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 fourth quarter
and year ended December 31, 2021.
Highlights include: (Financial highlights are
for continuing operations)
|
Quarter Ended December 31, |
|
|
Year Ended December 31, |
|
(in
millions, except per share) |
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Products and services revenues 1 |
$ |
1,404.9 |
|
|
$ |
1,110.9 |
|
|
$ |
5,084.7 |
|
|
$ |
4,432.1 |
|
Building Materials business |
$ |
1,337.3 |
|
|
$ |
1,054.1 |
|
|
$ |
4,810.0 |
|
|
$ |
4,211.2 |
|
Magnesia Specialties |
$ |
67.6 |
|
|
$ |
56.8 |
|
|
$ |
274.7 |
|
|
$ |
220.9 |
|
Total revenues 2 |
$ |
1,496.4 |
|
|
$ |
1,179.6 |
|
|
$ |
5,414.0 |
|
|
$ |
4,729.9 |
|
Gross profit |
$ |
346.7 |
|
|
$ |
325.4 |
|
|
$ |
1,348.4 |
|
|
$ |
1,252.8 |
|
Adjusted gross profit 3 |
$ |
361.6 |
|
|
$ |
325.4 |
|
|
$ |
1,379.0 |
|
|
$ |
1,252.8 |
|
Earnings from operations
7 |
$ |
210.0 |
|
|
$ |
240.6 |
|
|
$ |
973.8 |
|
|
$ |
1,005.4 |
|
Adjusted earnings from
operations 4, 7 |
$ |
264.7 |
|
|
$ |
240.6 |
|
|
$ |
1,062.3 |
|
|
$ |
1,005.4 |
|
Net earnings from continuing
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to Martin Marietta 7 |
$ |
156.3 |
|
|
$ |
183.0 |
|
|
$ |
702.0 |
|
|
$ |
721.0 |
|
Adjusted EBITDA 5, 7 |
$ |
393.7 |
|
|
$ |
335.1 |
|
|
$ |
1,528.5 |
|
|
$ |
1,392.8 |
|
Earnings per diluted share
from continuing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations 7 |
$ |
2.49 |
|
|
$ |
2.93 |
|
|
$ |
11.21 |
|
|
$ |
11.54 |
|
Adjusted earnings per diluted
share from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continuing operations 6, 7 |
$ |
3.15 |
|
|
$ |
2.93 |
|
|
$ |
12.28 |
|
|
$ |
11.54 |
|
1 Products and services revenues include
the sales of aggregates, cement, ready mixed concrete, asphalt and
Magnesia Specialties products, and paving services to customers,
and exclude related freight revenues.2 Total revenues include
the sales of products and services to customers (net of any
discounts or allowances) and freight revenues.3 Fourth-quarter
and full-year 2021 adjusted gross profit excludes an increase in
cost of revenues from the impact of selling acquired inventory
after its markup to fair value as part of acquisition accounting.
See Appendix to this earnings release for a reconciliation to
reported gross profit under generally accepted accounting
principles (GAAP).4 Fourth-quarter and full-year 2021 adjusted
earnings from operations exclude an increase in cost of revenues
from the impact of selling acquired inventory after its markup to
fair value as part of acquisition accounting and
acquisition-related expenses. See Appendix to this earnings release
for a reconciliation to reported earnings from operations under
GAAP.5 Earnings from continuing operations before interest;
income taxes; depreciation, depletion and amortization; the
earnings/loss from nonconsolidated equity affiliates;
acquisition-related expenses; and an increase in cost of revenues
from the impact of selling acquired inventory after its markup to
fair value as part of acquisition accounting, 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.6 Fourth-quarter
and full-year 2021 adjusted earnings per diluted share from
continuing operations excludes charges for the impact of selling
acquired inventory after its markup to fair value as part of
acquisition accounting and acquisition-related expenses. See
Appendix to this earnings release for a reconciliation to reported
earnings per diluted share from continuing operations under
GAAP.7 Full-year 2021 earnings from operations, adjusted
earnings from operations, net earnings from continuing operations
attributable to Martin Marietta, Adjusted EBITDA, earnings per
diluted share from continuing operations and adjusted earnings per
diluted share from continuing operations included $21.6 million,
$21.6 million, $16.5 million, $21.6 million, $0.26 per diluted
share and $0.26 per diluted share, respectively, of gains on
surplus land sales and divested assets. Full-year 2020 earnings
from operations, adjusted earnings from operations, net earnings
from continuing operations attributable to Martin Marietta,
Adjusted EBITDA, earnings per diluted share from continuing
operations and adjusted earnings per diluted share from continuing
operations included $69.9 million, $69.9 million, $54.1 million,
$69.9 million, $0.87 per diluted share and $0.87 per diluted share,
respectively, of gains on surplus land sales and divested assets.
These gains were nonrecurring in nature.
Ward Nye, Chairman and CEO of Martin Marietta,
stated, “By nearly all measures, 2021 was a momentous period of
growth for Martin Marietta. We made tremendous progress on our SOAR
2025 initiatives and delivered the most profitable and safest year
in our Company’s history. Notably, 2021 marked ten years of
consecutive growth for consolidated products and services revenues,
adjusted gross profit, Adjusted EBITDA and adjusted earnings per
diluted share. We also successfully completed $3.1 billion in
value-enhancing acquisitions, thereby expanding our geographic
footprint and product offerings in multiple attractive high-growth
markets. These accomplishments are a testament to our team’s
commitment to Martin Marietta’s vision and strategic priorities and
further position our Company for continued success in 2022 and
beyond.
“As we look forward, Martin Marietta is poised
to capitalize on the favorable demand trends and market
fundamentals across our key geographies. Building on attractive
fourth-quarter momentum, we anticipate that both public and private
construction activity will accelerate for the first time since our
industry’s product shipment peak in 2005. Enhanced federal- and
state-level surface transportation investment, single-family
housing strength, and notable heavy industrial projects should
drive robust product demand in 2022. These trends, combined with a
light nonresidential recovery and incremental federal funding from
the recently enacted Infrastructure Investment and Jobs Act,
further support growing construction activity. Importantly, Martin
Marietta has the ability and capacity to supply these needed
products and, supported by our locally-led pricing strategy, will
do so in a manner that emphasizes value over volume.”
Mr. Nye concluded, “We are confident in our
ability to benefit from these favorable macroeconomic trends as
Martin Marietta builds the safest, best performing and most durable
aggregates-led public company. With a steadfast commitment to
employee health and safety, commercial and operational excellence,
sustainable business practices and execution of our strategic plan,
we are confident in Martin Marietta’s opportunities to continue to
deliver industry-leading safety, operational and financial
performance. As we SOAR to a Sustainable Future,
we look forward to extending our long track record of disciplined
growth and enhancing stakeholder value.”
Fourth-Quarter Operating and Financial
Results
(All operating and financial results are for
continuing operations and comparisons are versus the prior-year
fourth quarter, unless otherwise noted)
Building Materials Business
The Building Materials business achieved record
fourth-quarter products and services revenues of $1.3 billion, a
26.9 percent increase, and record product gross profit of $318.4
million, a 6.6 percent increase. The business experienced strong
shipment levels across all product lines and primary end-use
markets, aided, in part, by weather conditions that extended 2021
construction activity. Pricing also increased across all product
lines.
As previously announced, on October 1, 2021, the
Company completed the acquisition of Lehigh Hanson, Inc.’s West
Region business (“Lehigh West Region”), which included a portfolio
of 17 active aggregates quarries, two cement plants with related
distribution terminals, and targeted downstream operations,
predominantly in California and Arizona. Lehigh West Region’s
aggregates, asphalt and Arizona ready mixed concrete businesses are
reported within the Company’s West Group. The remainder of the
Lehigh West Region’s operations, namely the cement and California
ready mixed concrete businesses, are classified as assets held for
sale/discontinued operations. The Company is actively exploring
strategic alternatives for these businesses.
Aggregates
Fourth-quarter organic aggregates shipments
increased 9.3 percent, reflecting growing product demand that
overcame continued contractor and transportation-related capacity
constraints. Organic pricing increased 2.8 percent, in line with
management’s previously stated expectations.
Total aggregates shipments, including acquired
operations, grew 19.7 percent. Acquired operations have selling
prices below the Company’s average, which limited overall pricing
growth to 1.4 percent.
By segment:
- East Group total shipments
increased 13.8 percent and benefitted from robust construction
activity across all three primary end-use markets and volume from
the acquired Minnesota-based Tiller operations. Pricing, inclusive
of acquisitions, decreased slightly. On a mix-adjusted basis, East
Group pricing grew 2.7 percent.
- West Group total shipments
increased 30.5 percent from strong underlying demand in both Texas
and Colorado and shipments from newly-acquired operations. Pricing
increased 6.1 percent, or 2.6 percent on a mix-adjusted basis,
driven by improving long-haul shipments from higher-priced
distribution yards.
Fourth-quarter aggregates product gross margin
decreased 450 basis points to 26.2 percent, driven primarily by
$15.3 million in higher diesel costs and a $13.4 million increase
in cost of revenues from the impact of selling acquired inventory
after its markup to fair value as part of acquisition accounting.
Excluding the impact of acquisition accounting, adjusted aggregates
product gross margin was 27.9 percent.
Cement
Texas cement shipments increased 0.3 percent to
nearly 1.1 million tons, a quarterly record. Large and diversified
projects, coupled with improving demand for specialty oil-well
cement products, offset one less shipping day relative to the
prior-year quarter. Pricing grew 11.6 percent, or 9.9 percent on a
mix-adjusted basis, reflecting favorable Texas market dynamics.
Cement product gross margin declined 350 basis points to 41.0
percent as higher energy and raw materials costs outpaced shipment
and pricing gains.
Downstream businesses
Organic ready mixed concrete shipments increased
8.3 percent, reflecting the healthy Texas and Colorado demand
environment. Organic pricing grew 3.3 percent, supported by
mid-year price increases in Texas. Inclusive of the acquired
Arizona operations, ready mixed concrete shipments and pricing
increased 18.9 percent and 3.1 percent, respectively. Product gross
margin declined 70 basis points to 8.0 percent, driven by higher
raw material and diesel costs.
Favorable winter weather conditions in Colorado
contributed to a 15.8 percent increase in organic asphalt
shipments. Organic pricing increased 7.1 percent. Including the
acquired Tiller and Lehigh West Region operations, total asphalt
shipments and pricing increased 211.5 percent and 9.0 percent,
respectively. Asphalt and paving products and services gross margin
decreased 650 basis points to 11.6 percent, driven by higher raw
material costs and a $1.5 million increase in cost of revenues from
the impact of selling acquired inventory after its markup to fair
value as part of acquisition accounting. Excluding the impact of
acquisition accounting, adjusted products and services gross margin
was 12.5 percent.
Magnesia Specialties Business
Magnesia Specialties fourth-quarter product
revenues increased 18.8 percent to a record $67.6 million,
reflecting robust domestic and global demand. Product gross margin
declined 440 basis points to 38.4 percent as higher energy, raw
material and contract services costs offset revenue growth.
Consolidated
Fourth-quarter other nonoperating expenses, net,
included $7.4 million in 2021 and $5.9 million in 2020 to finance
third-party railroad maintenance. In exchange, the Company received
a federal income tax benefit of $9.2 million and $7.3 million,
respectively.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities was $1.14
billion in 2021, an all-time record, compared with $1.05 billion in
2020.
Cash paid for property, plant and equipment
additions was $423.1 million.
On October 1, 2021, the Company completed its
acquisition of Lehigh West Region for $2.3 billion in cash. The
acquisition was primarily financed using proceeds from the July
2021 issuance of publicly traded debt.
The Company returned $147.8 million to
shareholders through dividend payments in 2021. Since announcing a
20 million share repurchase authorization in February 2015, the
Company has returned over $1.9 billion through a combination of
dividends and share repurchases.
The Company had $258.9 million of cash, cash
equivalents and restricted cash on hand and nearly $1.2 billion of
unused borrowing capacity on its existing credit facilities as of
December 31, 2021.
Full-Year 2022 Guidance
Martin Marietta remains confident that favorable
pricing dynamics will continue, supported by the Company’s
locally-driven pricing strategy, and attractive underlying
fundamentals and long-term secular growth trends in its key
geographies should drive multi-year growth in construction
materials.
Full-year guidance excludes the businesses
classified as discontinued operations.
2022 GUIDANCE |
|
(Dollars in millions) |
|
Low * |
|
|
High * |
|
Consolidated |
|
|
|
|
|
|
|
|
Products and services revenues
1 |
|
$ |
5,780 |
|
|
$ |
5,980 |
|
Gross profit |
|
$ |
1,575 |
|
|
$ |
1,695 |
|
Selling, general and
administrative expenses (SG&A) |
|
$ |
405 |
|
|
$ |
415 |
|
Interest expense |
|
$ |
165 |
|
|
$ |
170 |
|
Estimated tax rate (excluding
discrete events) |
|
|
21 |
% |
|
|
22 |
% |
Net earnings from continuing
operations attributable to Martin Marietta |
|
$ |
805 |
|
|
$ |
915 |
|
Adjusted EBITDA 2 |
|
$ |
1,700 |
|
|
$ |
1,800 |
|
Capital
expenditures |
|
$ |
525 |
|
|
$ |
550 |
|
|
|
|
|
|
|
|
|
|
Building Materials
business |
|
|
|
|
|
|
|
|
Aggregates |
|
|
|
|
|
|
|
|
Organic volume % growth 3 |
|
|
1.0 |
% |
|
|
4.0 |
% |
Volume % growth 4 |
|
|
7.0 |
% |
|
|
10.0 |
% |
Organic average selling price per ton (ASP) % growth 5 |
|
|
5.0 |
% |
|
|
8.0 |
% |
Total ASP growth 6 |
|
|
5.0 |
% |
|
|
8.0 |
% |
Products and services revenues |
|
$ |
3,465 |
|
|
$ |
3,570 |
|
Gross profit |
|
$ |
1,080 |
|
|
$ |
1,150 |
|
|
|
|
|
|
|
|
|
|
Cement |
|
|
|
|
|
|
|
|
Products and services revenues |
|
$ |
540 |
|
|
$ |
565 |
|
Gross profit |
|
$ |
190 |
|
|
$ |
210 |
|
|
|
|
|
|
|
|
|
|
Ready Mixed Concrete and
Asphalt and Paving |
|
|
|
|
|
|
|
|
Products and services revenues |
|
$ |
1,925 |
|
|
$ |
2,000 |
|
Gross profit |
|
$ |
200 |
|
|
$ |
220 |
|
|
|
|
|
|
|
|
|
|
Magnesia Specialties |
|
|
|
|
|
|
|
|
Products and services revenues |
|
$ |
270 |
|
|
$ |
280 |
|
Gross profit |
|
$ |
105 |
|
|
$ |
115 |
|
* Guidance range represents the low end and high end of the
respective line items provided above.1 Consolidated products and
services revenues exclude $420 million to $435 million related to
estimated interproduct sales and exclude freight revenues.2
Adjusted EBITDA is a non-GAAP financial measure. See Appendix to
this earnings release for a reconciliation to net earnings from
continuing operations attributable to Martin Marietta.3 Organic
volume % growth range is for organic aggregates shipments,
inclusive of internal tons, and is in comparison with 2021 organic
shipments of 192.9 million tons.4 Total volume % growth range is
for total aggregates shipments, inclusive of internal tons and
acquired operations, and is in comparison with total 2021 shipments
of 201.2 million tons.5 Organic ASP % growth range is for organic
aggregates average selling price and is in comparison with 2021
organic ASP of $15.21 per ton.6 Total ASP growth is for total
aggregates average selling price, inclusive of acquired operations,
and is in comparison with 2021 total ASP of $15.08 per ton.
Non-GAAP Financial
Information
This earnings release contains financial
measures that have not been prepared in accordance with generally
accepted accounting principles in the United States (GAAP).
Reconciliations of non-GAAP financial measures to the closest GAAP
measures are included in the accompanying Appendix to this earnings
release. Management believes these non-GAAP measures are commonly
used financial measures for investors to evaluate the Company’s
operating performance and, when read in conjunction with the
Company’s consolidated financial statements, present a useful tool
to evaluate the Company’s ongoing operations, performance from
period to period and anticipated performance. In addition, these
are some of the factors the Company uses in internal evaluations of
the overall performance of its businesses. Management acknowledges
that there are many items that impact a company’s reported results
and the adjustments reflected in these non-GAAP measures are not
intended to present all items that may have impacted these results.
In addition, these non-GAAP measures are not necessarily comparable
to similarly titled measures used by other companies.
Conference Call Information
The Company will discuss its fourth-quarter and
full-year 2021 earnings results on a conference call and an online
webcast today (February 10, 2022). The live broadcast of the Martin
Marietta conference call will begin at 11:00 a.m. Eastern Time. For
those investors without online web access, the conference call may
also be accessed by dialing (970) 315-0423, confirmation number
1786214. 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 2021 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:
Suzanne Osberg Vice President,
Investor Relations (919)
783-4691Suzanne.Osberg@martinmarietta.com
MLM-E.
If you are interested in Martin Marietta stock,
management recommends that, at a minimum, you read the Company’s
current annual report and Forms 10-K, 10-Q and 8-K reports to the
Securities and Exchange Commission (SEC) over the past year. The
Company’s recent proxy statement for the annual meeting of
shareholders also contains important information. These and other
materials that have been filed with the SEC are accessible through
the Company’s website at www.martinmarietta.com and are also
available at the SEC’s website at www.sec.gov. You may also write
or call the Company’s Corporate Secretary, who will provide copies
of such reports.
Investors are cautioned that all statements in
this release that relate to the future involve risks and
uncertainties, and are based on assumptions that the Company
believes in good faith are reasonable but which may be materially
different from actual results. These statements, which are
forward-looking statements under the Private Securities Litigation
Reform Act of 1995, give the investor the Company’s expectations or
forecasts of future events. You can identify these statements by
the fact that they do not relate only to historical or current
facts. They may use words such as “guidance”, “anticipate”,
“expect”, “should”, “believe”, “will”, and other words of similar
meaning in connection with future events or future operating or
financial performance. Any or all of the Company’s forward-looking
statements here and in other publications may turn out to be
wrong.
Fourth-quarter results and trends described in
this release may not necessarily be indicative of the Company’s
future performance. The Company’s outlook is subject to various
risks and uncertainties, and is based on assumptions that the
Company believes in good faith are reasonable but which may be
materially different from actual results. Factors that the Company
currently believes could cause actual results to differ materially
from the forward-looking statements in this release (including the
outlook) include, but are not limited to: the ability of the
Company to face challenges, including those posed by the COVID-19
pandemic and implementation of any such related response plans; the
fluctuations in COVID-19 cases in the United States and the extent
that geography of outbreak primarily matches the regions in which
the Company’s Building Materials business principally operates; the
resiliency and potential declines of the Company’s various
construction end-use markets; the potential negative impact of the
COVID-19 pandemic on the Company’s ability to continue supplying
heavy-side building materials and related services at normal levels
or at all in the Company’s key regions; the duration, impact and
severity of the impacts of the COVID-19 pandemic on the Company,
including the markets in which it does business, its suppliers,
customers or other business partners as well as on its employees;
the economic impact of government responses to the pandemic; the
performance of the United States economy, including the impact on
the economy of the COVID-19 pandemic and governmental orders
restricting activities imposed to prevent further outbreak of
COVID-19; shipment declines resulting from economic events beyond
the Company’s control; a widespread decline in aggregates pricing,
including a decline in aggregates shipment volume negatively
affecting aggregates price; the history of both cement and ready
mixed concrete being subject to significant changes in supply,
demand and price fluctuations; the termination, capping and/or
reduction or suspension of the federal and/or state gasoline
tax(es) or other revenue related to public construction; the level
and timing of federal, state or local transportation or
infrastructure or public projects funding, most particularly in
Texas, Colorado, North Carolina, Georgia, Florida, Iowa, Minnesota
and Maryland; the impact of governmental orders restricting
activities imposed to prevent further outbreak of COVID-19 on
travel, potentially reducing state fuel tax revenues used to fund
highway projects; the United States Congress’ inability to reach
agreement among themselves or with the Administration on policy
issues that impact the federal budget; the ability of states and/or
other entities to finance approved projects either with tax
revenues or alternative financing structures; levels of
construction spending in the markets the Company serves; a
reduction in defense spending and the subsequent impact on
construction activity on or near military bases; a decline in the
commercial component of the nonresidential construction market,
notably office and retail space, including a decline resulting from
economic distress related to the COVID-19 pandemic; a decline in
energy-related construction activity resulting from a sustained
period of low global oil prices or changes in oil production
patterns or capital spending, 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 and Gulf of Mexico hurricane activity, the late start to
spring or the early onset of winter and the impact of a drought or
excessive rainfall in the markets served by the Company, any of
which can significantly affect production schedules, volumes,
product and/or geographic mix and profitability; whether the
Company’s operations will continue to be treated as “essential”
operations under applicable government orders restricting business
activities imposed to prevent further outbreak of COVID-19 or, even
if so treated, whether site-specific health and safety concerns
might otherwise require certain of the Company’s operations to be
halted for some period of time; the volatility of fuel costs,
particularly diesel fuel, and the impact on the cost, or the
availability generally, of other consumables, namely steel,
explosives, tires and conveyor belts, and with respect to the
Company’s Magnesia Specialties business, natural gas; continued
increases in the cost of other repair and supply parts;
construction labor shortages and/or supply‐chain challenges;
unexpected equipment failures, unscheduled maintenance, industrial
accident or other prolonged and/or significant disruption to
production facilities; increasing governmental regulation,
including environmental laws; the failure of relevant government
agencies to implement expected regulatory reductions;
transportation availability or a sustained reduction in capital
investment by the railroads, notably the availability of railcars,
locomotive power and the condition of rail infrastructure to move
trains to supply the Company’s Texas, Colorado, Florida, Carolinas
and 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, 2020,
Martin Marietta’s Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2021, June 30, 2021 and September 30, 2021, 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 |
|
(in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Products and services
revenues |
|
$ |
1,404.9 |
|
|
$ |
1,110.9 |
|
|
$ |
5,084.7 |
|
|
$ |
4,432.1 |
|
Freight revenues |
|
|
91.5 |
|
|
|
68.7 |
|
|
|
329.3 |
|
|
|
297.8 |
|
Total Revenues |
|
|
1,496.4 |
|
|
|
1,179.6 |
|
|
|
5,414.0 |
|
|
|
4,729.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues - products
and services |
|
|
1,058.8 |
|
|
|
784.7 |
|
|
|
3,735.7 |
|
|
|
3,175.6 |
|
Cost of revenues -
freight |
|
|
90.9 |
|
|
|
69.5 |
|
|
|
329.9 |
|
|
|
301.5 |
|
Total cost of revenues |
|
|
1,149.7 |
|
|
|
854.2 |
|
|
|
4,065.6 |
|
|
|
3,477.1 |
|
Gross Profit |
|
|
346.7 |
|
|
|
325.4 |
|
|
|
1,348.4 |
|
|
|
1,252.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
102.9 |
|
|
|
84.9 |
|
|
|
351.0 |
|
|
|
305.9 |
|
Acquisition-related expenses,
net |
|
|
39.8 |
|
|
|
0.2 |
|
|
|
57.9 |
|
|
|
1.3 |
|
Other operating income,
net |
|
|
(6.0 |
) |
|
|
(0.3 |
) |
|
|
(34.3 |
) |
|
|
(59.8 |
) |
Earnings from Operations |
|
|
210.0 |
|
|
|
240.6 |
|
|
|
973.8 |
|
|
|
1,005.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
42.8 |
|
|
|
28.4 |
|
|
|
142.7 |
|
|
|
118.1 |
|
Other nonoperating (income)
and expenses, net |
|
|
(0.7 |
) |
|
|
3.9 |
|
|
|
(24.4 |
) |
|
|
(2.0 |
) |
Earnings from continuing operations before income tax expense |
|
|
167.9 |
|
|
|
208.3 |
|
|
|
855.5 |
|
|
|
889.3 |
|
Income tax expense |
|
|
11.6 |
|
|
|
25.3 |
|
|
|
153.2 |
|
|
|
168.2 |
|
Earnings from continuing
operations |
|
|
156.3 |
|
|
|
183.0 |
|
|
|
702.3 |
|
|
|
721.1 |
|
Earnings from discontinued
operations, net of income tax expense |
|
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
Consolidated net earnings |
|
|
156.8 |
|
|
|
183.0 |
|
|
|
702.8 |
|
|
|
721.1 |
|
Less: Net earnings
attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.1 |
|
Net Earnings Attributable to
Martin Marietta |
|
$ |
156.8 |
|
|
$ |
183.0 |
|
|
$ |
702.5 |
|
|
$ |
721.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share
attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic from continuing operations |
|
$ |
2.50 |
|
|
$ |
2.94 |
|
|
$ |
11.25 |
|
|
$ |
11.56 |
|
Basic from discontinued operations |
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
$ |
— |
|
Basic |
|
$ |
2.51 |
|
|
$ |
2.94 |
|
|
$ |
11.26 |
|
|
$ |
11.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted from continuing operations |
|
$ |
2.49 |
|
|
$ |
2.93 |
|
|
$ |
11.21 |
|
|
$ |
11.54 |
|
Diluted from discontinued operations |
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
$ |
— |
|
Diluted |
|
$ |
2.50 |
|
|
$ |
2.93 |
|
|
$ |
11.22 |
|
|
$ |
11.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
62.4 |
|
|
|
62.3 |
|
|
|
62.4 |
|
|
|
62.3 |
|
Diluted |
|
|
62.7 |
|
|
|
62.5 |
|
|
|
62.6 |
|
|
|
62.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share |
|
$ |
0.61 |
|
|
$ |
0.57 |
|
|
$ |
2.36 |
|
|
$ |
2.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
588.7 |
|
|
$ |
483.3 |
|
|
$ |
2,303.0 |
|
|
$ |
1,949.1 |
|
West Group |
|
|
834.1 |
|
|
|
633.9 |
|
|
|
2,812.3 |
|
|
|
2,538.1 |
|
Total Building Materials business |
|
|
1,422.8 |
|
|
|
1,117.2 |
|
|
|
5,115.3 |
|
|
|
4,487.2 |
|
Magnesia Specialties |
|
|
73.6 |
|
|
|
62.4 |
|
|
|
298.7 |
|
|
|
242.7 |
|
Total |
|
$ |
1,496.4 |
|
|
$ |
1,179.6 |
|
|
$ |
5,414.0 |
|
|
$ |
4,729.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
179.6 |
|
|
$ |
159.9 |
|
|
$ |
721.6 |
|
|
$ |
619.4 |
|
West Group |
|
|
140.3 |
|
|
|
138.9 |
|
|
|
518.3 |
|
|
|
540.4 |
|
Total Building Materials business |
|
|
319.9 |
|
|
|
298.8 |
|
|
|
1,239.9 |
|
|
|
1,159.8 |
|
Magnesia Specialties |
|
|
25.0 |
|
|
|
23.4 |
|
|
|
106.5 |
|
|
|
85.5 |
|
Corporate |
|
|
1.8 |
|
|
|
3.2 |
|
|
|
2.0 |
|
|
|
7.5 |
|
Total |
|
$ |
346.7 |
|
|
$ |
325.4 |
|
|
$ |
1,348.4 |
|
|
$ |
1,252.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
27.5 |
|
|
$ |
25.2 |
|
|
$ |
104.6 |
|
|
$ |
99.2 |
|
West Group |
|
|
41.5 |
|
|
|
35.5 |
|
|
|
142.6 |
|
|
|
135.7 |
|
Total Building Materials business |
|
|
69.0 |
|
|
|
60.7 |
|
|
|
247.2 |
|
|
|
234.9 |
|
Magnesia Specialties |
|
|
3.8 |
|
|
|
3.7 |
|
|
|
14.9 |
|
|
|
14.1 |
|
Corporate |
|
|
30.1 |
|
|
|
20.5 |
|
|
|
88.9 |
|
|
|
56.9 |
|
Total |
|
$ |
102.9 |
|
|
$ |
84.9 |
|
|
$ |
351.0 |
|
|
$ |
305.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
156.3 |
|
|
$ |
136.0 |
|
|
$ |
621.7 |
|
|
$ |
522.1 |
|
West Group |
|
|
101.1 |
|
|
|
103.1 |
|
|
|
385.2 |
|
|
|
471.3 |
|
Total Building Materials business |
|
|
257.4 |
|
|
|
239.1 |
|
|
|
1,006.9 |
|
|
|
993.4 |
|
Magnesia Specialties |
|
|
20.9 |
|
|
|
19.5 |
|
|
|
90.8 |
|
|
|
70.7 |
|
Corporate |
|
|
(68.3 |
) |
|
|
(18.0 |
) |
|
|
(123.9 |
) |
|
|
(58.7 |
) |
Total |
|
$ |
210.0 |
|
|
$ |
240.6 |
|
|
$ |
973.8 |
|
|
$ |
1,005.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights (Continued) |
|
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
Amount |
|
% ofRevenues |
|
|
Amount |
|
% ofRevenues |
|
|
Amount |
|
% ofRevenues |
|
|
Amount |
|
% ofRevenues |
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
827.0 |
|
|
|
|
|
$ |
677.2 |
|
|
|
|
|
$ |
3,058.5 |
|
|
|
|
|
$ |
2,769.3 |
|
|
|
|
Cement |
|
|
136.1 |
|
|
|
|
|
|
120.8 |
|
|
|
|
|
|
494.5 |
|
|
|
|
|
|
452.5 |
|
|
|
|
Ready mixed concrete |
|
|
321.3 |
|
|
|
|
|
|
262.7 |
|
|
|
|
|
|
1,145.8 |
|
|
|
|
|
|
952.1 |
|
|
|
|
Asphalt and paving |
|
|
170.7 |
|
|
|
|
|
|
76.8 |
|
|
|
|
|
|
514.2 |
|
|
|
|
|
|
331.7 |
|
|
|
|
Less: Interproduct sales |
|
|
(117.8 |
) |
|
|
|
|
|
(83.4 |
) |
|
|
|
|
|
(403.0 |
) |
|
|
|
|
|
(294.4 |
) |
|
|
|
Products and services |
|
|
1,337.3 |
|
|
|
|
|
|
1,054.1 |
|
|
|
|
|
|
4,810.0 |
|
|
|
|
|
|
4,211.2 |
|
|
|
|
Freight |
|
|
85.5 |
|
|
|
|
|
|
63.1 |
|
|
|
|
|
|
305.3 |
|
|
|
|
|
|
276.0 |
|
|
|
|
Total Building Materials business |
|
|
1,422.8 |
|
|
|
|
|
|
1,117.2 |
|
|
|
|
|
|
5,115.3 |
|
|
|
|
|
|
4,487.2 |
|
|
|
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
67.6 |
|
|
|
|
|
|
56.8 |
|
|
|
|
|
|
274.7 |
|
|
|
|
|
|
220.9 |
|
|
|
|
Freight |
|
|
6.0 |
|
|
|
|
|
|
5.6 |
|
|
|
|
|
|
24.0 |
|
|
|
|
|
|
21.8 |
|
|
|
|
Total Magnesia Specialties |
|
|
73.6 |
|
|
|
|
|
|
62.4 |
|
|
|
|
|
|
298.7 |
|
|
|
|
|
|
242.7 |
|
|
|
|
Total |
|
$ |
1,496.4 |
|
|
|
|
|
$ |
1,179.6 |
|
|
|
|
|
$ |
5,414.0 |
|
|
|
|
|
$ |
4,729.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
217.1 |
|
|
26.2 |
% |
|
$ |
208.2 |
|
|
30.7 |
% |
|
$ |
904.8 |
|
|
29.6 |
% |
|
$ |
848.5 |
|
|
30.6 |
% |
Cement |
|
|
55.8 |
|
|
41.0 |
% |
|
|
53.7 |
|
|
44.5 |
% |
|
|
157.0 |
|
|
31.8 |
% |
|
|
170.9 |
|
|
37.8 |
% |
Ready mixed concrete |
|
|
25.7 |
|
|
8.0 |
% |
|
|
22.9 |
|
|
8.7 |
% |
|
|
95.6 |
|
|
8.3 |
% |
|
|
79.6 |
|
|
8.4 |
% |
Asphalt and paving |
|
|
19.8 |
|
|
11.6 |
% |
|
|
13.9 |
|
|
18.1 |
% |
|
|
79.2 |
|
|
15.4 |
% |
|
|
60.4 |
|
|
18.2 |
% |
Products and services |
|
|
318.4 |
|
|
23.8 |
% |
|
|
298.7 |
|
|
28.3 |
% |
|
|
1,236.6 |
|
|
25.7 |
% |
|
|
1,159.4 |
|
|
27.5 |
% |
Freight |
|
|
1.6 |
|
NM |
|
|
|
0.1 |
|
NM |
|
|
|
3.3 |
|
NM |
|
|
|
0.4 |
|
NM |
|
Total Building Materials business |
|
|
320.0 |
|
|
22.5 |
% |
|
|
298.8 |
|
|
26.7 |
% |
|
|
1,239.9 |
|
|
24.2 |
% |
|
|
1,159.8 |
|
|
25.8 |
% |
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
25.9 |
|
|
38.4 |
% |
|
|
24.3 |
|
|
42.8 |
% |
|
|
110.4 |
|
|
40.2 |
% |
|
|
89.6 |
|
|
40.6 |
% |
Freight |
|
|
(1.0 |
) |
NM |
|
|
|
(0.9 |
) |
NM |
|
|
|
(3.9 |
) |
NM |
|
|
|
(4.1 |
) |
NM |
|
Total Magnesia Specialties |
|
|
24.9 |
|
|
34.0 |
% |
|
|
23.4 |
|
|
37.5 |
% |
|
|
106.5 |
|
|
35.6 |
% |
|
|
85.5 |
|
|
35.2 |
% |
Corporate |
|
|
1.8 |
|
NM |
|
|
|
3.2 |
|
NM |
|
|
|
2.0 |
|
NM |
|
|
|
7.5 |
|
NM |
|
Total |
|
$ |
346.7 |
|
|
23.2 |
% |
|
$ |
325.4 |
|
|
27.6 |
% |
|
$ |
1,348.4 |
|
|
24.9 |
% |
|
$ |
1,252.8 |
|
|
26.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
Balance Sheet Data |
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2021 |
|
|
2020 |
|
|
|
(Unaudited) |
|
|
(Audited) |
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
258.4 |
|
|
$ |
207.3 |
|
Restricted cash |
|
|
0.5 |
|
|
|
97.1 |
|
Accounts receivable, net |
|
|
774.0 |
|
|
|
575.1 |
|
Inventories, net |
|
|
752.6 |
|
|
|
709.0 |
|
Current assets held for sale |
|
|
102.2 |
|
|
|
9.8 |
|
Other current assets |
|
|
137.9 |
|
|
|
70.0 |
|
Property, plant and equipment, net |
|
|
6,338.0 |
|
|
|
5,242.3 |
|
Intangible assets, net |
|
|
4,559.4 |
|
|
|
2,922.0 |
|
Operating lease right-of-use assets, net |
|
|
426.7 |
|
|
|
453.0 |
|
Noncurrent assets held for sale |
|
|
616.9 |
|
|
|
— |
|
Other noncurrent assets |
|
|
426.4 |
|
|
|
295.2 |
|
Total assets |
|
$ |
14,393.0 |
|
|
$ |
10,580.8 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities held for sale |
|
|
7.5 |
|
|
|
0.3 |
|
Other current liabilities |
|
|
745.1 |
|
|
|
499.0 |
|
Long-term debt (excluding current maturities) |
|
|
5,100.8 |
|
|
|
2,625.8 |
|
Noncurrent liabilities held for sale |
|
|
53.5 |
|
|
|
— |
|
Other noncurrent liabilities |
|
|
1,948.5 |
|
|
|
1,562.4 |
|
Total equity |
|
|
6,537.6 |
|
|
|
5,893.3 |
|
Total liabilities and equity |
|
$ |
14,393.0 |
|
|
$ |
10,580.8 |
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Statements of Cash Flows |
|
(in millions) |
|
|
|
Twelve Months Ended |
|
|
|
December 31 |
|
|
|
2021 |
|
|
2020 |
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Consolidated net earnings |
|
$ |
702.8 |
|
|
$ |
721.1 |
|
Adjustments to reconcile consolidated net earnings to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
451.7 |
|
|
|
393.5 |
|
Stock-based compensation expense |
|
|
43.0 |
|
|
|
30.0 |
|
Gains on divestitures and sales of assets |
|
|
(21.7 |
) |
|
|
(73.0 |
) |
Deferred income taxes, net |
|
|
92.2 |
|
|
|
43.8 |
|
Other items, net |
|
|
(14.9 |
) |
|
|
2.1 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(194.4 |
) |
|
|
6.1 |
|
Inventories, net |
|
|
73.2 |
|
|
|
(19.3 |
) |
Accounts payable |
|
|
109.8 |
|
|
|
(34.0 |
) |
Other assets and liabilities, net |
|
|
(104.0 |
) |
|
|
(20.2 |
) |
Net Cash Provided by Operating
Activities |
|
|
1,137.7 |
|
|
|
1,050.1 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(423.1 |
) |
|
|
(359.7 |
) |
Acquisitions, net of cash acquired |
|
|
(3,109.2 |
) |
|
|
(65.1 |
) |
Proceeds from divestitures and sales of assets |
|
|
42.8 |
|
|
|
142.3 |
|
Investments in life insurance contracts, net |
|
|
14.9 |
|
|
|
(111.2 |
) |
Other investing activities, net |
|
|
— |
|
|
|
(16.0 |
) |
Net Cash Used for Investing
Activities |
|
|
(3,474.6 |
) |
|
|
(409.7 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Financing
Activities: |
|
|
|
|
|
|
|
|
Borrowings of long-term debt |
|
|
2,896.7 |
|
|
|
628.1 |
|
Repayments of long-term debt |
|
|
(420.1 |
) |
|
|
(777.1 |
) |
Debt issuance costs |
|
|
(7.5 |
) |
|
|
(2.0 |
) |
Payments on finance lease obligations |
|
|
(11.1 |
) |
|
|
(3.5 |
) |
Dividends paid |
|
|
(147.8 |
) |
|
|
(140.3 |
) |
Repurchases of common stock |
|
|
— |
|
|
|
(50.0 |
) |
Distributions to owners of noncontrolling interest |
|
|
(0.6 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
|
1.3 |
|
|
|
2.3 |
|
Shares withheld for employees’ income tax obligations |
|
|
(19.5 |
) |
|
|
(14.5 |
) |
Net Cash Provided by (Used
for) Financing Activities |
|
|
2,291.4 |
|
|
|
(357.0 |
) |
|
|
|
|
|
|
|
|
|
Net (Decrease) Increase in
Cash, Cash Equivalents and Restricted Cash |
|
|
(45.5 |
) |
|
|
283.4 |
|
Cash, Cash Equivalents and
Restricted Cash, beginning of year |
|
|
304.4 |
|
|
|
21.0 |
|
Cash, Cash Equivalents and
Restricted Cash, end of year |
|
$ |
258.9 |
|
|
$ |
304.4 |
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Operational Highlights |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2021 |
|
December 31, 2021 |
|
|
Volume |
|
Pricing |
|
Volume |
|
Pricing |
Volume/Pricing
Variance (1) |
|
|
|
|
|
|
|
|
East Group |
|
|
13.8 |
% |
|
|
(0.7 |
%) |
|
|
8.3 |
% |
|
|
1.6 |
% |
West Group |
|
|
30.5 |
% |
|
|
6.1 |
% |
|
|
7.2 |
% |
|
|
3.1 |
% |
Total aggregates operations
(2) |
|
|
19.7 |
% |
|
|
1.4 |
% |
|
|
7.9 |
% |
|
|
2.1 |
% |
Organic aggregates operations
(3) |
|
|
9.3 |
% |
|
|
2.8 |
% |
|
|
3.8 |
% |
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
Shipments
(tons in millions) |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
East Group |
|
|
33.3 |
|
|
|
29.2 |
|
|
|
128.5 |
|
|
|
118.7 |
|
West Group |
|
|
20.9 |
|
|
|
16.0 |
|
|
|
72.7 |
|
|
|
67.8 |
|
Total aggregates operations
(2) |
|
|
54.2 |
|
|
|
45.2 |
|
|
|
201.2 |
|
|
|
186.5 |
|
|
|
|
|
|
|
|
|
|
(1)
Volume/pricing variances reflect the percentage increase from the
comparable period in the prior year. |
(2) Total
aggregates operations include acquisitions from the date of
acquisition and divestitures through the date of disposal. |
(3) Organic
aggregates operations exclude volume and pricing data for
acquisitions that have not been included in prior-year operations
for the comparable period and divestitures. |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Shipments (in
millions) |
|
|
|
|
|
|
|
|
Aggregates tons - external
customers |
|
|
49.1 |
|
|
|
41.9 |
|
|
|
184.2 |
|
|
|
173.9 |
|
Internal aggregates tons used
in other product lines |
|
|
5.1 |
|
|
|
3.3 |
|
|
|
17.0 |
|
|
|
12.6 |
|
Total aggregates tons |
|
|
54.2 |
|
|
|
45.2 |
|
|
|
201.2 |
|
|
|
186.5 |
|
|
|
|
|
|
|
|
|
|
Cement tons - external
customers |
|
|
0.7 |
|
|
|
0.7 |
|
|
|
2.5 |
|
|
|
2.7 |
|
Internal cement tons used in
other product lines |
|
|
0.4 |
|
|
|
0.4 |
|
|
|
1.5 |
|
|
|
1.3 |
|
Total cement tons |
|
|
1.1 |
|
|
|
1.1 |
|
|
|
4.0 |
|
|
|
4.0 |
|
|
|
|
|
|
|
|
|
|
Ready mixed concrete - cubic
yards |
|
|
2.8 |
|
|
|
2.3 |
|
|
|
10.0 |
|
|
|
8.4 |
|
|
|
|
|
|
|
|
|
|
Asphalt tons - external
customers |
|
|
1.8 |
|
|
|
0.2 |
|
|
|
5.1 |
|
|
|
0.8 |
|
Internal asphalt tons used in
road paving business |
|
|
0.5 |
|
|
|
0.5 |
|
|
|
2.0 |
|
|
|
2.5 |
|
Total asphalt tons |
|
|
2.3 |
|
|
|
0.7 |
|
|
|
7.1 |
|
|
|
3.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit sales
price by product line (including internal sales): |
|
|
|
|
|
|
|
|
Aggregates (per ton) |
|
$ |
15.09 |
|
|
$ |
14.88 |
|
|
$ |
15.08 |
|
|
$ |
14.77 |
|
Cement (per ton) |
|
$ |
127.26 |
|
|
$ |
114.00 |
|
|
$ |
122.14 |
|
|
$ |
113.88 |
|
Ready mixed concrete (per
cubic yard) |
|
$ |
116.58 |
|
|
$ |
113.07 |
|
|
$ |
115.14 |
|
|
$ |
113.57 |
|
Asphalt (per ton) |
|
$ |
52.38 |
|
|
$ |
48.05 |
|
|
$ |
49.96 |
|
|
$ |
48.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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;
acquisition-related expenses; and the impact of selling acquired
inventory after its markup to fair value as part of acquisition
accounting (Adjusted EBITDA) is an indicator used by the Company
and investors to evaluate the Company’s operating performance from
period to period. Adjusted EBITDA is not defined by generally
accepted accounting principles and, as such, should not be
construed as an alternative to earnings from operations, net
earnings or operating cash flow. For further information on
Adjusted EBITDA, refer to the Company’s website at
www.martinmarietta.com.
A Reconciliation of Net Earnings from
Continuing Operations Attributable to Martin Marietta to Adjusted
EBITDA is as follows:
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
(in millions) |
|
Net earnings from continuing operations attributable to Martin
Marietta |
|
$ |
156.3 |
|
|
$ |
183.0 |
|
|
$ |
702.0 |
|
|
$ |
721.0 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
42.8 |
|
|
|
28.4 |
|
|
|
142.4 |
|
|
|
117.6 |
|
Income tax expense for controlling interests |
|
|
11.5 |
|
|
|
25.2 |
|
|
|
153.1 |
|
|
|
168.2 |
|
Depreciation, depletion and amortization expense and noncash
earnings/loss from nonconsolidated equity affiliates |
|
|
128.4 |
|
|
|
98.5 |
|
|
|
442.5 |
|
|
|
386.0 |
|
Acquisition-related expenses |
|
|
39.8 |
|
|
|
— |
|
|
|
57.9 |
|
|
|
— |
|
Impact of selling acquired inventory after markup to fair
value as part of acquisition accounting |
|
|
14.9 |
|
|
|
— |
|
|
|
30.6 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
393.7 |
|
|
$ |
335.1 |
|
|
$ |
1,528.5 |
|
|
$ |
1,392.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Reconciliation of the GAAP Measure to
2022 Adjusted EBITDA Guidance Range is as follows:
(in millions) |
|
Low Point of Range |
|
|
High Point of Range |
|
Net earnings from continuing operations attributable to Martin
Marietta |
|
$ |
805.0 |
|
|
$ |
915.0 |
|
Add back: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
170.0 |
|
|
|
165.0 |
|
Taxes on income |
|
|
225.0 |
|
|
|
235.0 |
|
Depreciation, depletion and amortization expense and
noncash earnings/loss from nonconsolidated equity
affiliates |
|
|
500.0 |
|
|
|
485.0 |
|
Adjusted EBITDA |
|
$ |
1,700.0 |
|
|
$ |
1,800.0 |
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
Adjusted gross profit and adjusted gross margin
represent non-GAAP financial measures and exclude the impact of
selling acquired inventory after its markup to fair value as part
of acquisition accounting. Management presents these measures for
investors and analysts to evaluate and forecast the Company’s
results, as the impact of selling acquired inventory after its
markup to fair value as part of acquisition accounting is
nonrecurring.
A Reconciliation of Gross Profit in
Accordance with GAAP to Adjusted Gross Profit is as
follows:
|
|
Three Months Ended |
|
|
Year ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
(in millions) |
|
Consolidated gross profit in accordance with GAAP |
|
$ |
346.7 |
|
|
$ |
325.4 |
|
|
$ |
1,348.4 |
|
|
$ |
1,252.8 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair
value as part of acquisition accounting |
|
|
14.9 |
|
|
|
— |
|
|
|
30.6 |
|
|
|
— |
|
Adjusted consolidated gross
profit |
|
$ |
361.6 |
|
|
$ |
325.4 |
|
|
$ |
1,379.0 |
|
|
$ |
1,252.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Reconciliation of Aggregates Product
Gross Profit in Accordance with GAAP to Adjusted Aggregates Product
Gross Profit and Adjusted Aggregates Product Gross Margin is as
follows:
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
(in millions) |
|
Aggregates product gross profit in accordance with GAAP |
|
$ |
217.1 |
|
|
$ |
208.2 |
|
|
$ |
904.8 |
|
|
$ |
848.5 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair
value as part of acquisition accounting |
|
|
13.4 |
|
|
|
— |
|
|
|
25.4 |
|
|
|
— |
|
Adjusted aggregates product
gross profit |
|
$ |
230.5 |
|
|
$ |
208.2 |
|
|
$ |
930.2 |
|
|
$ |
848.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates products and
services revenues |
|
$ |
827.0 |
|
|
$ |
677.2 |
|
|
$ |
3,058.5 |
|
|
$ |
2,769.3 |
|
Adjusted aggregates product
gross margin |
|
|
27.9 |
% |
|
|
30.7 |
% |
|
|
30.4 |
% |
|
|
30.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Reconciliation of Asphalt and Paving
Products and Services Gross Profit in Accordance with GAAP to
Adjusted Asphalt and Paving Products and Services Gross Profit and
Adjusted Asphalt and Paving Products and Services Gross Margin is
as follows:
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
(in millions) |
Asphalt and paving products
and services gross profit in accordance with GAAP |
|
$ |
19.8 |
|
|
$ |
13.9 |
|
|
$ |
79.2 |
|
|
$ |
60.4 |
|
Add back: |
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair
value as part of acquisition accounting |
|
|
1.5 |
|
|
|
— |
|
|
|
5.2 |
|
|
|
— |
|
Adjusted asphalt and paving
products and services gross profit |
|
$ |
21.3 |
|
|
$ |
13.9 |
|
|
$ |
84.4 |
|
|
$ |
60.4 |
|
|
|
|
|
|
|
|
|
|
Asphalt and paving products
and services revenues |
|
$ |
170.7 |
|
|
$ |
76.8 |
|
|
$ |
514.2 |
|
|
$ |
331.7 |
|
Adjusted asphalt and paving
products and services gross margin |
|
|
12.5 |
% |
|
|
18.1 |
% |
|
|
16.4 |
% |
|
|
18.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
Adjusted earnings from operations and adjusted
earnings per diluted share from continuing operations represent
non-GAAP financial measures and exclude the impact of selling
acquired inventory after its markup to fair value as part of
acquisition accounting and acquisition-related expenses. Management
presents these measures for investors and analysts to evaluate and
forecast the Company’s results, as the impact of selling acquired
inventory after its markup to fair values as part of acquisition
accounting and acquisition-related expenses are nonrecurring.
A Reconciliation of Consolidated
Earnings from Operations in Accordance with GAAP to Adjusted
Consolidated Earnings from Operations is as follows:
|
|
Three Months Ended |
|
|
Year ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
(in millions) |
|
Consolidated earnings from operations in accordance with GAAP |
|
$ |
210.0 |
|
|
$ |
240.6 |
|
|
$ |
973.8 |
|
|
$ |
1,005.4 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to fair
value as part of acquisition accounting |
|
|
14.9 |
|
|
|
— |
|
|
|
30.6 |
|
|
|
— |
|
Acquisition-related expenses |
|
|
39.8 |
|
|
|
— |
|
|
|
57.9 |
|
|
|
— |
|
Adjusted consolidated earnings
from operations |
|
$ |
264.7 |
|
|
$ |
240.6 |
|
|
$ |
1,062.3 |
|
|
$ |
1,005.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Reconciliation of Earnings Per
Diluted Share from Continuing Operations in Accordance with GAAP to
Adjusted Earnings Per Diluted Share from Continuing Operations is
as follows:
|
|
Three Months Ended |
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
|
Pretax |
|
|
Income Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
Per Share |
|
|
|
(in millions, except per share) |
|
Earnings per diluted share from continuing operations in
accordance with GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2.49 |
|
|
$ |
2.93 |
|
Impact of selling acquired inventory after its markup to fair
value as part of acquisition accounting |
|
$ |
14.9 |
|
|
$ |
(3.0 |
) |
|
$ |
11.9 |
|
|
|
0.18 |
|
|
|
— |
|
Acquisition-related expenses |
|
$ |
39.8 |
|
|
$ |
(9.9 |
) |
|
$ |
29.9 |
|
|
|
0.48 |
|
|
|
— |
|
Adjusted earnings per diluted
share from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3.15 |
|
|
$ |
2.93 |
|
|
|
Year Ended |
|
|
December 31, 2021 |
|
December 31, 2020 |
|
|
Pretax |
|
Income Tax |
|
After-Tax |
|
Per Share |
|
Per Share |
|
|
(in millions, except per share) |
|
|
Earnings per diluted share
from continuing operations in accordance with GAAP |
|
|
|
|
|
|
|
$ |
11.21 |
|
$ |
11.54 |
Impact of selling acquired inventory after its markup to fair value
as part of acquisition accounting |
|
$ |
30.6 |
|
$ |
(7.2 |
) |
|
$ |
23.4 |
|
0.37 |
|
— |
Acquisition-related expenses |
|
$ |
57.9 |
|
$ |
(14.2 |
) |
|
$ |
43.7 |
|
0.70 |
|
— |
Adjusted earnings per diluted
share from continuing operations |
|
|
|
|
|
|
|
$ |
12.28 |
|
$ |
11.54 |
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 |
|
|
December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
East Group -
Aggregates: |
|
|
|
|
Reported average selling
price |
|
$ |
15.37 |
|
|
$ |
15.48 |
|
Adjustment for unfavorable
impact of product, geographic and other mix |
|
|
0.53 |
|
|
|
Mix-adjusted average selling
price |
|
$ |
15.90 |
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
(0.7 |
%) |
|
|
Mix-adjusted ASP variance |
|
|
2.7 |
% |
|
|
|
|
|
|
|
West Group -
Aggregates: |
|
|
|
|
Reported average selling
price |
|
$ |
14.64 |
|
|
$ |
13.80 |
|
Adjustment for favorable
impact of product, geographic and other mix |
|
|
(0.48 |
) |
|
|
Mix-adjusted average selling
price |
|
$ |
14.16 |
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
6.1 |
% |
|
|
Mix-adjusted ASP variance |
|
|
2.6 |
% |
|
|
|
|
|
|
|
Cement: |
|
|
|
|
Reported average selling
price |
|
$ |
127.26 |
|
|
$ |
114.00 |
|
Adjustment for favorable
impact of product, geographic and other mix |
|
|
(2.03 |
) |
|
|
Mix-adjusted average selling
price |
|
$ |
125.23 |
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
11.6 |
% |
|
|
Mix-adjusted ASP variance |
|
|
9.9 |
% |
|
|
Martin Marietta Materials (NYSE:MLM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Martin Marietta Materials (NYSE:MLM)
Historical Stock Chart
From Jul 2023 to Jul 2024