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, 2020.
Highlights
include:
|
Quarter Ended September 30, |
|
($ in
millions, except per share) |
2020 |
|
|
2019 |
|
Total revenues 1 |
$ |
1,321.4 |
|
|
$ |
1,420.2 |
|
Products and services revenues
2 |
$ |
1,240.7 |
|
|
$ |
1,323.2 |
|
Building Materials business |
$ |
1,185.5 |
|
|
$ |
1,263.9 |
|
Magnesia Specialties business |
$ |
55.2 |
|
|
$ |
59.3 |
|
Gross profit |
$ |
404.5 |
|
|
$ |
420.6 |
|
Earnings from operations
4 |
$ |
400.6 |
|
|
$ |
345.3 |
|
Net earnings attributable to
Martin Marietta 5 |
$ |
294.4 |
|
|
$ |
248.6 |
|
Adjusted EBITDA 3, 4 |
$ |
501.7 |
|
|
$ |
439.1 |
|
Earnings per diluted share
5 |
$ |
4.71 |
|
|
$ |
3.96 |
|
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; income taxes;
depreciation, depletion and amortization; and the 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.4 2020 earnings from operations and Adjusted EBITDA
included $69.9 million of gains on surplus land sales and divested
assets. These gains are nonrecurring in nature.5 2020 net earnings
attributable to Martin Marietta and earnings per diluted share
included $54.1 million, or $0.87 per diluted share, of gains on
surplus land sales and divested assets. These gains are
nonrecurring in nature.
Ward Nye, Chairman and CEO of Martin Marietta,
stated, “Building on our strong business execution in the first
half of the year, Martin Marietta again delivered outstanding
financial and operational performance. The Company expanded
consolidated gross margin 100 basis points to 30.6 percent, a new
record, and generated Adjusted EBITDA of $501.7 million (inclusive
of nonrecurring gains) in the third quarter. Increased pricing
across all product lines and disciplined cost management helped
offset the anticipated decrease in shipment volumes driven by the
COVID-19 pandemic. As part of our stated aim and strategy to
capture value from excess, nonoperating properties, we sold certain
non-core land and assets, generating a record $69.9 million in
gains. We also achieved record year-to-date profitability, as
measured by both gross profit and Adjusted EBITDA, and the best
safety performance in Martin Marietta’s history. These results
demonstrate the resiliency of our business and our team’s
commitment to operational and financial excellence. We expect our
full-year 2020 Adjusted EBITDA to range from $1.35 billion to $1.37
billion (inclusive of nonrecurring gains).”
Mr. Nye concluded, “We are confident that
favorable pricing trends will continue, supported by our
locally-driven pricing strategy, and that the attractive underlying
fundamentals and long-term secular growth trends across our three
primary end use markets and key geographies will remain intact.
However, we anticipate product demand to remain modest through the
first half of 2021 due to COVID-19 and related governmental
actions. Importantly, as we continue to navigate today’s
challenging environment, Martin Marietta remains well-positioned
geographically, financially and otherwise to drive long-term
sustainable growth and shareholder value. With Martin Marietta’s
collective commitment to our strategic priorities, disciplined
pricing and operational excellence, we are confident in the
fundamental strength and underlying drivers of our business to
capitalize on the emerging growth trends that are expected to
support steady and sustainable construction activity over the long
term.”
Third-Quarter Operating Results
|
Quarter Ended September 30, 2020 |
|
($ in millions) |
Revenues |
|
Gross profit (loss) |
|
Gross margin |
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
Aggregates |
$ |
766.9 |
|
$ |
279.1 |
|
|
36.4 |
% |
Cement |
|
115.6 |
|
|
46.5 |
|
|
40.2 |
% |
Ready mixed concrete |
|
254.6 |
|
|
24.7 |
|
|
9.7 |
% |
Asphalt and paving |
|
129.8 |
|
|
32.6 |
|
|
25.1 |
% |
Less: interproduct revenues |
|
(81.4 |
) |
|
— |
|
|
— |
|
Products and services |
|
1,185.5 |
|
|
382.9 |
|
|
32.3 |
% |
Freight |
|
75.0 |
|
|
0.9 |
|
NM |
|
Total Building Materials business |
|
1,260.5 |
|
|
383.8 |
|
|
30.4 |
% |
Magnesia Specialties business: |
|
|
|
|
|
|
|
|
|
Products and services |
|
55.2 |
|
|
21.0 |
|
|
38.0 |
% |
Freight |
|
5.7 |
|
|
(1.0 |
) |
NM |
|
Total Magnesia Specialties business |
|
60.9 |
|
|
20.0 |
|
|
32.9 |
% |
Corporate |
|
— |
|
|
0.7 |
|
NM |
|
Total |
$ |
1,321.4 |
|
$ |
404.5 |
|
|
30.6 |
% |
|
Quarter Ended September 30, 2019 |
|
($ in millions) |
Revenues |
|
Gross profit (loss) |
|
Gross margin |
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
Aggregates |
$ |
818.7 |
|
$ |
287.1 |
|
|
35.1 |
% |
Cement |
|
119.6 |
|
|
48.5 |
|
|
40.6 |
% |
Ready mixed concrete |
|
271.8 |
|
|
29.0 |
|
|
10.6 |
% |
Asphalt and paving |
|
131.1 |
|
|
31.1 |
|
|
23.7 |
% |
Less: interproduct revenues |
|
(77.3 |
) |
|
— |
|
|
— |
|
Products and services |
|
1,263.9 |
|
|
395.7 |
|
|
31.3 |
% |
Freight |
|
91.5 |
|
|
0.2 |
|
NM |
|
Total Building Materials business |
|
1,355.4 |
|
|
395.9 |
|
|
29.2 |
% |
Magnesia Specialties business: |
|
|
|
|
|
|
|
|
|
Products and services |
|
59.3 |
|
|
24.0 |
|
|
40.4 |
% |
Freight |
|
5.5 |
|
|
(1.0 |
) |
NM |
|
Total Magnesia Specialties business |
|
64.8 |
|
|
23.0 |
|
|
35.5 |
% |
Corporate |
|
— |
|
|
1.7 |
|
NM |
|
Total |
$ |
1,420.2 |
|
$ |
420.6 |
|
|
29.6 |
% |
(All comparisons are versus the prior-year quarter unless noted
otherwise)
Building Materials Business
Effective July 1, 2020, in connection with
streamlining its operating divisions, the Company also changed its
reportable segments for its Building Materials business to: the
East Group, whose operations were previously reported in the
Mid-America and Southeast; and the West Group, which reflects no
significant changes.
The Building Materials business achieved
third-quarter products and services revenues of $1.2 billion, a 6.2
percent decrease, and product gross profit of $382.9 million, a 3.2
percent decrease.
Consistent with management’s expectations, the
Building Materials business experienced shipment volume headwinds
from the broader COVID-19-induced economic slowdown and a
challenging prior-year comparison. Pricing increased across all
product lines.
Aggregates
Third-quarter aggregates shipments declined 8.7
percent compared with the relatively robust prior-year quarter.
Aggregates shipments to the infrastructure and nonresidential
end-use markets declined, while shipments to the residential market
increased slightly.
Aggregates pricing improved 2.7 percent, or 4.0
percent on a mix-adjusted basis. Full-year 2020 pricing is expected
to increase 3 percent to 4 percent.
By segment:
- East Group shipments decreased 8.8
percent, reflecting weather-delayed projects in the Mid-Atlantic
and Southeast, anticipated lower infrastructure shipments in
portions of North Carolina and reduced wind energy construction
activity in the Midwest. Pricing increased 4.4 percent with solid
improvements in both the East and Central divisions.
- West Group shipments decreased 8.4
percent, primarily due to wet weather in Texas and reduced
energy-sector shipments. Pricing decreased 0.6 percent, as a lower
percentage of higher-priced commercial rail-shipped volumes in
Houston offset price increases in the Company’s other Texas markets
and Colorado. On a mix-adjusted basis, West Group pricing increased
3.9 percent.
Despite lower shipments, third-quarter
aggregates gross profit per ton shipped improved 6.5 percent and
product gross margin expanded 130 basis points to 36.4 percent, an
all-time record, driven by increased pricing and lower production
costs, including diesel fuel.
Cement
While underlying Texas demand remains resilient,
third-quarter cement shipments decreased 3.9 percent, driven
primarily by the decline in energy-sector activity resulting from
low oil prices. Pricing improved 0.9 percent with strength in North
Texas, Houston and portions of Central Texas offset by lower sales
of higher-priced oil-well specialty cement products into West
Texas. On a mix-adjusted basis, cement pricing increased 3.4
percent. The cement business reported product gross margin of 40.2
percent, as improved kiln reliability from prior-period investments
and lower fuel costs limited the decline to 40 basis points.
Downstream businesses
Ready mixed concrete shipments decreased 4.0
percent, excluding the impact of acquired operations and
third-quarter 2019 shipments from the Southwest Division’s concrete
business in the Arkansas, Louisiana and Eastern Texas, generally
known as ArkLaTex, areas that was divested in January 2020. Pricing
improved 2.2 percent. Product gross margin declined 90 basis points
to 9.7 percent, driven primarily by higher raw material costs.
Colorado asphalt shipments decreased 2.8
percent. Asphalt pricing increased 6.2 percent due to favorable
product mix. Asphalt and paving gross profit of $32.6 million was
an all-time record.
Magnesia Specialties Business
Magnesia Specialties third-quarter product
revenues decreased 7.0 percent to $55.2 million, reflecting lower
demand for chemicals and lime products. Lower revenues resulted in
a 240-basis-point decline in product gross margin to 38.0
percent.
Consolidated
During the third-quarter of 2020, the Company
incurred $1.3 million in COVID-19-related expenses for enhanced
personal protective equipment as well as cleaning and sanitizing
protocols across its operations, which were recorded in selling,
general and administrative expenses.
For the three months ended September 30, 2020,
other operating income, net, included $69.9 million of gains on
surplus land sales and divested assets. These gains are
nonrecurring in nature.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities for the
nine months ended September 30 was $684.0 million in 2020 compared
with $649.8 million for the same period in 2019.
Cash paid for property, plant and equipment
additions for the nine months ended September 30, 2020 was $250.8
million. For the full year, capital expenditures are expected to
range from $350 million to $400 million.
The Company extended the maturity of its $400
million trade receivable securitization facility by one year to
September 22, 2021.
Through dividend payments and share repurchases,
the Company has returned $154.8 million to shareholders in the
first nine months of 2020 and nearly $1.8 billion 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.
The Company had $193.7 million of cash, cash
equivalents and restricted cash on hand, along with nearly $1.1
billion of unused borrowing capacity on its existing credit
facilities, as of September 30, 2020.
Outlook
Martin Marietta anticipates continued
industry-wide fluctuations in product demand over the next few
quarters due to the COVID-19 pandemic and related governmental
actions. The Company remains confident that its favorable pricing
trends are sustainable and durable, aided in part by the continued
success of its locally-driven pricing strategy.
Martin Marietta believes that the attractive
underlying fundamentals and long-term secular growth trends in its
key geographies, both of which underpinned the Company’s record
2019 and year-to-date 2020 performance, remain intact and will
again be evident as 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 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 2020
earnings results on a conference call and an online web simulcast
today (October 29, 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 7884837. Additionally,
the Company has posted Q3 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.
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
recent dramatic increases in COVID-19 cases in the United States
and the extent that geography of outbreak primarily matches the
regions in which the Company’s Building Materials business
principally operates; the resiliency and potential declines of the
Company’s various construction end-use markets; the potential
negative impact of the COVID-19 pandemic on the Company’s ability
to continue supplying heavy-side building materials and related
services at normal levels or at all in the Company’s key regions;
the duration, impact and severity of the impacts of the COVID-19
pandemic on the Company, including the markets in which we do
business, our suppliers, customers or other business partners as
well as on our employees; the economic impact of government
responses to the pandemic; the performance of the United States
economy, including the impact on the economy of the COVID-19
pandemic and governmental orders restricting activities imposed to
prevent further outbreak of COVID-19; shipment declines resulting
from economic events beyond the Company’s control; a widespread
decline in aggregates pricing, including a decline in aggregates
shipment volume negatively affecting aggregates price; the history
of both cement and ready mixed concrete being subject to
significant changes in supply, demand and price fluctuations; the
termination, capping and/or reduction or suspension of the federal
and/or state gasoline tax(es) or other revenue related to public
construction; the level and timing of federal, state or local
transportation or infrastructure or public projects funding, most
particularly in Texas, Colorado, North Carolina, Georgia, 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 and West Virginia;
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
Reports on Form 10-Q for the periods ended March 31, 2020 and June
30, 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 |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Products and services
revenues |
|
$ |
1,240.7 |
|
|
$ |
1,323.2 |
|
|
$ |
3,321.2 |
|
|
$ |
3,397.6 |
|
Freight revenues |
|
|
80.7 |
|
|
|
97.0 |
|
|
|
229.1 |
|
|
|
241.1 |
|
Total revenues |
|
|
1,321.4 |
|
|
|
1,420.2 |
|
|
|
3,550.3 |
|
|
|
3,638.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues - products
and services |
|
|
836.1 |
|
|
|
901.8 |
|
|
|
2,390.9 |
|
|
|
2,474.4 |
|
Cost of revenues -
freight |
|
|
80.8 |
|
|
|
97.8 |
|
|
|
232.0 |
|
|
|
243.9 |
|
Total cost of revenues |
|
|
916.9 |
|
|
|
999.6 |
|
|
|
2,622.9 |
|
|
|
2,718.3 |
|
Gross profit |
|
|
404.5 |
|
|
|
420.6 |
|
|
|
927.4 |
|
|
|
920.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling general &
administrative expenses |
|
|
71.1 |
|
|
|
78.2 |
|
|
|
221.0 |
|
|
|
228.9 |
|
Acquisition-related
expenses |
|
|
0.4 |
|
|
|
— |
|
|
|
1.2 |
|
|
|
0.2 |
|
Other operating income,
net |
|
|
(67.6 |
) |
|
|
(2.9 |
) |
|
|
(59.6 |
) |
|
|
(9.1 |
) |
Earnings from operations |
|
|
400.6 |
|
|
|
345.3 |
|
|
|
764.8 |
|
|
|
700.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
28.7 |
|
|
|
32.4 |
|
|
|
89.7 |
|
|
|
98.7 |
|
Other nonoperating (income)
and expenses, net |
|
|
(4.0 |
) |
|
|
(1.9 |
) |
|
|
(5.9 |
) |
|
|
9.7 |
|
Earnings before income tax expense |
|
|
375.9 |
|
|
|
314.8 |
|
|
|
681.0 |
|
|
|
592.0 |
|
Income tax expense |
|
|
81.5 |
|
|
|
66.2 |
|
|
|
143.0 |
|
|
|
111.1 |
|
Consolidated net earnings |
|
|
294.4 |
|
|
|
248.6 |
|
|
|
538.0 |
|
|
|
480.9 |
|
Less: Net earnings
attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net Earnings Attributable to
Martin Marietta Materials, Inc. |
|
$ |
294.4 |
|
|
$ |
248.6 |
|
|
$ |
538.0 |
|
|
$ |
480.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share
attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
4.72 |
|
|
$ |
3.97 |
|
|
$ |
8.63 |
|
|
$ |
7.67 |
|
Diluted |
|
$ |
4.71 |
|
|
$ |
3.96 |
|
|
$ |
8.61 |
|
|
$ |
7.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share |
|
$ |
0.57 |
|
|
$ |
0.55 |
|
|
$ |
1.67 |
|
|
$ |
1.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
62.3 |
|
|
|
62.5 |
|
|
|
62.3 |
|
|
|
62.6 |
|
Diluted |
|
|
62.4 |
|
|
|
62.7 |
|
|
|
62.4 |
|
|
|
62.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Financial Highlights |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group (1) |
|
$ |
549.3 |
|
|
$ |
582.0 |
|
|
$ |
1,465.9 |
|
|
$ |
1,500.8 |
|
West Group (1) |
|
|
711.2 |
|
|
|
773.4 |
|
|
|
1,904.2 |
|
|
|
1,922.7 |
|
Total Building Materials Business |
|
|
1,260.5 |
|
|
|
1,355.4 |
|
|
|
3,370.1 |
|
|
|
3,423.5 |
|
Magnesia Specialties |
|
|
60.9 |
|
|
|
64.8 |
|
|
|
180.2 |
|
|
|
215.2 |
|
Total |
|
$ |
1,321.4 |
|
|
$ |
1,420.2 |
|
|
$ |
3,550.3 |
|
|
$ |
3,638.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group (1) |
|
$ |
206.3 |
|
|
$ |
210.8 |
|
|
$ |
459.4 |
|
|
$ |
475.3 |
|
West Group (1) |
|
|
177.5 |
|
|
|
185.1 |
|
|
|
401.6 |
|
|
|
367.1 |
|
Total Building Materials Business |
|
|
383.8 |
|
|
|
395.9 |
|
|
|
861.0 |
|
|
|
842.4 |
|
Magnesia Specialties |
|
|
20.0 |
|
|
|
23.0 |
|
|
|
62.1 |
|
|
|
76.6 |
|
Corporate |
|
|
0.7 |
|
|
|
1.7 |
|
|
|
4.3 |
|
|
|
1.4 |
|
Total |
|
$ |
404.5 |
|
|
$ |
420.6 |
|
|
$ |
927.4 |
|
|
$ |
920.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group (1) |
|
$ |
24.9 |
|
|
$ |
21.3 |
|
|
$ |
74.0 |
|
|
$ |
63.2 |
|
West Group (1) |
|
|
34.2 |
|
|
|
29.3 |
|
|
|
100.2 |
|
|
|
86.2 |
|
Total Building Materials Business |
|
|
59.1 |
|
|
|
50.6 |
|
|
|
174.2 |
|
|
|
149.4 |
|
Magnesia Specialties |
|
|
3.6 |
|
|
|
2.8 |
|
|
|
10.4 |
|
|
|
8.5 |
|
Corporate |
|
|
8.4 |
|
|
|
24.8 |
|
|
|
36.4 |
|
|
|
71.0 |
|
Total |
|
$ |
71.1 |
|
|
$ |
78.2 |
|
|
$ |
221.0 |
|
|
$ |
228.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group (1) |
|
$ |
181.4 |
|
|
$ |
190.8 |
|
|
$ |
386.1 |
|
|
$ |
416.5 |
|
West Group (1), (2) |
|
|
212.3 |
|
|
|
156.8 |
|
|
|
368.2 |
|
|
|
287.7 |
|
Total Building Materials Business |
|
|
393.7 |
|
|
|
347.6 |
|
|
|
754.3 |
|
|
|
704.2 |
|
Magnesia Specialties |
|
|
16.4 |
|
|
|
20.1 |
|
|
|
51.2 |
|
|
|
68.0 |
|
Corporate |
|
|
(9.5 |
) |
|
|
(22.4 |
) |
|
|
(40.7 |
) |
|
|
(71.8 |
) |
Total |
|
$ |
400.6 |
|
|
$ |
345.3 |
|
|
$ |
764.8 |
|
|
$ |
700.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2019 amounts
are restated from amounts presented in the 2019 third-quarter
earnings release to reflect the transfer of the Company's one
quarry in the state of Washington from the East Group to the West
Group to conform with 2020 presentation. |
(2) 2020 amounts
included $69.9 million of nonrecurring gains on surplus land sales
and divested assets. |
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Financial Highlights (Continued) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
766.9 |
|
|
$ |
818.7 |
|
|
$ |
2,092.1 |
|
|
$ |
2,121.4 |
|
Cement |
|
|
115.6 |
|
|
|
119.6 |
|
|
|
331.7 |
|
|
|
331.0 |
|
Ready mixed concrete |
|
|
254.6 |
|
|
|
271.8 |
|
|
|
689.4 |
|
|
|
724.2 |
|
Asphalt and paving |
|
|
129.8 |
|
|
|
131.1 |
|
|
|
254.9 |
|
|
|
225.7 |
|
Less: Interproduct sales |
|
|
(81.4 |
) |
|
|
(77.3 |
) |
|
|
(210.9 |
) |
|
|
(203.6 |
) |
Subtotal |
|
|
1,185.5 |
|
|
|
1,263.9 |
|
|
|
3,157.2 |
|
|
|
3,198.7 |
|
Freight |
|
|
75.0 |
|
|
|
91.5 |
|
|
|
212.9 |
|
|
|
224.8 |
|
Total Building Materials Business |
|
|
1,260.5 |
|
|
|
1,355.4 |
|
|
|
3,370.1 |
|
|
|
3,423.5 |
|
Magnesia Specialties business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
55.2 |
|
|
|
59.3 |
|
|
|
164.0 |
|
|
|
198.9 |
|
Freight |
|
|
5.7 |
|
|
|
5.5 |
|
|
|
16.2 |
|
|
|
16.3 |
|
Total Magnesia Specialties Business |
|
|
60.9 |
|
|
|
64.8 |
|
|
|
180.2 |
|
|
|
215.2 |
|
Consolidated total
revenues |
|
$ |
1,321.4 |
|
|
$ |
1,420.2 |
|
|
$ |
3,550.3 |
|
|
$ |
3,638.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
279.1 |
|
|
$ |
287.1 |
|
|
$ |
640.4 |
|
|
$ |
636.5 |
|
Cement |
|
|
46.5 |
|
|
|
48.5 |
|
|
|
117.2 |
|
|
|
104.5 |
|
Ready mixed concrete |
|
|
24.7 |
|
|
|
29.0 |
|
|
|
56.7 |
|
|
|
62.5 |
|
Asphalt and paving |
|
|
32.6 |
|
|
|
31.1 |
|
|
|
46.4 |
|
|
|
38.5 |
|
Subtotal |
|
|
382.9 |
|
|
|
395.7 |
|
|
|
860.7 |
|
|
|
842.0 |
|
Freight |
|
|
0.9 |
|
|
|
0.2 |
|
|
|
0.3 |
|
|
|
0.4 |
|
Total Building Materials Business |
|
|
383.8 |
|
|
|
395.9 |
|
|
|
861.0 |
|
|
|
842.4 |
|
Magnesia Specialties business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
21.0 |
|
|
|
24.0 |
|
|
|
65.3 |
|
|
|
79.8 |
|
Freight |
|
|
(1.0 |
) |
|
|
(1.0 |
) |
|
|
(3.2 |
) |
|
|
(3.2 |
) |
Total Magnesia Specialties Business |
|
|
20.0 |
|
|
|
23.0 |
|
|
|
62.1 |
|
|
|
76.6 |
|
Corporate |
|
|
0.7 |
|
|
|
1.7 |
|
|
|
4.3 |
|
|
|
1.4 |
|
Consolidated gross profit |
|
$ |
404.5 |
|
|
$ |
420.6 |
|
|
$ |
927.4 |
|
|
$ |
920.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
Balance Sheet Data |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2020 |
|
2019 |
|
|
(Unaudited) |
|
(Audited) |
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
116.6 |
|
|
$ |
21.0 |
|
Restricted cash |
|
|
77.1 |
|
|
|
— |
|
Accounts receivable, net |
|
|
686.3 |
|
|
|
573.7 |
|
Inventories, net |
|
|
714.5 |
|
|
|
690.8 |
|
Other current assets |
|
|
58.3 |
|
|
|
141.2 |
|
Property, plant and equipment, net |
|
|
5,180.5 |
|
|
|
5,206.0 |
|
Intangible assets, net |
|
|
2,918.8 |
|
|
|
2,883.6 |
|
Operating lease right-of-use assets, net |
|
|
469.2 |
|
|
|
481.9 |
|
Other noncurrent assets |
|
|
214.1 |
|
|
|
133.4 |
|
Total assets |
|
$ |
10,435.4 |
|
|
$ |
10,131.6 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current maturities of long-term debt and short-term facilities |
|
$ |
— |
|
|
$ |
340.0 |
|
Other current liabilities |
|
|
506.2 |
|
|
|
498.5 |
|
Long-term debt (excluding current maturities) |
|
|
2,625.2 |
|
|
|
2,433.6 |
|
Other noncurrent liabilities |
|
|
1,545.1 |
|
|
|
1,506.2 |
|
Total equity |
|
|
5,758.9 |
|
|
|
5,353.3 |
|
Total liabilities and equity |
|
$ |
10,435.4 |
|
|
$ |
10,131.6 |
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Statements of Cash Flows |
(In millions) |
|
|
Nine Months Ended |
|
|
September 30, |
|
|
2020 |
|
2019 |
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Consolidated net earnings |
|
$ |
538.0 |
|
|
$ |
480.9 |
|
Adjustments to reconcile consolidated net earnings to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
292.2 |
|
|
|
277.0 |
|
Stock-based compensation expense |
|
|
22.4 |
|
|
|
28.4 |
|
Gains on divestitures and sales of assets |
|
|
(71.2 |
) |
|
|
(5.0 |
) |
Deferred income taxes, net |
|
|
24.8 |
|
|
|
18.4 |
|
Other items, net |
|
|
0.8 |
|
|
|
11.4 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(104.5 |
) |
|
|
(240.6 |
) |
Inventories, net |
|
|
(22.6 |
) |
|
|
13.6 |
|
Accounts payable |
|
|
(0.8 |
) |
|
|
65.9 |
|
Other assets and liabilities, net |
|
|
4.9 |
|
|
|
(0.2 |
) |
Net Cash Provided by Operating
Activities |
|
|
684.0 |
|
|
|
649.8 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(250.8 |
) |
|
|
(283.0 |
) |
Acquisitions, net |
|
|
(64.0 |
) |
|
|
— |
|
Proceeds from divestitures and sales of assets |
|
|
141.2 |
|
|
|
7.0 |
|
Investments in life insurance contracts, net |
|
|
(12.7 |
) |
|
|
0.5 |
|
Other investing activities, net |
|
|
(5.4 |
) |
|
|
(1.2 |
) |
Net Cash Used for Investing
Activities |
|
|
(191.7 |
) |
|
|
(276.7 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Financing
Activities: |
|
|
|
|
|
|
|
|
Borrowings of long-term debt |
|
|
628.1 |
|
|
|
245.0 |
|
Repayments of long-term debt |
|
|
(777.0 |
) |
|
|
(445.0 |
) |
Payments on finance lease obligations |
|
|
(2.3 |
) |
|
|
(2.7 |
) |
Debt issuance costs |
|
|
(2.0 |
) |
|
|
— |
|
Distributions to owners of noncontrolling interests |
|
|
— |
|
|
|
(0.6 |
) |
Dividends paid |
|
|
(104.8 |
) |
|
|
(95.2 |
) |
Repurchases of common stock |
|
|
(50.0 |
) |
|
|
(57.3 |
) |
Proceeds from exercise of stock options |
|
|
1.4 |
|
|
|
12.3 |
|
Shares withheld for employees' income tax obligations |
|
|
(13.0 |
) |
|
|
(25.4 |
) |
Net Cash Used for Financing
Activities |
|
|
(319.6 |
) |
|
|
(368.9 |
) |
|
|
|
|
|
|
|
|
|
Net Increase in Cash, Cash
Equivalents and Restricted Cash |
|
|
172.7 |
|
|
|
4.2 |
|
Cash, Cash Equivalents and
Restricted Cash, beginning of period |
|
|
21.0 |
|
|
|
44.9 |
|
Cash, Cash Equivalents and
Restricted Cash, end of period |
|
$ |
193.7 |
|
|
$ |
49.1 |
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS,
INC.Unaudited Operational Highlights
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, 2020 |
|
September 30, 2020 |
|
|
Volume |
|
Pricing |
|
Volume |
|
Pricing |
Volume/Pricing
Variance (1) |
|
|
|
|
|
|
|
|
East Group (2) |
|
(8.8 |
)% |
|
4.4 |
% |
|
(4.8 |
)% |
|
3.2 |
% |
West Group (2) |
|
(8.4 |
)% |
|
(0.6 |
)% |
|
(2.7 |
)% |
|
2.6 |
% |
Total Aggregates Product Line
(3) |
|
(8.7 |
)% |
|
2.7 |
% |
|
(4.1 |
)% |
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
Shipments
(tons in millions) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
East Group (2) |
|
33.7 |
|
|
37.0 |
|
|
89.4 |
|
|
93.9 |
|
West Group (2) |
|
18.1 |
|
|
19.7 |
|
|
51.8 |
|
|
53.3 |
|
Total Aggregates Product Line
(3) |
|
51.8 |
|
|
56.7 |
|
|
141.2 |
|
|
147.2 |
|
(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
third-quarter earnings release, of the Company's one quarry in the
state of Washington from the East 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 |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Shipments (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates tons - external
customers |
|
|
48.1 |
|
|
|
53.6 |
|
|
|
131.9 |
|
|
|
139.4 |
|
Internal aggregates tons used
in other product lines |
|
|
3.7 |
|
|
|
3.1 |
|
|
|
9.3 |
|
|
|
7.8 |
|
Total aggregates tons |
|
|
51.8 |
|
|
|
56.7 |
|
|
|
141.2 |
|
|
|
147.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement tons - external
customers |
|
|
0.7 |
|
|
|
0.8 |
|
|
|
2.0 |
|
|
|
2.0 |
|
Internal cement tons used in
other product lines |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.9 |
|
|
|
0.9 |
|
Total cement tons |
|
|
1.0 |
|
|
|
1.1 |
|
|
|
2.9 |
|
|
|
2.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready mixed concrete - cubic
yards |
|
|
2.2 |
|
|
|
2.4 |
|
|
|
6.1 |
|
|
|
6.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asphalt tons - external
customers |
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.6 |
|
|
|
0.7 |
|
Internal asphalt tons used in
road paving business |
|
|
1.0 |
|
|
|
0.9 |
|
|
|
2.0 |
|
|
|
1.6 |
|
Total asphalt tons |
|
|
1.3 |
|
|
|
1.3 |
|
|
|
2.6 |
|
|
|
2.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit sales
price by product line (including internal
sales): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates (per ton) |
|
$ |
14.75 |
|
|
$ |
14.37 |
|
|
$ |
14.73 |
|
|
$ |
14.31 |
|
Cement (per ton) |
|
$ |
113.41 |
|
|
$ |
112.36 |
|
|
$ |
113.83 |
|
|
$ |
112.53 |
|
Ready mixed concrete (per
cubic yard) |
|
$ |
114.15 |
|
|
$ |
111.72 |
|
|
$ |
113.75 |
|
|
$ |
110.89 |
|
Asphalt (per ton) |
|
$ |
49.56 |
|
|
$ |
46.67 |
|
|
$ |
47.99 |
|
|
$ |
46.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures (Dollars
in millions)
Earnings before interest; income taxes;
depreciation, depletion and amortization expense; and the
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.
Adjusted EBITDA anticipated for full-year 2020 is calculated in a
manner consistent with the historical presentation of this measure
in the table below. Because of the forward-looking nature of this
estimate, it is impractical to present a quantitative
reconciliation of this measure to the GAAP measure, and accordingly
no such reconciliation is presented. 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, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net earnings attributable to Martin Marietta |
|
$ |
294.4 |
|
|
$ |
248.6 |
|
|
$ |
538.0 |
|
|
$ |
480.9 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
28.6 |
|
|
|
32.3 |
|
|
|
89.3 |
|
|
|
98.4 |
|
Income tax expense for controlling interests |
|
|
81.5 |
|
|
|
66.2 |
|
|
|
143.0 |
|
|
|
111.0 |
|
Depreciation, depletion and amortization expense, and earnings/loss
from nonconsolidated equity affiliates |
|
|
97.2 |
|
|
|
92.0 |
|
|
|
287.5 |
|
|
|
285.5 |
|
Adjusted EBITDA |
|
$ |
501.7 |
|
|
$ |
439.1 |
|
|
$ |
1,057.8 |
|
|
$ |
975.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents ready mixed
concrete shipment data and volume variance excluding ready mixed
concrete operations acquired in the third quarter of 2020 and
excluding the Arkansas, Louisiana and Eastern Texas ready mix
business (ArkLaTex business divested in January 2020) during the
period of Martin Marietta's ownership to provide a more comparable
analysis of ready mixed concrete volume variance:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Shipments |
|
(Cubic Yards in Millions) |
|
Reported ready mixed concrete shipments |
|
|
2.2 |
|
|
|
2.4 |
|
|
|
6.1 |
|
|
|
6.5 |
|
Less: ready mixed concrete
shipments of acquired operations |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Less: ready mixed concrete
shipments for the ArkLaTex business during the period of Martin
Marietta ownership |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.4 |
) |
Adjusted ready mixed concrete
shipments |
|
|
2.1 |
|
|
|
2.3 |
|
|
|
6.0 |
|
|
|
6.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported ready mixed concrete
volume variance |
|
|
(8.3 |
)% |
|
|
|
|
|
|
(7.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted ready mixed concrete
volume variance |
|
|
(4.0 |
)% |
|
|
|
|
|
|
(1.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
Mix-adjusted average selling price (mix-adjusted
ASP) excludes the impacts of product, geographic and other mix from
the current-period average selling price and is a non-GAAP measure.
Mix-adjusted ASP is calculated by assuming current-period shipments
reflect the same product, geographic and other mix as the
comparable prior period. Management uses this metric to evaluate
the effectiveness of the Company’s pricing increases and believes
this information is useful to investors as it provides same-on-same
pricing trends. The following reconciles reported average selling
price to mix-adjusted ASP and corresponding variances.
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
West Group -
Aggregates Product Line: |
|
|
|
|
|
|
|
|
Reported average selling price |
|
$ |
13.95 |
|
|
$ |
14.04 |
|
|
$ |
13.82 |
|
|
$ |
13.47 |
|
Adjustment for unfavorable
impact of product, geographic and other mix |
|
|
0.64 |
|
|
|
|
|
0.20 |
|
|
|
Mix-adjusted average selling
price |
|
$ |
14.59 |
|
|
|
|
$ |
14.02 |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
(0.6 |
)% |
|
|
|
|
2.6 |
% |
|
|
Mix-adjusted ASP variance |
|
|
3.9 |
% |
|
|
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Aggregates Product
Line: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
14.75 |
|
|
$ |
14.37 |
|
|
$ |
14.73 |
|
|
$ |
14.31 |
|
Adjustment for unfavorable
impact of product, geographic and other mix |
|
|
0.19 |
|
|
|
|
|
0.14 |
|
|
|
Mix-adjusted average selling
price |
|
$ |
14.94 |
|
|
|
|
$ |
14.87 |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
2.7 |
% |
|
|
|
|
2.9 |
% |
|
|
Mix-adjusted ASP variance |
|
|
4.0 |
% |
|
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Cement Product
Line: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
113.41 |
|
|
$ |
112.36 |
|
|
$ |
113.83 |
|
|
$ |
112.53 |
|
Adjustment for unfavorable
impact of product, geographic and other mix |
|
|
2.82 |
|
|
|
|
|
2.41 |
|
|
|
Mix-adjusted average selling
price |
|
$ |
116.23 |
|
|
|
|
$ |
116.24 |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
0.9 |
% |
|
|
|
|
1.2 |
% |
|
|
Mix-adjusted ASP variance |
|
|
3.4 |
% |
|
|
|
|
3.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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