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 first quarter
ended March 31, 2021.
The Company also announced that it acquired
Minnesota-based Tiller Corporation (“Tiller”) on April 30, 2021.
The Tiller business will be integrated into the Company’s Central
Division, complementing Martin Marietta’s product offerings,
broadening its geographic reach and creating a leading aggregates
position in the Minneapolis/St. Paul region.
First-Quarter Highlights
|
|
Quarter Ended March 31, |
|
($ in
millions, except per share) |
|
2021 |
|
|
2020 |
|
Products and services revenues 1 |
|
$ |
921.9 |
|
|
$ |
891.0 |
|
Building Materials business |
|
$ |
856.6 |
|
|
$ |
831.1 |
|
Magnesia Specialties |
|
$ |
65.3 |
|
|
$ |
59.9 |
|
Total revenues 2 |
|
$ |
982.4 |
|
|
$ |
958.2 |
|
Gross profit |
|
$ |
174.7 |
|
|
$ |
142.4 |
|
Earnings from operations |
|
$ |
99.3 |
|
|
$ |
57.8 |
|
Net earnings attributable to
Martin Marietta |
|
$ |
65.3 |
|
|
$ |
25.9 |
|
Adjusted EBITDA 3 |
|
$ |
204.4 |
|
|
$ |
149.0 |
|
Earnings per diluted
share |
|
$ |
1.04 |
|
|
$ |
0.41 |
|
1 Products and services revenues include the
sales of aggregates, cement, ready mixed concrete, asphalt and
Magnesia Specialties products, and paving services to customers,
and exclude related freight revenues.2 Total revenues include the
sales of products and services to customers (net of any discounts
or allowances) and freight revenues.3 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.
Ward Nye, Chairman and CEO of Martin Marietta,
stated, “Following record performance in 2020, our Company is off
to a strong start to what we expect to be another outstanding year
for Martin Marietta. For the first three months of 2021, we
delivered solid operational and financial performance, establishing
first-quarter records for revenues, profits and safety. These
results are a testament to our differentiated business model and
dedication to our proven Strategic Operating Analysis and Review
(SOAR) plan.
“The Company expanded consolidated gross margin
290 basis points to 17.8 percent on 2.5-percent top-line
improvement and generated record Adjusted EBITDA of $204 million,
primarily driven by pricing gains achieved by our upstream
aggregates and cement businesses and disciplined cost management
across the enterprise. Importantly, the Building Materials business
benefitted from widespread strengthening in product demand,
notwithstanding the disruptions from February’s unprecedented
winter ice storm in Texas, our largest revenue-generating state.
Looking ahead, we remain confident that long-term secular demand
trends and the rapidly recovering U.S. economy will drive
aggregates-intensive construction growth in our key
geographies.
“We are equally excited to announce the
strategic, value-enhancing acquisition of Tiller Corporation.
Tiller is the leading aggregates and FOB hot mix asphalt supplier
in the Minneapolis/St. Paul region, notably enhancing Martin
Marietta’s high-margin, upstream materials business in one of the
largest and fastest growing midwestern metropolitan areas. We
expect this SOAR-aligned acquisition to be immediately accretive to
earnings and cash flow, and contribute $170 million of product
revenues and $60 million of Adjusted EBITDA for the remaining eight
months of 2021.”
Mr. Nye concluded, “Our record-setting
first-quarter results underpin our confidence in Martin Marietta’s
ability to continue delivering sustainable growth and superior
shareholder value creation in 2021 and beyond. The Company’s
unrivaled growth opportunities and steadfast commitment to
disciplined pricing and operational excellence, combined with
emerging demand tailwinds that are expected to support construction
activity over the long term, firmly and uniquely position Martin
Marietta to SOAR to a Sustainable Future.”
First-Quarter Operating and Financial
Results
(All comparisons are versus the prior-year first
quarter unless noted otherwise)
Building Materials Business
The Building Materials business achieved record
first-quarter revenues and gross profit. Products and services
revenues of $856.6 million increased 3.1 percent and product gross
profit of $148.3 million increased 25.1 percent.
During the quarter, the Building Materials
business experienced broad-based improvements in product demand, as
evidenced by shipment levels on days not impacted by harsh winter
weather. Aggregates, cement and ready mixed concrete operations in
Texas experienced temporary disruptions from February’s historic
winter storm and subfreezing temperatures. Additionally, the
aggregates and downstream operations in Colorado, the Company’s
second largest revenue-generating state, faced a difficult
comparison versus first-quarter 2020, which benefitted from
unseasonably favorable weather conditions.
Aggregates
As anticipated in the Company’s
previously-announced guidance, first-quarter aggregates shipments
declined 3.0 percent. Pricing increased 3.4 percent, or 2.5 percent
on a mix-adjusted basis.
By segment:
- East Group shipments increased 0.2
percent, reflecting strong residential and nonresidential
construction activity in the Carolinas, Georgia, Florida and
Maryland, which more than offset the Midwest’s later start to the
construction season, as compared with the prior year, as well as
reduced wind energy construction activity. Pricing increased 3.9
percent, with improvements in both the East and Central
divisions.
- West Group shipments decreased 7.7
percent, despite robust underlying demand, due to unfavorable
winter weather conditions in both Texas and Colorado and reduced
energy-sector demand. Geographic mix limited pricing growth to 1.9
percent.
First-quarter aggregates gross profit per ton
shipped improved 34.4 percent and product gross margin expanded 490
basis points to 21.3 percent, driven by pricing gains and lower
overall costs for contract services and internal freight.
Cement
Cement shipments increased 0.3 percent despite
the historic winter storm that shut down the Company’s cement
operations for eleven days in February. Notably, the Midlothian
facility in North Texas experienced double-digit shipment growth
for the quarter, demonstrating the robust demand in the Dallas/Fort
Worth metroplex that more than offset weather-related impacts and
reduced energy-sector activity in South and West Texas. Pricing
improved 1.5 percent, as lower sales of higher-priced oil-well
specialty cement products into West Texas disproportionately
limited overall pricing growth. On a mix-adjusted basis, cement
pricing increased 2.2 percent.
Cement product gross margin declined 1,160 basis
points to 14.0 percent, driven by storm-related incremental costs
and inefficiencies as a result of the unplanned plant
shutdowns.
Downstream businesses
Ready mixed concrete shipments increased 26.5
percent, led by double-digit growth in Texas resulting from large
projects and incremental volume from operations acquired in August
2020. This growth more than offset weather-related shipment
declines in Colorado. Pricing declined 2.0 percent, reflecting
geographic mix from a lower percentage of higher-priced Colorado
shipments. Product gross margin improved 520 basis points to 8.3
percent, driven primarily by higher shipments and improved delivery
costs.
A return to normal winter weather conditions in
Colorado contributed to the 36.2 percent decrease in asphalt
shipments. Asphalt pricing increased 7.9 percent.
Magnesia Specialties Business
Magnesia Specialties first-quarter product
revenues increased 8.9 percent to $65.3 million, reflecting
improved demand for chemicals and lime products. Higher revenues,
combined with disciplined cost control, resulted in record
first-quarter product gross profit of $28.4 million. Product gross
margin of 43.5 percent matched the first-quarter record established
in the prior-year quarter.
Consolidated
For comparative purposes, total cost of revenues
for first-quarter 2020 included $2.0 million of expense for the
implementation of a new paid time off policy for employees.
Additionally, first-quarter 2020 other nonoperating expenses, net,
included $5.6 million to finance third-party railroad maintenance
in exchange for a federal income tax benefit of $6.9 million.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities for the
three months ended March 31, 2021 was $191.9 million compared with
$106.7 million for the prior-year period.
Cash paid for property, plant and equipment
additions for the three months ended March 31, 2021 was $110.3
million. For the full-year, capital expenditures are expected to
range from $425 million to $475 million.
Through dividend payments and share repurchases,
the Company returned $36.1 million to shareholders in the first
three months of 2021 and nearly $1.9 billion since announcing a 20
million share repurchase authorization in February 2015.
The Company had $354.8 million of cash, cash
equivalents and restricted cash on hand and nearly $1.1 billion of
unused borrowing capacity on its existing credit facilities as of
March 31, 2021.
Full-Year Outlook
Martin Marietta remains confident that favorable
pricing dynamics will continue, supported by the Company’s
locally-driven pricing strategy. Additionally, the Company
anticipates single-family housing growth, expanded infrastructure
investment and notable heavy industrial projects of scale will
drive increased shipment levels. Martin Marietta expects these
demand drivers, combined with the ancillary construction necessary
for housing community buildouts and the potential for increased
infrastructure investment from a comprehensive federal surface
transportation package, to result in sustained, multi-year growth
in product demand.
The Company’s full-year 2021 guidance provided
below is unchanged from the guidance provided in February 2021.
This guidance excludes the expected contribution of the Tiller
acquisition as well as any benefit from additional fiscal stimulus,
relief funds beyond those already enacted or a potential successor
federal surface transportation bill. The Company will revisit its
2021 guidance when it reports half-year results.
2021 GUIDANCE |
|
($ in millions, except per ton) |
|
Low * |
|
|
High * |
|
Consolidated |
|
|
|
|
|
|
|
|
Products and services revenues
1 |
|
$ |
4,510 |
|
|
$ |
4,700 |
|
Gross profit |
|
$ |
1,290 |
|
|
$ |
1,380 |
|
Selling, general and
administrative expenses (SG&A) |
|
$ |
320 |
|
|
$ |
330 |
|
Interest expense |
|
$ |
110 |
|
|
$ |
115 |
|
Estimated tax rate (excluding
discrete events) |
|
|
20 |
% |
|
|
22 |
% |
Net earnings attributable to
Martin Marietta |
|
$ |
665 |
|
|
$ |
750 |
|
Adjusted EBITDA 2 |
|
$ |
1,350 |
|
|
$ |
1,450 |
|
Capital
expenditures |
|
$ |
425 |
|
|
$ |
475 |
|
|
|
|
|
|
|
|
|
|
Building Materials
Business |
|
|
|
|
|
|
|
|
Aggregates |
|
|
|
|
|
|
|
|
Volume % growth 3 |
|
|
1.0 |
% |
|
|
4.0 |
% |
Average selling price per ton (ASP) % growth 4 |
|
|
3.0 |
% |
|
|
5.0 |
% |
Products and services revenues |
|
$ |
2,900 |
|
|
$ |
2,990 |
|
Gross profit |
|
$ |
895 |
|
|
$ |
945 |
|
|
|
|
|
|
|
|
|
|
Cement |
|
|
|
|
|
|
|
|
Products and services revenues |
|
$ |
460 |
|
|
$ |
500 |
|
Gross profit |
|
$ |
175 |
|
|
$ |
185 |
|
|
|
|
|
|
|
|
|
|
Ready Mixed Concrete and
Asphalt and Paving |
|
|
|
|
|
|
|
|
Products and services revenues |
|
$ |
1,240 |
|
|
$ |
1,310 |
|
Gross profit |
|
$ |
130 |
|
|
$ |
150 |
|
|
|
|
|
|
|
|
|
|
Magnesia Specialties
Business |
|
|
|
|
|
|
|
|
Products and services revenues |
|
$ |
230 |
|
|
$ |
240 |
|
Gross profit |
|
$ |
90 |
|
|
$ |
100 |
|
* Guidance range represents the low end and high
end of the respective line items provided above.1 Consolidated
products and services revenues exclude $320 million to $340 million
related to estimated interproduct sales and exclude freight
revenues.2 Adjusted EBITDA is a non-GAAP financial measure. See
Appendix to this earnings release for a reconciliation to net
earnings attributable to Martin Marietta.3 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.4 ASP
% growth range is in comparison with 2020 ASP of $14.77 per
ton.
Non-GAAP Financial Information
This earnings release contains financial
measures that have not been prepared in accordance with generally
accepted accounting principles in the United States (GAAP).
Reconciliations of non-GAAP financial measures to the closest GAAP
measures are included in the accompanying Appendix to this earnings
release. Management believes these non-GAAP measures are commonly
used financial measures for investors to evaluate the Company’s
operating performance and, when read in conjunction with the
Company’s consolidated financial statements, present a useful tool
to evaluate the Company’s ongoing operations, performance from
period to period and anticipated performance. In addition, these
are some of the factors the Company uses in internal evaluations of
the overall performance of its businesses. Management acknowledges
that there are many items that impact a company’s reported results
and the adjustments reflected in these non-GAAP measures are not
intended to present all items that may have impacted these results.
In addition, these non-GAAP measures are not necessarily comparable
to similarly titled measures used by other companies.
Conference Call Information
The Company will discuss its first-quarter 2021
earnings results on a conference call and an online web simulcast
today (May 4, 2021). 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 7790405. Additionally,
the Company has posted Q1 2021 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 26
states, Canada and The Bahamas, dedicated Martin Marietta teams
supply the resources necessary for building the solid foundations
on which our communities thrive. Martin Marietta’s Magnesia
Specialties business provides a full range of magnesium oxide,
magnesium hydroxide and dolomitic lime products. For more
information, visit www.martinmarietta.com or
www.magnesiaspecialties.com.
Investor Contact:
Suzanne Osberg Vice President,
Investor Relations (919)
783-4691Suzanne.Osberg@martinmarietta.com
MLM-E.
If you are interested in Martin Marietta stock,
management recommends that, at a minimum, you read the Company’s
current annual report and Forms 10-K, 10-Q and 8-K reports to the
Securities and Exchange Commission (SEC) over the past year. The
Company’s recent proxy statement for the annual meeting of
shareholders also contains important information. These and other
materials that have been filed with the SEC are accessible through
the Company’s website at www.martinmarietta.com and are also
available at the SEC’s website at www.sec.gov. You may also write
or call the Company’s Corporate Secretary, who will provide copies
of such reports.
Investors are cautioned that all statements in
this release that relate to the future involve risks and
uncertainties, and are based on assumptions that the Company
believes in good faith are reasonable but which may be materially
different from actual results. These statements, which are
forward-looking statements under the Private Securities Litigation
Reform Act of 1995, give the investor the Company’s expectations or
forecasts of future events. You can identify these statements by
the fact that they do not relate only to historical or current
facts. They may use words such as “guidance”, “anticipate”,
“expect”, “should”, “believe”, “will”, and other words of similar
meaning in connection with future events or future operating or
financial performance. Any or all of our forward-looking statements
here and in other publications may turn out to be wrong.
First-quarter results and trends described in
this release may not necessarily be indicative of the Company’s
future performance. The Company’s outlook is subject to various
risks and uncertainties, and is based on assumptions that the
Company believes in good faith are reasonable but which may be
materially different from actual results. Factors that the Company
currently believes could cause actual results to differ materially
from the forward-looking statements in this release (including the
outlook) include, but are not limited to: the ability of the
Company to face challenges, including those posed by the COVID-19
pandemic and implementation of any such related response plans; the
fluctuations in COVID-19 cases in the United States and the extent
that geography of outbreak primarily matches the regions in which
the Company’s Building Materials business principally operates; the
resiliency and potential declines of the Company’s various
construction end-use markets; the potential negative impact of the
COVID-19 pandemic on the Company’s ability to continue supplying
heavy-side building materials and related services at normal levels
or at all in the Company’s key regions; the duration, impact and
severity of the impacts of the COVID-19 pandemic on the Company,
including the markets in which we do business, our suppliers,
customers or other business partners as well as on our employees;
the economic impact of government responses to the pandemic; the
performance of the United States economy, including the impact on
the economy of the COVID-19 pandemic and governmental orders
restricting activities imposed to prevent further outbreak of
COVID-19; shipment declines resulting from economic events beyond
the Company’s control; a widespread decline in aggregates pricing,
including a decline in aggregates shipment volume negatively
affecting aggregates price; the history of both cement and ready
mixed concrete being subject to significant changes in supply,
demand and price fluctuations; the termination, capping and/or
reduction or suspension of the federal and/or state gasoline
tax(es) or other revenue related to public construction; the level
and timing of federal, state or local transportation or
infrastructure or public projects funding, most particularly in
Texas, Colorado, North Carolina, Georgia, Florida, Iowa 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, 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.
Appendix
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Statements of Earnings |
|
(In millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
Products and services
revenues |
|
$ |
921.9 |
|
|
$ |
891.0 |
|
Freight revenues |
|
|
60.5 |
|
|
|
67.2 |
|
Total revenues |
|
|
982.4 |
|
|
|
958.2 |
|
|
|
|
|
|
|
|
|
|
Cost of revenues - products
and services |
|
|
746.0 |
|
|
|
747.4 |
|
Cost of revenues -
freight |
|
|
61.7 |
|
|
|
68.4 |
|
Total cost of revenues |
|
|
807.7 |
|
|
|
815.8 |
|
Gross profit |
|
|
174.7 |
|
|
|
142.4 |
|
|
|
|
|
|
|
|
|
|
Selling general &
administrative expenses |
|
|
79.8 |
|
|
|
78.7 |
|
Acquisition-related
expenses |
|
|
1.2 |
|
|
|
0.3 |
|
Other operating (income) and
expenses, net |
|
|
(5.6 |
) |
|
|
5.6 |
|
Earnings from operations |
|
|
99.3 |
|
|
|
57.8 |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
27.4 |
|
|
|
29.8 |
|
Other nonoperating (income)
and expenses, net |
|
|
(9.5 |
) |
|
|
2.0 |
|
Earnings before income tax expense |
|
|
81.4 |
|
|
|
26.0 |
|
Income tax expense |
|
|
15.9 |
|
|
|
0.1 |
|
Consolidated net earnings |
|
|
65.5 |
|
|
|
25.9 |
|
Less: Net earnings
attributable to noncontrolling interests |
|
|
0.2 |
|
|
|
— |
|
Net Earnings Attributable to
Martin Marietta Materials, Inc. |
|
$ |
65.3 |
|
|
$ |
25.9 |
|
|
|
|
|
|
|
|
|
|
Net earnings per common share
attributable to common shareholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.05 |
|
|
$ |
0.42 |
|
Diluted |
|
$ |
1.04 |
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
Dividends per common
share |
|
$ |
0.57 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
Average number of common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
62.3 |
|
|
|
62.3 |
|
Diluted |
|
|
62.5 |
|
|
|
62.5 |
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
Total
revenues: |
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
East Group |
|
$ |
394.9 |
|
|
$ |
381.9 |
|
West Group |
|
|
516.6 |
|
|
|
510.6 |
|
Total Building Materials business |
|
|
911.5 |
|
|
|
892.5 |
|
Magnesia Specialties |
|
|
70.9 |
|
|
|
65.7 |
|
Total |
|
$ |
982.4 |
|
|
$ |
958.2 |
|
|
|
|
|
|
|
|
|
|
Gross
profit: |
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
East Group |
|
$ |
86.2 |
|
|
$ |
59.6 |
|
West Group |
|
|
61.8 |
|
|
|
58.6 |
|
Total Building Materials business |
|
|
148.0 |
|
|
|
118.2 |
|
Magnesia Specialties |
|
|
27.5 |
|
|
|
25.2 |
|
Corporate |
|
|
(0.8 |
) |
|
|
(1.0 |
) |
Total |
|
$ |
174.7 |
|
|
$ |
142.4 |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses: |
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
East Group |
|
$ |
24.2 |
|
|
$ |
24.7 |
|
West Group |
|
|
33.3 |
|
|
|
33.4 |
|
Total Building Materials business |
|
|
57.5 |
|
|
|
58.1 |
|
Magnesia Specialties |
|
|
3.7 |
|
|
|
3.5 |
|
Corporate |
|
|
18.6 |
|
|
|
17.1 |
|
Total |
|
$ |
79.8 |
|
|
$ |
78.7 |
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from operations: |
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
East Group |
|
$ |
61.7 |
|
|
$ |
34.8 |
|
West Group |
|
|
31.9 |
|
|
|
22.7 |
|
Total Building Materials business |
|
|
93.6 |
|
|
|
57.5 |
|
Magnesia Specialties |
|
|
23.5 |
|
|
|
21.7 |
|
Corporate |
|
|
(17.8 |
) |
|
|
(21.4 |
) |
Total |
|
$ |
99.3 |
|
|
$ |
57.8 |
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Financial Highlights (Continued) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2021 |
|
2020 |
|
|
Amount |
|
|
% of Revenues |
|
Amount |
|
|
% of Revenues |
Total
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
572.6 |
|
|
|
|
$ |
570.3 |
|
|
|
Cement |
|
|
109.6 |
|
|
|
|
|
106.6 |
|
|
|
Ready mixed concrete |
|
|
235.3 |
|
|
|
|
|
189.7 |
|
|
|
Asphalt and paving |
|
|
12.2 |
|
|
|
|
|
18.1 |
|
|
|
Less: Interproduct sales |
|
|
(73.1 |
) |
|
|
|
|
(53.6 |
) |
|
|
Products and services |
|
|
856.6 |
|
|
|
|
|
831.1 |
|
|
|
Freight |
|
|
54.9 |
|
|
|
|
|
61.4 |
|
|
|
Total Building Materials business |
|
|
911.5 |
|
|
|
|
|
892.5 |
|
|
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
65.3 |
|
|
|
|
|
59.9 |
|
|
|
Freight |
|
|
5.6 |
|
|
|
|
|
5.8 |
|
|
|
Total Magnesia Specialties |
|
|
70.9 |
|
|
|
|
|
65.7 |
|
|
|
Consolidated total revenues |
|
$ |
982.4 |
|
|
|
|
$ |
958.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
121.8 |
|
|
21.3% |
|
$ |
93.4 |
|
|
16.4% |
Cement |
|
|
15.3 |
|
|
14.0% |
|
|
27.3 |
|
|
25.6% |
Ready mixed concrete |
|
|
19.4 |
|
|
8.3% |
|
|
5.9 |
|
|
3.1% |
Asphalt and paving |
|
|
(8.2 |
) |
|
(67.2)% |
|
|
(8.1 |
) |
|
(44.8)% |
Subtotal |
|
|
148.3 |
|
|
17.3% |
|
|
118.5 |
|
|
14.3% |
Freight |
|
|
(0.3 |
) |
|
NM |
|
|
(0.3 |
) |
|
NM |
Total Building Materials business |
|
|
148.0 |
|
|
16.2% |
|
|
118.2 |
|
|
13.2% |
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
28.4 |
|
|
43.5% |
|
|
26.1 |
|
|
43.5% |
Freight |
|
|
(0.9 |
) |
|
NM |
|
|
(0.9 |
) |
|
NM |
Total Magnesia Specialties |
|
|
27.5 |
|
|
38.8% |
|
|
25.2 |
|
|
38.4% |
Corporate |
|
|
(0.8 |
) |
|
NM |
|
|
(1.0 |
) |
|
NM |
Consolidated gross profit |
|
$ |
174.7 |
|
|
17.8% |
|
$ |
142.4 |
|
|
14.9% |
|
MARTIN MARIETTA MATERIALS, INC. |
Balance Sheet Data |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
(Unaudited) |
|
|
(Audited) |
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
313.9 |
|
|
$ |
207.3 |
|
Restricted cash |
|
|
40.9 |
|
|
|
97.1 |
|
Accounts receivable, net |
|
|
563.6 |
|
|
|
575.1 |
|
Inventories, net |
|
|
690.0 |
|
|
|
709.0 |
|
Other current assets |
|
|
67.3 |
|
|
|
79.8 |
|
Property, plant and equipment, net |
|
|
5,335.4 |
|
|
|
5,242.3 |
|
Intangible assets, net |
|
|
2,918.4 |
|
|
|
2,922.0 |
|
Operating lease right-of-use assets, net |
|
|
440.9 |
|
|
|
453.0 |
|
Other noncurrent assets |
|
|
288.9 |
|
|
|
295.2 |
|
Total assets |
|
$ |
10,659.3 |
|
|
$ |
10,580.8 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
448.8 |
|
|
$ |
499.3 |
|
Long-term debt (excluding current maturities) |
|
|
2,626.5 |
|
|
|
2,625.8 |
|
Other noncurrent liabilities |
|
|
1,657.3 |
|
|
|
1,562.4 |
|
Total equity |
|
|
5,926.7 |
|
|
|
5,893.3 |
|
Total liabilities and equity |
|
$ |
10,659.3 |
|
|
$ |
10,580.8 |
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Statements of Cash Flows |
|
(In millions) |
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Consolidated net earnings |
|
$ |
65.5 |
|
|
$ |
25.9 |
|
Adjustments to reconcile consolidated net earnings to net cash
provided by operating activities: |
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
98.6 |
|
|
|
95.0 |
|
Stock-based compensation expense |
|
|
10.9 |
|
|
|
12.5 |
|
Gains on divestitures and sales of assets |
|
|
(3.8 |
) |
|
|
(1.5 |
) |
Deferred income taxes, net |
|
|
(4.7 |
) |
|
|
3.2 |
|
Other items, net |
|
|
(4.7 |
) |
|
|
(0.4 |
) |
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
11.5 |
|
|
|
10.2 |
|
Inventories, net |
|
|
19.0 |
|
|
|
(9.6 |
) |
Accounts payable |
|
|
25.0 |
|
|
|
4.9 |
|
Other assets and liabilities, net |
|
|
(25.4 |
) |
|
|
(33.5 |
) |
Net Cash Provided by Operating
Activities |
|
|
191.9 |
|
|
|
106.7 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(110.3 |
) |
|
|
(104.1 |
) |
Proceeds from divestitures and sales of assets |
|
|
12.2 |
|
|
|
15.9 |
|
Investments in life insurance contracts, net |
|
|
9.8 |
|
|
|
(7.2 |
) |
Other investing activities, net |
|
|
— |
|
|
|
(0.1 |
) |
Net Cash Used for Investing
Activities |
|
|
(88.3 |
) |
|
|
(95.5 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Financing
Activities: |
|
|
|
|
|
|
|
|
Borrowings of long-term debt |
|
|
— |
|
|
|
618.0 |
|
Repayments of long-term debt |
|
|
— |
|
|
|
(127.0 |
) |
Payments on finance lease obligations |
|
|
(2.2 |
) |
|
|
(0.8 |
) |
Debt issuance costs |
|
|
— |
|
|
|
(1.1 |
) |
Dividends paid |
|
|
(36.1 |
) |
|
|
(34.8 |
) |
Repurchases of common stock |
|
|
— |
|
|
|
(50.0 |
) |
Proceeds from exercise of stock options |
|
|
0.6 |
|
|
|
0.2 |
|
Shares withheld for employees' income tax obligations |
|
|
(15.5 |
) |
|
|
(12.7 |
) |
Net Cash (Used for) Provided
by Financing Activities |
|
|
(53.2 |
) |
|
|
391.8 |
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash, Cash
Equivalents and Restricted Cash |
|
|
50.4 |
|
|
|
403.0 |
|
Cash, Cash Equivalents and
Restricted Cash, beginning of period |
|
|
304.4 |
|
|
|
21.0 |
|
Cash, Cash Equivalents and
Restricted Cash, end of period |
|
$ |
354.8 |
|
|
$ |
424.0 |
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Operational Highlights |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, 2021 |
|
|
|
Volume |
|
Pricing |
|
Volume/Pricing
Variance (1) |
|
|
|
|
|
|
|
East Group |
|
0.2% |
|
3.9% |
|
West Group |
|
(7.7)% |
|
1.9% |
|
Total aggregates (2) |
|
(3.0)% |
|
3.4% |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
Shipments
(tons in millions) |
|
2021 |
|
|
2020 |
|
|
East Group |
|
|
22.7 |
|
|
|
22.7 |
|
|
West Group |
|
|
14.4 |
|
|
|
15.6 |
|
|
Total aggregates (2) |
|
|
37.1 |
|
|
|
38.3 |
|
|
|
|
|
|
|
|
|
|
(1)
Volume/pricing variances reflect the percentage increase from the
comparable period in the prior year. |
|
(2) Total
aggregates includes acquisitions from the date of acquisition and
divestitures through the date of disposal. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
Shipments (in
millions) |
|
|
|
|
|
|
|
Aggregates tons - external
customers |
|
|
34.5 |
|
|
|
36.0 |
|
|
Internal aggregates tons used
in other product lines |
|
|
2.6 |
|
|
|
2.3 |
|
|
Total aggregates tons |
|
|
37.1 |
|
|
|
38.3 |
|
|
|
|
|
|
|
|
|
|
Cement tons - external
customers |
|
|
0.6 |
|
|
|
0.7 |
|
|
Internal cement tons used in
other product lines |
|
|
0.3 |
|
|
|
0.2 |
|
|
Total cement tons |
|
|
0.9 |
|
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
Ready mixed concrete - cubic
yards |
|
|
2.1 |
|
|
|
1.7 |
|
|
|
|
|
|
|
|
|
|
Asphalt tons - external
customers |
|
|
0.1 |
|
|
|
0.1 |
|
|
Internal asphalt tons used in
road paving business |
|
|
— |
|
|
|
0.1 |
|
|
Total asphalt tons |
|
|
0.1 |
|
|
|
0.2 |
|
|
|
|
|
|
|
|
|
|
Average unit sales
price by product line (including internal sales): |
|
|
|
|
|
|
|
Aggregates (per ton) |
|
$ |
15.31 |
|
|
$ |
14.80 |
|
|
Cement (per ton) |
|
$ |
115.49 |
|
|
$ |
113.77 |
|
|
Ready mixed concrete (per
cubic yard) |
|
$ |
112.12 |
|
|
$ |
114.35 |
|
|
Asphalt (per ton) |
|
$ |
49.04 |
|
|
$ |
45.43 |
|
|
|
|
|
|
|
|
|
|
|
|
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.
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 |
|
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
Net earnings attributable to Martin Marietta |
|
$ |
65.3 |
|
|
$ |
25.9 |
|
Add back: |
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
27.3 |
|
|
|
29.6 |
|
Income tax expense for controlling interests |
|
|
15.8 |
|
|
|
0.1 |
|
Depreciation, depletion and amortization expense and noncash
earnings/loss from nonconsolidated equity affiliates |
|
|
96.0 |
|
|
|
93.4 |
|
Adjusted EBITDA |
|
$ |
204.4 |
|
|
$ |
149.0 |
|
|
|
|
|
|
|
|
|
|
A Reconciliation of the GAAP Measure to
2021 Adjusted EBITDA Guidance Range (excluding the expected
contribution of the Tiller acquisition) is as follows:
|
|
Low Point of Range |
|
High Point of Range |
Net earnings attributable to Martin Marietta |
|
$665.0 |
|
$750.0 |
Add back: |
|
|
|
|
Interest expense |
|
|
115.0 |
|
|
110.0 |
Taxes on income |
|
|
180.0 |
|
|
200.0 |
Depreciation, depletion and amortization expense and noncash
earnings/loss from nonconsolidated equity affiliates |
|
|
390.0 |
|
|
390.0 |
Adjusted EBITDA |
|
$1,350.0 |
|
$1,450.0 |
|
|
|
|
|
|
|
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 |
|
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
Total Aggregates: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
15.31 |
|
|
$ |
14.80 |
|
Adjustment for favorable
impact of product, geographic and other mix |
|
|
(0.14 |
) |
|
|
|
|
Mix-adjusted average selling
price |
|
$ |
15.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
3.4 |
% |
|
|
|
|
Mix-adjusted ASP variance |
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
115.49 |
|
|
$ |
113.77 |
|
Adjustment for unfavorable
impact of product, geographic and other mix |
|
|
0.83 |
|
|
|
|
|
Mix-adjusted average selling
price |
|
$ |
116.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
1.5 |
% |
|
|
|
|
Mix-adjusted ASP variance |
|
|
2.2 |
% |
|
|
|
|
Martin Marietta Materials (NYSE:MLM)
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