Exhibit 99.1 |
VULCAN EARNINGS INCREASE 55 PERCENT IN THE FOURTH QUARTER |
Birmingham, Alabama - February 2, 2004 - Vulcan Materials Company (NYSE:VMC) today announced fourth quarter net earnings of $0.56 per diluted share, as compared with $0.36 per diluted share in the fourth quarter of 2002. Earnings from continuing operations were $61.0 million, or $0.59 per diluted share, an increase of $0.22 per share from the prior year as operating results in both Construction Materials and Chemicals improved significantly. Net sales of $657.6 million were 13 percent higher than 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 | Twelve Months Ended | ||
2003 | 2002 | 2003 | 2002 | |
Net sales | $657,564 | $581,286 | $2,618,823 | $2,405,444 |
Delivery revenues | 71,171 | 58,835 | 273,363 | 242,607 |
Total revenues | 728,735 | 640,121 | 2,892,186 | 2,648,051 |
Cost of goods sold | 500,193 | 470,872 | 2,035,349 | 1,888,973 |
Delivery costs | 71,171 | 58,835 | 273,363 | 242,607 |
Cost of revenues | 571,364 | 529,707 | 2,308,712 | 2,131,580 |
Gross profit | 157,371 | 110,414 | 583,474 | 516,471 |
Selling, administrative and general expenses | 55,698 | 49,044 | 217,096 | 196,921 |
Impairment of long-lived assets | 12,909 | 326 | 15,709 | 4,276 |
Gain on sale of property, plant & equipment, net | 20,769 | 3,552 | 27,900 | 9,212 |
Other operating costs | 13,937 | 6,082 | 25,453 | 13,152 |
Minority interest in (earnings) losses | (849) | 1,374 | 671 | 2,486 |
Other income, net | 5,497 | 2,000 | 7,230 | 5,634 |
Earnings from continuing operations before |
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Interest income | 1,480 | 855 | 4,528 | 3,473 |
Interest expense | 13,230 | 14,206 | 54,120 | 54,841 |
Earnings from continuing operations before |
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Provision for income taxes | 27,557 | 11,051 | 87,971 | 71,427 |
Earnings from continuing operations before |
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Loss on discontinued operations | (3,609) | (885) | (9,691) | (6,246) |
Cumulative effect of accounting changes | - | - | (18,811) | (20,537) |
Net earnings | $57,328 | $36,601 | $194,952 | $169,876 |
Basic net earnings per share: | ||||
Earnings from continuing operations before |
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Discontinued operations | (0.04) | (0.01) | (0.09) | (0.06) |
Cumulative effect of accounting changes | - | - | (0.19) | (0.20) |
Net earnings per share | $0.56 | $0.36 | $1.91 | $1.67 |
Diluted net earnings per share: | ||||
Earnings from continuing operations before |
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Discontinued operations | (0.03) | (0.01) | (0.10) | (0.06) |
Cumulative effect of accounting changes | - | - | (0.18) | (0.20) |
Net earnings per share | $0.56 | $0.36 | $1.90 | $1.66 |
Weighted-average common shares outstanding: | ||||
Basic | 101,956 | 101,764 | 101,849 | 101,709 |
Assuming dilution | 103,080 | 102,408 | 102,710 | 102,515 |
Cash dividends per share of common stock | $0.245 | $0.235 | $0.980 | $0.940 |
Depreciation, depletion, accretion and amortization |
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Effective tax rate | 31.1% | 22.8% | 28.2% | 26.6% |
See accompanying Notes to Condensed Consolidated Financial Statements |
TABLE B | ||||
Vulcan Materials Company and Subsidiary Companies | ||||
(Amounts in thousands) | ||||
| Three Months Ended | Twelve Months Ended | ||
2003 | 2002 | 2003 | 2002 | |
Net Sales | ||||
Construction Materials | $521,995 | $467,306 | $2,086,944 | $1,980,576 |
Chemicals | 135,569 | 113,980 | 531,879 | 424,868 |
Total | $657,564 | $581,286 | $2,618,823 | $2,405,444 |
Total Revenues | ||||
Construction Materials | $579,913 | $514,445 | $2,309,642 | $2,175,845 |
Chemicals | 148,822 | 125,676 | 582,544 | 472,206 |
Total | $728,735 | $640,121 | $2,892,186 | $2,648,051 |
Earnings from Continuing Operations Before | ||||
Construction Materials | $106,393 | $77,577 | $388,654 | $383,237 |
Chemicals | (6,149) | (15,689) | (27,637) | (63,783) |
Segment* earnings | $100,244 | $61,888 | $361,017 | $319,454 |
Depreciation, Depletion, Accretion and | ||||
Construction Materials | $55,112 | $53,673 | $215,693 | $204,743 |
Chemicals | 13,853 | 13,143 | 52,197 | 52,461 |
Total | $68,965 | $66,816 | $267,890 | $257,204 |
* After allocation of corporate expenses and income, other than interest, 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) | |||
| December 31 | December 31 | |
Assets | |||
Cash and cash equivalents | $416,689 | $170,728 | |
Medium-term investments | 4,974 | - | |
Accounts and notes receivable: | |||
Accounts and notes receivable, gross | 368,671 | 341,057 | |
Less: Allowance for doubtful accounts | (8,718) | (8,931) | |
Accounts and notes receivable, net | 359,953 | 332,126 | |
Inventories: | |||
Finished products | 174,778 | 189,378 | |
Raw materials | 7,483 | 10,191 | |
Products in process | 476 | 486 | |
Operating supplies and other | 36,639 | 39,531 | |
Inventories | 219,376 | 239,586 | |
Deferred income taxes | 34,358 | 37,698 | |
Prepaid expenses | 14,892 | 9,550 | |
Total current assets | 1,050,242 | 789,688 | |
Investments and long-term receivables | 21,111 | 15,964 | |
Property, plant and equipment: | |||
Property, plant and equipment, cost | 4,115,646 | 4,098,543 | |
Less: Reserve for depr., depl., and amort. | (2,222,998) | (2,122,490) | |
Property, plant and equipment, net | 1,892,648 | 1,976,053 | |
Goodwill | 579,817 | 575,791 | |
Deferred charges and other assets | 93,042 | 90,725 | |
Total | $3,636,860 | $3,448,221 | |
Liabilities and Shareholders' Equity | |||
Current maturities of long-term debt | $249,721 | $41,641 | |
Notes payable | 29,000 | 37,298 | |
Trade payables and accruals | 129,361 | 122,053 | |
Other current liabilities | 134,870 | 96,717 | |
Total current liabilities | 542,952 | 297,709 | |
Long-term debt | 607,654 | 857,757 | |
Deferred income taxes | 338,913 | 345,181 | |
Other noncurrent liabilities | 252,518 | 157,930 | |
Minority interest | 91,987 | 92,658 | |
Shareholders' equity | 1,802,836 | 1,696,986 | |
Total | $3,636,860 | $3,448,221 | |
Current ratio | 1.9 | 2.7 | |
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 | $194,952 | $169,876 | |
Adjustments to reconcile net earnings to | |||
Depreciation, depletion, accretion and amortization | 277,091 | 267,676 | |
Cumulative effect of accounting changes | 18,811 | 20,537 | |
(Increase) decrease in assets before effects of business acquisitions | (36,080) | 18,504 | |
Increase (decrease) in liabilities before effects of business acquisitions | 77,798 | (28,038) | |
Other, net | (13,657) | 12,947 | |
Net cash provided by operating activities | 518,915 | 461,502 | |
Investing Activities | |||
Purchases of property, plant and equipment | (193,923) | (248,778) | |
Payment for businesses acquired, net of acquired cash | (3,543) | (43,445) | |
Increase in medium-term investments | (4,974) | - | |
Proceeds from sale of property, plant & equipment | 81,700 | 25,888 | |
Net cash used for investing activities | (120,740) | (266,335) | |
Financing Activities | |||
Net payments - commercial paper and bank lines of credit | (8,298) | (6,582) | |
Payment of short-term debt | (41,593) | (17,264) | |
Payment of long-term debt | (245) | (7,427) | |
Dividends paid | (99,580) | (95,384) | |
Other, net | (2,498) | 1,416 | |
Net cash used for financing activities | (152,214) | (125,241) | |
Net increase in cash and cash equivalents | 245,961 | 69,926 | |
Cash and cash equivalents at beginning of period | 170,728 | 100,802 | |
Cash and cash equivalents at end of year | $416,689 | $170,728 | |
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 | $54,409 | $55,465 | |
Income taxes | 47,890 | 39,177 | |
Supplemental Schedule Of Noncash Investing and Financing Activities | |||
Liabilities and long-term debt assumed in business acquisitions | - | 1,573 |