Knife River Corporation Reports Third Quarter Financial Results
Knife River (NYSE: KNF) reported record third quarter results with revenue of $1.1 billion (+1% YoY), gross profit of $273 million (+1% YoY), and net income of $148.1 million (+1% YoY). The company announced six acquisitions totaling $129.3 million, focusing on aggregate reserves and construction materials. Geographic segments contributed record EBITDA of $224.6 million, up 6% year-over-year. The company narrowed its 2024 guidance, expecting revenue between $2.85-2.95 billion and adjusted EBITDA of $445-465 million.
Knife River (NYSE: KNF) ha riportato risultati record per il terzo trimestre con un fatturato di 1,1 miliardi di dollari (+1% rispetto all'anno precedente), un profitto lordo di 273 milioni di dollari (+1% rispetto all'anno precedente) e un reddito netto di 148,1 milioni di dollari (+1% rispetto all'anno precedente). L'azienda ha annunciato sei acquisizioni per un totale di 129,3 milioni di dollari, concentrandosi su riserve di aggregati e materiali da costruzione. I segmenti geografici hanno contribuito a un EBITDA record di 224,6 milioni di dollari, in aumento del 6% rispetto all'anno precedente. L'azienda ha ristretto le previsioni per il 2024, prevedendo ricavi compresi tra 2,85 e 2,95 miliardi di dollari e un EBITDA rettificato di 445-465 milioni di dollari.
Knife River (NYSE: KNF) reportó resultados récord en el tercer trimestre con ingresos de 1.1 mil millones de dólares (+1% interanual), un beneficio bruto de 273 millones de dólares (+1% interanual) y una ganancia neta de 148.1 millones de dólares (+1% interanual). La compañía anunció seis adquisiciones por un total de 129.3 millones de dólares, centradas en reservas de agregados y materiales de construcción. Los segmentos geográficos contribuyeron con un EBITDA récord de 224.6 millones de dólares, un aumento del 6% en comparación con el año anterior. La compañía ajustó sus proyecciones para 2024, esperando ingresos entre 2.85 y 2.95 mil millones de dólares y un EBITDA ajustado de 445-465 millones de dólares.
Knife River (NYSE: KNF)는 3분기 기록적인 실적을 보고하며 수익 11억 달러(+1% 전년 대비), 총 이익 2억 7300만 달러(+1% 전년 대비), 순이익 1억 4810만 달러(+1% 전년 대비)를 기록했습니다. 이 회사는 집합 광물과 건축 자재에 중점을 둔 총 1억 2930만 달러 규모의 여섯 건의 인수 소식을 전했습니다. 지리적 부문은 2억 2460만 달러의 기록적인 EBITDA에 기여했으며, 이는 전년 대비 6% 증가한 수치입니다. 회사는 2024년 가이던스를 좁히며 수익이 28.5억 달러에서 29.5억 달러 사이와 조정된 EBITDA가 44억 5000만에서 46억 5000만 달러 사이가 될 것으로 예상하고 있습니다.
Knife River (NYSE: KNF) a annoncé des résultats record pour le troisième trimestre avec un chiffre d'affaires de 1,1 milliard de dollars (+1% par rapport à l'année précédente), un bénéfice brut de 273 millions de dollars (+1% par rapport à l'année précédente) et un revenu net de 148,1 millions de dollars (+1% par rapport à l'année précédente). L'entreprise a annoncé six acquisitions totalisant 129,3 millions de dollars, se concentrant sur les réserves d'agrégats et les matériaux de construction. Les segments géographiques ont contribué à un EBITDA record de 224,6 millions de dollars, en hausse de 6 % par rapport à l'année précédente. L'entreprise a affiné ses prévisions pour 2024, s'attendant à un chiffre d'affaires compris entre 2,85 et 2,95 milliards de dollars et à un EBITDA ajusté de 445 à 465 millions de dollars.
Knife River (NYSE: KNF) meldete im dritten Quartal rekordverdächtige Ergebnisse mit einem Umsatz von 1,1 Milliarden Dollar (+1% im Vergleich zum Vorjahr), einem Bruttogewinn von 273 Millionen Dollar (+1% im Vergleich zum Vorjahr) und einem Nettogewinn von 148,1 Millionen Dollar (+1% im Vergleich zum Vorjahr). Das Unternehmen gab sechs Übernahmen im Gesamtwert von 129,3 Millionen Dollar bekannt, die sich auf Aggregatreserven und Bau-materialien konzentrieren. Die geografischen Segmente trugen zu einem rekordverdächtigen EBITDA von 224,6 Millionen Dollar bei, ein Anstieg von 6% im Vergleich zum Vorjahr. Das Unternehmen hat seine Prognosen für 2024 eingegrenzt und erwartet einen Umsatz zwischen 2,85 und 2,95 Milliarden Dollar sowie ein bereinigtes EBITDA von 445 bis 465 Millionen Dollar.
- Record Q3 revenue of $1.1B (+1% YoY)
- Record Q3 net income of $148.1M (+1% YoY)
- Geographic segments EBITDA up 6% YoY to $224.6M
- Strategic acquisitions completed for $129.3M
- Backlog increased YoY with improved margins for 6th consecutive quarter
- Energy Services segment revenue decreased 10% YoY
- Energy Services EBITDA declined 26% YoY
- Adjusted EBITDA slightly decreased 1% to $245.2M
- Volume declines across product lines
- Higher operating costs at California terminal
Insights
Knife River delivered a solid Q3 performance with record revenue of
The acquisition strategy looks promising, with
The narrowed guidance range of
The infrastructure sector outlook remains robust, with record or near-record budgets at state DOTs supporting Knife River's growth trajectory. The company's geographic diversification across Pacific, Northwest, Mountain and Central segments provides resilience, with most segments showing improved EBITDA performance.
The strategic shift toward quality over quantity is proving effective, as evidenced by six consecutive quarters of improved backlog margins. While volumes have declined, higher pricing power and improved project selection are driving profitability. The recent acquisitions, particularly in Northern California and the Pacific Northwest, position the company well in high-growth markets.
Achieved record third quarter revenue, gross profit and net income
Announced recent acquisition of aggregates and liquid asphalt businesses
Narrowed guidance range on revenue and adjusted EBITDA
PERFORMANCE SUMMARY |
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Three Months Ended |
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Nine Months Ended |
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(In millions, except per share) |
2024 |
2023 |
% Change |
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2024 |
2023 |
% Change |
Revenue |
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Gross profit |
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Net income |
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Net income margin |
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Adjusted EBITDA |
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(1)% |
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Adjusted EBITDA margin |
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Net income per share |
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Note: Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures." |
MANAGEMENT COMMENTARY |
“Our third quarter results demonstrate the fundamental strength of our business and the benefits of our segment diversity,” said Knife River President and CEO Brian Gray. “We achieved record quarterly revenue, gross profit and net income, and adjusted EBITDA was near our record from the third quarter of 2023. Our geographic segments contributed record EBITDA of
“We are also excited to announce that we have closed on additional acquisitions, which we expect to generate an attractive financial return,” Gray said. “Through Nov. 2, 2024, we have deployed
“Recent acquisitions include aggregate-specific purchases in key markets, including the assets of Frank B. Marks & Son in
“Growth is a key component of our ‘Competitive EDGE’ strategy, and so are pricing optimization, cost control and continuous improvements,” Gray said. “During the quarter, our teams continued to optimize the pricing of our construction materials, control production costs through our Process Improvement Teams and realize higher margins on our contracting services. Our ‘EDGE’ strategy guides our decisions on quality of work over quantity of work.”
“We also continue to benefit from a strong public funding backdrop,” Gray said. “We are seeing continued opportunities to bid on projects across our footprint, with record or near-record budgets at most of our state departments of transportation. We have a good schedule of DOT bid lettings coming up for 2025 across our states. Our backlog of
“As we look ahead at the full year, including expectations for our segments in the fourth quarter and anticipated acquisition expenses related to our growth program, we are narrowing guidance for 2024 revenue and adjusted EBITDA,” Gray said. “We expect revenue in the range of
THIRD QUARTER 2024 RESULTS |
For the three months ended September 30, 2024, we reported record consolidated revenue of
In the fourth quarter of 2023, we realigned our reportable segments to better support our operational strategies. The liquid asphalt and related services portion of the Pacific segment’s businesses are now reported under the Energy Services segment. In addition, the North Central and South operating segments have been aggregated into one reportable segment, Central. We also reallocated certain amounts to the operating segments that were previously reported within Corporate Services. All periods have been recast to conform with the revised presentation.
See the section entitled “Non-GAAP Financial Measures” for more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure.
REPORTING SEGMENT PERFORMANCE |
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Pacific |
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Three Months Ended |
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Nine Months Ended |
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Sept. 30, |
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Sept. 30, |
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|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
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|
(In millions) |
||||||||||||||||
Revenue |
$ |
165.0 |
|
$ |
157.3 |
|
5 |
% |
|
$ |
375.2 |
|
$ |
348.1 |
|
8 |
% |
Gross profit |
$ |
34.3 |
|
$ |
33.3 |
|
3 |
% |
|
$ |
60.2 |
|
$ |
59.8 |
|
1 |
% |
Gross margin |
|
20.8 |
% |
|
21.1 |
% |
|
|
|
16.0 |
% |
|
17.2 |
% |
|
||
EBITDA |
$ |
29.5 |
|
$ |
28.6 |
|
3 |
% |
|
$ |
46.5 |
|
$ |
46.1 |
|
1 |
% |
EBITDA margin |
|
17.9 |
% |
|
18.2 |
% |
|
|
|
12.4 |
% |
|
13.3 |
% |
|
Third quarter revenue increased to a record
Northwest |
|
|
|
|
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Three Months Ended |
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Nine Months Ended |
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Sept. 30, |
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Sept. 30, |
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2024 |
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|
2023 |
|
% Change |
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|
2024 |
|
|
2023 |
|
% Change |
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|
(In millions) |
||||||||||||||||
Revenue |
$ |
218.1 |
|
$ |
209.4 |
|
4 |
% |
|
$ |
539.7 |
|
$ |
504.2 |
|
7 |
% |
Gross profit |
$ |
57.4 |
|
$ |
50.2 |
|
14 |
% |
|
$ |
129.1 |
|
$ |
107.9 |
|
20 |
% |
Gross margin |
|
26.3 |
% |
|
24.0 |
% |
|
|
|
23.9 |
% |
|
21.4 |
% |
|
||
EBITDA |
$ |
55.9 |
|
$ |
48.5 |
|
15 |
% |
|
$ |
126.8 |
|
$ |
101.3 |
|
25 |
% |
EBITDA margin |
|
25.6 |
% |
|
23.2 |
% |
|
|
|
23.5 |
% |
|
20.1 |
% |
|
Third quarter revenue increased
Mountain |
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Three Months Ended |
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Nine Months Ended |
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Sept. 30, |
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Sept. 30, |
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|
2024 |
|
|
2023 |
|
% Change |
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|
2024 |
|
|
2023 |
|
% Change |
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|
(In millions) |
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Revenue |
$ |
261.1 |
|
$ |
255.1 |
|
2 |
% |
|
$ |
514.9 |
|
$ |
491.5 |
|
5 |
% |
Gross profit |
$ |
61.1 |
|
$ |
59.7 |
|
2 |
% |
|
$ |
101.1 |
|
$ |
88.8 |
|
14 |
% |
Gross margin |
|
23.4 |
% |
|
23.4 |
% |
|
|
|
19.6 |
% |
|
18.1 |
% |
|
||
EBITDA |
$ |
59.4 |
|
$ |
59.4 |
|
— |
% |
|
$ |
96.5 |
|
$ |
86.0 |
|
12 |
% |
EBITDA margin |
|
22.8 |
% |
|
23.3 |
% |
|
|
|
18.7 |
% |
|
17.5 |
% |
|
Third quarter revenue increased to a record
Central |
|
|
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|
|
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|
Three Months Ended |
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Nine Months Ended |
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|
Sept. 30, |
|
Sept. 30, |
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|
2024 |
|
|
2023 |
|
% Change |
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|
2024 |
|
|
2023 |
|
% Change |
||
|
(In millions) |
||||||||||||||||
Revenue |
$ |
354.9 |
|
$ |
354.9 |
|
— |
% |
|
$ |
630.5 |
|
$ |
643.6 |
|
(2 |
)% |
Gross profit |
$ |
85.4 |
|
$ |
80.4 |
|
6 |
% |
|
$ |
110.6 |
|
$ |
101.1 |
|
9 |
% |
Gross margin |
|
24.1 |
% |
|
22.6 |
% |
|
|
|
17.5 |
% |
|
15.7 |
% |
|
||
EBITDA |
$ |
79.8 |
|
$ |
74.8 |
|
7 |
% |
|
$ |
97.3 |
|
$ |
86.3 |
|
13 |
% |
EBITDA margin |
|
22.5 |
% |
|
21.1 |
% |
|
|
|
15.4 |
% |
|
13.4 |
% |
|
Third quarter revenue remained flat year-over-year, positively impacted by increased pricing, but offset by lower volumes as a result of our EDGE-related initiative of quality of work over quantity of work. EBITDA improved
Energy Services |
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|
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|
Three Months Ended |
|
Nine Months Ended |
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|
Sept. 30, |
|
Sept. 30, |
||||||||||||||
|
|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
||
|
(In millions) |
||||||||||||||||
Revenue |
$ |
125.9 |
|
$ |
140.6 |
|
(10 |
)% |
|
$ |
214.9 |
|
$ |
234.1 |
|
(8 |
)% |
Gross profit |
$ |
34.7 |
|
$ |
46.7 |
|
(26 |
)% |
|
$ |
53.7 |
|
$ |
68.2 |
|
(21 |
)% |
Gross margin |
|
27.5 |
% |
|
33.3 |
% |
|
|
|
25.0 |
% |
|
29.1 |
% |
|
||
EBITDA |
$ |
33.7 |
|
$ |
45.7 |
|
(26 |
)% |
|
$ |
50.6 |
|
$ |
64.5 |
|
(22 |
)% |
EBITDA margin |
|
26.8 |
% |
|
32.5 |
% |
|
|
|
23.5 |
% |
|
27.6 |
% |
|
Third quarter revenue decreased year-over-year as anticipated and previously disclosed, as pricing for liquid asphalt continued to decrease across all markets. The decrease in pricing was slightly offset by strong demand in
CAPITAL ALLOCATION & LIQUIDITY |
Knife River is committed to disciplined use of capital, including reinvesting in the company to maintain fixed assets, improve operations and grow our business. For reporting purposes, we allocate capital expenditures in two categories, which align with our EDGE strategy: Disciplined use of capital and Growth of our company.
-
Discipline (Support and Improve Existing Operations)
- Maintenance: Plant and equipment; aggregate reserve replacement.
- Improvements: Productivity, safety, quality, environmental improvements that drive return on invested capital and support our core values.
-
Growth (Expand Operations)
- Organic: Greenfield growth in new markets; additional operations in existing markets.
- Acquisition: Purchase bolt-on or new platform operations in mid-sized, high-growth markets; focused on materials.
In the Discipline category, we estimate 2024 capital expenditures to be between
As of Nov. 4, we have invested
Capital expenditures for future acquisitions and organic opportunities would be incremental to the outlined capital program; these opportunities are dependent upon economic and other competitive conditions. It is anticipated that capital expenditures for 2024 will be funded by various sources, including internally generated cash and debt.
As of September 30, 2024, Knife River had
2024 FINANCIAL GUIDANCE |
Knife River narrowed our full year 2024 revenue and adjusted EBITDA guidance ranges. Also for the full year 2024, we anticipate price increases of high single digits for aggregates and ready-mix and low single digits for asphalt. We expect continued pricing momentum to be partially offset by volume declines for the materials product lines, including mid single digits for aggregates, high single digits for ready-mix and mid single digits for asphalt. The guidance ranges are based on normal economic and operating conditions.
|
Low |
High |
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|
(In millions) |
|||
Revenue |
|
|
||
Revenue (Knife River Consolidated) |
$ |
2,850.0 |
$ |
2,950.0 |
|
|
|
||
Adjusted EBITDA |
|
|
||
Geographic Segments and Corporate Services |
$ |
390.0 |
$ |
405.0 |
Energy Services |
$ |
55.0 |
$ |
60.0 |
Knife River Consolidated |
$ |
445.0 |
$ |
465.0 |
THIRD QUARTER 2024 RESULTS CONFERENCE CALL |
Knife River will host a conference call at 11 a.m. EST on November 4, 2024, to discuss third quarter results, 2024 guidance and conduct a question-and-answer session. The event will be webcast at https://events.q4inc.com/attendee/304447263.
To participate in the live call:
- Domestic: 1-800-549-8228
-
International: 1-289-819-1520
Conference ID: 66729
ABOUT KNIFE RIVER CORPORATION |
Knife River Corporation, a member of the S&P MidCap 400 index, mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, asphalt and other value-added products. Knife River also performs vertically integrated contracting services, specializing in publicly funded DOT projects and private projects across the industrial, commercial and residential space. For more information about the company, visit www.kniferiver.com.
Knife River Corporation |
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Consolidated Statements of Operations |
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(Unaudited) |
|||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||
|
September 30, |
|
September 30, |
||||||
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
(In millions, except per share amounts) |
||||||||
Revenue: |
|
|
|
|
|
||||
Construction materials |
$ |
545.7 |
$ |
553.1 |
|
$ |
1,185.0 |
$ |
1,177.7 |
Contracting services |
|
559.6 |
|
537.3 |
|
|
1,056.8 |
|
1,005.8 |
Total revenue |
|
1,105.3 |
|
1,090.4 |
|
|
2,241.8 |
|
2,183.5 |
Cost of revenue: |
|
|
|
|
|
||||
Construction materials |
|
345.0 |
|
346.3 |
|
|
865.3 |
|
856.6 |
Contracting services |
|
487.3 |
|
474.7 |
|
|
920.8 |
|
900.4 |
Total cost of revenue |
|
832.3 |
|
821.0 |
|
|
1,786.1 |
|
1,757.0 |
Gross profit |
|
273.0 |
|
269.4 |
|
|
455.7 |
|
426.5 |
Selling, general and administrative expenses |
|
63.9 |
|
59.2 |
|
|
183.6 |
|
167.3 |
Operating income |
|
209.1 |
|
210.2 |
|
|
272.1 |
|
259.2 |
Interest expense |
|
13.9 |
|
15.3 |
|
|
41.8 |
|
44.0 |
Other income |
|
2.5 |
|
— |
|
|
7.5 |
|
3.3 |
Income before income taxes |
|
197.7 |
|
194.9 |
|
|
237.8 |
|
218.5 |
Income tax expense |
|
49.6 |
|
48.2 |
|
|
59.4 |
|
56.3 |
Net income |
$ |
148.1 |
$ |
146.7 |
|
$ |
178.4 |
$ |
162.2 |
|
|
|
|
|
|
||||
Net income per share: |
|
|
|
|
|
||||
Basic |
$ |
2.62 |
$ |
2.59 |
|
$ |
3.15 |
$ |
2.87 |
Diluted |
$ |
2.60 |
$ |
2.58 |
|
$ |
3.14 |
$ |
2.86 |
Weighted average common shares outstanding: |
|
|
|
|
|
||||
Basic |
|
56.6 |
|
56.6 |
|
|
56.6 |
|
56.6 |
Diluted |
|
56.9 |
|
56.7 |
|
|
56.8 |
|
56.6 |
Knife River Corporation |
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Consolidated Balance Sheets |
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(Unaudited) |
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|
September 30, 2024 |
|
September 30, 2023 |
|
December 31, 2023 |
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Assets |
(In millions, except shares and per share amounts) |
||||||||||
Current assets: |
|
|
|
|
|
||||||
Cash, cash equivalents and restricted cash |
$ |
267.4 |
|
|
$ |
116.2 |
|
|
$ |
262.3 |
|
Receivables, net |
|
449.2 |
|
|
|
491.9 |
|
|
|
266.8 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
69.3 |
|
|
|
50.5 |
|
|
|
27.3 |
|
Inventories |
|
347.3 |
|
|
|
314.7 |
|
|
|
319.6 |
|
Prepayments and other current assets |
|
26.4 |
|
|
|
38.1 |
|
|
|
37.5 |
|
Total current assets |
|
1,159.6 |
|
|
|
1,011.4 |
|
|
|
913.5 |
|
Noncurrent assets: |
|
|
|
|
|
||||||
Property, plant and equipment |
|
2,692.2 |
|
|
|
2,547.6 |
|
|
|
2,579.7 |
|
Less accumulated depreciation, depletion and amortization |
|
1,346.0 |
|
|
|
1,248.1 |
|
|
|
1,264.7 |
|
Net property, plant and equipment |
|
1,346.2 |
|
|
|
1,299.5 |
|
|
|
1,315.0 |
|
Goodwill |
|
275.3 |
|
|
|
274.5 |
|
|
|
274.5 |
|
Other intangible assets, net |
|
9.8 |
|
|
|
11.5 |
|
|
|
10.8 |
|
Operating lease right-of-use assets |
|
47.4 |
|
|
|
44.3 |
|
|
|
44.7 |
|
Investments and other |
|
45.8 |
|
|
|
39.7 |
|
|
|
41.3 |
|
Total noncurrent assets |
|
1,724.5 |
|
|
|
1,669.5 |
|
|
|
1,686.3 |
|
Total assets |
$ |
2,884.1 |
|
|
$ |
2,680.9 |
|
|
$ |
2,599.8 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
|
||||||
Long-term debt - current portion |
$ |
8.8 |
|
|
$ |
7.1 |
|
|
$ |
7.1 |
|
Accounts payable |
|
180.6 |
|
|
|
149.0 |
|
|
|
107.7 |
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
44.8 |
|
|
|
58.8 |
|
|
|
51.4 |
|
Taxes payable |
|
16.0 |
|
|
|
53.3 |
|
|
|
9.3 |
|
Accrued compensation |
|
42.1 |
|
|
|
37.9 |
|
|
|
48.1 |
|
Accrued interest |
|
13.8 |
|
|
|
16.0 |
|
|
|
7.2 |
|
Current operating lease liabilities |
|
13.5 |
|
|
|
13.7 |
|
|
|
12.9 |
|
Other accrued liabilities |
|
106.5 |
|
|
|
89.2 |
|
|
|
103.6 |
|
Total current liabilities |
|
426.1 |
|
|
|
425.0 |
|
|
|
347.3 |
|
Noncurrent liabilities: |
|
|
|
|
|
||||||
Long-term debt |
|
669.7 |
|
|
|
675.6 |
|
|
|
674.6 |
|
Deferred income taxes |
|
187.9 |
|
|
|
174.0 |
|
|
|
174.5 |
|
Noncurrent operating lease liabilities |
|
33.9 |
|
|
|
30.6 |
|
|
|
31.8 |
|
Other |
|
117.6 |
|
|
|
132.7 |
|
|
|
105.6 |
|
Total liabilities |
|
1,435.2 |
|
|
|
1,437.9 |
|
|
|
1,333.8 |
|
Commitments and contingencies |
|
|
|
|
|
||||||
Stockholders' equity: |
|
|
|
|
|
||||||
Common stock, 300,000,000 shares authorized, |
|
.6 |
|
|
|
.6 |
|
|
|
.6 |
|
Other paid-in capital |
|
618.8 |
|
|
|
613.0 |
|
|
|
614.5 |
|
Retained earnings |
|
844.2 |
|
|
|
645.2 |
|
|
|
665.8 |
|
Treasury stock held at cost - 431,136 shares |
|
(3.6 |
) |
|
|
(3.6 |
) |
|
|
(3.6 |
) |
Accumulated other comprehensive loss |
|
(11.1 |
) |
|
|
(12.2 |
) |
|
|
(11.3 |
) |
Total stockholders' equity |
|
1,448.9 |
|
|
|
1,243.0 |
|
|
|
1,266.0 |
|
Total liabilities and stockholders' equity |
$ |
2,884.1 |
|
|
$ |
2,680.9 |
|
|
$ |
2,599.8 |
|
Knife River Corporation |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(In millions) |
||||||
Operating activities: |
|
|
|
||||
Net income |
$ |
178.4 |
|
|
$ |
162.2 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
115.1 |
|
|
|
93.0 |
|
Changes in current assets and liabilities, net of acquisitions: |
|
|
|
||||
Receivables |
|
(224.8 |
) |
|
|
(302.5 |
) |
Due from related-party |
|
— |
|
|
|
16.1 |
|
Inventories |
|
(27.3 |
) |
|
|
8.6 |
|
Other current assets |
|
11.1 |
|
|
|
(20.2 |
) |
Accounts payable |
|
77.2 |
|
|
|
91.6 |
|
Due to related-party |
|
— |
|
|
|
(7.3 |
) |
Other current liabilities |
|
17.3 |
|
|
|
78.0 |
|
Pension and postretirement benefit plan contributions |
|
(2.5 |
) |
|
|
(1.6 |
) |
Other noncurrent changes |
|
5.4 |
|
|
|
35.0 |
|
Net cash provided by operating activities |
|
149.9 |
|
|
|
152.9 |
|
Investing activities: |
|
|
|
||||
Capital expenditures |
|
(127.2 |
) |
|
|
(86.4 |
) |
Acquisitions, net of cash acquired |
|
(15.0 |
) |
|
|
— |
|
Net proceeds from sale or disposition of property and other |
|
7.6 |
|
|
|
5.2 |
|
Investments |
|
(3.2 |
) |
|
|
(1.7 |
) |
Net cash used in investing activities |
|
(137.8 |
) |
|
|
(82.9 |
) |
Financing activities: |
|
|
|
||||
Issuance of long-term related-party notes, net |
|
— |
|
|
|
205.3 |
|
Issuance of long-term debt |
|
— |
|
|
|
700.0 |
|
Repayment of long-term debt |
|
(5.3 |
) |
|
|
(1.9 |
) |
Debt issuance costs |
|
— |
|
|
|
(16.7 |
) |
Tax withholding on stock-based compensation |
|
(1.7 |
) |
|
|
— |
|
Net transfers to Centennial Energy Holdings Inc. |
|
— |
|
|
|
(850.6 |
) |
Net cash provided by (used in) financing activities |
|
(7.0 |
) |
|
|
36.1 |
|
Increase in cash, cash equivalents and restricted cash |
|
5.1 |
|
|
|
106.1 |
|
Cash, cash equivalents and restricted cash -- beginning of year |
|
262.3 |
|
|
|
10.1 |
|
Cash, cash equivalents and restricted cash -- end of period |
$ |
267.4 |
|
|
$ |
116.2 |
|
Segment Financial Data and Highlights (Unaudited) |
|||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
September 30, |
|
September 30, |
||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||
|
Dollars |
Margin |
|
Dollars |
Margin |
|
Dollars |
Margin |
|
Dollars |
Margin |
||||||||||||
|
(Dollars in millions) |
||||||||||||||||||||||
Revenues by segment: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pacific |
$ |
165.0 |
|
|
|
$ |
157.3 |
|
|
|
$ |
375.2 |
|
|
|
$ |
348.1 |
|
|
||||
Northwest |
|
218.1 |
|
|
|
|
209.4 |
|
|
|
|
539.7 |
|
|
|
|
504.2 |
|
|
||||
Mountain |
|
261.1 |
|
|
|
|
255.1 |
|
|
|
|
514.9 |
|
|
|
|
491.5 |
|
|
||||
Central |
|
354.9 |
|
|
|
|
354.9 |
|
|
|
|
630.5 |
|
|
|
|
643.6 |
|
|
||||
Energy Services |
|
125.9 |
|
|
|
|
140.6 |
|
|
|
|
214.9 |
|
|
|
|
234.1 |
|
|
||||
Total segment revenues |
|
1,125.0 |
|
|
|
|
1,117.3 |
|
|
|
|
2,275.2 |
|
|
|
|
2,221.5 |
|
|
||||
Corporate Services and Eliminations |
|
(19.7 |
) |
|
|
|
(26.9 |
) |
|
|
|
(33.4 |
) |
|
|
|
(38.0 |
) |
|
||||
Consolidated revenues |
$ |
1,105.3 |
|
|
|
$ |
1,090.4 |
|
|
|
$ |
2,241.8 |
|
|
|
$ |
2,183.5 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit by segment: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pacific |
$ |
34.3 |
|
20.8 |
% |
|
$ |
33.3 |
|
21.1 |
% |
|
$ |
60.2 |
|
16.0 |
% |
|
$ |
59.8 |
|
17.2 |
% |
Northwest |
|
57.4 |
|
26.3 |
% |
|
|
50.2 |
|
24.0 |
% |
|
|
129.1 |
|
23.9 |
% |
|
|
107.9 |
|
21.4 |
% |
Mountain |
|
61.1 |
|
23.4 |
% |
|
|
59.7 |
|
23.4 |
% |
|
|
101.1 |
|
19.6 |
% |
|
|
88.8 |
|
18.1 |
% |
Central |
|
85.4 |
|
24.1 |
% |
|
|
80.4 |
|
22.6 |
% |
|
|
110.6 |
|
17.5 |
% |
|
|
101.1 |
|
15.7 |
% |
Energy Services |
|
34.7 |
|
27.5 |
% |
|
|
46.7 |
|
33.3 |
% |
|
|
53.7 |
|
25.0 |
% |
|
|
68.2 |
|
29.1 |
% |
Total segment gross profit |
|
272.9 |
|
24.3 |
% |
|
|
270.3 |
|
24.2 |
% |
|
|
454.7 |
|
20.0 |
% |
|
|
425.8 |
|
19.2 |
% |
Corporate Services and Eliminations |
|
0.1 |
|
(0.6 |
)% |
|
|
(0.9 |
) |
3.2 |
% |
|
|
1.0 |
|
(3.0 |
)% |
|
|
0.7 |
|
(1.6 |
)% |
Consolidated gross profit |
$ |
273.0 |
|
24.7 |
% |
|
$ |
269.4 |
|
24.7 |
% |
|
$ |
455.7 |
|
20.3 |
% |
|
$ |
426.5 |
|
19.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income by segment: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pacific |
$ |
23.4 |
|
14.2 |
% |
|
$ |
23.1 |
|
14.7 |
% |
|
$ |
28.5 |
|
7.6 |
% |
|
$ |
30.2 |
|
8.7 |
% |
Northwest |
|
45.2 |
|
20.7 |
% |
|
|
38.7 |
|
18.5 |
% |
|
|
95.1 |
|
17.6 |
% |
|
|
72.9 |
|
14.5 |
% |
Mountain |
|
52.7 |
|
20.2 |
% |
|
|
53.1 |
|
20.8 |
% |
|
|
76.8 |
|
14.9 |
% |
|
|
67.4 |
|
13.7 |
% |
Central |
|
70.1 |
|
19.8 |
% |
|
|
66.1 |
|
18.6 |
% |
|
|
69.7 |
|
11.1 |
% |
|
|
61.1 |
|
9.5 |
% |
Energy Services |
|
32.4 |
|
25.8 |
% |
|
|
44.5 |
|
31.6 |
% |
|
|
46.8 |
|
21.8 |
% |
|
|
60.8 |
|
26.0 |
% |
Total segment net income |
|
223.8 |
|
19.9 |
% |
|
|
225.5 |
|
20.2 |
% |
|
|
316.9 |
|
13.9 |
% |
|
|
292.4 |
|
13.2 |
% |
Corporate Services and Eliminations (a) |
|
(75.7 |
) |
N.M. |
|
|
(78.8 |
) |
N.M. |
|
|
(138.5 |
) |
N.M. |
|
|
(130.2 |
) |
N.M. |
||||
Consolidated net income |
$ |
148.1 |
|
13.4 |
% |
|
$ |
146.7 |
|
13.4 |
% |
|
$ |
178.4 |
|
8.0 |
% |
|
$ |
162.2 |
|
7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA by segment: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pacific |
$ |
29.5 |
|
17.9 |
% |
|
$ |
28.6 |
|
18.2 |
% |
|
$ |
46.5 |
|
12.4 |
% |
|
$ |
46.1 |
|
13.3 |
% |
Northwest |
|
55.9 |
|
25.6 |
% |
|
|
48.5 |
|
23.2 |
% |
|
|
126.8 |
|
23.5 |
% |
|
|
101.3 |
|
20.1 |
% |
Mountain |
|
59.4 |
|
22.8 |
% |
|
|
59.4 |
|
23.3 |
% |
|
|
96.5 |
|
18.7 |
% |
|
|
86.0 |
|
17.5 |
% |
Central |
|
79.8 |
|
22.5 |
% |
|
|
74.8 |
|
21.1 |
% |
|
|
97.3 |
|
15.4 |
% |
|
|
86.3 |
|
13.4 |
% |
Energy Services |
|
33.7 |
|
26.8 |
% |
|
|
45.7 |
|
32.5 |
% |
|
|
50.6 |
|
23.5 |
% |
|
|
64.5 |
|
27.6 |
% |
Total segment EBITDA (b) |
|
258.3 |
|
23.0 |
% |
|
|
257.0 |
|
23.0 |
% |
|
|
417.7 |
|
18.4 |
% |
|
|
384.2 |
|
17.3 |
% |
Corporate Services and Eliminations |
|
(13.7 |
) |
N.M. |
|
|
(15.6 |
) |
N.M. |
|
|
(42.3 |
) |
N.M. |
|
|
(31.8 |
) |
N.M. |
||||
Consolidated EBITDA (b) |
$ |
244.6 |
|
22.1 |
% |
|
$ |
241.4 |
|
22.1 |
% |
|
$ |
375.4 |
|
16.7 |
% |
|
$ |
352.4 |
|
16.1 |
% |
(a) |
N.M. - not meaningful |
(b) |
EBITDA, segment EBITDA, EBITDA margin and segment EBITDA margin are non-GAAP financial measures. For more information and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures." |
The following table summarizes backlog for the company.
|
September 30, 2024 |
|
September 30, 2023 |
||
|
(In millions) |
||||
Pacific |
$ |
114.9 |
|
$ |
69.8 |
Northwest |
|
168.0 |
|
|
227.4 |
Mountain |
|
279.9 |
|
|
251.1 |
Central |
|
192.3 |
|
|
183.9 |
|
$ |
755.1 |
|
$ |
732.2 |
Margins on backlog at September 30, 2024, are expected to be slightly higher than the margins on backlog at September 30, 2023. Approximately
|
Three Months Ended |
|
Nine Months Ended |
||||||
|
September 30, |
|
September 30, |
||||||
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
Sales (thousands): |
|
|
|
|
|
||||
Aggregates (tons) |
|
11,169 |
|
12,022 |
|
|
24,833 |
|
26,071 |
Ready-mix concrete (cubic yards) |
|
1,148 |
|
1,271 |
|
|
2,653 |
|
2,944 |
Asphalt (tons) |
|
3,150 |
|
3,349 |
|
|
5,183 |
|
5,441 |
|
|
|
|
|
|
||||
Average selling price:* |
|
|
|
|
|
||||
Aggregates (per ton) |
$ |
17.32 |
$ |
16.10 |
|
$ |
17.56 |
$ |
16.24 |
Ready-mix concrete (per cubic yard) |
$ |
185.97 |
$ |
169.98 |
|
$ |
185.78 |
$ |
169.02 |
Asphalt (per ton) |
$ |
68.28 |
$ |
66.51 |
|
$ |
67.68 |
$ |
66.41 |
* The average selling price includes freight and delivery and other revenues. |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
September 30, |
|
September 30, |
||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||
|
Dollars |
Margin |
|
Dollars |
Margin |
|
Dollars |
Margin |
|
Dollars |
Margin |
||||||||||||
|
(Dollars in millions) |
||||||||||||||||||||||
Revenues by product line: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aggregates |
$ |
193.4 |
|
|
|
$ |
193.6 |
|
|
|
$ |
436.2 |
|
|
|
$ |
423.5 |
|
|
||||
Ready-mix concrete |
|
213.5 |
|
|
|
|
216.0 |
|
|
|
|
492.8 |
|
|
|
|
497.7 |
|
|
||||
Asphalt |
|
215.1 |
|
|
|
|
222.8 |
|
|
|
|
350.8 |
|
|
|
|
361.3 |
|
|
||||
Liquid asphalt |
|
110.9 |
|
|
|
|
122.6 |
|
|
|
|
187.3 |
|
|
|
|
203.8 |
|
|
||||
Other* |
|
89.7 |
|
|
|
|
91.5 |
|
|
|
|
206.4 |
|
|
|
|
192.1 |
|
|
||||
Contracting services |
|
559.6 |
|
|
|
|
537.3 |
|
|
|
|
1,056.8 |
|
|
|
|
1,005.8 |
|
|
||||
Internal sales |
|
(276.9 |
) |
|
|
|
(293.4 |
) |
|
|
|
(488.5 |
) |
|
|
|
(500.7 |
) |
|
||||
Total revenues |
$ |
1,105.3 |
|
|
|
$ |
1,090.4 |
|
|
|
$ |
2,241.8 |
|
|
|
$ |
2,183.5 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit by product line: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aggregates |
$ |
51.7 |
|
26.7 |
% |
|
$ |
51.8 |
|
26.7 |
% |
|
$ |
96.1 |
|
22.0 |
% |
|
$ |
90.6 |
|
21.4 |
% |
Ready-mix concrete |
|
39.6 |
|
18.6 |
% |
|
|
37.7 |
|
17.4 |
% |
|
|
78.1 |
|
15.8 |
% |
|
|
74.5 |
|
15.0 |
% |
Asphalt |
|
43.1 |
|
20.0 |
% |
|
|
39.4 |
|
17.7 |
% |
|
|
54.7 |
|
15.6 |
% |
|
|
49.7 |
|
13.8 |
% |
Liquid asphalt |
|
28.8 |
|
26.0 |
% |
|
|
39.2 |
|
32.0 |
% |
|
|
43.7 |
|
23.3 |
% |
|
|
57.4 |
|
28.1 |
% |
Other* |
|
37.5 |
|
41.8 |
% |
|
|
38.7 |
|
42.3 |
% |
|
|
47.1 |
|
22.8 |
% |
|
|
48.9 |
|
25.5 |
% |
Contracting services |
|
72.3 |
|
12.9 |
% |
|
|
62.6 |
|
11.7 |
% |
|
|
136.0 |
|
12.9 |
% |
|
|
105.4 |
|
10.5 |
% |
Total gross profit |
$ |
273.0 |
|
24.7 |
% |
|
$ |
269.4 |
|
24.7 |
% |
|
$ |
455.7 |
|
20.3 |
% |
|
$ |
426.5 |
|
19.5 |
% |
* Other includes cement, merchandise, fabric and spreading, and other products and services that individually are not considered to be a core line of business. |
NON-GAAP FINANCIAL MEASURES
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, including those measures by segment, as applicable, net debt and net leverage are considered non-GAAP measures of financial performance. These non-GAAP financial measures are not measures of financial performance under GAAP. The items excluded from these non-GAAP financial measures are significant components in understanding and assessing financial performance. Therefore, these non-GAAP financial measures should not be considered substitutes for the applicable GAAP metric.
EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are most directly comparable to the corresponding GAAP measures of net income and net income margin. Net debt and net leverage are most directly comparable to the corresponding GAAP measures of total debt. We believe these non-GAAP financial measures, in addition to corresponding GAAP measures, are useful to investors by providing meaningful information about operational efficiency compared to our peers by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. We believe Adjusted EBITDA and Adjusted EBITDA margin are useful performance measures because they allow for an effective evaluation of our operating performance by excluding stock-based compensation and unrealized gains and losses on benefit plan investments as they are considered non-cash and not part of our core operations. We also exclude the one-time, non-recurring costs associated with the separation of Knife River from MDU Resources as those are not expected to continue. We believe EBITDA and Adjusted EBITDA assist rating agencies and investors in comparing operating performance across operating periods on a consistent basis by excluding items management does not believe are indicative of the company's operating performance, including using EBITDA and Adjusted EBITDA to calculate Knife River’s leverage as a multiple of EBITDA and Adjusted EBITDA. Additionally, EBITDA and Adjusted EBITDA are important financial metrics for debt investors who utilize debt to EBITDA and debt to Adjusted EBITDA ratios. We believe EBITDA and EBITDA margin, including those measures by segment, are useful performance measures because they provide clarity as to the operational results of the company. Management believes net debt and net leverage are useful performance measures because they provide a measure of how long it would take the company to pay back its debt if net debt and Adjusted EBITDA were constant. Net leverage also allows management to assess our borrowing capacity and optimal leverage ratio. Our management uses these non-GAAP financial measures in conjunction with GAAP results when evaluating our operating results internally and calculating employee incentive compensation, and leverage as a multiple of Adjusted EBITDA to determine the appropriate method of funding our operations.
EBITDA is calculated by adding back income taxes, interest expense (net of interest income) and depreciation, depletion and amortization expense to net income. EBITDA margin is calculated by dividing EBITDA by revenues. Adjusted EBITDA is calculated by adding back unrealized gains and losses on benefit plan investments, stock-based compensation and one-time separation costs, to EBITDA. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues. Net debt is calculated by adding unamortized debt issuance costs to the total debt balance presented on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt by trailing-twelve-month Adjusted EBITDA. These non-GAAP financial measures are calculated the same for both the segment and consolidated metrics and should not be considered as alternatives to, or more meaningful than, GAAP financial measures such as net income, net income margin and total debt and are intended to be helpful supplemental financial measures for investors’ understanding of our operating performance. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies’ EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, net debt and net leverage measures having the same or similar names.
The following information reconciles segment and consolidated net income (loss) to EBITDA and Adjusted EBITDA and provides the calculation of EBITDA margin, Adjusted EBITDA margin, net debt and net leverage. Interest expense, net, is net of interest income that is included in other income (expense) on the Consolidated Statements of Operations.
Three Months Ended September 30, 2024 |
Pacific |
Northwest |
Mountain |
Central |
Energy
|
Corporate
|
Consolidated |
||||||||||||||
|
(In millions) |
||||||||||||||||||||
Net income (loss) |
$ |
23.4 |
|
$ |
45.2 |
|
$ |
52.7 |
|
$ |
70.1 |
|
$ |
32.4 |
|
$ |
(75.7 |
) |
$ |
148.1 |
|
Depreciation, depletion and amortization |
|
6.1 |
|
|
10.7 |
|
|
6.7 |
|
|
9.7 |
|
|
1.3 |
|
|
0.3 |
|
|
34.8 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12.1 |
|
|
12.1 |
|
Income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
49.6 |
|
|
49.6 |
|
EBITDA |
$ |
29.5 |
|
$ |
55.9 |
|
$ |
59.4 |
|
$ |
79.8 |
|
$ |
33.7 |
|
$ |
(13.7 |
) |
$ |
244.6 |
|
Unrealized (gains) losses on benefit plan investments |
|
|
|
|
|
$ |
(1.2 |
) |
$ |
(1.2 |
) |
||||||||||
Stock-based compensation expense |
|
|
|
|
|
|
1.8 |
|
|
1.8 |
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
$ |
(13.1 |
) |
$ |
245.2 |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
Revenue |
$ |
165.0 |
|
$ |
218.1 |
|
$ |
261.1 |
|
$ |
354.9 |
|
$ |
125.9 |
|
$ |
(19.7 |
) |
$ |
1,105.3 |
|
Net Income Margin |
|
14.2 |
% |
|
20.7 |
% |
|
20.2 |
% |
|
19.8 |
% |
|
25.8 |
% |
N.M. |
|
13.4 |
% |
||
EBITDA Margin |
|
17.9 |
% |
|
25.6 |
% |
|
22.8 |
% |
|
22.5 |
% |
|
26.8 |
% |
N.M. |
|
22.1 |
% |
||
Adjusted EBITDA Margin |
|
|
|
|
|
N.M. |
|
22.2 |
% |
||||||||||||
* N.M. - not meaningful |
Three Months Ended September 30, 2023 |
Pacific |
Northwest |
Mountain |
Central |
Energy
|
Corporate
|
Consolidated |
||||||||||||||
|
(In millions) |
||||||||||||||||||||
Net income (loss) |
$ |
23.1 |
|
$ |
38.7 |
|
$ |
53.1 |
|
$ |
66.1 |
|
$ |
44.5 |
|
$ |
(78.8 |
) |
$ |
146.7 |
|
Depreciation, depletion and amortization |
|
5.5 |
|
|
9.8 |
|
|
6.3 |
|
|
8.7 |
|
|
1.2 |
|
|
0.3 |
|
|
31.8 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
14.7 |
|
|
14.7 |
|
Income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
48.2 |
|
|
48.2 |
|
EBITDA |
$ |
28.6 |
|
$ |
48.5 |
|
$ |
59.4 |
|
$ |
74.8 |
|
$ |
45.7 |
|
$ |
(15.6 |
) |
$ |
241.4 |
|
Unrealized (gains) losses on benefit plan investments |
|
|
|
|
|
$ |
0.6 |
|
$ |
0.6 |
|
||||||||||
Stock-based compensation expense |
|
|
|
|
|
|
1.5 |
|
|
1.5 |
|
||||||||||
One-time separation costs |
|
|
|
|
|
|
4.0 |
|
|
4.0 |
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
$ |
(9.5 |
) |
$ |
247.5 |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
Revenue |
$ |
157.3 |
|
$ |
209.4 |
|
$ |
255.1 |
|
$ |
354.9 |
|
$ |
140.6 |
|
$ |
(26.9 |
) |
$ |
1,090.4 |
|
Net Income Margin |
|
14.7 |
% |
|
18.5 |
% |
|
20.8 |
% |
|
18.6 |
% |
|
31.6 |
% |
N.M. |
|
13.4 |
% |
||
EBITDA Margin |
|
18.2 |
% |
|
23.2 |
% |
|
23.3 |
% |
|
21.1 |
% |
|
32.5 |
% |
N.M. |
|
22.1 |
% |
||
Adjusted EBITDA Margin |
|
|
|
|
|
N.M. |
|
22.7 |
% |
||||||||||||
* N.M. - not meaningful |
Nine Months Ended September 30, 2024 |
Pacific |
Northwest |
Mountain |
Central |
Energy
|
Corporate
|
Consolidated |
||||||||||||||
|
(In millions) |
||||||||||||||||||||
Net income (loss) |
$ |
28.5 |
|
$ |
95.1 |
|
$ |
76.8 |
|
$ |
69.7 |
|
$ |
46.8 |
|
$ |
(138.5 |
) |
$ |
178.4 |
|
Depreciation, depletion and amortization |
|
18.0 |
|
|
31.7 |
|
|
19.6 |
|
|
27.6 |
|
|
3.8 |
|
|
0.8 |
|
|
101.5 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
36.0 |
|
|
36.1 |
|
Income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
59.4 |
|
|
59.4 |
|
EBITDA |
$ |
46.5 |
|
$ |
126.8 |
|
$ |
96.5 |
|
$ |
97.3 |
|
$ |
50.6 |
|
$ |
(42.3 |
) |
$ |
375.4 |
|
Unrealized (gains) losses on benefit plan investments |
|
|
|
|
|
$ |
(2.8 |
) |
$ |
(2.8 |
) |
||||||||||
Stock-based compensation expense |
|
|
|
|
|
|
5.4 |
|
|
5.4 |
|
||||||||||
One-time separation costs |
|
|
|
|
|
|
3.8 |
|
|
3.8 |
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
$ |
(35.9 |
) |
$ |
381.8 |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
Revenue |
$ |
375.2 |
|
$ |
539.7 |
|
$ |
514.9 |
|
$ |
630.5 |
|
$ |
214.9 |
|
$ |
(33.4 |
) |
$ |
2,241.8 |
|
Net Income Margin |
|
7.6 |
% |
|
17.6 |
% |
|
14.9 |
% |
|
11.1 |
% |
|
21.8 |
% |
N.M. |
|
8.0 |
% |
||
EBITDA Margin |
|
12.4 |
% |
|
23.5 |
% |
|
18.7 |
% |
|
15.4 |
% |
|
23.5 |
% |
N.M. |
|
16.7 |
% |
||
Adjusted EBITDA Margin |
|
|
|
|
|
N.M. |
|
17.0 |
% |
||||||||||||
* N.M. - not meaningful |
Nine Months Ended September 30, 2023 |
Pacific |
Northwest |
Mountain |
Central |
Energy
|
Corporate
|
Consolidated |
||||||||||||||
|
(In millions) |
||||||||||||||||||||
Net income (loss) |
$ |
30.2 |
|
$ |
72.9 |
|
$ |
67.4 |
|
$ |
61.1 |
|
$ |
60.8 |
|
$ |
(130.2 |
) |
$ |
162.2 |
|
Depreciation, depletion and amortization |
|
15.9 |
|
|
28.4 |
|
|
18.5 |
|
|
25.2 |
|
|
3.7 |
|
|
0.8 |
|
|
92.5 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
41.3 |
|
|
41.4 |
|
Income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
56.3 |
|
|
56.3 |
|
EBITDA |
$ |
46.1 |
|
$ |
101.3 |
|
$ |
86.0 |
|
$ |
86.3 |
|
$ |
64.5 |
|
$ |
(31.8 |
) |
$ |
352.4 |
|
Unrealized (gains) losses on benefit plan investments |
|
|
|
|
|
$ |
(1.1 |
) |
$ |
(1.1 |
) |
||||||||||
Stock-based compensation expense |
|
|
|
|
|
|
2.3 |
|
|
2.3 |
|
||||||||||
One-time separation costs |
|
|
|
|
|
|
6.4 |
|
|
6.4 |
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
$ |
(24.2 |
) |
$ |
360.0 |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
Revenue |
$ |
348.1 |
|
$ |
504.2 |
|
$ |
491.5 |
|
$ |
643.6 |
|
$ |
234.1 |
|
$ |
(38.0 |
) |
$ |
2,183.5 |
|
Net Income Margin |
|
8.7 |
% |
|
14.5 |
% |
|
13.7 |
% |
|
9.5 |
% |
|
26.0 |
% |
N.M. |
|
7.4 |
% |
||
EBITDA Margin |
|
13.3 |
% |
|
20.1 |
% |
|
17.5 |
% |
|
13.4 |
% |
|
27.6 |
% |
N.M. |
|
16.1 |
% |
||
Adjusted EBITDA Margin |
|
|
|
|
|
N.M. |
|
16.5 |
% |
||||||||||||
* N.M. - not meaningful |
The following tables provide the reconciliation to trailing-twelve-month EBITDA and Adjusted EBITDA as of September 30, 2024, as well as the net leverage calculation of net debt to trailing-twelve-month Adjusted EBITDA.
|
Twelve Months
|
|
Nine Months
|
Twelve Months
|
Nine Months
|
||||||||
|
(In millions) |
||||||||||||
Net income |
$ |
199.1 |
|
|
$ |
178.4 |
|
$ |
182.9 |
|
$ |
162.2 |
|
Depreciation, depletion and amortization |
|
132.8 |
|
|
|
101.5 |
|
|
123.8 |
|
|
92.5 |
|
Interest expense, net |
|
47.6 |
|
|
|
36.1 |
|
|
52.9 |
|
|
41.4 |
|
Income taxes |
|
65.5 |
|
|
|
59.4 |
|
|
62.4 |
|
|
56.3 |
|
EBITDA |
$ |
445.0 |
|
|
$ |
375.4 |
|
$ |
422.0 |
|
$ |
352.4 |
|
Unrealized (gains) losses on benefit plan investments |
|
(4.4 |
) |
|
|
(2.8 |
) |
|
(2.7 |
) |
|
(1.1 |
) |
Stock-based compensation expense |
|
6.2 |
|
|
|
5.4 |
|
|
3.1 |
|
|
2.3 |
|
One-time separation costs |
|
7.4 |
|
|
|
3.8 |
|
|
10.0 |
|
|
6.4 |
|
Adjusted EBITDA |
$ |
454.2 |
|
|
$ |
381.8 |
|
$ |
432.4 |
|
$ |
360.0 |
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
2,888.6 |
|
|
$ |
2,241.8 |
|
$ |
2,830.3 |
|
$ |
2,183.5 |
|
Net Income Margin |
|
6.9 |
% |
|
|
8.0 |
% |
|
6.5 |
% |
|
7.4 |
% |
EBITDA Margin |
|
15.4 |
% |
|
|
16.7 |
% |
|
14.9 |
% |
|
16.1 |
% |
Adjusted EBITDA Margin |
|
15.7 |
% |
|
|
17.0 |
% |
|
15.3 |
% |
|
16.5 |
% |
|
Twelve Months
|
|
Nine Months
|
Twelve Months
|
Nine Months
|
||||||||
|
(In millions) |
||||||||||||
Net income |
$ |
180.2 |
|
|
$ |
162.2 |
|
$ |
116.2 |
|
$ |
98.2 |
|
Depreciation, depletion and amortization |
|
121.7 |
|
|
|
92.5 |
|
|
117.8 |
|
|
88.6 |
|
Interest expense, net |
|
50.0 |
|
|
|
41.4 |
|
|
30.1 |
|
|
21.5 |
|
Income taxes |
|
66.0 |
|
|
|
56.3 |
|
|
42.6 |
|
|
32.9 |
|
EBITDA |
$ |
417.9 |
|
|
$ |
352.4 |
|
$ |
306.7 |
|
$ |
241.2 |
|
Unrealized (gains) losses on benefit plan investments |
|
(1.9 |
) |
|
|
(1.1 |
) |
|
4.0 |
|
|
4.8 |
|
Stock-based compensation expense |
|
3.4 |
|
|
|
2.3 |
|
|
2.7 |
|
|
1.6 |
|
One-time separation costs |
|
6.4 |
|
|
|
6.4 |
|
|
— |
|
|
— |
|
Adjusted EBITDA |
$ |
425.8 |
|
|
$ |
360.0 |
|
$ |
313.4 |
|
$ |
247.6 |
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
2,721.0 |
|
|
$ |
2,183.5 |
|
$ |
2,534.7 |
|
$ |
1,997.2 |
|
Net Income Margin |
|
6.6 |
% |
|
|
7.4 |
% |
|
4.6 |
% |
|
4.9 |
% |
EBITDA Margin |
|
15.4 |
% |
|
|
16.1 |
% |
|
12.1 |
% |
|
12.1 |
% |
Adjusted EBITDA Margin |
|
15.6 |
% |
|
|
16.5 |
% |
|
12.4 |
% |
|
12.4 |
% |
The following table provides the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA.
|
Twelve Months
|
|
|
|
(In millions) |
||
Long-term debt |
$ |
669.7 |
|
Long-term debt - current portion |
|
8.8 |
|
Total debt |
|
678.5 |
|
Add: Unamortized debt issuance costs |
|
13.2 |
|
Total debt, gross |
|
691.7 |
|
Less: Cash and cash equivalents, excluding restricted cash |
|
220.4 |
|
Total debt, net |
$ |
471.3 |
|
Trailing-twelve-months ended September 30, 2024, Adjusted EBITDA |
$ |
454.2 |
|
|
|
|
|
Net leverage |
|
1.0 |
x |
The following table provides a reconciliation of consolidated GAAP net income to EBITDA and Adjusted EBITDA for forecasted results.
|
2024 |
|||||
|
Low |
High |
||||
|
(In millions) |
|||||
Net income |
$ |
190.0 |
|
$ |
205.0 |
|
Adjustments: |
|
|
||||
Interest expense, net |
|
46.0 |
|
|
46.0 |
|
Income taxes |
|
65.0 |
|
|
70.0 |
|
Depreciation, depletion and amortization |
|
135.9 |
|
|
135.9 |
|
EBITDA |
$ |
436.9 |
|
$ |
456.9 |
|
Unrealized (gains) losses on benefit plan investments |
|
(2.9 |
) |
|
(2.9 |
) |
Stock-based compensation expense |
|
7.2 |
|
|
7.2 |
|
One-time separation costs |
|
3.8 |
|
|
3.8 |
|
Adjusted EBITDA |
$ |
445.0 |
|
$ |
465.0 |
|
FORWARD-LOOKING STATEMENTS
The information in this news release highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries. Many of these highlighted statements and other statements not historical in nature are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, there is no assurance the company’s projections or estimates for growth, shareholder value creation, financial guidance, expected backlog margin or other proposed strategies will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's 2023 Form 10-K and subsequent filings with the Securities and Exchange Commission.
Changes in such assumptions and factors could cause actual future results to differ materially from growth and financial guidance. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104754022/en/
Media Contact: Tony Spilde, Senior Director of Communications, 541-693-5949
IR Contact: Zane Karimi, Director of Investor Relations, 503-944-3508
Source: Knife River Corporation
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