BIRMINGHAM, Ala., Feb. 16, 2021 /PRNewswire/ -- Vulcan
Materials Company (NYSE: VMC), the nation's largest producer of
construction aggregates, today announced results for the quarter
ended December 31, 2020.
Tom Hill, Chairman and Chief
Executive Officer, said, "Our best-in-class aggregates business,
along with the efforts and dedication of our employees, allowed us
to overcome COVID-19 related disruptions in 2020. Most
impressive, we delivered year-over-year gains in aggregates unit
profitability throughout each quarter in 2020. Our ability to
leverage Vulcan's four strategic disciplines enabled us to expand
unit margins, deliver improved cash flows, and increase returns on
invested capital. Our team's hard work along with Vulcan's
leading market positions and strong financial footing will enable
us to capitalize on an improving demand outlook in 2021."
Net earnings were $115 million in
the fourth quarter, and Adjusted EBITDA was $311 million. Fourth quarter Adjusted
EBITDA increased 4 percent despite a 1 percent decline in total
revenues. Effective cost management throughout the
organization and aggregates price growth helped drive margin
expansion.
Full year revenues were $4.86
billion, 1 percent lower than the prior year, while gross
profit margins expanded across each segment driving an improvement
of 150 basis points in the Company's EBITDA margin. Net
earnings were $584 million, and
Adjusted EBITDA was a record $1.324
billion.
Mr. Hill continued, "Construction employment gains in key
markets are a positive signal that activity levels are recovering
across our footprint, as compelling fundamentals in residential
construction support growing demand in 2021. Shipments into
private nonresidential continue to benefit from growth in heavy
industrial projects such as data centers and warehouses, while
construction starts in other categories remain below the prior
year. Recent improvements in highway lettings and contract
awards indicate growing confidence and visibility fueling
advancement of planned projects, particularly in the second half of
2021. The pricing environment remains positive, and we
continue to execute at a high level, positioning us well for
2021. We expect our 2021 Adjusted EBITDA will range between
$1.340 billion to $1.440 billion."
Highlights as of December 31, 2020
include:
|
Fourth
Quarter
|
|
Full
Year
|
Amounts in millions,
except per unit data
|
2020
|
2019
|
|
2020
|
2019
|
Total
revenues
|
$ 1,175.1
|
$ 1,186.2
|
|
$ 4,856.8
|
$ 4,929.1
|
Gross
profit
|
$
302.7
|
$
293.1
|
|
$ 1,281.5
|
$ 1,255.9
|
Aggregates
segment
|
|
|
|
|
|
Segment
sales
|
$
956.5
|
$
960.2
|
|
$ 3,944.3
|
$ 3,990.3
|
Freight-adjusted
revenues
|
$
737.3
|
$
720.6
|
|
$ 3,007.6
|
$ 3,014.2
|
Gross
profit
|
$
276.0
|
$
274.5
|
|
$ 1,159.2
|
$ 1,146.6
|
Shipments
(tons)
|
51.1
|
51.6
|
|
208.3
|
215.5
|
Freight-adjusted
sales price per ton
|
$
14.42
|
$
13.96
|
|
$
14.44
|
$
13.99
|
Gross profit per
ton
|
$
5.40
|
$
5.32
|
|
$
5.57
|
$
5.32
|
Asphalt, Concrete
& Calcium segment gross profit
|
$
26.7
|
$
18.6
|
|
$
122.3
|
$
109.3
|
Selling,
Administrative and General (SAG)
|
$
98.6
|
$
95.8
|
|
$
359.8
|
$
370.5
|
SAG as % of Total
revenues
|
8.4%
|
8.1%
|
|
7.4%
|
7.5%
|
Earnings from
continuing operations before income taxes
|
$
141.2
|
$
166.0
|
|
$
743.8
|
$
757.7
|
Net
earnings
|
$
114.5
|
$
141.1
|
|
$
584.5
|
$
617.7
|
Adjusted
EBIT
|
$
210.3
|
$
202.8
|
|
$
926.7
|
$
895.4
|
Adjusted
EBITDA
|
$
311.2
|
$
298.5
|
|
$ 1,323.5
|
$ 1,270.0
|
Earnings from
continuing operations per diluted share
|
$
0.87
|
$
1.07
|
|
$
4.41
|
$
4.67
|
Adjusted earnings
from continuing operations per diluted share
|
$
1.07
|
$
1.08
|
|
$
4.68
|
$
4.70
|
Reported earnings from continuing operations for the year were
$588 million, or $4.41 per diluted share. Comparing adjusted
earnings from continuing operations of $4.68 per diluted share in 2020 to $4.70 per diluted share in 2019, the prior year
benefited from a lower tax rate due to certain tax benefits and
credits that were higher than in 2020. The effect of the
resulting higher tax rate in 2020 was $0.18 per diluted share.
Segment Results
Aggregates
Fourth quarter gross profit increased to $276 million due to growth in pricing and
effective cost control, despite a 1 percent decline in
shipments. Gains in unit profitability were widespread and
marked the fourth consecutive quarter of growth in gross profit per
ton. For the full year, gross profit per ton increased 5
percent, despite 3 percent lower volumes. This growth marks
the tenth consecutive quarter of year-over-year improvement in the
Company's trailing-twelve-month unit profitability.
The pricing environment continues to be positive across the
Company's footprint. On a mix-adjusted basis, all of the
Company's markets reported full year price growth. For the
year, mix-adjusted pricing increased 3.1 percent (reported
freight-adjusted sales price increased 3.2 percent) despite a 3
percent decline in shipments. For the quarter, mix-adjusted
sales price increased 1.8 percent, and reported freight-adjusted
pricing increased 3.3 percent.
Fourth quarter operating efficiencies and lower diesel fuel
costs helped to mitigate increased spending to remove overburden
ahead of future shipments and the timing of repair costs. The
Aggregates segment earnings impact from lower diesel fuel cost was
$8 million in the quarter. For
the full year, freight-adjusted unit cost of sales increased 2
percent and 1 percent on a cash basis. Flexible operating
plans, disciplined cost control, and lower diesel fuel costs
mitigated the impact of operational disruptions caused by the
pandemic during the year.
Asphalt, Concrete and Calcium
Fourth quarter gross profit increased sharply in each
segment. Asphalt segment gross profit increased 53 percent to
$17 million in the fourth
quarter. The year-over-year improvement was driven by higher
material margins (sales price less unit cost of raw
materials). Segment earnings benefited from price discipline
and effective cost containment, including lower liquid asphalt
costs. Shipments in the current year's quarter were lower
than the prior year, as prior year shipments included certain large
projects in the Arizona and
Tennessee markets.
Fourth quarter concrete segment gross profit increased 28
percent to $9 million as a result of
higher material margins. Shipments decreased 12 percent
versus the prior year, and average selling prices increased 2
percent compared to the prior year. Fourth quarter shipments
were impacted by the lingering effects of cement supply shortages
in Northern California.
Calcium segment gross profit was $1.2
million versus $0.8 million in
the prior year quarter.
Full year segment earnings increased 12 percent collectively,
driven by strong year-over-year improvement in asphalt. Each
segment reported year-over-year margin expansion on lower
revenues.
Selling, Administrative and General (SAG) and Other
Nonoperating Expense
SAG expense was $99 million in the
quarter and $360 million for the full
year. As a percentage of total revenues, SAG expense was 7.4
percent in 2020. The Company remains focused on further
leveraging its overhead cost structure.
Other nonoperating expense was $21
million, compared to income of $3
million in the prior year quarter. This year-over-year
change resulted from a non-cash pension settlement charge of
$23 million, or $0.13 per diluted share, recorded in the fourth
quarter in connection with a voluntary lump sum distribution of
benefits to certain fully vested plan participants. This
action will benefit future expense and funding requirements.
Financial Position, Liquidity and Capital Allocation
Capital expenditures in the fourth quarter were $132 million and $361
million for the full year, most of which was directed toward
core operating and maintenance projects. During the fourth
quarter, the Company restarted planned growth projects that were
put on hold in March 2020 as a result
of the pandemic. In 2021, the Company expects to spend
between $450 and $475 million on capital expenditures, including
growth projects. The Company will continue to review its
plans and will adjust as needed, while being thoughtful about
preserving liquidity.
In 2020, the Company returned $180
million to shareholders through dividends, a 10 percent
increase versus the prior year. For the year, the Company
repurchased $26 million in common
stock.
At year end, total debt to trailing-twelve month Adjusted EBITDA
was 2.5 times or 1.6 times on a net debt basis reflecting
$1.2 billion of cash on hand.
Approximately $500 million will be
used to pay off certain debt maturities due in March 2021.
The Company's weighted-average debt maturity was 13 years, and the
effective weighted-average interest rate was 4.1 percent.
Return on invested capital increased 40 basis points from the
prior year to 14.3 percent. Operating cash flows were
$1.1 billion, up 9 percent versus the
previous year. Solid operating earnings growth coupled with
disciplined capital management led to these results.
Outlook
Regarding the Company's outlook, Mr. Hill stated, "We are
encouraged by the continued strength in residential construction
activity, particularly single-family housing. Our expectation
is also supported by the recent improvement in highway awards and
construction employment trends in key markets. Data centers,
distribution centers, and warehouses, which now comprise the
largest share of new private nonresidential project awards, will
continue to underpin demand in this end market. We believe
these leading indicators, along with sustaining a positive pricing
environment, can be a catalyst for further recovery in construction
activity during 2021."
Management expectations for 2021 include:
- Aggregates shipments down 2 percent to up 2 percent versus
2020
- Year-over-year aggregates freight-adjusted price increase of 2
to 4 percent
- Asphalt, Concrete and Calcium gross profit up mid-to-high
single digits
- SAG expenses of $365 to
$375 million
- Interest expense of approximately $130
million
- Depreciation, depletion, accretion and amortization expense of
approximately $400 million
- An effective tax rate of approximately 21 percent
- Earnings from continuing operations of $4.80 to $5.40 per
diluted share
- Adjusted EBITDA of $1.340 to
$1.440 billion
- No major changes in COVID shelter-in-place restrictions
Mr. Hill concluded, "As we saw in 2020, demand for our products
can be subject to market fluctuations outside of our control.
That said, we remained focused on the factors within our control,
including our pricing and cost actions, both of which contributed
to further improvement in our industry-leading unit margins in
2020. We will carry that determination through 2021 and
beyond. Our operating plans are underpinned by our four
strategic disciplines (Commercial and Operational Excellence,
Logistics Innovation and Strategic Sourcing), a healthy balance
sheet, strong liquidity, and the engagement of our people."
Conference Call
Vulcan will host a conference call at 10:00 a.m. CT on February
16, 2021. 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 10 minutes before the scheduled start. The
conference ID is 5378297. The conference call will be
recorded and available for replay at the Company's website
approximately two hours after the call.
About Vulcan Materials Company
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 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
|
|
Twelve Months
Ended
|
Consolidated
Statements of Earnings
|
|
|
December
31
|
|
|
December
31
|
(Condensed and
unaudited)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$1,175,120
|
|
$1,186,152
|
|
$4,856,826
|
|
$4,929,103
|
Cost of
revenues
|
|
872,379
|
|
893,071
|
|
3,575,345
|
|
3,673,202
|
Gross
profit
|
|
302,741
|
|
293,081
|
|
1,281,481
|
|
1,255,901
|
Selling,
administrative and general expenses
|
|
98,627
|
|
95,801
|
|
359,772
|
|
370,548
|
Gain on sale of
property, plant & equipment
|
|
|
|
|
|
|
|
|
and
businesses
|
|
1,681
|
|
12,770
|
|
3,997
|
|
23,752
|
Other operating
expense, net
|
|
(9,366)
|
|
(16,474)
|
|
(29,975)
|
|
(31,647)
|
Operating
earnings
|
|
196,429
|
|
193,576
|
|
895,731
|
|
877,458
|
Other nonoperating
income (expense), net
|
|
(21,357)
|
|
3,289
|
|
(17,540)
|
|
9,243
|
Interest expense,
net
|
|
33,884
|
|
30,835
|
|
134,393
|
|
129,000
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
before income
taxes
|
|
141,188
|
|
166,030
|
|
743,798
|
|
757,701
|
Income tax
expense
|
|
25,273
|
|
23,434
|
|
155,803
|
|
135,198
|
Earnings from
continuing operations
|
|
115,915
|
|
142,596
|
|
587,995
|
|
622,503
|
Loss on discontinued
operations, net of tax
|
|
(1,397)
|
|
(1,504)
|
|
(3,515)
|
|
(4,841)
|
Net
earnings
|
|
$114,518
|
|
$141,092
|
|
$584,480
|
|
$617,662
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$0.87
|
|
$1.08
|
|
$4.44
|
|
$4.71
|
Discontinued
operations
|
|
($0.01)
|
|
($0.01)
|
|
($0.03)
|
|
($0.04)
|
Net
earnings
|
|
$0.86
|
|
$1.07
|
|
$4.41
|
|
$4.67
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$0.87
|
|
$1.07
|
|
$4.41
|
|
$4.67
|
Discontinued
operations
|
|
($0.01)
|
|
($0.01)
|
|
($0.02)
|
|
($0.04)
|
Net
earnings
|
|
$0.86
|
|
$1.06
|
|
$4.39
|
|
$4.63
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
132,619
|
|
132,467
|
|
132,578
|
|
132,300
|
Assuming
dilution
|
|
133,367
|
|
133,467
|
|
133,245
|
|
133,385
|
Depreciation,
depletion, accretion and amortization
|
|
$100,894
|
|
$95,671
|
|
$396,806
|
|
$374,596
|
Effective tax rate
from continuing operations
|
|
17.9%
|
|
14.1%
|
|
20.9%
|
|
17.8%
|
|
|
|
|
|
|
|
Table B
|
Vulcan Materials
Company
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Consolidated
Balance Sheets
|
|
December
31
|
|
|
December
31
|
(Condensed and
unaudited)
|
|
2020
|
|
|
2019
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$1,197,068
|
|
|
$271,589
|
Restricted
cash
|
|
945
|
|
|
2,917
|
Accounts and notes
receivable
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
558,848
|
|
|
573,241
|
Allowance for
doubtful accounts
|
|
(2,551)
|
|
|
(3,125)
|
Accounts and notes
receivable, net
|
|
556,297
|
|
|
570,116
|
Inventories
|
|
|
|
|
|
Finished
products
|
|
378,389
|
|
|
391,666
|
Raw
materials
|
|
33,780
|
|
|
31,318
|
Products in
process
|
|
4,555
|
|
|
5,604
|
Operating supplies
and other
|
|
31,861
|
|
|
29,720
|
Inventories
|
|
448,585
|
|
|
458,308
|
Other current
assets
|
|
74,270
|
|
|
76,396
|
Total current
assets
|
|
2,277,165
|
|
|
1,379,326
|
Investments and
long-term receivables
|
|
34,301
|
|
|
60,709
|
Property, plant &
equipment
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
9,102,086
|
|
|
8,749,217
|
Allowances for
depreciation, depletion & amortization
|
|
(4,676,087)
|
|
|
(4,433,179)
|
Property, plant &
equipment, net
|
|
4,425,999
|
|
|
4,316,038
|
Operating lease
right-of-use assets, net
|
|
423,128
|
|
|
408,189
|
Goodwill
|
|
3,172,112
|
|
|
3,167,061
|
Other intangible
assets, net
|
|
1,123,544
|
|
|
1,091,475
|
Other noncurrent
assets
|
|
230,656
|
|
|
225,995
|
Total
assets
|
|
$11,686,905
|
|
|
$10,648,793
|
Liabilities
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
515,435
|
|
|
25
|
Trade payables and
accruals
|
|
273,080
|
|
|
265,159
|
Other current
liabilities
|
|
259,368
|
|
|
270,379
|
Total current
liabilities
|
|
1,047,883
|
|
|
535,563
|
Long-term
debt
|
|
2,772,240
|
|
|
2,784,315
|
Deferred income
taxes, net
|
|
706,050
|
|
|
633,039
|
Deferred
revenue
|
|
174,045
|
|
|
179,880
|
Operating lease
liabilities
|
|
399,582
|
|
|
388,042
|
Other noncurrent
liabilities
|
|
559,775
|
|
|
506,097
|
Total
liabilities
|
|
$5,659,575
|
|
|
$5,026,936
|
Equity
|
|
|
|
|
|
Common stock, $1 par
value
|
|
132,516
|
|
|
132,371
|
Capital in excess of
par value
|
|
2,802,012
|
|
|
2,791,353
|
Retained
earnings
|
|
3,274,107
|
|
|
2,895,871
|
Accumulated other
comprehensive loss
|
|
(181,305)
|
|
|
(197,738)
|
Total
equity
|
|
$6,027,330
|
|
|
$5,621,857
|
Total liabilities and
equity
|
|
$11,686,905
|
|
|
$10,648,793
|
|
|
|
|
|
|
|
Table C
|
Vulcan Materials
Company
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Twelve Months
Ended
|
Consolidated
Statements of Cash Flows
|
|
|
December
31
|
(Condensed and
unaudited)
|
|
2020
|
|
2019
|
Operating
Activities
|
|
|
|
|
Net
earnings
|
|
|
|
|
$584,480
|
|
$617,662
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
396,806
|
|
374,596
|
Noncash operating
lease expense
|
|
38,272
|
|
35,344
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(3,997)
|
|
(23,752)
|
Contributions to
pension plans
|
|
(8,819)
|
|
(8,882)
|
Share-based
compensation expense
|
|
32,991
|
|
31,843
|
Deferred tax
expense
|
|
62,018
|
|
76,011
|
Changes in assets and
liabilities before initial
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(39,710)
|
|
(147,218)
|
Other, net
|
|
|
|
|
8,318
|
|
28,518
|
Net cash provided by
operating activities
|
|
$1,070,359
|
|
$984,122
|
Investing
Activities
|
|
|
|
|
Purchases of
property, plant & equipment
|
|
(362,194)
|
|
(384,094)
|
Proceeds from sale of
property, plant & equipment
|
|
11,461
|
|
22,661
|
Proceeds from sale of
businesses
|
|
968
|
|
1,744
|
Payment for
businesses acquired, net of acquired cash
|
|
(43,223)
|
|
(44,151)
|
Other, net
|
|
|
|
|
11,474
|
|
(11,997)
|
Net cash used for
investing activities
|
|
($381,514)
|
|
($415,837)
|
Financing
Activities
|
|
|
|
|
Proceeds from
short-term debt
|
|
0
|
|
366,900
|
Payment of short-term
debt
|
|
0
|
|
(499,900)
|
Payment of current
maturities and long-term debt
|
|
(250,025)
|
|
(23)
|
Proceeds from
issuance of long-term debt
|
|
750,000
|
|
0
|
Debt issuance and
exchange costs
|
|
(15,394)
|
|
0
|
Settlements of
interest rate derivatives
|
|
(19,863)
|
|
0
|
Purchases of common
stock
|
|
(26,132)
|
|
(2,602)
|
Dividends
paid
|
|
|
|
(180,216)
|
|
(163,973)
|
Share-based
compensation, shares withheld for taxes
|
|
(22,144)
|
|
(38,522)
|
Other, net
|
|
|
|
|
(1,564)
|
|
(63)
|
Net cash provided by
(used for) financing activities
|
|
$234,662
|
|
($338,183)
|
Net increase in cash
and cash equivalents and restricted cash
|
|
923,507
|
|
230,102
|
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 year
|
|
$1,198,013
|
|
$274,506
|
|
|
|
|
|
|
|
|
|
|
|
Table D
|
Segment Financial
Data and Unit Shipments
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
per unit data)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
December
31
|
|
|
December
31
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Total
Revenues
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
$956,502
|
|
$960,164
|
|
$3,944,286
|
|
$3,990,275
|
Asphalt
2
|
|
194,665
|
|
206,331
|
|
792,605
|
|
855,821
|
Concrete
|
|
85,362
|
|
95,258
|
|
383,617
|
|
395,627
|
Calcium
|
|
|
2,451
|
|
2,118
|
|
7,720
|
|
8,191
|
Segment
sales
|
|
$1,238,980
|
|
$1,263,871
|
|
$5,128,228
|
|
$5,249,914
|
Aggregates
intersegment sales
|
|
(63,860)
|
|
(77,719)
|
|
(271,402)
|
|
(320,811)
|
Total
revenues
|
|
$1,175,120
|
|
$1,186,152
|
|
$4,856,826
|
|
$4,929,103
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$275,994
|
|
$274,516
|
|
$1,159,178
|
|
$1,146,649
|
Asphalt
|
|
|
16,987
|
|
11,073
|
|
75,233
|
|
63,023
|
Concrete
|
|
8,562
|
|
6,664
|
|
44,159
|
|
43,151
|
Calcium
|
|
|
|
|
1,198
|
|
828
|
|
2,911
|
|
3,078
|
Total
|
|
|
|
$302,741
|
|
$293,081
|
|
$1,281,481
|
|
$1,255,901
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
|
Aggregates
|
|
$80,757
|
|
$77,787
|
|
$321,127
|
|
$305,046
|
Asphalt
|
|
|
8,910
|
|
8,856
|
|
34,956
|
|
35,199
|
Concrete
|
|
3,940
|
|
3,958
|
|
16,010
|
|
13,620
|
Calcium
|
|
|
43
|
|
55
|
|
189
|
|
232
|
Other
|
|
|
|
7,244
|
|
5,015
|
|
24,524
|
|
20,499
|
Total
|
|
|
|
$100,894
|
|
$95,671
|
|
$396,806
|
|
$374,596
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
$737,313
|
|
$720,584
|
|
$3,007,634
|
|
$3,014,157
|
Aggregates -
tons
|
|
51,132
|
|
51,620
|
|
208,295
|
|
215,465
|
Freight-adjusted
sales price 4
|
|
$14.42
|
|
$13.96
|
|
$14.44
|
|
$13.99
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
Asphalt Mix -
tons
|
|
2,882
|
|
3,041
|
|
11,835
|
|
12,665
|
Asphalt Mix - sales
price
|
|
$57.70
|
|
$57.87
|
|
$57.97
|
|
$57.79
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete
- cubic yards
|
|
656
|
|
744
|
|
2,951
|
|
3,104
|
Ready-mixed concrete
- sales price
|
|
$128.93
|
|
$126.97
|
|
$128.93
|
|
$126.38
|
|
|
|
|
|
|
|
|
|
|
|
|
Calcium -
tons
|
|
88
|
|
78
|
|
282
|
|
294
|
Calcium - sales
price
|
|
$27.64
|
|
$27.30
|
|
$27.32
|
|
$27.85
|
1
|
Includes 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.
|
2
|
Includes product
sales, as well as service revenues from our asphalt construction
paving business.
|
3
|
Freight-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.
|
4
|
Freight-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
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
December
31
|
|
|
December
31
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Segment
sales
|
|
$956,502
|
|
$960,164
|
|
$3,944,286
|
|
$3,990,275
|
Less:
|
|
Freight &
delivery revenues 1
|
|
205,034
|
|
225,139
|
|
877,003
|
|
921,064
|
|
|
|
Other
revenues
|
|
14,155
|
|
14,441
|
|
59,649
|
|
55,054
|
Freight-adjusted
revenues
|
|
$737,313
|
|
$720,584
|
|
$3,007,634
|
|
$3,014,157
|
Unit shipment -
tons
|
|
51,132
|
|
51,620
|
|
208,295
|
|
215,465
|
Freight-adjusted
sales price
|
|
$14.42
|
|
$13.96
|
|
$14.44
|
|
$13.99
|
|
|
1
|
At 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 metric to
its nearest GAAP measure is presented below:
|
|
Aggregates Segment
Incremental Gross Profit Margin in Accordance with
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
December
31
|
|
|
December
31
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$275,994
|
|
$274,516
|
|
$1,159,178
|
|
$1,146,649
|
Segment
sales
|
|
$956,502
|
|
$960,164
|
|
$3,944,286
|
|
$3,990,275
|
Gross profit
margin
|
|
28.9%
|
|
28.6%
|
|
29.4%
|
|
28.7%
|
Incremental gross
profit margin
|
|
N/A
|
|
|
|
N/A
|
|
|
Aggregates Segment
Incremental Gross Profit Flow-through Rate
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
December
31
|
|
|
|
December
31
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$275,994
|
|
$274,516
|
|
$1,159,178
|
|
$1,146,649
|
Segment
sales
|
|
$956,502
|
|
$960,164
|
|
$3,944,286
|
|
$3,990,275
|
Less:
|
|
Freight &
delivery revenues 1
|
|
205,034
|
|
225,139
|
|
877,003
|
|
921,064
|
|
Segment sales
excluding freight & delivery
|
|
$751,468
|
|
$735,025
|
|
$3,067,283
|
|
$3,069,211
|
Gross profit margin
excluding freight & delivery
|
|
36.7%
|
|
37.3%
|
|
37.8%
|
|
37.4%
|
Incremental gross
profit flow-through rate
|
|
9.0%
|
|
|
|
N/A
|
|
|
1
|
At 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
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
December
31
|
|
|
|
December
31
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$275,994
|
|
$274,516
|
|
$1,159,178
|
|
$1,146,649
|
Depreciation,
depletion, accretion and amortization
|
|
80,757
|
|
77,787
|
|
321,127
|
|
305,046
|
|
Aggregates segment
cash gross profit
|
|
$356,751
|
|
$352,303
|
|
$1,480,305
|
|
$1,451,695
|
Unit shipments -
tons
|
|
51,132
|
|
51,620
|
|
208,295
|
|
215,465
|
Aggregates segment
cash gross profit per ton
|
|
$6.98
|
|
$6.82
|
|
$7.11
|
|
$6.74
|
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
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
December
31
|
|
|
|
December
31
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
earnings
|
|
$114,518
|
|
$141,092
|
|
$584,480
|
|
$617,662
|
Income tax
expense
|
|
25,273
|
|
23,434
|
|
155,803
|
|
135,198
|
Interest expense,
net
|
|
33,884
|
|
30,835
|
|
134,393
|
|
129,000
|
Loss on discontinued
operations, net of tax
|
|
1,397
|
|
1,504
|
|
3,515
|
|
4,841
|
EBIT
|
|
|
|
$175,072
|
|
$196,865
|
|
$878,191
|
|
$886,701
|
Depreciation,
depletion, accretion and amortization
|
|
100,894
|
|
95,671
|
|
396,806
|
|
374,596
|
EBITDA
|
|
|
$275,966
|
|
$292,536
|
|
$1,274,997
|
|
$1,261,297
|
|
Gain on sale of
businesses
|
|
0
|
|
(9,289)
|
|
0
|
|
(13,353)
|
|
Property
donation
|
|
0
|
|
10,847
|
|
0
|
|
10,847
|
|
Charges associated
with divested operations
|
|
269
|
|
3,033
|
|
6,935
|
|
3,033
|
|
Business development
1
|
|
9,447
|
|
1,345
|
|
7,334
|
|
1,748
|
|
COVID-19 direct
incremental costs
|
|
2,781
|
|
0
|
|
10,170
|
|
0
|
|
Pension settlement
charge
|
|
22,740
|
|
0
|
|
22,740
|
|
0
|
|
Restructuring
charges
|
|
0
|
|
0
|
|
1,333
|
|
6,457
|
Adjusted
EBITDA
|
|
$311,203
|
|
$298,472
|
|
$1,323,509
|
|
$1,270,029
|
|
Depreciation,
depletion, accretion and amortization
|
|
(100,894)
|
|
(95,671)
|
|
(396,806)
|
|
(374,596)
|
Adjusted
EBIT
|
|
$210,309
|
|
$202,801
|
|
$926,703
|
|
$895,433
|
Adjusted EBITDA
margin
|
|
26.5%
|
|
25.2%
|
|
27.3%
|
|
25.8%
|
1
|
Represents
non-routine charges or gains associated with acquisitions including
the cost impact of purchase accounting inventory
valuations.
|
Similar to our
presentation of Adjusted EBITDA, we present Adjusted Diluted
earnings per share (EPS) from
continuing operations to provide a more consistent comparison of
earnings performance from period to period.
This metric is not defined by GAAP and should not be considered as
an alternative to earnings measures
defined by GAAP. Reconciliation of this metric to its nearest GAAP
measure is presented below:
|
|
Adjusted Diluted
EPS from Continuing Operations (Adjusted Diluted
EPS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
December
31
|
|
|
|
December
31
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Diluted EPS from
continuing operations
|
|
$0.87
|
|
$1.07
|
|
$4.41
|
|
$4.67
|
|
Items included in
Adjusted EBITDA above
|
|
0.20
|
|
0.01
|
|
0.27
|
|
0.03
|
Adjusted Diluted
EPS
|
|
$1.07
|
|
$1.08
|
|
$4.68
|
|
$4.70
|
Net debt to Adjusted
EBITDA is not a GAAP measure and should not be considered as an
alternative to metrics
defined by GAAP. We, the investment community and credit rating
agencies use this metric to assess our leverage.
Net debt subtracts cash and cash equivalents and restricted cash
from total debt. Reconciliation to its nearest GAAP
measure is presented below:
|
|
Net Debt to
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
December
31
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Debt
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
|
|
|
|
$515,435
|
|
$25
|
Long-term
debt
|
|
|
|
|
|
2,772,240
|
|
2,784,315
|
Total debt
|
|
|
|
|
|
$3,287,675
|
|
$2,784,340
|
Less: Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
1,198,013
|
|
274,506
|
Net debt
|
|
|
|
|
|
|
$2,089,662
|
|
$2,509,834
|
Adjusted
EBITDA
|
|
|
|
|
|
$1,323,509
|
|
$1,270,029
|
Total debt to
Adjusted EBITDA
|
|
|
|
|
|
2.5x
|
|
2.2x
|
Net debt to Adjusted
EBITDA
|
|
|
|
|
|
1.6x
|
|
2.0x
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
TTM
|
|
|
|
|
|
|
|
|
|
|
|
December
31
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Adjusted
EBITDA
|
|
|
|
|
|
$1,323,509
|
|
$1,270,029
|
Average invested
capital 1
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment
|
|
|
|
|
|
$4,373,987
|
|
$4,281,342
|
|
Goodwill
|
|
|
|
|
|
3,170,092
|
|
3,165,685
|
|
Other intangible
assets
|
|
|
|
|
|
1,104,044
|
|
1,084,113
|
|
Fixed and intangible
assets
|
|
|
|
|
|
$8,648,123
|
|
$8,531,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
$1,845,743
|
|
$1,224,316
|
|
Less: Cash and cash
equivalents
|
|
|
|
|
|
698,944
|
|
93,528
|
|
Less: Current
tax
|
|
|
|
|
|
18,545
|
|
12,633
|
|
Adjusted current
assets
|
|
|
|
|
|
1,128,254
|
|
1,118,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
833,553
|
|
599,319
|
|
Less: Current
maturities of long-term debt
|
|
|
|
|
|
304,989
|
|
24
|
|
Less: Short-term
debt
|
|
|
|
|
|
0
|
|
89,700
|
|
Adjusted current
liabilities
|
|
|
|
|
|
528,564
|
|
509,595
|
|
Adjusted net working
capital
|
|
|
|
|
|
$599,690
|
|
$608,560
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested
capital
|
|
|
|
|
|
$9,247,813
|
|
$9,139,700
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on invested
capital
|
|
|
|
|
|
14.3%
|
|
13.9%
|
1
|
Average invested
capital is based on a trailing 5-quarters.
|
The following
reconciliation to the mid-point of the range of 2021 Projected
EBITDA excludes adjustments (as noted
in Adjusted EBITDA above) as they are difficult to forecast (timing
or amount). Due to the difficulty in forecasting
such adjustments, we are unable to estimate their significance.
This metric is not defined by GAAP and should not
be considered as an alternative to earnings measures defined by
GAAP. Reconciliation of this metric to its nearest
GAAP measure is presented below:
|
|
2021 Projected
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Mid-point
|
Net
earnings
|
|
|
|
|
|
|
|
$680
|
Income tax
expense
|
|
|
|
|
|
|
|
180
|
Interest expense,
net
|
|
|
|
|
|
|
|
130
|
Discontinued
operations, net of tax
|
|
|
|
|
|
|
|
0
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
|
|
400
|
Projected
EBITDA
|
|
|
|
|
|
|
|
$1,390
|
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SOURCE Vulcan Materials Company