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

 

Vulcan Materials Company, Birmingham, AL. (PRNewsFoto/Vulcan Materials Company) (PRNewsFoto/) (PRNewsFoto/)

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/vulcan-reports-first-quarter-2021-results-301283031.html

SOURCE Vulcan Materials Company

Copyright 2021 PR Newswire

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