October 27, 2003 |
VULCAN EARNINGS INCREASE OVER 20 PERCENT |
Birmingham, Alabama - October 27, 2003 - Vulcan Materials Company (NYSE:VMC) today announced net sales of $748 million and earnings of $0.91 per diluted share from continuing operations. In the third quarter of 2002, sales and earnings from continuing operations were $680 million and $0.75 per diluted share. Including discontinued operations, the Company reported record net earnings of $0.96 per diluted share as compared with $0.75 per diluted share 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 | Nine Months Ended | ||
2003 | 2002 | 2003 | 2002 | |
Net sales | $747,584 | $679,837 | $1,961,259 | $1,824,158 |
Delivery revenues | 82,321 | 69,052 | 202,192 | 183,772 |
Total revenues | 829,905 | 748,889 | 2,163,451 | 2,007,930 |
Cost of goods sold | 550,902 | 516,046 | 1,537,315 | 1,422,913 |
Delivery costs | 82,321 | 69,052 | 202,192 | 183,772 |
Cost of revenues | 633,223 | 585,098 | 1,739,507 | 1,606,685 |
Gross profit | 196,682 | 163,791 | 423,944 | 401,245 |
Selling, administrative and general expenses | 56,777 | 49,304 | 161,398 | 147,877 |
Other operating costs | 3,448 | 3,500 | 12,146 | 6,208 |
Minority interest in (earnings) losses | (1,476) | (498) | 1,520 | 1,111 |
Other income, net | 2,784 | 5,653 | 8,853 | 9,295 |
Earnings from continuing operations before |
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Interest income | 1,125 | 873 | 3,047 | 2,616 |
Interest expense | 13,760 | 13,946 | 40,890 | 40,634 |
Earnings from continuing operations before |
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Provision for income taxes | 31,074 | 25,782 | 60,414 | 60,376 |
Earnings from continuing operations before |
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Earnings (loss) on discontinued operations | 5,093 | (468) | (6,081) | (5,360) |
Cumulative effect of accounting changes | - | - | (18,811) | (20,537) |
Net earnings | $99,149 | $76,819 | $137,624 | $133,275 |
Basic net earnings per share: | ||||
Earnings from continuing operations before |
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Discontinued operations | 0.05 | (0.01) | (0.06) | (0.06) |
Cumulative effect of accounting changes | - | - | (0.19) | (0.20) |
Net earnings per share | $0.97 | $0.75 | $1.35 | $1.31 |
Diluted net earnings per share: | ||||
Earnings from continuing operations before |
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Discontinued operations | 0.05 | - | (0.06) | (0.05) |
Cumulative effect of accounting changes | - | - | (0.18) | (0.20) |
Net earnings per share | $0.96 | $0.75 | $1.34 | $1.30 |
Weighted-average common shares outstanding: | ||||
Basic | 101,859 | 101,749 | 101,812 | 101,690 |
Assuming dilution | 102,805 | 102,482 | 102,583 | 102,573 |
Cash dividends per share of common stock | $0.245 | $0.235 | $0.735 | $0.705 |
Depreciation, depletion, accretion and |
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Effective tax rate | 24.8% | 25.0% | 27.1% | 27.5% |
See accompanying Notes to Condensed Consolidated Financial Statements |
TABLE B | ||||
Vulcan Materials Company and Subsidiary Companies | ||||
(Amounts in thousands) | ||||
| Three Months Ended | Nine Months Ended | ||
2003 | 2002 | 2003 | 2002 | |
Net Sales | ||||
Construction Materials | $616,280 | $566,701 | $1,564,949 | $1,513,271 |
Chemicals | 131,304 | 113,136 | 396,310 | 310,887 |
Total | $747,584 | $679,837 | $1,961,259 | $1,824,158 |
Total Revenues | ||||
Construction Materials | $685,534 | $623,489 | $ 1,729,729 | $ 1,661,400 |
Chemicals | 144,371 | 125,400 | 433,722 | 346,530 |
Total | $829,905 | $748,889 | $ 2,163,451 | $ 2,007,930 |
Earnings from Continuing Operations Before | ||||
Construction Materials | $144,093 | $131,789 | $ 282,261 | $ 305,661 |
Chemicals | (6,328) | (15,647) | (21,488) | (48,095) |
Segment* earnings | $137,765 | $116,142 | $ 260,773 | $ 257,566 |
Depreciation, Depletion, Accretion and | ||||
Construction Materials | $54,338 | $52,644 | $160,582 | $151,069 |
Chemicals | 12,578 | 13,820 | 38,343 | 39,320 |
Total | $66,916 | $66,464 | $198,925 | $190,389 |
* 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) | |||
| September 30 | December 31 | September 30 |
Assets | |||
Cash and cash equivalents | $330,205 | $170,728 | $82,752 |
Short-term investments | 4,972 | - | - |
Accounts and notes receivable: | |||
Accounts and notes receivable, gross | 446,668 | 341,057 | 406,372 |
Less: Allowance for doubtful accounts | (10,124) | (8,931) | (9,903) |
Accounts and notes receivable, net | 436,544 | 332,126 | 396,469 |
Inventories: | |||
Finished products | 162,080 | 189,378 | 186,936 |
Raw materials | 8,206 | 10,191 | 12,692 |
Products in process | 271 | 486 | 525 |
Operating supplies & other | 39,768 | 39,531 | 36,931 |
Inventories | 210,325 | 239,586 | 237,084 |
Deferred income taxes | 36,009 | 37,698 | 43,158 |
Prepaid expenses | 19,429 | 9,550 | 12,306 |
Total current assets | 1,037,484 | 789,688 | 771,769 |
Investments and long-term receivables | 20,965 | 15,964 | 16,222 |
Property, plant and equipment: | |||
Property, plant and equipment, cost | 4,149,684 | 4,098,543 | 4,095,607 |
Less: Reserve for depr., depl., and amort. | (2,216,337) | (2,122,490) | (2,088,186) |
Property, plant and equipment, net | 1,933,347 | 1,976,053 | 2,007,421 |
Goodwill | 579,180 | 575,791 | 564,536 |
Deferred charges and other assets | 88,624 | 90,725 | 100,913 |
Total | $3,659,600 | $3,448,221 | $3,460,861 |
Liabilities and Shareholders' Equity | |||
Current maturities of LTD | $284,783 | $41,641 | $6,271 |
Notes payable | 30,500 | 37,298 | 37,378 |
Trade payables and accruals | 138,307 | 122,053 | 141,254 |
Other current liabilities | 132,197 | 96,717 | 120,631 |
Total current liabilities | 585,787 | 297,709 | 305,534 |
Long-term debt | 608,188 | 857,757 | 892,749 |
Deferred income taxes | 361,312 | 345,181 | 332,507 |
Other noncurrent liabilities | 248,002 | 157,930 | 154,588 |
Minority interest | 91,138 | 92,658 | 94,032 |
Shareholders' equity | 1,765,173 | 1,696,986 | 1,681,451 |
Total | $3,659,600 | $3,448,221 | $3,460,861 |
Current ratio | 1.8 | 2.7 | 2.5 |
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 | $137,624 | $133,275 | |
Adjustments to reconcile net earnings to | |||
Depreciation, depletion, accretion and amortization | 208,097 | 198,230 | |
Cumulative effect of accounting changes | 18,811 | 20,537 | |
Increase in assets before effects of business acquisitions | (107,641) | (56,641) | |
Increase in liabilities before effects of business acquisitions | 106,190 | 6,954 | |
Other, net | (12,927) | 11,274 | |
Net cash provided by operating activities | 350,154 | 313,629 | |
Investing Activities | |||
Purchases of property, plant and equipment | (141,243) | (204,357) | |
Pmt. for businesses acquired, net of acquired cash | (2,493) | (42,138) | |
Increase in short-term investments | (4,972) | - | |
Proceeds from sale of property, plant & equipment | 48,387 | 18,014 | |
Net cash used for investing activities | (100,321) | (228,481) | |
Financing Activities | |||
Net payments - commercial paper and bank lines of credit | (6,798) | (6,501) | |
Payment of short-term debt | (6,391) | (17,017) | |
Payment of long-term debt | (197) | (7,000) | |
Dividends paid | (74,658) | (71,526) | |
Other, net | (2,312) | (1,154) | |
Net cash used for financing activities | (90,356) | (103,198) | |
Net increase (decrease) in cash and cash equivalents | 159,477 | (18,050) | |
Cash and cash equivalents at beginning of period | 170,728 | 100,802 | |
Cash and cash equivalents at end of period | $330,205 | $82,752 | |
See accompanying Notes to Condensed Consolidated Financial Statements |
TABLE E | |||
Notes to Condensed Consolidated Financial Statements | |||
2003 | 2002 | ||
Supplemental Disclosure Of Cash Flow Information | |||
Cash paid during the period for: | |||
Interest, net of amount capitalized | $34,896 | $35,006 | |
Income taxes | 11,934 | 37,134 |