Martin Marietta Materials, Inc. (NYSE: MLM) (“Martin Marietta” or
the “Company”), a leading national supplier of aggregates and heavy
building materials, today reported results for the first quarter
ended March 31, 2023.
First-Quarter
Highlights(Financial highlights are for continuing
operations)
|
|
Quarter Ended March 31, |
(In
millions, except per share) |
|
2023 |
|
|
2022 |
|
|
% Change |
Total revenues 1 |
|
$ |
1,354.1 |
|
|
$ |
1,230.8 |
|
|
10.0% |
Gross profit |
|
$ |
302.8 |
|
|
$ |
156.1 |
|
|
94.0% |
Earnings from operations |
|
$ |
196.1 |
|
|
$ |
59.9 |
|
|
227.4% |
Net earnings from continuing
operations attributable to Martin Marietta |
|
$ |
134.3 |
|
|
$ |
24.5 |
|
|
448.2% |
Adjusted EBITDA 2 |
|
$ |
323.9 |
|
|
$ |
197.2 |
|
|
64.2% |
Earnings per diluted share
from continuing operations |
|
$ |
2.16 |
|
|
$ |
0.39 |
|
|
453.8% |
1 |
Total revenues include the sales of products and services to
customers (net of any discounts or allowances) and freight
revenues. |
2 |
Earnings
from continuing operations before interest, income taxes,
depreciation, depletion and amortization expense, the earnings/loss
from nonconsolidated equity affiliates and acquisition and
integration expenses, or Adjusted EBITDA is a non-GAAP financial
measure. See Appendix to this earnings release for a reconciliation
to net earnings from continuing operations attributable to Martin
Marietta. |
|
|
Ward Nye, Chairman and CEO of Martin Marietta,
stated, “Our year is off to a remarkable start with record
first-quarter results by nearly every measure including continued
world-class safety incidence rates. The cumulative effects of our
2022 and January 1, 2023 pricing actions drove robust margin
expansion despite continued inflationary pressure and modestly
lower aggregates shipments. Importantly, we achieved a quarterly
record for aggregates pricing growth and a 134 percent increase in
aggregates gross profit per ton, highlighting our team’s steadfast
execution of our value-over-volume commercial
strategy.
“We continue to see solid near-term product
demand reinforced by healthy customer backlogs across our
coast-to-coast footprint, led by infrastructure and heavy
nonresidential projects of scale. We expect recent legislation and
the resulting enhanced level of public investment in these kinds of
aggregates-intensive end-use projects to support continued strong
demand for several years to come. While single-family residential
construction has slowed, builder sentiment has improved in Martin
Marietta geographies as the single-family housing shortage
continues to drive a base level of demand in our key Sun Belt
markets. We also expect to see an uptick in residential activity as
mortgage rates stabilize over the next several months.
Mr. Nye concluded, “We are confident in our
ability to continue to expand margins throughout the year and
expect to deliver compelling full-year financial results more
directionally in line with the high end of our previously announced
2023 guidance range, which we will revisit at mid-year. Moreover,
Martin Marietta’s track record of success throughout various
business cycles proves the resiliency and durability of our
aggregates-led business model and our ability to successfully
navigate a wide array of macroeconomic environments to consistently
deliver superior value for shareholders.”
First-Quarter Financial and Operating
Results
(All financial and operating results are for
continuing operations and comparisons are versus the prior-year
first quarter, unless otherwise noted)
Building Materials Business
The Building Materials business generated record
first-quarter revenues of $1.27 billion, a 10.1 percent increase.
Gross profit increased 99.4 percent to a first-quarter record of
$275.9 million. Double-digit pricing gains, partially offset by
continued inflationary pressure, resulted in gross margin
improvement of 970 basis points.
Aggregates
First-quarter aggregates shipments decreased 0.8
percent, largely due to historically wet weather in California,
which was partially offset by mild weather and strong demand in the
Southeast. Pricing increased 22.6 percent, or 12.8 percent
sequentially, due to the cumulative effect of 2022 and January 1,
2023 pricing actions.
Aggregates gross profit increased 131.7 percent
to a first-quarter record of $238.1 million. Similarly, gross
margin expanded 1,250 basis points to a first-quarter record of
26.1 percent, as strong pricing growth more than offset modestly
lower shipments and increased costs.
Cement
Despite continued robust demand, cement
shipments decreased 6.8 percent to 1.0 million tons, primarily
attributable to wet and cold weather in Texas. Pricing increased
32.2 percent in the first quarter, a record for Martin Marietta,
aided by largely sold-out conditions and the compounding effect of
price increases in 2022 and 2023.
Cement gross profit increased 75.4 percent to a
first-quarter record of $47.1 million. Gross margin increased 860
basis points to 28.0 percent, as pricing gains more than offset
lower shipments and higher raw materials and maintenance costs.
Downstream businesses
Ready mixed concrete revenues and gross profit
declined 24.4 percent and 48.9 percent, respectively, driven
largely by the divestiture of the Company’s Colorado and Central
Texas ready mixed concrete businesses on April 1, 2022.
Asphalt and paving revenues increased 2.1
percent to $58.0 million and, consistent with the Company’s
historical first-quarter trends, the business posted an overall
loss of $20.5 million due to seasonal winter operational shutdowns
in Minnesota.
Portfolio Optimization
On April 26, 2023, the Company terminated its
agreement with CalPortland Company (“CalPortland”) regarding the
sale of the Company’s Tehachapi, California cement plant and
related distribution terminals to CalPortland in light of the
parties being unable to timely obtain the necessary approval by the
U.S. Federal Trade Commission. The Company intends to explore
the potential sale of Tehachapi to other buyers. On May 3, 2023,
the Company divested its cement import operations in California.
Since October 1, 2021, these cement businesses were classified as
assets held for sale on the Company’s consolidated balance sheet;
the associated financial results continue to be reported as
discontinued operations on the consolidated statement of
earnings.
Magnesia Specialties Business
Magnesia Specialties revenues increased 8.4
percent to a first-quarter record of $83.4 million, driven by
higher pricing for all product lines. Gross profit declined 2.7
percent to $25.0 million as higher supplies and contract services
costs adversely impacted the quarter.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities for the
quarter ended March 31, 2023 was $160.5 million compared with
$169.9 million for the prior-year period.
Cash paid for property, plant and equipment
additions for the quarter ended March 31, 2023 was $173.9
million.
During the quarter ended March 31, 2023, the
Company returned $116.6 million to shareholders through dividend
payments and share repurchases. As of March 31, 2023, 12.9 million
shares remained under the current repurchase authorization.
The Company had $229.4 million of unrestricted
cash and cash equivalents on hand and $1.2 billion of unused
borrowing capacity on its existing credit facilities as of March
31, 2023.
Full-Year 2023 Guidance (to be revisited
at mid-year)
The Company’s 2023 guidance excludes businesses
classified as discontinued operations.
2023 GUIDANCE |
|
(Dollars in Millions) |
|
Low * |
|
|
High * |
|
Consolidated |
|
|
|
|
|
|
Total revenues1 |
|
$ |
6,600 |
|
|
$ |
6,815 |
|
Interest expense |
|
$ |
165 |
|
|
$ |
170 |
|
Estimated tax rate (excluding
discrete events) |
|
|
21 |
% |
|
|
22 |
% |
Net earnings from continuing
operations attributable to Martin Marietta |
|
$ |
880 |
|
|
$ |
990 |
|
Adjusted EBITDA2 |
|
$ |
1,800 |
|
|
$ |
1,900 |
|
Capital
expenditures |
|
$ |
575 |
|
|
$ |
625 |
|
|
|
|
|
|
|
|
Building Materials
Business |
|
|
|
|
|
|
Aggregates |
|
|
|
|
|
|
Volume % growth3 |
|
|
(2.0 |
)% |
|
|
2.0 |
% |
ASP % growth4 |
|
|
13.0 |
% |
|
|
15.0 |
% |
Gross profit |
|
$ |
1,225 |
|
|
$ |
1,295 |
|
|
|
|
|
|
|
|
Cement, Ready Mixed Concrete
and Asphalt and Paving |
|
|
|
|
|
|
Gross profit |
|
$ |
380 |
|
|
$ |
420 |
|
|
|
|
|
|
|
|
Magnesia Specialties
Business |
|
|
|
|
|
|
Gross profit |
|
$ |
100 |
|
|
$ |
110 |
|
* |
Guidance range represents the low end and high end of the
respective line items provided above. |
1 |
Total revenues include the sales of products and services to
customers (net of any discounts or allowances) and freight
revenues. |
2 |
Adjusted EBITDA is a non-GAAP financial measure. See Appendix to
this earnings release for a reconciliation to net earnings from
continuing operations attributable to Martin Marietta. |
3 |
Volume growth range is for aggregates shipments, inclusive of
internal tons, and is in comparison to 2022 shipments of 207.7
million tons. |
4 |
ASP growth is for aggregates average selling price and is in
comparison to 2022 ASP of $16.68 per ton. |
|
|
Non-GAAP Financial
Information
This earnings release contains financial
measures that have not been prepared in accordance with generally
accepted accounting principles in the United States (GAAP).
Reconciliations of non-GAAP financial measures to the closest GAAP
measures are included in the Appendix to this earnings release.
Management believes these non-GAAP measures are commonly used
financial measures for investors to evaluate the Company’s
operating performance and, when read in conjunction with the
Company’s consolidated financial statements, present a useful tool
to evaluate the Company’s ongoing operations, performance from
period to period and anticipated performance. In addition, these
are some of the factors the Company uses in internal evaluations of
the overall performance of its businesses. Management acknowledges
that there are many items that impact a company’s reported results
and the adjustments reflected in these non-GAAP measures are not
intended to present all items that may have impacted these results.
In addition, these non-GAAP measures are not necessarily comparable
to similarly titled measures used by other companies.
Conference Call Information
The Company will discuss its first-quarter 2023
earnings results on a conference call and an online webcast today
(May 4, 2023). The live broadcast of the Martin Marietta conference
call will begin at 10:00 a.m. Eastern Time and can be accessed
here. 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 Q1 2023 Supplemental Information on the
Investors section of its website.
About Martin Marietta
Martin Marietta, a member of the S&P 500
Index, is an American-based company and a leading supplier of
building materials, including aggregates, cement, ready mixed
concrete and asphalt. Through a network of operations spanning 28
states, Canada and The Bahamas, dedicated Martin Marietta teams
supply the resources necessary for building the solid foundations
on which our communities thrive. Martin Marietta’s Magnesia
Specialties business provides a full range of magnesium oxide,
magnesium hydroxide and dolomitic lime products. For more
information, visit www.martinmarietta.com or
www.magnesiaspecialties.com.
Investor Contact:
Jennifer Park Vice President,
Investor Relations (919)
510-4736Jennifer.Park@martinmarietta.com
MLM-E.
If you are interested in Martin Marietta stock,
management recommends that, at a minimum, reading the Company’s
current annual report and Forms 10-K, 10-Q and 8-K reports to the
Securities and Exchange Commission (SEC) over the past year. The
Company’s recent proxy statement for the annual meeting of
shareholders also contains important information. These and other
materials that have been filed with the SEC are accessible through
the Company’s website at www.martinmarietta.com and are also
available at the SEC’s website at www.sec.gov. You may also write
or call the Company’s Corporate Secretary, who will provide copies
of such reports.
Investors are cautioned that all statements in
this release that relate to the future involve risks and
uncertainties, and are based on assumptions that the Company
believes in good faith are reasonable but which may be materially
different from actual results. These statements, which are
forward-looking statements under the Private Securities Litigation
Reform Act of 1995, provide the investor with the Company’s
expectations or forecasts of future events. You can identify these
statements by the fact that they do not relate only to historical
or current facts. They may use words such as “guidance”,
“anticipate”, “may”, “expect”, “should”, “believe”, “will”, and
other words of similar meaning in connection with future events or
future operating or financial performance. Any or all of the
Company’s forward-looking statements here and in other publications
may turn out to be wrong.
First-quarter results and trends described in
this release may not necessarily be indicative of the Company’s
future performance. The Company’s outlook is subject to various
risks and uncertainties and is based on assumptions that the
Company believes in good faith are reasonable but which may be
materially different from actual results. Factors that the Company
currently believes could cause actual results to differ materially
from the forward-looking statements in this release (including the
outlook) include, but are not limited to: the ability of the
Company to face challenges, including shipment declines resulting
from economic events beyond the Company’s control; a widespread
decline in aggregates pricing, including a decline in aggregates
shipment volume negatively affecting aggregates price; the history
of both cement and ready mixed concrete being subject to
significant changes in supply, demand and price fluctuations; the
termination, capping and/or reduction or suspension of the federal
and/or state fuel tax(es) or other revenue related to public
construction; the level and timing of federal, state or local
transportation or infrastructure or public projects funding, most
particularly in Texas, Colorado, California, North Carolina,
Georgia, Minnesota, Iowa, Florida, Indiana and Arizona; the United
States Congress’ inability to reach agreement among themselves or
with the Administration on policy issues that impact the federal
budget; the ability of states and/or other entities to finance
approved projects either with tax revenues or alternative financing
structures; levels of construction spending in the markets the
Company serves; a reduction in defense spending and the subsequent
impact on construction activity on or near military bases; a
decline in energy-related construction activity resulting from
suspension of the fuel tax or a sustained period of low global oil
prices or changes in oil production patterns or capital spending,
particularly in Texas and West Virginia; increasing residential
mortgage interest rates and other factors that could result in a
slowdown in residential construction; unfavorable weather
conditions, particularly Atlantic Ocean, Pacific Ocean and Gulf of
Mexico storm and hurricane activity, wildfires, the late start to
spring or the early onset of winter and the impact of a drought or
excessive rainfall in the markets served by the Company, any of
which can significantly affect production schedules, volumes,
product and/or geographic mix and profitability; the volatility of
fuel costs, particularly diesel fuel and the impact on the cost, or
the availability generally, of other consumables, namely steel,
explosives, tires and conveyor belts, and with respect to the
Company’s Magnesia Specialties business, natural gas; continued
increases in the cost of other repair and supply parts;
construction labor shortages and/or supply‐chain challenges;
unexpected equipment failures, unscheduled maintenance, industrial
accident or other prolonged and/or significant disruption to
production facilities; the resiliency and potential declines of the
Company’s various construction end-use markets; the potential
negative impacts of global health crises such as COVID-19 and its
variants; increasing governmental regulation, including
environmental laws and climate change regulations; transportation
availability or a sustained reduction in capital investment by the
railroads, notably the availability of railcars, locomotive power
and the condition of rail infrastructure to move trains to supply
the Company’s Texas, Colorado, Florida, Carolinas and Gulf Coast
markets, including the movement of essential dolomitic lime for
magnesia chemicals to the Company’s plant in Manistee, Michigan and
its customers; increased transportation costs, including increases
from higher or fluctuating passed-through energy costs or fuel
surcharges, and other costs to comply with tightening regulations,
as well as higher volumes of rail and water shipments; availability
of trucks and licensed drivers for transport of the Company’s
materials; availability and cost of construction equipment in the
United States; weakening in the steel industry markets served by
the Company’s dolomitic lime products; trade disputes with one or
more nations impacting the U.S. economy, including the impact of
tariffs on the steel industry; unplanned changes in costs or
realignment of customers that introduce volatility to earnings,
including that of the Magnesia Specialties business that is running
at capacity; proper functioning of information technology and
automated operating systems to manage or support operations;
inflation and its effect on both production and interest costs; the
concentration of customers in construction markets and the
increased risk of potential losses on customer receivables; the
impact of the level of demand in the Company’s end-use markets,
production levels and management of production costs on the
operating leverage and therefore profitability of the Company; the
possibility that the expected synergies from acquisitions will not
be realized or will not be realized within the expected time
period, including achieving anticipated profitability to maintain
compliance with the Company’s leverage ratio debt covenant; changes
in tax laws, the interpretation of such laws and/or administrative
practices, including acquisitions or divestitures, that would
increase the Company’s tax rate; violation of the Company’s debt
covenant if price and/or volumes return to previous levels of
instability; downward pressure on the Company’s common stock price
and its impact on goodwill impairment evaluations; the possibility
of a reduction of the Company’s credit rating to non-investment
grade; and other risk factors listed from time to time found in the
Company’s filings with the SEC.
You should consider these forward-looking
statements in light of risk factors discussed in Martin Marietta’s
Annual Report on Form 10-K for the year ended December 31, 2022 and
other periodic filings made with the SEC. All of the Company’s
forward-looking statements should be considered in light of these
factors. In addition, other risks and uncertainties not presently
known to the Company or that it considers immaterial could affect
the accuracy of its forward-looking statements, or adversely affect
or be material to the Company. The Company assumes no obligation to
update any such forward-looking statements.
|
|
MARTIN MARIETTA MATERIALS, INC.Unaudited
Statements of Earnings |
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(In Millions, Except Per Share Data) |
|
Total Revenues |
|
$ |
1,354.1 |
|
|
$ |
1,230.8 |
|
Total Cost of Revenues |
|
|
1,051.3 |
|
|
|
1,074.7 |
|
|
|
|
|
|
|
|
Gross Profit |
|
|
302.8 |
|
|
|
156.1 |
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
104.3 |
|
|
|
97.1 |
|
Acquisition and integration
expenses |
|
|
0.8 |
|
|
|
1.4 |
|
Other operating expenses
(income), net |
|
|
1.6 |
|
|
|
(2.3 |
) |
Earnings from Operations |
|
|
196.1 |
|
|
|
59.9 |
|
|
|
|
|
|
|
|
Interest expense |
|
|
42.2 |
|
|
|
40.5 |
|
Other nonoperating income,
net |
|
|
(16.1 |
) |
|
|
(10.8 |
) |
Earnings from continuing operations before income tax expense |
|
|
170.0 |
|
|
|
30.2 |
|
Income tax expense |
|
|
35.5 |
|
|
|
5.8 |
|
Earnings from continuing operations |
|
|
134.5 |
|
|
|
24.4 |
|
Loss from discontinued
operations, net of income tax benefit |
|
|
(12.9 |
) |
|
|
(3.1 |
) |
Consolidated net earnings |
|
|
121.6 |
|
|
|
21.3 |
|
Less: Net earnings (loss)
attributable to noncontrolling interests |
|
|
0.2 |
|
|
|
(0.1 |
) |
Net Earnings Attributable to
Martin Marietta Materials, Inc. |
|
$ |
121.4 |
|
|
$ |
21.4 |
|
|
|
|
|
|
|
|
Net Earnings (Loss)
Attributable to Martin Marietta |
|
|
|
|
|
|
Per Common Share: |
|
|
|
|
|
|
Basic from continuing operations |
|
$ |
2.17 |
|
|
$ |
0.39 |
|
Basic from discontinued operations |
|
|
(0.21 |
) |
|
|
(0.05 |
) |
|
|
$ |
1.96 |
|
|
$ |
0.34 |
|
|
|
|
|
|
|
|
Diluted from continuing operations |
|
$ |
2.16 |
|
|
$ |
0.39 |
|
Diluted from discontinued operations |
|
|
(0.21 |
) |
|
|
(0.05 |
) |
|
|
$ |
1.95 |
|
|
$ |
0.34 |
|
|
|
|
|
|
|
|
Weighted-Average Common Shares
Outstanding: |
|
|
|
|
|
|
Basic |
|
|
62.1 |
|
|
|
62.4 |
|
Diluted |
|
|
62.2 |
|
|
|
62.6 |
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Operating Segment Financial
Highlights |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(Dollars in Millions) |
|
Total revenues: |
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
East Group |
|
$ |
529.6 |
|
|
$ |
418.8 |
|
West Group |
|
|
741.1 |
|
|
|
735.0 |
|
Total Building Materials |
|
|
1,270.7 |
|
|
|
1,153.8 |
|
Magnesia Specialties |
|
|
83.4 |
|
|
|
77.0 |
|
Total |
|
$ |
1,354.1 |
|
|
$ |
1,230.8 |
|
|
|
|
|
|
|
|
Earnings (Loss) from
operations: |
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
East Group |
|
$ |
108.9 |
|
|
$ |
28.0 |
|
West Group |
|
|
94.7 |
|
|
|
43.0 |
|
Total Building Materials |
|
|
203.6 |
|
|
|
71.0 |
|
Magnesia Specialties |
|
|
20.6 |
|
|
|
21.5 |
|
Corporate |
|
|
(28.1 |
) |
|
|
(32.6 |
) |
Total |
|
$ |
196.1 |
|
|
$ |
59.9 |
|
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Financial Highlights (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2023 |
|
2022 |
|
|
Amount |
|
|
% of Revenues |
|
Amount |
|
|
% of Revenues |
|
|
(Dollars in Millions) |
Total revenues: |
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
911.9 |
|
|
|
|
$ |
756.6 |
|
|
|
Cement |
|
|
168.6 |
|
|
|
|
|
138.3 |
|
|
|
Ready mixed concrete |
|
|
220.0 |
|
|
|
|
|
291.1 |
|
|
|
Asphalt and paving |
|
|
58.0 |
|
|
|
|
|
56.8 |
|
|
|
Less: Interproduct sales |
|
|
(87.8 |
) |
|
|
|
|
(89.0 |
) |
|
|
Total Building Materials |
|
|
1,270.7 |
|
|
|
|
|
1,153.8 |
|
|
|
Magnesia Specialties |
|
|
83.4 |
|
|
|
|
|
77.0 |
|
|
|
Consolidated total
revenues |
|
$ |
1,354.1 |
|
|
|
|
$ |
1,230.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
238.1 |
|
|
26.1% |
|
$ |
102.8 |
|
|
13.6% |
Cement |
|
|
47.1 |
|
|
28.0% |
|
|
26.9 |
|
|
19.4% |
Ready mixed concrete |
|
|
11.2 |
|
|
5.1% |
|
|
21.9 |
|
|
7.5% |
Asphalt and paving |
|
|
(20.5 |
) |
|
(35.4)% |
|
|
(13.2 |
) |
|
(23.2)% |
Total Building Materials |
|
|
275.9 |
|
|
21.7% |
|
|
138.4 |
|
|
12.0% |
Magnesia Specialties |
|
|
25.0 |
|
|
30.0% |
|
|
25.6 |
|
|
33.3% |
Corporate |
|
|
1.9 |
|
|
NM |
|
|
(7.9 |
) |
|
NM |
Consolidated gross profit |
|
$ |
302.8 |
|
|
22.4% |
|
$ |
156.1 |
|
|
12.7% |
|
MARTIN MARIETTA MATERIALS, INC. |
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
Unaudited |
|
|
Audited |
|
|
|
(In millions) |
|
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
229.4 |
|
|
$ |
358.0 |
|
Restricted cash |
|
|
0.1 |
|
|
|
0.8 |
|
Restricted investments (to satisfy discharged debt and related
interest) |
|
|
702.3 |
|
|
|
704.6 |
|
Accounts receivable, net |
|
|
796.7 |
|
|
|
785.9 |
|
Inventories, net |
|
|
948.7 |
|
|
|
873.7 |
|
Current assets held for sale |
|
|
60.1 |
|
|
|
73.2 |
|
Other current assets |
|
|
75.4 |
|
|
|
80.7 |
|
Property, plant and equipment, net |
|
|
6,279.5 |
|
|
|
6,316.7 |
|
Intangible assets, net |
|
|
4,490.3 |
|
|
|
4,497.3 |
|
Operating lease right-of-use assets, net |
|
|
382.9 |
|
|
|
383.5 |
|
Noncurrent assets held for sale |
|
|
374.6 |
|
|
|
372.5 |
|
Other noncurrent assets |
|
|
550.9 |
|
|
|
546.7 |
|
Total assets |
|
$ |
14,890.9 |
|
|
$ |
14,993.6 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current maturities of discharged long-term debt |
|
$ |
699.6 |
|
|
$ |
699.1 |
|
Current liabilities held for sale |
|
|
4.2 |
|
|
|
4.5 |
|
Other current liabilities |
|
|
624.2 |
|
|
|
742.0 |
|
Long-term debt (excluding current maturities) |
|
|
4,342.0 |
|
|
|
4,340.9 |
|
Noncurrent liabilities held for sale |
|
|
21.2 |
|
|
|
21.8 |
|
Other noncurrent liabilities |
|
|
2,022.2 |
|
|
|
2,012.5 |
|
Total equity |
|
|
7,177.5 |
|
|
|
7,172.8 |
|
Total liabilities and equity |
|
$ |
14,890.9 |
|
|
$ |
14,993.6 |
|
|
MARTIN MARIETTA MATERIALS, INC.Unaudited
Statements of Cash Flows |
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(Dollars in Millions) |
|
Cash Flows from Operating
Activities: |
|
|
|
|
|
|
Consolidated net earnings |
|
$ |
121.6 |
|
|
$ |
21.3 |
|
Adjustments to reconcile
consolidated net earnings to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
123.6 |
|
|
|
128.2 |
|
Stock-based compensation expense |
|
|
13.7 |
|
|
|
12.0 |
|
Gains on sales of assets |
|
|
(1.0 |
) |
|
|
(2.9 |
) |
Deferred income taxes, net |
|
|
6.3 |
|
|
|
5.2 |
|
Other items, net |
|
|
(1.7 |
) |
|
|
(0.9 |
) |
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
(13.7 |
) |
|
|
14.8 |
|
Inventories, net |
|
|
(82.4 |
) |
|
|
(28.9 |
) |
Accounts payable |
|
|
17.8 |
|
|
|
95.5 |
|
Other assets and liabilities, net |
|
|
(23.7 |
) |
|
|
(74.4 |
) |
Net Cash Provided by Operating
Activities |
|
|
160.5 |
|
|
|
169.9 |
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities: |
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(173.9 |
) |
|
|
(139.8 |
) |
Acquisitions, net of cash acquired |
|
|
— |
|
|
|
18.8 |
|
Proceeds from sales of assets |
|
|
22.3 |
|
|
|
1.0 |
|
Investments in life insurance contracts, net |
|
|
3.1 |
|
|
|
— |
|
Other investing activities, net |
|
|
(3.9 |
) |
|
|
(3.0 |
) |
Net Cash Used for Investing
Activities |
|
|
(152.4 |
) |
|
|
(123.0 |
) |
|
|
|
|
|
|
|
Cash Flows from Financing
Activities: |
|
|
|
|
|
|
Payments on finance lease obligations |
|
|
(4.3 |
) |
|
|
(3.7 |
) |
Dividends paid |
|
|
(41.6 |
) |
|
|
(38.9 |
) |
Repurchases of common stock |
|
|
(75.0 |
) |
|
|
(50.0 |
) |
Proceeds from exercise of stock options |
|
|
0.2 |
|
|
|
0.6 |
|
Shares withheld for employees’ income tax obligations |
|
|
(16.7 |
) |
|
|
(24.2 |
) |
Net Cash Used for Financing
Activities |
|
|
(137.4 |
) |
|
|
(116.2 |
) |
Net Decrease in Cash, Cash
Equivalents and Restricted Cash |
|
|
(129.3 |
) |
|
|
(69.3 |
) |
Cash, Cash Equivalents and
Restricted Cash, beginning of period |
|
|
358.8 |
|
|
|
258.9 |
|
Cash, Cash Equivalents and
Restricted Cash, end of period |
|
$ |
229.5 |
|
|
$ |
189.6 |
|
|
MARTIN MARIETTA MATERIALS, INC.Unaudited
Operational Highlights |
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
Total
Shipments (in millions) |
|
|
|
|
|
|
|
|
|
Aggregates tons |
|
|
41.7 |
|
|
|
42.1 |
|
|
|
(0.8 |
)% |
Cement tons |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
(6.8 |
)% |
Ready mixed concrete cubic
yards |
|
|
1.5 |
|
|
|
2.4 |
|
|
|
(37.1 |
)% |
Asphalt tons |
|
|
0.5 |
|
|
|
0.7 |
|
|
|
(25.1 |
)% |
|
|
|
|
|
|
|
|
|
|
Average unit sales
price by product line (including internal sales): |
|
|
|
|
|
|
|
|
|
Aggregates (per ton) |
|
$ |
19.83 |
|
|
$ |
16.17 |
|
|
|
22.6 |
% |
Cement (per ton) |
|
$ |
170.65 |
|
|
$ |
129.11 |
|
|
|
32.2 |
% |
Ready mixed concrete (per
cubic yard) |
|
$ |
145.06 |
|
|
$ |
120.71 |
|
|
|
20.2 |
% |
Asphalt (per ton) |
|
$ |
68.53 |
|
|
$ |
62.39 |
|
|
|
9.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
Earnings from continuing operations before
interest; income taxes; depreciation, depletion and amortization
expense; the earnings/loss from nonconsolidated equity affiliates;
and acquisition and integration expenses (Adjusted EBITDA) is an
indicator used by the Company and investors to evaluate the
Company’s operating performance from period to period. Adjusted
EBITDA is not defined by generally accepted accounting principles
and, as such, should not be construed as an alternative to earnings
from operations, net earnings attributable to Martin Marietta or
operating cash flow. For further information on Adjusted EBITDA,
refer to the Company’s website at www.martinmarietta.com.
Reconciliation of Net Earnings from
Continuing Operations Attributable to Martin Marietta to Adjusted
EBITDA
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(Dollars in Millions) |
|
Net earnings from continuing operations attributable to Martin
Marietta |
|
$ |
134.3 |
|
|
$ |
24.5 |
|
Add back: |
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
31.6 |
|
|
|
40.5 |
|
Income tax expense for controlling interests |
|
|
35.5 |
|
|
|
5.9 |
|
Depreciation, depletion and amortization expense and
earnings/loss from nonconsolidated equity affiliates |
|
|
121.7 |
|
|
|
124.9 |
|
Acquisition and integration expenses |
|
|
0.8 |
|
|
|
1.4 |
|
Adjusted EBITDA |
|
$ |
323.9 |
|
|
$ |
197.2 |
|
Reconciliation of the GAAP Measure to
2023 Adjusted EBITDA Guidance Range
|
|
Low Point of Range |
|
|
High Point of Range |
|
|
|
(Dollars in Millions) |
|
Net earnings from continuing operations attributable to Martin
Marietta |
|
$ |
880.0 |
|
|
$ |
990.0 |
|
Add back: |
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
150.0 |
|
|
|
155.0 |
|
Income tax expense for controlling interests |
|
|
270.0 |
|
|
|
235.0 |
|
Depreciation, depletion and amortization expense and
earnings/loss from nonconsolidated equity affiliates |
|
|
500.0 |
|
|
|
520.0 |
|
Adjusted EBITDA |
|
$ |
1,800.0 |
|
|
$ |
1,900.0 |
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
Mix-adjusted average selling price (mix-adjusted
ASP) is a non-GAAP measure that excludes the impact of
period-over-period product, geographic and other mix on the average
selling price. Mix-adjusted ASP is calculated by comparing
current-period shipments to like-for-like shipments in the
comparable prior period. Management uses this metric to evaluate
the realization of pricing increases and believes this information
is useful to investors. The following reconciles reported average
selling price to mix-adjusted ASP and corresponding variances.
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
Aggregates: |
|
|
|
|
|
|
Reported average selling price |
|
$ |
19.83 |
|
|
$ |
16.17 |
|
Adjustment for impact of
product, geographic and other mix |
|
|
(0.50 |
) |
|
|
|
Mix-adjusted ASP |
|
$ |
19.33 |
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
22.6 |
% |
|
|
|
Mix-adjusted ASP variance |
|
|
19.6 |
% |
|
|
|
|
|
|
|
|
|
|
Cement - Continuing
Operations: |
|
|
|
|
|
|
Reported average selling
price |
|
$ |
170.65 |
|
|
$ |
129.11 |
|
Adjustment for impact of
product, geographic and other mix |
|
|
(0.38 |
) |
|
|
|
Mix-adjusted ASP |
|
$ |
170.27 |
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
32.2 |
% |
|
|
|
Mix-adjusted ASP variance |
|
|
31.9 |
% |
|
|
|
Martin Marietta Materials (NYSE:MLM)
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