Company Also Sets Records for
Consolidated Net Sales, Gross Profit and Earnings from
Operations
Martin Marietta Materials, Inc. (NYSE:MLM) today reported results
for the second-quarter ended June 30, 2017.
Quarterly 2017 Highlights Include the
Following Second-Quarter Records: (All comparisons are
versus prior-year second quarter)
- Consolidated net sales of $996.3 million increased 8.8%
compared with $915.4 million
- Building Materials net sales of $931.7 million compared with
$856.6 million, an increase of 8.8%, and Magnesia Specialties net
sales of $64.6 million compared with $58.8 million, an increase of
9.7%
- Consolidated gross profit of $274.1 million compared with
$247.4 million, an increase of 10.8%
- Consolidated earnings from operations of $212.9 million
compared with $190.8 million, an increase of 11.5%
- Earnings per diluted share of $2.25 compared with $1.90, an
increase of 18.4%
- EBITDA of $292.3 million compared with $266.5 million, an
increase of 9.7%
Ward Nye, Chairman, President and CEO
of Martin Marietta, stated, “Our record second-quarter results
reflect improved sales, gross profit and earnings from operations
in each reportable group, underscoring the breadth of our business
and our ability to capitalize on the ongoing recovery in
construction activity. Positive residential and nonresidential
activity drove results, along with pricing improvements across our
aggregates product line, led by the Southeast Group’s 10.6 percent
increase. We overcame challenging operating conditions in several
key states, as near-record levels of precipitation in North
Carolina, South Carolina, Georgia and Florida negatively impacted
aggregates shipments and operating efficiencies in our historically
most profitable geographic areas. Looking ahead, we are optimistic
about the remainder of 2017 and beyond due to increased momentum
across almost our entire geographic footprint and the positive
near- and medium-term outlooks expressed by our customers.”
Mr. Nye added, “To ensure we are prepared for
the expected strong demand throughout the remainder of 2017 and
2018, we are continuing key operational initiatives,
including increasing production capabilities, investing in
personnel, and undertaking grading and equipment maintenance. Our
focus on increased production is particularly relevant for
high-demand products meeting Department of Transportation
specifications; this production ramp-up and increased operating
leverage should favorably impact our cost structure for the balance
of 2017.
“Consistent with the long-term nature of our
business and in alignment with our strategic plan, we recently
announced an agreement to acquire Bluegrass Materials Company
(Bluegrass), the largest privately-held, pure-play aggregates
business in the United States, for $1.625 billion in cash.
Bluegrass has a portfolio of 23 active sites with more than 125
years of strategically-located, high-quality reserves in Georgia,
South Carolina, Tennessee, Maryland and Kentucky.
Bluegrass’ strategic assets and impressive cost profile, combined
with the depth and strength of its personnel, are a natural fit
with Martin Marietta. We expect the transaction to be
accretive to earnings per diluted share and cash flow in the first
full year after closing, which is expected to occur in the fourth
quarter of 2017, following regulatory approvals and other customary
closing conditions.”
Mr. Nye concluded, “Our leading positions in
some of the nation’s fastest-growing, most vibrant markets underpin
our confidence in Martin Marietta’s ability to capitalize on the
durable, multi-year construction recovery and benefit from the
expected increased demand. We remain steadfast in our commitment to
further enhancing long-term shareholder value, with a relentless
focus on world-class safety standards, diligent cost discipline and
operational excellence.”
Mr. Nye’s CEO Earnings Commentary and Market
Perspective can be found on the investor relations portion of the
Company’s website.
NOTABLE ITEMS FOR THE SECOND-QUARTER
ENDED JUNE 30, 2017 (All growth and margin comparisons are
versus the prior-year period)
|
Three-months ended June 30, |
|
Six-months ended June 30, |
|
|
2017 |
|
|
2016 |
|
|
|
2017 |
|
|
2016 |
|
Consolidated net sales |
$ 996.3M |
$ 915.4M |
|
$ 1.788B |
$ 1.649B |
% variance |
|
8.8 |
% |
|
|
|
8.4 |
% |
|
Consolidated gross profit |
$ 274.1M |
$ 247.4M |
|
$ 421.2M |
$ 392.7M |
% variance |
|
10.8 |
% |
|
|
|
7.3 |
% |
|
Consolidated gross profit margin (excluding freight and delivery
revenues) |
|
27.5 |
% |
|
27.0 |
% |
|
|
23.6 |
% |
|
23.8 |
% |
margin variance |
50 bps |
|
|
(20 bps) |
|
Earnings from operations |
$ 212.9M |
$ 190.8M |
|
$ 290.0M |
$ 276.9M |
% variance |
|
11.5 |
% |
|
|
|
4.7 |
% |
|
EBITDA 1 |
$ 292.3M |
$ 266.5M |
|
$ 440.0M |
$ 419.1M |
% variance |
|
9.7 |
% |
|
|
|
5.0 |
% |
|
EBITDA margin as a % of net sales |
|
29.3 |
% |
|
29.1 |
% |
|
|
24.6 |
% |
|
25.4 |
% |
margin variance |
20 bps |
|
|
(80 bps) |
|
Earnings per diluted share |
$ |
2.25 |
|
$ |
1.90 |
|
|
$ |
2.91 |
|
$ |
2.60 |
|
% variance |
|
18.4 |
% |
|
|
|
11.9 |
% |
|
1 See appendix for a reconciliation to net
earnings.
Operating Results(All comparisons are versus
the prior-year period unless noted otherwise)
Building Materials Business
In the second quarter of 2017, net sales for the
Building Materials business, which includes the aggregates, cement,
ready mixed concrete and asphalt and paving product lines, were
$931.7 million, an increase of 8.8 percent from $856.6 million,
driven by pricing and volume gains in all product lines. The
aggregates product line average selling price improvement of 3.8
percent was led by a 10.6 percent increase in the Southeast Group.
The West Group and Mid-America Group reported increases of 3.4
percent and 2.4 percent, respectively. The cement product line had
pricing growth of 5.2 percent, further reinforcing the underlying
positive market fundamentals in Texas. Ready mixed concrete and
asphalt pricing increased 1.4 percent and 11.1 percent,
respectively.
Aggregates product line shipments increased 2.0
percent compared with the second quarter of 2016. Volume growth was
led by the West Group’s increase of 3.6 percent followed by 2.0
percent growth in the Mid-America Group. Volume growth in the
Mid-America Group was negatively impacted by heavy
precipitation. In addition, the Southeast Group’s shipments
were particularly affected by wet weather in Georgia throughout the
majority of the second quarter and decreased 3.2 percent compared
with the second quarter of 2016. Total cement shipments increased
8.0 percent. Ready mixed concrete shipments, including volumes from
acquired businesses, increased 11.5 percent. Asphalt volumes
increased 16.5 percent compared with the second quarter of 2016,
benefitting from robust demand in Colorado.
Gross margin (excluding freight and delivery
revenues) for the Building Materials business was 26.8 percent, an
increase of 30 basis points, driven by the Southeast Group’s nearly
250-basis-point improvement. Further growth was hindered by
poor, weather-impacted operating conditions. The Building
Materials business results reflect cement kiln maintenance costs of
$3.5 million for the quarter compared with $5.7 million. Remaining
planned kiln maintenance costs for the year are $10.6 million, with
nearly all to occur in the fourth quarter. Total kiln maintenance
costs for the full year 2017 are expected to be $18.3 million
compared with $20.9 million in the prior year.
Infrastructure Market
Highlights
- For the quarter, shipments to the infrastructure market were
relatively flat and comprised 41 percent of second-quarter
aggregates product line volumes, which remains below the Company’s
five-year average. This is attributable to continued
under-investment in the nation’s infrastructure and greater
private-sector nonresidential and residential investments
Nonresidential Market
Highlights
- The nonresidential market represented 32 percent of
second-quarter aggregates product line shipments. The light
nonresidential market, which consists primarily of office and
retail construction, increased 3.4 percent for the quarter;
however, heavy nonresidential activity, which includes industrial
building as well as energy and energy-related construction, was
relatively flat, resulting in a 1.6 percent increase in overall
nonresidential shipments.
- The Southeast Group reported strong industrial construction
growth. However, in-line with management’s expectations, the
West Group reported a decline in nonresidential shipments due to
the completion of several large energy-related projects in 2016
that were not immediately replaced in the first half of 2017.
Residential Market
Highlights
- The residential market accounted for 20 percent of aggregates
product line shipments for the second quarter.
- Volumes to this segment increased 14.8 percent, driven by
continued strength in housing across the Company’s geographic
footprint.
- Texas, Florida, North Carolina, Georgia and South Carolina, key
geographies for the Building Materials business, comprised five of
the top ten states for single family housing starts as of May
2017. Additionally, on the metro-level, Dallas, Tampa,
Austin, Houston, Atlanta, Charlotte, Raleigh and Orlando comprised
the top eight for single family unit starts.
The ChemRock/Rail market accounted for the
remaining 7 percent of aggregates product line volumes and declined
versus the prior-year quarter.
Magnesia Specialties Business
For the second quarter of 2017, net sales for
the Magnesia Specialties business were $64.6 million, an increase
of 9.7 percent from $58.8 million, with growth in both the
chemicals and lime product lines. Gross profit increased 8.8
percent to $23.6 million and gross margin (excluding freight and
delivery revenues) remained strong at 36.6 percent for the second
quarter 2017.
Steel capacity utilization increased to
approximately 74.4 percent in 2017, compared with the prior-year
utilization rate of approximately 72.4 percent.
Consolidated Operating Results
Selling, general and administrative (SG&A)
expenses were 6.9 percent of net sales, reflective of a higher
second-quarter accrual rate in performance-based incentive
compensation compared with the prior-year quarter. Earnings from
operations for the second quarter were $212.9 million in 2017
compared with $190.8 million in 2016, an increase of 11.5
percent.
The estimated effective income tax rate was 26.8
percent for the second quarter 2017, reflecting a 154-basis-point
benefit from excess tax benefits associated with option exercises
and vesting of stock-based compensation awards. Effective
January 1, 2017, the Company adopted ASU 2016-09, Improvements to
Employee Share-Based Payment Accounting, which requires excess
income tax benefits and tax deficiencies be recorded in tax
expense, as a discrete event, in the period shares are issued or
options are exercised.
Liquidity and Capital Resources
Cash provided by operating activities for the
six-months ended June 30, 2017 was $229.6 million in 2017 compared
with $209.8 million in 2016.
Property, plant and equipment additions for the
six-months ended June 30, 2017 were $216 million, reflecting the
continued strategic deployment of capital into the business,
including mobile fleet purchases that will reduce maintenance and
repair costs. Full-year capital spending is expected to range
from $450 million to $500 million.
At June 30, 2017, the ratio of consolidated debt
to consolidated EBITDA, as defined, for the trailing-12 months was
1.8 times.
Capital Allocation Priorities Remain
Unchanged
Martin Marietta is dedicated to maintaining
disciplined capital allocation to further enhance shareholder
value. The Company’s unchanged capital allocation priorities
include:
- The right acquisitions that enable the successful
execution of the Company’s strategic growth plan
- Organic capital investment
- Return of cash to shareholders through:
- A meaningful and sustainable dividend; and
- Share repurchases
In keeping with these stated capital allocation
priorities, the Company recently announced an agreement to acquire
Bluegrass for $1.625 billion in cash. This transaction is
consistent with the long-term nature of Martin Marietta’s business
and in alignment with its strategic plan.
The Board of Directors of Martin Marietta
previously authorized a share repurchase program under which the
Company may acquire up to 20 million shares of its outstanding
common stock. Since announcing its repurchase authorization in
February of 2015, the Company has repurchased 5.4 million shares
and, including the payment of dividends, returned $1.15 billion to
shareholders. As of June 30, 2017, there were 62.8 million
shares of Martin Marietta common stock outstanding and 14.6 million
shares remaining under the current repurchase authorization.
Full-Year 2017 Outlook
The Company is encouraged by largely positive
trends in the markets it serves and its ability to execute its
strategic business plans. Notably:
- Public sector growth is expected to continue in 2017 as new
monies flow into the system. Fixing America’s Surface
Transportation, or FAST, Act projects should accelerate through the
year, supported by ongoing activity funded through the
Transportation Infrastructure Finance and Innovation Act (TIFIA).
Additionally, state and local initiatives that support
infrastructure funding, including gas tax increases and other
ballot initiatives passed over the past 24 months, are expected to
grow and continue to play an expanded role in public-sector
activity.
- Nonresidential construction is expected to modestly increase in
both the heavy industrial and commercial sectors. The Dodge
Momentum Index is near its highest level since 2009, signaling
continued growth. Additional energy-related economic activity,
including follow-on public and private construction, will be mixed.
While the majority of the $61.5 billion of new energy-related
projects are scheduled to start in 2018, earlier commencement may
provide additional growth in 2017.
- Residential construction is expected to continue growing,
particularly in key Martin Marietta markets, driven by employment
gains, historically low levels of construction activity over the
previous years, low mortgage rates, higher lot development, and
higher multi-family rental rates.
Based on these trends and expectations,
including a return to more normal weather patterns, the Company
anticipates achieving the following for the full year, exclusive of
any impact from the pending acquisition of Bluegrass:
- Aggregates product line end-use markets compared with 2016
levels are as follows:
- Infrastructure market to increase mid-single digits.
- Nonresidential market to increase in the low- to mid-single
digits.
- Residential market to increase in the mid- to high-single
digits.
- ChemRock/Rail market to remain stable.
2017 GUIDANCE |
|
Low |
|
High |
Consolidated Results |
Consolidated net sales 1 |
$ 3.75B |
|
$ 3.95B |
Consolidated gross profit |
$ 1.0B |
|
$ 1.1B |
|
SG&A |
$ 255M |
|
$ 265M |
Interest expense |
$ 85M |
|
$ 90M |
Estimated tax rate (excluding discrete events) |
|
30 |
% |
|
|
30 |
% |
Capital expenditures |
$ 450M |
|
$ 500M |
|
EBITDA |
$ 1.05B |
|
$ 1.13B |
|
Building Materials Business |
Aggregates Product Line |
Volume (total tons) 2 |
165M |
|
167M |
% growth 2 |
|
4.0 |
% |
|
|
5.5 |
% |
|
|
|
|
Average selling price per ton |
$ |
13.50 |
|
|
$ |
13.75 |
|
% growth |
|
5.0 |
% |
|
|
7.0 |
% |
Net sales |
$ 2.2B |
|
$ 2.3B |
Gross profit |
$ 660M |
|
$ 725M |
|
|
|
|
Cement Product Line |
Net sales |
$ 380M |
|
$ 400M |
Gross profit |
$ 130M |
|
$ 155M |
|
Ready Mixed Concrete and Asphalt/Paving
Product Lines |
Net sales |
$ 1.325B |
|
$ 1.400B |
Gross profit |
$ 145M |
|
$ 155M |
|
|
|
|
Magnesia Specialties
Business |
Net sales |
$ 235M |
|
$ 240M |
Gross profit |
$ 85M |
|
$ 90M |
1 2017 consolidated net sales exclude $390
million related to estimated interproduct sales.
2 Represents 2017 total aggregates volumes,
which includes approximately 11.6 million internal tons. Volume
growth ranges are in comparison to total volumes of 158.6 million
tons as reported for the full year 2016, which includes 10.4
million internal tons.
Risks to Outlook
The 2017 outlook includes management’s
assessment of the likelihood of certain risks and uncertainties
that may affect performance, including but not limited to: both
price and volume, and a recurrence of widespread decline in
aggregates volume negatively affecting aggregates price; the
termination, capping and/or reduction of the federal and/or state
gasoline tax(es) or other revenue related to infrastructure
construction; a significant change in the funding patterns for
traditional federal, state and/or local infrastructure projects;
the United States Congress’ inability to reach agreement among
themselves or with the current Administration on policy issues that
impact the federal budget; the volatility in the commencement of
infrastructure projects; a reduction in defense spending, and the
subsequent impact on construction activity on or near military
bases; a decline in nonresidential construction; a further decline
in energy-related construction activity resulting from a sustained
period of low global oil prices or changes in oil production
patterns in response to this decline and certain regulatory or
other economic factors; a slowdown in the residential construction
recovery; a reduction in economic activity in the Company’s Midwest
states resulting from reduced funding levels provided by the
Agricultural Act of 2014 and a sustained reduction in capital
investment by the railroads; an increase in the cost of compliance
with governmental laws, rules and regulations; construction labor
shortages and/or supply-chain challenges; and unexpected equipment
failures, unscheduled maintenance, industrial accident or other
prolonged and/or significant disruption to its cement and/or its
Magnesia Specialties production facilities. Further,
increased highway construction funding pressures resulting from
either federal or state issues can affect profitability. If
these negatively affect transportation budgets more than in the
past, construction spending could be reduced. Cement is
subject to cyclical supply and demand and price fluctuations.
The Magnesia Specialties business essentially runs at
capacity; therefore any unplanned changes in costs or realignment
of customers introduce volatility to the earnings of this
segment.
The Company’s principal business serves
customers in construction markets. This concentration could
increase the risk of potential losses on customer receivables;
however, payment bonds normally posted on public projects, together
with lien rights on private projects, mitigate the risk of
uncollectible receivables. The level of demand in the
Company’s end-use markets, production levels and the management of
production costs will affect the operating leverage of the Building
Materials business and, therefore, profitability. Production
costs in the Building Materials business are also sensitive to
energy and raw material prices, both directly and indirectly.
Diesel fuel, coal, and other consumables change production costs
directly through consumption or indirectly by increased
energy-related input costs, such as steel, explosives, tires and
conveyor belts. Fluctuating diesel fuel pricing also affects
transportation costs, primarily through fuel surcharges in the
Company’s long-haul distribution network. The Magnesia
Specialties business is sensitive to changes in domestic steel
capacity utilization as well as the absolute price and fluctuation
in the cost of natural gas.
Transportation in the Company’s long-haul
network, particularly the supply of rail cars and locomotive power
and condition of rail infrastructure to move trains, affects the
Company’s efficient transportation of aggregates products in
certain markets, most notably Texas, Colorado, Florida, North
Carolina and the Gulf Coast. In addition, availability of
rail cars and locomotives affects the Company’s movement of
essential dolomitic lime for magnesia chemicals, to both the
Company’s plant in Manistee, Michigan and its customers. The
availability of trucks, drivers and railcars to transport the
Company’s products, particularly in markets experiencing high
growth and increased demand, is also a risk and pressures the
associated costs.
All of the Company’s businesses are also subject
to weather-related risks that can significantly affect production
schedules and profitability. The first and fourth quarters
are most adversely affected by winter weather. Hurricane
activity in the Atlantic Ocean and Gulf Coast generally is most
active during the third and fourth quarters. In fact, in early
October 2016, Hurricane Matthew generated winds and significant
amounts of rainfall disrupting operations from the Bahamas,
Florida, Georgia and the Carolinas. However, after
hurricane-related flood waters recede, management expects an
increase in construction activity as roads, homes and businesses
are repaired.
Risks to the outlook also include shipment
declines resulting from economic events beyond the Company’s
control. In addition to the impact on nonresidential and
residential construction, the Company is exposed to risk in its
estimated outlook from credit markets and the availability of and
interest cost related to its debt.
The Company’s future performance is also exposed
to risks from tax reform at the federal and state levels.
CONFERENCE CALL INFORMATION
The Company will discuss its second-quarter 2017
earnings results on a conference call and an online web simulcast
today (August 1, 2017). The live broadcast of the Martin
Marietta conference call will begin at 11:00 a.m. Eastern Time
today. An online replay will be available approximately two
hours following the conclusion of the live broadcast. A link
to these events will be available at the Company’s website.
Additionally, the Company has posted supplemental financial
information related to its second-quarter performance on its
website. For those investors without online web access, the
conference call may also be accessed by calling (970) 315-0423,
confirmation number 58426317.
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.
If you are interested in Martin Marietta
Materials, Inc. 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 press 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. Forward-looking statements 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 "anticipate," "expect," "should be," "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.
Factors that the Company currently believes
could cause actual results to differ materially from the
forward-looking statements in this press release include, the
performance of the United States economy; widespread decline in
aggregates pricing; the history of both cement and ready mixed
concrete being subject to significant changes in supply, demand and
price; the termination, capping and/or reduction or suspension of
the federal and/or state gasoline tax(es) or other revenue related
to infrastructure construction; the level and timing of federal and
state transportation funding, most particularly in Texas, North
Carolina, Iowa, Colorado and Georgia; 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; a further slowdown in
energy-related construction activity, particularly in Texas; a
slowdown in residential construction recovery; a reduction in
construction activity and related shipments due to a decline in
funding under the domestic farm bill; unfavorable weather
conditions, particularly Atlantic Ocean 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; the volatility of fuel costs, particularly diesel fuel,
and the impact on the cost 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; unexpected
equipment failures, unscheduled maintenance, industrial accident or
other prolonged and/or significant disruption to production
facilities; increasing governmental regulation, including
environmental laws; transportation availability, notably the
availability of railcars and locomotive power to move trains to
supply the Company’s Texas, Florida and Gulf Coast markets;
increased transportation costs, including increases from higher
passed-through energy 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; proper
functioning of information technology and automated operating
systems to manage or support operations; inflation and its effect
on both production and interest costs; ability to successfully
integrate acquisitions quickly and in a cost-effective manner and
achieve 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; reduction of the
Company’s credit rating to non-investment grade resulting from
strategic acquisitions; and other risk factors listed from time to
time found in the Company’s filings with the SEC. Other factors
besides those listed here may also adversely affect the Company,
and may 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 amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Net sales |
|
$ |
996.3 |
|
|
$ |
915.4 |
|
|
$ |
1,788.0 |
|
|
$ |
1,649.4 |
|
Freight and delivery
revenues |
|
|
67.2 |
|
|
|
61.9 |
|
|
|
119.4 |
|
|
|
116.6 |
|
Total
revenues |
|
|
1,063.5 |
|
|
|
977.3 |
|
|
|
1,907.4 |
|
|
|
1,766.0 |
|
Cost of sales |
|
|
722.2 |
|
|
|
668.0 |
|
|
|
1,366.8 |
|
|
|
1,256.7 |
|
Freight and delivery
costs |
|
|
67.2 |
|
|
|
61.9 |
|
|
|
119.4 |
|
|
|
116.6 |
|
Total
cost of revenues |
|
|
789.4 |
|
|
|
729.9 |
|
|
|
1,486.2 |
|
|
|
1,373.3 |
|
Gross
profit |
|
|
274.1 |
|
|
|
247.4 |
|
|
|
421.2 |
|
|
|
392.7 |
|
Selling, general and
administrative expenses |
|
|
68.4 |
|
|
|
59.8 |
|
|
|
137.9 |
|
|
|
118.1 |
|
Acquisition-related
expenses, net |
|
|
2.0 |
|
|
|
0.2 |
|
|
|
2.0 |
|
|
|
0.6 |
|
Other operating income,
net |
|
|
(9.2 |
) |
|
|
(3.4 |
) |
|
|
(8.7 |
) |
|
|
(2.9 |
) |
Earnings
from operations |
|
|
212.9 |
|
|
|
190.8 |
|
|
|
290.0 |
|
|
|
276.9 |
|
Interest expense |
|
|
24.0 |
|
|
|
20.3 |
|
|
|
44.9 |
|
|
|
40.3 |
|
Other nonoperating
income, net |
|
|
(5.4 |
) |
|
|
(5.0 |
) |
|
|
(5.9 |
) |
|
|
(3.7 |
) |
Earnings
before taxes on income |
|
|
194.3 |
|
|
|
175.5 |
|
|
|
251.0 |
|
|
|
240.3 |
|
Taxes on
income |
|
|
52.0 |
|
|
|
53.4 |
|
|
|
66.5 |
|
|
|
73.1 |
|
Consolidated net earnings |
|
|
142.3 |
|
|
|
122.1 |
|
|
|
184.5 |
|
|
|
167.2 |
|
Less: Net (loss)
earnings attributable to noncontrolling interests |
|
|
- |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
0.2 |
|
Net earnings
attributable to Martin Marietta Materials, Inc. |
|
$ |
142.3 |
|
|
$ |
122.1 |
|
|
$ |
184.6 |
|
|
$ |
167.0 |
|
|
|
|
|
|
|
|
|
|
Net earnings per common
share attributable to common shareholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.26 |
|
|
$ |
1.91 |
|
|
$ |
2.92 |
|
|
$ |
2.61 |
|
Diluted |
|
$ |
2.25 |
|
|
$ |
1.90 |
|
|
$ |
2.91 |
|
|
$ |
2.60 |
|
|
|
|
|
|
|
|
|
|
Dividends per common
share |
|
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.84 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
Average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
62.9 |
|
|
|
63.5 |
|
|
|
63.0 |
|
|
|
63.8 |
|
Diluted |
|
|
63.1 |
|
|
|
63.8 |
|
|
|
63.2 |
|
|
|
64.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Financial Highlights |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Net sales: |
|
|
|
|
|
|
|
|
Building
Materials Business: |
|
|
|
|
|
|
|
|
Mid-America Group |
|
$ |
269.8 |
|
|
$ |
259.0 |
|
|
$ |
447.2 |
|
|
$ |
432.3 |
|
Southeast
Group |
|
|
88.5 |
|
|
|
82.7 |
|
|
|
175.2 |
|
|
|
150.0 |
|
West
Group |
|
|
573.4 |
|
|
|
514.9 |
|
|
|
1,037.8 |
|
|
|
948.7 |
|
Total
Building Materials Business |
|
|
931.7 |
|
|
|
856.6 |
|
|
|
1,660.2 |
|
|
|
1,531.0 |
|
Magnesia
Specialties |
|
|
64.6 |
|
|
|
58.8 |
|
|
|
127.8 |
|
|
|
118.4 |
|
Total |
|
$ |
996.3 |
|
|
$ |
915.4 |
|
|
$ |
1,788.0 |
|
|
$ |
1,649.4 |
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss): |
|
|
|
|
|
|
|
|
Building
Materials Business: |
|
|
|
|
|
|
|
|
Mid-America Group |
|
$ |
98.6 |
|
|
$ |
92.8 |
|
|
$ |
124.8 |
|
|
$ |
120.4 |
|
Southeast
Group |
|
|
18.9 |
|
|
|
15.6 |
|
|
|
33.2 |
|
|
|
25.9 |
|
West
Group |
|
|
132.7 |
|
|
|
118.9 |
|
|
|
217.3 |
|
|
|
207.2 |
|
Total
Building Materials Business |
|
|
250.2 |
|
|
|
227.3 |
|
|
|
375.3 |
|
|
|
353.5 |
|
Magnesia
Specialties |
|
|
23.6 |
|
|
|
21.7 |
|
|
|
45.9 |
|
|
|
44.7 |
|
Corporate |
|
|
0.3 |
|
|
|
(1.6 |
) |
|
|
- |
|
|
|
(5.5 |
) |
Total |
|
$ |
274.1 |
|
|
$ |
247.4 |
|
|
$ |
421.2 |
|
|
$ |
392.7 |
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses: |
|
|
|
|
|
|
|
|
Building
Materials Business: |
|
|
|
|
|
|
|
|
Mid-America Group |
|
$ |
13.7 |
|
|
$ |
13.4 |
|
|
$ |
27.3 |
|
|
$ |
26.4 |
|
Southeast
Group |
|
|
4.5 |
|
|
|
4.5 |
|
|
|
8.8 |
|
|
|
8.4 |
|
West
Group |
|
|
25.9 |
|
|
|
23.6 |
|
|
|
50.9 |
|
|
|
46.5 |
|
Total
Building Materials Business |
|
|
44.1 |
|
|
|
41.5 |
|
|
|
87.0 |
|
|
|
81.3 |
|
Magnesia
Specialties |
|
|
2.4 |
|
|
|
2.4 |
|
|
|
4.8 |
|
|
|
4.8 |
|
Corporate |
|
|
21.9 |
|
|
|
15.9 |
|
|
|
46.1 |
|
|
|
32.0 |
|
Total |
|
$ |
68.4 |
|
|
$ |
59.8 |
|
|
$ |
137.9 |
|
|
$ |
118.1 |
|
|
|
|
|
|
|
|
|
|
Earnings
(Loss) from operations: |
|
|
|
|
|
|
|
|
Building
Materials Business: |
|
|
|
|
|
|
|
|
Mid-America Group |
|
$ |
85.4 |
|
|
$ |
80.8 |
|
|
$ |
98.7 |
|
|
$ |
95.5 |
|
Southeast
Group |
|
|
14.3 |
|
|
|
11.6 |
|
|
|
24.5 |
|
|
|
18.6 |
|
West
Group |
|
|
112.5 |
|
|
|
99.4 |
|
|
|
173.7 |
|
|
|
165.2 |
|
Total
Building Materials Business |
|
|
212.2 |
|
|
|
191.8 |
|
|
|
296.9 |
|
|
|
279.3 |
|
Magnesia
Specialties |
|
|
21.1 |
|
|
|
19.3 |
|
|
|
41.0 |
|
|
|
39.9 |
|
Corporate |
|
|
(20.4 |
) |
|
|
(20.3 |
) |
|
|
(47.9 |
) |
|
|
(42.3 |
) |
Total |
|
$ |
212.9 |
|
|
$ |
190.8 |
|
|
$ |
290.0 |
|
|
$ |
276.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Financial Highlights |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Net sales by product
line: |
|
|
|
|
|
|
|
|
Building
Materials Business: |
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
578.4 |
|
|
$ |
547.3 |
|
|
$ |
1,029.8 |
|
|
$ |
978.2 |
|
Ready
Mixed Concrete |
|
|
241.9 |
|
|
|
214.9 |
|
|
|
464.3 |
|
|
|
401.8 |
|
Cement |
|
|
99.0 |
|
|
|
87.4 |
|
|
|
192.7 |
|
|
|
184.3 |
|
Asphalt
and Paving |
|
|
112.0 |
|
|
|
88.1 |
|
|
|
138.6 |
|
|
|
101.9 |
|
Less: Interproduct sales |
|
|
(99.6 |
) |
|
|
(81.1 |
) |
|
|
(165.2 |
) |
|
|
(135.2 |
) |
Total
Building Materials Business |
|
|
931.7 |
|
|
|
856.6 |
|
|
|
1,660.2 |
|
|
|
1,531.0 |
|
Magnesia
Specialties Business |
|
|
64.6 |
|
|
|
58.8 |
|
|
|
127.8 |
|
|
|
118.4 |
|
Total |
|
$ |
996.3 |
|
|
$ |
915.4 |
|
|
$ |
1,788.0 |
|
|
$ |
1,649.4 |
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) by
product line: |
|
|
|
|
|
|
|
|
Building
Materials Business: |
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
173.5 |
|
|
$ |
165.0 |
|
|
$ |
252.8 |
|
|
$ |
247.1 |
|
Ready
Mixed Concrete |
|
|
26.9 |
|
|
|
25.3 |
|
|
|
46.7 |
|
|
|
43.2 |
|
Cement |
|
|
29.4 |
|
|
|
24.1 |
|
|
|
60.3 |
|
|
|
56.6 |
|
Asphalt
and Paving |
|
|
20.4 |
|
|
|
12.9 |
|
|
|
15.5 |
|
|
|
6.6 |
|
Total
Building Materials Business |
|
|
250.2 |
|
|
|
227.3 |
|
|
|
375.3 |
|
|
|
353.5 |
|
Magnesia
Specialties Business |
|
|
23.6 |
|
|
|
21.7 |
|
|
|
45.9 |
|
|
|
44.7 |
|
Corporate |
|
|
0.3 |
|
|
|
(1.6 |
) |
|
|
- |
|
|
|
(5.5 |
) |
Total |
|
$ |
274.1 |
|
|
$ |
247.4 |
|
|
$ |
421.2 |
|
|
$ |
392.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Balance Sheet Data |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
June 30, |
|
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
|
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
36.7 |
|
$ |
50.0 |
|
$ |
28.6 |
|
Accounts
receivable, net |
|
|
570.6 |
|
|
457.9 |
|
|
534.5 |
|
Inventories, net |
|
|
549.9 |
|
|
521.6 |
|
|
504.9 |
|
Other
current assets |
|
|
87.1 |
|
|
56.9 |
|
|
53.9 |
|
Property,
plant and equipment, net |
|
|
3,505.3 |
|
|
3,423.4 |
|
|
3,322.2 |
|
Intangible assets, net |
|
|
2,663.3 |
|
|
2,670.7 |
|
|
2,643.5 |
|
Other
noncurrent assets |
|
|
103.0 |
|
|
120.4 |
|
|
145.7 |
|
Total
assets |
|
$ |
7,515.9 |
|
$ |
7,300.9 |
|
$ |
7,233.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
Current
maturities of long-term debt and short-term facilities |
|
$ |
140.0 |
|
$ |
180.0 |
|
$ |
238.2 |
|
Other
current liabilities |
|
|
394.3 |
|
|
366.6 |
|
|
363.4 |
|
Long-term
debt (excluding current maturities) |
|
|
1,641.9 |
|
|
1,506.2 |
|
|
1,541.1 |
|
Other
noncurrent liabilities |
|
|
1,139.2 |
|
|
1,105.5 |
|
|
1,074.1 |
|
Total
equity |
|
|
4,200.5 |
|
|
4,142.6 |
|
|
4,016.5 |
|
Total
liabilities and equity |
|
$ |
7,515.9 |
|
$ |
7,300.9 |
|
$ |
7,233.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Statements of Cash
Flows |
|
(In millions) |
|
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Operating
activities: |
|
|
|
|
|
Consolidated net earnings |
|
$ |
184.5 |
|
|
$ |
167.2 |
|
|
Adjustments to reconcile consolidated net earnings to net cash
provided by operating activities: |
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
146.1 |
|
|
|
139.6 |
|
|
Stock-based compensation expense |
|
|
17.7 |
|
|
|
12.8 |
|
|
Gain on
divestitures and sales of assets |
|
|
(17.5 |
) |
|
|
(0.3 |
) |
|
Deferred
income taxes |
|
|
2.5 |
|
|
|
34.4 |
|
|
Other
items, net |
|
|
(4.4 |
) |
|
|
(5.8 |
) |
|
Changes
in operating assets and liabilities, net of effects of acquisitions
and divestitures: |
|
|
|
|
|
Accounts
receivable, net |
|
|
(112.7 |
) |
|
|
(117.5 |
) |
|
Inventories, net |
|
|
(28.2 |
) |
|
|
(33.1 |
) |
|
Accounts
payable |
|
|
11.7 |
|
|
|
32.5 |
|
|
Other
assets and liabilities, net |
|
|
29.9 |
|
|
|
(20.0 |
) |
|
Net cash provided by
operating activities |
|
|
229.6 |
|
|
|
209.8 |
|
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
Additions
to property, plant and equipment |
|
|
(216.1 |
) |
|
|
(210.5 |
) |
|
Acquisitions, net |
|
|
(2.2 |
) |
|
|
(123.0 |
) |
|
Cash
received in acquisition |
|
|
- |
|
|
|
3.4 |
|
|
Proceeds
from divestitures and sales of assets |
|
|
32.1 |
|
|
|
4.5 |
|
|
Payment
of railcar construction advances |
|
|
(40.9 |
) |
|
|
- |
|
|
Reimbursement of railcar construction advances |
|
|
40.9 |
|
|
|
- |
|
|
Net cash used for
investing activities |
|
|
(186.2 |
) |
|
|
(325.6 |
) |
|
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
Borrowings of long-term debt |
|
|
941.2 |
|
|
|
280.0 |
|
|
Repayments of long-term debt |
|
|
(845.0 |
) |
|
|
(70.4 |
) |
|
Payments
on capital leases |
|
|
(1.8 |
) |
|
|
(1.6 |
) |
|
Debt
issue costs |
|
|
(1.1 |
) |
|
|
- |
|
|
Change in
bank overdraft |
|
|
3.8 |
|
|
|
(3.1 |
) |
|
Contributions by noncontrolling interest to joint venture |
|
|
0.2 |
|
|
|
- |
|
|
Repurchases of common stock |
|
|
(100.0 |
) |
|
|
(190.0 |
) |
|
Dividends
paid |
|
|
(53.1 |
) |
|
|
(51.5 |
) |
|
Issuances
of common stock |
|
|
7.9 |
|
|
|
18.1 |
|
|
Shares
withheld for employees' income tax obligations |
|
|
(8.8 |
) |
|
|
(5.5 |
) |
|
Net cash used for
financing activities |
|
|
(56.7 |
) |
|
|
(24.0 |
) |
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents |
|
|
(13.3 |
) |
|
|
(139.8 |
) |
|
Cash and cash
equivalents, beginning of period |
|
|
50.0 |
|
|
|
168.4 |
|
|
Cash and cash
equivalents, end of period |
|
$ |
36.7 |
|
|
$ |
28.6 |
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Operational Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, 2017 |
|
June 30, 2016 |
|
|
|
Volume |
|
Pricing |
|
Volume |
|
Pricing |
|
Volume/Pricing
Variance (1) |
|
|
|
|
|
|
|
|
|
Mid-America Group |
|
|
2.0 |
% |
|
|
2.4 |
% |
|
|
0.6 |
% |
|
|
3.2 |
% |
|
Southeast Group |
|
|
(3.2 |
%) |
|
|
10.6 |
% |
|
|
5.5 |
% |
|
|
10.5 |
% |
|
West
Group |
|
|
3.6 |
% |
|
|
3.4 |
% |
|
|
0.1 |
% |
|
|
3.0 |
% |
|
Total Aggregates
Product Line (2) |
|
|
2.0 |
% |
|
|
3.8 |
% |
|
|
1.0 |
% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
Shipments (tons in thousands) |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Mid-America Group |
|
|
20,513 |
|
|
|
20,116 |
|
|
|
33,251 |
|
|
|
33,054 |
|
|
Southeast Group |
|
|
5,203 |
|
|
|
5,375 |
|
|
|
10,231 |
|
|
|
9,693 |
|
|
West
Group |
|
|
17,707 |
|
|
|
17,091 |
|
|
|
32,552 |
|
|
|
32,515 |
|
|
Total Aggregates
Product Line (2) |
|
|
43,423 |
|
|
|
42,582 |
|
|
|
76,034 |
|
|
|
75,262 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Volume/pricing variances reflect the percentage
increase (decrease) from the comparable period in the prior
year. |
|
(2) Aggregates product line includes acquisitions from the
date of acquisition and divestitures through the date of
disposal. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Shipments (in thousands) |
|
|
|
|
|
|
|
|
|
Aggregates tons - external customers |
|
|
40,411 |
|
|
|
39,895 |
|
|
|
70,829 |
|
|
|
70,655 |
|
|
Internal
aggregates tons used in other product lines |
|
|
3,012 |
|
|
|
2,687 |
|
|
|
5,205 |
|
|
|
4,607 |
|
|
Total
aggregates tons |
|
|
43,423 |
|
|
|
42,582 |
|
|
|
76,034 |
|
|
|
75,262 |
|
|
|
|
|
|
|
|
|
|
|
|
Ready
Mixed Concrete - cubic yards |
|
|
2,226 |
|
|
|
1,997 |
|
|
|
4,282 |
|
|
|
3,783 |
|
|
|
|
|
|
|
|
|
|
|
|
Cement
tons - external customers |
|
|
620 |
|
|
|
578 |
|
|
|
1,226 |
|
|
|
1,263 |
|
|
Internal
cement tons used in other product lines |
|
|
302 |
|
|
|
276 |
|
|
|
601 |
|
|
|
548 |
|
|
Total
Cement tons |
|
|
922 |
|
|
|
854 |
|
|
|
1,827 |
|
|
|
1,811 |
|
|
|
|
|
|
|
|
|
|
|
|
Asphalt
tons - external customers |
|
|
325 |
|
|
|
263 |
|
|
|
478 |
|
|
|
343 |
|
|
Internal
asphalt tons used in road paving business |
|
|
662 |
|
|
|
584 |
|
|
|
786 |
|
|
|
649 |
|
|
Total
asphalt tons |
|
|
987 |
|
|
|
847 |
|
|
|
1,264 |
|
|
|
992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit
sales price by product line (including internal
sales): |
|
|
|
|
|
|
|
|
|
Aggregates (per ton) |
|
$ |
13.24 |
|
|
$ |
12.76 |
|
|
$ |
13.45 |
|
|
$ |
12.88 |
|
|
Ready
Mixed Concrete (per cubic yard) |
|
$ |
106.90 |
|
|
$ |
105.37 |
|
|
$ |
106.39 |
|
|
$ |
103.99 |
|
|
Cement
(per ton) |
|
$ |
106.31 |
|
|
$ |
101.04 |
|
|
$ |
104.44 |
|
|
$ |
100.51 |
|
|
Asphalt
(per ton) |
|
$ |
42.48 |
|
|
$ |
38.25 |
|
|
$ |
41.49 |
|
|
$ |
38.89 |
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Non-GAAP Financial Measures |
|
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
Gross margin as a percentage of net sales represents a
non-GAAP measure. The Company presents this ratio calculated
based on net sales, as it is consistent with the basis by which
management reviews the Company's operating results. Further,
management believes it is consistent with the basis by which
investors analyze the Company's operating results, given that
freight and delivery revenues and costs represent pass-throughs and
have no profit markup. Gross margin calculated as a
percentage of total revenues represents the most directly
comparable financial measure calculated in accordance with
generally accepted accounting principles ("GAAP"). The
following tables present the calculations of gross margin for the
three and six months ended June 30, 2017 and 2016, in accordance
with GAAP and reconciliations of the ratios as percentages of total
revenues to percentages of net sales: |
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Gross Margin in Accordance with Generally Accepted Accounting
Principles |
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Gross profit |
|
$ |
274.1 |
|
|
$ |
247.4 |
|
|
$ |
421.2 |
|
|
$ |
392.7 |
|
|
Total revenues |
|
$ |
1,063.5 |
|
|
$ |
977.3 |
|
|
$ |
1,907.4 |
|
|
$ |
1,766.0 |
|
|
Gross margin |
|
|
25.8 |
% |
|
|
25.3 |
% |
|
|
22.1 |
% |
|
|
22.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Gross Margin Excluding Freight and Delivery Revenues |
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Gross profit |
|
$ |
274.1 |
|
|
$ |
247.4 |
|
|
$ |
421.2 |
|
|
$ |
392.7 |
|
|
Total revenues |
|
$ |
1,063.5 |
|
|
$ |
977.3 |
|
|
$ |
1,907.4 |
|
|
$ |
1,766.0 |
|
|
Less: Freight and
delivery revenues |
|
|
(67.2 |
) |
|
|
(61.9 |
) |
|
|
(119.4 |
) |
|
|
(116.6 |
) |
|
Net sales |
|
$ |
996.3 |
|
|
$ |
915.4 |
|
|
$ |
1,788.0 |
|
|
$ |
1,649.4 |
|
|
Gross margin excluding
freight and delivery revenues |
|
|
27.5 |
% |
|
|
27.0 |
% |
|
|
23.6 |
% |
|
|
23.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
Materials Business Gross Margin in Accordance with Generally
Accepted Accounting Principles |
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Gross profit |
|
$ |
250.2 |
|
|
$ |
227.3 |
|
|
$ |
375.3 |
|
|
$ |
353.5 |
|
|
Total revenues |
|
$ |
993.5 |
|
|
$ |
913.7 |
|
|
$ |
1,768.8 |
|
|
$ |
1,638.2 |
|
|
Gross margin |
|
|
25.2 |
% |
|
|
24.9 |
% |
|
|
21.2 |
% |
|
|
21.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Building
Materials Business Gross Margin Excluding Freight and Delivery
Revenues |
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Gross profit |
|
$ |
250.2 |
|
|
$ |
227.3 |
|
|
$ |
375.3 |
|
|
$ |
353.5 |
|
|
Total revenues |
|
$ |
993.5 |
|
|
$ |
913.7 |
|
|
$ |
1,768.8 |
|
|
$ |
1,638.2 |
|
|
Less: Freight and
delivery revenues |
|
|
(61.8 |
) |
|
|
(57.1 |
) |
|
|
(108.6 |
) |
|
|
(107.2 |
) |
|
Net sales |
|
$ |
931.7 |
|
|
$ |
856.6 |
|
|
$ |
1,660.2 |
|
|
$ |
1,531.0 |
|
|
Gross margin excluding
freight and delivery revenues |
|
|
26.8 |
% |
|
|
26.5 |
% |
|
|
22.6 |
% |
|
|
23.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southeast Group
Gross Margin in Accordance with Generally Accepted Accounting
Principles |
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Gross profit |
|
$ |
18.9 |
|
|
$ |
15.6 |
|
|
$ |
33.2 |
|
|
$ |
25.9 |
|
|
Total revenues |
|
$ |
92.3 |
|
|
$ |
87.6 |
|
|
$ |
182.6 |
|
|
$ |
159.3 |
|
|
Gross margin |
|
|
20.5 |
% |
|
|
17.8 |
% |
|
|
18.2 |
% |
|
|
16.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Southeast Group
Gross Margin Excluding Freight and Delivery Revenues |
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Gross profit |
|
$ |
18.9 |
|
|
$ |
15.6 |
|
|
$ |
33.2 |
|
|
$ |
25.9 |
|
|
Total revenues |
|
$ |
92.3 |
|
|
$ |
87.6 |
|
|
$ |
182.6 |
|
|
$ |
159.3 |
|
|
Less: Freight and
delivery revenues |
|
|
(3.8 |
) |
|
|
(4.9 |
) |
|
|
(7.4 |
) |
|
|
(9.3 |
) |
|
Net sales |
|
$ |
88.5 |
|
|
$ |
82.7 |
|
|
$ |
175.2 |
|
|
$ |
150.0 |
|
|
Gross margin excluding
freight and delivery revenues |
|
|
21.3 |
% |
|
|
18.9 |
% |
|
|
19.0 |
% |
|
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Magnesia
Specialties Business Gross Margin in Accordance with Generally
Accepted Accounting Principles |
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Gross profit |
|
$ |
23.6 |
|
|
$ |
21.7 |
|
|
$ |
45.9 |
|
|
$ |
44.7 |
|
|
Total revenues |
|
$ |
70.0 |
|
|
$ |
63.6 |
|
|
$ |
138.6 |
|
|
$ |
127.8 |
|
|
Gross margin |
|
|
33.7 |
% |
|
|
34.1 |
% |
|
|
33.1 |
% |
|
|
35.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Magnesia
Specialties Business Product Line Gross Margin Excluding Freight
and Delivery Revenues |
|
Three Months
Ended |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Gross profit |
|
$ |
23.6 |
|
|
$ |
21.7 |
|
|
$ |
45.9 |
|
|
$ |
44.7 |
|
|
Total revenues |
|
$ |
70.0 |
|
|
$ |
63.6 |
|
|
$ |
138.6 |
|
|
$ |
127.8 |
|
|
Less: Freight and
delivery revenues |
|
|
(5.4 |
) |
|
|
(4.8 |
) |
|
|
(10.8 |
) |
|
|
(9.4 |
) |
|
Net sales |
|
$ |
64.6 |
|
|
$ |
58.8 |
|
|
$ |
127.8 |
|
|
$ |
118.4 |
|
|
Gross margin excluding
freight and delivery revenues |
|
|
36.6 |
% |
|
|
36.9 |
% |
|
|
35.9 |
% |
|
|
37.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
Non-GAAP Financial Measures
(continued) |
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
The ratio of Consolidated Debt-to-Consolidated EBITDA, as
defined, for the trailing-12 months is a covenant under the
Company's revolving credit facility and accounts receivable
securitization facility. Under the terms of these agreements,
as amended, the Company's ratio of Consolidated
Debt-to-Consolidated EBITDA as defined, for the trailing-12 months
cannot exceed 3.50 times as of June 30, 2017, with certain
exceptions related to qualifying acquisitions, as defined. |
|
|
|
|
|
|
|
|
|
|
|
|
|
The following presents the calculation of Consolidated
Debt-to-Consolidated EBITDA, as defined by the Company's Credit
Agreement, at June 30, 2017, for the trailing-12 months
EBITDA. For supporting calculations, refer to Company's website at
www.martinmarietta.com. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve-Month Period |
|
|
|
|
|
|
|
|
July 1, 2016
to |
|
|
|
|
|
|
|
|
June 30, 2017 |
|
|
|
|
|
|
Earnings from
continuing operations attributable to Martin Marietta Materials,
Inc. |
|
$ |
443.0 |
|
|
|
|
|
|
|
Add back: |
|
|
|
|
|
|
|
|
Interest
expense |
|
|
86.2 |
|
|
|
|
|
|
|
Income
tax expense |
|
|
175.0 |
|
|
|
|
|
|
|
Depreciation, depletion and amortization expense |
|
|
288.2 |
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
25.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deduct: |
|
|
|
|
|
|
|
|
Interest
income |
|
|
(0.3 |
) |
|
|
|
|
|
|
Nonrecurring gains on divestitures, net |
|
|
(5.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated EBITDA, as
defined by the Company's Credit Agreement |
|
$ |
1,011.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net Debt,
as defined and including debt for which the Company is a
co-borrower, at June 30, 2017 |
|
$ |
1,800.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Debt-to-Consolidated EBITDA, as defined by the Company's Credit
Agreement, |
|
|
|
|
|
|
|
|
at
June 30, 2017, for the trailing-12 months EBITDA |
|
1.78 times |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA is a widely accepted financial indicator of a company's
ability to service and/or incur indebtedness. EBITDA is not
defined by generally accepted accounting principles and, as such,
should not be construed as an alternative to net earnings or
operating cash flow. For further information on EBITDA, refer
to the Company's website at www.martinmarietta.com. EBITDA is
as follows for the three and six months ended June 30, 2017 and
2016. |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Consolidated Earnings
Before Interest, Income Taxes, Depreciation, Depletion and
Amortization (EBITDA) |
|
$ |
292.3 |
|
|
$ |
266.5 |
|
|
$ |
440.0 |
|
|
$ |
419.1 |
|
|
|
|
|
|
|
|
|
|
A
Reconciliation of Net Earnings Attributable to Martin Marietta
Materials, Inc. to Consolidated EBITDA is as follows: |
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Net Earnings
Attributable to Martin Marietta Materials, Inc. |
|
$ |
142.3 |
|
|
$ |
122.1 |
|
|
$ |
184.6 |
|
|
$ |
167.0 |
|
Add back: |
|
|
|
|
|
|
|
|
Interest Expense |
|
|
24.0 |
|
|
|
20.3 |
|
|
|
44.9 |
|
|
|
40.3 |
|
Taxes on
Income |
|
|
52.0 |
|
|
|
53.4 |
|
|
|
66.5 |
|
|
|
73.1 |
|
Depreciation,
Depletion and Amortization Expense |
|
|
74.0 |
|
|
|
70.7 |
|
|
|
144.0 |
|
|
|
138.7 |
|
Consolidated
EBITDA |
|
$ |
292.3 |
|
|
$ |
266.5 |
|
|
$ |
440.0 |
|
|
$ |
419.1 |
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
996.3 |
|
|
$ |
915.4 |
|
|
$ |
1,788.0 |
|
|
$ |
1,649.4 |
|
|
|
|
|
|
|
|
|
|
EBITDA margin as
percentage of net sales |
|
|
29.3 |
% |
|
|
29.1 |
% |
|
|
24.6 |
% |
|
|
25.4 |
% |
|
|
|
|
|
|
|
|
|
Investor Contact:
Elisabeth L. Eisleben
Director, Investor Relations
(919) 510-4776
Elisabeth.Eisleben@martinmarietta.com
Martin Marietta Materials (NYSE:MLM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Martin Marietta Materials (NYSE:MLM)
Historical Stock Chart
From Apr 2023 to Apr 2024