BIRMINGHAM, Ala., Aug. 4, 2021 /PRNewswire/ -- Vulcan Materials
Company (NYSE: VMC), the nation's largest producer of construction
aggregates, today announced results for the quarter ended
June 30, 2021.
Second Quarter Financial and Operating Highlights:
- Net earnings were $195 million,
or $1.46 per diluted share
-
- Net earnings include $0.10 per
diluted share related to financing costs associated with the
proposed acquisition of U.S. Concrete and other non-routine charges
excluded from Adjusted EBITDA
- Second quarter Adjusted EBITDA was $406
million
- Aggregates gross profit increased $23
million, or 6 percent, to $374
million
- Non-aggregates gross profit declined $21
million to $25 million
- Announced U.S. Concrete acquisition, which is expected to close
in the second half of 2021
- Reiterate full-year 2021 Adjusted EBITDA guidance between
$1.380 to $1.460 billion (excluding the gain from a land
sale completed in the first quarter and the U.S. Concrete
acquisition announced June 7,
2021)
Tom Hill, Chairman and Chief
Executive Officer, said, "Our performance in the first half of 2021
has been supported by consistent execution on Vulcan's four
strategic disciplines. Our team's efforts have allowed us to expand
our aggregates gross profit margin by 150 basis points and increase
our cash gross profit per ton by 5 percent. Despite energy
inflation and disruptive weather in the second quarter, aggregates
gross profit margin improved 40 basis points, and cash gross profit
grew by 2 percent to $7.83 per ton.
Across our business, energy inflation reduced earnings by
$25 million in the quarter,
$15 million due to diesel and
$10 million due to liquid
asphalt. Lower non-aggregates earnings dampened an otherwise
strong performance."
Mr. Hill continued, "We expect to carry forward the progress we
have made through the first half of 2021 and will continue to
diligently navigate the changing macro environment. Recent pricing
actions across much of our footprint and a keen focus on improving
operating efficiencies will continue to help offset spikes in
certain input costs. The flexibility of our operating plans will
enable us to maintain a high level of performance during the second
half of the year and achieve our full-year 2021 targets. We remain
excited and focused on closing the proposed acquisition of U.S.
Concrete, which will expand Vulcan's footprint in attractive
geographies and accelerate our growth strategy."
Highlights as of June 30, 2021
include:
|
Second
Quarter
|
|
Year-to-Date
|
|
Trailing-Twelve-Months
|
Amounts in millions,
except per unit data
|
2021
|
2020
|
|
2021
|
2020
|
|
2021
|
2020
|
Total
revenues
|
$ 1,361.0
|
$ 1,322.6
|
|
$ 2,429.4
|
$ 2,371.8
|
|
$ 4,914.4
|
$ 4,976.7
|
Gross
profit
|
$
398.4
|
$
396.5
|
|
$
627.6
|
$
598.2
|
|
$ 1,310.9
|
$ 1,292.0
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Segment
sales
|
$ 1,125.4
|
$ 1,070.6
|
|
$ 2,020.3
|
$ 1,938.8
|
|
$ 4,025.7
|
$ 4,032.1
|
Freight-adjusted
revenues
|
$
874.0
|
$
814.7
|
|
$ 1,555.1
|
$ 1,462.7
|
|
$ 3,100.0
|
$ 3,041.9
|
Gross
profit
|
$
373.8
|
$
351.2
|
|
$
597.5
|
$
545.3
|
|
$ 1,211.4
|
$ 1,177.0
|
Shipments
(tons)
|
58.5
|
56.2
|
|
105.0
|
101.2
|
|
212.0
|
213.8
|
Freight-adjusted
sales price per ton
|
$
14.93
|
$
14.50
|
|
$
14.82
|
$
14.45
|
|
$
14.62
|
$
14.23
|
Gross profit per
ton
|
$
6.39
|
$
6.25
|
|
$
5.69
|
$
5.39
|
|
$
5.71
|
$
5.51
|
Asphalt, Concrete
& Calcium segment gross profit
|
$
24.5
|
$
45.4
|
|
$
30.2
|
$
52.9
|
|
$
99.5
|
$
115.0
|
Selling,
Administrative and General (SAG)
|
$
100.7
|
$
91.2
|
|
$
189.3
|
$
177.6
|
|
$
371.4
|
$
362.2
|
SAG as % of Total
revenues
|
7.4%
|
6.9%
|
|
7.8%
|
7.5%
|
|
7.6%
|
7.3%
|
Earnings from
continuing operations before income taxes
|
$
254.1
|
$
272.3
|
|
$
476.4
|
$
344.5
|
|
$
875.7
|
$
782.1
|
Net
earnings
|
$
195.3
|
$
209.9
|
|
$
356.0
|
$
270.2
|
|
$
670.3
|
$
627.0
|
Adjusted
EBIT
|
$
302.9
|
$
308.3
|
|
$
446.8
|
$
413.9
|
|
$
959.7
|
$
927.3
|
Adjusted
EBITDA
|
$
406.0
|
$
407.8
|
|
$
650.3
|
$
608.8
|
|
$ 1,365.0
|
$ 1,314.2
|
Earnings from
continuing operations per diluted share
|
$
1.47
|
$
1.58
|
|
$
2.69
|
$
2.03
|
|
$
5.07
|
$
4.73
|
Adjusted earnings
from continuing operations per diluted share
|
$
1.57
|
$
1.60
|
|
$
2.26
|
$
2.06
|
|
$
4.90
|
$
4.82
|
Segment Results
Aggregates
Second quarter
segment sales increased 5 percent, and gross profit increased 6
percent to $374 million. Gross
profit margin increased 40 basis points due to growth in both
volume and price as well as effective cost control that helped to
offset an estimated $14 million
impact of rising diesel prices. Earnings improvement was
widespread across the Company's footprint.
Aggregates shipments increased 4 percent from the prior year's
second quarter, reflecting improving demand across all end-market
segments. The pricing environment continues to be positive
across the Company's footprint as demand visibility improves.
For the quarter, freight-adjusted pricing increased 3 percent
(mix-adjusted pricing increased 2.6 percent). The rate of
growth improved sequentially throughout the quarter, reflecting
pricing actions taken in many areas. These efforts are
expected to help offset cost inflation forecasted for the rest of
the year.
Improved operating efficiencies helped offset both the sharp
increase in the average unit cost of diesel fuel and the impact of
any operational disruptions caused by the wet weather.
Freight adjusted unit cost of sales were 3.5 percent higher than
the prior year's second quarter but increased less than 1 percent
excluding the impact of higher diesel prices.
Asphalt, Concrete and Calcium
Overall, non-aggregates
segments gross profit was $21 million
lower than the prior year's second quarter. Asphalt segment
gross profit was $14 million in the
quarter compared to $30 million in
the prior year period. The decrease in earnings was primarily
driven by the impact of higher liquid asphalt costs (approximately
$10 million) and wet weather
conditions that delayed project shipments. Asphalt volumes
declined 8 percent as volume growth in California and Tennessee was more than offset by lower
volumes in Alabama, Arizona and Texas. The average price for
liquid asphalt increased 19 percent versus the prior year's second
quarter, outpacing the 1 percent increase in the average selling
price.
Second quarter Concrete segment gross profit was $10 million compared to $14 million in the prior year. Shipments
decreased 7 percent versus the prior year due to the timing of
projects in Virginia, while
average selling prices increased 3 percent compared to the prior
year.
Calcium segment gross profit of $0.7
million was in line with the prior year quarter.
Selling, Administrative and General (SAG)
SAG expense
was $101 million in the quarter
compared with $91 million in the
prior year. The increase was primarily due to higher
incentive compensation tied to business performance and increased
business development activities. On a trailing twelve-month
basis, SAG expense was $371 million,
or 7.6 percent as a percentage of total revenues.
Financial Position, Liquidity and Capital
Allocation
Capital expenditures in the second quarter were
$94 million, including $34 million for 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.
As of June 30, 2021, total debt to
trailing-twelve month Adjusted EBITDA was 2.0 times, or 1.3 times
on a net debt basis reflecting $968
million of cash on hand. The Company's
weighted-average debt maturity was 15 years, and its effective
weighted-average interest rate was 4.6 percent.
Interest expense, net of interest income, was $42 million in the second quarter, up from
$34 million in the prior year.
The increase includes $9 million of
cost associated with financing the proposed acquisition of U.S.
Concrete announced June 7, 2021.
On a trailing-twelve month basis, return on invested capital was
14.8 percent, 60 basis points higher than the comparable prior year
period. The Company remains committed to driving further
improvement through solid operating earnings growth coupled with
disciplined capital management and a balanced approach to
growth.
Outlook
Regarding the Company's expectations for 2021,
Mr. Hill said, "We reiterate our full-year Adjusted EBITDA range of
$1.380 to $1.460 billion. Our operating performance
in the first half of the year was strong, and we remain on track to
achieve another year of earnings growth. Our aggregates
business is executing well, and we are focused on factors within
our control, including pricing and operating disciplines."
Conference Call
Vulcan will host a conference call at
10:00 a.m. CT on August 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 9979328. 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.
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; 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; 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; Vulcan's proposed acquisition
of U.S. Concrete, including (1) the risk that U.S. Concrete's
business will not be integrated successfully or that such
integration may be more difficult, time-consuming or costly than
expected, (2) the acquisition may not be completed in a timely
manner, on the terms proposed, or at all, (3) the effect of the
announcement or pendency of the proposed acquisition on Vulcan's
business relationships, operating results and business generally,
(4) risks related to diverting management's attention from ongoing
business operations, and (5) the outcome of any legal proceedings
related to the merger agreement or the proposed acquisition; 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.
Investor Contact: Mark
Warren (205) 298-3220
Media Contact: Janet Kavinoky
(205) 298-3220
|
|
|
|
|
|
|
|
|
|
Table A
|
Vulcan Materials
Company
|
|
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
Consolidated
Statements of Earnings
|
|
|
|
June
30
|
|
|
|
June
30
|
(Condensed and
unaudited)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$1,361,047
|
|
$1,322,575
|
|
$2,429,391
|
|
$2,371,817
|
Cost of
revenues
|
|
962,683
|
|
926,056
|
|
1,801,760
|
|
1,773,575
|
Gross
profit
|
|
398,364
|
|
396,519
|
|
627,631
|
|
598,242
|
Selling,
administrative and general expenses
|
|
100,667
|
|
91,205
|
|
189,260
|
|
177,635
|
Gain (loss) on sale
of property, plant & equipment
|
|
|
|
|
|
|
|
|
and
businesses
|
|
211
|
|
(258)
|
|
117,376
|
|
741
|
Other operating
expense, net
|
|
(10,372)
|
|
(6,160)
|
|
(18,698)
|
|
(10,151)
|
Operating
earnings
|
|
287,536
|
|
298,896
|
|
537,049
|
|
411,197
|
Other nonoperating
income (expense), net
|
|
8,223
|
|
7,367
|
|
14,136
|
|
(1,969)
|
Interest expense,
net
|
|
41,696
|
|
33,954
|
|
74,814
|
|
64,727
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
before income
taxes
|
|
254,063
|
|
272,309
|
|
476,371
|
|
344,501
|
Income tax
expense
|
|
57,283
|
|
61,352
|
|
117,922
|
|
73,546
|
Earnings from
continuing operations
|
|
196,780
|
|
210,957
|
|
358,449
|
|
270,955
|
Loss on discontinued
operations, net of tax
|
|
(1,436)
|
|
(1,041)
|
|
(2,491)
|
|
(781)
|
Net
earnings
|
|
$195,344
|
|
$209,916
|
|
$355,958
|
|
$270,174
|
Basic earnings (loss)
per share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.48
|
|
$1.59
|
|
$2.70
|
|
$2.04
|
Discontinued
operations
|
|
($0.01)
|
|
($0.01)
|
|
($0.02)
|
|
$0.00
|
Net
earnings
|
|
$1.47
|
|
$1.58
|
|
$2.68
|
|
$2.04
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.47
|
|
$1.58
|
|
$2.69
|
|
$2.03
|
Discontinued
operations
|
|
($0.01)
|
|
$0.00
|
|
($0.02)
|
|
$0.00
|
Net
earnings
|
|
$1.46
|
|
$1.58
|
|
$2.67
|
|
$2.03
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
132,781
|
|
132,552
|
|
132,765
|
|
132,560
|
Assuming
dilution
|
|
133,507
|
|
133,115
|
|
133,455
|
|
133,154
|
Effective tax rate
from continuing operations
|
|
22.5%
|
|
22.5%
|
|
24.8%
|
|
21.3%
|
|
|
|
|
|
|
|
|
Table B
|
Vulcan Materials
Company
|
|
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
(in
thousands)
|
Consolidated
Balance Sheets
|
|
June
30
|
|
December
31
|
|
June
30
|
(Condensed and
unaudited)
|
|
2021
|
|
2020
|
|
2020
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$857,555
|
|
$1,197,068
|
|
$816,765
|
Restricted
cash
|
|
110,851
|
|
945
|
|
434
|
Accounts and notes
receivable
|
|
|
|
|
|
|
Accounts and notes
receivable, gross
|
|
689,591
|
|
558,848
|
|
699,320
|
Allowance for
doubtful accounts
|
|
(2,739)
|
|
(2,551)
|
|
(3,460)
|
Accounts and notes
receivable, net
|
|
686,852
|
|
556,297
|
|
695,860
|
Inventories
|
|
|
|
|
|
|
Finished
products
|
|
373,677
|
|
378,389
|
|
383,483
|
Raw
materials
|
|
37,967
|
|
33,780
|
|
33,178
|
Products in
process
|
|
5,099
|
|
4,555
|
|
5,116
|
Operating supplies
and other
|
|
33,900
|
|
31,861
|
|
29,703
|
Inventories
|
|
450,643
|
|
448,585
|
|
451,480
|
Other current
assets
|
|
94,524
|
|
74,270
|
|
65,571
|
Total current
assets
|
|
2,200,425
|
|
2,277,165
|
|
2,030,110
|
Investments and
long-term receivables
|
|
34,264
|
|
34,301
|
|
43,849
|
Property, plant &
equipment
|
|
|
|
|
|
|
Property, plant &
equipment, cost
|
|
9,094,689
|
|
9,102,086
|
|
8,921,990
|
Allowances for
depreciation, depletion & amortization
|
|
(4,729,456)
|
|
(4,676,087)
|
|
(4,538,980)
|
Property, plant &
equipment, net
|
|
4,365,233
|
|
4,425,999
|
|
4,383,010
|
Operating lease
right-of-use assets, net
|
|
464,765
|
|
423,128
|
|
426,618
|
Goodwill
|
|
3,172,112
|
|
3,172,112
|
|
3,172,112
|
Other intangible
assets, net
|
|
1,103,079
|
|
1,123,544
|
|
1,114,592
|
Other noncurrent
assets
|
|
231,149
|
|
230,656
|
|
228,433
|
Total
assets
|
|
$11,571,027
|
|
$11,686,905
|
|
$11,398,724
|
Liabilities
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
15,436
|
|
515,435
|
|
500,026
|
Trade payables and
accruals
|
|
300,109
|
|
273,080
|
|
278,102
|
Other current
liabilities
|
|
283,700
|
|
259,368
|
|
260,621
|
Total current
liabilities
|
|
599,245
|
|
1,047,883
|
|
1,038,749
|
Long-term
debt
|
|
2,769,892
|
|
2,772,240
|
|
2,785,646
|
Deferred income
taxes, net
|
|
748,279
|
|
706,050
|
|
671,097
|
Deferred
revenue
|
|
170,160
|
|
174,045
|
|
177,534
|
Noncurrent operating
lease liabilities
|
|
443,128
|
|
399,582
|
|
405,578
|
Other noncurrent
liabilities
|
|
547,210
|
|
559,775
|
|
555,969
|
Total
liabilities
|
|
$5,277,914
|
|
$5,659,575
|
|
$5,634,573
|
Equity
|
|
|
|
|
|
|
Common stock, $1 par
value
|
|
132,678
|
|
132,516
|
|
132,446
|
Capital in excess of
par value
|
|
2,806,693
|
|
2,802,012
|
|
2,789,801
|
Retained
earnings
|
|
3,531,861
|
|
3,274,107
|
|
3,049,943
|
Accumulated other
comprehensive loss
|
|
(178,119)
|
|
(181,305)
|
|
(208,039)
|
Total
equity
|
|
$6,293,113
|
|
$6,027,330
|
|
$5,764,151
|
Total liabilities and
equity
|
|
$11,571,027
|
|
$11,686,905
|
|
$11,398,724
|
|
|
|
|
|
|
|
Table C
|
Vulcan Materials
Company
|
|
|
|
|
and Subsidiary
Companies
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Six Months
Ended
|
Consolidated
Statements of Cash Flows
|
|
|
|
June
30
|
(Condensed and
unaudited)
|
|
2021
|
|
2020
|
Operating
Activities
|
|
|
|
|
Net
earnings
|
|
|
|
|
$355,958
|
|
$270,174
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
Depreciation,
depletion, accretion and amortization
|
|
203,475
|
|
194,951
|
Noncash operating
lease expense
|
|
20,867
|
|
17,977
|
Net gain on sale of
property, plant & equipment and businesses
|
|
(117,376)
|
|
(741)
|
Contributions to
pension plans
|
|
(4,097)
|
|
(4,409)
|
Share-based
compensation expense
|
|
17,688
|
|
15,220
|
Deferred tax
expense
|
|
41,103
|
|
36,644
|
Changes in assets and
liabilities before initial
|
|
|
|
|
effects of business
acquisitions and dispositions
|
|
(135,007)
|
|
(101,271)
|
Other, net
|
|
|
|
|
15,262
|
|
(2,954)
|
Net cash provided by
operating activities
|
|
$397,873
|
|
$425,591
|
Investing
Activities
|
|
|
|
|
Purchases of
property, plant & equipment
|
|
(192,234)
|
|
(223,147)
|
Proceeds from sale of
property, plant & equipment
|
|
190,747
|
|
3,063
|
Proceeds from sale of
businesses
|
|
0
|
|
651
|
Payment for
businesses acquired, net of acquired cash
|
|
0
|
|
(5,668)
|
Other, net
|
|
|
|
|
15
|
|
5,575
|
Net cash used for
investing activities
|
|
($1,472)
|
|
($219,526)
|
Financing
Activities
|
|
|
|
|
Payment of current
maturities and long-term debt
|
|
(500,013)
|
|
(250,012)
|
Proceeds from
issuance of long-term debt
|
|
0
|
|
750,000
|
Debt issuance and
exchange costs
|
|
(13,286)
|
|
(10,762)
|
Settlements of
interest rate derivatives
|
|
0
|
|
(19,863)
|
Purchases of common
stock
|
|
0
|
|
(26,132)
|
Dividends
paid
|
|
|
|
(98,173)
|
|
(90,128)
|
Share-based
compensation, shares withheld for taxes
|
|
(12,782)
|
|
(15,830)
|
Other, net
|
|
|
|
|
(1,754)
|
|
(645)
|
Net cash provided by
(used for) financing activities
|
|
($626,008)
|
|
$336,628
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
|
(229,607)
|
|
542,693
|
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
|
|
$968,406
|
|
$817,199
|
|
|
|
|
|
|
|
|
|
|
|
Table D
|
Segment Financial
Data and Unit Shipments
|
|
|
|
|
(in thousands, except
per unit data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Total
Revenues
|
|
|
|
|
|
|
|
|
Aggregates
1
|
|
$1,125,367
|
|
$1,070,596
|
|
$2,020,276
|
|
$1,938,822
|
Asphalt
2
|
|
212,577
|
|
222,950
|
|
359,744
|
|
362,739
|
Concrete
|
|
96,201
|
|
100,683
|
|
177,560
|
|
195,448
|
Calcium
|
|
|
1,960
|
|
1,889
|
|
4,020
|
|
3,915
|
Segment
sales
|
|
$1,436,105
|
|
$1,396,118
|
|
$2,561,600
|
|
$2,500,924
|
Aggregates
intersegment sales
|
|
(75,058)
|
|
(73,543)
|
|
(132,209)
|
|
(129,107)
|
Total
revenues
|
|
$1,361,047
|
|
$1,322,575
|
|
$2,429,391
|
|
$2,371,817
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$373,833
|
|
$351,162
|
|
$597,471
|
|
$545,293
|
Asphalt
|
|
|
13,532
|
|
30,464
|
|
10,541
|
|
28,029
|
Concrete
|
|
10,293
|
|
14,227
|
|
18,061
|
|
23,440
|
Calcium
|
|
|
|
|
706
|
|
666
|
|
1,558
|
|
1,480
|
Total
|
|
|
|
$398,364
|
|
$396,519
|
|
$627,631
|
|
$598,242
|
Depreciation,
Depletion, Accretion and Amortization
|
|
|
|
|
Aggregates
|
|
$84,328
|
|
$80,747
|
|
$165,136
|
|
$157,883
|
Asphalt
|
|
|
9,060
|
|
8,668
|
|
18,155
|
|
17,402
|
Concrete
|
|
4,026
|
|
4,001
|
|
7,978
|
|
8,083
|
Calcium
|
|
|
39
|
|
48
|
|
78
|
|
97
|
Other
|
|
|
|
5,654
|
|
6,006
|
|
12,128
|
|
11,486
|
Total
|
|
|
|
$103,107
|
|
$99,470
|
|
$203,475
|
|
$194,951
|
Average Unit Sales
Price and Unit Shipments
|
|
|
|
|
Aggregates
|
|
|
|
|
|
|
|
|
Freight-adjusted
revenues 3
|
|
$873,971
|
|
$814,713
|
|
$1,555,126
|
|
$1,462,746
|
Aggregates -
tons
|
|
58,528
|
|
56,195
|
|
104,965
|
|
101,243
|
Freight-adjusted
sales price 4
|
|
$14.93
|
|
$14.50
|
|
$14.82
|
|
$14.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Products
|
|
|
|
|
|
|
|
|
Asphalt Mix -
tons
|
|
3,134
|
|
3,403
|
|
5,351
|
|
5,460
|
Asphalt Mix - sales
price
|
|
$58.14
|
|
$57.46
|
|
$57.58
|
|
$57.86
|
|
|
|
|
|
|
|
|
|
|
|
|
Ready-mixed concrete
- cubic yards
|
|
731
|
|
786
|
|
1,344
|
|
1,520
|
Ready-mixed concrete
- sales price
|
|
$130.61
|
|
$127.35
|
|
$131.03
|
|
$127.62
|
|
|
|
|
|
|
|
|
|
|
|
|
Calcium -
tons
|
|
71
|
|
71
|
|
145
|
|
144
|
Calcium - sales
price
|
|
$27.64
|
|
$26.55
|
|
$27.64
|
|
$27.06
|
|
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 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 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
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Segment
sales
|
|
$1,125,367
|
|
$1,070,596
|
|
$2,020,276
|
|
$1,938,822
|
Less:
|
|
Freight &
delivery revenues 1
|
|
234,845
|
|
240,880
|
|
432,071
|
|
446,588
|
|
|
|
Other
revenues
|
|
16,551
|
|
15,003
|
|
33,079
|
|
29,488
|
Freight-adjusted
revenues
|
|
$873,971
|
|
$814,713
|
|
$1,555,126
|
|
$1,462,746
|
Unit shipment -
tons
|
|
58,528
|
|
56,195
|
|
104,965
|
|
101,243
|
Freight-adjusted
sales price
|
|
$14.93
|
|
$14.50
|
|
$14.82
|
|
$14.45
|
|
|
|
|
|
|
|
|
|
|
|
|
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). This metric 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. 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
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$373,833
|
|
$351,162
|
|
$597,471
|
|
$545,293
|
Segment
sales
|
|
$1,125,367
|
|
$1,070,596
|
|
$2,020,276
|
|
$1,938,822
|
Gross profit
margin
|
|
33.2%
|
|
32.8%
|
|
29.6%
|
|
28.1%
|
Incremental gross
profit margin
|
|
41.4%
|
|
|
|
64.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates Segment
Incremental Gross Profit Flow-through Rate
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$373,833
|
|
$351,162
|
|
$597,471
|
|
$545,293
|
Segment
sales
|
|
$1,125,367
|
|
$1,070,596
|
|
$2,020,276
|
|
$1,938,822
|
Less:
|
|
Freight &
delivery revenues 1
|
|
234,845
|
|
240,880
|
|
432,071
|
|
446,588
|
|
Segment sales
excluding freight & delivery
|
|
$890,522
|
|
$829,716
|
|
$1,588,205
|
|
$1,492,234
|
Gross profit margin
excluding freight & delivery
|
|
42.0%
|
|
42.3%
|
|
37.6%
|
|
36.5%
|
Incremental gross
profit flow-through rate
|
|
37.3%
|
|
|
|
54.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Aggregates
segment
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$373,833
|
|
$351,162
|
|
$597,471
|
|
$545,293
|
Depreciation,
depletion, accretion and amortization
|
|
84,328
|
|
80,747
|
|
165,136
|
|
157,883
|
|
Aggregates segment
cash gross profit
|
|
$458,161
|
|
$431,909
|
|
$762,607
|
|
$703,176
|
Unit shipments -
tons
|
|
58,528
|
|
56,195
|
|
104,965
|
|
101,243
|
Aggregates segment
cash gross profit per ton
|
|
$7.83
|
|
$7.69
|
|
$7.27
|
|
$6.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Six Months
Ended
|
|
|
|
TTM
|
|
|
|
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
earnings
|
|
$195,344
|
|
$209,916
|
|
$355,958
|
|
$270,174
|
|
$670,264
|
|
$626,979
|
Income tax
expense
|
|
57,283
|
|
61,352
|
|
117,922
|
|
73,546
|
|
200,179
|
|
150,453
|
Interest expense,
net
|
|
41,696
|
|
33,954
|
|
74,814
|
|
64,727
|
|
144,480
|
|
127,758
|
Loss on discontinued
operations, net of tax
|
|
1,436
|
|
1,041
|
|
2,491
|
|
781
|
|
5,225
|
|
4,637
|
EBIT
|
|
|
|
$295,759
|
|
$306,263
|
|
$551,185
|
|
$409,228
|
|
$1,020,148
|
|
$909,827
|
Depreciation,
depletion, accretion and amortization
|
|
103,107
|
|
99,470
|
|
203,475
|
|
194,951
|
|
405,330
|
|
386,870
|
EBITDA
|
|
|
$398,866
|
|
$405,733
|
|
$754,660
|
|
$604,179
|
|
$1,425,478
|
|
$1,296,697
|
|
Gain on sale of real
estate and businesses, net
|
|
0
|
|
0
|
|
(114,695)
|
|
0
|
|
(114,695)
|
|
(9,289)
|
|
Property
donation
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
10,847
|
|
Charges associated
with divested operations
|
|
350
|
|
774
|
|
686
|
|
774
|
|
6,847
|
|
3,807
|
|
Business development
1
|
|
5,489
|
|
(3,519)
|
|
5,875
|
|
(2,459)
|
|
15,668
|
|
(711)
|
|
COVID-19 direct
incremental costs
|
|
1,318
|
|
4,361
|
|
3,786
|
|
5,009
|
|
8,947
|
|
5,009
|
|
Pension settlement
charge
|
|
0
|
|
0
|
|
0
|
|
0
|
|
22,740
|
|
0
|
|
Restructuring
charges
|
|
0
|
|
465
|
|
0
|
|
1,333
|
|
0
|
|
7,790
|
Adjusted
EBITDA
|
|
$406,023
|
|
$407,814
|
|
$650,312
|
|
$608,836
|
|
$1,364,985
|
|
$1,314,150
|
|
Depreciation,
depletion, accretion and amortization
|
|
(103,107)
|
|
(99,470)
|
|
(203,475)
|
|
(194,951)
|
|
(405,330)
|
|
(386,870)
|
Adjusted
EBIT
|
|
$302,916
|
|
$308,344
|
|
$446,837
|
|
$413,885
|
|
$959,655
|
|
$927,280
|
Adjusted EBITDA
margin
|
|
29.8%
|
|
30.8%
|
|
26.8%
|
|
25.7%
|
|
27.8%
|
|
26.4%
|
1Represents non-routine charges or gains
associated with acquisitions and dispositions 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
|
|
|
|
Six Months
Ended
|
|
|
|
TTM
|
|
|
|
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
June
30
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Diluted EPS from
continuing operations
|
|
$1.47
|
|
$1.58
|
|
$2.69
|
|
$2.03
|
|
$5.07
|
|
$4.73
|
|
Items included in
Adjusted EBITDA above
|
|
0.05
|
|
0.02
|
|
(0.58)
|
|
0.03
|
|
(0.32)
|
|
0.09
|
|
Alabama NOL
carryforward valuation allowance
|
|
0.00
|
|
0.00
|
|
0.10
|
|
0.00
|
|
0.10
|
|
0.00
|
|
Acquisition financing
interest costs
|
|
0.05
|
|
0.00
|
|
0.05
|
|
0.00
|
|
0.05
|
|
0.00
|
Adjusted diluted
EPS
|
|
$1.57
|
|
$1.60
|
|
$2.26
|
|
$2.06
|
|
$4.90
|
|
$4.82
|
|
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:
|
|
|
Net Debt to
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
|
|
|
|
|
|
|
|
$15,436
|
|
$500,026
|
Long-term
debt
|
|
|
|
|
|
|
|
|
|
2,769,892
|
|
2,785,646
|
Total debt
|
|
|
|
|
|
|
|
|
|
$2,785,328
|
|
$3,285,672
|
Less: Cash and cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
|
|
968,406
|
|
817,199
|
Net debt
|
|
|
|
|
|
|
|
|
|
|
$1,816,922
|
|
$2,468,473
|
Trailing-Twelve
Months (TTM) Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
$1,364,985
|
|
$1,314,150
|
Total debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
2.0x
|
|
2.5x
|
Net debt to TTM
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
1.3x
|
|
1.9x
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 3
|
Reconciliation of
Non-GAAP Measures (Continued)
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
$670
|
Income tax
expense
|
|
|
|
|
|
|
|
205
|
Interest expense, net
of interest income
|
|
|
|
|
|
|
|
145
|
Discontinued
operations, net of tax
|
|
|
|
|
|
|
|
0
|
Depreciation,
depletion, accretion and amortization
|
|
|
|
|
|
|
|
400
|
Projected
EBITDA
|
|
|
|
|
|
|
|
$1,420
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
June
30
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
Adjusted
EBITDA
|
|
|
|
|
|
$1,364,985
|
|
$1,314,150
|
Average invested
capital 1
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment, net
|
|
|
|
|
|
$4,376,276
|
|
$4,335,633
|
|
Goodwill
|
|
|
|
|
|
3,172,113
|
|
3,168,072
|
|
Other intangible
assets
|
|
|
|
|
|
1,112,585
|
|
1,087,580
|
|
Fixed and intangible
assets
|
|
|
|
|
|
$8,660,974
|
|
$8,591,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
$2,153,208
|
|
$1,453,094
|
|
Less: Cash and cash
equivalents
|
|
|
|
|
|
991,857
|
|
265,920
|
|
Less: Current
tax
|
|
|
|
|
|
19,167
|
|
19,289
|
|
Adjusted current
assets
|
|
|
|
|
|
1,142,184
|
|
1,167,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
864,325
|
|
649,772
|
|
Less: Current
maturities of long-term debt
|
|
|
|
|
|
311,154
|
|
100,025
|
|
Less: Short-term
debt
|
|
|
|
|
|
0
|
|
27,400
|
|
Adjusted current
liabilities
|
|
|
|
|
|
553,171
|
|
522,347
|
|
Adjusted net working
capital
|
|
|
|
|
|
$589,013
|
|
$645,538
|
|
|
|
|
|
|
|
|
|
|
|
|
Average invested
capital
|
|
|
|
|
|
$9,249,987
|
|
$9,236,823
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on invested
capital
|
|
|
|
|
|
14.8%
|
|
14.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
1Average
invested capital is based on a trailing 5-quarters.
|
|
|
View original content to download
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SOURCE Vulcan Materials Company