Martin Marietta Materials, Inc. (NYSE:MLM) (“Martin Marietta” or
the “Company”) today reported results for the second quarter ended
June 30, 2020.
Highlights include:
|
Quarter
Ended June 30, |
|
($ in millions, except per share) |
2020 |
|
|
2019 |
|
Total revenues
1 |
$ |
1,270.6 |
|
|
$ |
1,279.5 |
|
Products and services revenues 2 |
$ |
1,189.5 |
|
|
$ |
1,196.1 |
|
Building Materials business |
$ |
1,140.6 |
|
|
$ |
1,125.7 |
|
Magnesia Specialties business |
$ |
48.9 |
|
|
$ |
70.4 |
|
Gross profit |
$ |
380.5 |
|
|
$ |
356.9 |
|
Earnings from operations |
$ |
306.4 |
|
|
$ |
285.9 |
|
Net earnings attributable to Martin Marietta |
$ |
217.6 |
|
|
$ |
189.5 |
|
Adjusted EBITDA 3 |
$ |
407.0 |
|
|
$ |
378.5 |
|
Earnings per diluted share |
$ |
3.49 |
|
|
$ |
3.01 |
|
1 Total revenues include the sales of
products and services to customers (net of any discounts or
allowances) and freight revenues.2 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.3
Earnings Before Interest, Taxes, Depreciation, Depletion and
Amortization and the Noncash Earnings/Loss from Nonconsolidated
Equity Affiliates, 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.
Ward Nye, Chairman and CEO of Martin Marietta,
stated, “We are proud to have concluded the first half of 2020 with
the highest profitability and best safety performance in Martin
Marietta’s history. Our record performance underscores Martin
Marietta’s collective commitment to operational excellence and the
disciplined execution of our strategic plan as we navigate the
uncertainties and economic hardships presented by COVID-19.
“The Company expanded consolidated gross margin
by 200 basis points and delivered Adjusted EBITDA of $407 million
in the second quarter, driven by pricing momentum and improved cost
management across the Building Materials business. We remain
confident that our favorable pricing trends will continue, aided in
part by the continued success of our locally-driven pricing
strategy. We expect our full-year 2020 aggregates pricing to
increase 3 percent to 4 percent, slightly below our pre-COVID-19
forecast, largely due to year-over-year geographic and product mix
fluctuations.
“Though Martin Marietta, along with many of our
customers, has operated as a designated “essential business”
through the COVID-19 shutdowns and subsequent phased re-openings,
we still experienced impacts from the macroeconomic slowdown.
Despite these challenges, product demand trends remained strong
across our key geographies, including North Texas and the Front
Range of Colorado, two of our leading vertically-integrated
markets, driven by attractive customer backlogs and continued
construction activity. Customer backlogs are expected to support
the Company’s near-term shipment levels, though we currently
anticipate an industry-wide decline in product demand over the next
few quarters, particularly with the uncertainty of additional U.S.
federal economic stimulus actions, as businesses and governments
address budget shortfalls. Volume impacts from reduced demand will
likely be temporary, gradual and varied by end use and geography.
In the medium- and long-term, we remain confident that the
underlying demand drivers and fundamental strength of our Top 10
states position the Company to outperform through typical economic
cycles.”
Mr. Nye concluded, “Moving forward, we remain
focused on the world-class attributes of our business--including,
safety, operational excellence and cost management--as well as our
proven strategic plan. Martin Marietta is well-positioned
geographically and financially and has the benefit of an
experienced management team to responsibly navigate through
challenging times and drive sustainable long-term growth and
shareholder value.”
Mr. Nye’s CEO Commentary and Market Perspective
may be found on the Investor Relations section of
the Company’s website.
Second-Quarter Operating Results(All comparisons are versus the
prior-year quarter unless noted otherwise)
Second-quarter results and trends described in
this earnings release may not be indicative of the Company’s future
performance.
|
Quarter Ended June 30, 2020 |
|
($ in millions) |
Revenues |
|
Gross profit (loss) |
|
Gross margin |
|
Building
Materials business: |
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
Aggregates |
$ |
754.9 |
|
$ |
268.0 |
|
|
35.5 |
% |
Cement |
|
109.5 |
|
|
43.4 |
|
|
39.7 |
% |
Ready mixed concrete |
|
245.1 |
|
|
26.1 |
|
|
10.6 |
% |
Asphalt and paving |
|
107.0 |
|
|
21.9 |
|
|
20.4 |
% |
Less: interproduct revenues |
|
(75.9 |
) |
|
— |
|
|
— |
|
Products and services |
|
1,140.6 |
|
|
359.4 |
|
|
31.5 |
% |
Freight |
|
76.4 |
|
|
(0.3 |
) |
NM |
|
Total Building
Materials business |
|
1,217.0 |
|
|
359.1 |
|
|
29.5 |
% |
Magnesia Specialties business: |
|
|
|
|
|
|
|
|
|
Products and services |
|
48.9 |
|
|
18.2 |
|
|
37.3 |
% |
Freight |
|
4.7 |
|
|
(1.3 |
) |
NM |
|
Total Magnesia Specialties business |
|
53.6 |
|
|
16.9 |
|
|
31.5 |
% |
Corporate |
|
— |
|
|
4.5 |
|
NM |
|
Total |
$ |
1,270.6 |
|
$ |
380.5 |
|
|
29.9 |
% |
|
Quarter Ended June 30, 2019 |
|
($ in millions) |
Revenues |
|
Gross profit (loss) |
|
Gross margin |
|
Building
Materials business: |
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
Aggregates |
$ |
757.8 |
|
$ |
251.5 |
|
|
33.2 |
% |
Cement |
|
112.3 |
|
|
42.2 |
|
|
37.6 |
% |
Ready mixed concrete |
|
241.2 |
|
|
19.0 |
|
|
7.9 |
% |
Asphalt and paving |
|
82.2 |
|
|
15.7 |
|
|
19.2 |
% |
Less: interproduct revenues |
|
(67.8 |
) |
|
— |
|
|
— |
|
Products and services |
|
1,125.7 |
|
|
328.4 |
|
|
29.2 |
% |
Freight |
|
77.5 |
|
|
0.2 |
|
NM |
|
Total Building
Materials business |
|
1,203.2 |
|
|
328.6 |
|
|
27.3 |
% |
Magnesia Specialties business: |
|
|
|
|
|
|
|
|
|
Products and services |
|
70.4 |
|
|
29.2 |
|
|
41.5 |
% |
Freight |
|
5.9 |
|
|
(1.1 |
) |
NM |
|
Total Magnesia Specialties business |
|
76.3 |
|
|
28.1 |
|
|
36.8 |
% |
Corporate |
|
— |
|
|
0.2 |
|
NM |
|
Total |
$ |
1,279.5 |
|
$ |
356.9 |
|
|
27.9 |
% |
Building Materials Business
Second-quarter operating results demonstrated
the health and resiliency of the Company’s markets and the
disciplined execution of its locally-driven pricing strategy.
Despite limited impacts from COVID-19, product demand trends
remained strong in key Martin Marietta geographies, most notably in
North Texas, Colorado and Indiana, as well as Georgia and Florida,
the latter two being key states that experienced significant
precipitation during the quarter.
Aggregates
Second-quarter aggregates shipments declined 3.7
percent compared with the prior-year quarter, which benefited from
carryover work due to the extraordinarily wet 2018. Pricing
improved 3.3 percent due to strong performance across all
divisions.
- Mid-America Group shipments decreased 7.2 percent, driven by
near-record rainfall across much of its footprint and anticipated
lower infrastructure shipments in portions of North Carolina.
Geographic mix limited pricing growth to 2.3 percent as the Central
Division, which has lower selling prices relative to the
consolidated average, contributed a higher percentage of
second-quarter shipments to the Group.
- Shipments for the Southeast Group increased 3.0 percent, as the
Florida Department of Transportation (DOT) accelerated certain
transportation projects to leverage construction efficiencies
driven by lower vehicle traffic during the COVID-19
shelter-in-place orders, along with continued strength in
warehouse, data center and distribution facility construction.
These favorable trends were partially offset by weather-impacted
construction delays. Product mix, reflecting a higher percentage of
lower-priced base and fines shipments, limited pricing growth to
0.7 percent.
- West Group shipments decreased 1.0 percent, with double-digit
growth in North Texas and Colorado offset by the completion of
certain Gulf Coast liquefied natural gas (LNG) projects and reduced
energy-sector shipments. Pricing improved 5.5 percent, reflecting
favorable product mix.
Martin Marietta’s second-quarter aggregates
shipments by end use are as follows (all comparisons are versus the
prior-year quarter):
- Aggregates shipments to the infrastructure market increased
modestly. The Company benefited from large transportation projects
in Texas, Colorado and Florida, as most state DOTs continued to
advance transportation projects during the COVID-19
shelter-in-place orders. However, consistent with expectations
prior to COVID-19, North Carolina DOT temporarily suspended awards
for certain transportation projects in response to funding issues
specific to weather-related disaster spending and Map Act
settlements. The infrastructure market accounted for 38 percent of
second-quarter aggregates shipments, which is below the Company’s
most recent ten-year annual average of 45 percent.
- Aggregates shipments to the nonresidential market declined
following double-digit growth in commercial and heavy industrial
construction activity in the prior-year quarter. Precipitation and
temporary project delays hindered otherwise robust distribution
center, warehouse and data center construction activity. The
Company also experienced reduced energy-related shipments due to
the completion of certain windfarm and Gulf Coast LNG projects, as
well as lower overall demand to the shale sector. The
nonresidential market represented 32 percent of second-quarter
aggregates shipments.
- Aggregates shipments to the residential market increased, with
notable growth throughout Texas, as well as in Denver and
Charlotte. Following a brief COVID-19-related pause in activity by
national homebuilders, housing construction returned to pre-COVID
levels, reflective of pent-up demand, low available inventories and
favorable interest rates. The residential market accounted for 24
percent of second-quarter aggregates shipments.
- The ChemRock/Rail market accounted for the remaining 6 percent
of second-quarter aggregates shipments. Volumes to this end use
increased, driven by improved ballast shipments to the Class I
western railroads.
Aggregates product gross margin expanded 230
basis points to 35.5 percent, an all-time record, largely driven by
improved pricing, production efficiencies and lower diesel fuel
costs.
Cement
Second-quarter cement shipments decreased 2.7
percent, driven by reduced demand for West Texas oil-well specialty
cement products caused by historically low oil prices. While cement
pricing increased attractively in North Texas, Houston, and
portions of Central Texas, notably lower sales of higher-priced
oil-well specialty cement products limited overall pricing growth
to 0.1 percent. Cement product gross margin expanded 210 basis
points to 39.7 percent driven by improved kiln reliability and
lower fuel costs.
Downstream businesses
Ready mixed concrete shipments increased 8.7
percent, excluding second-quarter 2019 shipments from the Southwest
Ready Mix Division’s business in the Arkansas, Louisiana and
eastern Texas (ArkLaTex) areas that was divested in January 2020.
Pricing improved modestly, with increased shipments and pricing
contributing to the 270-basis-point product gross margin
improvement.
Colorado asphalt shipments increased 34.6
percent versus an extremely weather-challenged prior-year quarter.
Asphalt pricing declined 1.4 percent due to unfavorable product mix
from a higher percentage of shipments to lower-priced municipal
projects. Products and services gross profit of $21.9 million was a
second-quarter record.
Magnesia Specialties Business
Magnesia Specialties product revenues decreased
30.6 percent to $48.9 million. Lime and periclase shipments to the
steel industry declined in response to the COVID-19-induced
shutdown of domestic auto manufacturers. Additionally, domestic and
international demand for chemicals products slowed due to COVID-19.
Lower revenues led to a 420-basis-point decline in product gross
margin to 37.3 percent.
Consolidated
During second-quarter 2020, the Company incurred
$3.4 million in COVID-19-related expenses for enhanced cleaning and
sanitizing protocols across the Company’s operations, which were
recorded in selling, general and administrative expenses.
As previously reported, during the quarter ended
June 30, 2019, the Company identified a prior-period error that
overstated its equity earnings from a nonconsolidated affiliate.
The overstatement was deemed immaterial to any previously-reported
periods and was therefore corrected as an out-of-period expense of
$15.7 million ($12.0 million net of tax) during second-quarter
2019. The pretax noncash adjustment was recorded in other
nonoperating expenses, net, consistent with the recurring
classification of equity earnings from the affiliate.
Liquidity and Capital Resources
Cash provided by operating activities for the
first six months ended June 30 was $373.2 million in 2020 compared
with $333.7 million for the same period in 2019.
Cash paid for property, plant and equipment
additions for the six months ended June 30, 2020 was $175.7
million. For the full year, capital expenditures are expected to
range from $350 million to $375 million.
The Company repaid $300 million of floating rate
notes that matured in May 2020.
The Company had $70.1 million of cash on hand,
along with $967.7 million of unused borrowing capacity on its
existing credit facilities as of June 30, 2020.
Commitment to Enhance Long-Term Shareholder
Value
Martin Marietta is dedicated to disciplined
capital allocation that preserves the Company’s financial
flexibility and further enhances shareholder value. The Company’s
capital allocation priorities remain unchanged and include
value-enhancing acquisitions that promote the successful execution
of the Company’s strategic growth plan, organic capital investment
and the return of cash to shareholders through meaningful and
sustainable dividends and share repurchases.
The Company has returned nearly $1.8 billion to
shareholders in the form of dividend payments and share repurchases
since announcing a 20 million share repurchase authorization in
February 2015. The Company temporarily paused share repurchases in
March 2020 in light of the COVID-19 pandemic. The potential
resumption of repurchase activity remains subject to management’s
discretion. As of June 30, 2020, 13.5 million shares remained under
the current repurchase authorization and 62.3 million shares of
Martin Marietta common stock were outstanding.
Full-Year Outlook
Martin Marietta will reinstate full-year
earnings guidance when it has sufficient visibility. At this time,
the Company cannot reliably forecast the disruptions to the U.S.
economy, the timing and benefits of related governmental stimulus
actions and, more specifically, demand for its products and
services resulting from the COVID-19 pandemic and multiple measures
put in place to minimize the spread of the virus. While it has not
seen significant disruption thus far, Martin Marietta believes its
industry will likely experience lower overall product demand over
the next few quarters due to the COVID-19 pandemic. However, the
magnitude of declines and the speed and rate of recovery will vary
by construction end-use market and geography and will be influenced
by the timing and scope of near-term federal stimulus measures, a
longer-term reauthorized infrastructure bill and other governmental
actions.
Martin Marietta remains confident that the
attractive underlying fundamentals and long-term secular growth
trends in our key geographies, both of which underpinned the
Company’s record 2019 performance, remain intact and will be
evident once again when the U.S. economy stabilizes and
recovers.
Non-GAAP Financial Information
This earnings release contains financial
measures that have not been prepared in accordance with generally
accepted accounting principles (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 2020
earnings results on a conference call and an online web simulcast
today (July 28, 2020). The live broadcast of the Martin Marietta
conference call will begin at 11:00 a.m. Eastern Time. 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. For those investors without
online web access, the conference call may also be accessed by
calling (970) 315-0423, confirmation number 9846546. Additionally,
the Company has posted Q2 2020 Supplemental Information on the
Investor Relations 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 27
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.
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
recent dramatic increases in COVID-19 cases in the Sunbelt 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, Iowa 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 in response
to this decline, particularly in Texas; increasing residential
mortgage 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 the 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, 2019, our Quarterly
Report on Form 10-Q for the period ended March 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, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Products and
services revenues |
|
$ |
1,189.5 |
|
|
$ |
1,196.1 |
|
|
$ |
2,080.5 |
|
|
$ |
2,074.4 |
|
Freight
revenues |
|
|
81.1 |
|
|
|
83.4 |
|
|
|
148.4 |
|
|
|
144.0 |
|
Total revenues |
|
|
1,270.6 |
|
|
|
1,279.5 |
|
|
|
2,228.9 |
|
|
|
2,218.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues - products and services |
|
|
807.4 |
|
|
|
838.3 |
|
|
|
1,554.8 |
|
|
|
1,572.5 |
|
Cost of
revenues - freight |
|
|
82.7 |
|
|
|
84.3 |
|
|
|
151.2 |
|
|
|
146.1 |
|
Total cost of revenues |
|
|
890.1 |
|
|
|
922.6 |
|
|
|
1,706.0 |
|
|
|
1,718.6 |
|
Gross
profit |
|
|
380.5 |
|
|
|
356.9 |
|
|
|
522.9 |
|
|
|
499.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
general & administrative expenses |
|
|
71.2 |
|
|
|
72.4 |
|
|
|
149.9 |
|
|
|
150.7 |
|
Acquisition-related expenses |
|
|
0.5 |
|
|
|
— |
|
|
|
0.8 |
|
|
|
0.2 |
|
Other
operating expenses and (income), net |
|
|
2.4 |
|
|
|
(1.4 |
) |
|
|
8.0 |
|
|
|
(6.2 |
) |
Earnings from operations |
|
|
306.4 |
|
|
|
285.9 |
|
|
|
364.2 |
|
|
|
355.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
31.2 |
|
|
|
33.3 |
|
|
|
61.0 |
|
|
|
66.2 |
|
Other
nonoperating (income) and expenses, net |
|
|
(3.8 |
) |
|
|
13.2 |
|
|
|
(1.9 |
) |
|
|
11.7 |
|
Earnings before income tax expense |
|
|
279.0 |
|
|
|
239.4 |
|
|
|
305.1 |
|
|
|
277.2 |
|
Income tax
expense |
|
|
61.4 |
|
|
|
49.9 |
|
|
|
61.6 |
|
|
|
44.9 |
|
Consolidated
net earnings |
|
|
217.6 |
|
|
|
189.5 |
|
|
|
243.5 |
|
|
|
232.3 |
|
Less: Net
earnings attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net Earnings
Attributable to Martin Marietta Materials, Inc. |
|
$ |
217.6 |
|
|
$ |
189.5 |
|
|
$ |
243.5 |
|
|
$ |
232.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
per common share attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
3.49 |
|
|
$ |
3.02 |
|
|
$ |
3.91 |
|
|
$ |
3.71 |
|
Diluted |
|
$ |
3.49 |
|
|
$ |
3.01 |
|
|
$ |
3.90 |
|
|
$ |
3.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
per common share |
|
$ |
0.55 |
|
|
$ |
0.48 |
|
|
$ |
1.10 |
|
|
$ |
0.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
62.3 |
|
|
|
62.6 |
|
|
|
62.3 |
|
|
|
62.6 |
|
Diluted |
|
|
62.3 |
|
|
|
62.7 |
|
|
|
62.4 |
|
|
|
62.7 |
|
MARTIN
MARIETTA MATERIALS, INC. |
|
Unaudited
Financial Highlights |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Total
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-America Group (1) |
|
$ |
392.3 |
|
|
$ |
414.5 |
|
|
$ |
653.1 |
|
|
$ |
662.6 |
|
Southeast Group |
|
|
142.2 |
|
|
|
137.0 |
|
|
|
263.4 |
|
|
|
256.3 |
|
West Group (1) |
|
|
682.5 |
|
|
|
651.7 |
|
|
|
1,193.1 |
|
|
|
1,149.2 |
|
Total Building Materials Business |
|
|
1,217.0 |
|
|
|
1,203.2 |
|
|
|
2,109.6 |
|
|
|
2,068.1 |
|
Magnesia Specialties |
|
|
53.6 |
|
|
|
76.3 |
|
|
|
119.3 |
|
|
|
150.3 |
|
Total |
|
$ |
1,270.6 |
|
|
$ |
1,279.5 |
|
|
$ |
2,228.9 |
|
|
$ |
2,218.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-America Group (1) |
|
$ |
152.6 |
|
|
$ |
155.4 |
|
|
$ |
190.8 |
|
|
$ |
200.5 |
|
Southeast Group |
|
|
41.0 |
|
|
|
37.8 |
|
|
|
62.4 |
|
|
|
64.0 |
|
West Group (1) |
|
|
165.5 |
|
|
|
135.4 |
|
|
|
224.0 |
|
|
|
182.0 |
|
Total Building Materials Business |
|
|
359.1 |
|
|
|
328.6 |
|
|
|
477.2 |
|
|
|
446.5 |
|
Magnesia Specialties |
|
|
16.9 |
|
|
|
28.1 |
|
|
|
42.1 |
|
|
|
53.6 |
|
Corporate |
|
|
4.5 |
|
|
|
0.2 |
|
|
|
3.6 |
|
|
|
(0.3 |
) |
Total |
|
$ |
380.5 |
|
|
$ |
356.9 |
|
|
$ |
522.9 |
|
|
$ |
499.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-America Group (1) |
|
$ |
17.6 |
|
|
$ |
15.5 |
|
|
$ |
35.4 |
|
|
$ |
31.1 |
|
Southeast Group |
|
|
6.8 |
|
|
|
5.4 |
|
|
|
13.8 |
|
|
|
10.8 |
|
West Group (1) |
|
|
32.7 |
|
|
|
27.7 |
|
|
|
66.0 |
|
|
|
57.0 |
|
Total Building Materials Business |
|
|
57.1 |
|
|
|
48.6 |
|
|
|
115.2 |
|
|
|
98.9 |
|
Magnesia Specialties |
|
|
3.4 |
|
|
|
2.8 |
|
|
|
6.9 |
|
|
|
5.7 |
|
Corporate |
|
|
10.7 |
|
|
|
21.0 |
|
|
|
27.8 |
|
|
|
46.1 |
|
Total |
|
$ |
71.2 |
|
|
$ |
72.4 |
|
|
$ |
149.9 |
|
|
$ |
150.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(Loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-America Group (1) |
|
$ |
136.2 |
|
|
$ |
141.3 |
|
|
$ |
157.0 |
|
|
$ |
171.9 |
|
Southeast Group |
|
|
33.7 |
|
|
|
32.7 |
|
|
|
47.7 |
|
|
|
53.8 |
|
West Group (1) |
|
|
133.2 |
|
|
|
110.6 |
|
|
|
155.9 |
|
|
|
130.9 |
|
Total Building Materials Business |
|
|
303.1 |
|
|
|
284.6 |
|
|
|
360.6 |
|
|
|
356.6 |
|
Magnesia Specialties |
|
|
13.2 |
|
|
|
25.2 |
|
|
|
34.9 |
|
|
|
47.9 |
|
Corporate |
|
|
(9.9 |
) |
|
|
(23.9 |
) |
|
|
(31.3 |
) |
|
|
(49.4 |
) |
Total |
|
$ |
306.4 |
|
|
$ |
285.9 |
|
|
$ |
364.2 |
|
|
$ |
355.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2019 amounts are
restated from amounts presented in the 2019 second-quarter earnings
release to reflect the transfer of the Company's one quarry in the
state of Washington from the Mid-America Group to the West Group to
conform with 2020 presentation. |
MARTIN
MARIETTA MATERIALS, INC. |
Unaudited
Financial Highlights (Continued) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
Total
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
754.9 |
|
|
$ |
757.8 |
|
|
$ |
1,325.2 |
|
|
$ |
1,302.7 |
|
Cement |
|
|
109.5 |
|
|
|
112.3 |
|
|
|
216.1 |
|
|
|
211.4 |
|
Ready mixed concrete |
|
|
245.1 |
|
|
|
241.2 |
|
|
|
434.8 |
|
|
|
452.3 |
|
Asphalt and paving |
|
|
107.0 |
|
|
|
82.2 |
|
|
|
125.1 |
|
|
|
94.6 |
|
Less: Interproduct sales |
|
|
(75.9 |
) |
|
|
(67.8 |
) |
|
|
(129.5 |
) |
|
|
(126.1 |
) |
Subtotal |
|
|
1,140.6 |
|
|
|
1,125.7 |
|
|
|
1,971.7 |
|
|
|
1,934.9 |
|
Freight |
|
|
76.4 |
|
|
|
77.5 |
|
|
|
137.9 |
|
|
|
133.2 |
|
Total Building Materials Business |
|
|
1,217.0 |
|
|
|
1,203.2 |
|
|
|
2,109.6 |
|
|
|
2,068.1 |
|
Magnesia Specialties business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
48.9 |
|
|
|
70.4 |
|
|
|
108.8 |
|
|
|
139.5 |
|
Freight |
|
|
4.7 |
|
|
|
5.9 |
|
|
|
10.5 |
|
|
|
10.8 |
|
Total Magnesia Specialties Business |
|
|
53.6 |
|
|
|
76.3 |
|
|
|
119.3 |
|
|
|
150.3 |
|
Consolidated
total revenues |
|
$ |
1,270.6 |
|
|
$ |
1,279.5 |
|
|
$ |
2,228.9 |
|
|
$ |
2,218.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
268.0 |
|
|
$ |
251.5 |
|
|
$ |
361.3 |
|
|
$ |
349.5 |
|
Cement |
|
|
43.4 |
|
|
|
42.2 |
|
|
|
70.7 |
|
|
|
56.0 |
|
Ready mixed concrete |
|
|
26.1 |
|
|
|
19.0 |
|
|
|
32.0 |
|
|
|
33.5 |
|
Asphalt and paving |
|
|
21.9 |
|
|
|
15.7 |
|
|
|
13.8 |
|
|
|
7.4 |
|
Subtotal |
|
|
359.4 |
|
|
|
328.4 |
|
|
|
477.8 |
|
|
|
446.4 |
|
Freight |
|
|
(0.3 |
) |
|
|
0.2 |
|
|
|
(0.6 |
) |
|
|
0.1 |
|
Total Building Materials Business |
|
|
359.1 |
|
|
|
328.6 |
|
|
|
477.2 |
|
|
|
446.5 |
|
Magnesia Specialties business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
18.2 |
|
|
|
29.2 |
|
|
|
44.3 |
|
|
|
55.8 |
|
Freight |
|
|
(1.3 |
) |
|
|
(1.1 |
) |
|
|
(2.2 |
) |
|
|
(2.2 |
) |
Total Magnesia Specialties Business |
|
|
16.9 |
|
|
|
28.1 |
|
|
|
42.1 |
|
|
|
53.6 |
|
Corporate |
|
|
4.5 |
|
|
|
0.2 |
|
|
|
3.6 |
|
|
|
(0.3 |
) |
Consolidated
gross profit |
|
$ |
380.5 |
|
|
$ |
356.9 |
|
|
$ |
522.9 |
|
|
$ |
499.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN
MARIETTA MATERIALS, INC. |
Balance
Sheet Data |
(In millions) |
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
2020 |
|
|
2019 |
|
|
(Unaudited) |
|
|
(Audited) |
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
70.1 |
|
|
$ |
21.0 |
|
Accounts receivable, net |
|
690.4 |
|
|
|
573.7 |
|
Inventories, net |
|
712.9 |
|
|
|
690.8 |
|
Other current assets |
|
113.7 |
|
|
|
141.2 |
|
Property, plant and equipment, net |
|
5,160.5 |
|
|
|
5,206.0 |
|
Intangible assets, net |
|
2,878.5 |
|
|
|
2,883.6 |
|
Operating lease right-of-use assets, net |
|
468.0 |
|
|
|
481.9 |
|
Other noncurrent assets |
|
132.5 |
|
|
|
133.4 |
|
Total assets |
$ |
10,226.6 |
|
|
$ |
10,131.6 |
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY |
|
|
|
|
|
|
|
Current maturities of long-term debt and short-term facilities |
$ |
130.0 |
|
|
$ |
340.0 |
|
Other current liabilities |
|
465.3 |
|
|
|
498.5 |
|
Long-term debt (excluding current maturities) |
|
2,624.5 |
|
|
|
2,433.6 |
|
Other noncurrent liabilities |
|
1,513.2 |
|
|
|
1,506.2 |
|
Total equity |
|
5,493.6 |
|
|
|
5,353.3 |
|
Total liabilities and equity |
$ |
10,226.6 |
|
|
$ |
10,131.6 |
|
MARTIN
MARIETTA MATERIALS, INC. |
|
Unaudited
Statements of Cash Flows |
|
(In millions) |
|
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
|
2020 |
|
|
2019 |
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Consolidated net earnings |
|
$ |
243.5 |
|
|
$ |
232.3 |
|
Adjustments to reconcile consolidated net earnings to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
193.4 |
|
|
|
182.0 |
|
Stock-based compensation expense |
|
|
19.7 |
|
|
|
22.3 |
|
Gains on divestitures and sales of assets |
|
|
(3.1 |
) |
|
|
(3.9 |
) |
Deferred income taxes, net |
|
|
6.6 |
|
|
|
(6.4 |
) |
Other items, net |
|
|
1.2 |
|
|
|
14.9 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(117.4 |
) |
|
|
(187.1 |
) |
Inventories, net |
|
|
(21.7 |
) |
|
|
15.7 |
|
Accounts payable |
|
|
(0.5 |
) |
|
|
36.6 |
|
Other assets and liabilities, net |
|
|
51.5 |
|
|
|
27.3 |
|
Net Cash
Provided by Operating Activities |
|
|
373.2 |
|
|
|
333.7 |
|
|
|
|
|
|
|
|
|
|
Cash Flows
from Investing Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(175.7 |
) |
|
|
(207.4 |
) |
Acquisitions, net |
|
|
(2.3 |
) |
|
|
— |
|
Proceeds from divestitures and sales of assets |
|
|
17.9 |
|
|
|
6.0 |
|
Investments in life insurance contracts, net |
|
|
(6.2 |
) |
|
|
0.5 |
|
Other investing activities, net |
|
|
(4.5 |
) |
|
|
(1.0 |
) |
Net Cash
Used for Investing Activities |
|
|
(170.8 |
) |
|
|
(201.9 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows
from Financing Activities: |
|
|
|
|
|
|
|
|
Borrowings of long-term debt |
|
|
618.0 |
|
|
|
165.0 |
|
Repayments of long-term debt |
|
|
(637.0 |
) |
|
|
(170.0 |
) |
Payments on finance lease obligations |
|
|
(1.6 |
) |
|
|
(1.8 |
) |
Debt issuance costs |
|
|
(1.7 |
) |
|
|
— |
|
Distributions to owners of noncontrolling interests |
|
|
— |
|
|
|
(0.6 |
) |
Dividends paid |
|
|
(69.4 |
) |
|
|
(60.6 |
) |
Repurchases of common stock |
|
|
(50.0 |
) |
|
|
(50.0 |
) |
Proceeds from exercise of stock options |
|
|
1.3 |
|
|
|
7.1 |
|
Shares withheld for employees' income tax obligations |
|
|
(12.9 |
) |
|
|
(12.2 |
) |
Net Cash
Used for Financing Activities |
|
|
(153.3 |
) |
|
|
(123.1 |
) |
|
|
|
|
|
|
|
|
|
Net Increase
in Cash and Cash Equivalents |
|
|
49.1 |
|
|
|
8.7 |
|
Cash and
Cash Equivalents, beginning of period |
|
|
21.0 |
|
|
|
44.9 |
|
Cash and
Cash Equivalents, end of period |
|
$ |
70.1 |
|
|
$ |
53.6 |
|
MARTIN MARIETTA MATERIALS,
INC.Unaudited Operational Highlights
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, 2020 |
|
June 30, 2020 |
|
|
Volume |
|
Pricing |
|
Volume |
|
Pricing |
Volume/Pricing Variance
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-America Group (2) |
|
(7.2 |
) |
% |
|
|
2.3 |
% |
|
|
(3.0 |
) |
% |
|
|
2.0 |
% |
Southeast Group |
|
3.0 |
|
% |
|
|
0.7 |
% |
|
|
0.1 |
|
% |
|
|
2.6 |
% |
West Group (2) |
|
(1.0 |
) |
% |
|
|
5.5 |
% |
|
|
0.6 |
|
% |
|
|
4.7 |
% |
Total Aggregates Product Line (3) |
|
(3.7 |
) |
% |
|
|
3.3 |
% |
|
|
(1.2 |
) |
% |
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
Shipments (tons in millions) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Mid-America Group (2) |
|
25.6 |
|
|
|
|
27.6 |
|
|
|
42.1 |
|
|
|
|
43.3 |
|
Southeast Group |
|
7.4 |
|
|
|
|
7.2 |
|
|
|
13.6 |
|
|
|
|
13.6 |
|
West Group (2) |
|
18.2 |
|
|
|
|
18.4 |
|
|
|
33.8 |
|
|
|
|
33.6 |
|
Total Aggregates Product Line (3) |
|
51.2 |
|
|
|
|
53.2 |
|
|
|
89.5 |
|
|
|
|
90.5 |
|
|
|
(1) |
Volume/pricing
variances reflect the percentage increase from the comparable
period in the prior year. |
(2) |
Reflects the
reclassification of 2019 shipments, when compared with amounts
presented in the 2019 second-quarter earnings release, to reflect
the transfer of the Company's one quarry in the state of Washington
from the Mid-America Group to the West Group to conform with 2020
presentation. |
(3) |
Aggregates Product
Line includes acquisitions from the date of acquisition and
divestitures through the date of disposal. |
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Shipments (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates
tons - external customers |
|
|
47.9 |
|
|
|
50.5 |
|
|
|
83.9 |
|
|
|
85.8 |
|
Internal
aggregates tons used in other product lines |
|
|
3.3 |
|
|
|
2.7 |
|
|
|
5.6 |
|
|
|
4.7 |
|
Total
aggregates tons |
|
|
51.2 |
|
|
|
53.2 |
|
|
|
89.5 |
|
|
|
90.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement tons
- external customers |
|
|
0.7 |
|
|
|
0.7 |
|
|
|
1.3 |
|
|
|
1.3 |
|
Internal
cement tons used in other product lines |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.6 |
|
|
|
0.6 |
|
Total cement
tons |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
1.9 |
|
|
|
1.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready mixed
concrete - cubic yards |
|
|
2.2 |
|
|
|
2.2 |
|
|
|
3.8 |
|
|
|
4.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asphalt tons
- external customers |
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.3 |
|
|
|
0.3 |
|
Internal
asphalt tons used in road paving business |
|
|
0.9 |
|
|
|
0.6 |
|
|
|
1.0 |
|
|
|
0.6 |
|
Total
asphalt tons |
|
|
1.1 |
|
|
|
0.8 |
|
|
|
1.3 |
|
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit sales price by product line |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(including internal sales): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates
(per ton) |
|
$ |
14.66 |
|
|
$ |
14.18 |
|
|
$ |
14.72 |
|
|
$ |
14.28 |
|
Cement (per
ton) |
|
$ |
114.34 |
|
|
$ |
114.17 |
|
|
$ |
114.06 |
|
|
$ |
112.63 |
|
Ready mixed
concrete (per cubic yard) |
|
$ |
112.89 |
|
|
$ |
111.39 |
|
|
$ |
113.53 |
|
|
$ |
110.40 |
|
Asphalt (per
ton) |
|
$ |
46.54 |
|
|
$ |
47.22 |
|
|
$ |
46.38 |
|
|
$ |
47.08 |
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures (Dollars
in millions)
Earnings before interest; income taxes;
depreciation, depletion and amortization expense and the noncash
earnings/loss from nonconsolidated equity affiliates (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, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net earnings attributable to Martin Marietta |
|
$ |
217.6 |
|
|
$ |
189.5 |
|
|
$ |
243.5 |
|
|
$ |
232.3 |
|
Add
back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
31.0 |
|
|
|
33.2 |
|
|
|
60.7 |
|
|
|
66.0 |
|
Income tax expense for controlling interests |
|
|
61.4 |
|
|
|
49.9 |
|
|
|
61.5 |
|
|
|
44.9 |
|
Depreciation, depletion and amortization expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and noncash earnings/loss from nonconsolidated
equity affiliates |
|
|
97.0 |
|
|
|
105.9 |
|
|
|
190.3 |
|
|
|
193.5 |
|
Adjusted
EBITDA |
|
$ |
407.0 |
|
|
$ |
378.5 |
|
|
$ |
556.0 |
|
|
$ |
536.7 |
|
The following table presents ready mixed
concrete shipment data and volume variance excluding the Arkansas,
Louisiana and eastern Texas ready mix business ("ArkLaTex
business") from the periods of Martin Marietta's ownership to
provide a more comparable analysis of ready mixed concrete volume
variance:
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Shipments |
|
(Cubic Yards in
Millions) |
|
Reported ready mixed concrete shipments |
|
|
2.2 |
|
|
|
2.2 |
|
|
|
3.8 |
|
|
|
4.1 |
|
Less: Ready
mixed concrete shipments for the ArkLaTex |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
business during periods of Martin Marietta ownership |
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.3 |
) |
Adjusted
ready mixed concrete shipments |
|
|
2.2 |
|
|
|
2.0 |
|
|
|
3.8 |
|
|
|
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
ready mixed concrete volume variance excluding |
|
shipments for the ArkLaTex business |
|
|
8.7 |
% |
|
|
|
|
|
|
0.1 |
% |
|
|
|
|
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