Strong Earnings and Margin Expansion
Underpinned by Uniquely Positioned Aggregates
Business
Fourth Quarter Earnings per Share Increased
89% and Gross Profit Margin Expanded 550 bps
Earnings Growth Expected Again in
2024
BIRMINGHAM, Ala., Feb. 16,
2024 /PRNewswire/ -- Vulcan Materials Company (NYSE:
VMC), the nation's largest producer of construction aggregates,
today announced results for the quarter and year ended December 31, 2023.
Financial Highlights Include:
|
Fourth
Quarter
|
|
Full
Year
|
|
Amounts in millions,
except per unit data
|
2023
|
2022
|
|
2023
|
2022
|
|
Total
revenues
|
$
1,834
|
$
1,732
|
|
$
7,782
|
$
7,315
|
|
Gross profit
|
$
472
|
$
350
|
|
$
1,949
|
$
1,558
|
|
Selling, Administrative
and General (SAG)
|
$
142
|
$
126
|
|
$
543
|
$
515
|
|
As % of Total
revenues
|
7.8 %
|
7.3 %
|
|
7.0 %
|
7.0 %
|
|
Net earnings
attributable to Vulcan
|
$
227
|
$
119
|
|
$
933
|
$
576
|
|
Adjusted
EBITDA
|
$
476
|
$
375
|
|
$
2,011
|
$
1,626
|
|
Earnings attributable
to Vulcan from
continuing operations per diluted
share
|
$
1.72
|
$
0.91
|
|
$
7.06
|
$
4.45
|
|
Adjusted earnings
attributable to Vulcan from
continuing operations per diluted
share
|
$
1.46
|
$
1.08
|
|
$
7.00
|
$
5.11
|
|
Aggregates
segment
|
|
|
|
|
|
|
Shipments
(tons)
|
55.3
|
54.2
|
|
234.3
|
236.3
|
|
Freight-adjusted sales
price per ton
|
$
19.32
|
$
16.96
|
|
$
19.00
|
$
16.40
|
|
Gross profit per
ton
|
$
7.67
|
$
6.04
|
|
$
7.40
|
$
5.96
|
|
Cash gross profit per
ton
|
$
9.92
|
$
8.19
|
|
$
9.46
|
$
7.83
|
Tom Hill, Vulcan Materials'
Chairman and Chief Executive Officer, said, "2023 was an
exceptional year for Vulcan Materials. We generated over
$2 billion in Adjusted EBITDA, a 24
percent increase over the prior year, expanded EBITDA margin by 360
basis points and generated $1.5
billion of operating cash flow that can be deployed to grow
our business. Our industry leading aggregates cash gross
profit per ton increased each quarter on a year-over-year basis and
was $9.46 per ton for the full year,
a 21 percent improvement over the prior year. Six consecutive
years of unit profitability improvement during a continuously
shifting macro backdrop demonstrates the durability of our uniquely
positioned aggregates-led business. We carry momentum into
2024, and our focus is the same - compounding unit margins through
all parts of the cycle and creating value for our shareholders
through improving returns on capital."
Fourth Quarter Segment Results
Aggregates
Fourth quarter segment gross profit
increased 30 percent to $424 million
($7.67 per ton), and gross profit
margin expanded 400 basis points. Cash gross profit improved
to $9.92 per ton resulting from
continued pricing momentum, solid execution and moderating
inflationary pressures. Improvements in unit profitability
were widespread across the Company's footprint and marked the
seventh consecutive quarter of year-over-year growth.
As compared to the prior year, fourth quarter aggregates
shipments increased 2 percent. Shipments in the prior year
were disrupted by abnormally wet and cold weather across the
majority of the Company's footprint. Certain markets in the
Southeast continued to benefit from industrial-related
nonresidential project activity.
The pricing environment remained positive with all markets
realizing year-over-year improvement in the fourth quarter.
Freight-adjusted selling prices increased 14 percent versus the
prior year. Freight-adjusted unit cash cost of sales
increased 7 percent, marking the third consecutive quarter of unit
cost deceleration on a trailing-twelve months basis. Unit
cost benefited from lower diesel prices and moderating inflationary
pressures on certain parts and supplies.
Asphalt, Concrete and Calcium
Fourth quarter Asphalt
segment gross profit was $36 million,
an increase of $19 million over the
prior year, and gross profit margin expanded 550 basis points to 13
percent. Shipments increased 20 percent, and price improved 2
percent. Cash gross profit was $45
million in the fourth quarter, an increase of 73 percent
versus the prior year. Fourth quarter Concrete segment gross
profit was $11 million versus
$5 million in the prior year.
Cash gross profit was $24
million, and unit cash gross profit improved 53 percent
despite lower volumes. Both the current and prior year
included results from now divested concrete assets. Calcium
segment gross profit was $0.6 million
compared to $1.1 million in the prior
year's fourth quarter.
Financial Position, Liquidity and Capital
Allocation
In 2023, cash provided by operating activities
was $1.5 billion, a 34 percent
increase over the prior year. Capital expenditures for maintenance
and growth projects were $243 million
in the fourth quarter and $625
million for the full year. The Company expects to
spend $625 to $675 million for maintenance and growth projects
in 2024.
As planned, the Company deployed $204
million of capital for opportunistic purchases of strategic
reserves in California,
North Carolina and Texas in the second half of the year.
Additionally, we completed the disposition of our concrete
operations in Texas during the
fourth quarter. The sale generated cash proceeds of
$485 million that is available to
redeploy into our aggregates-led franchise. During the
quarter, the Company also sold real estate in Northern Virginia for cash proceeds of
$66 million.
During the year, the Company returned $428 million to shareholders through $200 million of common stock repurchases and
$228 million of dividends. At
December 31, 2023, the ratio of total
debt to Adjusted EBITDA was 1.9 times, or 1.5 times on a net debt
basis, reflecting over $900 million
of cash on hand. The Company's weighted-average debt maturity
was 10 years, and the effective weighted average interest rate was
4.9 percent. On a trailing-twelve months basis, return on
average invested capital improved 280 basis points to 16.3 percent
through a combination of solid operating earnings and disciplined
capital management.
Outlook
Regarding the Company's outlook, Mr. Hill said, "We are well
positioned to deliver another year of earnings growth and strong
cash generation in 2024. The pricing environment remains
positive, and we expect pricing momentum and operational execution
will lead to attractive expansion in aggregates unit profitability,
regardless of the macro demand environment."
Management expectations for 2024 include:
- Continued improvement in Aggregates segment cash gross profit
per ton ($9.46 in 2023)
- Total shipments flat to down 4 percent (234.3 million tons in
2023)
- Freight-adjusted price improvement of 10 to 12 percent
($19.00 in 2023)
- Mid-single digit increase in freight-adjusted cash cost
(freight-adjusted price less segment cash gross profit per ton;
$9.54 in 2023)
- Total Asphalt, Concrete and Calcium segment cash gross profit
of approximately $275 million
($323 million in 2023; which included
approximately 4 million cubic yards from concrete operations
divested in late 2023)
- Relative contribution of approximately 70 percent asphalt and
30 percent concrete
- Selling, Administrative and General expenses of $550 to $560
million ($543 million in
2023)
- Interest expense of approximately $155
million
- Depreciation, depletion, accretion and amortization expense of
approximately $610 million
- An effective tax rate of 22 to 23 percent
- Net earnings attributable to Vulcan of $1.07 to $1.19
billion
- Adjusted EBITDA between $2.15 and
$2.30 billion
Conference Call
Vulcan will host a conference call at
9:00 a.m. CT on February 16, 2024. 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 800-274-8461,
or 203-518-9814 if outside the U.S. The conference ID is
4460325. 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 supplier 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.
Non-GAAP Financial Measures
Because GAAP financial
measures on a forward-looking basis are not accessible, and
reconciling information is not available without unreasonable
effort, we have not provided reconciliations for forward-looking
non-GAAP measures, other than the reconciliation of Projected
Adjusted EBITDA as included in Appendix 2 hereto. For the same
reasons, we are unable to address the probable significance of the
unavailable information, which could be material to future
results.
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; domestic and global political, economic or diplomatic
developments; a pandemic, epidemic or other public health
emergency; 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; international business operations and relationships,
including recent actions taken by the Mexican government with
respect to Vulcan's property and operations in that country; the
highly competitive nature of the construction industry; the impact
of future regulatory or legislative actions, including those
relating to climate change, biodiversity, land use, wetlands,
greenhouse gas emissions, the definition of minerals, tax policy
and domestic and 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; availability and cost of trucks, railcars,
barges and ships as well as their licensed operators for transport
of Vulcan's materials; energy costs; costs of hydrocarbon-based raw
materials; healthcare costs; labor relations, shortages and
constraints; the amount of long-term debt and interest expense
incurred by Vulcan; changes in interest rates; 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; the risks of open pit and
underground mining; expectations relating to environmental, social
and governance considerations; claims that our products do not meet
regulatory requirements or contractual specifications; 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.
Investor Contact: Mark Warren (205) 298-3220
Media Contact: Jack Bonnikson (205) 298-3220
|
|
|
|
|
|
|
|
|
|
Table A
|
|
Vulcan Materials
Company
|
|
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per share data)
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
Consolidated
Statements of Earnings
|
|
December
31
|
|
December
31
|
|
(Condensed and
unaudited)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$1,834.3
|
|
$1,731.9
|
|
$7,781.9
|
|
$7,315.2
|
|
Cost of
revenues
|
|
(1,362.1)
|
|
(1,382.0)
|
|
(5,833.4)
|
|
(5,757.5)
|
|
Gross profit
|
|
472.2
|
|
349.9
|
|
1,948.5
|
|
1,557.7
|
|
Selling, administrative
and general expenses
|
|
(142.4)
|
|
(126.4)
|
|
(542.8)
|
|
(515.1)
|
|
Gain (loss) on sale of
property, plant & equipment
|
|
|
|
|
|
|
|
|
|
and
businesses
|
|
53.7
|
|
(17.7)
|
|
76.4
|
|
10.7
|
|
Loss on
impairments
|
|
0.0
|
|
(0.1)
|
|
(28.3)
|
|
(67.9)
|
|
Other operating
expense, net
|
|
(13.4)
|
|
(14.2)
|
|
(26.4)
|
|
(34.0)
|
|
Operating
earnings
|
|
370.1
|
|
191.5
|
|
1,427.4
|
|
951.4
|
|
Other nonoperating
income (expense), net
|
|
2.6
|
|
6.9
|
|
(2.7)
|
|
5.1
|
|
Interest expense,
net
|
|
(37.4)
|
|
(47.6)
|
|
(179.6)
|
|
(168.4)
|
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
|
before income
taxes
|
|
335.3
|
|
150.8
|
|
1,245.1
|
|
788.1
|
|
Income tax
expense
|
|
(105.0)
|
|
(28.5)
|
|
(299.4)
|
|
(193.0)
|
|
Earnings from
continuing operations
|
|
230.3
|
|
122.3
|
|
945.7
|
|
595.1
|
|
Loss on discontinued
operations, net of tax
|
|
(2.2)
|
|
(2.5)
|
|
(10.8)
|
|
(18.6)
|
|
Net earnings
|
|
|
|
228.1
|
|
119.8
|
|
934.9
|
|
576.5
|
|
Earnings attributable
to noncontrolling interest
|
|
(0.6)
|
|
(0.4)
|
|
(1.7)
|
|
(0.9)
|
|
Net earnings
attributable to Vulcan
|
|
$227.5
|
|
$119.4
|
|
$933.2
|
|
$575.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.73
|
|
$0.92
|
|
$7.10
|
|
$4.47
|
|
Discontinued
operations
|
|
($0.02)
|
|
($0.02)
|
|
($0.08)
|
|
($0.14)
|
|
Net earnings
|
|
$1.71
|
|
$0.90
|
|
$7.02
|
|
$4.33
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share attributable to Vulcan
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.72
|
|
$0.91
|
|
$7.06
|
|
$4.45
|
|
Discontinued
operations
|
|
($0.02)
|
|
($0.02)
|
|
($0.08)
|
|
($0.14)
|
|
Net earnings
|
|
$1.70
|
|
$0.89
|
|
$6.98
|
|
$4.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
132.7
|
|
133.0
|
|
133.0
|
|
133.0
|
|
Assuming
dilution
|
|
133.5
|
|
133.7
|
|
133.7
|
|
133.6
|
|
Effective tax rate from
continuing operations
|
|
31.3 %
|
|
18.9 %
|
|
24.0 %
|
|
24.5 %
|
|
|
|
|
|
|
Table B
|
|
Vulcan Materials
Company
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
Consolidated Balance
Sheets
|
|
December
31
|
|
December
31
|
|
(Condensed and
unaudited)
|
|
2023
|
|
2022
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$931.1
|
|
$161.4
|
|
Restricted
cash
|
|
18.1
|
|
0.1
|
|
Accounts and notes
receivable
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
903.3
|
|
1,056.2
|
|
Allowance for credit
losses
|
|
(13.6)
|
|
(10.9)
|
|
Accounts and notes
receivable, net
|
|
889.7
|
|
1,045.3
|
|
Inventories
|
|
|
|
|
|
Finished
products
|
|
494.4
|
|
439.3
|
|
Raw
materials
|
|
51.2
|
|
63.4
|
|
Products in
process
|
|
6.5
|
|
6.0
|
|
Operating supplies and
other
|
|
63.5
|
|
70.6
|
|
Inventories
|
|
615.6
|
|
579.3
|
|
Other current
assets
|
|
70.4
|
|
115.9
|
|
Total current
assets
|
|
2,524.9
|
|
1,902.0
|
|
Investments and
long-term receivables
|
|
31.3
|
|
31.8
|
|
Property, plant &
equipment
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
11,835.5
|
|
11,306.4
|
|
Allowances for
depreciation, depletion & amortization
|
|
(5,617.8)
|
|
(5,255.1)
|
|
Property, plant &
equipment, net
|
|
6,217.7
|
|
6,051.3
|
|
Operating lease
right-of-use assets, net
|
|
511.7
|
|
572.6
|
|
Goodwill
|
|
3,531.7
|
|
3,689.6
|
|
Other intangible
assets, net
|
|
1,460.7
|
|
1,702.1
|
|
Other noncurrent
assets
|
|
267.7
|
|
285.2
|
|
Total assets
|
|
$14,545.7
|
|
$14,234.6
|
|
Liabilities
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
0.5
|
|
0.5
|
|
Short-term
debt
|
|
0.0
|
|
100.0
|
|
Trade payables and
accruals
|
|
390.4
|
|
454.5
|
|
Other current
liabilities
|
|
406.7
|
|
401.6
|
|
Total current
liabilities
|
|
797.6
|
|
956.6
|
|
Long-term
debt
|
|
3,877.3
|
|
3,875.2
|
|
Deferred income taxes,
net
|
|
1,028.9
|
|
1,072.8
|
|
Deferred
revenue
|
|
145.3
|
|
159.8
|
|
Noncurrent operating
lease liabilities
|
|
507.4
|
|
548.4
|
|
Other noncurrent
liabilities
|
|
681.3
|
|
669.6
|
|
Total
liabilities
|
|
$7,037.8
|
|
$7,282.4
|
|
Equity
|
|
|
|
|
|
Common stock, $1 par
value
|
|
132.1
|
|
132.9
|
|
Capital in excess of
par value
|
|
2,880.1
|
|
2,839.0
|
|
Retained
earnings
|
|
4,615.0
|
|
4,111.4
|
|
Accumulated other
comprehensive loss
|
|
(143.8)
|
|
(154.7)
|
|
Total shareholder's
equity
|
|
7,483.4
|
|
6,928.6
|
|
Noncontrolling
interest
|
|
24.5
|
|
23.6
|
|
Total equity
|
|
$7,507.9
|
|
$6,952.2
|
|
Total liabilities and
equity
|
|
$14,545.7
|
|
$14,234.6
|
|
|
|
|
|
|
|
Table C
|
|
Vulcan Materials
Company
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
Twelve Months
Ended
|
|
Consolidated
Statements of Cash Flows
|
|
December
31
|
|
(Condensed and
unaudited)
|
|
2023
|
|
2022
|
|
Operating
Activities
|
|
|
|
|
|
Net earnings
|
|
|
|
$934.9
|
|
$576.5
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
617.0
|
|
587.5
|
|
Noncash operating lease
expense
|
|
53.9
|
|
60.3
|
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(76.4)
|
|
(10.7)
|
|
Loss on
impairments
|
|
28.3
|
|
67.9
|
|
Contributions to
pension plans
|
|
(7.4)
|
|
(7.8)
|
|
Share-based
compensation expense
|
|
63.2
|
|
41.1
|
|
Deferred income taxes,
net
|
|
(43.3)
|
|
57.7
|
|
Changes in assets and
liabilities before initial
|
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(47.3)
|
|
(248.5)
|
|
Other, net
|
|
|
|
|
13.9
|
|
24.2
|
|
Net cash provided by
operating activities
|
|
$1,536.8
|
|
$1,148.2
|
|
Investing
Activities
|
|
|
|
|
|
Purchases of property,
plant & equipment
|
|
(872.6)
|
|
(612.6)
|
|
Proceeds from sale of
property, plant & equipment
|
|
94.6
|
|
38.7
|
|
Proceeds from sale of
businesses
|
|
613.6
|
|
50.0
|
|
Payment for businesses
acquired, net of acquired cash and adjustments
|
|
0.9
|
|
(529.2)
|
|
Other, net
|
|
|
|
|
0.0
|
|
0.1
|
|
Net cash used for
investing activities
|
|
($163.5)
|
|
($1,053.0)
|
|
Financing
Activities
|
|
|
|
|
|
Proceeds from
short-term debt
|
|
166.1
|
|
1,361.0
|
|
Payment of short-term
debt
|
|
(266.1)
|
|
(1,261.0)
|
|
Payment of current
maturities and long-term debt
|
|
(550.5)
|
|
(557.7)
|
|
Proceeds from issuance
of long-term debt
|
|
550.0
|
|
550.0
|
|
Debt issuance and
exchange costs
|
|
(3.4)
|
|
(2.8)
|
|
Payment of finance
leases
|
|
(30.8)
|
|
(33.8)
|
|
Purchases of common
stock
|
|
(200.0)
|
|
0.0
|
|
Dividends
paid
|
|
|
|
(228.4)
|
|
(212.6)
|
|
Share-based
compensation, shares withheld for taxes
|
|
(21.9)
|
|
(18.5)
|
|
Distribution to
noncontrolling interest
|
|
(0.8)
|
|
0.0
|
|
Other, net
|
|
|
|
|
0.2
|
|
0.2
|
|
Net cash used for
financing activities
|
|
($585.6)
|
|
($175.2)
|
|
Net increase (decrease)
in cash and cash equivalents and restricted cash
|
|
787.7
|
|
(80.0)
|
|
Cash and cash
equivalents and restricted cash at beginning of year
|
|
161.5
|
|
241.5
|
|
Cash and cash
equivalents and restricted cash at end of year
|
|
$949.2
|
|
$161.5
|
|
|
|
|
|
|
|
|
|
|
|
Table D
|
|
Segment Financial
Data and Unit Shipments
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except
per unit data)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31
|
|
December
31
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
$1,411.0
|
|
$1,259.3
|
|
$5,909.9
|
|
$5,272.8
|
|
Asphalt
2
|
|
286.4
|
|
238.1
|
|
1,140.7
|
|
990.2
|
|
Concrete
|
|
256.0
|
|
360.5
|
|
1,249.3
|
|
1,593.9
|
|
Calcium
|
|
2.0
|
|
2.4
|
|
9.0
|
|
7.8
|
|
Segment
sales
|
|
$1,955.4
|
|
$1,860.3
|
|
$8,308.9
|
|
$7,864.7
|
|
Aggregates intersegment
sales
|
|
(121.1)
|
|
(128.4)
|
|
(527.0)
|
|
(549.5)
|
|
Total
revenues
|
|
$1,834.3
|
|
$1,731.9
|
|
$7,781.9
|
|
$7,315.2
|
|
Gross
Profit
|
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$423.9
|
|
$327.1
|
|
$1,733.6
|
|
$1,408.5
|
|
Asphalt
|
|
|
36.3
|
|
17.1
|
|
149.6
|
|
57.3
|
|
Concrete
|
|
11.4
|
|
4.6
|
|
62.1
|
|
89.3
|
|
Calcium
|
|
|
|
|
0.6
|
|
1.1
|
|
3.2
|
|
2.6
|
|
Total
|
|
|
|
$472.2
|
|
$349.9
|
|
$1,948.5
|
|
$1,557.7
|
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$124.7
|
|
$116.7
|
|
$482.2
|
|
$441.1
|
|
Asphalt
|
|
|
8.9
|
|
9.1
|
|
35.6
|
|
35.1
|
|
Concrete
|
|
12.4
|
|
19.6
|
|
72.8
|
|
83.1
|
|
Calcium
|
|
0.1
|
|
0.1
|
|
0.2
|
|
0.2
|
|
Other
|
|
|
|
6.4
|
|
7.0
|
|
26.2
|
|
28.0
|
|
Total
|
|
|
|
$152.5
|
|
$152.5
|
|
$617.0
|
|
$587.5
|
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
$1,068.6
|
|
$918.7
|
|
$4,452.3
|
|
$3,875.2
|
|
Aggregates -
tons
|
|
55.3
|
|
54.2
|
|
234.3
|
|
236.3
|
|
Freight-adjusted sales
price 4
|
|
$19.32
|
|
$16.96
|
|
$19.00
|
|
$16.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
|
Asphalt Mix -
tons
|
|
3.3
|
|
2.8
|
|
13.4
|
|
12.2
|
|
Asphalt Mix - sales
price 5
|
|
$76.92
|
|
$75.06
|
|
$75.76
|
|
$71.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete -
cubic yards
|
|
1.5
|
|
2.3
|
|
7.5
|
|
10.5
|
|
Ready-mixed concrete -
sales price 5
|
|
$173.83
|
|
$157.58
|
|
$166.95
|
|
$150.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
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.
|
|
|
|
5
Sales price is calculated by dividing
revenues generated from the shipment of product (excluding service
revenues
|
|
generated by the
segments) by total units of the product shipped.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 1
|
|
|
|
Reconciliation of Non-GAAP
Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates segment
freight-adjusted revenues is not a Generally Accepted Accounting
Principle (GAAP) measure and should not be considered as
an
alternative to metrics defined by GAAP. 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 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
December 31
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
Aggregates segment
|
|
|
|
|
|
|
|
|
|
|
|
Segment
sales
|
|
$1,411.0
|
|
$1,259.3
|
|
$5,909.9
|
|
$5,272.8
|
|
|
|
Freight & delivery
revenues 1
|
|
(309.4)
|
|
(318.4)
|
|
(1,350.2)
|
|
(1,291.3)
|
|
|
|
Other
revenues
|
|
(33.0)
|
|
(22.2)
|
|
(107.4)
|
|
(106.3)
|
|
|
|
Freight-adjusted
revenues
|
|
$1,068.6
|
|
$918.7
|
|
$4,452.3
|
|
$3,875.2
|
|
|
|
Unit shipments -
tons
|
|
55.3
|
|
54.2
|
|
234.3
|
|
236.3
|
|
|
|
Freight-adjusted sales
price
|
|
$19.32
|
|
$16.96
|
|
$19.00
|
|
$16.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 At 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
"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. Cash gross profit adds back noncash
charges for depreciation, depletion, accretion and amortization to
gross profit. Segment
cash gross profit per unit is computed by dividing segment cash
gross profit by units shipped. Reconciliation of this metric to its
nearest GAAP measure is
presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
December 31
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
Aggregates segment
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$423.9
|
|
$327.1
|
|
$1,733.6
|
|
$1,408.5
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
124.7
|
|
116.7
|
|
482.2
|
|
441.1
|
|
|
|
Aggregates segment cash
gross profit
|
|
$548.6
|
|
$443.8
|
|
$2,215.8
|
|
$1,849.6
|
|
|
|
Unit shipments -
tons
|
|
55.3
|
|
54.2
|
|
234.3
|
|
236.3
|
|
|
|
Aggregates segment
gross profit per ton
|
|
$7.67
|
|
$6.04
|
|
$7.40
|
|
$5.96
|
|
|
|
Aggregates segment cash
gross profit per ton
|
|
$9.92
|
|
$8.19
|
|
$9.46
|
|
$7.83
|
|
|
|
Asphalt segment
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$36.3
|
|
$17.1
|
|
$149.6
|
|
$57.3
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
8.9
|
|
9.1
|
|
35.6
|
|
35.1
|
|
|
|
Asphalt segment cash
gross profit
|
|
$45.2
|
|
$26.2
|
|
$185.2
|
|
$92.4
|
|
|
|
Concrete segment
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$11.4
|
|
$4.6
|
|
$62.1
|
|
$89.3
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
12.4
|
|
19.6
|
|
72.8
|
|
83.1
|
|
|
|
Concrete segment cash
gross profit
|
|
$23.8
|
|
$24.2
|
|
$134.9
|
|
$172.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (numbers may not foot due to rounding):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
December 31
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
Net earnings
attributable to Vulcan
|
|
$227.5
|
|
$119.4
|
|
$933.2
|
|
$575.6
|
|
|
|
Income tax expense,
including discontinued operations
|
|
104.2
|
|
27.5
|
|
295.6
|
|
186.5
|
|
|
|
Interest expense,
net
|
|
37.4
|
|
47.6
|
|
179.6
|
|
168.4
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
152.5
|
|
152.5
|
|
617.0
|
|
587.5
|
|
|
|
EBITDA
|
|
|
$521.6
|
|
$346.9
|
|
$2,025.4
|
|
$1,517.9
|
|
|
|
Loss on discontinued
operations
|
|
$3.0
|
|
$3.5
|
|
$14.7
|
|
$25.2
|
|
|
|
(Gain) loss on sale of
real estate and businesses, net
|
|
(51.9)
|
|
17.4
|
|
(67.1)
|
|
(6.1)
|
|
|
|
Charges associated with
divested operations
|
|
3.3
|
|
2.8
|
|
7.9
|
|
3.8
|
|
|
|
Acquisition related
charges 1
|
|
0.1
|
|
4.1
|
|
2.1
|
|
17.1
|
|
|
|
Loss on
impairments
|
|
0.0
|
|
0.0
|
|
28.3
|
|
67.8
|
|
|
|
Adjusted
EBITDA
|
|
$476.1
|
|
$374.7
|
|
$2,011.3
|
|
$1,625.6
|
|
|
|
1 Represents charges associated with
acquisitions requiring clearance under federal antitrust laws. U.S.
Concrete acquisition related costs in 2022 include the
cost impact of purchase accounting inventory valuations of $4.1
million and change in control severance and retention charges of
$7.2 million.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Similar to our
presentation of Adjusted EBITDA, we present Adjusted diluted
earnings per share (EPS) attributable to Vulcan 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:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS attributable to Vulcan from
Continuing Operations (Adjusted Diluted EPS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
December 31
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
Net earnings
attributable to Vulcan
|
|
$1.70
|
|
$0.89
|
|
$6.98
|
|
$4.31
|
|
|
|
Items included in
Adjusted EBITDA above, net of tax
|
|
(0.25)
|
|
0.15
|
|
(0.08)
|
|
0.69
|
|
|
|
NOL carryforward
valuation allowance
|
|
0.01
|
|
0.04
|
|
0.10
|
|
0.11
|
|
|
|
Adjusted diluted EPS
attributable to Vulcan from
|
|
|
|
|
|
|
|
|
|
|
|
continuing
operations
|
|
$1.46
|
|
$1.08
|
|
$7.00
|
|
$5.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected EBITDA 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:
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|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
2024 Projected EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-point
|
|
|
|
Net earnings
attributable to Vulcan
|
|
|
|
|
|
|
|
$1,130
|
|
|
|
Income tax expense,
including discontinued operations
|
|
|
|
|
|
|
|
330
|
|
|
|
Interest expense, net
of interest income
|
|
|
|
|
|
|
|
155
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
|
|
610
|
|
|
|
Projected
EBITDA
|
|
|
|
|
|
|
|
$2,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Because GAAP financial
measures on a forward-looking basis are not accessible, and
reconciling information is not available without unreasonable
effort,
we have not provided reconciliations for forward-looking non-GAAP
measures, other than the reconciliation of Projected EBITDA as
noted above. For the
same reasons, we are unable to address the probable significance of
the unavailable information, which could be material to future
results.
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|
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|
|
|
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|
|
Appendix 3
|
|
|
|
Reconciliation of Non-GAAP Measures
(Continued)
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 of this metric to its nearest GAAP measure is
presented below:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
|
|
|
|
|
|
$0.5
|
|
$0.5
|
|
|
|
Short-term
debt
|
|
|
|
|
|
|
|
0.0
|
|
100.0
|
|
|
|
Long-term
debt
|
|
|
|
|
|
|
|
3,877.3
|
|
3,875.2
|
|
|
|
Total debt
|
|
|
|
|
|
|
|
$3,877.8
|
|
$3,975.7
|
|
|
|
Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
(949.2)
|
|
(161.5)
|
|
|
|
Net debt
|
|
|
|
|
|
|
|
$2,928.6
|
|
$3,814.2
|
|
|
|
Trailing-Twelve Months
(TTM) Adjusted EBITDA
|
|
|
|
|
|
|
|
$2,011.3
|
|
$1,625.6
|
|
|
|
Total debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
|
|
1.9x
|
|
2.4x
|
|
|
|
Net debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
|
|
1.5x
|
|
2.3x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (numbers may not foot due to rounding):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Invested Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
$2,011.3
|
|
$1,625.6
|
|
|
|
Average invested
capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment, net
|
|
|
|
|
|
|
|
$6,106.3
|
|
$5,810.4
|
|
|
|
Goodwill
|
|
|
|
|
|
|
|
3,626.5
|
|
3,708.5
|
|
|
|
Other intangible
assets
|
|
|
|
|
|
|
|
1,593.4
|
|
1,737.5
|
|
|
|
Fixed and intangible
assets
|
|
|
|
|
|
|
|
$11,326.2
|
|
$11,256.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
$2,192.9
|
|
$1,898.8
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
(352.8)
|
|
(161.3)
|
|
|
|
Current tax
|
|
|
|
|
|
|
|
(32.7)
|
|
(47.2)
|
|
|
|
Adjusted current
assets
|
|
|
|
|
|
|
|
1,807.4
|
|
1,690.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
833.7
|
|
1,002.1
|
|
|
|
Current maturities of
long-term debt
|
|
|
|
|
|
|
|
(0.5)
|
|
(2.1)
|
|
|
|
Short-term
debt
|
|
|
|
|
|
|
|
(20.0)
|
|
(137.6)
|
|
|
|
Adjusted current
liabilities
|
|
|
|
|
|
|
|
813.2
|
|
862.4
|
|
|
|
Adjusted net working
capital
|
|
|
|
|
|
|
|
$994.2
|
|
$827.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested
capital
|
|
|
|
|
|
|
|
$12,320.4
|
|
$12,084.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on invested
capital
|
|
|
|
|
|
|
|
16.3 %
|
|
13.5 %
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/vulcan-reports-fourth-quarter-and-full-year-2023-results-302064052.html
SOURCE Vulcan Materials Company