Exhibit 99.1 |
VULCAN ANNOUNCES RECORD THIRD QUARTER |
Birmingham, Alabama -- October 27, 2004 -- Vulcan Materials Company (NYSE:VMC) today announced record third quarter net sales of $804 million and earnings from continuing operations of $0.96 per diluted share, a 5 percent increase from last year's $0.91 per diluted share. These results include the Company's Chemicals business. Net earnings of $99 million, or $0.96 per diluted share, approximated the prior year's results. |
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 | ||
2004 | 2003 | 2004 | 2003 | |
Net sales | $803,885 | $747,584 | $2,103,855 | $1,961,259 |
Delivery revenues | 87,307 | 82,321 | 221,120 | 202,192 |
Total revenues | 891,192 | 829,905 | 2,324,975 | 2,163,451 |
Cost of goods sold | 583,762 | 550,525 | 1,619,932 | 1,535,156 |
Delivery costs | 87,307 | 82,321 | 221,120 | 202,192 |
Cost of revenues | 671,069 | 632,846 | 1,841,052 | 1,737,348 |
Gross profit | 220,123 | 197,059 | 483,923 | 426,103 |
Selling, administrative and general expenses | 60,374 | 56,777 | 171,961 | 161,398 |
Other operating expense (income) net | 616 | 2,030 | (2,507) | 7,186 |
Minority interest in (earnings) losses | (2,006) | (1,476) | (3,290) | 1,520 |
Other income, net | 2,476 | 979 | 8,444 | 1,724 |
Earnings from continuing operations before |
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|
|
|
Interest income | 1,351 | 1,125 | 4,350 | 3,047 |
Interest expense | 9,055 | 13,750 | 31,369 | 40,880 |
Earnings from continuing operations before |
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|
|
|
Provision for income taxes | 52,778 | 31,074 | 89,856 | 60,414 |
Earnings from continuing operations before |
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|
|
|
(Loss) gain on discontinued operations | (159) | 5,093 | (995) | (6,081) |
Cumulative effect of accounting change | - | - | - | (18,811) |
Net earnings | $98,962 | $99,149 | $201,753 | $137,624 |
Basic earnings per share: | ||||
Earnings from continuing operations before |
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|
|
|
Discontinued operations | - | 0.05 | (0.01) | (0.06) |
Cumulative effect of accounting change | - | - | - | (0.19) |
Net earnings per share | $0.97 | $0.97 | $1.97 | $1.35 |
Diluted earnings per share: | ||||
Earnings from continuing operations before |
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|
|
|
Discontinued operations | - | 0.05 | (0.01) | (0.06) |
Cumulative effect of accounting change | - | - | - | (0.18) |
Net earnings per share | $0.96 | $0.96 | $1.95 | $1.34 |
Weighted-average common shares outstanding: | ||||
Basic | 102,502 | 101,859 | 102,361 | 101,812 |
Assuming dilution | 103,659 | 102,805 | 103,513 | 102,583 |
Cash dividends per share of common stock | $0.260 | $0.245 | $0.780 | $0.735 |
Depreciation, depletion, accretion and |
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|
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Effective tax rate | 34.7% | 24.8% | 30.7% | 27.1% |
TABLE B | ||||
Vulcan Materials Company and Subsidiary Companies | (Amounts in thousands) | |||
| Three Months Ended | Nine Months Ended | ||
2004 | 2003 | 2004 | 2003 | |
Net Sales | ||||
Construction Materials | $649,309 | $616,280 | $1,665,906 | $1,564,949 |
Chemicals | 154,576 | 131,304 | 437,949 | 396,310 |
Total | $803,885 | $747,584 | $2,103,855 | $1,961,259 |
Total Revenues | ||||
Construction Materials | $723,375 | $685,534 | $1,845,681 | $1,729,729 |
Chemicals | 167,817 | 144,371 | 479,294 | 433,722 |
Total | $891,192 | $829,905 | $2,324,975 | $2,163,451 |
Earnings (Loss) from Continuing Operations | ||||
Construction Materials | $148,736 | $144,085 | $312,782 | $282,252 |
Chemicals | 10,867 | (6,330) | 6,841 | (21,489) |
Segment* earnings | $159,603 | $137,755 | $319,623 | $260,763 |
Depreciation, Depletion, Accretion and | ||||
Construction Materials | $52,251 | $54,338 | $155,960 | $160,582 |
Chemicals | 11,550 | 12,578 | 35,085 | 38,343 |
Total | $63,801 | $66,916 | $191,045 | $198,925 |
* After allocation of corporate expenses and income, other than interest, to the segment with which it is related in terms of products and services. Allocations are based on a trailing 12-month average capital employed and net sales. |
TABLE C | |||
Vulcan Materials Company and Subsidiary Companies | (Amounts in thousands) | ||
Consolidated Balance Sheets | September 30 | December 31 | September 30 |
Assets | |||
Cash and cash equivalents | $346,683 | $416,689 | $330,205 |
Medium-term investments | - | 4,974 | 4,972 |
Accounts and notes receivable: | |||
Accounts and notes receivable, gross | 466,378 | 368,671 | 446,668 |
Less: Allowance for doubtful accounts | (9,457) | (8,718) | (10,124) |
Accounts and notes receivable, net | 456,921 | 359,953 | 436,544 |
Inventories: | |||
Finished products | 162,357 | 174,778 | 162,080 |
Raw materials | 7,579 | 7,483 | 8,206 |
Products in process | 781 | 476 | 271 |
Operating supplies and other | 35,550 | 36,639 | 39,768 |
Inventories | 206,267 | 219,376 | 210,325 |
Deferred income taxes | 35,100 | 34,358 | 36,009 |
Prepaid expenses | 24,771 | 14,892 | 19,429 |
Total current assets | 1,069,742 | 1,050,242 | 1,037,484 |
Investments and long-term receivables | 20,371 | 21,111 | 20,965 |
Property, plant and equipment: | |||
Property, plant and equipment, cost | 4,227,205 | 4,115,646 | 4,149,684 |
Less: Reserve for depreciation, depletion and amortization | (2,356,348) | (2,222,998) | (2,216,337) |
Property, plant and equipment, net | 1,870,857 | 1,892,648 | 1,933,347 |
Goodwill | 579,817 | 579,817 | 579,180 |
Other assets | 95,267 | 93,042 | 88,624 |
Total | $3,636,054 | $3,636,860 | $3,659,600 |
Liabilities and Shareholders' Equity | |||
Current maturities of LTD | $1,302 | $249,721 | $284,783 |
Notes payable | 48,000 | 29,000 | 30,500 |
Trade payables and accruals | 157,606 | 129,361 | 138,307 |
Other current liabilities | 169,485 | 134,870 | 132,197 |
Total current liabilities | 376,393 | 542,952 | 585,787 |
Long-term debt | 607,158 | 607,654 | 608,188 |
Deferred income taxes | 341,949 | 338,913 | 361,312 |
Other noncurrent liabilities | 268,341 | 252,518 | 248,002 |
Minority interest | 95,277 | 91,987 | 91,138 |
Shareholders' equity | 1,946,936 | 1,802,836 | 1,765,173 |
Total | $3,636,054 | $3,636,860 | $3,659,600 |
Current ratio | 2.8 | 1.9 | 1.8 |
TABLE D | ||
Vulcan Materials Company and Subsidiary Companies | (Amounts in thousands) | |
2004 | 2003 | |
Operating Activities | ||
Net earnings | $201,753 | $137,624 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation, depletion, accretion and amortization | 191,047 | 208,097 |
Cumulative effect of accounting change | - | 18,811 |
Increase in assets before effects of business acquisitions | (100,420) | (102,566) |
Increase in liabilities before effects of business acquisitions | 77,144 | 106,190 |
Other, net | (5,893) | (16,907) |
Net cash provided by operating activities | 363,631 | 351,249 |
Investing Activities | ||
Purchases of property, plant and equipment | (142,017) | (139,777) |
Proceeds from sale of property, plant and equipment | 26,665 | 48,387 |
Payment for businesses acquired, net of acquired cash | (29,433) | (2,493) |
(Increase) decrease in medium-term investments | 4,974 | (4,972) |
Change in investments and long-term receivables | 661 | (5,075) |
Net cash used for investing activities | (139,150) | (103,930) |
Financing Activities | ||
Net borrowings (payments) - commercial paper and bank lines of credit | 19,000 | (6,798) |
Payment of short-term debt and current maturities | (249,542) | (6,391) |
Payment of long-term debt | (195) | (197) |
Dividends paid | (79,684) | (74,658) |
Proceeds from exercise of stock options | 14,551 | 2,514 |
Other, net | 1,383 | (2,312) |
Net cash used for financing activities | (294,487) | (87,842) |
Net increase (decrease) in cash and cash equivalents | (70,006) | 159,477 |
Cash and cash equivalents at beginning of period | 416,689 | 170,728 |
Cash and cash equivalents at end of period | $346,683 | $330,205 |
Table E | ||
1. Supplemental Cash Flow Information | ||
Supplemental Disclosure Of Cash Flow Information | 2004 | 2003 |
Cash paid during the period for: | ||
Interest, net of amount capitalized | $33,045 | $34,886 |
Income taxes | 58,635 | 11,934 |