VULCAN REPORTS SECOND QUARTER 2024 RESULTS
Vulcan Materials Company (NYSE: VMC), the largest U.S. producer of construction aggregates, reported Q2 2024 results with earnings growth and margin expansion. Key highlights include:
- Total revenues: $2,014 million
- Net earnings: $308 million
- Adjusted EBITDA: $603 million (29.9% margin)
- Earnings per diluted share: $2.33
The Aggregates segment saw a 6% increase in gross profit to $529 million, with cash gross profit per ton up 12% to $10.92. Shipments decreased 5% due to rainfall, but pricing remained strong with a 12% increase in freight-adjusted selling prices.
For the full year 2024, Vulcan expects:
- Aggregates shipments down 4-7%
- Freight-adjusted price improvement of 10-12%
- Adjusted EBITDA between $2.00 and $2.15 billion
Vulcan Materials Company (NYSE: VMC), il più grande produttore di aggregati per costruzioni negli Stati Uniti, ha riportato i risultati del secondo trimestre 2024 con una crescita degli utili e un'espansione dei margini. I principali punti salienti includono:
- Fatturato totale: 2.014 milioni di dollari
- Utile netto: 308 milioni di dollari
- EBITDA rettificato: 603 milioni di dollari (margine del 29,9%)
- Utile per azione diluita: 2,33 dollari
Il segmento Aggregati ha registrato un aumento del 6% nel profitto lordo, raggiungendo 529 milioni di dollari, con un profitto lordo per tonnellata in aumento del 12% a 10,92 dollari. Le spedizioni sono diminuite del 5% a causa della pioggia, ma i prezzi sono rimasti solidi con un incremento del 12% nei prezzi di vendita aggiustati per il freddo.
Per l'intero anno 2024, Vulcan prevede:
- Spedizioni di aggregati in diminuzione del 4-7%
- Miglioramento del prezzo aggiustato per il freddo del 10-12%
- EBITDA rettificato tra 2,00 e 2,15 miliardi di dollari
Vulcan Materials Company (NYSE: VMC), el mayor productor de agregados de construcción en EE. UU., reportó los resultados del segundo trimestre de 2024, con crecimiento en ganancias y expansión de márgenes. Los aspectos más destacados incluyen:
- Ingresos totales: 2,014 millones de dólares
- Ganancia neta: 308 millones de dólares
- EBITDA ajustado: 603 millones de dólares (margen del 29.9%)
- Ganancias por acción diluida: 2.33 dólares
El segmento de Agregados vio un aumento del 6% en el beneficio bruto, alcanzando 529 millones de dólares, con un beneficio bruto por tonelada que aumentó un 12% a 10.92 dólares. Los envíos disminuyeron un 5% debido a la lluvia, pero los precios se mantuvieron fuertes con un aumento del 12% en los precios de venta ajustados por flete.
Para el año completo 2024, Vulcan espera:
- Disminución del envío de agregados del 4-7%
- Mejora del precio ajustado por flete del 10-12%
- EBITDA ajustado entre 2.00 y 2.15 mil millones de dólares
벌컨 머티리얼즈 컴퍼니(NYSE: VMC)는 미국 최대의 건설용 자재 생산업체로서, 2024년 2분기 실적을 보고하며 수익 성장과 마진 확장을 발표했습니다. 주요 하이라이트는 다음과 같습니다:
- 총 수익: 20억 1400만 달러
- 순익: 3억 800만 달러
- 조정된 EBITDA: 6억 300만 달러 (29.9% 마진)
- 희석주당 수익: 2.33 달러
집합체 부문은 총 5억 2900만 달러의 총 이익으로 6% 증가했으며, 톤당 현금 총 이익이 12% 증가하여 10.92달러에 달했습니다. 배송량은 비 때문에 5% 감소했지만, 가격은 강세를 유지하며 화물 조정 판매가격이 12% 상승했습니다.
2024년 전체 연도에 대해 벌컨은 다음과 같은 예상을 하고 있습니다:
- 집합체 배송량 4-7% 감소
- 화물 조정 가격 개선 10-12%
- 조정된 EBITDA 20억에서 21억 5000만 달러 사이
Vulcan Materials Company (NYSE: VMC), le plus grand producteur d'agrégats de construction aux États-Unis, a reporté les résultats du deuxième trimestre 2024 avec une croissance des bénéfices et une expansion des marges. Les points clés incluent :
- Revenus totaux : 2 014 millions de dollars
- Bénéfice net : 308 millions de dollars
- EBITDA ajusté : 603 millions de dollars (marge de 29,9%)
- Bénéfice par action diluée : 2,33 dollars
Le segment Agrégats a enregistré une augmentation de 6 % du bénéfice brut à 529 millions de dollars, avec un bénéfice brut par tonne en hausse de 12 % à 10,92 dollars. Les expéditions ont diminué de 5 % en raison de la pluie, mais les prix sont restés solides avec une augmentation de 12 % des prix de vente ajustés selon le fret.
Pour l'ensemble de l'année 2024, Vulcan s'attend à :
- Des expéditions d'agrégats en baisse de 4 à 7 %
- Une amélioration du prix ajusté selon le fret de 10 à 12 %
- Un EBITDA ajusté compris entre 2,00 et 2,15 milliards de dollars
Vulcan Materials Company (NYSE: VMC), der größte US-amerikanische Produzent von Bauaggregaten, meldete die Ergebnisse für das zweite Quartal 2024 mit Gewinnwachstum und Margenerweiterung. Die wichtigsten Highlights umfassen:
- Gesamteinnahmen: 2.014 Millionen Dollar
- Nettogewinn: 308 Millionen Dollar
- Bereinigtes EBITDA: 603 Millionen Dollar (29,9% Marge)
- Gewinn pro verwässerter Aktie: 2,33 Dollar
Der Aggregatbereich verzeichnete einen Anstieg des Bruttogewinns um 6% auf 529 Millionen Dollar, wobei der Bruttogewinn pro Tonne um 12% auf 10,92 Dollar stieg. Die Lieferungen sanken um 5% aufgrund von Regen, aber die Preise blieben stark mit einem Anstieg von 12% bei den versandkostenangepassten Verkaufspreisen.
Für das gesamte Jahr 2024 erwartet Vulcan:
- Aggregatlieferungen um 4-7% rückläufig
- Verbesserung des versandkostenangepassten Preises um 10-12%
- Bereinigtes EBITDA zwischen 2,00 und 2,15 Milliarden Dollar
- Aggregates segment gross profit increased 6% to $529 million
- Cash gross profit per ton in Aggregates improved 12% to $10.92
- Freight-adjusted selling prices increased 12% year-over-year
- Adjusted EBITDA margin expanded to 29.9% from 28.2% in Q2 2023
- Full-year guidance projects 10-12% freight-adjusted price improvement
- Total revenues decreased from $2,113 million in Q2 2023 to $2,014 million in Q2 2024
- Aggregates shipments decreased 5% due to significant rainfall
- Net earnings slightly decreased from $309 million in Q2 2023 to $308 million in Q2 2024
- Full-year guidance projects aggregates shipments to be down 4-7%
- Other nonoperating expense increased by $9 million compared to Q2 2023
Insights
Vulcan Materials' Q2 2024 results demonstrate resilience in a challenging environment. Despite a 5% decrease in aggregates shipments due to adverse weather, the company achieved notable improvements:
- Aggregates cash gross profit per ton increased
12% to$10.92 - Gross profit margin expanded 120 basis points
- Freight-adjusted selling prices rose
12%
The company's focus on operational efficiency and pricing strategy is paying off, offsetting volume declines. However, investors should note the
Vulcan's outlook remains cautiously optimistic, with expectations of continued double-digit growth in aggregates cash gross profit per ton for the remainder of 2024. The revised full-year guidance, including a
The construction materials sector faces headwinds, as evidenced by Vulcan's results. The
Vulcan's performance relative to these challenges is noteworthy. The company's ability to expand margins and grow profits per ton in a difficult environment underscores its market leadership and operational excellence. The 160 basis point improvement in return on average capital over the last twelve months is particularly impressive, indicating efficient capital allocation.
Investors should monitor the impact of weather patterns on future quarters, as well as the broader economic indicators affecting construction demand. The company's strategic acquisitions in Alabama and Texas demonstrate a commitment to strengthening its market position in key regions.
Second Quarter Earnings Growth and Margin Expansion Underpinned by Execution in Aggregates
Uniquely Positioned Aggregates Business Supports Full Year Earnings Growth
Financial Highlights Include:
Second Quarter | Year-to-Date | Trailing-Twelve Months | ||||||
Amounts in millions, except per unit data | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||
Total revenues | $ 2,014 | $ 2,113 | $ 3,560 | $ 3,762 | $ 7,580 | $ 7,582 | ||
Gross profit | $ 592 | $ 583 | $ 897 | $ 885 | $ 1,960 | $ 1,728 | ||
Selling, Administrative and General (SAG) | $ 134 | $ 139 | $ 264 | $ 256 | $ 550 | $ 518 | ||
As % of Total revenues | 6.7 % | 6.6 % | 7.4 % | 6.8 % | 7.3 % | 6.8 % | ||
Net earnings attributable to Vulcan | $ 308 | $ 309 | $ 411 | $ 429 | $ 915 | $ 726 | ||
Adjusted EBITDA | $ 603 | $ 595 | $ 927 | $ 933 | $ 2,005 | $ 1,814 | ||
Adjusted EBITDA Margin | 29.9 % | 28.2 % | 26.0 % | 24.8 % | 26.5 % | 23.9 % | ||
Earnings attributable to Vulcan from | $ 2.33 | $ 2.33 | $ 3.11 | $ 3.25 | $ 6.92 | $ 5.49 | ||
Adjusted earnings attributable to Vulcan from | $ 2.35 | $ 2.29 | $ 3.14 | $ 3.25 | $ 6.90 | $ 6.11 | ||
Aggregates segment | ||||||||
Shipments (tons) | 60.1 | 63.4 | 108.3 | 115.2 | 227.6 | 234.9 | ||
Freight-adjusted sales price per ton | $ 21.00 | $ 18.71 | $ 20.82 | $ 18.70 | $ 20.04 | $ 17.78 | ||
Gross profit per ton | $ 8.79 | $ 7.88 | $ 7.68 | $ 6.97 | $ 7.76 | $ 6.68 | ||
Cash gross profit per ton | $ 10.92 | $ 9.76 | $ 10.01 | $ 8.98 | $ 9.96 | $ 8.65 | ||
Tom Hill, Vulcan Materials' Chairman and Chief Executive Officer, said, "Our aggregates-led business delivered another quarter of earnings growth and margin expansion. Even with significant rainfall disrupting construction activity and operating efficiencies, our aggregates cash gross profit per ton increased 12 percent. Gross profit margin expanded 120 basis points. These results demonstrate our consistent execution and the durable characteristics of our business. The construction environment remains supportive of continued aggregates price growth, and our focus remains on compounding aggregates unit profitability to drive earnings growth and strong cash generation."
Second Quarter Segment Results
Aggregates
Second quarter segment gross profit increased 6 percent to
Aggregates shipments decreased 5 percent as compared to the prior year's second quarter as a result of significant rainfall in many key markets, particularly in
Price growth in the second quarter was strong with all markets realizing year-over-year improvement. Freight-adjusted selling prices increased 12 percent (mix-adjusted 11 percent) as compared to the prior year.
Challenging weather conditions also impacted operating efficiencies and contributed to the year-over-year increase in freight-adjusted unit cash cost of sales in the quarter. On a trailing-twelve months basis, unit cash cost has increased 10 percent.
Asphalt and Concrete
Asphalt segment gross profit was
Selling, Administrative and General (SAG) and Other Items
SAG expense was
Other nonoperating expense was
Financial Position, Liquidity and Capital Allocation
The Company remains well positioned for continued growth with a strong liquidity position and balance sheet profile. Disciplined capital allocation has resulted in a 160 basis points improvement in return on average capital over the last twelve months. As of June 30, 2024, the ratio of total debt to trailing-twelve months Adjusted EBITDA was 1.7 times and below the Company's target range of 2.0 to 2.5 times.
Capital expenditures were
Outlook
Regarding the Company's outlook, Mr. Hill said, "Significant weather disruptions throughout the first half of the year impacted both construction activity and operating efficiencies, resulting in adjustments to our aggregates volume and cost outlook for the full year. Despite the challenging environment, aggregates cash gross profit per ton has increased double-digits this year, and we expect this trend to continue for the remainder of the year. The pricing environment remains positive, and overall demand fundamentals continue to underpin long-term growth."
Management expectations for 2024 include the following:
- Continued improvement in Aggregates segment cash gross profit per ton (
in 2023)$9.46 - Total shipments down 4 to 7 percent (234.3 million tons in 2023)
- Freight-adjusted price improvement of 10 to 12 percent (
in 2023)$19.00 - High-single digit increase in freight-adjusted cash cost (freight-adjusted price less segment cash gross profit per ton;
in 2023)$9.54
- Total Asphalt and Concrete segment cash gross profit of approximately
($275 million in 2023; which included approximately 4 million cubic yards from concrete operations divested in late 2023)$320 million - Selling, Administrative and General expenses of
to$550 ($560 million in 2023)$543 million - 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
to$0.95 $1.07 billion - Adjusted EBITDA between
and$2.00 $2.15 billion
Conference Call
Vulcan will host a conference call at 10:00 a.m. CT on August 6, 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 800-343-5172, or 203-518-9856 if outside the U.S. The conference ID is 4644206. 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
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 | Six Months Ended | |||||||||
Consolidated Statements of Earnings | June 30 | June 30 | ||||||||
(Condensed and unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||
Total revenues | ||||||||||
Cost of revenues | (1,422.2) | (1,529.6) | (2,662.9) | (2,876.5) | ||||||
Gross profit | 592.2 | 583.3 | 897.2 | 885.3 | ||||||
Selling, administrative and general expenses | (134.1) | (139.1) | (263.8) | (256.5) | ||||||
Gain on sale of property, plant & equipment | ||||||||||
and businesses | 3.8 | 16.7 | 4.4 | 18.5 | ||||||
Other operating expense, net | (8.3) | (9.8) | (11.3) | (9.0) | ||||||
Operating earnings | 453.6 | 451.1 | 626.5 | 638.3 | ||||||
Other nonoperating income (expense), net | (8.7) | (0.1) | (8.9) | 1.3 | ||||||
Interest expense, net | (40.2) | (46.7) | (79.3) | (95.7) | ||||||
Earnings from continuing operations | ||||||||||
before income taxes | 404.7 | 404.3 | 538.3 | 543.9 | ||||||
Income tax expense | (94.4) | (92.0) | (123.4) | (108.6) | ||||||
Earnings from continuing operations | 310.3 | 312.3 | 414.9 | 435.3 | ||||||
Loss on discontinued operations, net of tax | (2.0) | (3.7) | (3.7) | (5.8) | ||||||
Net earnings | 308.3 | 308.6 | 411.2 | 429.5 | ||||||
Earnings attributable to noncontrolling interest | (0.3) | 0.0 | (0.6) | (0.2) | ||||||
Net earnings attributable to Vulcan | ||||||||||
Basic earnings (loss) per share attributable to Vulcan | ||||||||||
Continuing operations | ||||||||||
Discontinued operations | ( | ( | ( | ( | ||||||
Net earnings | ||||||||||
Diluted earnings (loss) per share attributable to Vulcan | ||||||||||
Continuing operations | ||||||||||
Discontinued operations | ( | ( | ( | ( | ||||||
Net earnings | ||||||||||
Weighted-average common shares outstanding | ||||||||||
Basic | 132.4 | 133.2 | 132.4 | 133.2 | ||||||
Assuming dilution | 133.1 | 133.8 | 133.1 | 133.7 | ||||||
Effective tax rate from continuing operations | 23.3 % | 22.8 % | 22.9 % | 20.0 % | ||||||
Table B | ||||||||
Vulcan Materials Company | ||||||||
and Subsidiary Companies | ||||||||
(in millions) | ||||||||
Consolidated Balance Sheets | June 30 | December 31 | June 30 | |||||
(Condensed and unaudited) | 2024 | 2023 | 2023 | |||||
Assets | ||||||||
Cash and cash equivalents | ||||||||
Restricted cash | 0.6 | 18.1 | 2.2 | |||||
Accounts and notes receivable | ||||||||
Accounts and notes receivable, gross | 1,075.5 | 903.3 | 1,174.6 | |||||
Allowance for credit losses | (14.3) | (13.6) | (14.2) | |||||
Accounts and notes receivable, net | 1,061.2 | 889.7 | 1,160.4 | |||||
Inventories | ||||||||
Finished products | 514.2 | 494.4 | 455.3 | |||||
Raw materials | 58.8 | 51.2 | 69.1 | |||||
Products in process | 8.8 | 6.5 | 7.2 | |||||
Operating supplies and other | 68.5 | 63.5 | 63.0 | |||||
Inventories | 650.3 | 615.6 | 594.6 | |||||
Other current assets | 153.4 | 70.4 | 120.5 | |||||
Total current assets | 1,976.5 | 2,524.9 | 2,043.7 | |||||
Investments and long-term receivables | 31.4 | 31.3 | 31.2 | |||||
Property, plant & equipment | ||||||||
Property, plant & equipment, cost | 12,240.8 | 11,835.5 | 11,561.5 | |||||
Allowances for depreciation, depletion & amortization | (5,825.0) | (5,617.8) | (5,455.7) | |||||
Property, plant & equipment, net | 6,415.8 | 6,217.7 | 6,105.8 | |||||
Operating lease right-of-use assets, net | 511.8 | 511.7 | 558.4 | |||||
Goodwill | 3,536.6 | 3,531.7 | 3,689.5 | |||||
Other intangible assets, net | 1,462.7 | 1,460.7 | 1,653.1 | |||||
Other noncurrent assets | 281.6 | 267.7 | 251.9 | |||||
Total assets | ||||||||
Liabilities | ||||||||
Current maturities of long-term debt | 0.5 | 0.5 | 0.5 | |||||
Short-term debt | 95.0 | 0.0 | 0.0 | |||||
Trade payables and accruals | 326.6 | 390.4 | 402.1 | |||||
Other current liabilities | 374.7 | 406.7 | 390.7 | |||||
Total current liabilities | 796.8 | 797.6 | 793.3 | |||||
Long-term debt | 3,331.7 | 3,877.3 | 3,873.2 | |||||
Deferred income taxes, net | 1,011.5 | 1,028.9 | 1,069.8 | |||||
Deferred revenue | 141.4 | 145.3 | 149.9 | |||||
Noncurrent operating lease liabilities | 507.5 | 507.4 | 537.5 | |||||
Other noncurrent liabilities | 697.1 | 681.3 | 683.5 | |||||
Total liabilities | ||||||||
Equity | ||||||||
Common stock, | 132.1 | 132.1 | 132.9 | |||||
Capital in excess of par value | 2,879.9 | 2,880.1 | 2,845.4 | |||||
Retained earnings | 4,833.9 | 4,615.0 | 4,375.7 | |||||
Accumulated other comprehensive loss | (140.6) | (143.8) | (151.4) | |||||
Total shareholder's equity | 7,705.3 | 7,483.4 | 7,202.6 | |||||
Noncontrolling interest | 25.1 | 24.5 | 23.8 | |||||
Total equity | ||||||||
Total liabilities and equity | ||||||||
Table C | |||||||
Vulcan Materials Company | |||||||
and Subsidiary Companies | |||||||
(in millions) | |||||||
Six Months Ended | |||||||
Consolidated Statements of Cash Flows | June 30 | ||||||
(Condensed and unaudited) | 2024 | 2023 | |||||
Operating Activities | |||||||
Net earnings | |||||||
Adjustments to reconcile net earnings to net cash provided by operating activities | |||||||
Depreciation, depletion, accretion and amortization | 307.7 | 303.3 | |||||
Noncash operating lease expense | 25.7 | 27.3 | |||||
Net gain on sale of property, plant & equipment and businesses | (4.4) | (18.5) | |||||
Contributions to pension plans | (3.4) | (3.8) | |||||
Share-based compensation expense | 24.5 | 24.3 | |||||
Deferred income taxes, net | (18.5) | (4.7) | |||||
Changes in assets and liabilities before initial | |||||||
effects of business acquisitions and dispositions | (375.8) | (256.9) | |||||
Other, net | 7.5 | 7.0 | |||||
Net cash provided by operating activities | |||||||
Investing Activities | |||||||
Purchases of property, plant & equipment | (344.2) | (354.6) | |||||
Proceeds from sale of property, plant & equipment | 3.6 | 20.5 | |||||
Proceeds from sale of businesses | 0.2 | 130.0 | |||||
Payment for businesses acquired, net of acquired cash and adjustments | (193.4) | 0.9 | |||||
Net cash used for investing activities | ( | ( | |||||
Financing Activities | |||||||
Proceeds from short-term debt | 103.0 | 75.0 | |||||
Payment of short-term debt | (8.0) | (175.0) | |||||
Payment of current maturities and long-term debt | (550.4) | (550.4) | |||||
Proceeds from issuance of long-term debt | 0.0 | 550.0 | |||||
Debt issuance and exchange costs | 0.0 | (3.4) | |||||
Payment of finance leases | (7.0) | (11.6) | |||||
Purchases of common stock | (68.8) | (49.9) | |||||
Dividends paid | (122.8) | (114.4) | |||||
Share-based compensation, shares withheld for taxes | (24.3) | (17.8) | |||||
Other, net | 0.0 | (0.1) | |||||
Net cash used for financing activities | ( | ( | |||||
Net increase (decrease) in cash and cash equivalents and restricted cash | (837.6) | 6.7 | |||||
Cash and cash equivalents and restricted cash at beginning of year | 949.2 | 161.5 | |||||
Cash and cash equivalents and restricted cash at end of period | |||||||
Table D | |||||||||||
Segment Financial Data and Unit Shipments | |||||||||||
(in millions, except per unit data) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Total Revenues | |||||||||||
Aggregates 1 | |||||||||||
Asphalt 2 | 351.2 | 337.4 | 537.4 | 507.1 | |||||||
Concrete | 167.3 | 343.5 | 315.5 | 628.7 | |||||||
Segment sales | |||||||||||
Aggregates intersegment sales | (117.6) | (148.8) | (197.7) | (251.4) | |||||||
Total revenues | |||||||||||
Gross Profit | |||||||||||
Aggregates | |||||||||||
Asphalt | 59.0 | 56.6 | 63.7 | 57.4 | |||||||
Concrete | 4.7 | 27.0 | 1.7 | 24.7 | |||||||
Total | |||||||||||
Depreciation, Depletion, Accretion and Amortization | |||||||||||
Aggregates | |||||||||||
Asphalt | 11.0 | 8.9 | 19.8 | 17.8 | |||||||
Concrete | 11.9 | 19.5 | 24.1 | 39.9 | |||||||
Other | 5.9 | 6.9 | 12.3 | 13.6 | |||||||
Total | |||||||||||
Average Unit Sales Price and Unit Shipments | |||||||||||
Aggregates | |||||||||||
Freight-adjusted revenues 3 | |||||||||||
Aggregates - tons | 60.1 | 63.4 | 108.3 | 115.2 | |||||||
Freight-adjusted sales price 4 | |||||||||||
Other Products | |||||||||||
Asphalt Mix - tons | 4.0 | 4.0 | 6.1 | 6.1 | |||||||
Asphalt Mix - sales price 5 | |||||||||||
Ready-mixed concrete - cubic yards | 0.9 | 2.1 | 1.7 | 3.9 | |||||||
Ready-mixed concrete - sales price 5 | |||||||||||
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 | |||||||||||||||
Aggregates Segment Freight-Adjusted Revenues | |||||||||||||||
(in millions, except per ton data) | |||||||||||||||
Three Months Ended | Six Months Ended | Trailing Twelve Months Ended | |||||||||||||
June 30 | June 30 | June 30 | |||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||
Aggregates segment | |||||||||||||||
Segment sales | |||||||||||||||
Freight & delivery revenues 1 | (324.5) | (364.8) | (602.0) | (674.5) | (1,277.7) | (1,357.4) | |||||||||
Other revenues | (26.4) | (29.1) | (48.9) | (47.9) | (108.3) | (98.9) | |||||||||
Freight-adjusted revenues | |||||||||||||||
Unit shipments - tons | 60.1 | 63.4 | 108.3 | 115.2 | 227.6 | 234.9 | |||||||||
Freight-adjusted sales price | |||||||||||||||
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 | |||||||||||||||
Cash Gross Profit | |||||||||||||||
(in millions, except per ton data) | |||||||||||||||
Three Months Ended | Six Months Ended | Trailing Twelve Months Ended | |||||||||||||
June 30 | June 30 | June 30 | |||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||
Aggregates segment | |||||||||||||||
Gross profit | |||||||||||||||
Depreciation, depletion, accretion and amortization | 128.0 | 119.6 | 251.5 | 232.0 | 501.9 | 462.3 | |||||||||
Cash gross profit | |||||||||||||||
Unit shipments - tons | 60.1 | 63.4 | 108.3 | 115.2 | 227.6 | 234.9 | |||||||||
Gross profit per ton | |||||||||||||||
Freight-adjusted sales price | |||||||||||||||
Cash gross profit per ton | 10.92 | 9.76 | 10.01 | 8.98 | 9.96 | 8.65 | |||||||||
Freight-adjusted cash cost of sales per ton | |||||||||||||||
Asphalt segment | |||||||||||||||
Gross profit | |||||||||||||||
Depreciation, depletion, accretion and amortization | 11.0 | 8.9 | 19.8 | 17.8 | 37.5 | 35.9 | |||||||||
Cash gross profit | |||||||||||||||
Concrete segment | |||||||||||||||
Gross profit | |||||||||||||||
Depreciation, depletion, accretion and amortization | 11.9 | 19.5 | 24.1 | 39.9 | 57.1 | 81.2 | |||||||||
Cash gross profit | |||||||||||||||
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 | ||||||||||||||||
(in millions) | ||||||||||||||||
Three Months Ended | Six Months Ended | Trailing Twelve Months Ended | ||||||||||||||
June 30 | June 30 | June 30 | ||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net earnings attributable to Vulcan | ||||||||||||||||
Income tax expense, including discontinued operations | 93.7 | 90.8 | 122.1 | 106.6 | 311.1 | 215.8 | ||||||||||
Interest expense, net | 40.2 | 46.7 | 79.3 | 95.7 | 163.3 | 189.3 | ||||||||||
Depreciation, depletion, accretion and amortization | 156.8 | 154.9 | 307.7 | 303.3 | 621.3 | 606.8 | ||||||||||
EBITDA | ||||||||||||||||
Loss on discontinued operations | ||||||||||||||||
Gain on sale of real estate and businesses, net | 0.0 | (15.2) | 0.0 | (15.2) | (51.9) | (21.3) | ||||||||||
Charges associated with divested operations | 1.0 | 4.3 | 1.0 | 4.7 | 4.2 | 7.8 | ||||||||||
Acquisition related charges 1 | 0.8 | 0.3 | 0.9 | 0.8 | 2.3 | 9.5 | ||||||||||
Loss on impairments | 0.0 | 0.0 | 0.0 | 0.0 | 28.3 | 67.8 | ||||||||||
Adjusted EBITDA | ||||||||||||||||
1 Represents charges associated with acquisitions requiring clearance under federal antitrust laws. | ||||||||||||||||
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: | ||||||||||||||||
Adjusted Diluted EPS attributable to Vulcan from Continuing Operations (Adjusted Diluted EPS) | ||||||||||||||||
Three Months Ended | Six Months Ended | Trailing Twelve Months Ended | ||||||||||||||
June 30 | June 30 | June 30 | ||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net earnings attributable to Vulcan | ||||||||||||||||
Items included in Adjusted EBITDA above, net of tax | 0.03 | (0.04) | 0.04 | (0.01) | (0.03) | 0.52 | ||||||||||
NOL carryforward valuation allowance | 0.01 | 0.02 | 0.02 | 0.05 | 0.07 | 0.16 | ||||||||||
Adjusted diluted EPS attributable to Vulcan from | ||||||||||||||||
continuing operations | ||||||||||||||||
Projected Adjusted 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: | ||||||||||||||||
2024 Projected Adjusted EBITDA | ||||||||||||||||
(in millions) | ||||||||||||||||
Mid-point | ||||||||||||||||
Net earnings attributable to Vulcan | ||||||||||||||||
Income tax expense, including discontinued operations | 293 | |||||||||||||||
Interest expense, net of interest income | 155 | |||||||||||||||
Depreciation, depletion, accretion and amortization | 610 | |||||||||||||||
Projected EBITDA | ||||||||||||||||
Items included in Adjusted EBITDA above | 7 | |||||||||||||||
Projected Adjusted EBITDA | ||||||||||||||||
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 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. | ||||||||||||||||
Appendix 3 | |||||||||||||||
Reconciliation of Non-GAAP Measures (Continued) | |||||||||||||||
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 millions) | |||||||||||||||
June 30 | |||||||||||||||
2024 | 2023 | ||||||||||||||
Debt | |||||||||||||||
Current maturities of long-term debt | |||||||||||||||
Short-term debt | 95.0 | 0.0 | |||||||||||||
Long-term debt | 3,331.7 | 3,873.2 | |||||||||||||
Total debt | |||||||||||||||
Cash and cash equivalents and restricted cash | (111.6) | (168.2) | |||||||||||||
Net debt | |||||||||||||||
Trailing-Twelve Months (TTM) Adjusted EBITDA | |||||||||||||||
Total debt to TTM Adjusted EBITDA | 1.7x | 2.1x | |||||||||||||
Net debt to TTM Adjusted EBITDA | 1.7x | 2.0x | |||||||||||||
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 | |||||||||||||||
June 30 | June 30 | ||||||||||||||
2024 | 2023 | ||||||||||||||
Adjusted EBITDA | |||||||||||||||
Average invested capital | |||||||||||||||
Property, plant & equipment, net | |||||||||||||||
Goodwill | 3,564.3 | 3,703.1 | |||||||||||||
Other intangible assets | 1,498.8 | 1,703.7 | |||||||||||||
Fixed and intangible assets | |||||||||||||||
Current assets | |||||||||||||||
Cash and cash equivalents | (374.8) | (148.1) | |||||||||||||
Current tax | (38.2) | (52.6) | |||||||||||||
Adjusted current assets | 1,817.8 | 1,793.8 | |||||||||||||
Current liabilities | (789.6) | (980.0) | |||||||||||||
Current maturities of long-term debt | 0.5 | 0.5 | |||||||||||||
Short-term debt | 19.0 | 117.6 | |||||||||||||
Adjusted current liabilities | (770.1) | (861.9) | |||||||||||||
Adjusted net working capital | |||||||||||||||
Average invested capital | |||||||||||||||
Return on invested capital | 16.3 % | 14.7 % | |||||||||||||
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SOURCE Vulcan Materials Company
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