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 third quarter
ended September 30, 2022.
Third-Quarter Highlights(Highlights are for
continuing operations)
|
|
|
Quarter Ended September 30, |
(In
millions, except per share) |
|
2022 |
|
|
2021 |
|
|
% Change |
Products and
services revenues 1 |
|
$ |
1,680.5 |
|
|
$ |
1,462.7 |
|
|
14.9% |
Building Materials |
|
$ |
1,611.5 |
|
|
$ |
1,390.8 |
|
|
15.9% |
Magnesia Specialties |
|
$ |
69.0 |
|
|
$ |
71.9 |
|
|
(4.0)% |
Total revenues
2 |
|
$ |
1,811.7 |
|
|
$ |
1,557.3 |
|
|
16.3% |
Gross profit |
|
$ |
487.8 |
|
|
$ |
441.9 |
|
|
10.4% |
Adjusted gross
profit 3 |
|
$ |
487.8 |
|
|
$ |
450.0 |
|
|
8.4% |
Earnings from
operations |
|
$ |
405.9 |
|
|
$ |
356.9 |
|
|
13.7% |
Adjusted earnings
from operations 4 |
|
$ |
407.5 |
|
|
$ |
372.4 |
|
|
9.4% |
Net earnings from
continuing operations attributable to Martin
Marietta |
|
$ |
291.2 |
|
|
$ |
254.6 |
|
|
14.4% |
Adjusted EBITDA
5 |
|
$ |
533.1 |
|
|
$ |
490.0 |
|
|
8.8% |
Earnings per
diluted share from continuing operations |
|
$ |
4.67 |
|
|
$ |
4.07 |
|
|
14.7% |
Adjusted earnings
per diluted share from continuing operations 6 |
|
$ |
4.69 |
|
|
$ |
4.25 |
|
|
10.4% |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
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 and is a non-GAAP financial measure. See
Appendix to this earnings release for a reconciliation to reported
gross profit under generally accepted accounting principles
(GAAP). |
4 |
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 the nonrecurring gain on divestiture of the Company’s
Colorado and Texas ready-mixed concrete operations on April 1,
2022, and is a non-GAAP financial measure. 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, or Adjusted EBITDA, excludes 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 the nonrecurring gain on
divestiture of the Company’s Colorado and Texas ready-mixed
concrete operations on April 1, 2022, and 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 |
Adjusted earnings
per diluted share from continuing 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 the nonrecurring gain on
divestiture of the Company's Colorado and Texas ready-mixed
concrete operations on April 1, 2022, 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, “Our third-quarter results highlight our commitment to
execution of our value-over-volume strategy as double-digit pricing
growth drove record profitability despite relatively flat organic
aggregates shipments. Importantly, we expect a return to expanding
margins in the fourth quarter as the compounding effect of multiple
pricing actions throughout the year offsets continued inflationary
pressure and a slowdown in single-family residential
construction.
“Martin Marietta’s strategic coast-to-coast
footprint is well-positioned for long-term growth, driven by
favorable population migration trends, housing shortages in our
markets and a long-term federal highway bill complemented by
healthy Department of Transportation (DOT) budgets in the Company's
key states. Near-term, we expect affordability driven headwinds in
the single-family residential end market will be offset by a
significant acceleration in public infrastructure investment and
continued strength in large-scale energy, domestic manufacturing
and multi-family residential projects.
Mr. Nye concluded, “While the Company’s 2022
year-to-date safety performance continues to be at world-class
levels as measured by both Total Injury and Lost Time Incidence
Rates, our work in this vital dimension is never done. Our
commitment to continuous improvement in employee health and
well-being, world-class safety, commercial and operational
excellence, sustainable business practices and execution of our
strategic plan reinforces our confidence in Martin Marietta’s
ability to provide compelling results for the foreseeable future.
Moreover, Martin Marietta’s track record of success throughout
various business cycles proves the resiliency and durability of our
aggregates-led business model, chosen geographies, and our ability
to adapt to the challenges inherent in a dynamic macroeconomic
environment. Importantly, we expect that the carryover effects of
our 2022 pricing momentum, coupled with our broad-based January 1,
2023 announced price increases, will drive accelerated aggregates
unit margin expansion next year.”
Third-Quarter Financial and Operating
Results
(All financial and operating results are for
continuing operations and comparisons are versus the prior-year
third quarter, unless otherwise noted)
Building Materials Business
Building Materials generated record products and
services revenues of $1.61 billion for the third quarter, a 15.9
percent increase, driven primarily by acquisitions and double-digit
pricing growth across all product lines. Products and services
gross profit increased 13.1 percent, or 10.9 percent on an adjusted
basis, to a record $467.2 million. Elevated energy, internal
freight, contract services as well as repairs and maintenance costs
contributed to a products and services gross margin decline of 70
basis points, or 130 basis points on an adjusted basis, to 29.0
percent.
Aggregates
Third-quarter organic aggregates shipments were
flat, largely due to logistical constraints, cement shortages and
inclement weather in certain key markets. Importantly, organic
pricing increased 11.9 percent, or 11.3 percent on a mix-adjusted
basis, due to the cumulative effect of price increases throughout
the year. Including acquired operations, total aggregates shipments
and pricing increased 5.6 percent and 11.6 percent,
respectively.
By segment:
- East Group total shipments were flat, as solid underlying
demand was negatively impacted by supply chain challenges as well
as weather-related disruptions. Pricing increased 11.5 percent, or
10.3 percent on a mix-adjusted basis.
- West Group total shipments improved 15.6 percent, driven
primarily by contributions from acquired operations as well as
strong Texas demand, partially offset by a historically wet August
in North Texas. Organic pricing increased 12.4 percent, or 13.2
percent on a mix-adjusted basis.
Third-quarter aggregates product gross profit
improved 12.8 percent, or 10.5 percent on an adjusted basis, to a
record $330.3 million, while product gross margin declined 170
basis points, or 240 basis points on an adjusted basis, to 32.5
percent, primarily due to increased energy, internal freight and
repairs and maintenance costs.
Cement
Cement shipments increased 2.3 percent to 1.1
million tons, a third-quarter record. Additionally, pricing
increased 21.4 percent, or 20.6 percent on a mix-adjusted basis,
driven by continued strong demand and the impact of multiple price
increases during the year. Cement product gross profit grew to a
record $67.7 million, an increase of 35.7 percent, while product
gross margins expanded 380 basis points to 41.5 percent, as pricing
gains more than offset higher energy costs in the period.
Downstream businesses
On an organic basis, ready mixed concrete
shipments were down 16.8 percent primarily due to record rainfall
in portions of Texas during August as well as the completion of
certain large projects. However, pricing increased 20.3 percent due
to the positive impact of multiple price increases implemented
during the year.
Ready mixed concrete product revenues and gross
profit from continuing operations declined 29.1 percent and 40.3
percent, respectively, driven largely by the April 1 divestiture of
our Colorado and Central Texas ready mixed concrete businesses,
which was partially offset by contributions from acquired ready
mixed concrete operations in Arizona. Increased raw materials costs
weighed on gross margin.
On an organic basis, total asphalt shipments and
pricing increased 4.3 percent and 22.0 percent, respectively.
Notably, prior year volumes were constrained by the shortage in
liquid asphalt, or bitumen.
Including contributions from the acquired West
Coast operations, total asphalt shipments and pricing increased
31.3 percent and 26.1 percent, respectively. Total asphalt and
paving product gross profit increased to a record $50.5 million.
However, continued acceleration of liquid asphalt costs contributed
to the gross margin compression of 360 basis points, or 470 basis
points on an adjusted basis, in the third quarter.
Magnesia Specialties Business
Magnesia Specialties product revenues decreased
4.0 percent to $69.0 million, driven largely by lower demand from
domestic steel industry customers for dolomitic lime products.
Product gross profit declined 22.9 percent to $21.6 million as
higher energy costs, particularly natural gas, depressed gross
margin in the quarter.
Consolidated
Other operating income, net, of $14.8 million
includes $14.5 million in nonrecurring gains from the sales of
surplus land and other assets.
On August 9, 2022, the Company signed a
definitive agreement to sell the Tehachapi, California cement plant
and related distribution terminals to CalPortland Company for $350
million in cash. The transaction is subject to customary
regulatory approvals and closing conditions.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities for the
nine months ended September 30, 2022 was $560.7 million compared
with $780.3 million for the prior-year period.
Cash paid for property, plant and equipment
additions for the nine months ended September 30, 2022 was $309.1
million. For the full year, capital expenditures are expected to
range from $450 million to $500 million.
During the nine months ended September 30, 2022,
the Company returned $268.1 million to shareholders through
dividend payments and share repurchases. As of September 30, 2022,
13.1 million shares remained under the current repurchase
authorization.
The Company had $135.7 million of cash and cash
equivalents on hand and nearly $1.20 billion of unused borrowing
capacity on its existing credit facilities as of September 30,
2022.
On September 29, 2022, the Company utilized
existing cash resources to satisfy and discharge its $700.0 million
0.650% Senior Notes due 2023. As a result of the satisfaction and
discharge of the 2023 Notes, the obligations of the Company under
the indenture in respect of the 2023 Notes have been
terminated.
Updated 2022 Guidance
The Company’s updated 2022 guidance reflects
actual results through nine months as well as the impact of lower
expected aggregates volumes and continued inflationary pressure.
This guidance excludes businesses classified as discontinued
operations as well as the gain on divestiture from the second
quarter of 2022.
2022 GUIDANCE |
|
(Dollars in Millions) |
|
Low * |
|
|
High * |
|
Consolidated |
|
|
|
|
|
|
Products and services revenues1 |
|
$ |
5,740 |
|
|
$ |
5,845 |
|
Gross profit |
|
$ |
1,445 |
|
|
$ |
1,510 |
|
Selling, general
and administrative expenses (SG&A) |
|
$ |
390 |
|
|
$ |
400 |
|
Interest
expense |
|
$ |
165 |
|
|
$ |
170 |
|
Estimated tax rate
(excluding discrete events) |
|
|
22 |
% |
|
|
23 |
% |
Net earnings from
continuing operations attributable to Martin Marietta |
|
$ |
740 |
|
|
$ |
800 |
|
Adjusted
EBITDA2 |
|
$ |
1,610 |
|
|
$ |
1,675 |
|
Capital
expenditures |
|
$ |
450 |
|
|
$ |
500 |
|
|
|
|
|
|
|
|
|
Building Materials
Business |
|
|
|
|
|
|
Aggregates |
|
|
|
|
|
|
Organic volume % growth3 |
|
|
(1.0 |
)% |
|
|
0.0 |
% |
Total volume % growth4 |
|
|
4.0 |
% |
|
|
5.0 |
% |
Organic average selling price per ton (ASP) % growth5 |
|
|
10.0 |
% |
|
|
12.0 |
% |
Total ASP growth6 |
|
|
10.0 |
% |
|
|
12.0 |
% |
Products and services revenues |
|
$ |
3,525 |
|
|
$ |
3,575 |
|
Gross profit |
|
$ |
995 |
|
|
$ |
1,035 |
|
|
|
|
|
|
|
|
|
Cement |
|
|
|
|
|
|
Products and services revenues |
|
$ |
610 |
|
|
$ |
625 |
|
Gross profit |
|
$ |
210 |
|
|
$ |
220 |
|
|
|
|
|
|
|
|
|
Ready Mixed
Concrete and Asphalt and Paving |
|
|
|
|
|
|
Products and services revenues |
|
$ |
1,710 |
|
|
$ |
1,745 |
|
Gross profit |
|
$ |
150 |
|
|
$ |
160 |
|
|
|
|
|
|
|
|
|
Magnesia
Specialties Business |
|
|
|
|
|
|
Products and services revenues |
|
$ |
285 |
|
|
$ |
290 |
|
Gross profit |
|
$ |
90 |
|
|
$ |
95 |
|
* |
Guidance range represents the low end and high end of the
respective line items provided above. |
1 |
Consolidated products and
services revenues exclude $390 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. |
Preliminary View of 2023
The Company’s preliminary view of 2023
anticipates aggregates shipments to be effectively flat as the
Company expects stronger demand from public infrastructure and
heavy nonresidential projects of scale to be offset by
single-family residential softening. We anticipate aggregates
pricing to increase by a low-double-digit percentage in 2023 as the
carryover effects from multiple actions taken in 2022 are
compounded with additional price increases beginning in January of
next year.
Non-GAAP Financial Information
This earnings release contains financial
measures that have not been prepared in accordance with generally
accepted accounting principles in the United States (GAAP).
Reconciliations of non-GAAP financial measures to the closest GAAP
measures are included in the Appendix to this earnings release.
Management believes these non-GAAP measures are commonly used
financial measures for investors to evaluate the Company’s
operating performance and, when read in conjunction with the
Company’s consolidated financial statements, present a useful tool
to evaluate the Company’s ongoing operations, performance from
period to period and anticipated performance. In addition, these
are some of the factors the Company uses in internal evaluations of
the overall performance of its businesses. Management acknowledges
that there are many items that impact a company’s reported results
and the adjustments reflected in these non-GAAP measures are not
intended to present all items that may have impacted these results.
In addition, these non-GAAP measures are not necessarily comparable
to similarly titled measures used by other companies.
Conference Call Information
The Company will discuss its third-quarter 2022
earnings results on a conference call and an online webcast today
(November 2, 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/BI38e873a0336948ef86b287a7fe390693.
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 Q3 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)
510-4736Jennifer.Park@martinmarietta.com
MLM-E.
If you are interested in Martin Marietta stock,
management recommends that, at a minimum, reading the Company’s
current annual report and Forms 10-K, 10-Q and 8-K reports to the
Securities and Exchange Commission (SEC) over the past year. The
Company’s recent proxy statement for the annual meeting of
shareholders also contains important information. These and other
materials that have been filed with the SEC are accessible through
the Company’s website at www.martinmarietta.com and are also
available at the SEC’s website at www.sec.gov. You may also write
or call the Company’s Corporate Secretary, who will provide copies
of such reports.
Investors are cautioned that all statements in
this release that relate to the future involve risks and
uncertainties, and are based on assumptions that the Company
believes in good faith are reasonable but which may be materially
different from actual results. These statements, which are
forward-looking statements under the Private Securities Litigation
Reform Act of 1995, provide the investor with the Company’s
expectations or forecasts of future events. You can identify these
statements by the fact that they do not relate only to historical
or current facts. They may use words such as “guidance”,
“anticipate”, “may”, “expect”, “should”, “believe”, “will”, and
other words of similar meaning in connection with future events or
future operating or financial performance. Any or all of the
Company’s forward-looking statements here and in other publications
may turn out to be wrong.
Third-quarter results and trends described in
this release may not necessarily be indicative of the Company’s
future performance. The Company’s outlook is subject to various
risks and uncertainties and is based on assumptions that the
Company believes in good faith are reasonable but which may be
materially different from actual results. Factors that the Company
currently believes could cause actual results to differ materially
from the forward-looking statements in this release (including the
outlook) include, but are not limited to: the ability of the
Company to face challenges, including shipment declines resulting
from economic events beyond the Company’s control; a widespread
decline in aggregates pricing, including a decline in aggregates
shipment volume negatively affecting aggregates price; the history
of both cement and ready mixed concrete being subject to
significant changes in supply, demand and price fluctuations; the
termination, capping and/or reduction or suspension of the federal
and/or state fuel tax(es) or other revenue related to public
construction; the level and timing of federal, state or local
transportation or infrastructure or public projects funding, most
particularly in Texas, Colorado, California, North Carolina,
Georgia, Minnesota, Iowa, Florida, Indiana and 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 fuel tax or a sustained period of low global oil
prices or changes in oil production patterns or capital spending,
particularly in Texas and West Virginia; increasing residential
mortgage interest rates and other factors that could result in a
slowdown in residential construction; unfavorable weather
conditions, particularly Atlantic Ocean 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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(In Millions, Except Per Share Data) |
|
Products and services revenues |
|
$ |
1,680.5 |
|
|
$ |
1,462.7 |
|
|
$ |
4,352.1 |
|
|
$ |
3,679.9 |
|
Freight revenues |
|
|
131.2 |
|
|
|
94.6 |
|
|
|
332.1 |
|
|
|
237.7 |
|
Total Revenues |
|
|
1,811.7 |
|
|
|
1,557.3 |
|
|
|
4,684.2 |
|
|
|
3,917.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues - products
and services |
|
|
1,193.8 |
|
|
|
1,021.0 |
|
|
|
3,281.3 |
|
|
|
2,676.9 |
|
Cost of revenues -
freight |
|
|
130.1 |
|
|
|
94.4 |
|
|
|
333.8 |
|
|
|
239.0 |
|
Total Cost of Revenues |
|
|
1,323.9 |
|
|
|
1,115.4 |
|
|
|
3,615.1 |
|
|
|
2,915.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
487.8 |
|
|
|
441.9 |
|
|
|
1,069.1 |
|
|
|
1,001.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general &
administrative expenses |
|
|
94.9 |
|
|
|
86.0 |
|
|
|
296.0 |
|
|
|
248.2 |
|
Acquisition and integration
expenses |
|
|
1.8 |
|
|
|
7.4 |
|
|
|
6.1 |
|
|
|
18.0 |
|
Other operating income,
net |
|
|
(14.8 |
) |
|
|
(8.4 |
) |
|
|
(177.4 |
) |
|
|
(28.2 |
) |
Earnings from Operations |
|
|
405.9 |
|
|
|
356.9 |
|
|
|
944.4 |
|
|
|
763.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
42.8 |
|
|
|
44.3 |
|
|
|
126.4 |
|
|
|
99.9 |
|
Other nonoperating income,
net |
|
|
(7.3 |
) |
|
|
(5.6 |
) |
|
|
(40.1 |
) |
|
|
(23.8 |
) |
Earnings from continuing operations before income tax
expense |
|
|
370.4 |
|
|
|
318.2 |
|
|
|
858.1 |
|
|
|
687.6 |
|
Income tax expense |
|
|
79.2 |
|
|
|
63.6 |
|
|
|
189.4 |
|
|
|
141.7 |
|
Earnings from continuing operations |
|
|
291.2 |
|
|
|
254.6 |
|
|
|
668.7 |
|
|
|
545.9 |
|
Earnings from discontinued
operations, net of income tax expense |
|
|
4.1 |
|
|
|
— |
|
|
|
14.3 |
|
|
|
— |
|
Consolidated net earnings |
|
|
295.3 |
|
|
|
254.6 |
|
|
|
683.0 |
|
|
|
545.9 |
|
Less: Net (loss) earnings
attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
0.2 |
|
Net Earnings Attributable to
Martin Marietta Materials, Inc. |
|
$ |
295.3 |
|
|
$ |
254.6 |
|
|
$ |
683.2 |
|
|
$ |
545.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings Attributable to
Martin Marietta |
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic from continuing operations |
|
$ |
4.67 |
|
|
$ |
4.08 |
|
|
$ |
10.73 |
|
|
$ |
8.74 |
|
Basic from discontinued operations |
|
|
0.07 |
|
|
|
— |
|
|
|
0.23 |
|
|
|
— |
|
|
|
$ |
4.74 |
|
|
$ |
4.08 |
|
|
$ |
10.96 |
|
|
$ |
8.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted from continuing operations |
|
$ |
4.67 |
|
|
$ |
4.07 |
|
|
$ |
10.69 |
|
|
$ |
8.72 |
|
Diluted from discontinued operations |
|
|
0.06 |
|
|
|
— |
|
|
|
0.23 |
|
|
|
— |
|
|
|
$ |
4.73 |
|
|
$ |
4.07 |
|
|
$ |
10.92 |
|
|
$ |
8.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average Common Shares
Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
62.3 |
|
|
|
62.4 |
|
|
|
62.4 |
|
|
|
62.4 |
|
Diluted |
|
|
62.5 |
|
|
|
62.6 |
|
|
|
62.5 |
|
|
|
62.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Per Common
Share |
|
$ |
0.66 |
|
|
$ |
0.61 |
|
|
$ |
1.88 |
|
|
$ |
1.75 |
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in Millions) |
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
773.6 |
|
|
$ |
684.1 |
|
|
$ |
1,866.9 |
|
|
$ |
1,714.4 |
|
West Group |
|
|
962.4 |
|
|
|
794.8 |
|
|
|
2,582.9 |
|
|
|
1,978.2 |
|
Total Building Materials |
|
|
1,736.0 |
|
|
|
1,478.9 |
|
|
|
4,449.8 |
|
|
|
3,692.6 |
|
Magnesia Specialties |
|
|
75.7 |
|
|
|
78.4 |
|
|
|
234.4 |
|
|
|
225.0 |
|
Total |
|
$ |
1,811.7 |
|
|
$ |
1,557.3 |
|
|
$ |
4,684.2 |
|
|
$ |
3,917.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
269.9 |
|
|
$ |
231.6 |
|
|
$ |
565.4 |
|
|
$ |
542.1 |
|
West Group |
|
|
199.4 |
|
|
|
182.8 |
|
|
|
441.3 |
|
|
|
377.9 |
|
Total Building Materials |
|
|
469.3 |
|
|
|
414.4 |
|
|
|
1,006.7 |
|
|
|
920.0 |
|
Magnesia Specialties |
|
|
20.6 |
|
|
|
27.0 |
|
|
|
70.9 |
|
|
|
81.4 |
|
Corporate |
|
|
(2.1 |
) |
|
|
0.5 |
|
|
|
(8.5 |
) |
|
|
0.3 |
|
Total |
|
$ |
487.8 |
|
|
$ |
441.9 |
|
|
$ |
1,069.1 |
|
|
$ |
1,001.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
29.0 |
|
|
$ |
26.5 |
|
|
$ |
86.5 |
|
|
$ |
77.0 |
|
West Group |
|
|
41.0 |
|
|
|
34.2 |
|
|
|
124.0 |
|
|
|
101.1 |
|
Total Building Materials |
|
|
70.0 |
|
|
|
60.7 |
|
|
|
210.5 |
|
|
|
178.1 |
|
Magnesia Specialties |
|
|
4.0 |
|
|
|
3.8 |
|
|
|
12.0 |
|
|
|
11.1 |
|
Corporate |
|
|
20.9 |
|
|
|
21.5 |
|
|
|
73.5 |
|
|
|
59.0 |
|
Total |
|
$ |
94.9 |
|
|
$ |
86.0 |
|
|
$ |
296.0 |
|
|
$ |
248.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
239.4 |
|
|
$ |
205.8 |
|
|
$ |
478.0 |
|
|
$ |
465.3 |
|
West Group (1) |
|
|
159.7 |
|
|
|
150.6 |
|
|
|
477.2 |
|
|
|
284.2 |
|
Total Building Materials |
|
|
399.1 |
|
|
|
356.4 |
|
|
|
955.2 |
|
|
|
749.5 |
|
Magnesia Specialties |
|
|
16.5 |
|
|
|
23.1 |
|
|
|
58.4 |
|
|
|
69.8 |
|
Corporate |
|
|
(9.7 |
) |
|
|
(22.6 |
) |
|
|
(69.2 |
) |
|
|
(55.6 |
) |
Total |
|
$ |
405.9 |
|
|
$ |
356.9 |
|
|
$ |
944.4 |
|
|
$ |
763.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
$151.9 million of nonrecurring gain on a divestiture in the nine
months ended September 30, 2022. |
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Financial Highlights (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
Amount |
|
|
% of Revenues |
|
Amount |
|
|
% of Revenues |
|
Amount |
|
|
% of Revenues |
|
Amount |
|
|
% of Revenues |
|
|
(Dollars in Millions) |
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
1,015.7 |
|
|
|
|
$ |
857.1 |
|
|
|
|
$ |
2,656.8 |
|
|
|
|
$ |
2,231.5 |
|
|
|
Cement |
|
|
163.2 |
|
|
|
|
|
132.3 |
|
|
|
|
|
455.4 |
|
|
|
|
|
358.4 |
|
|
|
Ready mixed concrete |
|
|
227.4 |
|
|
|
|
|
320.8 |
|
|
|
|
|
743.6 |
|
|
|
|
|
824.5 |
|
|
|
Asphalt and paving |
|
|
309.8 |
|
|
|
|
|
195.9 |
|
|
|
|
|
576.9 |
|
|
|
|
|
343.5 |
|
|
|
Less: Interproduct sales |
|
|
(104.6 |
) |
|
|
|
|
(115.3 |
) |
|
|
|
|
(295.0 |
) |
|
|
|
|
(285.1 |
) |
|
|
Products and services |
|
|
1,611.5 |
|
|
|
|
|
1,390.8 |
|
|
|
|
|
4,137.7 |
|
|
|
|
|
3,472.8 |
|
|
|
Freight |
|
|
124.5 |
|
|
|
|
|
88.1 |
|
|
|
|
|
312.1 |
|
|
|
|
|
219.8 |
|
|
|
Total Building Materials |
|
|
1,736.0 |
|
|
|
|
|
1,478.9 |
|
|
|
|
|
4,449.8 |
|
|
|
|
|
3,692.6 |
|
|
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
69.0 |
|
|
|
|
|
71.9 |
|
|
|
|
|
214.4 |
|
|
|
|
|
207.1 |
|
|
|
Freight |
|
|
6.7 |
|
|
|
|
|
6.5 |
|
|
|
|
|
20.0 |
|
|
|
|
|
17.9 |
|
|
|
Total Magnesia Specialties |
|
|
75.7 |
|
|
|
|
|
78.4 |
|
|
|
|
|
234.4 |
|
|
|
|
|
225.0 |
|
|
|
Consolidated total
revenues |
|
$ |
1,811.7 |
|
|
|
|
$ |
1,557.3 |
|
|
|
|
$ |
4,684.2 |
|
|
|
|
$ |
3,917.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
330.3 |
|
|
32.5% |
|
$ |
292.9 |
|
|
34.2% |
|
$ |
741.2 |
|
|
27.9% |
|
$ |
687.7 |
|
|
30.8% |
Cement |
|
|
67.7 |
|
|
41.5% |
|
|
49.9 |
|
|
37.7% |
|
|
146.1 |
|
|
32.1% |
|
|
101.3 |
|
|
28.3% |
Ready mixed concrete |
|
|
18.7 |
|
|
8.2% |
|
|
31.4 |
|
|
9.8% |
|
|
54.1 |
|
|
7.3% |
|
|
69.9 |
|
|
8.5% |
Asphalt and paving |
|
|
50.5 |
|
|
16.3% |
|
|
38.9 |
|
|
19.9% |
|
|
63.6 |
|
|
11.0% |
|
|
59.4 |
|
|
17.3% |
Subtotal |
|
|
467.2 |
|
|
29.0% |
|
|
413.1 |
|
|
29.7% |
|
|
1,005.0 |
|
|
24.3% |
|
|
918.3 |
|
|
26.4% |
Freight |
|
|
2.1 |
|
|
NM |
|
|
1.3 |
|
|
NM |
|
|
1.7 |
|
|
NM |
|
|
1.7 |
|
|
NM |
Total Building Materials |
|
|
469.3 |
|
|
27.0% |
|
|
414.4 |
|
|
28.0% |
|
|
1,006.7 |
|
|
22.6% |
|
|
920.0 |
|
|
24.9% |
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
21.6 |
|
|
31.3% |
|
|
28.1 |
|
|
39.0% |
|
|
74.3 |
|
|
34.6% |
|
|
84.4 |
|
|
40.7% |
Freight |
|
|
(1.0 |
) |
|
NM |
|
|
(1.1 |
) |
|
NM |
|
|
(3.4 |
) |
|
NM |
|
|
(3.0 |
) |
|
NM |
Total Magnesia Specialties |
|
|
20.6 |
|
|
27.2% |
|
|
27.0 |
|
|
34.4% |
|
|
70.9 |
|
|
30.2% |
|
|
81.4 |
|
|
36.2% |
Corporate |
|
|
(2.1 |
) |
|
NM |
|
|
0.5 |
|
|
NM |
|
|
(8.5 |
) |
|
NM |
|
|
0.3 |
|
|
NM |
Consolidated gross profit |
|
$ |
487.8 |
|
|
26.9% |
|
$ |
441.9 |
|
|
28.4% |
|
$ |
1,069.1 |
|
|
22.8% |
|
$ |
1,001.7 |
|
|
25.6% |
MARTIN MARIETTA MATERIALS, INC. |
|
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
Unaudited |
|
|
Audited |
|
|
|
(In millions) |
|
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
135.7 |
|
|
$ |
258.4 |
|
Restricted cash |
|
|
— |
|
|
|
0.5 |
|
Restricted investments (to satisfy discharged debt and related
interest) |
|
|
704.6 |
|
|
|
— |
|
Accounts receivable, net |
|
|
1,011.7 |
|
|
|
774.0 |
|
Inventories, net |
|
|
823.4 |
|
|
|
752.6 |
|
Current assets held for sale |
|
|
79.5 |
|
|
|
102.2 |
|
Other current assets |
|
|
92.4 |
|
|
|
137.9 |
|
Property, plant and equipment, net |
|
|
6,153.8 |
|
|
|
6,338.0 |
|
Intangible assets, net |
|
|
4,496.1 |
|
|
|
4,559.4 |
|
Operating lease right-of-use assets, net |
|
|
397.3 |
|
|
|
426.7 |
|
Noncurrent assets held for sale |
|
|
375.1 |
|
|
|
616.9 |
|
Other noncurrent assets |
|
|
460.1 |
|
|
|
426.4 |
|
Total assets |
|
$ |
14,729.7 |
|
|
$ |
14,393.0 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current maturities of discharged long-term debt |
|
$ |
698.7 |
|
|
$ |
— |
|
Current liabilities held for sale |
|
|
4.6 |
|
|
|
7.5 |
|
Other current liabilities |
|
|
716.4 |
|
|
|
745.1 |
|
Long-term debt (excluding current maturities) |
|
|
4,339.9 |
|
|
|
5,100.8 |
|
Noncurrent liabilities held for sale |
|
|
23.8 |
|
|
|
53.5 |
|
Other noncurrent liabilities |
|
|
2,008.5 |
|
|
|
1,948.5 |
|
Total equity |
|
|
6,937.8 |
|
|
|
6,537.6 |
|
Total liabilities and equity |
|
$ |
14,729.7 |
|
|
$ |
14,393.0 |
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Statements of Cash Flows |
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in Millions) |
|
Cash Flows from Operating
Activities: |
|
|
|
|
|
|
Consolidated net earnings |
|
$ |
683.0 |
|
|
$ |
545.9 |
|
Adjustments to reconcile
consolidated net earnings to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
380.3 |
|
|
|
320.0 |
|
Stock-based compensation expense |
|
|
34.3 |
|
|
|
33.0 |
|
Gain on divestitures, sales of assets and extinguishment of
debt |
|
|
(190.7 |
) |
|
|
(26.6 |
) |
Deferred income taxes, net |
|
|
(1.0 |
) |
|
|
25.7 |
|
Other items, net |
|
|
(1.0 |
) |
|
|
(8.3 |
) |
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
(237.9 |
) |
|
|
(218.0 |
) |
Inventories, net |
|
|
(87.0 |
) |
|
|
65.1 |
|
Accounts payable |
|
|
18.1 |
|
|
|
66.9 |
|
Other assets and liabilities, net |
|
|
(37.4 |
) |
|
|
(23.4 |
) |
Net Cash Provided by Operating
Activities |
|
|
560.7 |
|
|
|
780.3 |
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities: |
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(309.1 |
) |
|
|
(321.3 |
) |
Acquisitions, net of cash acquired |
|
|
11.0 |
|
|
|
(792.9 |
) |
Proceeds from divestitures and sales of assets |
|
|
679.1 |
|
|
|
41.4 |
|
Purchase of restricted investments to discharge long-term debt |
|
|
(704.6 |
) |
|
|
— |
|
Investments in life insurance contracts, net |
|
|
2.2 |
|
|
|
13.9 |
|
Other investing activities, net |
|
|
(3.0 |
) |
|
|
— |
|
Net Cash Used for Investing
Activities |
|
|
(324.4 |
) |
|
|
(1,058.9 |
) |
|
|
|
|
|
|
|
Cash Flows from Financing
Activities: |
|
|
|
|
|
|
Borrowings of debt |
|
|
— |
|
|
|
2,896.6 |
|
Repayments of debt |
|
|
(54.5 |
) |
|
|
(400.0 |
) |
Payments on finance lease obligations |
|
|
(11.1 |
) |
|
|
(7.6 |
) |
Debt issuance and extinguishment costs |
|
|
(0.3 |
) |
|
|
(6.1 |
) |
Distributions to owners of noncontrolling interest |
|
|
— |
|
|
|
(0.5 |
) |
Repurchases of common stock |
|
|
(150.0 |
) |
|
|
— |
|
Dividends paid |
|
|
(118.1 |
) |
|
|
(109.7 |
) |
Proceeds from exercise of stock options |
|
|
0.6 |
|
|
|
1.1 |
|
Shares withheld for employees' income tax obligations |
|
|
(26.1 |
) |
|
|
(16.5 |
) |
Net Cash (Used for) Provided
by Financing Activities |
|
|
(359.5 |
) |
|
|
2,357.3 |
|
Net (Decrease) Increase in
Cash, Cash Equivalents and Restricted Cash |
|
|
(123.2 |
) |
|
|
2,078.7 |
|
Cash, Cash Equivalents and
Restricted Cash, beginning of period |
|
|
258.9 |
|
|
|
304.4 |
|
Cash, Cash Equivalents and
Restricted Cash, end of period |
|
$ |
135.7 |
|
|
$ |
2,383.1 |
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Operational Highlights |
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, 2022 |
|
|
September 30, 2022 |
|
|
|
Volume |
|
|
Pricing |
|
|
Volume |
|
|
Pricing |
|
Volume/Pricing
Variance(1) |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
|
0.2 |
% |
|
|
11.5 |
% |
|
|
— |
% |
|
|
8.5 |
% |
West Group |
|
|
15.6 |
% |
|
|
12.2 |
% |
|
|
25.2 |
% |
|
|
11.0 |
% |
Total aggregates
operations(2) |
|
|
5.6 |
% |
|
|
11.6 |
% |
|
|
8.9 |
% |
|
|
8.9 |
% |
Organic aggregates
operations(3) |
|
|
(0.1 |
)% |
|
|
11.9 |
% |
|
|
2.0 |
% |
|
|
9.4 |
% |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Tons in Millions) |
|
|
(Tons in Millions) |
|
Shipments |
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
|
37.2 |
|
|
|
37.1 |
|
|
|
95.2 |
|
|
|
95.2 |
|
West Group |
|
|
23.0 |
|
|
|
19.9 |
|
|
|
64.9 |
|
|
|
51.8 |
|
Total aggregates
operations(2) |
|
|
60.2 |
|
|
|
57.0 |
|
|
|
160.1 |
|
|
|
147.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
% Change |
|
|
2022 |
|
|
2021 |
|
|
% Change |
|
Shipments (in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates tons - external
customers |
|
|
55.9 |
|
|
|
52.0 |
|
|
|
|
|
|
148.0 |
|
|
|
135.2 |
|
|
|
|
Internal aggregates tons used
in other product lines |
|
|
4.3 |
|
|
|
5.0 |
|
|
|
|
|
|
12.1 |
|
|
|
11.8 |
|
|
|
|
Total aggregates tons |
|
|
60.2 |
|
|
|
57.0 |
|
|
|
5.6 |
% |
|
|
160.1 |
|
|
|
147.0 |
|
|
|
8.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement tons - external
customers |
|
|
0.8 |
|
|
|
0.7 |
|
|
|
|
|
|
2.2 |
|
|
|
1.8 |
|
|
|
|
Internal cement tons used in
other product lines |
|
|
0.3 |
|
|
|
0.4 |
|
|
|
|
|
|
1.0 |
|
|
|
1.1 |
|
|
|
|
Total cement tons |
|
|
1.1 |
|
|
|
1.1 |
|
|
|
2.3 |
% |
|
|
3.2 |
|
|
|
2.9 |
|
|
|
10.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready mixed concrete - cubic
yards |
|
|
1.7 |
|
|
|
2.7 |
|
|
|
(37.6 |
)% |
|
|
5.9 |
|
|
|
7.2 |
|
|
|
(17.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asphalt tons - external
customers |
|
|
2.8 |
|
|
|
2.0 |
|
|
|
|
|
|
5.3 |
|
|
|
3.3 |
|
|
|
|
Internal asphalt tons used in
road paving business |
|
|
0.9 |
|
|
|
0.8 |
|
|
|
|
|
|
1.6 |
|
|
|
1.5 |
|
|
|
|
Total asphalt tons |
|
|
3.7 |
|
|
|
2.8 |
|
|
|
31.3 |
% |
|
|
6.9 |
|
|
|
4.8 |
|
|
|
46.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit sales
price by product line (including internal sales): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates (per ton) |
|
$ |
16.65 |
|
|
$ |
14.93 |
|
|
|
11.6 |
% |
|
$ |
16.41 |
|
|
$ |
15.08 |
|
|
|
8.9 |
% |
Cement (per ton) |
|
$ |
149.24 |
|
|
$ |
122.91 |
|
|
|
21.4 |
% |
|
$ |
139.64 |
|
|
$ |
120.29 |
|
|
|
16.1 |
% |
Ready mixed concrete (per
cubic yard) |
|
$ |
132.64 |
|
|
$ |
116.75 |
|
|
|
13.6 |
% |
|
$ |
125.32 |
|
|
$ |
114.59 |
|
|
|
9.4 |
% |
Asphalt (per ton) |
|
$ |
61.45 |
|
|
$ |
48.72 |
|
|
|
26.1 |
% |
|
$ |
61.21 |
|
|
$ |
48.77 |
|
|
|
25.5 |
% |
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 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 the
nonrecurring gain on divestiture of the Company’s Colorado and
Texas ready-mixed concrete operations on April 1, 2022 (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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in Millions) |
|
Net earnings from continuing operations attributable
to Martin Marietta |
|
$ |
291.2 |
|
|
$ |
254.6 |
|
|
$ |
668.9 |
|
|
$ |
545.7 |
|
Add back (Deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
38.8 |
|
|
|
44.2 |
|
|
|
121.5 |
|
|
|
99.6 |
|
Income tax expense for controlling interests |
|
|
79.1 |
|
|
|
63.6 |
|
|
|
189.4 |
|
|
|
141.7 |
|
Depreciation, depletion and amortization and
earnings/loss from nonconsolidated equity
affiliates |
|
|
122.4 |
|
|
|
112.1 |
|
|
|
374.6 |
|
|
|
314.2 |
|
Acquisition and integration expenses |
|
|
1.8 |
|
|
|
7.4 |
|
|
|
6.1 |
|
|
|
18.0 |
|
Impact of selling acquired inventory after markup to
fair value as a part of acquisition accounting |
|
|
— |
|
|
|
8.1 |
|
|
|
— |
|
|
|
15.7 |
|
Nonrecurring gain on divestiture |
|
|
(0.2 |
) |
|
|
— |
|
|
|
(151.9 |
) |
|
|
— |
|
Adjusted EBITDA |
|
$ |
533.1 |
|
|
$ |
490.0 |
|
|
$ |
1,208.6 |
|
|
$ |
1,134.9 |
|
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 to
Martin Marietta (1) |
|
$ |
740.0 |
|
|
$ |
800.0 |
|
Add back: |
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
165.0 |
|
|
|
170.0 |
|
Income tax expense for controlling interests |
|
|
205.0 |
|
|
|
200.0 |
|
Depreciation, depletion and amortization expense and
earnings/loss from nonconsolidated equity
affiliates |
|
|
500.0 |
|
|
|
505.0 |
|
Adjusted EBITDA |
|
$ |
1,610.0 |
|
|
$ |
1,675.0 |
|
|
|
|
|
|
|
|
|
|
(1) Excludes the
nonrecurring gain on divestiture of the Company’s Colorado and
Texas ready-mixed concrete operations on April 1, 2022. |
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 Consolidated Gross
Profit in Accordance with GAAP to Adjusted Consolidated Gross
Profit and Adjusted Consolidated Gross Margin is as
follows:
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in Millions) |
|
Consolidated gross profit in accordance with GAAP |
|
$ |
487.8 |
|
|
$ |
441.9 |
|
|
$ |
1,069.1 |
|
|
$ |
1,001.7 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to
fair value as part of acquisition accounting |
|
|
— |
|
|
|
8.1 |
|
|
|
— |
|
|
|
15.7 |
|
Adjusted consolidated gross
profit |
|
$ |
487.8 |
|
|
$ |
450.0 |
|
|
$ |
1,069.1 |
|
|
$ |
1,017.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated total
revenues |
|
$ |
1,811.7 |
|
|
$ |
1,557.3 |
|
|
$ |
4,684.2 |
|
|
$ |
3,917.6 |
|
Adjusted consolidated gross
margin |
|
|
26.9 |
% |
|
|
28.9 |
% |
|
|
22.8 |
% |
|
|
26.0 |
% |
A Reconciliation of Building Materials
Business Product and Services Gross Profit in Accordance with GAAP
to Adjusted Building Materials Business Product and Services Gross
Profit and Adjusted Building Materials Business Product and
Services Gross Margin is as follows:
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in Millions) |
|
Building materials business product and services gross profit
in accordance with GAAP |
|
$ |
467.2 |
|
|
$ |
413.1 |
|
|
$ |
1,005.0 |
|
|
$ |
918.3 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to
fair value as part of acquisition accounting |
|
|
— |
|
|
|
8.1 |
|
|
|
— |
|
|
|
15.7 |
|
Adjusted building materials
business product and services gross profit |
|
$ |
467.2 |
|
|
$ |
421.2 |
|
|
$ |
1,005.0 |
|
|
$ |
934.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building materials business
products and services revenues |
|
$ |
1,611.5 |
|
|
$ |
1,390.8 |
|
|
$ |
4,137.7 |
|
|
$ |
3,472.8 |
|
Adjusted building materials
business products and services gross margin |
|
|
29.0 |
% |
|
|
30.3 |
% |
|
|
24.3 |
% |
|
|
26.9 |
% |
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in Millions) |
|
Aggregates product gross profit in accordance with GAAP |
|
$ |
330.3 |
|
|
$ |
292.9 |
|
|
$ |
741.2 |
|
|
$ |
687.7 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to
fair value as part of acquisition accounting |
|
|
— |
|
|
|
5.9 |
|
|
|
— |
|
|
|
12.0 |
|
Adjusted aggregates product
gross profit |
|
$ |
330.3 |
|
|
$ |
298.8 |
|
|
$ |
741.2 |
|
|
$ |
699.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates products and
services revenues |
|
$ |
1,015.7 |
|
|
$ |
857.1 |
|
|
$ |
2,656.8 |
|
|
$ |
2,231.5 |
|
Adjusted aggregates product
gross margin |
|
|
32.5 |
% |
|
|
34.9 |
% |
|
|
27.9 |
% |
|
|
31.4 |
% |
A Reconciliation of Asphalt and Paving
Product and Services Gross Profit in Accordance with GAAP to
Adjusted Asphalt and Paving Product and Services Gross Profit and
Adjusted Asphalt and Paving Product and Services Gross Margin is as
follows:
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in Millions) |
|
Asphalt and paving products and services gross profit
in accordance with GAAP |
|
$ |
50.5 |
|
|
$ |
38.9 |
|
|
$ |
63.6 |
|
|
$ |
59.4 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of selling acquired inventory after its markup to
fair value as part of acquisition accounting |
|
|
— |
|
|
|
2.2 |
|
|
|
— |
|
|
|
3.7 |
|
Adjusted asphalt and paving
products and services gross profit |
|
$ |
50.5 |
|
|
$ |
41.1 |
|
|
$ |
63.6 |
|
|
$ |
63.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asphalt and paving products
and services revenues |
|
$ |
309.8 |
|
|
$ |
195.9 |
|
|
$ |
576.9 |
|
|
$ |
343.5 |
|
Adjusted asphalt and paving
products and services gross margin |
|
|
16.3 |
% |
|
|
21.0 |
% |
|
|
11.0 |
% |
|
|
18.4 |
% |
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
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 the
nonrecurring gain on divestiture of the Company’s Colorado and
Texas ready-mixed concrete operations on April 1, 2022. 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 the gain on
divestiture of the Company’s Colorado and Texas ready-mixed
concrete operations on April 1, 2022 are nonrecurring.
Reconciliation of Consolidated Earnings from Operations
in Accordance with GAAP to Adjusted Earnings from
Operations
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
(Dollars in Millions) |
|
Consolidated earnings from operations in accordance
with GAAP |
|
$ |
405.9 |
|
|
$ |
356.9 |
|
|
$ |
944.4 |
|
|
$ |
763.7 |
|
Add back (Deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and integration expenses |
|
|
1.8 |
|
|
|
7.4 |
|
|
|
6.1 |
|
|
|
18.0 |
|
Impact of selling acquired inventory after its markup
to fair value as part of acquisition accounting |
|
|
— |
|
|
|
8.1 |
|
|
|
— |
|
|
|
15.7 |
|
Nonrecurring gain on divestiture |
|
|
(0.2 |
) |
|
|
— |
|
|
|
(151.9 |
) |
|
|
— |
|
Adjusted earnings from
operations |
|
$ |
407.5 |
|
|
$ |
372.4 |
|
|
$ |
798.6 |
|
|
$ |
797.4 |
|
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 the
nonrecurring gain on divestiture of the Company’s Colorado and
Texas ready-mixed concrete operations on April 1, 2022. 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 the gain on
divestiture of the Company’s Colorado and Texas ready-mixed
concrete operations on April 1, 2022 are nonrecurring.
Reconciliation of Earnings Per Diluted Share in
Accordance with GAAP to Adjusted Earnings Per Diluted
Share
|
|
Three Months Ended September 30, 2022 |
|
|
|
Pretax |
|
|
Income Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
|
(In Millions, Except per Share) |
|
Earnings per diluted share
from continuing operations in accordance with
GAAP |
|
|
|
|
|
|
|
|
|
|
$ |
4.67 |
|
Impact of acquisition and integration expenses |
|
$ |
1.8 |
|
|
$ |
(0.5 |
) |
|
$ |
1.3 |
|
|
|
0.02 |
|
Adjusted earnings per diluted
share from continuing operations |
|
|
|
|
|
|
|
|
|
|
$ |
4.69 |
|
|
|
Three Months Ended September 30, 2021 |
|
|
|
Pretax |
|
|
Income Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
|
(In Millions, Except per Share) |
|
Earnings per diluted share
from continuing operations in accordance with
GAAP |
|
|
|
|
|
|
|
|
|
|
$ |
4.07 |
|
Impact of acquisition and integration expenses |
|
$ |
7.4 |
|
|
$ |
(1.8 |
) |
|
$ |
5.6 |
|
|
|
0.09 |
|
Impact of selling acquired inventory after its markup
to fair value as part of acquisition accounting |
|
$ |
8.1 |
|
|
$ |
(2.3 |
) |
|
$ |
5.8 |
|
|
|
0.09 |
|
Adjusted earnings per diluted
share from continuing operations |
|
|
|
|
|
|
|
|
|
|
$ |
4.25 |
|
|
|
Nine Months Ended September 30, 2022 |
|
|
|
Pretax |
|
|
Income Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
|
(In Millions, Except per Share) |
|
Earnings per diluted share
from continuing operations in accordance with
GAAP |
|
|
|
|
|
|
|
|
|
|
$ |
10.69 |
|
Impact of acquisition and integration expenses |
|
$ |
6.1 |
|
|
$ |
(1.4 |
) |
|
$ |
4.7 |
|
|
|
0.07 |
|
Impact of nonrecurring gain on divestiture |
|
$ |
(151.9 |
) |
|
$ |
43.6 |
|
|
$ |
(108.3 |
) |
|
|
(1.73 |
) |
Adjusted earnings per diluted
share from continuing operations |
|
|
|
|
|
|
|
|
|
|
$ |
9.03 |
|
|
|
Nine Months Ended September 30, 2021 |
|
|
|
Pretax |
|
|
Income Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
|
(In Millions, Except per Share) |
|
Earnings per diluted share
from continuing operations in accordance with
GAAP |
|
|
|
|
|
|
|
|
|
|
$ |
8.72 |
|
Impact of acquisition and integration expenses |
|
$ |
18.0 |
|
|
$ |
(4.2 |
) |
|
$ |
13.8 |
|
|
|
0.22 |
|
Impact of selling acquired inventory after its markup
to fair value as part of acquisition accounting |
|
$ |
15.7 |
|
|
$ |
(4.2 |
) |
|
$ |
11.5 |
|
|
|
0.18 |
|
Adjusted earnings per diluted
share from continuing operations |
|
|
|
|
|
|
|
|
|
|
$ |
9.12 |
|
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 |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Organic East Group -
Aggregates: |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price |
|
$ |
17.01 |
|
|
$ |
15.25 |
|
|
$ |
16.95 |
|
|
$ |
15.62 |
|
Adjustment for impact of
product, geographic and other mix |
|
|
(0.19 |
) |
|
|
|
|
|
(0.08 |
) |
|
|
|
Mix-adjusted ASP |
|
$ |
16.82 |
|
|
|
|
|
$ |
16.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
11.5 |
% |
|
|
|
|
|
8.5 |
% |
|
|
|
Mix-adjusted ASP variance |
|
|
10.3 |
% |
|
|
|
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic West Group -
Aggregates: |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
16.11 |
|
|
$ |
14.33 |
|
|
$ |
15.71 |
|
|
$ |
14.09 |
|
Adjustment for impact of
product, geographic and other mix |
|
|
0.11 |
|
|
|
|
|
|
(0.25 |
) |
|
|
|
Mix-adjusted ASP |
|
$ |
16.22 |
|
|
|
|
|
$ |
15.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
12.4 |
% |
|
|
|
|
|
11.5 |
% |
|
|
|
Mix-adjusted ASP variance |
|
|
13.2 |
% |
|
|
|
|
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Organic
Aggregates: |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
16.70 |
|
|
$ |
14.93 |
|
|
$ |
16.50 |
|
|
$ |
15.08 |
|
Adjustment for impact of
product, geographic and other mix |
|
|
(0.09 |
) |
|
|
|
|
|
(0.13 |
) |
|
|
|
Mix-adjusted ASP |
|
$ |
16.61 |
|
|
|
|
|
$ |
16.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
11.9 |
% |
|
|
|
|
|
9.4 |
% |
|
|
|
Mix-adjusted ASP variance |
|
|
11.3 |
% |
|
|
|
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cement: |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
149.24 |
|
|
$ |
122.91 |
|
|
$ |
139.64 |
|
|
$ |
120.29 |
|
Adjustment for impact of
product, geographic and other mix |
|
|
(0.97 |
) |
|
|
|
|
|
(0.72 |
) |
|
|
|
Mix-adjusted ASP |
|
$ |
148.27 |
|
|
|
|
|
$ |
138.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
21.4 |
% |
|
|
|
|
|
16.1 |
% |
|
|
|
Mix-adjusted ASP variance |
|
|
20.6 |
% |
|
|
|
|
|
15.5 |
% |
|
|
|
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