BIRMINGHAM, Ala., May 4, 2021 /PRNewswire/ -- Vulcan Materials
Company (NYSE: VMC), the nation's largest producer of construction
aggregates, today announced results for the quarter ended
March 31, 2021.
Financial and Operating Highlights:
- Net earnings were $161 million,
or $1.20 per diluted share
- Sale of reclaimed quarry produced net proceeds of $182 million and pretax gain of $115 million ($85
million after tax, or $0.64
per diluted share)
- First quarter Adjusted EBITDA was $244
million (excluding gain on land sale), a year-over-year
increase of 22 percent
- Aggregates unit profitability increased 12 percent
year-over-year to $4.82 per ton
- A disciplined approach to leveraging our capital base
contributed to an improvement in return on invested capital of 90
basis points to 14.8 percent
- Full-year 2021 Adjusted EBITDA guidance raised to between
$1.380 to $1.460 billion (excluding gain on sale of
land)
Tom Hill, Chairman and Chief Executive Officer, said, "Our first
quarter results are a testament to the resiliency of our
best-in-class aggregates business. While severe winter
weather conditions in February resulted in an uneven start to the
year, strong execution from our teams allowed us to drive earnings
growth and margin expansion. As the construction season got
underway during March, many of our key markets began to see
shipments rebound. Our four strategic disciplines helped us
grow our aggregates cash gross profit by 9 percent to $6.56 per ton."
Mr. Hill stated, "We continue to see strength in residential
construction activity, driven by single-family housing.
Recent growth in highway awards and construction employment trends
in our markets also bode well for further recovery in construction
activity later in 2021. Shipments into private nonresidential
continue to benefit from heavy industrial projects, such as data
centers and warehouses, while leading nonresidential indicators
suggest growth opportunities in other categories are on the
horizon. The pricing environment remains positive, and we
continue to execute at a high level, positioning us well for
2021. These trends in the key drivers of our aggregates
business lead us to an improved earnings outlook for the remainder
of the year."
Highlights as of March 31, 2021
include:
|
First
Quarter
|
|
Trailing-Twelve
Months
|
Amounts in millions,
except per unit data
|
2021
|
2020
|
|
2021
|
2020
|
Total
revenues
|
$1,068.3
|
$1,049.2
|
|
$4,875.9
|
$4,981.8
|
Gross
profit
|
$
229.3
|
$
201.7
|
|
$1,309.0
|
$1,265.9
|
Aggregates
segment
|
|
|
|
|
|
Segment
sales
|
$
894.9
|
$
868.2
|
|
$3,971.0
|
$4,023.5
|
Freight-adjusted
revenues
|
$
681.2
|
$
648.0
|
|
$3,040.8
|
$3,033.6
|
Gross
profit
|
$
223.6
|
$
194.1
|
|
$1,188.7
|
$1,155.1
|
Shipments
(tons)
|
46.4
|
45.0
|
|
209.7
|
214.9
|
Freight-adjusted
sales price per ton
|
$
14.67
|
$
14.39
|
|
$
14.50
|
$
14.12
|
Gross profit per
ton
|
$
4.82
|
$
4.31
|
|
$
5.67
|
$
5.38
|
Asphalt, Concrete
& Calcium segment gross profit
|
$
5.6
|
$
7.6
|
|
$
120.3
|
$
110.9
|
Selling,
Administrative and General (SAG)
|
$
88.6
|
$
86.4
|
|
$
361.9
|
$
366.7
|
SAG as % of total
revenues
|
8.3%
|
8.2%
|
|
7.4%
|
7.4%
|
Earnings from
continuing operations before income taxes
|
$
222.3
|
$
72.2
|
|
$
893.9
|
$
755.3
|
Net
earnings
|
$
160.6
|
$
60.3
|
|
$
684.8
|
$
614.6
|
Adjusted
EBIT
|
$
143.9
|
$
105.5
|
|
$
965.1
|
$
897.5
|
Adjusted
EBITDA
|
$
244.3
|
$
201.0
|
|
$1,366.8
|
$1,278.4
|
Earnings from
continuing operations per diluted share
|
$
1.21
|
$
0.45
|
|
$
5.17
|
$
4.64
|
Adjusted earnings
from continuing operations per diluted share
|
$
0.69
|
$
0.47
|
|
$
4.91
|
$
4.71
|
Segment Results
Aggregates
First quarter
segment sales increased 3 percent and gross profit increased 15
percent to $224 million. Gross
profit margin increased 260 basis points due to modest growth in
both volume and price as well as effective cost control.
Earnings improvement was widespread across the Company's
footprint.
Aggregates shipments increased 3 percent from the prior year's
first quarter. Average daily shipping rates were lower
year-over-year in February, though higher in January and
March. This cadence was due to winter weather that moved from
Texas into parts of the southeast
and mid-Atlantic during the month of February.
The pricing environment continues to be positive across the
Company's footprint as demand visibility continues to
improve. For the quarter, freight-adjusted pricing increased
2 percent (mix-adjusted pricing increased 1.3 percent).
Mix-adjusted pricing improved sequentially in March, reflecting
recently announced price increases in certain key markets.
Prices are expected to continue to increase sequentially during the
remainder of the year.
Operating efficiency gains helped drive year-over-year declines
in freight-adjusted unit cost of sales – down 2 percent in total
and 3 percent on a cash basis. Flexible operating plans and
disciplined cost control mitigated the impact of any operational
disruptions caused by the uneven start to the year.
Asphalt, Concrete and Calcium
Overall, nonaggregates
segments gross profit was collectively $5.6
million compared to $7.6
million in the prior year's first quarter. Asphalt
segment gross profit was a loss of $3.0
million, as compared to a loss of $2.4 million in the prior year's first
quarter. The year-over-year decline was driven mostly by the
impact of weather conditions in Alabama, Tennessee and Texas.
First quarter concrete segment gross profit was $7.8 million compared to $9.2 million in the prior year. Shipments
decreased 16 percent versus the prior year, again due to weather in
Virginia, and average selling
prices increased 3 percent compared to the prior year.
Calcium segment gross profit was $0.9
million, in line with the prior year quarter.
Selling, Administrative and General (SAG) and Other
Items
SAG expense was $89
million in the quarter and $362
million on a trailing-twelve month basis. As a
percentage of total revenues, SAG expense remained at 7.4 percent
on a trailing-twelve month basis. The Company remains focused
on further leveraging its overhead cost structure.
During the quarter, the Company sold a reclaimed quarry in
Southern California. The transaction resulted in a pretax
gain of $115 million, or $0.64 per diluted share. The Company
remains focused on its efforts to maximize the value of its
portfolio of quarry operations as they move through their
life-cycle of land management.
Other nonoperating income was $6
million, compared to expense of $9
million in the prior year quarter. The prior year's
results include a foreign currency translation loss of $6 million, resulting from the rapid devaluation
of the Mexican peso in March due to the COVID-19 pandemic.
Financial Position, Liquidity and Capital
Allocation
Capital expenditures in the first quarter were
$71 million, including both core
operating and maintenance projects as well as growth
projects. During the fourth quarter of 2020, the Company
restarted planned growth projects that were put on hold in the
first quarter of 2020 as a result of the pandemic. For the
full year 2021, the Company expects to spend between $450 and $475
million on capital expenditures, including growth
projects. The Company will continue to review its plans and
will adjust as needed.
At March 31, 2021, total debt to
trailing-twelve month Adjusted EBITDA was 2.0 times, or 1.4 times
on a net debt basis reflecting $891
million of cash on hand. As planned, the Company paid
off approximately $500 million of
debt maturities in March. The Company's weighted-average debt
maturity was 15 years, and its effective weighted-average interest
rate was 4.6 percent.
Return on invested capital increased 90 basis points
year-over-year to 14.8 percent driven by solid operating earnings
growth coupled with disciplined capital management and a balanced
approach to growth.
Outlook
Management expectations for 2021 include the
following updates:
- Aggregates shipments to increase between 1 percent and 4
percent compared to 2020
- An effective tax rate of approximately 23 to 24 percent
- Earnings from continuing operations of between $4.85 and $5.30 per
diluted share, excluding land sale gain
- Adjusted EBITDA of between $1.380
and $1.460 billion, excluding land
sale gain
- All other aspects of the Company's expectations for 2021 remain
unchanged from those reported as part of its fourth quarter
earnings in February.
Mr. Hill concluded, "We remain focused on factors within our
control, including pricing and cost actions, both of which will
drive further improvement in our industry-leading unit margins.
Our operating plans are underpinned by four strategic
disciplines (Commercial and Operational Excellence, Logistics
Innovation and Strategic Sourcing), a healthy balance sheet and the
engagement of our people. Our performance clearly
demonstrates that a balanced approach to growth, focusing on
organic investments, acquisitions, and greenfield developments is
the best way to create value for our shareholders."
Conference Call
Vulcan will host a conference call at
9:00 a.m. CT on May 4, 2021. A webcast will be available
via the Company's website at www.vulcanmaterials.com.
Investors and other interested parties may access the
teleconference live by calling 833-962-1439, or 832-900-4623 if
outside the U.S., approximately 10 minutes before the scheduled
start. The conference ID is 6357979. The conference
call will be recorded and available for replay at the Company's
website approximately two hours after the call.
About Vulcan Materials Company
Vulcan Materials
Company, a member of the S&P 500 Index with headquarters in
Birmingham, Alabama, is the
nation's largest producer of construction aggregates – primarily
crushed stone, sand and gravel – and a major producer of
aggregates-based construction materials, including asphalt and
ready-mixed concrete. For additional information about
Vulcan, go to www.vulcanmaterials.com.
FORWARD-LOOKING STATEMENT DISCLAIMER
This document
contains forward-looking statements. Statements that are not
historical fact, including statements about Vulcan's beliefs and
expectations, are forward-looking statements. Generally,
these statements relate to future financial performance, results of
operations, business plans or strategies, projected or anticipated
revenues, expenses, earnings (including EBITDA and other measures),
dividend policy, shipment volumes, pricing, levels of capital
expenditures, intended cost reductions and cost savings,
anticipated profit improvements and/or planned divestitures and
asset sales. These forward-looking statements are sometimes
identified by the use of terms and phrases such as "believe,"
"should," "would," "expect," "project," "estimate," "anticipate,"
"intend," "plan," "will," "can," "may" or similar expressions
elsewhere in this document. These statements are subject to
numerous risks, uncertainties, and assumptions, including but not
limited to general business conditions, competitive factors,
pricing, energy costs, and other risks and uncertainties discussed
in the reports Vulcan periodically files with the SEC.
Forward-looking statements are not guarantees of future
performance and actual results, developments, and business
decisions may vary significantly from those expressed in or implied
by the forward-looking statements. The following risks
related to Vulcan's business, among others, could cause actual
results to differ materially from those described in the
forward-looking statements: general economic and business
conditions; a pandemic, epidemic or other public health emergency,
such as the COVID-19 outbreak; Vulcan's dependence on the
construction industry, which is subject to economic cycles; the
timing and amount of federal, state and local funding for
infrastructure; changes in the level of spending for private
residential and private nonresidential construction; changes in
Vulcan's effective tax rate; the increasing reliance on information
technology infrastructure, including the risks that the
infrastructure does not work as intended, experiences technical
difficulties or is subjected to cyber-attacks; the impact of the
state of the global economy on Vulcan's businesses and financial
condition and access to capital markets; the highly competitive
nature of the construction industry; the impact of future
regulatory or legislative actions, including those relating to
climate change, wetlands, greenhouse gas emissions, the definition
of minerals, tax policy or international trade; the outcome of
pending legal proceedings; pricing of Vulcan's products; weather
and other natural phenomena, including the impact of climate change
and availability of water; energy costs; costs of hydrocarbon-based
raw materials; healthcare costs; the amount of long-term debt and
interest expense incurred by Vulcan; changes in interest rates; the
impact of a discontinuation of the London Interbank Offered Rate
(LIBOR); volatility in pension plan asset values and liabilities,
which may require cash contributions to the pension plans; the
impact of environmental cleanup costs and other liabilities
relating to existing and/or divested businesses; Vulcan's ability
to secure and permit aggregates reserves in strategically located
areas; Vulcan's ability to manage and successfully integrate
acquisitions; the effect of changes in tax laws, guidance and
interpretations; significant downturn in the construction industry
may result in the impairment of goodwill or long-lived assets;
changes in technologies, which could disrupt the way Vulcan does
business and how Vulcan's products are distributed; and other
assumptions, risks and uncertainties detailed from time to time in
the reports filed by Vulcan with the SEC. All forward-looking
statements in this communication are qualified in their entirety by
this cautionary statement. Vulcan disclaims and does not
undertake any obligation to update or revise any forward-looking
statement in this document except as required by law.
|
|
Table A
|
Vulcan Materials
Company
|
|
|
and Subsidiary
Companies
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
Three Months
Ended
|
Consolidated
Statements of Earnings
|
|
|
|
March
31
|
(Condensed and
unaudited)
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Total
revenues
|
|
$1,068,344
|
|
$1,049,242
|
Cost of
revenues
|
|
839,077
|
|
847,519
|
Gross
profit
|
|
229,267
|
|
201,723
|
Selling,
administrative and general expenses
|
|
88,593
|
|
86,430
|
Gain on sale of
property, plant & equipment
|
|
|
|
|
and
businesses
|
|
117,165
|
|
999
|
Other operating
expense, net
|
|
(8,326)
|
|
(3,991)
|
Operating
earnings
|
|
249,513
|
|
112,301
|
Other nonoperating
income (expense), net
|
|
5,913
|
|
(9,336)
|
Interest expense,
net
|
|
33,118
|
|
30,773
|
Earnings from
continuing operations
|
|
|
|
|
before income
taxes
|
|
222,308
|
|
72,192
|
Income tax
expense
|
|
60,638
|
|
12,194
|
Earnings from
continuing operations
|
|
161,670
|
|
59,998
|
Earnings (loss) on
discontinued operations, net of tax
|
|
(1,056)
|
|
260
|
Net
earnings
|
|
$160,614
|
|
$60,258
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
|
|
|
Continuing
operations
|
|
$1.22
|
|
$0.45
|
Discontinued
operations
|
|
($0.01)
|
|
$0.00
|
Net
earnings
|
|
$1.21
|
|
$0.45
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
Continuing
operations
|
|
$1.21
|
|
$0.45
|
Discontinued
operations
|
|
($0.01)
|
|
$0.00
|
Net
earnings
|
|
$1.20
|
|
$0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
|
|
|
Basic
|
|
132,749
|
|
132,567
|
Assuming
dilution
|
|
133,415
|
|
133,259
|
Effective tax rate
from continuing operations
|
|
27.3%
|
|
16.9%
|
|
|
|
|
|
|
|
|
Table B
|
Vulcan Materials
Company
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Consolidated
Balance Sheets
|
|
March
31
|
|
December
31
|
|
March
31
|
(Condensed and
unaudited)
|
|
2021
|
|
2020
|
|
2020
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$722,344
|
|
$1,197,068
|
|
$120,041
|
Restricted
cash
|
|
168,595
|
|
945
|
|
232
|
Accounts and notes
receivable
|
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
596,006
|
|
558,848
|
|
601,182
|
Allowance for
doubtful accounts
|
|
(2,878)
|
|
(2,551)
|
|
(3,517)
|
Accounts and notes
receivable, net
|
|
593,128
|
|
556,297
|
|
597,665
|
Inventories
|
|
|
|
|
|
|
Finished
products
|
|
368,758
|
|
378,389
|
|
403,612
|
Raw
materials
|
|
36,095
|
|
33,780
|
|
33,676
|
Products in
process
|
|
4,573
|
|
4,555
|
|
5,010
|
Operating supplies
and other
|
|
31,903
|
|
31,861
|
|
28,449
|
Inventories
|
|
441,329
|
|
448,585
|
|
470,747
|
Other current
assets
|
|
67,612
|
|
74,270
|
|
88,095
|
Total current
assets
|
|
1,993,008
|
|
2,277,165
|
|
1,276,780
|
Investments and
long-term receivables
|
|
34,265
|
|
34,301
|
|
57,987
|
Property, plant &
equipment
|
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
9,110,336
|
|
9,102,086
|
|
8,907,788
|
Allowances for
depreciation, depletion & amortization
|
|
(4,746,996)
|
|
(4,676,087)
|
|
(4,506,700)
|
Property, plant &
equipment, net
|
|
4,363,340
|
|
4,425,999
|
|
4,401,088
|
Operating lease
right-of-use assets, net
|
|
421,625
|
|
423,128
|
|
420,930
|
Goodwill
|
|
3,172,112
|
|
3,172,112
|
|
3,167,061
|
Other intangible
assets, net
|
|
1,114,617
|
|
1,123,544
|
|
1,083,515
|
Other noncurrent
assets
|
|
233,793
|
|
230,656
|
|
222,021
|
Total
assets
|
|
$11,332,760
|
|
$11,686,905
|
|
$10,629,382
|
Liabilities
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
15,436
|
|
515,435
|
|
25
|
Trade payables and
accruals
|
|
255,624
|
|
273,080
|
|
243,019
|
Other current
liabilities
|
|
294,797
|
|
259,368
|
|
232,632
|
Total current
liabilities
|
|
565,857
|
|
1,047,883
|
|
475,676
|
Long-term
debt
|
|
2,772,901
|
|
2,772,240
|
|
2,785,566
|
Deferred income
taxes, net
|
|
733,561
|
|
706,050
|
|
648,405
|
Deferred
revenue
|
|
172,377
|
|
174,045
|
|
178,568
|
Operating lease
liabilities
|
|
397,306
|
|
399,582
|
|
399,489
|
Other noncurrent
liabilities
|
|
554,517
|
|
559,775
|
|
551,352
|
Total
liabilities
|
|
$5,196,519
|
|
$5,659,575
|
|
$5,039,056
|
Equity
|
|
|
|
|
|
|
Common stock, $1 par
value
|
|
132,664
|
|
132,516
|
|
132,433
|
Capital in excess of
par value
|
|
2,797,687
|
|
2,802,012
|
|
2,782,738
|
Retained
earnings
|
|
3,385,604
|
|
3,274,107
|
|
2,885,084
|
Accumulated other
comprehensive loss
|
|
(179,714)
|
|
(181,305)
|
|
(209,929)
|
Total
equity
|
|
$6,136,241
|
|
$6,027,330
|
|
$5,590,326
|
Total liabilities and
equity
|
|
$11,332,760
|
|
$11,686,905
|
|
$10,629,382
|
|
|
Table C
|
Vulcan Materials
Company
|
|
|
and Subsidiary
Companies
|
|
|
|
|
(in
thousands)
|
|
|
Three Months
Ended
|
Consolidated
Statements of Cash Flows
|
|
|
|
March
31
|
(Condensed and
unaudited)
|
|
2021
|
|
2020
|
Operating
Activities
|
|
|
|
|
Net
earnings
|
|
|
|
$160,614
|
|
$60,258
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
100,368
|
|
95,480
|
Noncash operating
lease expense
|
|
10,528
|
|
8,851
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(117,165)
|
|
(999)
|
Contributions to
pension plans
|
|
(2,124)
|
|
(2,144)
|
Share-based
compensation expense
|
|
7,869
|
|
6,716
|
Deferred tax
expense
|
|
26,949
|
|
19,671
|
Changes in assets and
liabilities before initial
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(16,992)
|
|
(99,597)
|
Other, net
|
|
|
|
|
(785)
|
|
(5,761)
|
Net cash provided by
operating activities
|
|
$169,262
|
|
$82,475
|
Investing
Activities
|
|
|
|
|
Purchases of
property, plant & equipment
|
|
(100,650)
|
|
(142,650)
|
Proceeds from sale of
property, plant & equipment
|
|
186,497
|
|
2,536
|
Other, net
|
|
|
|
|
25
|
|
9,872
|
Net cash provided by
(used for) investing activities
|
|
$85,872
|
|
($130,242)
|
Financing
Activities
|
|
|
|
|
Payment of current
maturities and long-term debt
|
|
(500,006)
|
|
(6)
|
Settlements of
interest rate derivatives
|
|
0
|
|
(19,863)
|
Purchases of common
stock
|
|
0
|
|
(26,132)
|
Dividends
paid
|
|
|
|
(49,085)
|
|
(45,100)
|
Share-based
compensation, shares withheld for taxes
|
|
(12,086)
|
|
(15,064)
|
Other, net
|
|
|
|
|
(1,031)
|
|
(301)
|
Net cash used for
financing activities
|
|
($562,208)
|
|
($106,466)
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
(307,074)
|
|
(154,233)
|
Cash and cash
equivalents and restricted cash at beginning of year
|
|
1,198,013
|
|
274,506
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$890,939
|
|
$120,273
|
|
|
Table D
|
|
|
|
Segment Financial
Data and Unit Shipments
|
|
|
|
|
(in thousands, except
per unit data)
|
|
|
Three Months
Ended
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Total
Revenues
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
|
|
|
|
$894,909
|
|
$868,226
|
Asphalt
2
|
|
|
|
|
|
147,167
|
|
139,789
|
Concrete
|
|
|
|
|
|
81,359
|
|
94,765
|
Calcium
|
|
|
|
|
|
2,060
|
|
2,026
|
Segment
sales
|
|
|
|
|
|
$1,125,495
|
|
$1,104,806
|
Aggregates
intersegment sales
|
|
|
|
|
|
(57,151)
|
|
(55,564)
|
Total
revenues
|
|
|
|
|
|
$1,068,344
|
|
$1,049,242
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
$223,638
|
|
$194,131
|
Asphalt
|
|
|
|
|
|
|
(2,991)
|
|
(2,435)
|
Concrete
|
|
|
|
|
|
7,768
|
|
9,213
|
Calcium
|
|
|
|
|
|
|
|
|
852
|
|
814
|
Total
|
|
|
|
|
|
|
|
$229,267
|
|
$201,723
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
|
Aggregates
|
|
|
|
|
|
$80,808
|
|
$77,136
|
Asphalt
|
|
|
|
|
|
|
9,095
|
|
8,734
|
Concrete
|
|
|
|
|
|
3,952
|
|
4,082
|
Calcium
|
|
|
|
|
|
39
|
|
49
|
Other
|
|
|
|
|
|
|
|
6,474
|
|
5,479
|
Total
|
|
|
|
|
|
|
|
$100,368
|
|
$95,480
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
|
|
|
|
$681,155
|
|
$648,033
|
Aggregates -
tons
|
|
|
|
|
|
46,437
|
|
45,048
|
Freight-adjusted
sales price 4
|
|
|
|
|
|
$14.67
|
|
$14.39
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
Asphalt Mix -
tons
|
|
|
|
|
|
2,217
|
|
2,057
|
Asphalt Mix - sales
price
|
|
|
|
|
|
$56.78
|
|
$58.51
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete
- cubic yards
|
|
|
|
|
613
|
|
734
|
Ready-mixed concrete
- sales price
|
|
|
|
|
|
$131.52
|
|
$127.91
|
|
|
|
|
|
|
|
|
|
|
|
|
Calcium -
tons
|
|
|
|
|
|
75
|
|
73
|
Calcium - sales
price
|
|
|
|
|
|
$27.64
|
|
$27.56
|
|
1 Includes
product sales (crushed stone, sand and gravel, sand, and other
aggregates), as well as freight & delivery
|
costs that we pass
along to our customers, and service revenues related to
aggregates.
|
2 Includes
product sales, as well as service revenues from our asphalt
construction paving business.
|
3
Freight-adjusted revenues are Aggregates segment sales excluding
freight & delivery revenues and immaterial
|
other revenues related
to services, such as landfill tipping fees, that are derived from
our aggregates business.
|
4
Freight-adjusted sales price is calculated as freight-adjusted
revenues divided by aggregates unit shipments.
|
|
|
|
|
|
|
Appendix 1
|
1.
Reconciliation of Non-GAAP Measures
|
|
|
|
|
|
|
Aggregates segment
freight-adjusted revenues is not a Generally Accepted Accounting
Principle (GAAP) measure. We present this metric as it is
consistent with the basis by which we review our operating results.
We believe that this presentation is consistent with our
competitors and meaningful to our investors as it excludes revenues
associated with freight & delivery, which are pass-through
activities. It also excludes immaterial other revenues related to
services, such as landfill tipping fees, that are derived from our
aggregates business. Additionally, we use this metric as the basis
for calculating the average sales price of our aggregates products.
Reconciliation of this metric to its nearest GAAP measure is
presented below:
|
|
|
|
|
|
|
|
Aggregates Segment
Freight-Adjusted Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
per ton data)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Segment
sales
|
|
|
|
|
|
$894,909
|
|
$868,226
|
Less:
Freight & delivery revenues
1
|
|
|
|
|
|
197,226
|
|
205,707
|
Other revenues
|
|
|
|
|
|
16,528
|
|
14,486
|
Freight-adjusted
revenues
|
|
|
|
|
|
$681,155
|
|
$648,033
|
Unit shipment -
tons
|
|
|
|
|
|
46,437
|
|
45,048
|
Freight-adjusted
sales price
|
|
|
|
|
|
$14.67
|
|
$14.39
|
|
1At the
segment level, freight & delivery revenues include intersegment
freight & delivery (which are eliminated at the consolidated
level) and freight to remote
|
distribution
sites.
|
Aggregates segment
incremental gross profit flow-through rate is not a GAAP measure
and represents the year-over-year change in gross profit divided by
the year-over-year change in segment sales excluding freight &
delivery (revenues and costs). We present this metric as it is
consistent with the basis by which we review our operating results.
We believe that this presentation is consistent with our
competitors and meaningful to our investors as it excludes revenues
associated with freight & delivery, which are pass-through
activities. Reconciliation of this metric to its nearest GAAP
measure is presented below:
|
|
|
|
Aggregates Segment
Incremental Gross Profit Margin in Accordance with
GAAP
|
|
|
|
|
(dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
$223,638
|
|
$194,131
|
Segment
sales
|
|
|
|
|
|
$894,909
|
|
$868,226
|
Gross profit
margin
|
|
|
|
|
|
25.0%
|
|
22.4%
|
Incremental gross
profit margin
|
|
|
|
|
|
110.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates Segment
Incremental Gross Profit Flow-through Rate
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
$223,638
|
|
$194,131
|
Segment
sales
|
|
|
|
|
|
$894,909
|
|
$868,226
|
Less:
Freight & delivery revenues
1
|
|
|
|
|
|
197,226
|
|
205,707
|
Segment sales excluding freight & delivery
|
|
|
|
|
|
$697,683
|
|
$662,519
|
Gross profit margin
excluding freight & delivery
|
|
|
|
|
|
32.1%
|
|
29.3%
|
Incremental gross
profit flow-through rate
|
|
|
|
|
|
83.9%
|
|
|
|
1At the
segment level, freight & delivery revenues include intersegment
freight & delivery (which are eliminated at the consolidated
level) and freight to remote
|
distribution
sites.
|
GAAP does not define
"Aggregates segment cash gross profit" and it should not be
considered as an alternative to earnings measures defined by GAAP.
We and the investment community use this metric to assess the
operating performance of our business. Additionally, we present
this metric as we believe that it closely correlates to long-term
shareholder value. We do not use this metric as a measure to
allocate resources. Aggregates segment cash gross profit per ton is
computed by dividing Aggregates segment cash gross profit by tons
shipped. Reconciliation of this metric to its nearest GAAP measure
is presented below:
|
|
|
|
|
|
|
|
Aggregates Segment
Cash Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
per ton data)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
$223,638
|
|
$194,131
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
80,808
|
|
77,136
|
Aggregates segment cash
gross profit
|
|
|
|
|
|
$304,446
|
|
$271,267
|
Unit shipments -
tons
|
|
|
|
|
|
46,437
|
|
45,048
|
Aggregates segment
cash gross profit per ton
|
|
|
|
|
|
$6.56
|
|
$6.02
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 2
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP does not define
"Earnings Before Interest, Taxes, Depreciation and Amortization"
(EBITDA) and it should not be considered as an alternative to
earnings measures defined by GAAP. We use this metric to assess the
operating performance of our business and as a basis for strategic
planning and forecasting as we believe that it closely correlates
to long-term shareholder value. We do not use this metric as a
measure to allocate resources. We adjust EBITDA for certain items
to provide a more consistent comparison of earnings performance
from period to period. Reconciliation of this metric to its nearest
GAAP measure is presented below:
|
|
|
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
TTM
|
|
|
|
|
|
|
|
March
31
|
|
|
|
March
31
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
earnings
|
|
$160,614
|
|
$60,258
|
|
$684,836
|
|
$614,621
|
Income tax
expense
|
|
60,638
|
|
12,194
|
|
204,247
|
|
136,699
|
Interest expense,
net
|
|
33,118
|
|
30,773
|
|
136,738
|
|
126,839
|
(Earnings) loss on
discontinued operations, net of tax
|
|
1,056
|
|
(260)
|
|
4,831
|
|
3,945
|
EBIT
|
|
|
|
$255,426
|
|
$102,965
|
|
$1,030,652
|
|
$882,104
|
Depreciation,
depletion, accretion and amortization
|
|
100,368
|
|
95,480
|
|
401,694
|
|
380,895
|
EBITDA
|
|
|
$355,794
|
|
$198,445
|
|
$1,432,346
|
|
$1,262,999
|
Gain on sale of real estate and businesses, net
|
|
(114,695)
|
|
0
|
|
(114,695)
|
|
(9,289)
|
Property donation
|
|
0
|
|
0
|
|
0
|
|
10,847
|
Charges associated with divested operations
|
|
336
|
|
0
|
|
7,271
|
|
3,033
|
Business development 1
|
|
385
|
|
1,060
|
|
6,659
|
|
2,808
|
COVID-19 direct incremental costs
|
|
2,468
|
|
648
|
|
11,990
|
|
648
|
Pension settlement charge
|
|
0
|
|
0
|
|
22,740
|
|
0
|
Restructuring charges
|
|
0
|
|
868
|
|
465
|
|
7,325
|
Adjusted
EBITDA
|
|
$244,288
|
|
$201,021
|
|
$1,366,776
|
|
$1,278,371
|
Depreciation, depletion, accretion and amortization
|
|
(100,368)
|
|
(95,480)
|
|
(401,694)
|
|
(380,895)
|
Adjusted
EBIT
|
|
$143,920
|
|
$105,541
|
|
$965,082
|
|
$897,476
|
Adjusted EBITDA
margin
|
|
22.9%
|
|
19.2%
|
|
28.0%
|
|
25.7%
|
|
1Represents non-routine charges or gains
associated with acquisitions including the cost impact of purchase
accounting inventory valuations.
|
Similar to our
presentation of Adjusted EBITDA, we present Adjusted Diluted
earnings per share (EPS) from continuing operations to provide a
more consistent comparison of earnings performance from period to
period. This metric is not defined by GAAP and should not be
considered as an alternative to earnings measures defined by GAAP.
Reconciliation of this metric to its nearest GAAP measure is
presented below:
|
|
|
|
|
|
Adjusted Diluted
EPS from Continuing Operations (Adjusted Diluted
EPS)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
TTM
|
|
|
March
31
|
|
March
31
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Diluted EPS from
continuing operations
|
|
$1.21
|
|
$0.45
|
|
$5.17
|
|
$4.64
|
Items included in Adjusted
EBITDA above
|
|
(0.62)
|
|
0.02
|
|
(0.36)
|
|
0.07
|
Alabama NOL carryforward
valuation allowance
|
|
0.10
|
|
0.00
|
|
0.10
|
|
0.00
|
Adjusted Diluted
EPS
|
|
$0.69
|
|
$0.47
|
|
$4.91
|
|
$4.71
|
Net debt to Adjusted
EBITDA is not a GAAP measure and should not be considered as an
alternative to metrics defined by GAAP. We, the investment
community and credit rating agencies use this metric to assess our
leverage. Net debt subtracts cash and cash equivalents and
restricted cash from total debt. Reconciliation to its nearest GAAP
measure is presented below:
|
|
|
|
|
|
Net Debt to
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
2021
|
|
2020
|
Debt
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
$15,436
|
|
$25
|
Long-term
debt
|
|
2,772,901
|
|
2,785,566
|
Total debt
|
|
$2,788,337
|
|
$2,785,591
|
Less: Cash and cash
equivalents and restricted cash
|
|
890,939
|
|
120,273
|
Net debt
|
|
$1,897,398
|
|
$2,665,318
|
Trailing Twelve
Months (TTM) Adjusted EBITDA
|
|
$1,366,776
|
|
$1,278,371
|
Total debt to TTM
Adjusted EBITDA
|
|
2.0x
|
|
2.2x
|
Net debt to TTM
Adjusted EBITDA
|
|
1.4x
|
|
2.1x
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 3
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We define "Return on
Invested Capital" (ROIC) as Adjusted EBITDA for the trailing-twelve
months divided by average invested capital (as illustrated below)
during the trailing 5-quarters. Our calculation of ROIC is
considered a non-GAAP financial measure because we calculate ROIC
using the non-GAAP metric EBITDA. We believe that our ROIC metric
is meaningful because it helps investors assess how effectively we
are deploying our assets. Although ROIC is a standard financial
metric, numerous methods exist for calculating a company's ROIC. As
a result, the method we use to calculate our ROIC may differ from
the methods used by other companies. This metric is not defined by
GAAP and should not be considered as an alternative to earnings
measures defined by GAAP. Reconciliation of this metric to its
nearest GAAP measure is presented below:
|
|
|
|
|
|
|
|
|
|
Return on Invested
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
TTM
|
|
|
|
|
|
|
|
|
|
|
|
March
31
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Adjusted
EBITDA
|
|
|
|
|
|
$1,366,776
|
|
$1,278,371
|
Average invested
capital 1
|
|
|
|
|
|
|
|
|
Property, plant & equipment
|
|
|
|
|
|
$4,383,447
|
|
$4,314,098
|
Goodwill
|
|
|
|
|
|
3,171,102
|
|
3,166,018
|
Other intangible assets
|
|
|
|
|
|
1,108,672
|
|
1,081,741
|
Fixed and intangible assets
|
|
|
|
|
|
$8,663,221
|
|
$8,561,857
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
$1,968,479
|
|
$1,263,843
|
Less: Cash and cash equivalents
|
|
|
|
|
|
822,231
|
|
108,702
|
Less: Current tax
|
|
|
|
|
|
17,110
|
|
17,985
|
Adjusted current assets
|
|
|
|
|
|
1,129,138
|
|
1,137,156
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
839,612
|
|
573,944
|
Less: Current maturities of long-term debt
|
|
|
|
|
|
308,071
|
|
24
|
Less: Short-term debt
|
|
|
|
|
|
0
|
|
63,100
|
Adjusted current liabilities
|
|
|
|
|
|
531,541
|
|
510,820
|
Adjusted net working capital
|
|
|
|
|
|
$597,597
|
|
$626,336
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested
capital
|
|
|
|
|
|
$9,260,818
|
|
$9,188,193
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on invested
capital
|
|
|
|
|
|
14.8%
|
|
13.9%
|
1Average
invested capital is based on a trailing 5-quarters.
|
The following
reconciliation to the mid-point of the range of 2021 Projected
EBITDA excludes adjustments (as noted in Adjusted EBITDA above) as
they are difficult to forecast (timing or amount). Due to the
difficulty in forecasting such adjustments, we are unable to
estimate their significance. This metric is not defined by GAAP and
should not be considered as an alternative to earnings measures
defined by GAAP. Reconciliation of this metric to its nearest GAAP
measure is presented below:
|
|
|
|
|
|
|
|
|
|
2021 Projected
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Mid-point
|
Net
earnings
|
|
|
|
|
|
|
|
$680
|
Income tax
expense
|
|
|
|
|
|
|
|
210
|
Interest expense, net
of interest income
|
|
|
|
|
|
|
|
130
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
|
|
400
|
Projected
EBITDA
|
|
|
|
|
|
|
|
$1,420
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/vulcan-reports-first-quarter-2021-results-301283031.html
SOURCE Vulcan Materials Company