July 28, 2003 |
VULCAN ANNOUNCES SECOND QUARTER RESULTS |
Birmingham, Alabama -- July 28, 2003 -- Vulcan Materials Company (NYSE:VMC) today announced second quarter net sales of $695 million and earnings of 65 cents per diluted share from continuing operations. On a comparable basis, last year's second quarter sales and earnings were $645 million and 66 cents per diluted share. Including discontinued operations, the Company recorded net earnings of 55 cents per diluted share in the quarter as compared to 64 cents in the prior year. |
TABLE A | ||||
Vulcan Materials Company and Subsidiary Companies | ||||
(Amounts in thousands, except per share data) | ||||
Consolidated Statements of Earnings | Three Months Ended | Six Months Ended | ||
2003 | 2002 | 2003 | 2002 | |
Net sales | $694,787 | $644,831 | $1,213,675 | $1,144,321 |
Delivery revenues | 72,028 | 64,055 | 119,871 | 114,721 |
Total revenues | 766,815 | 708,886 | 1,333,546 | 1,259,042 |
Cost of goods sold | 536,720 | 490,792 | 986,413 | 906,867 |
Delivery costs | 72,028 | 64,055 | 119,871 | 114,721 |
Cost of revenues | 608,748 | 554,847 | 1,106,284 | 1,021,588 |
Gross profit | 158,067 | 154,039 | 227,262 | 237,454 |
Selling, administrative and general expense | 53,965 | 49,481 | 104,620 | 98,573 |
Other operating costs | 2,920 | 1,588 | 8,698 | 2,708 |
Minority interest in losses | 2,852 | 3,020 | 2,996 | 1,609 |
Other income, net | 3,413 | 2,621 | 6,068 | 3,643 |
Earnings from continuing operations before |
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|
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Interest income | 924 | 763 | 1,922 | 1,742 |
Interest expense | 13,643 | 13,624 | 27,129 | 26,688 |
Earnings from continuing operations before |
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|
Provision for income taxes | 28,410 | 28,334 | 29,340 | 34,594 |
Earnings from continuing operations before |
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|
Loss on discontinued operations | (10,294) | (2,047) | (11,175) | (4,892) |
Cumulative effect of accounting changes | - | - | (18,811) | (20,537) |
Net earnings | $56,024 | $65,369 | $38,475 | $56,456 |
Basic net earnings per share: | ||||
Net earnings from continuing operations before |
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Discontinued operations | (0.10) | (0.02) | (0.11) | (0.05) |
Cumulative effect of accounting changes | - | - | (0.18) | (0.20) |
Net earnings per share | $0.55 | $0.64 | $0.38 | $0.56 |
Diluted net earnings per share: | ||||
Net earnings from continuing operations before |
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|
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Discontinued operations | (0.10) | (0.02) | (0.11) | (0.05) |
Cumulative effect of accounting changes | - | - | (0.18) | (0.20) |
Net earnings per share | $0.55 | $0.64 | $0.38 | $0.55 |
Weighted-average common shares outstanding: | ||||
Basic | 101,798 | 101,706 | 101,789 | 101,660 |
Assuming dilution | 102,571 | 102,747 | 102,468 | 102,695 |
Cash dividends per share of common stock | $0.245 | $0.235 | $0.490 | $0.470 |
Depreciation, depletion, accretion and |
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Effective tax rate | 30.0% | 29.6% | 30.0% | 29.7% |
See accompanying Notes to Condensed Consolidated Financial Statements |
TABLE B | ||||
Vulcan Materials Company and Subsidiary Companies | ||||
(Amounts in thousands) | ||||
| Three Months Ended | Six Months Ended | ||
2003 | 2002 | 2003 | 2002 | |
Net Sales | ||||
Construction Materials | $556,632 | $546,006 | $948,668 | $946,570 |
Chemicals | 138,155 | 98,825 | 265,007 | 197,751 |
Total | $694,787 | $644,831 | $1,213,675 | $1,144,321 |
Total Revenues | ||||
Construction Materials | $615,760 | $598,654 | $1,044,195 | $1,037,911 |
Chemicals | 151,055 | 110,232 | 289,351 | 221,131 |
Total | $766,815 | $708,886 | $1,333,546 | $1,259,042 |
Earnings from Continuing Operations Before | ||||
Construction Materials | $119,018 | $130,291 | $138,167 | $173,872 |
Chemicals | (11,571) | (21,680) | (15,159) | (32,447) |
Segment* earnings | $107,447 | $108,611 | $123,008 | $141,425 |
Depreciation, Depletion, Accretion and | ||||
Construction Materials | $54,047 | $50,213 | $106,244 | $98,424 |
Chemicals | 12,902 | 13,192 | 25,765 | 25,500 |
Total | $66,949 | $63,405 | $132,009 | $123,924 |
*After allocation of corporate expenses and income, other than interest, and after assignment of equity income to the segments with which it is related in terms of products and services. Allocations are based on average capital employed and net sales. | ||||
See accompanying Notes to Condensed Consolidated Financial Statements |
TABLE C | |||
Vulcan Materials Company and Subsidiary Companies | |||
(Amounts in thousands) | |||
| June 30 | December 31 | June 30 |
Assets | |||
Cash and cash equivalents | $183,631 | $170,728 | $56,652 |
Accounts and notes receivable: | |||
Accounts and notes receivable, gross | 436,043 | 341,057 | 407,952 |
Less: Allowance for doubtful accounts | (9,104) | (8,931) | (8,970) |
Accounts and notes receivable, net | 426,939 | 332,126 | 398,982 |
Inventories: | |||
Finished products | 183,331 | 189,378 | 193,049 |
Raw materials | 11,310 | 10,191 | 11,852 |
Products in process | 532 | 486 | 583 |
Operating supplies & other | 36,017 | 39,531 | 37,867 |
Inventories | 231,190 | 239,586 | 243,351 |
Deferred income taxes | 36,069 | 37,698 | 47,040 |
Prepaid expenses | 15,253 | 9,550 | 11,238 |
Total current assets | 893,082 | 789,688 | 757,263 |
Investment and long-term receivables | 21,257 | 15,964 | 16,193 |
Property, plant and equipment: | |||
Property, plant and equipment, cost | 4,175,632 | 4,098,543 | 4,056,258 |
Less: Reserve for depr., depl., and amort. | (2,203,506) | (2,122,490) | (2,044,155) |
Property, plant and equipment, net | 1,972,126 | 1,976,053 | 2,012,103 |
Goodwill | 578,473 | 575,791 | 561,700 |
Deferred charges and other assets | 85,148 | 90,725 | 90,036 |
Total | $3,550,086 | $3,448,221 | $3,437,295 |
Liabilities and Shareholders' Equity | |||
Current maturities of LTD | $284,082 | $41,641 | $8,390 |
Notes payable | 33,148 | 37,298 | 38,659 |
Trade payables and accruals | 148,415 | 122,053 | 167,289 |
Other current liabilities | 103,841 | 96,717 | 119,652 |
Total current liabilities | 569,486 | 297,709 | 333,990 |
Long-term debt | 613,980 | 857,757 | 898,293 |
Deferred income taxes | 353,376 | 345,181 | 331,065 |
Other noncurrent liabilities | 234,008 | 157,930 | 154,289 |
Minority interest | 89,662 | 92,658 | 93,534 |
Shareholders' equity | 1,689,574 | 1,696,986 | 1,626,124 |
Total | $3,550,086 | $3,448,221 | $3,437,295 |
Current ratio | 1.6 | 2.7 | 2.3 |
See accompanying Notes to Condensed Consolidated Financial Statements |
TABLE D | |||
Vulcan Materials Company and Subsidiary Companies | |||
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Consolidated Statements of Cash Flows (Condensed and unaudited) | 2003 | 2002 | |
Operating Activities | |||
Net earnings | $38,475 | $56,456 | |
Adjustments to reconcile net earnings to net | |||
Depreciation, depletion, accretion and amortization | 137,074 | 129,248 | |
Cumulative effect of accounting changes | 18,811 | 20,537 | |
Increase in assets before effects of business acquisitions | (108,006) | (69,770) | |
Increase in liabilities before effects of business acquisitions | 65,262 | 29,017 | |
Other, net | 12,261 | 6,413 | |
Net cash provided by operating activities | 163,877 | 171,901 | |
Investing Activities | |||
Purchases of property, plant and equipment | (102,666) | (134,381) | |
Payment for businesses acquired, net of acquired cash | (2,493) | (23,610) | |
Proceeds from sale of property, plant & equipment | 12,062 | 12,135 | |
Net cash used for investing activities | (93,097) | (145,856) | |
Financing Activities | |||
Net payments - commercial paper and bank lines of credit | (4,149) | (5,219) | |
Payment of short-term debt | (1,015) | (9,536) | |
Payment of long-term debt | - | (7,000) | |
Dividends paid | (49,758) | (47,671) | |
Other, net | (2,955) | (769) | |
Net cash used for financing activities | (57,877) | (70,195) | |
Net increase (decrease) in cash and cash equivalents | 12,903 | (44,150) | |
Cash and cash equivalents at beginning of period | 170,728 | 100,802 | |
Cash and cash equivalents at end of period | $183,631 | $56,652 | |
See accompanying Notes to Condensed Consolidated Financial Statements |
TABLE E | |||
Notes to Condensed Consolidated Financial Statements | |||
Supplemental information referable to the Condensed Consolidated Statements of Cash Flows for the six months ended June 30 is summarized below (amounts in thousands): | |||
2003 | 2002 | ||
Supplemental Disclosure Of Cash Flow Information | |||
Cash paid (refunded) during the period for: | |||
Interest, net of amount capitalized | $27,220 | $27,200 | |
Income taxes | (2,641) | 6,585 |