BIRMINGHAM, Ala., May 6, 2020 /PRNewswire/ -- Vulcan Materials
Company (NYSE: VMC), the nation's largest producer of construction
aggregates, today announced results for the quarter ended
March 31, 2020.
Tom Hill, Chairman and Chief
Executive Officer, said, "Our first quarter earnings improved
across all segments and were in line with our expectations, despite
wet weather in certain key markets in the Southeast and
Southwest. These results demonstrated the strong long-term
fundamental position of our aggregates-led businesses and our
commitment to leading the industry in pricing and unit
profitability.
"We experienced minimal financial impact from the COVID-19
pandemic in the first quarter. Our main focus right now is
ensuring the health and safety of our employees, maintaining our
operational readiness, preserving liquidity and supporting the
communities in which we operate. Our employees are engaged
and ready to support one another, service our customers, and meet
the challenges of today as we prepare for tomorrow.
"From a position of strength, we are proactively planning for
the potential impacts of the pandemic on construction activity.
Our strengths are derived from the flexibility provided by
our aggregates-focused business, our diverse geographic footprint,
our balance sheet structure and recently enhanced liquidity, and
our operational capabilities. Our leading market positions,
built over more than 60 years, and our proven track record of
strong operations also position us well. That said, we have
undertaken a comprehensive review of our operating plans and have
contingency plans in place to respond as efficiently as possible to
demand shifts. Aggregates is far more adaptable to these
demand shifts than any other construction materials, a
characteristic that should serve us well during this period of
disruption. As a result, we will be well-equipped to manage
our business effectively and serve our customers reliably through
these unprecedented times. Our execution capabilities are
supported by our four strategic disciplines (Commercial and
Operational Excellence, Logistics Innovation and Strategic
Sourcing), which have been implemented over the last few
years. These operating plans are underpinned by our healthy
balance sheet and strong liquidity position, which we have further
enhanced."
Highlights as of March 31, 2020
include:
|
First
Quarter
|
|
Trailing Twelve
Months
|
Amounts in millions,
except per unit data
|
2020
|
2019
|
|
2020
|
2019
|
Total
revenues
|
$
1,049.2
|
$
996.5
|
|
$
4,981.8
|
$
4,524.9
|
Gross
profit
|
$
201.7
|
$
191.7
|
|
$
1,265.9
|
$
1,133.3
|
Aggregates
segment
|
|
|
|
|
|
Segment
sales
|
$
868.2
|
$
835.0
|
|
$
4,023.5
|
$
3,649.0
|
Freight-adjusted
revenue
|
$
648.0
|
$
628.6
|
|
$
3,033.6
|
$
2,766.5
|
Gross
profit
|
$
194.1
|
$
185.7
|
|
$
1,155.1
|
$
1,029.4
|
Shipments
(tons)
|
45.0
|
45.6
|
|
214.9
|
206.5
|
Freight-adjusted
sales price per ton
|
$
14.39
|
$
13.77
|
|
$
14.12
|
$
13.40
|
Gross profit per
ton
|
$
4.31
|
$
4.07
|
|
$
5.38
|
$
4.99
|
Asphalt, Concrete
& Calcium segment gross profit
|
$
7.6
|
$
6.0
|
|
$
110.9
|
$
103.9
|
Selling,
Administrative and General (SAG)
|
$
86.4
|
$
90.3
|
|
$
366.7
|
$
345.3
|
SAG as % of Total
revenues
|
8.2%
|
9.1%
|
|
7.4%
|
7.6%
|
Earnings from
continuing operations before income taxes
|
$
72.2
|
$
74.6
|
|
$
755.3
|
$
649.4
|
Net
earnings
|
$
60.3
|
$
63.3
|
|
$
614.6
|
$
526.1
|
Adjusted
EBIT
|
$
105.5
|
$
103.5
|
|
$
897.5
|
$
802.6
|
Adjusted
EBITDA
|
$
201.0
|
$
192.7
|
|
$
1,278.4
|
$
1,156.6
|
Earnings from
continuing operations per diluted share
|
$
0.45
|
$
0.48
|
|
$
4.64
|
$
3.95
|
Adjusted earnings
from continuing operations per diluted share
|
$
0.47
|
$
0.46
|
|
$
4.71
|
$
4.07
|
First quarter revenues were $1.05
billion and net earnings were $60
million. Earnings from continuing operations were
$0.45 per diluted share, and Adjusted
EBITDA was $201 million. This
year's first quarter earnings included a pretax foreign currency
balance sheet translation loss of $6
million, or $0.04 per diluted
share, resulting from the rapid devaluation of the Mexican
peso.
Segment revenues and gross profit improved versus the prior year
in each of the Company's product lines. Aggregates earnings
benefited from continued price improvement and solid shipment
growth in certain key markets. Asphalt and Concrete segment
earnings reflected revenue growth and improved unit margins.
Segment Results
Aggregates
First quarter
segment sales increased 4 percent, and gross profit increased 5
percent to $194 million, or
$4.31 per ton. These
improvements resulted from growth in shipments in certain key
markets and wide-spread growth in pricing.
First quarter aggregates shipments were 1 percent lower than the
prior year's strong first quarter, when aggregates shipments
increased 13 percent as a result of delayed shipments from the
fourth quarter of 2018. Many markets in the Southeast and the
Southwest were negatively impacted by wet weather while shipments
in California, Florida, Illinois and Virginia realized solid growth. On a
mix-adjusted basis, all of the Company's key markets reported
year-over-year price growth. For the quarter,
freight-adjusted average sales price increased 4.5 percent (4.8
percent on mix-adjusted basis) versus the prior year's
quarter.
As anticipated, first quarter cost of sales were negatively
impacted by higher repairs, maintenance and stripping costs, which
were incurred early in the quarter to take advantage of the
seasonally low production volume. Wet weather inefficiencies
also affected costs in certain markets. These were partially
offset by the modestly lower unit cost of diesel fuel in the
quarter. Cash gross profit per ton increased 6 percent from
the prior year's first quarter to $6.02 per ton. For the trailing-twelve
months, cash gross profit was $6.82
per ton.
Asphalt, Concrete and Calcium
Consistent with the
Company's expectations, Asphalt segment gross profit was a loss of
$2 million for the seasonally slower
first quarter, an improvement over last year's loss of $3 million. Asphalt shipments increased 2
percent and selling prices increased 5 percent in the first
quarter. California, the Company's largest asphalt market,
reported volume growth in the first quarter, more than offsetting
lower volumes in Texas. In both markets, weather contributed
to the year-over-year change. The average unit cost for
liquid asphalt was 6 percent lower than the prior year
quarter.
Concrete segment gross profit was $9
million, an 8 percent improvement from the prior year.
Shipments increased 10 percent, led by shipment growth in the
Company's two largest concrete markets, Northern Virginia and Northern
California. Average selling prices increased 3 percent
compared to the prior year's first quarter.
Calcium segment gross profit was $0.8
million, up from the prior year quarter.
Selling, Administrative and General (SAG)
SAG expense
declined 4 percent to $86 million in
the quarter due mostly to recently implemented cost reductions as
well as adjustments to stock-based compensation to reflect a lower
share price. This year-over-year decline coupled with revenue
growth, resulted in a 90 basis point improvement as a percentage of
total revenues. The Company remains focused on further
leveraging its overhead structure.
Financial Position, Liquidity and Capital
Allocation
Capital expenditures in the first quarter were
$109 million. This amount
included both core operating and maintenance capital investments to
improve or replace existing property, plant and equipment as well
as internal growth projects already underway. The Company's
full-year expectations for 2020 capital spending have been revised
downward in response to the unknown impacts of the COVID-19
pandemic. The Company now expects to spend between
$275 and $325
million (previously $475
million) on capital this year, most of which is for core
operating and maintenance. Given that the economic outlook is
evolving quickly, we will continue to review our plans and adjust
as needed, being thoughtful about preserving liquidity. The
Company will continue to take a disciplined approach to
acquisitions, focusing on only those assets that are a strategic
priority. During the quarter, there were no
acquisitions.
The Company returned $45 million
to shareholders through dividends, a 10 percent increase versus the
prior year's quarter. The Company also invested $26 million in share repurchases in the
quarter.
At quarter-end, total debt to trailing-twelve month Adjusted
EBITDA was 2.2 times (2.1 times on a net debt basis reflecting cash
on hand). The Company's weighted-average debt maturity is 14
years, and the effective weighted-average interest rate was 4.2
percent.
In April, the Company entered into a $750
million 364-day delayed draw term loan, which further
enhanced the Company's already strong liquidity position. At
March 31, 2020 there were no
borrowings outstanding under the existing $750 million revolving credit facility.
Outlook
Regarding the Company's outlook, Mr. Hill
stated, "The impact from the COVID-19 global pandemic continues to
evolve quickly, and it is too early to estimate accurately the full
year impact on aggregates demand. Because we have been
designated as an essential business, shipment activity today
remains relatively strong across many of our markets as customers
execute on their backlog of projects. However, we expect some
project timelines will be modified as every market adjusts to
economic disruptions.
"Because of this uncertainty in aggregates demand, we are
withdrawing our previous financial guidance for 2020. We will
continue to closely monitor trends in construction activity and
work with our customers to meet their needs in this challenging
operating environment. We will provide updates as more
information becomes available and our visibility improves.
While we do not have the ability to control demand, our advantage
is our ability to control many other aspects of our business.
We remain confident in our ability to successfully navigate the
changing environment. We will continue to operate from a
position of strength supported by the resiliency of our aggregates
business, progress on the four strategic disciplines and the
engagement of our people."
Conference Call
Vulcan will host a conference call at
10:00 a.m. CDT on May 6, 2020. A webcast will be available
via the Company's website at www.vulcanmaterials.com.
Investors and other interested parties may access the
teleconference live by calling 833-962-1439, or 832-900-4623 if
outside the U.S., approximately 15 minutes before the scheduled
start. The conference ID is 5190977. The conference
call will be recorded and available for replay at the Company's
website approximately two hours after the call.
Vulcan Materials Company, a member of the S&P 500 Index with
headquarters in Birmingham,
Alabama, is the nation's largest producer of construction
aggregates – primarily crushed stone, sand and gravel – and a major
producer of aggregates-based construction materials, including
asphalt mix and ready-mixed concrete. For additional
information about Vulcan, go to www.vulcanmaterials.com.
FORWARD-LOOKING STATEMENT DISCLAIMER
This document
contains forward-looking statements. Statements that are not
historical fact, including statements about Vulcan's beliefs and
expectations, are forward-looking statements. Generally,
these statements relate to future financial performance, results of
operations, business plans or strategies, projected or anticipated
revenues, expenses, earnings (including EBITDA and other measures),
dividend policy, shipment volumes, pricing, levels of capital
expenditures, intended cost reductions and cost savings,
anticipated profit improvements and/or planned divestitures and
asset sales. These forward-looking statements are sometimes
identified by the use of terms and phrases such as "believe,"
"should," "would," "expect," "project," "estimate," "anticipate,"
"intend," "plan," "will," "can," "may" or similar expressions
elsewhere in this document. These statements are subject to
numerous risks, uncertainties, and assumptions, including but not
limited to general business conditions, competitive factors,
pricing, energy costs, and other risks and uncertainties discussed
in the reports Vulcan periodically files with the SEC.
Forward-looking statements are not guarantees of future
performance and actual results, developments, and business
decisions may vary significantly from those expressed in or implied
by the forward-looking statements. The following risks
related to Vulcan's business, among others, could cause actual
results to differ materially from those described in the
forward-looking statements: general economic and business
conditions; a pandemic, epidemic or other public health emergency,
such as the recent outbreak of COVID-19; Vulcan's dependence on the
construction industry, which is subject to economic cycles; the
timing and amount of federal, state and local funding for
infrastructure; changes in the level of spending for private
residential and private nonresidential construction; changes in
Vulcan's effective tax rate; the increasing reliance on information
technology infrastructure, including the risks that the
infrastructure does not work as intended, experiences technical
difficulties or is subjected to cyber-attacks; the impact of the
state of the global economy on Vulcan's businesses and financial
condition and access to capital markets; the highly competitive
nature of the construction industry; the impact of future
regulatory or legislative actions, including those relating to
climate change, wetlands, greenhouse gas emissions, the definition
of minerals, tax policy or international trade; the outcome of
pending legal proceedings; pricing of Vulcan's products; weather
and other natural phenomena, including the impact of climate change
and availability of water; energy costs; costs of hydrocarbon-based
raw materials; healthcare costs; the amount of long-term debt and
interest expense incurred by Vulcan; changes in interest rates; the
impact of a discontinuation of the London Interbank Offered Rate
(LIBOR); volatility in pension plan asset values and liabilities,
which may require cash contributions to the pension plans; the
impact of environmental cleanup costs and other liabilities
relating to existing and/or divested businesses; Vulcan's ability
to secure and permit aggregates reserves in strategically located
areas; Vulcan's ability to manage and successfully integrate
acquisitions; the effect of changes in tax laws, guidance and
interpretations; significant downturn in the construction industry
may result in the impairment of goodwill or long-lived assets;
changes in technologies, which could disrupt the way Vulcan does
business and how Vulcan's products are distributed; and other
assumptions, risks and uncertainties detailed from time to time in
the reports filed by Vulcan with the SEC. All forward-looking
statements in this communication are qualified in their entirety by
this cautionary statement. Vulcan disclaims and does not
undertake any obligation to update or revise any forward-looking
statement in this document except as required by law.
|
|
|
|
|
|
|
|
Table A
|
Vulcan Materials
Company
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
Three Months
Ended
|
Consolidated
Statements of Earnings
|
|
|
|
|
|
March
31
|
(Condensed and
unaudited)
|
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
|
|
$1,049,242
|
|
$996,511
|
Cost of
revenues
|
|
|
|
847,519
|
|
804,836
|
Gross
profit
|
|
|
|
201,723
|
|
191,675
|
Selling,
administrative and general expenses
|
|
|
|
86,430
|
|
90,268
|
Gain on sale of
property, plant & equipment
|
|
|
|
|
|
|
and
businesses
|
|
|
|
999
|
|
7,297
|
Other operating
expense, net
|
|
|
|
(3,991)
|
|
(4,271)
|
Operating
earnings
|
|
|
|
112,301
|
|
104,433
|
Other nonoperating
income (expense), net
|
|
|
|
(9,336)
|
|
3,129
|
Interest expense,
net
|
|
|
|
30,773
|
|
32,934
|
Earnings from
continuing operations
|
|
|
|
|
|
|
before income
taxes
|
|
|
|
72,192
|
|
74,628
|
Income tax
expense
|
|
|
|
12,194
|
|
10,693
|
Earnings from
continuing operations
|
|
|
|
59,998
|
|
63,935
|
Earnings (loss) on
discontinued operations, net of tax
|
|
|
260
|
|
(636)
|
Net
earnings
|
|
|
|
$60,258
|
|
$63,299
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
|
|
|
|
|
Continuing
operations
|
|
|
|
$0.45
|
|
$0.48
|
Discontinued
operations
|
|
|
|
$0.00
|
|
$0.00
|
Net
earnings
|
|
|
|
$0.45
|
|
$0.48
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
Continuing
operations
|
|
|
|
$0.45
|
|
$0.48
|
Discontinued
operations
|
|
|
|
$0.00
|
|
$0.00
|
Net
earnings
|
|
|
|
$0.45
|
|
$0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
Basic
|
|
|
|
132,567
|
|
132,043
|
Assuming
dilution
|
|
|
|
133,259
|
|
133,054
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
$95,480
|
|
$89,181
|
Effective tax rate
from continuing operations
|
|
|
|
16.9%
|
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table B
|
Vulcan Materials
Company
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Consolidated
Balance Sheets
|
|
March
31
|
|
December
31
|
|
March
31
|
(Condensed and
unaudited)
|
|
2020
|
|
2019
|
|
2019
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$120,041
|
|
$271,589
|
|
$30,838
|
Restricted
cash
|
|
232
|
|
2,917
|
|
270
|
Accounts and notes
receivable
|
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
601,182
|
|
573,241
|
|
563,084
|
Allowance for
doubtful accounts
|
|
(3,517)
|
|
(3,125)
|
|
(2,554)
|
Accounts and notes
receivable, net
|
|
597,665
|
|
570,116
|
|
560,530
|
Inventories
|
|
|
|
|
|
|
Finished
products
|
|
403,612
|
|
391,666
|
|
369,743
|
Raw
materials
|
|
33,676
|
|
31,318
|
|
27,951
|
Products in
process
|
|
5,010
|
|
5,604
|
|
4,976
|
Operating supplies
and other
|
|
28,449
|
|
29,720
|
|
26,727
|
Inventories
|
|
470,747
|
|
458,308
|
|
429,397
|
Other current
assets
|
|
88,095
|
|
76,396
|
|
62,816
|
Total current
assets
|
|
1,276,780
|
|
1,379,326
|
|
1,083,851
|
Investments and
long-term receivables
|
|
57,987
|
|
60,709
|
|
50,952
|
Property, plant &
equipment
|
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
8,907,788
|
|
8,749,217
|
|
8,559,549
|
Allowances for
depreciation, depletion & amortization
|
|
(4,506,700)
|
|
(4,433,179)
|
|
(4,284,211)
|
Property, plant &
equipment, net
|
|
4,401,088
|
|
4,316,038
|
|
4,275,338
|
Operating lease
right-of-use assets, net
|
|
420,930
|
|
408,189
|
|
426,381
|
Goodwill
|
|
3,167,061
|
|
3,167,061
|
|
3,161,842
|
Other intangible
assets, net
|
|
1,083,515
|
|
1,091,475
|
|
1,085,398
|
Other noncurrent
assets
|
|
222,021
|
|
225,995
|
|
213,090
|
Total
assets
|
|
$10,629,382
|
|
$10,648,793
|
|
$10,296,852
|
Liabilities
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
25
|
|
25
|
|
24
|
Short-term
debt
|
|
0
|
|
0
|
|
178,500
|
Trade payables and
accruals
|
|
243,019
|
|
265,159
|
|
248,119
|
Other current
liabilities
|
|
232,632
|
|
270,379
|
|
232,964
|
Total current
liabilities
|
|
475,676
|
|
535,563
|
|
659,607
|
Long-term
debt
|
|
2,785,566
|
|
2,784,315
|
|
2,780,589
|
Deferred income
taxes, net
|
|
648,405
|
|
633,039
|
|
568,229
|
Deferred
revenue
|
|
178,568
|
|
179,880
|
|
184,744
|
Operating lease
liabilities
|
|
399,489
|
|
388,042
|
|
403,426
|
Other noncurrent
liabilities
|
|
551,352
|
|
506,097
|
|
483,048
|
Total
liabilities
|
|
$5,039,056
|
|
$5,026,936
|
|
$5,079,643
|
Equity
|
|
|
|
|
|
|
Common stock, $1 par
value
|
|
132,433
|
|
132,371
|
|
132,069
|
Capital in excess of
par value
|
|
2,782,738
|
|
2,791,353
|
|
2,789,864
|
Retained
earnings
|
|
2,885,084
|
|
2,895,871
|
|
2,467,201
|
Accumulated other
comprehensive loss
|
|
(209,929)
|
|
(197,738)
|
|
(171,925)
|
Total
equity
|
|
$5,590,326
|
|
$5,621,857
|
|
$5,217,209
|
Total liabilities and
equity
|
|
$10,629,382
|
|
$10,648,793
|
|
$10,296,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table C
|
Vulcan Materials
Company
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
Consolidated
Statements of Cash Flows
|
|
|
|
March
31
|
(Condensed and
unaudited)
|
|
2020
|
|
2019
|
Operating
Activities
|
|
|
|
|
Net
earnings
|
|
|
|
$60,258
|
|
$63,299
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
95,480
|
|
89,181
|
Noncash operating
lease expense
|
|
8,851
|
|
8,717
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(999)
|
|
(7,297)
|
Contributions to
pension plans
|
|
(2,144)
|
|
(2,320)
|
Share-based
compensation expense
|
|
6,716
|
|
5,724
|
Deferred tax expense
(benefit)
|
|
19,671
|
|
774
|
Changes in assets and
liabilities before initial
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(99,597)
|
|
(47,733)
|
Other, net
|
|
|
|
|
(5,761)
|
|
5,819
|
Net cash provided by
operating activities
|
|
$82,475
|
|
$116,164
|
Investing
Activities
|
|
|
|
|
Purchases of
property, plant & equipment
|
|
(142,650)
|
|
(122,019)
|
Proceeds from sale of
property, plant & equipment
|
|
2,536
|
|
6,512
|
Proceeds from sale of
businesses
|
|
0
|
|
1,744
|
Payment for
businesses acquired, net of acquired cash
|
|
0
|
|
1,122
|
Other, net
|
|
|
|
|
9,872
|
|
(7,237)
|
Net cash used for
investing activities
|
|
($130,242)
|
|
($119,878)
|
Financing
Activities
|
|
|
|
|
Proceeds from
short-term debt
|
|
0
|
|
196,200
|
Payment of short-term
debt
|
|
0
|
|
(150,700)
|
Payment of current
maturities and long-term debt
|
|
(6)
|
|
(6)
|
Settlements of
interest rate derivatives
|
|
(19,863)
|
|
0
|
Purchases of common
stock
|
|
(26,132)
|
|
0
|
Dividends
paid
|
|
|
|
(45,100)
|
|
(40,939)
|
Share-based
compensation, shares withheld for taxes
|
|
(15,365)
|
|
(14,137)
|
Net cash used for
financing activities
|
|
($106,466)
|
|
($9,582)
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
(154,233)
|
|
(13,296)
|
Cash and cash
equivalents and restricted cash at beginning of year
|
|
274,506
|
|
44,404
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$120,273
|
|
$31,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table D
|
Segment Financial
Data and Unit Shipments
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
per unit data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Total
Revenues
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
|
|
|
|
$868,226
|
|
$834,965
|
Asphalt
2
|
|
|
|
|
|
139,789
|
|
132,090
|
Concrete
|
|
|
|
|
|
94,765
|
|
83,637
|
Calcium
|
|
|
|
|
|
2,026
|
|
1,951
|
Segment
sales
|
|
|
|
|
|
$1,104,806
|
|
$1,052,643
|
Aggregates
intersegment sales
|
|
|
|
|
(55,564)
|
|
(56,132)
|
Total
revenues
|
|
|
|
|
|
$1,049,242
|
|
$996,511
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
$194,131
|
|
$185,716
|
Asphalt
|
|
|
|
|
|
|
(2,435)
|
|
(3,272)
|
Concrete
|
|
|
|
|
|
9,213
|
|
8,563
|
Calcium
|
|
|
|
|
|
|
|
|
814
|
|
668
|
Total
|
|
|
|
|
|
|
|
$201,723
|
|
$191,675
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
Aggregates
|
|
|
|
|
|
$77,136
|
|
$72,521
|
Asphalt
|
|
|
|
|
|
|
8,734
|
|
8,550
|
Concrete
|
|
|
|
|
|
4,082
|
|
2,964
|
Calcium
|
|
|
|
|
|
49
|
|
60
|
Other
|
|
|
|
|
|
|
|
5,479
|
|
5,086
|
Total
|
|
|
|
|
|
|
|
$95,480
|
|
$89,181
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
|
|
|
|
$648,033
|
|
$628,607
|
Aggregates -
tons
|
|
|
|
|
|
45,048
|
|
45,637
|
Freight-adjusted
sales price 4
|
|
|
|
|
$14.39
|
|
$13.77
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
Asphalt Mix -
tons
|
|
|
|
|
|
2,057
|
|
2,022
|
Asphalt Mix - sales
price
|
|
|
|
|
|
$58.51
|
|
$55.91
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete
- cubic yards
|
|
|
|
734
|
|
670
|
Ready-mixed concrete
- sales price
|
|
|
|
$127.91
|
|
$123.94
|
|
|
|
|
|
|
|
|
|
|
|
|
Calcium -
tons
|
|
|
|
|
|
73
|
|
68
|
Calcium - sales
price
|
|
|
|
|
|
$27.56
|
|
$28.32
|
|
|
|
|
|
|
|
|
|
|
|
|
1Includes
product sales (crushed stone, sand and gravel, sand, and other
aggregates), as well as freight & delivery
costs that we
pass along to our customers, and service revenues related to
aggregates.
|
2Includes
product sales, as well as service revenues from our asphalt
construction paving business.
|
3Freight-adjusted revenues are Aggregates
segment sales excluding freight & delivery revenues and
immaterial
other revenues related to services,
such as landfill tipping fees that are derived from our aggregates
business.
|
4Freight-adjusted sales price is
calculated as freight-adjusted revenues divided by aggregates unit
shipments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 1
|
1.
Reconciliation of Non-GAAP Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates segment
freight-adjusted revenues is not a Generally Accepted Accounting
Principle (GAAP) measure. We present this metric as it is
consistent with the basis by which we review our operating results.
We believe that this presentation is consistent with our
competitors and meaningful to our investors as it excludes revenues
associated with freight & delivery, which are pass-through
activities. It also excludes immaterial other revenues related to
services, such as landfill tipping fees, that are derived from our
aggregates business. Additionally, we use this metric as the basis
for calculating the average sales price of our aggregates products.
Reconciliation of this metric to its nearest GAAP measure is
presented below:
|
|
Aggregates Segment
Freight-Adjusted Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
per ton data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Aggregates
segment
|
|
|
|
|
|
|
|
Segment
sales
|
|
|
|
|
$868,226
|
|
$834,965
|
Less: Freight
& delivery revenues 1
|
|
|
|
|
|
205,707
|
|
195,153
|
Other revenues
|
|
|
|
|
14,486
|
|
11,205
|
Freight-adjusted
revenues
|
|
|
|
|
$648,033
|
|
$628,607
|
Unit shipment -
tons
|
|
|
|
|
45,048
|
|
45,637
|
Freight-adjusted
sales price
|
|
|
|
|
$14.39
|
|
$13.77
|
|
|
|
|
|
|
|
|
|
|
|
1At the
segment level, freight & delivery revenues include intersegment
freight & delivery (which are eliminated at the consolidated
level) and freight to remote
distribution
sites.
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates segment
incremental gross profit flow-through rate is not a GAAP measure
and represents the year-over-year change in gross profit divided by
the year-over-year change in segment sales excluding freight &
delivery (revenues and costs). We present this metric as it is
consistent with the basis by which we review our operating results.
We believe that this presentation is consistent with our
competitors and meaningful to our investors as it excludes revenues
associated with freight & delivery, which are pass-through
activities. Reconciliation of this metrics to its nearest GAAP
measure is presented below:
|
|
Aggregates Segment
Incremental Gross Profit Margin in Accordance with
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Aggregates
segment
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
$194,131
|
|
$185,716
|
Segment
sales
|
|
|
|
|
$868,226
|
|
$834,965
|
Gross profit
margin
|
|
|
|
|
22.4%
|
|
22.2%
|
Incremental gross
profit margin
|
|
|
|
|
25.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates Segment
Incremental Gross Profit Flow-through Rate
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Aggregates
segment
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
$194,131
|
|
$185,716
|
Segment
sales
|
|
|
|
|
$868,226
|
|
$834,965
|
Less: Freight &
delivery revenues 1
|
|
|
|
|
|
|
205,707
|
|
195,153
|
Segment sales excluding
freight & delivery
|
|
|
|
|
$662,519
|
|
$639,812
|
Gross profit margin
excluding freight & delivery
|
|
|
|
|
29.3%
|
|
29.0%
|
Incremental gross
profit flow-through rate
|
|
|
|
|
37.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1At the
segment level, freight & delivery revenues include intersegment
freight & delivery (which are eliminated at the consolidated
level) and freight to remote
distribution
sites.
|
|
|
|
|
|
|
|
|
|
|
|
GAAP does not define
"Aggregates segment cash gross profit" and it should not be
considered as an alternative to earnings measures defined by GAAP.
We and the investment community use this metric to assess the
operating performance of our business. Additionally, we present
this metric as we believe that it closely correlates to long-term
shareholder value. We do not use this metric as a measure to
allocate resources. Aggregates segment cash gross profit per
ton is computed by dividing Aggregates segment cash gross profit by
tons shipped. Reconciliation of this metric to its nearest GAAP
measure is presented below:
|
|
Aggregates Segment
Cash Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
per ton data)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Aggregates
segment
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
$194,131
|
|
$185,716
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
77,136
|
|
72,521
|
Aggregates segment cash
gross profit
|
|
|
|
|
$271,267
|
|
$258,237
|
Unit shipments -
tons
|
|
|
|
|
45,048
|
|
45,637
|
Aggregates segment
cash gross profit per ton
|
|
|
|
|
$6.02
|
|
$5.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 2
|
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
|
|
|
GAAP does not define
"Earnings Before Interest, Taxes, Depreciation and Amortization"
(EBITDA) and it should not be considered as an alternative to
earnings measures defined by GAAP. We use this metric to assess the
operating performance of our business and as a basis for strategic
planning and forecasting as we believe that it closely correlates
to long-term shareholder value. We do not use this metric as a
measure to allocate resources. We adjust EBITDA for certain items
to provide a more consistent comparison of earnings performance
from period to period. Reconciliation of this metric to its nearest
GAAP measure is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
TTM
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
March
31
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net
earnings
|
|
$60,258
|
|
$63,299
|
|
$614,621
|
|
$526,125
|
|
Income tax
expense
|
|
12,194
|
|
10,693
|
|
136,699
|
|
121,045
|
|
Interest expense,
net
|
|
30,773
|
|
32,934
|
|
126,839
|
|
132,583
|
|
(Earnings) loss on
discontinued operations, net of tax
|
|
(260)
|
|
636
|
|
3,945
|
|
2,256
|
|
EBIT
|
|
|
|
$102,965
|
|
$107,562
|
|
$882,104
|
|
$782,009
|
|
Depreciation,
depletion, accretion and amortization
|
|
95,480
|
|
89,181
|
|
380,895
|
|
353,988
|
|
EBITDA
|
|
|
$198,445
|
|
$196,743
|
|
$1,262,999
|
|
$1,135,997
|
|
Gain on sale of
businesses
|
|
0
|
|
(4,064)
|
|
(9,289)
|
|
(4,064)
|
|
Property
donation
|
|
0
|
|
0
|
|
10,847
|
|
0
|
|
Business interruption
claims recovery
|
|
0
|
|
0
|
|
0
|
|
(559)
|
|
Charges associated with
divested operations
|
|
0
|
|
0
|
|
3,033
|
|
18,545
|
|
Business development
1
|
|
1,060
|
|
0
|
|
2,808
|
|
4,686
|
|
COVID-19 direct
incremental costs
|
|
648
|
|
0
|
|
648
|
|
0
|
|
Restructuring charges
2
|
|
868
|
|
0
|
|
7,325
|
|
1,974
|
|
Adjusted
EBITDA
|
|
$201,021
|
|
$192,679
|
|
$1,278,371
|
|
$1,156,579
|
|
Depreciation,
depletion, accretion and amortization
|
|
(95,480)
|
|
(89,181)
|
|
(380,895)
|
|
(353,988)
|
|
Adjusted
EBIT
|
|
$105,541
|
|
$103,498
|
|
$897,476
|
|
$802,591
|
|
1Represents non-routine charges associated
with acquisitions including the cost impact of purchase accounting
inventory valuations.
|
|
2Restructuring charges are included within
other operating expenses. The charges relate to managerial
restructuring.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Similar to our
presentation of Adjusted EBITDA, we present Adjusted Diluted EPS
from continuing operations to provide a more consistent comparison
of earnings performance from period to period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS from Continuing Operations (Adjusted Diluted
EPS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
TTM
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
March
31
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Diluted EPS from
continuing operations
|
|
$0.45
|
|
$0.48
|
|
$4.64
|
|
$3.95
|
|
Items included in
Adjusted EBITDA above
|
|
0.02
|
|
(0.02)
|
|
0.07
|
|
0.11
|
|
Tax reform income tax
savings
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.01
|
|
Adjusted Diluted
EPS
|
|
$0.47
|
|
$0.46
|
|
$4.71
|
|
$4.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 3
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We define Return on
Invested Capital (ROIC) as Adjusted EBITDA for the trailing-twelve
months divided by average invested capital (as illustrated below)
during the trailing 5-quarters. Our calculation of ROIC is
considered a non-GAAP financial measure because we calculate ROIC
using the non-GAAP metric EBITDA. We believe that our ROIC metric
is meaningful because it helps investors assess how effectively we
are deploying our assets. Although ROIC is a standard financial
metric, numerous methods exist for calculating a company's ROIC. As
a result, the method we use to calculate our ROIC may differ from
the methods used by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Invested
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
TTM
|
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Adjusted
EBITDA
|
|
|
|
|
|
$1,278,371
|
|
$1,156,579
|
Average Invested
Capital 1
|
|
|
|
|
|
|
|
Property, plant &
equipment
|
|
|
|
|
|
4,314,098
|
|
4,166,729
|
Goodwill
|
|
|
|
|
|
3,166,018
|
|
3,158,194
|
Other intangible
assets
|
|
|
|
|
|
1,081,741
|
|
1,099,572
|
Fixed and Intangible
Assets
|
|
|
|
|
|
$8,561,857
|
|
$8,424,495
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
1,263,843
|
|
1,106,662
|
Less: Cash and cash
equivalents
|
|
|
|
|
|
108,702
|
|
45,242
|
Less: Deferred
tax
|
|
|
|
|
|
17,985
|
|
0
|
Adjusted Current
Assets
|
|
|
|
|
|
1,137,156
|
|
1,061,420
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
573,944
|
|
669,535
|
Less: Current
maturities of long-term debt
|
|
|
|
|
|
24
|
|
23
|
Less: Short-term
debt
|
|
|
|
|
|
63,100
|
|
214,300
|
Adjusted Current
Liabilities
|
|
|
|
|
|
510,820
|
|
455,212
|
Adjusted Net Working
Capital
|
|
|
|
|
|
$626,336
|
|
$606,208
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Invested
Capital
|
|
|
|
|
|
$9,188,193
|
|
$9,030,703
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Invested
Capital
|
|
|
|
|
|
13.9%
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
1Average
Invested Capital is based on a trailing 5-quarters.
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/vulcan-reports-first-quarter-results-301053519.html
SOURCE Vulcan Materials Company