7 |
|
|
|
99.9 |
|
|
|
89.7 |
|
Other nonoperating income,
net |
|
|
(5.6 |
) |
|
|
(4.0 |
) |
|
|
(23.8 |
) |
|
|
(5.9 |
) |
Earnings before income tax expense |
|
|
318.2 |
|
|
|
375.9 |
|
|
|
687.6 |
|
|
|
681.0 |
|
Income tax expense |
|
|
63.6 |
|
|
|
81.5 |
|
|
|
141.7 |
|
|
|
143.0 |
|
Consolidated net earnings |
|
|
254.6 |
|
|
|
294.4 |
|
|
|
545.9 |
|
|
|
538.0 |
|
Less: Net earnings
attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
Net Earnings Attributable to
Martin Marietta Materials, Inc. |
|
$ |
254.6 |
|
|
$ |
294.4 |
|
|
$ |
545.7 |
|
|
$ |
538.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings Attributable to
Martin Marietta Materials, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic attributable to common shareholders |
|
$ |
4.08 |
|
|
$ |
4.72 |
|
|
$ |
8.74 |
|
|
$ |
8.63 |
|
Diluted attributable to common shareholders |
|
$ |
4.07 |
|
|
$ |
4.71 |
|
|
$ |
8.72 |
|
|
$ |
8.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average Common Shares
Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
62.4 |
|
|
|
62.3 |
|
|
|
62.4 |
|
|
|
62.3 |
|
Diluted |
|
|
62.6 |
|
|
|
62.4 |
|
|
|
62.6 |
|
|
|
62.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Per Common
Share |
|
$ |
0.61 |
|
|
$ |
0.57 |
|
|
$ |
1.75 |
|
|
$ |
1.67 |
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in Millions) |
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
684.1 |
|
|
$ |
549.3 |
|
|
$ |
1,714.4 |
|
|
$ |
1,465.9 |
|
West Group |
|
|
794.8 |
|
|
|
711.2 |
|
|
|
1,978.2 |
|
|
|
1,904.2 |
|
Total Building Materials business |
|
|
1,478.9 |
|
|
|
1,260.5 |
|
|
|
3,692.6 |
|
|
|
3,370.1 |
|
Magnesia Specialties |
|
|
78.4 |
|
|
|
60.9 |
|
|
|
225.0 |
|
|
|
180.2 |
|
Total |
|
$ |
1,557.3 |
|
|
$ |
1,321.4 |
|
|
$ |
3,917.6 |
|
|
$ |
3,550.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
231.6 |
|
|
$ |
206.3 |
|
|
$ |
542.1 |
|
|
$ |
459.5 |
|
West Group |
|
|
182.8 |
|
|
|
177.5 |
|
|
|
377.9 |
|
|
|
401.5 |
|
Total Building Materials business |
|
|
414.4 |
|
|
|
383.8 |
|
|
|
920.0 |
|
|
|
861.0 |
|
Magnesia Specialties |
|
|
27.0 |
|
|
|
20.0 |
|
|
|
81.4 |
|
|
|
62.1 |
|
Corporate |
|
|
0.5 |
|
|
|
0.7 |
|
|
|
0.3 |
|
|
|
4.3 |
|
Total |
|
$ |
441.9 |
|
|
$ |
404.5 |
|
|
$ |
1,001.7 |
|
|
$ |
927.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
26.5 |
|
|
$ |
24.9 |
|
|
$ |
77.0 |
|
|
$ |
74.0 |
|
West Group |
|
|
34.2 |
|
|
|
34.2 |
|
|
|
101.1 |
|
|
|
100.2 |
|
Total Building Materials business |
|
|
60.7 |
|
|
|
59.1 |
|
|
|
178.1 |
|
|
|
174.2 |
|
Magnesia Specialties |
|
|
3.8 |
|
|
|
3.6 |
|
|
|
11.1 |
|
|
|
10.4 |
|
Corporate |
|
|
21.5 |
|
|
|
8.4 |
|
|
|
59.0 |
|
|
|
36.4 |
|
Total |
|
$ |
86.0 |
|
|
$ |
71.1 |
|
|
$ |
248.2 |
|
|
$ |
221.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
205.8 |
|
|
$ |
181.4 |
|
|
$ |
465.3 |
|
|
$ |
386.1 |
|
West Group |
|
|
150.6 |
|
|
|
212.3 |
|
|
|
284.2 |
|
|
|
368.2 |
|
Total Building Materials business |
|
|
356.4 |
|
|
|
393.7 |
|
|
|
749.5 |
|
|
|
754.3 |
|
Magnesia Specialties |
|
|
23.1 |
|
|
|
16.4 |
|
|
|
69.8 |
|
|
|
51.2 |
|
Corporate |
|
|
(22.6 |
) |
|
|
(9.5 |
) |
|
|
(55.6 |
) |
|
|
(40.7 |
) |
Total |
|
$ |
356.9 |
|
|
$ |
400.6 |
|
|
$ |
763.7 |
|
|
$ |
764.8 |
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
Amount |
|
|
% of Revenues |
|
|
Amount |
|
|
% of Revenues |
|
|
Amount |
|
|
% of Revenues |
|
|
Amount |
|
|
% of Revenues |
|
|
|
(Dollars in Millions) |
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
857.1 |
|
|
|
|
|
|
$ |
766.9 |
|
|
|
|
|
|
$ |
2,231.5 |
|
|
|
|
|
|
$ |
2,092.1 |
|
|
|
|
|
Cement |
|
|
132.3 |
|
|
|
|
|
|
|
115.6 |
|
|
|
|
|
|
|
358.4 |
|
|
|
|
|
|
|
331.7 |
|
|
|
|
|
Ready mixed concrete |
|
|
320.8 |
|
|
|
|
|
|
|
254.6 |
|
|
|
|
|
|
|
824.5 |
|
|
|
|
|
|
|
689.4 |
|
|
|
|
|
Asphalt and paving |
|
|
195.9 |
|
|
|
|
|
|
|
129.8 |
|
|
|
|
|
|
|
343.5 |
|
|
|
|
|
|
|
254.9 |
|
|
|
|
|
Less: Interproduct sales |
|
|
(115.3 |
) |
|
|
|
|
|
|
(81.4 |
) |
|
|
|
|
|
|
(285.1 |
) |
|
|
|
|
|
|
(210.9 |
) |
|
|
|
|
Products and services |
|
|
1,390.8 |
|
|
|
|
|
|
|
1,185.5 |
|
|
|
|
|
|
|
3,472.8 |
|
|
|
|
|
|
|
3,157.2 |
|
|
|
|
|
Freight |
|
|
88.1 |
|
|
|
|
|
|
|
75.0 |
|
|
|
|
|
|
|
219.8 |
|
|
|
|
|
|
|
212.9 |
|
|
|
|
|
Total Building Materials business |
|
|
1,478.9 |
|
|
|
|
|
|
|
1,260.5 |
|
|
|
|
|
|
|
3,692.6 |
|
|
|
|
|
|
|
3,370.1 |
|
|
|
|
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
71.9 |
|
|
|
|
|
|
|
55.2 |
|
|
|
|
|
|
|
207.1 |
|
|
|
|
|
|
|
164.0 |
|
|
|
|
|
Freight |
|
|
6.5 |
|
|
|
|
|
|
|
5.7 |
|
|
|
|
|
|
|
17.9 |
|
|
|
|
|
|
|
16.2 |
|
|
|
|
|
Total Magnesia Specialties |
|
|
78.4 |
|
|
|
|
|
|
|
60.9 |
|
|
|
|
|
|
|
225.0 |
|
|
|
|
|
|
|
180.2 |
|
|
|
|
|
Consolidated total
revenues |
|
$ |
1,557.3 |
|
|
|
|
|
|
$ |
1,321.4 |
|
|
|
|
|
|
$ |
3,917.6 |
|
|
|
|
|
|
$ |
3,550.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
292.9 |
|
|
34.2 |
% |
|
|
$ |
279.1 |
|
|
36.4 |
% |
|
|
$ |
687.7 |
|
|
30.8 |
% |
|
|
$ |
640.4 |
|
|
30.6 |
% |
|
Cement |
|
|
49.9 |
|
|
37.7 |
% |
|
|
|
46.5 |
|
|
40.2 |
% |
|
|
|
101.3 |
|
|
28.3 |
% |
|
|
|
117.2 |
|
|
35.3 |
% |
|
Ready mixed concrete |
|
|
31.4 |
|
|
9.8 |
% |
|
|
|
24.7 |
|
|
9.7 |
% |
|
|
|
69.9 |
|
|
8.5 |
% |
|
|
|
56.7 |
|
|
8.2 |
% |
|
Asphalt and paving |
|
|
38.9 |
|
|
19.9 |
% |
|
|
|
32.6 |
|
|
25.2 |
% |
|
|
|
59.4 |
|
|
17.3 |
% |
|
|
|
46.4 |
|
|
18.2 |
% |
|
Subtotal |
|
|
413.1 |
|
|
29.7 |
% |
|
|
|
382.9 |
|
|
32.3 |
% |
|
|
|
918.3 |
|
|
26.4 |
% |
|
|
|
860.7 |
|
|
27.3 |
% |
|
Freight |
|
|
1.3 |
|
|
NM |
|
|
|
0.9 |
|
|
NM |
|
|
|
1.7 |
|
|
NM |
|
|
|
0.3 |
|
|
NM |
|
Total Building Materials business |
|
|
414.4 |
|
|
28.0 |
% |
|
|
|
383.8 |
|
|
30.4 |
% |
|
|
|
920.0 |
|
|
24.9 |
% |
|
|
|
861.0 |
|
|
25.5 |
% |
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
28.1 |
|
|
39.0 |
% |
|
|
|
21.0 |
|
|
38.0 |
% |
|
|
|
84.4 |
|
|
40.7 |
% |
|
|
|
65.3 |
|
|
39.8 |
% |
|
Freight |
|
|
(1.1 |
) |
|
NM |
|
|
|
(1.0 |
) |
|
NM |
|
|
|
(3.0 |
) |
|
NM |
|
|
|
(3.2 |
) |
|
NM |
|
Total Magnesia Specialties |
|
|
27.0 |
|
|
34.4 |
% |
|
|
|
20.0 |
|
|
32.8 |
% |
|
|
|
81.4 |
|
|
36.2 |
% |
|
|
|
62.1 |
|
|
34.5 |
% |
|
Corporate |
|
|
0.5 |
|
|
NM |
|
|
|
0.7 |
|
|
NM |
|
|
|
0.3 |
|
|
NM |
|
|
|
4.3 |
|
|
NM |
|
Consolidated gross profit |
|
$ |
441.9 |
|
|
28.4 |
% |
|
|
$ |
404.5 |
|
|
30.6 |
% |
|
|
$ |
1,001.7 |
|
|
25.6 |
% |
|
|
$ |
927.4 |
|
|
26.1 |
% |
|
MARTIN MARIETTA MATERIALS, INC. |
|
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
Unaudited |
|
|
Audited |
|
|
|
(In millions) |
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,381.4 |
|
|
$ |
207.3 |
|
Restricted cash |
|
|
1.7 |
|
|
|
97.1 |
|
Accounts receivable, net |
|
|
801.9 |
|
|
|
575.1 |
|
Inventories, net |
|
|
717.5 |
|
|
|
709.0 |
|
Other current assets |
|
|
98.2 |
|
|
|
79.8 |
|
Property, plant and equipment, net |
|
|
5,610.5 |
|
|
|
5,242.3 |
|
Intangible assets, net |
|
|
3,397.8 |
|
|
|
2,922.0 |
|
Operating lease right-of-use assets, net |
|
|
417.8 |
|
|
|
453.0 |
|
Other noncurrent assets |
|
|
359.4 |
|
|
|
295.2 |
|
Total assets |
|
$ |
13,786.2 |
|
|
$ |
10,580.8 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current maturities of long-term debt and short-term facilities |
|
$ |
20.1 |
|
|
$ |
— |
|
Current liabilities |
|
|
581.1 |
|
|
|
499.3 |
|
Long-term debt (excluding current maturities) |
|
|
5,099.4 |
|
|
|
2,625.8 |
|
Other noncurrent liabilities |
|
|
1,727.4 |
|
|
|
1,562.4 |
|
Total equity |
|
|
6,358.2 |
|
|
|
5,893.3 |
|
Total liabilities and equity |
|
$ |
13,786.2 |
|
|
$ |
10,580.8 |
|
MARTIN MARIETTA MATERIALS,
INC.Unaudited Statements of Cash
Flows
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in Millions) |
|
Cash Flows from Operating
Activities: |
|
|
|
|
|
|
|
|
Consolidated net earnings |
|
$ |
545.9 |
|
|
$ |
538.0 |
|
Adjustments to reconcile
consolidated net earnings to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
320.0 |
|
|
|
292.2 |
|
Stock-based compensation expense |
|
|
33.0 |
|
|
|
22.4 |
|
Gain on divestitures and sales of assets |
|
|
(26.6 |
) |
|
|
(71.2 |
) |
Deferred income taxes |
|
|
25.7 |
|
|
|
24.8 |
|
Other items, net |
|
|
(8.3 |
) |
|
|
0.8 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(218.0 |
) |
|
|
(104.5 |
) |
Inventories, net |
|
|
65.1 |
|
|
|
(22.6 |
) |
Accounts payable |
|
|
66.9 |
|
|
|
(0.8 |
) |
Other assets and liabilities, net |
|
|
(23.4 |
) |
|
|
4.9 |
|
Net Cash Provided by Operating
Activities |
|
|
780.3 |
|
|
|
684.0 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(321.3 |
) |
|
|
(250.8 |
) |
Acquisitions, net of cash acquired |
|
|
(792.9 |
) |
|
|
(64.0 |
) |
Proceeds from divestitures and sales of assets |
|
|
41.4 |
|
|
|
141.2 |
|
Investments in life insurance contracts, net |
|
|
13.9 |
|
|
|
(12.7 |
) |
Other investing activities, net |
|
|
— |
|
|
|
(5.4 |
) |
Net Cash Used for Investing
Activities |
|
|
(1,058.9 |
) |
|
|
(191.7 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Financing
Activities: |
|
|
|
|
|
|
|
|
Borrowings of debt |
|
|
2,896.6 |
|
|
|
628.1 |
|
Repayments of debt |
|
|
(400.0 |
) |
|
|
(777.0 |
) |
Payments on financing leases |
|
|
(7.6 |
) |
|
|
(2.3 |
) |
Debt issuance costs |
|
|
(6.1 |
) |
|
|
(2.0 |
) |
Distributions to owners of noncontrolling interest |
|
|
(0.5 |
) |
|
|
— |
|
Repurchases of common stock |
|
|
— |
|
|
|
(50.0 |
) |
Dividends paid |
|
|
(109.7 |
) |
|
|
(104.8 |
) |
Proceeds from exercise of stock options |
|
|
1.1 |
|
|
|
1.4 |
|
Shares withheld for employees' income tax obligations |
|
|
(16.5 |
) |
|
|
(13.0 |
) |
Net Cash Provided by (Used
for) Financing Activities |
|
|
2,357.3 |
|
|
|
(319.6 |
) |
Net Increase in Cash, Cash
Equivalents and Restricted Cash |
|
|
2,078.7 |
|
|
|
172.7 |
|
Cash, Cash Equivalents and
Restricted Cash, beginning of period |
|
|
304.4 |
|
|
|
21.0 |
|
Cash, Cash Equivalents and
Restricted Cash, end of period |
|
$ |
2,383.1 |
|
|
$ |
193.7 |
|
MARTIN MARIETTA MATERIALS,
INC.Unaudited Operational Highlights
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, 2021 |
|
|
September 30, 2021 |
|
|
|
Volume |
|
|
Pricing |
|
|
Volume |
|
|
Pricing |
|
Volume/Pricing
variance(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
|
10.1 |
% |
|
|
0.4 |
% |
|
|
6.5 |
% |
|
|
2.4 |
% |
West Group |
|
|
10.4 |
% |
|
|
2.8 |
% |
|
|
0.0 |
% |
|
|
1.9 |
% |
Total aggregates
operations(2) |
|
|
10.2 |
% |
|
|
1.2 |
% |
|
|
4.1 |
% |
|
|
2.4 |
% |
Organic aggregates
operations(3) |
|
|
6.0 |
% |
|
|
2.2 |
% |
|
|
2.0 |
% |
|
|
2.9 |
% |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Tons in Millions) |
|
|
(Tons in Millions) |
|
Shipments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
|
37.1 |
|
|
|
33.7 |
|
|
|
95.2 |
|
|
|
89.4 |
|
West Group |
|
|
19.9 |
|
|
|
18.1 |
|
|
|
51.8 |
|
|
|
51.8 |
|
Total aggregates
operations(2) |
|
|
57.0 |
|
|
|
51.8 |
|
|
|
147.0 |
|
|
|
141.2 |
|
(1) Volume/pricing variances reflect the percentage increase
from the comparable period in the prior year.(2) Total aggregates
operations include acquisitions from the date of acquisition and
divestitures through the date of disposal. (3) Organic aggregates
operations exclude volume and pricing data for acquisitions that
have not been included in prior-year operations for the comparable
period and divestitures.
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Shipments (in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates tons - external
customers |
|
|
52.0 |
|
|
|
48.1 |
|
|
|
135.2 |
|
|
|
131.9 |
|
Internal aggregates tons used
in other product lines |
|
|
5.0 |
|
|
|
3.7 |
|
|
|
11.8 |
|
|
|
9.3 |
|
Total aggregates tons |
|
|
57.0 |
|
|
|
51.8 |
|
|
|
147.0 |
|
|
|
141.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement tons - external
customers |
|
|
0.7 |
|
|
|
0.7 |
|
|
|
1.8 |
|
|
|
2.0 |
|
Internal cement tons used in
other product lines |
|
|
0.4 |
|
|
|
0.3 |
|
|
|
1.1 |
|
|
|
0.9 |
|
Total cement tons |
|
|
1.1 |
|
|
|
1.0 |
|
|
|
2.9 |
|
|
|
2.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready mixed concrete - cubic
yards |
|
|
2.7 |
|
|
|
2.2 |
|
|
|
7.2 |
|
|
|
6.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asphalt tons - external
customers |
|
|
2.0 |
|
|
|
0.3 |
|
|
|
3.3 |
|
|
|
0.6 |
|
Internal asphalt tons used in
road paving business |
|
|
0.8 |
|
|
|
1.0 |
|
|
|
1.5 |
|
|
|
2.0 |
|
Total asphalt tons |
|
|
2.8 |
|
|
|
1.3 |
|
|
|
4.8 |
|
|
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit sales
price by product line (including internal sales): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates (per ton) |
|
$ |
14.93 |
|
|
$ |
14.75 |
|
|
$ |
15.08 |
|
|
$ |
14.73 |
|
Cement (per ton) |
|
$ |
122.91 |
|
|
$ |
113.41 |
|
|
$ |
120.29 |
|
|
$ |
113.83 |
|
Ready mixed concrete (per
cubic yard) |
|
$ |
116.75 |
|
|
$ |
114.15 |
|
|
$ |
114.59 |
|
|
$ |
113.75 |
|
Asphalt (per ton) |
|
$ |
48.72 |
|
|
$ |
49.56 |
|
|
$ |
48.77 |
|
|
$ |
47.99 |
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in Millions) |
|
Net Earnings Attributable to
Martin Marietta |
|
$ |
254.6 |
|
|
$ |
294.4 |
|
|
$ |
545.7 |
|
|
$ |
538.0 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
44.2 |
|
|
|
28.6 |
|
|
|
99.6 |
|
|
|
89.3 |
|
Income tax expense for controlling interests |
|
|
63.6 |
|
|
|
81.5 |
|
|
|
141.7 |
|
|
|
143.0 |
|
Depreciation, depletion and amortization and earnings/loss from
nonconsolidated equity affiliates |
|
|
112.1 |
|
|
|
97.2 |
|
|
|
314.2 |
|
|
|
287.5 |
|
Acquisition-related expenses |
|
|
7.4 |
|
|
|
— |
|
|
|
18.0 |
|
|
|
— |
|
Impact of selling acquired inventory after markup to fair value as
a part of acquisition accounting |
|
|
8.1 |
|
|
|
— |
|
|
|
15.7 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
490.0 |
|
|
$ |
501.7 |
|
|
$ |
1,134.9 |
|
|
$ |
1,057.8 |
|
A Reconciliation of the GAAP Measure to
2021 Adjusted EBITDA Guidance Range is as follows:
(Dollars in Millions) |
|
Low Point of Range |
|
High Point of Range |
Net earnings attributable to
Martin Marietta |
|
$ |
680.0 |
|
$ |
735.0 |
Add back: |
|
|
|
|
Interest expense |
|
|
145.0 |
|
|
140.0 |
Taxes on income |
|
|
185.0 |
|
|
185.0 |
Depreciation, depletion and amortization expense and noncash
earnings/loss from nonconsolidated equity affiliates |
|
|
445.0 |
|
|
445.0 |
Acquisition-related expenses |
|
|
25.0 |
|
|
25.0 |
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
20.0 |
|
|
20.0 |
Adjusted EBITDA |
|
$ |
1,500.0 |
|
$ |
1,550.0 |
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in Millions) |
|
Consolidated gross profit in
accordance with GAAP |
|
$ |
441.9 |
|
|
$ |
404.5 |
|
|
$ |
1,001.7 |
|
|
$ |
927.4 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
8.1 |
|
|
|
— |
|
|
|
15.7 |
|
|
|
— |
|
Adjusted consolidated gross
profit |
|
$ |
450.0 |
|
|
$ |
404.5 |
|
|
$ |
1,017.4 |
|
|
$ |
927.4 |
|
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 |
|
|
Nine Months Ended |
|
|
|
|
September 30, |
|
|
September 30, |
|
|
|
|
2021 |
|
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
(Dollars in Millions) |
|
|
Aggregates product gross
profit in accordance with GAAP |
|
$ |
292.9 |
|
|
|
|
$ |
279.1 |
|
|
$ |
687.7 |
|
|
$ |
640.4 |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
5.9 |
|
|
|
|
|
— |
|
|
|
12.0 |
|
|
|
— |
|
|
Adjusted aggregates product
gross profit |
|
$ |
298.8 |
|
|
|
|
$ |
279.1 |
|
|
$ |
699.7 |
|
|
$ |
640.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates products and
services revenues |
|
$ |
857.1 |
|
|
|
|
$ |
766.9 |
|
|
$ |
2,231.5 |
|
|
$ |
2,092.1 |
|
|
Adjusted aggregates product
gross margin |
|
|
34.9 |
% |
|
|
|
|
36.4 |
% |
|
|
31.4 |
% |
|
|
30.6 |
% |
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
Adjusted earnings from operations and adjusted
earnings per diluted share represent non-GAAP financial measures
and exclude the impact of selling acquired inventory after its
markup to fair value as part of acquisition accounting and
acquisition-related expenses. 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 and
acquisition-related expenses 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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in Millions) |
|
Consolidated earnings from
operations in accordance with GAAP |
|
$ |
356.9 |
|
|
$ |
400.6 |
|
|
$ |
763.7 |
|
|
$ |
764.8 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
8.1 |
|
|
|
— |
|
|
|
15.7 |
|
|
|
— |
|
Acquisition-related expenses |
|
|
7.4 |
|
|
|
— |
|
|
|
18.0 |
|
|
|
— |
|
Adjusted consolidated earnings
from operations |
|
$ |
372.4 |
|
|
$ |
400.6 |
|
|
$ |
797.4 |
|
|
$ |
764.8 |
|
A Reconciliation of Earnings Per Diluted
Share in Accordance with GAAP to Adjusted Earnings Per Diluted
Share is as follows:
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Earnings per diluted share in
accordance with GAAP |
|
$ |
4.07 |
|
|
$ |
4.71 |
|
|
$ |
8.72 |
|
|
$ |
8.61 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share impact of selling acquired inventory
after its markup to fair value as part of acquisition
accounting |
|
|
0.09 |
|
|
|
— |
|
|
|
0.18 |
|
|
|
— |
|
Earnings per diluted share impact of acquisition-related
expenses |
|
|
0.09 |
|
|
|
— |
|
|
|
0.22 |
|
|
|
— |
|
Adjusted earnings per diluted
share |
|
$ |
4.25 |
|
|
$ |
4.71 |
|
|
$ |
9.12 |
|
|
$ |
8.61 |
|
MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures (Continued)
Reconciliations of GAAP Measures to 2021 Guidance Ranges are as
follows:
2021 Guidance -
Consolidated Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Millions) |
|
Low Point of Range |
|
|
High Point of Range |
|
Consolidated gross profit |
|
$ |
1,330.0 |
|
|
$ |
1,380.0 |
|
Add back: |
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
20.0 |
|
|
|
20.0 |
|
Adjusted consolidated gross
profit |
|
$ |
1,350.0 |
|
|
$ |
1,400.0 |
|
|
|
|
|
|
|
|
|
|
2021 Guidance -
Aggregates Product Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Millions) |
|
Low Point of Range |
|
|
High Point of Range |
|
Aggregates product gross
profit |
|
$ |
905.0 |
|
|
$ |
930.0 |
|
Add back: |
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
15.0 |
|
|
|
15.0 |
|
Adjusted aggregates product
gross profit |
|
$ |
920.0 |
|
|
$ |
945.0 |
|
|
|
|
|
|
|
|
|
|
2021
Guidance - Ready Mixed Concrete and Asphalt and Paving Products and
Services Gross Profit |
|
|
|
|
|
|
|
|
|
|
(Dollars in Millions) |
|
Low Point of Range |
|
|
High Point of Range |
|
Ready mixed concrete and
asphalt and paving products and services gross profit |
|
$ |
160.0 |
|
|
$ |
170.0 |
|
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 |
|
$ |
165.0 |
|
|
$ |
175.0 |
|
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 |
|
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
East Group -
Aggregates: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
15.25 |
|
|
$ |
15.19 |
|
Adjustment for unfavorable
impact of product, geographic and other mix |
|
|
0.31 |
|
|
|
|
|
Mix-adjusted ASP |
|
$ |
15.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
0.4 |
% |
|
|
|
|
Mix-adjusted ASP variance |
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
122.91 |
|
|
$ |
113.41 |
|
Adjustment for favorable
impact of product, geographic and other mix |
|
|
(1.97 |
) |
|
|
|
|
Mix-adjusted ASP |
|
$ |
120.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
8.4 |
% |
|
|
|
|
Mix-adjusted ASP variance |
|
|
6.6 |
% |
|
|
|
|
[placeholder for text]
MARTIN MARIETTA MATERIALS,
INC.Unaudited Statements of Earnings
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(In Millions, Except Per Share Data) |
|
Products and services
revenues |
|
$ |
1,462.7 |
|
|
$ |
1,240.7 |
|
|
$ |
3,679.9 |
|
|
$ |
3,321.2 |
|
Freight revenues |
|
|
94.6 |
|
|
|
80.7 |
|
|
|
237.7 |
|
|
|
229.1 |
|
Total Revenues |
|
|
1,557.3 |
|
|
|
1,321.4 |
|
|
|
3,917.6 |
|
|
|
3,550.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues - products
and services |
|
|
1,021.0 |
|
|
|
836.1 |
|
|
|
2,676.9 |
|
|
|
2,390.9 |
|
Cost of revenues -
freight |
|
|
94.4 |
|
|
|
80.8 |
|
|
|
239.0 |
|
|
|
232.0 |
|
Total Cost of Revenues |
|
|
1,115.4 |
|
|
|
916.9 |
|
|
|
2,915.9 |
|
|
|
2,622.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
441.9 |
|
|
|
404.5 |
|
|
|
1,001.7 |
|
|
|
927.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general &
administrative expenses |
|
|
86.0 |
|
|
|
71.1 |
|
|
|
248.2 |
|
|
|
221.0 |
|
Acquisition-related
expenses |
|
|
7.4 |
|
|
|
0.4 |
|
|
|
18.0 |
|
|
|
1.2 |
|
Other operating income, net |
|
|
(8.4 |
) |
|
|
(67.6 |
) |
|
|
(28.2 |
) |
|
|
(59.6 |
) |
Earnings from Operations |
|
|
356.9 |
|
|
|
400.6 |
|
|
|
763.7 |
|
|
|
764.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
44.3 |
|
|
|
28.7 |
|
|
|
99.9 |
|
|
|
89.7 |
|
Other nonoperating income,
net |
|
|
(5.6 |
) |
|
|
(4.0 |
) |
|
|
(23.8 |
) |
|
|
(5.9 |
) |
Earnings before income tax expense |
|
|
318.2 |
|
|
|
375.9 |
|
|
|
687.6 |
|
|
|
681.0 |
|
Income tax expense |
|
|
63.6 |
|
|
|
81.5 |
|
|
|
141.7 |
|
|
|
143.0 |
|
Consolidated net earnings |
|
|
254.6 |
|
|
|
294.4 |
|
|
|
545.9 |
|
|
|
538.0 |
|
Less: Net earnings
attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
Net Earnings Attributable to
Martin Marietta Materials, Inc. |
|
$ |
254.6 |
|
|
$ |
294.4 |
|
|
$ |
545.7 |
|
|
$ |
538.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings Attributable to
Martin Marietta Materials, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic attributable to common shareholders |
|
$ |
4.08 |
|
|
$ |
4.72 |
|
|
$ |
8.74 |
|
|
$ |
8.63 |
|
Diluted attributable to common shareholders |
|
$ |
4.07 |
|
|
$ |
4.71 |
|
|
$ |
8.72 |
|
|
$ |
8.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average Common Shares
Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
62.4 |
|
|
|
62.3 |
|
|
|
62.4 |
|
|
|
62.3 |
|
Diluted |
|
|
62.6 |
|
|
|
62.4 |
|
|
|
62.6 |
|
|
|
62.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Per Common
Share |
|
$ |
0.61 |
|
|
$ |
0.57 |
|
|
$ |
1.75 |
|
|
$ |
1.67 |
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in Millions) |
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
684.1 |
|
|
$ |
549.3 |
|
|
$ |
1,714.4 |
|
|
$ |
1,465.9 |
|
West Group |
|
|
794.8 |
|
|
|
711.2 |
|
|
|
1,978.2 |
|
|
|
1,904.2 |
|
Total Building Materials business |
|
|
1,478.9 |
|
|
|
1,260.5 |
|
|
|
3,692.6 |
|
|
|
3,370.1 |
|
Magnesia Specialties |
|
|
78.4 |
|
|
|
60.9 |
|
|
|
225.0 |
|
|
|
180.2 |
|
Total |
|
$ |
1,557.3 |
|
|
$ |
1,321.4 |
|
|
$ |
3,917.6 |
|
|
$ |
3,550.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
231.6 |
|
|
$ |
206.3 |
|
|
$ |
542.1 |
|
|
$ |
459.5 |
|
West Group |
|
|
182.8 |
|
|
|
177.5 |
|
|
|
377.9 |
|
|
|
401.5 |
|
Total Building Materials business |
|
|
414.4 |
|
|
|
383.8 |
|
|
|
920.0 |
|
|
|
861.0 |
|
Magnesia Specialties |
|
|
27.0 |
|
|
|
20.0 |
|
|
|
81.4 |
|
|
|
62.1 |
|
Corporate |
|
|
0.5 |
|
|
|
0.7 |
|
|
|
0.3 |
|
|
|
4.3 |
|
Total |
|
$ |
441.9 |
|
|
$ |
404.5 |
|
|
$ |
1,001.7 |
|
|
$ |
927.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
26.5 |
|
|
$ |
24.9 |
|
|
$ |
77.0 |
|
|
$ |
74.0 |
|
West Group |
|
|
34.2 |
|
|
|
34.2 |
|
|
|
101.1 |
|
|
|
100.2 |
|
Total Building Materials business |
|
|
60.7 |
|
|
|
59.1 |
|
|
|
178.1 |
|
|
|
174.2 |
|
Magnesia Specialties |
|
|
3.8 |
|
|
|
3.6 |
|
|
|
11.1 |
|
|
|
10.4 |
|
Corporate |
|
|
21.5 |
|
|
|
8.4 |
|
|
|
59.0 |
|
|
|
36.4 |
|
Total |
|
$ |
86.0 |
|
|
$ |
71.1 |
|
|
$ |
248.2 |
|
|
$ |
221.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
205.8 |
|
|
$ |
181.4 |
|
|
$ |
465.3 |
|
|
$ |
386.1 |
|
West Group |
|
|
150.6 |
|
|
|
212.3 |
|
|
|
284.2 |
|
|
|
368.2 |
|
Total Building Materials business |
|
|
356.4 |
|
|
|
393.7 |
|
|
|
749.5 |
|
|
|
754.3 |
|
Magnesia Specialties |
|
|
23.1 |
|
|
|
16.4 |
|
|
|
69.8 |
|
|
|
51.2 |
|
Corporate |
|
|
(22.6 |
) |
|
|
(9.5 |
) |
|
|
(55.6 |
) |
|
|
(40.7 |
) |
Total |
|
$ |
356.9 |
|
|
$ |
400.6 |
|
|
$ |
763.7 |
|
|
$ |
764.8 |
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
Amount |
|
|
% of Revenues |
|
|
Amount |
|
|
% of Revenues |
|
|
Amount |
|
|
% of Revenues |
|
|
Amount |
|
|
% of Revenues |
|
|
|
(Dollars in Millions) |
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
857.1 |
|
|
|
|
|
|
$ |
766.9 |
|
|
|
|
|
|
$ |
2,231.5 |
|
|
|
|
|
|
$ |
2,092.1 |
|
|
|
|
|
Cement |
|
|
132.3 |
|
|
|
|
|
|
|
115.6 |
|
|
|
|
|
|
|
358.4 |
|
|
|
|
|
|
|
331.7 |
|
|
|
|
|
Ready mixed concrete |
|
|
320.8 |
|
|
|
|
|
|
|
254.6 |
|
|
|
|
|
|
|
824.5 |
|
|
|
|
|
|
|
689.4 |
|
|
|
|
|
Asphalt and paving |
|
|
195.9 |
|
|
|
|
|
|
|
129.8 |
|
|
|
|
|
|
|
343.5 |
|
|
|
|
|
|
|
254.9 |
|
|
|
|
|
Less: Interproduct sales |
|
|
(115.3 |
) |
|
|
|
|
|
|
(81.4 |
) |
|
|
|
|
|
|
(285.1 |
) |
|
|
|
|
|
|
(210.9 |
) |
|
|
|
|
Products and services |
|
|
1,390.8 |
|
|
|
|
|
|
|
1,185.5 |
|
|
|
|
|
|
|
3,472.8 |
|
|
|
|
|
|
|
3,157.2 |
|
|
|
|
|
Freight |
|
|
88.1 |
|
|
|
|
|
|
|
75.0 |
|
|
|
|
|
|
|
219.8 |
|
|
|
|
|
|
|
212.9 |
|
|
|
|
|
Total Building Materials business |
|
|
1,478.9 |
|
|
|
|
|
|
|
1,260.5 |
|
|
|
|
|
|
|
3,692.6 |
|
|
|
|
|
|
|
3,370.1 |
|
|
|
|
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
71.9 |
|
|
|
|
|
|
|
55.2 |
|
|
|
|
|
|
|
207.1 |
|
|
|
|
|
|
|
164.0 |
|
|
|
|
|
Freight |
|
|
6.5 |
|
|
|
|
|
|
|
5.7 |
|
|
|
|
|
|
|
17.9 |
|
|
|
|
|
|
|
16.2 |
|
|
|
|
|
Total Magnesia Specialties |
|
|
78.4 |
|
|
|
|
|
|
|
60.9 |
|
|
|
|
|
|
|
225.0 |
|
|
|
|
|
|
|
180.2 |
|
|
|
|
|
Consolidated total
revenues |
|
$ |
1,557.3 |
|
|
|
|
|
|
$ |
1,321.4 |
|
|
|
|
|
|
$ |
3,917.6 |
|
|
|
|
|
|
$ |
3,550.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
292.9 |
|
|
34.2 |
% |
|
|
$ |
279.1 |
|
|
36.4 |
% |
|
|
$ |
687.7 |
|
|
30.8 |
% |
|
|
$ |
640.4 |
|
|
30.6 |
% |
|
Cement |
|
|
49.9 |
|
|
37.7 |
% |
|
|
|
46.5 |
|
|
40.2 |
% |
|
|
|
101.3 |
|
|
28.3 |
% |
|
|
|
117.2 |
|
|
35.3 |
% |
|
Ready mixed concrete |
|
|
31.4 |
|
|
9.8 |
% |
|
|
|
24.7 |
|
|
9.7 |
% |
|
|
|
69.9 |
|
|
8.5 |
% |
|
|
|
56.7 |
|
|
8.2 |
% |
|
Asphalt and paving |
|
|
38.9 |
|
|
19.9 |
% |
|
|
|
32.6 |
|
|
25.2 |
% |
|
|
|
59.4 |
|
|
17.3 |
% |
|
|
|
46.4 |
|
|
18.2 |
% |
|
Subtotal |
|
|
413.1 |
|
|
29.7 |
% |
|
|
|
382.9 |
|
|
32.3 |
% |
|
|
|
918.3 |
|
|
26.4 |
% |
|
|
|
860.7 |
|
|
27.3 |
% |
|
Freight |
|
|
1.3 |
|
|
NM |
|
|
|
0.9 |
|
|
NM |
|
|
|
1.7 |
|
|
NM |
|
|
|
0.3 |
|
|
NM |
|
Total Building Materials business |
|
|
414.4 |
|
|
28.0 |
% |
|
|
|
383.8 |
|
|
30.4 |
% |
|
|
|
920.0 |
|
|
24.9 |
% |
|
|
|
861.0 |
|
|
25.5 |
% |
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
28.1 |
|
|
39.0 |
% |
|
|
|
21.0 |
|
|
38.0 |
% |
|
|
|
84.4 |
|
|
40.7 |
% |
|
|
|
65.3 |
|
|
39.8 |
% |
|
Freight |
|
|
(1.1 |
) |
|
NM |
|
|
|
(1.0 |
) |
|
NM |
|
|
|
(3.0 |
) |
|
NM |
|
|
|
(3.2 |
) |
|
NM |
|
Total Magnesia Specialties |
|
|
27.0 |
|
|
34.4 |
% |
|
|
|
20.0 |
|
|
32.8 |
% |
|
|
|
81.4 |
|
|
36.2 |
% |
|
|
|
62.1 |
|
|
34.5 |
% |
|
Corporate |
|
|
0.5 |
|
|
NM |
|
|
|
0.7 |
|
|
NM |
|
|
|
0.3 |
|
|
NM |
|
|
|
4.3 |
|
|
NM |
|
Consolidated gross profit |
|
$ |
441.9 |
|
|
28.4 |
% |
|
|
$ |
404.5 |
|
|
30.6 |
% |
|
|
$ |
1,001.7 |
|
|
25.6 |
% |
|
|
$ |
927.4 |
|
|
26.1 |
% |
|
MARTIN MARIETTA MATERIALS, INC. |
|
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
Unaudited |
|
|
Audited |
|
|
|
(In millions) |
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,381.4 |
|
|
$ |
207.3 |
|
Restricted cash |
|
|
1.7 |
|
|
|
97.1 |
|
Accounts receivable, net |
|
|
801.9 |
|
|
|
575.1 |
|
Inventories, net |
|
|
717.5 |
|
|
|
709.0 |
|
Other current assets |
|
|
98.2 |
|
|
|
79.8 |
|
Property, plant and equipment, net |
|
|
5,610.5 |
|
|
|
5,242.3 |
|
Intangible assets, net |
|
|
3,397.8 |
|
|
|
2,922.0 |
|
Operating lease right-of-use assets, net |
|
|
417.8 |
|
|
|
453.0 |
|
Other noncurrent assets |
|
|
359.4 |
|
|
|
295.2 |
|
Total assets |
|
$ |
13,786.2 |
|
|
$ |
10,580.8 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current maturities of long-term debt and short-term facilities |
|
$ |
20.1 |
|
|
$ |
— |
|
Current liabilities |
|
|
581.1 |
|
|
|
499.3 |
|
Long-term debt (excluding current maturities) |
|
|
5,099.4 |
|
|
|
2,625.8 |
|
Other noncurrent liabilities |
|
|
1,727.4 |
|
|
|
1,562.4 |
|
Total equity |
|
|
6,358.2 |
|
|
|
5,893.3 |
|
Total liabilities and equity |
|
$ |
13,786.2 |
|
|
$ |
10,580.8 |
|
MARTIN MARIETTA MATERIALS,
INC.Unaudited Statements of Cash
Flows
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in Millions) |
|
Cash Flows from Operating
Activities: |
|
|
|
|
|
|
|
|
Consolidated net earnings |
|
$ |
545.9 |
|
|
$ |
538.0 |
|
Adjustments to reconcile
consolidated net earnings to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
320.0 |
|
|
|
292.2 |
|
Stock-based compensation expense |
|
|
33.0 |
|
|
|
22.4 |
|
Gain on divestitures and sales of assets |
|
|
(26.6 |
) |
|
|
(71.2 |
) |
Deferred income taxes |
|
|
25.7 |
|
|
|
24.8 |
|
Other items, net |
|
|
(8.3 |
) |
|
|
0.8 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(218.0 |
) |
|
|
(104.5 |
) |
Inventories, net |
|
|
65.1 |
|
|
|
(22.6 |
) |
Accounts payable |
|
|
66.9 |
|
|
|
(0.8 |
) |
Other assets and liabilities, net |
|
|
(23.4 |
) |
|
|
4.9 |
|
Net Cash Provided by Operating
Activities |
|
|
780.3 |
|
|
|
684.0 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(321.3 |
) |
|
|
(250.8 |
) |
Acquisitions, net of cash acquired |
|
|
(792.9 |
) |
|
|
(64.0 |
) |
Proceeds from divestitures and sales of assets |
|
|
41.4 |
|
|
|
141.2 |
|
Investments in life insurance contracts, net |
|
|
13.9 |
|
|
|
(12.7 |
) |
Other investing activities, net |
|
|
— |
|
|
|
(5.4 |
) |
Net Cash Used for Investing
Activities |
|
|
(1,058.9 |
) |
|
|
(191.7 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Financing
Activities: |
|
|
|
|
|
|
|
|
Borrowings of debt |
|
|
2,896.6 |
|
|
|
628.1 |
|
Repayments of debt |
|
|
(400.0 |
) |
|
|
(777.0 |
) |
Payments on financing leases |
|
|
(7.6 |
) |
|
|
(2.3 |
) |
Debt issuance costs |
|
|
(6.1 |
) |
|
|
(2.0 |
) |
Distributions to owners of noncontrolling interest |
|
|
(0.5 |
) |
|
|
— |
|
Repurchases of common stock |
|
|
— |
|
|
|
(50.0 |
) |
Dividends paid |
|
|
(109.7 |
) |
|
|
(104.8 |
) |
Proceeds from exercise of stock options |
|
|
1.1 |
|
|
|
1.4 |
|
Shares withheld for employees' income tax obligations |
|
|
(16.5 |
) |
|
|
(13.0 |
) |
Net Cash Provided by (Used
for) Financing Activities |
|
|
2,357.3 |
|
|
|
(319.6 |
) |
Net Increase in Cash, Cash
Equivalents and Restricted Cash |
|
|
2,078.7 |
|
|
|
172.7 |
|
Cash, Cash Equivalents and
Restricted Cash, beginning of period |
|
|
304.4 |
|
|
|
21.0 |
|
Cash, Cash Equivalents and
Restricted Cash, end of period |
|
$ |
2,383.1 |
|
|
$ |
193.7 |
|
MARTIN MARIETTA MATERIALS,
INC.Unaudited Operational Highlights
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, 2021 |
|
|
September 30, 2021 |
|
|
|
Volume |
|
|
Pricing |
|
|
Volume |
|
|
Pricing |
|
Volume/Pricing
variance(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
|
10.1 |
% |
|
|
0.4 |
% |
|
|
6.5 |
% |
|
|
2.4 |
% |
West Group |
|
|
10.4 |
% |
|
|
2.8 |
% |
|
|
0.0 |
% |
|
|
1.9 |
% |
Total aggregates
operations(2) |
|
|
10.2 |
% |
|
|
1.2 |
% |
|
|
4.1 |
% |
|
|
2.4 |
% |
Organic aggregates
operations(3) |
|
|
6.0 |
% |
|
|
2.2 |
% |
|
|
2.0 |
% |
|
|
2.9 |
% |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Tons in Millions) |
|
|
(Tons in Millions) |
|
Shipments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
|
37.1 |
|
|
|
33.7 |
|
|
|
95.2 |
|
|
|
89.4 |
|
West Group |
|
|
19.9 |
|
|
|
18.1 |
|
|
|
51.8 |
|
|
|
51.8 |
|
Total aggregates
operations(2) |
|
|
57.0 |
|
|
|
51.8 |
|
|
|
147.0 |
|
|
|
141.2 |
|
(1) Volume/pricing variances reflect the percentage increase
from the comparable period in the prior year.(2) Total aggregates
operations include acquisitions from the date of acquisition and
divestitures through the date of disposal. (3) Organic aggregates
operations exclude volume and pricing data for acquisitions that
have not been included in prior-year operations for the comparable
period and divestitures.
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Shipments (in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates tons - external
customers |
|
|
52.0 |
|
|
|
48.1 |
|
|
|
135.2 |
|
|
|
131.9 |
|
Internal aggregates tons used
in other product lines |
|
|
5.0 |
|
|
|
3.7 |
|
|
|
11.8 |
|
|
|
9.3 |
|
Total aggregates tons |
|
|
57.0 |
|
|
|
51.8 |
|
|
|
147.0 |
|
|
|
141.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement tons - external
customers |
|
|
0.7 |
|
|
|
0.7 |
|
|
|
1.8 |
|
|
|
2.0 |
|
Internal cement tons used in
other product lines |
|
|
0.4 |
|
|
|
0.3 |
|
|
|
1.1 |
|
|
|
0.9 |
|
Total cement tons |
|
|
1.1 |
|
|
|
1.0 |
|
|
|
2.9 |
|
|
|
2.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready mixed concrete - cubic
yards |
|
|
2.7 |
|
|
|
2.2 |
|
|
|
7.2 |
|
|
|
6.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asphalt tons - external
customers |
|
|
2.0 |
|
|
|
0.3 |
|
|
|
3.3 |
|
|
|
0.6 |
|
Internal asphalt tons used in
road paving business |
|
|
0.8 |
|
|
|
1.0 |
|
|
|
1.5 |
|
|
|
2.0 |
|
Total asphalt tons |
|
|
2.8 |
|
|
|
1.3 |
|
|
|
4.8 |
|
|
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit sales
price by product line (including internal sales): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates (per ton) |
|
$ |
14.93 |
|
|
$ |
14.75 |
|
|
$ |
15.08 |
|
|
$ |
14.73 |
|
Cement (per ton) |
|
$ |
122.91 |
|
|
$ |
113.41 |
|
|
$ |
120.29 |
|
|
$ |
113.83 |
|
Ready mixed concrete (per
cubic yard) |
|
$ |
116.75 |
|
|
$ |
114.15 |
|
|
$ |
114.59 |
|
|
$ |
113.75 |
|
Asphalt (per ton) |
|
$ |
48.72 |
|
|
$ |
49.56 |
|
|
$ |
48.77 |
|
|
$ |
47.99 |
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in Millions) |
|
Net Earnings Attributable to
Martin Marietta |
|
$ |
254.6 |
|
|
$ |
294.4 |
|
|
$ |
545.7 |
|
|
$ |
538.0 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
44.2 |
|
|
|
28.6 |
|
|
|
99.6 |
|
|
|
89.3 |
|
Income tax expense for controlling interests |
|
|
63.6 |
|
|
|
81.5 |
|
|
|
141.7 |
|
|
|
143.0 |
|
Depreciation, depletion and amortization and earnings/loss from
nonconsolidated equity affiliates |
|
|
112.1 |
|
|
|
97.2 |
|
|
|
314.2 |
|
|
|
287.5 |
|
Acquisition-related expenses |
|
|
7.4 |
|
|
|
— |
|
|
|
18.0 |
|
|
|
— |
|
Impact of selling acquired inventory after markup to fair value as
a part of acquisition accounting |
|
|
8.1 |
|
|
|
— |
|
|
|
15.7 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
490.0 |
|
|
$ |
501.7 |
|
|
$ |
1,134.9 |
|
|
$ |
1,057.8 |
|
A Reconciliation of the GAAP Measure to
2021 Adjusted EBITDA Guidance Range is as follows:
(Dollars in Millions) |
|
Low Point of Range |
|
High Point of Range |
Net earnings attributable to
Martin Marietta |
|
$ |
680.0 |
|
$ |
735.0 |
Add back: |
|
|
|
|
Interest expense |
|
|
145.0 |
|
|
140.0 |
Taxes on income |
|
|
185.0 |
|
|
185.0 |
Depreciation, depletion and amortization expense and noncash
earnings/loss from nonconsolidated equity affiliates |
|
|
445.0 |
|
|
445.0 |
Acquisition-related expenses |
|
|
25.0 |
|
|
25.0 |
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
20.0 |
|
|
20.0 |
Adjusted EBITDA |
|
$ |
1,500.0 |
|
$ |
1,550.0 |
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in Millions) |
|
Consolidated gross profit in
accordance with GAAP |
|
$ |
441.9 |
|
|
$ |
404.5 |
|
|
$ |
1,001.7 |
|
|
$ |
927.4 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
8.1 |
|
|
|
— |
|
|
|
15.7 |
|
|
|
— |
|
Adjusted consolidated gross
profit |
|
$ |
450.0 |
|
|
$ |
404.5 |
|
|
$ |
1,017.4 |
|
|
$ |
927.4 |
|
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 |
|
|
Nine Months Ended |
|
|
|
|
September 30, |
|
|
September 30, |
|
|
|
|
2021 |
|
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
(Dollars in Millions) |
|
|
Aggregates product gross
profit in accordance with GAAP |
|
$ |
292.9 |
|
|
|
|
$ |
279.1 |
|
|
$ |
687.7 |
|
|
$ |
640.4 |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
5.9 |
|
|
|
|
|
— |
|
|
|
12.0 |
|
|
|
— |
|
|
Adjusted aggregates product
gross profit |
|
$ |
298.8 |
|
|
|
|
$ |
279.1 |
|
|
$ |
699.7 |
|
|
$ |
640.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates products and
services revenues |
|
$ |
857.1 |
|
|
|
|
$ |
766.9 |
|
|
$ |
2,231.5 |
|
|
$ |
2,092.1 |
|
|
Adjusted aggregates product
gross margin |
|
|
34.9 |
% |
|
|
|
|
36.4 |
% |
|
|
31.4 |
% |
|
|
30.6 |
% |
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
Adjusted earnings from operations and adjusted
earnings per diluted share represent non-GAAP financial measures
and exclude the impact of selling acquired inventory after its
markup to fair value as part of acquisition accounting and
acquisition-related expenses. 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
and acquisition-related expenses 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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(Dollars in Millions) |
|
Consolidated earnings from
operations in accordance with GAAP |
|
$ |
356.9 |
|
|
$ |
400.6 |
|
|
$ |
763.7 |
|
|
$ |
764.8 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
8.1 |
|
|
|
— |
|
|
|
15.7 |
|
|
|
— |
|
Acquisition-related expenses |
|
|
7.4 |
|
|
|
— |
|
|
|
18.0 |
|
|
|
— |
|
Adjusted consolidated earnings
from operations |
|
$ |
372.4 |
|
|
$ |
400.6 |
|
|
$ |
797.4 |
|
|
$ |
764.8 |
|
A Reconciliation of Earnings Per Diluted
Share in Accordance with GAAP to Adjusted Earnings Per Diluted
Share is as follows:
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Earnings per diluted share in
accordance with GAAP |
|
$ |
4.07 |
|
|
$ |
4.71 |
|
|
$ |
8.72 |
|
|
$ |
8.61 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share impact of selling acquired inventory
after its markup to fair value as part of acquisition
accounting |
|
|
0.09 |
|
|
|
— |
|
|
|
0.18 |
|
|
|
— |
|
Earnings per diluted share impact of acquisition-related
expenses |
|
|
0.09 |
|
|
|
— |
|
|
|
0.22 |
|
|
|
— |
|
Adjusted earnings per diluted
share |
|
$ |
4.25 |
|
|
$ |
4.71 |
|
|
$ |
9.12 |
|
|
$ |
8.61 |
|
MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures (Continued)
Reconciliations of GAAP Measures to 2021 Guidance Ranges are as
follows:
2021 Guidance -
Consolidated Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Millions) |
|
Low Point of Range |
|
|
High Point of Range |
|
Consolidated gross profit |
|
$ |
1,330.0 |
|
|
$ |
1,380.0 |
|
Add back: |
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
20.0 |
|
|
|
20.0 |
|
Adjusted consolidated gross
profit |
|
$ |
1,350.0 |
|
|
$ |
1,400.0 |
|
|
|
|
|
|
|
|
|
|
2021 Guidance -
Aggregates Product Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Millions) |
|
Low Point of Range |
|
|
High Point of Range |
|
Aggregates product gross
profit |
|
$ |
905.0 |
|
|
$ |
930.0 |
|
Add back: |
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
|
15.0 |
|
|
|
15.0 |
|
Adjusted aggregates product
gross profit |
|
$ |
920.0 |
|
|
$ |
945.0 |
|
|
|
|
|
|
|
|
|
|
2021
Guidance - Ready Mixed Concrete and Asphalt and Paving Products and
Services Gross Profit |
|
|
|
|
|
|
|
|
|
|
(Dollars in Millions) |
|
Low Point of Range |
|
|
High Point of Range |
|
Ready mixed concrete and
asphalt and paving products and services gross profit |
|
$ |
160.0 |
|
|
$ |
170.0 |
|
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 |
|
$ |
165.0 |
|
|
$ |
175.0 |
|
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 |
|
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
East Group -
Aggregates: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
15.25 |
|
|
$ |
15.19 |
|
Adjustment for unfavorable
impact of product, geographic and other mix |
|
|
0.31 |
|
|
|
|
|
Mix-adjusted ASP |
|
$ |
15.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
0.4 |
% |
|
|
|
|
Mix-adjusted ASP variance |
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
122.91 |
|
|
$ |
113.41 |
|
Adjustment for favorable
impact of product, geographic and other mix |
|
|
(1.97 |
) |
|
|
|
|
Mix-adjusted ASP |
|
$ |
120.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
8.4 |
% |
|
|
|
|
Mix-adjusted ASP variance |
|
|
6.6 |
% |
|
|
|
|
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