Exhibit 99.1 |
VULCAN ANNOUNCES RECORD FIRST QUARTER EARNINGS PER SHARE |
Birmingham, Alabama -- April 27, 2005 -- Vulcan Materials Company (NYSE:VMC) today announced record net earnings of $54 million, or $0.52 per diluted share, compared to $15 million, or $0.14 per diluted share in the prior year. Earnings from continuing operations were $21 million, or $0.21 per diluted share, compared to last year's $0.20 per diluted share. Earnings from discontinued operations were $0.31 per diluted share, compared to a loss of $0.06 per diluted share in the prior year. Net sales from continuing operations were $479 million in the quarter, an increase of 11 percent from the prior year. |
ECU Price | Annual ECU Earn-Out Proceeds ($Millions) | |||||
$700 | 127 | 122 | 118 | 113 | 109 | |
$650 | 109 | 105 | 100 | 96 | 91 | |
$600 | 92 | 87 | 83 | 78 | 74 | |
$550 | 74 | 70 | 65 | 61 | 56 | |
$500 | 57 | 52 | 48 | 43 | 39 | |
$4 | $5 | $6 | $7 | $8 | ||
Average Spot Price for Natural Gas ($/mmbtu) |
Note: The above table is for illustrative purposes only and does not contemplate the full range of possible values. Actual future results may vary materially from the calculated values above. The Company assumes no duty to update this table. |
TABLE A | ||
Vulcan Materials Company and Subsidiary Companies | (Amounts in thousands, | |
2005 | 2004 | |
Net sales | $479,400 | $431,883 |
Delivery revenues | 49,216 | 42,516 |
Total revenues | 528,616 | 474,399 |
Cost of goods sold | 387,167 | 347,978 |
Delivery costs | 49,216 | 42,516 |
Cost of revenues | 436,383 | 390,494 |
Gross profit | 92,233 | 83,905 |
Selling, administrative and general expenses | 51,436 | 44,487 |
Other operating expense (income), net | 3,029 | (268) |
Other income, net | 1,556 | 1,996 |
Earnings from continuing operations before interest and income taxes | 39,324 | 41,682 |
Interest income | 2,487 | 1,537 |
Interest expense | 9,258 | 12,951 |
Earnings from continuing operations before income taxes | 32,553 | 30,268 |
Provision for income taxes | 11,119 | 9,595 |
Earnings from continuing operations | 21,434 | 20,673 |
Earnings (loss) on discontinued operations, net of tax | 32,917 | (5,678) |
Net earnings | $54,351 | $14,995 |
Basic earnings (loss) per share: | ||
Earnings from continuing operations | $0.21 | $0.20 |
Discontinued operations | 0.32 | (0.05) |
Net earnings per share | $0.53 | $0.15 |
Diluted earnings (loss) per share: | ||
Earnings from continuing operations | $0.21 | $0.20 |
Discontinued operations | 0.31 | (0.06) |
Net earnings per share | $0.52 | $0.14 |
Weighted-average common shares outstanding: | ||
Basic | 102,935 | 102,188 |
Assuming dilution | 104,612 | 103,425 |
Cash dividends per share of common stock | $0.290 | $0.260 |
Depreciation, depletion, accretion and amortization from continuing operations | $52,351 | $51,668 |
Effective tax rate | 34.2% | 31.7% |
TABLE B | |||
Vulcan Materials Company and Subsidiary Companies | (Amounts in thousands) | ||
Consolidated Balance Sheets | March 31 | December 31 | March 31 |
Assets | |||
Cash and cash equivalents | $271,552 | $271,450 | $374,092 |
Medium-term investments | 126,415 | 179,210 | 62,895 |
Accounts and notes receivable: | |||
Accounts and notes receivable, gross | 295,949 | 286,809 | 361,030 |
Less: Allowance for doubtful accounts | (5,157) | (5,196) | (8,434) |
Accounts and notes receivable, net | 290,792 | 281,613 | 352,596 |
Inventories: | |||
Finished products | 173,625 | 158,350 | 184,478 |
Raw materials | 6,968 | 6,512 | 7,274 |
Products in process | 1,312 | 937 | 908 |
Operating supplies and other | 13,438 | 11,385 | 38,288 |
Inventories | 195,343 | 177,184 | 230,948 |
Deferred income taxes | 34,825 | 34,433 | 35,156 |
Prepaid expenses | 15,981 | 15,846 | 16,674 |
Assets held for sale | 475,536 | 458,223 | - |
Total current assets | 1,410,444 | 1,417,959 | 1,072,361 |
Investments and long-term receivables | 7,122 | 7,226 | 20,940 |
Property, plant and equipment: | |||
Property, plant and equipment, cost | 3,330,134 | 3,264,193 | 4,155,101 |
Less: Reserve for depreciation, depletion and amortization | (1,761,268) | (1,727,700) | (2,268,158) |
Property, plant and equipment, net | 1,568,866 | 1,536,493 | 1,886,943 |
Goodwill | 616,341 | 600,181 | 579,817 |
Other assets | 110,758 | 103,274 | 96,200 |
Total | $3,713,531 | $3,665,133 | $3,656,261 |
Liabilities and Shareholders' Equity | |||
Current maturities of LTD | $242,560 | $3,226 | $249,621 |
Notes payable | - | - | 22,000 |
Trade payables and accruals | 122,966 | 95,312 | 143,698 |
Other current liabilities | 167,591 | 139,716 | 128,544 |
Liabilities of assets held for sale | 186,135 | 188,435 | - |
Total current liabilities | 719,252 | 426,689 | 543,863 |
Long-term debt | 364,151 | 604,522 | 609,148 |
Deferred income taxes | 345,386 | 348,613 | 352,069 |
Other noncurrent liabilities | 283,669 | 271,334 | 258,263 |
Minority interest | - | - | 91,177 |
Shareholders' equity | 2,001,073 | 2,013,975 | 1,801,741 |
Total | $3,713,531 | $3,665,133 | $3,656,261 |
TABLE C | ||
Vulcan Materials Company and Subsidiary Companies | (Amounts in thousands) | |
2005 | 2004 | |
Operating Activities | ||
Net earnings | $54,351 | $14,995 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation, depletion, accretion and amortization | 52,661 | 63,494 |
Net gain on disposal of property, plant, and equipment | (1,193) | (2,401) |
Increase in assets before effects of business acquisitions | (42,581) | (9,648) |
Increase in liabilities before effects of business acquisitions | 42,880 | 21,650 |
Other, net | (3,771) | 5,924 |
Net cash provided by operating activities | 102,347 | 94,014 |
Investing Activities | ||
Purchases of property, plant and equipment | (45,205) | (41,919) |
Proceeds from sale of property, plant and equipment | 1,481 | 5,106 |
Payment for businesses acquired, net of acquired cash | (47,301) | (14,388) |
Purchases of medium-term investments | (61,600) | (86,728) |
Proceeds from sales and maturities of medium-term investments | 114,395 | 297,727 |
Change in investments and long-term receivables | 284 | 145 |
Net cash (used for) provided by investing activities | (37,946) | 159,943 |
Financing Activities | ||
Net payments - commercial paper and bank lines of credit | - | (7,000) |
Payment of short-term debt and current maturities | (489) | (477) |
Payment of long-term debt | - | (24) |
Purchases of common stock | (49,482) | - |
Dividends paid | (29,839) | (26,520) |
Proceeds from exercise of stock options | 9,376 | 6,573 |
Other, net | 6,135 | (186) |
Net cash used for financing activities | (64,299) | (27,634) |
Net increase in cash and cash equivalents | 102 | 226,323 |
Cash and cash equivalents at beginning of period | 271,450 | 147,769 |
Cash and cash equivalents at end of period | $271,552 | $374,092 |
TABLE D | |||
Notes to Condensed Consolidated Financial Statements | |||
2005 | 2004 | ||
Supplemental Disclosure Of Cash Flow Information | |||
Cash paid during the period for: | |||
Interest, net of amount capitalized | $7,418 | $7,609 | |
Income taxes | 10,021 | 1,239 |