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 second quarter
ended June 30, 2022.
Second-Quarter Highlights
(Highlights are for continuing operations)
|
|
Quarter Ended
June 30, |
(In millions, except per share) |
|
2022 |
|
2021 |
|
% Change |
Products and services revenues1 |
|
$ |
1,523.8 |
|
$ |
1,295.3 |
|
17.6% |
Building Materials business |
|
$ |
1,449.2 |
|
$ |
1,225.3 |
|
18.3% |
Magnesia Specialties |
|
$ |
74.6 |
|
$ |
70.0 |
|
6.6% |
Total
revenues2 |
|
$ |
1,641.7 |
|
$ |
1,377.9 |
|
19.1% |
Gross
profit |
|
$ |
425.2 |
|
$ |
385.1 |
|
10.4% |
Earnings
from operations |
|
$ |
478.6 |
|
$ |
307.5 |
|
55.6% |
Adjusted
earnings from operations3 |
|
$ |
329.8 |
|
$ |
324.4 |
|
1.7% |
Net earnings
from continuing operationsattributable to Martin Marietta |
|
$ |
353.2 |
|
$ |
225.8 |
|
56.4% |
Adjusted
EBITDA4 |
|
$ |
478.3 |
|
$ |
439.2 |
|
8.9% |
Earnings per
diluted share from continuing operations |
|
$ |
5.65 |
|
$ |
3.61 |
|
56.5% |
Adjusted
earnings per diluted share from continuing operations5 |
|
$ |
3.96 |
|
$ |
3.81 |
|
3.9% |
|
|
|
|
|
|
|
|
|
- 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.
- Total revenues include the sales of products and services to
customers (net of any discounts or allowances) and freight
revenues.
- Adjusted earnings from operations 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; acquisition
and integration expenses; and nonrecurring gains on divestitures
and is a non-GAAP financial measure. See Appendix to this earnings
release for a reconciliation to reported earnings from operations
under GAAP.
- Earnings from continuing operations before interest; income
taxes; depreciation, depletion and amortization; the earnings/loss
from nonconsolidated equity affiliates; acquisition and integration
expenses; 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 nonrecurring gains on divestitures,
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.
- Adjusted earnings per diluted share 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;
acquisition and integration expenses; and nonrecurring gains on
divestitures and is a non-GAAP financial measure. See Appendix to
this earnings release for a reconciliation to reported earnings per
diluted share under GAAP.
Ward Nye, Chairman and CEO of Martin Marietta,
stated, “I am pleased to report that Martin Marietta delivered
second-quarter records for aggregates and cement shipments,
revenues, gross profit, Adjusted EBITDA and Adjusted earnings per
diluted share. Our strong financial performance this quarter
demonstrates the successful execution of our strategic business
plan and also serves as a testament to the focus of our remarkable
team and resiliency of our aggregates-led business. Despite
increased inflationary pressure from rising input costs, and a
challenging overall macroeconomic and geopolitical operating
environment, our differentiated business model once again delivered
outstanding results as we capitalized on an attractive commercial
environment for our business and diligently executed our
value-over-volume commercial strategy. We expect to see a positive
inflection in the current price/cost dynamic, as well as record
second-half pricing growth rates which will facilitate attractive
margin expansion and accelerated unit profitability growth going
forward.
“In the second quarter, we closed two previously
announced transactions finalizing the divestiture of our Colorado
and Central Texas ready mixed concrete businesses and completing
the divestiture of certain West Coast cement and ready mixed
concrete operations. These portfolio optimizing transactions not
only improve our product mix and margin profile, but also
strengthen our balance sheet and the economic durability of our
company. Importantly, these transactions provide flexibility to
continue driving shareholder value by prudently investing in
strategic acquisitions and organic growth initiatives, returning
capital to shareholders and reducing our leverage to within our
targeted range.”
Mr. Nye concluded, “Martin Marietta is well
positioned to capitalize on strong demand trends across our
coast-to-coast geographic footprint as increased infrastructure
investment coupled with a recovery in light nonresidential
construction, large scale energy projects and domestic
manufacturing is expected to insulate product shipments from any
near-term, affordability-driven headwinds in residential end
markets. Our team remains steadfastly committed to employee health
and safety, commercial and operational excellence, sustainable
business practices and the execution of our SOAR 2025 initiatives
as we build and maintain the world’s safest, best performing and
most durable aggregates-led public company.”
Mr. Nye’s CEO Commentary and Market Perspective
can be found on the Investor Relations section of
the Company’s website.
Second-Quarter Financial and Operating
Results
(All financial and operating results are for
continuing operations and comparisons are versus the prior-year
second quarter, unless otherwise noted)
Building Materials Business
The Building Materials business generated record
products and services revenues of $1.45 billion in the second
quarter, an 18.3 percent increase, driven primarily by robust
pricing growth across all product lines coupled with contributions
from acquisitions. Product gross profit of $400.8 million, a
second-quarter record, increased 12.3 percent; however, higher
energy, internal freight, contract services and supplies costs
contributed to a gross margin decline of 140 basis points to 27.7
percent.
Aggregates
Second-quarter organic aggregates shipments
increased 1.8 percent due to healthy underlying public and private
product demand partially constrained by supply chain and
logistics-related bottlenecks. Organic pricing increased 8.8
percent, or 7.5 percent on a mix-adjusted basis, as the Company
began to benefit from price increases implemented on April 1, 2022.
Including acquired operations, total aggregates shipments and
pricing grew 9.3 percent and 8.4 percent, respectively.
By segment:
- East Group total shipments decreased 1.0 percent as strong
underlying demand was negatively impacted by unfavorable weather in
April coupled with rail and marine shipping challenges. Pricing
increased 7.6 percent.
- West Group total shipments improved 30.0 percent, driven
primarily by contributions from acquired operations and strong
Texas demand. Organic pricing increased 11.7 percent, or 8.3
percent on a mix-adjusted basis.
Second-quarter aggregates product gross profit
improved 13.2 percent to $309.0 million, while gross margin
declined 170 basis points to 32.3 percent primarily due to
significantly higher energy, contract services, supplies and
internal freight costs.
Cement
Cement shipments increased 19.8 percent to a new
quarterly record of 1.1 million tons, while pricing increased 14.7
percent, or 12.5 percent on a mix-adjusted basis, driven by
continued strong demand and tight cement supply in Texas. Cement
product gross profit grew to $51.1 million, an increase of 41.7
percent, and gross margins expanded 140 basis points to 32.4
percent, driven by volume and pricing gains but partially offset by
significant energy related headwinds and unplanned kiln outages at
both the Midlothian and Hunter plants.
Downstream businesses
On an organic basis, ready mix concrete
shipments and pricing increased 3.4 percent and 17.4 percent,
respectively, driven by strong demand in Dallas/Fort Worth, Austin
and San Antonio.
Ready mix concrete product revenues and gross
profit from continuing operations declined 15.8 percent and 25.1
percent, respectively, driven primarily by the divestiture of our
Colorado and Central Texas ready mix concrete businesses on April
1, but partially offset by acquired operations in Arizona.
Including contributions from the acquired West
Coast operations, total asphalt shipments and pricing increased
40.2 percent and 24.0 percent, respectively. However, rapid
acceleration of liquid asphalt, or bitumen, costs contributed to
the gross margin compression of 880 basis points in the second
quarter.
Magnesia Specialties Business
Magnesia Specialties product revenues increased
6.6 percent to $74.6 million, driven by continued strong demand for
magnesia-based chemical products. Product gross profit declined 7.6
percent to $25.8 million as higher energy costs pressured margins
in the quarter.
Consolidated
Other operating income, net, of $160.4 million
includes a $151.7 million gain from the Colorado and Central Texas
ready mix concrete divestiture. The prior-year second-quarter other
operating income, net, of $14.1 million included a $12.3 million
nonrecurring gain on the sale of the Company’s former
headquarters.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities for the
six months ended June 30, 2022 was $286.2 million compared with
$441.2 million for the prior-year period.
Cash paid for property, plant and equipment
additions for the six months ended June 30, 2022 was $220.7
million. For the full year, capital expenditures are expected to
range from $525 million to $550 million.
During the six months ended June 30, 2022, the
Company returned $127.0 million to shareholders through dividend
payments and share repurchases. As of June 30, 2022, 13.4 million
shares remained under the current repurchase authorization.
The Company had $772.1 million of cash and cash
equivalents on hand and nearly $1.2 billion of unused borrowing
capacity on its existing credit facilities as of June 30, 2022.
Full-Year Guidance
The Company has updated its full-year 2022
guidance to reflect expected second-half pricing cadence, ongoing
inflationary pressure and volume constraints driven by continued
supply chain and logistics challenges. This guidance excludes
businesses classified as discontinued operations.
2022 GUIDANCE |
|
(Dollars in Millions) |
|
Low * |
|
|
High * |
|
Consolidated |
|
|
|
|
|
|
Products and services revenues1 |
|
$ |
5,770 |
|
|
$ |
5,910 |
|
Gross
profit |
|
$ |
1,500 |
|
|
$ |
1,585 |
|
Selling,
general and administrative expenses (SG&A) |
|
$ |
390 |
|
|
$ |
400 |
|
Interest
expense |
|
$ |
160 |
|
|
$ |
165 |
|
Estimated
tax rate (excluding discrete events) |
|
|
21 |
% |
|
|
22 |
% |
Net earnings
from continuing operations attributable to Martin Marietta |
|
$ |
780 |
|
|
$ |
870 |
|
Adjusted
EBITDA2 |
|
$ |
1,670 |
|
|
$ |
1,750 |
|
Capital expenditures |
|
$ |
525 |
|
|
$ |
550 |
|
|
|
|
|
|
|
|
Building
Materials Business |
|
|
|
|
|
|
Aggregates |
|
|
|
|
|
|
Organic
volume % growth3 |
|
|
0 |
% |
|
|
2.5 |
% |
Total volume
% growth4 |
|
|
5.5 |
% |
|
|
8.0 |
% |
Organic
average selling price per ton (ASP) % growth5 |
|
|
10.0 |
% |
|
|
12.0 |
% |
Total ASP
growth6 |
|
|
10.0 |
% |
|
|
12.0 |
% |
Products and
services revenues |
|
$ |
3,565 |
|
|
$ |
3,640 |
|
Gross
profit |
|
$ |
1,025 |
|
|
$ |
1,080 |
|
|
|
|
|
|
|
|
Cement |
|
|
|
|
|
|
Products and
services revenues |
|
$ |
610 |
|
|
$ |
630 |
|
Gross
profit |
|
$ |
220 |
|
|
$ |
230 |
|
|
|
|
|
|
|
|
Ready Mixed
Concrete and Asphalt and Paving |
|
|
|
|
|
|
Products and
services revenues |
|
$ |
1,705 |
|
|
$ |
1,750 |
|
Gross
profit |
|
$ |
155 |
|
|
$ |
170 |
|
|
|
|
|
|
|
|
Magnesia
Specialties Business |
|
|
|
|
|
|
Products and
services revenues |
|
$ |
285 |
|
|
$ |
295 |
|
Gross profit |
|
$ |
100 |
|
|
$ |
105 |
|
* Guidance range represents the low end and high
end of the respective line items provided above.
- Consolidated products and services revenues exclude $395
million to $405 million related to estimated interproduct sales and
exclude freight revenues.
- 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.
- 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.
- 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.
- Organic ASP % growth range is for organic aggregates average
selling price and is in comparison with 2021 organic ASP of $15.21
per ton.
- 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 second-quarter 2022
earnings results on a conference call and an online webcast today
(July 28, 2022). The live broadcast of the Martin Marietta
conference call will begin at 11:00 a.m. Eastern Time and can be
accessed here:
https://register.vevent.com/register/BI300eee080db640a88ab0a64b6ef0d62f.
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 Q2 2022 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) 510-4736
Jennifer.Park@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, 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.
Second-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 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, California, North Carolina,
Georgia, Minnesota, Iowa, Florida, Indiana and Maryland; 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 gas 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 and Gulf of Mexico
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, notably related to the current conflict
between Russia and Ukraine, 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 duration, severity and impact of a resurgence 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, 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 a resurgence of COVID-19; the performance
of the United States economy; 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; 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; 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, 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
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(In Millions, Except
Per Share Data) |
|
Products and services revenues |
|
$ |
1,523.8 |
|
|
$ |
1,295.3 |
|
|
$ |
2,671.6 |
|
|
$ |
2,217.2 |
|
Freight
revenues |
|
|
117.9 |
|
|
|
82.6 |
|
|
|
200.9 |
|
|
|
143.1 |
|
Total Revenues |
|
|
1,641.7 |
|
|
|
1,377.9 |
|
|
|
2,872.5 |
|
|
|
2,360.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues - products and services |
|
|
1,095.6 |
|
|
|
910.0 |
|
|
|
2,087.5 |
|
|
|
1,656.0 |
|
Cost of
revenues - freight |
|
|
120.9 |
|
|
|
82.8 |
|
|
|
203.7 |
|
|
|
144.5 |
|
Total Cost of Revenues |
|
|
1,216.5 |
|
|
|
992.8 |
|
|
|
2,291.2 |
|
|
|
1,800.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
|
425.2 |
|
|
|
385.1 |
|
|
|
581.3 |
|
|
|
559.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general & administrative expenses |
|
|
104.1 |
|
|
|
82.4 |
|
|
|
201.2 |
|
|
|
162.2 |
|
Acquisition
and integration expenses |
|
|
2.9 |
|
|
|
9.3 |
|
|
|
4.3 |
|
|
|
10.6 |
|
Other
operating income, net |
|
|
(160.4 |
) |
|
|
(14.1 |
) |
|
|
(162.6 |
) |
|
|
(19.8 |
) |
Earnings from Operations |
|
|
478.6 |
|
|
|
307.5 |
|
|
|
538.4 |
|
|
|
406.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
43.1 |
|
|
|
28.1 |
|
|
|
83.6 |
|
|
|
55.6 |
|
Other
nonoperating income, net |
|
|
(22.0 |
) |
|
|
(8.7 |
) |
|
|
(32.9 |
) |
|
|
(18.2 |
) |
Earnings from continuing operations before income tax expense |
|
|
457.5 |
|
|
|
288.1 |
|
|
|
487.7 |
|
|
|
369.4 |
|
Income tax
expense |
|
|
104.4 |
|
|
|
62.3 |
|
|
|
110.2 |
|
|
|
78.1 |
|
Earnings from continuing operations |
|
|
353.1 |
|
|
|
225.8 |
|
|
|
377.5 |
|
|
|
291.3 |
|
Earnings
from discontinued operations, net of income tax expense |
|
|
13.3 |
|
|
|
— |
|
|
|
10.2 |
|
|
|
— |
|
Consolidated
net earnings |
|
|
366.4 |
|
|
|
225.8 |
|
|
|
387.7 |
|
|
|
291.3 |
|
Less: Net
(loss) earnings attributable to noncontrolling interests |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.2 |
) |
|
|
0.2 |
|
Net Earnings
Attributable to Martin Marietta Materials, Inc. |
|
$ |
366.5 |
|
|
$ |
225.8 |
|
|
$ |
387.9 |
|
|
$ |
291.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
Attributable to Martin Marietta Materials, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic from continuing operations |
|
$ |
5.66 |
|
|
$ |
3.62 |
|
|
$ |
6.06 |
|
|
$ |
4.66 |
|
Basic from discontinued operations |
|
|
0.21 |
|
|
|
— |
|
|
|
0.16 |
|
|
|
— |
|
|
|
$ |
5.87 |
|
|
$ |
3.62 |
|
|
$ |
6.22 |
|
|
$ |
4.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted from continuing operations |
|
$ |
5.65 |
|
|
$ |
3.61 |
|
|
$ |
6.04 |
|
|
$ |
4.65 |
|
Diluted from discontinued operations |
|
|
0.21 |
|
|
|
— |
|
|
|
0.16 |
|
|
|
— |
|
|
|
$ |
5.86 |
|
|
$ |
3.61 |
|
|
$ |
6.20 |
|
|
$ |
4.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
62.4 |
|
|
|
62.4 |
|
|
|
62.4 |
|
|
|
62.4 |
|
Diluted |
|
|
62.5 |
|
|
|
62.5 |
|
|
|
62.6 |
|
|
|
62.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
Per Common Share |
|
$ |
0.61 |
|
|
$ |
0.57 |
|
|
$ |
1.22 |
|
|
$ |
1.14 |
|
MARTIN
MARIETTA MATERIALS, INC. |
|
Unaudited
Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in
Millions) |
|
Total
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
674.5 |
|
|
$ |
635.3 |
|
|
$ |
1,093.3 |
|
|
$ |
1,030.2 |
|
West Group |
|
|
885.5 |
|
|
|
666.8 |
|
|
|
1,620.5 |
|
|
|
1,183.4 |
|
Total Building Materials business |
|
|
1,560.0 |
|
|
|
1,302.1 |
|
|
|
2,713.8 |
|
|
|
2,213.6 |
|
Magnesia Specialties |
|
|
81.7 |
|
|
|
75.8 |
|
|
|
158.7 |
|
|
|
146.7 |
|
Total |
|
$ |
1,641.7 |
|
|
$ |
1,377.9 |
|
|
$ |
2,872.5 |
|
|
$ |
2,360.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit: |
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
239.7 |
|
|
$ |
224.3 |
|
|
$ |
295.5 |
|
|
$ |
310.4 |
|
West Group |
|
|
159.4 |
|
|
|
133.3 |
|
|
|
242.0 |
|
|
|
195.2 |
|
Total Building Materials business |
|
|
399.1 |
|
|
|
357.6 |
|
|
|
537.5 |
|
|
|
505.6 |
|
Magnesia Specialties |
|
|
24.5 |
|
|
|
27.0 |
|
|
|
50.2 |
|
|
|
54.4 |
|
Corporate |
|
|
1.6 |
|
|
|
0.5 |
|
|
|
(6.4 |
) |
|
|
(0.2 |
) |
Total |
|
$ |
425.2 |
|
|
$ |
385.1 |
|
|
$ |
581.3 |
|
|
$ |
559.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
28.7 |
|
|
$ |
26.3 |
|
|
$ |
57.5 |
|
|
$ |
50.5 |
|
West Group |
|
|
41.7 |
|
|
|
33.6 |
|
|
|
83.0 |
|
|
|
66.9 |
|
Total Building Materials business |
|
|
70.4 |
|
|
|
59.9 |
|
|
|
140.5 |
|
|
|
117.4 |
|
Magnesia Specialties |
|
|
4.0 |
|
|
|
3.7 |
|
|
|
8.0 |
|
|
|
7.4 |
|
Corporate |
|
|
29.7 |
|
|
|
18.8 |
|
|
|
52.7 |
|
|
|
37.4 |
|
Total |
|
$ |
104.1 |
|
|
$ |
82.4 |
|
|
$ |
201.2 |
|
|
$ |
162.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(Loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
210.6 |
|
|
$ |
197.8 |
|
|
$ |
238.5 |
|
|
$ |
259.5 |
|
West Group(1) |
|
|
274.5 |
|
|
|
101.8 |
|
|
|
317.6 |
|
|
|
133.6 |
|
Total Building Materials business |
|
|
485.1 |
|
|
|
299.6 |
|
|
|
556.1 |
|
|
|
393.1 |
|
Magnesia Specialties |
|
|
20.3 |
|
|
|
23.1 |
|
|
|
41.8 |
|
|
|
46.7 |
|
Corporate |
|
|
(26.8 |
) |
|
|
(15.2 |
) |
|
|
(59.5 |
) |
|
|
(33.0 |
) |
Total |
|
$ |
478.6 |
|
|
$ |
307.5 |
|
|
$ |
538.4 |
|
|
$ |
406.8 |
|
(1) Includes $151.7 million of nonrecurring gains
on divestitures in the second-quarter of 2022.
MARTIN
MARIETTA MATERIALS, INC. |
Unaudited
Financial Highlights (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
Amount |
|
|
% of Revenues |
|
Amount |
|
|
% of Revenues |
|
Amount |
|
|
% of Revenues |
|
Amount |
|
|
% of Revenues |
|
|
(Dollars in
Millions) |
Total
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
955.2 |
|
|
|
|
$ |
801.8 |
|
|
|
|
$ |
1,641.1 |
|
|
|
|
$ |
1,374.4 |
|
|
|
Cement |
|
|
157.9 |
|
|
|
|
|
116.5 |
|
|
|
|
|
292.2 |
|
|
|
|
|
226.1 |
|
|
|
Ready mixed concrete |
|
|
226.1 |
|
|
|
|
|
268.4 |
|
|
|
|
|
516.2 |
|
|
|
|
|
503.7 |
|
|
|
Asphalt and paving |
|
|
212.3 |
|
|
|
|
|
135.3 |
|
|
|
|
|
267.1 |
|
|
|
|
|
147.6 |
|
|
|
Less: Interproduct sales |
|
|
(102.3 |
) |
|
|
|
|
(96.7 |
) |
|
|
|
|
(190.4 |
) |
|
|
|
|
(169.8 |
) |
|
|
Products and services |
|
|
1,449.2 |
|
|
|
|
|
1,225.3 |
|
|
|
|
|
2,526.2 |
|
|
|
|
|
2,082.0 |
|
|
|
Freight |
|
|
110.8 |
|
|
|
|
|
76.8 |
|
|
|
|
|
187.6 |
|
|
|
|
|
131.6 |
|
|
|
Total Building Materials business |
|
|
1,560.0 |
|
|
|
|
|
1,302.1 |
|
|
|
|
|
2,713.8 |
|
|
|
|
|
2,213.6 |
|
|
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
74.6 |
|
|
|
|
|
70.0 |
|
|
|
|
|
145.4 |
|
|
|
|
|
135.2 |
|
|
|
Freight |
|
|
7.1 |
|
|
|
|
|
5.8 |
|
|
|
|
|
13.3 |
|
|
|
|
|
11.5 |
|
|
|
Total Magnesia Specialties |
|
|
81.7 |
|
|
|
|
|
75.8 |
|
|
|
|
|
158.7 |
|
|
|
|
|
146.7 |
|
|
|
Consolidated
total revenues |
|
$ |
1,641.7 |
|
|
|
|
$ |
1,377.9 |
|
|
|
|
$ |
2,872.5 |
|
|
|
|
$ |
2,360.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
309.0 |
|
|
32.3 |
% |
|
$ |
273.0 |
|
|
34.0 |
% |
|
$ |
410.9 |
|
|
25.0 |
% |
|
$ |
394.7 |
|
|
28.7 |
% |
Cement |
|
|
51.1 |
|
|
32.4 |
% |
|
|
36.1 |
|
|
31.0 |
% |
|
|
78.5 |
|
|
26.9 |
% |
|
|
51.4 |
|
|
22.7 |
% |
Ready mixed concrete |
|
|
14.3 |
|
|
6.3 |
% |
|
|
19.1 |
|
|
7.1 |
% |
|
|
35.4 |
|
|
6.9 |
% |
|
|
38.6 |
|
|
7.7 |
% |
Asphalt and paving |
|
|
26.4 |
|
|
12.4 |
% |
|
|
28.7 |
|
|
21.2 |
% |
|
|
13.1 |
|
|
4.9 |
% |
|
|
20.4 |
|
|
13.9 |
% |
Subtotal |
|
|
400.8 |
|
|
27.7 |
% |
|
|
356.9 |
|
|
29.1 |
% |
|
|
537.9 |
|
|
21.3 |
% |
|
|
505.1 |
|
|
24.3 |
% |
Freight |
|
|
(1.7 |
) |
|
NM |
|
|
0.7 |
|
|
NM |
|
|
(0.4 |
) |
|
NM |
|
|
0.5 |
|
|
NM |
Total Building Materials business |
|
|
399.1 |
|
|
25.6 |
% |
|
|
357.6 |
|
|
27.5 |
% |
|
|
537.5 |
|
|
19.8 |
% |
|
|
505.6 |
|
|
22.8 |
% |
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
25.8 |
|
|
34.6 |
% |
|
|
27.9 |
|
|
39.9 |
% |
|
|
52.6 |
|
|
36.2 |
% |
|
|
56.3 |
|
|
41.7 |
% |
Freight |
|
|
(1.3 |
) |
|
NM |
|
|
(0.9 |
) |
|
NM |
|
|
(2.4 |
) |
|
NM |
|
|
(1.9 |
) |
|
NM |
Total Magnesia Specialties |
|
|
24.5 |
|
|
30.0 |
% |
|
|
27.0 |
|
|
35.6 |
% |
|
|
50.2 |
|
|
31.6 |
% |
|
|
54.4 |
|
|
37.1 |
% |
Corporate |
|
|
1.6 |
|
|
NM |
|
|
0.5 |
|
|
NM |
|
|
(6.4 |
) |
|
NM |
|
|
(0.2 |
) |
|
NM |
Consolidated
gross profit |
|
$ |
425.2 |
|
|
25.9 |
% |
|
$ |
385.1 |
|
|
27.9 |
% |
|
$ |
581.3 |
|
|
20.2 |
% |
|
$ |
559.8 |
|
|
23.7 |
% |
MARTIN
MARIETTA MATERIALS, INC. |
|
Balance
Sheet Data |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
Unaudited |
|
|
Audited |
|
|
|
(In millions) |
|
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
772.1 |
|
|
$ |
258.4 |
|
Restricted cash |
|
|
— |
|
|
|
0.5 |
|
Accounts receivable, net |
|
|
1,026.6 |
|
|
|
774.0 |
|
Inventories, net |
|
|
835.2 |
|
|
|
752.6 |
|
Current assets held for sale |
|
|
57.5 |
|
|
|
102.2 |
|
Other current assets |
|
|
68.9 |
|
|
|
137.9 |
|
Property, plant and equipment, net |
|
|
6,164.3 |
|
|
|
6,338.0 |
|
Intangible assets, net |
|
|
4,444.1 |
|
|
|
4,559.4 |
|
Operating lease right-of-use assets, net |
|
|
402.3 |
|
|
|
426.7 |
|
Noncurrent assets held for sale |
|
|
388.2 |
|
|
|
616.9 |
|
Other noncurrent assets |
|
|
383.6 |
|
|
|
426.4 |
|
Total assets |
|
$ |
14,542.8 |
|
|
$ |
14,393.0 |
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY |
|
|
|
|
|
|
Current liabilities held for sale |
|
$ |
5.2 |
|
|
$ |
7.5 |
|
Other current liabilities |
|
|
756.2 |
|
|
|
745.1 |
|
Long-term debt (excluding current maturities) |
|
|
5,044.3 |
|
|
|
5,100.8 |
|
Noncurrent liabilities held for sale |
|
|
29.1 |
|
|
|
53.5 |
|
Other noncurrent liabilities |
|
|
1,935.9 |
|
|
|
1,948.5 |
|
Total equity |
|
|
6,772.1 |
|
|
|
6,537.6 |
|
Total liabilities and equity |
|
$ |
14,542.8 |
|
|
$ |
14,393.0 |
|
MARTIN MARIETTA MATERIALS, INC.
Unaudited Statements of Cash Flows
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in
Millions) |
|
Cash Flows
from Operating Activities: |
|
|
|
|
|
|
Consolidated net earnings |
|
$ |
387.7 |
|
|
$ |
291.3 |
|
Adjustments
to reconcile consolidated net earnings to net cashprovided by
operating activities: |
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
256.6 |
|
|
|
206.5 |
|
Stock-based compensation expense |
|
|
24.5 |
|
|
|
20.8 |
|
Gain on divestitures, sales of assets and extinguishment of
debt |
|
|
(173.9 |
) |
|
|
(19.2 |
) |
Deferred income taxes, net |
|
|
(32.7 |
) |
|
|
3.4 |
|
Other items, net |
|
|
(3.4 |
) |
|
|
(7.3 |
) |
Changes in operating assets and liabilities, net of effects
ofacquisitions and divestitures: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
(252.6 |
) |
|
|
(137.8 |
) |
Inventories, net |
|
|
(79.5 |
) |
|
|
36.9 |
|
Accounts payable |
|
|
68.5 |
|
|
|
54.7 |
|
Other assets and liabilities, net |
|
|
91.0 |
|
|
|
(8.1 |
) |
Net Cash
Provided by Operating Activities |
|
|
286.2 |
|
|
|
441.2 |
|
|
|
|
|
|
|
|
Cash Flows
from Investing Activities: |
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(220.7 |
) |
|
|
(213.0 |
) |
Acquisitions, net of cash acquired |
|
|
11.0 |
|
|
|
(653.2 |
) |
Proceeds from divestitures and sales of assets |
|
|
644.4 |
|
|
|
31.9 |
|
Investments in life insurance contracts, net |
|
|
1.8 |
|
|
|
11.2 |
|
Other investing activities, net |
|
|
(3.0 |
) |
|
|
— |
|
Net Cash
Provided by (Used for) Investing Activities |
|
|
433.5 |
|
|
|
(823.1 |
) |
|
|
|
|
|
|
|
Cash Flows
from Financing Activities: |
|
|
|
|
|
|
Borrowings of debt |
|
|
— |
|
|
|
400.0 |
|
Repayments of debt |
|
|
(47.7 |
) |
|
|
(160.0 |
) |
Payments on finance lease obligations |
|
|
(7.3 |
) |
|
|
(4.3 |
) |
Debt issuance costs |
|
|
— |
|
|
|
(0.3 |
) |
Distributions to owners of noncontrolling interest |
|
|
— |
|
|
|
(0.5 |
) |
Repurchases of common stock |
|
|
(50.0 |
) |
|
|
— |
|
Dividends paid |
|
|
(77.0 |
) |
|
|
(71.8 |
) |
Proceeds from exercise of stock options |
|
|
0.6 |
|
|
|
0.8 |
|
Shares withheld for employees' income tax obligations |
|
|
(25.1 |
) |
|
|
(16.1 |
) |
Net Cash
(Used for) Provided by Financing Activities |
|
|
(206.5 |
) |
|
|
147.8 |
|
Net Increase
(Decrease) in Cash, Cash Equivalents and Restricted Cash |
|
|
513.2 |
|
|
|
(234.1 |
) |
Cash, Cash
Equivalents and Restricted Cash, beginning of period |
|
|
258.9 |
|
|
|
304.4 |
|
Cash, Cash
Equivalents and Restricted Cash, end of period |
|
$ |
772.1 |
|
|
$ |
70.3 |
|
MARTIN MARIETTA MATERIALS, INC.
Unaudited Operational Highlights
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
|
|
June 30, 2022 |
|
|
June 30, 2022 |
|
|
|
Volume |
|
|
Pricing |
|
|
Volume |
|
|
Pricing |
|
Volume/Pricing Variance(1) |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
|
(1.0 |
)% |
|
|
7.6 |
% |
|
|
(0.1 |
)% |
|
|
6.6 |
% |
West Group |
|
|
30.0 |
% |
|
|
11.6 |
% |
|
|
31.2 |
% |
|
|
10.4 |
% |
Total
aggregates operations(2) |
|
|
9.3 |
% |
|
|
8.4 |
% |
|
|
11.0 |
% |
|
|
7.2 |
% |
Organic
aggregates operations(3) |
|
|
1.8 |
% |
|
|
8.8 |
% |
|
|
2.4 |
% |
|
|
7.7 |
% |
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Tons in
Millions) |
|
|
(Tons in
Millions) |
|
Shipments |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
|
35.0 |
|
|
|
35.4 |
|
|
|
58.0 |
|
|
|
58.1 |
|
West Group |
|
|
22.8 |
|
|
|
17.5 |
|
|
|
41.9 |
|
|
|
31.9 |
|
Total
aggregates operations(2) |
|
|
57.8 |
|
|
|
52.9 |
|
|
|
99.9 |
|
|
|
90.0 |
|
(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 |
|
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|
Shipments(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates tons - external customers |
|
|
53.5 |
|
|
48.8 |
|
|
|
|
92.1 |
|
|
83.3 |
|
|
|
Internal
aggregates tons used in other product lines |
|
|
4.3 |
|
|
4.1 |
|
|
|
|
7.8 |
|
|
6.7 |
|
|
|
Total aggregates tons |
|
|
57.8 |
|
|
52.9 |
|
9.3 |
% |
|
99.9 |
|
|
90.0 |
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement tons
- external customers |
|
|
0.8 |
|
|
0.5 |
|
|
|
|
1.4 |
|
|
1.2 |
|
|
|
Internal
cement tons used in other product lines |
|
|
0.3 |
|
|
0.4 |
|
|
|
|
0.7 |
|
|
0.7 |
|
|
|
Total cement
tons |
|
|
1.1 |
|
|
0.9 |
|
19.8 |
% |
|
2.1 |
|
|
1.9 |
|
14.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready mixed
concrete - cubic yards |
|
|
1.8 |
|
|
2.3 |
|
(22.6 |
)% |
|
4.2 |
|
|
4.4 |
|
(4.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asphalt tons
- external customers |
|
|
1.9 |
|
|
1.2 |
|
|
|
|
2.6 |
|
|
1.3 |
|
|
|
Internal
asphalt tons used in road paving business |
|
|
0.7 |
|
|
0.6 |
|
|
|
|
0.7 |
|
|
0.6 |
|
|
|
Total
asphalt tons |
|
|
2.6 |
|
|
1.8 |
|
40.2 |
% |
|
3.3 |
|
|
1.9 |
|
67.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit sales price by product line (including
internal sales): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates
(per ton) |
|
$ |
16.34 |
|
$ |
15.07 |
|
8.4 |
% |
$ |
16.27 |
|
$ |
15.17 |
|
7.2 |
% |
Cement (per
ton) |
|
$ |
140.00 |
|
$ |
122.11 |
|
14.7 |
% |
$ |
134.79 |
|
$ |
118.80 |
|
13.5 |
% |
Ready mixed
concrete (per cubic yard) |
|
$ |
124.51 |
|
$ |
114.27 |
|
9.0 |
% |
$ |
122.34 |
|
$ |
113.25 |
|
8.0 |
% |
Asphalt (per
ton) |
|
$ |
60.54 |
|
$ |
48.83 |
|
24.0 |
% |
$ |
60.93 |
|
$ |
48.85 |
|
24.7 |
% |
MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures
Adjusted earnings from operations represents a
non-GAAP financial measure and excludes acquisition and integration
expenses; the impact of selling acquired inventory after its markup
to fair value as part of acquisition accounting; and nonrecurring
gains on divestitures. Management presents this measure for
investors and analysts to evaluate and forecast the Company’s
results, as the impacts of acquisition and integration expenses,
selling acquired inventory after its markup to fair value as part
of acquisition accounting and gains on divestitures are
nonrecurring.
Reconciliation of Consolidated Earnings
from Operations in Accordance with GAAP to Adjusted Consolidated
Earnings from Operations
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in
Millions) |
|
Consolidated earnings from operations inaccordance with GAAP |
|
$ |
478.6 |
|
|
$ |
307.5 |
|
|
$ |
538.4 |
|
|
$ |
406.8 |
|
Add back
(Deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and integration expenses |
|
|
2.9 |
|
|
|
9.3 |
|
|
|
4.3 |
|
|
|
10.6 |
|
Impact of selling acquired inventory after itsmarkup to fair value
as part of acquisitionaccounting |
|
|
— |
|
|
|
7.6 |
|
|
|
— |
|
|
|
7.6 |
|
Gain on divestiture |
|
|
(151.7 |
) |
|
|
— |
|
|
|
(151.7 |
) |
|
|
— |
|
Adjusted
consolidated earnings from operations |
|
$ |
329.8 |
|
|
$ |
324.4 |
|
|
$ |
391.0 |
|
|
$ |
425.0 |
|
MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures (Continued)
Earnings from continuing operations before
interest; income taxes; depreciation, depletion and amortization
expense; the earnings/loss from nonconsolidated equity affiliates;
acquisition and integration expenses; 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
nonrecurring gains on divestitures (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 |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in
Millions) |
|
Net earnings from continuing operationsattributable to Martin
Marietta |
|
$ |
353.2 |
|
|
$ |
225.8 |
|
|
$ |
377.7 |
|
|
$ |
291.1 |
|
Add back
(Deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
42.2 |
|
|
|
28.2 |
|
|
|
82.7 |
|
|
|
55.5 |
|
Income tax expense for controlling interests |
|
|
104.4 |
|
|
|
62.2 |
|
|
|
110.2 |
|
|
|
78.1 |
|
Depreciation, depletion and amortization andearnings/loss from
nonconsolidated equity affiliates |
|
|
127.3 |
|
|
|
106.1 |
|
|
|
252.3 |
|
|
|
201.9 |
|
Acquisition and integration expenses |
|
|
2.9 |
|
|
|
9.3 |
|
|
|
4.3 |
|
|
|
10.6 |
|
Impact of selling acquired inventory after markupto fair value as a
part of acquisition accounting |
|
|
— |
|
|
|
7.6 |
|
|
|
— |
|
|
|
7.6 |
|
Gain on divestiture |
|
|
(151.7 |
) |
|
|
— |
|
|
|
(151.7 |
) |
|
|
— |
|
Adjusted
EBITDA |
|
$ |
478.3 |
|
|
$ |
439.2 |
|
|
$ |
675.5 |
|
|
$ |
644.8 |
|
Reconciliation of the GAAP Measure to 2022
Adjusted EBITDA Guidance Range
|
|
Low Point of Range |
|
|
High Point of Range |
|
|
|
(Dollars in
Millions) |
|
Net earnings from continuing operations attributable toMartin
Marietta(1) |
|
$ |
780.0 |
|
|
$ |
870.0 |
|
Add
back: |
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
160.0 |
|
|
|
165.0 |
|
Income tax expense for controlling interests |
|
|
225.0 |
|
|
|
200.0 |
|
Depreciation, depletion and amortization expense andearnings/loss
from nonconsolidated equity affiliates |
|
|
505.0 |
|
|
|
515.0 |
|
Adjusted
EBITDA |
|
$ |
1,670.0 |
|
|
$ |
1,750.0 |
|
(1) Excludes nonrecurring gains on
divestitures.
MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures (Continued)
Adjusted earnings per diluted share represents a
non-GAAP financial measure and excludes acquisition and integration
expenses; the impact of selling acquired inventory after its markup
to fair value as part of acquisition accounting; and nonrecurring
gains on divestitures. Management presents this measure for
investors and analysts to evaluate and forecast the Company’s
results, as the impacts of acquisition and integration expenses,
selling acquired inventory after its markup to fair value as part
of acquisition accounting and gains on divestitures are
nonrecurring.
Reconciliation of Earnings Per Diluted
Share in Accordance with GAAP to Adjusted Earnings Per Diluted
Share
|
|
Three Months Ended June 30, 2022 |
|
|
|
Pretax |
|
|
Income Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
|
(In Millions, Except per Share) |
|
Earnings per diluted share from continuingoperations in accordance
with GAAP |
|
|
|
|
|
|
|
|
|
|
$ |
5.65 |
|
Impact of acquisition and integration expenses |
|
$ |
2.9 |
|
|
$ |
(0.6 |
) |
|
$ |
2.3 |
|
|
|
0.04 |
|
Impact of gain on divestiture |
|
$ |
(151.7 |
) |
|
$ |
43.6 |
|
|
$ |
(108.1 |
) |
|
|
(1.73 |
) |
Adjusted earnings per diluted share fromcontinuing operations |
|
|
|
|
|
|
|
|
|
|
$ |
3.96 |
|
|
|
Three Months Ended June 30, 2021 |
|
|
|
Pretax |
|
|
Income Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
|
(In Millions, Except per Share) |
|
Earnings per diluted share from continuingoperations in accordance
with GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3.61 |
|
Impact of acquisition and integration expenses |
|
$ |
9.3 |
|
|
$ |
(2.2 |
) |
|
$ |
7.1 |
|
|
|
0.11 |
|
Impact of selling acquired inventory after itsmarkup to fair value
as part of acquisitionaccounting |
|
$ |
7.6 |
|
|
$ |
(1.9 |
) |
|
$ |
5.7 |
|
|
|
0.09 |
|
Adjusted earnings per diluted share fromcontinuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3.81 |
|
|
|
Six Months Ended June 30, 2022 |
|
|
|
Pretax |
|
|
Income Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
|
(In Millions, Except per Share) |
|
Earnings per diluted share from continuingoperations in accordance
with GAAP |
|
|
|
|
|
|
|
|
|
|
$ |
6.04 |
|
Impact of acquisition and integration expenses |
|
$ |
4.3 |
|
|
$ |
(0.9 |
) |
|
$ |
3.4 |
|
|
|
0.05 |
|
Impact of gain on divestiture |
|
$ |
(151.7 |
) |
|
$ |
43.6 |
|
|
$ |
(108.1 |
) |
|
|
(1.73 |
) |
Adjusted earnings per diluted share fromcontinuing operations |
|
|
|
|
|
|
|
|
|
|
$ |
4.36 |
|
|
|
Six Months Ended June 30, 2021 |
|
|
|
Pretax |
|
|
Income Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
|
(In Millions, Except per Share) |
|
Earnings per diluted share from continuingoperations in accordance
with GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4.65 |
|
Impact of acquisition and integration expenses |
|
$ |
10.6 |
|
|
$ |
(2.4 |
) |
|
$ |
8.2 |
|
|
|
0.13 |
|
Impact of selling acquired inventory after itsmarkup to fair value
as part of acquisitionaccounting |
|
$ |
7.6 |
|
|
$ |
(1.9 |
) |
|
$ |
5.7 |
|
|
|
0.09 |
|
Adjusted earnings per diluted share fromcontinuing operations |
|
|
|
|
|
|
|
|
|
|
$ |
4.87 |
|
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 |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Organic East Group - Aggregates: |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price |
|
$ |
16.79 |
|
|
$ |
15.59 |
|
|
$ |
16.91 |
|
|
$ |
15.86 |
|
Adjustment
for favorable impact of product, geographicand other mix |
|
|
(0.08 |
) |
|
|
|
|
|
(0.06 |
) |
|
|
|
Mix-adjusted
ASP |
|
$ |
16.71 |
|
|
|
|
|
$ |
16.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
average selling price variance |
|
|
7.6 |
% |
|
|
|
|
|
6.6 |
% |
|
|
|
Mix-adjusted
ASP variance |
|
|
7.1 |
% |
|
|
|
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic West Group - Aggregates: |
|
|
|
|
|
|
|
|
|
|
|
|
Reported
average selling price |
|
$ |
15.67 |
|
|
$ |
14.03 |
|
|
$ |
15.37 |
|
|
$ |
13.93 |
|
Adjustment
for favorable impact of product,geographic and other mix |
|
|
(0.47 |
) |
|
|
|
|
|
(0.45 |
) |
|
|
|
Mix-adjusted
ASP |
|
$ |
15.20 |
|
|
|
|
|
$ |
14.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
average selling price variance |
|
|
11.7 |
% |
|
|
|
|
|
10.3 |
% |
|
|
|
Mix-adjusted
ASP variance |
|
|
8.3 |
% |
|
|
|
|
|
7.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Organic Aggregates: |
|
|
|
|
|
|
|
|
|
|
|
|
Reported
average selling price |
|
$ |
16.40 |
|
|
$ |
15.07 |
|
|
$ |
16.34 |
|
|
$ |
15.17 |
|
Adjustment
for favorable impact of product,geographic and other mix |
|
|
(0.20 |
) |
|
|
|
|
|
(0.18 |
) |
|
|
|
Mix-adjusted
ASP |
|
$ |
16.20 |
|
|
|
|
|
$ |
16.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
average selling price variance |
|
|
8.8 |
% |
|
|
|
|
|
7.7 |
% |
|
|
|
Mix-adjusted
ASP variance |
|
|
7.5 |
% |
|
|
|
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement: |
|
|
|
|
|
|
|
|
|
|
|
|
Reported
average selling price |
|
$ |
140.00 |
|
|
$ |
122.11 |
|
|
$ |
134.79 |
|
|
$ |
118.80 |
|
Adjustment
for favorable impact of product,geographic and other mix |
|
|
(2.67 |
) |
|
|
|
|
|
(2.04 |
) |
|
|
|
Mix-adjusted
ASP |
|
$ |
137.33 |
|
|
|
|
|
$ |
132.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
average selling price variance |
|
|
14.7 |
% |
|
|
|
|
|
13.5 |
% |
|
|
|
Mix-adjusted
ASP variance |
|
|
12.5 |
% |
|
|
|
|
|
11.7 |
% |
|
|
|
Martin Marietta Materials (NYSE:MLM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Martin Marietta Materials (NYSE:MLM)
Historical Stock Chart
From Sep 2023 to Sep 2024