BIRMINGHAM, Ala., Nov. 2, 2011 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's largest producer of construction aggregates, announced results today for the third quarter ended September 30, 2011.
(Logo: http://photos.prnewswire.com/prnh/20090710/CL44887LOGO )
Third Quarter Summary and Comparisons with the Prior Year
- The average unit sales price increased in most product lines.
- Freight-adjusted aggregates prices increased 1 percent;
- Asphalt mix prices increased 10 percent;
- Ready-mixed concrete prices increased 6 percent.
- Aggregates shipments declined 2 percent.
- Unit costs for diesel fuel and liquid asphalt increased 40 percent and 20 percent, respectively, reducing pretax earnings by $21 million.
- Selling, administrative and general (SAG) expenses were $10 million lower than the prior year.
- Earnings from continuing operations were $22 million, or $0.17 per diluted share, compared to $11 million, or $0.08 per diluted share, in the prior year.
- EBITDA was $194 million versus $150 million in the prior year.
- The current quarter's earnings include $63 million in EBITDA, or $0.30 per diluted share, related to the sale of non-strategic aggregates facilities and recovery from an insurer of legal settlement costs related to the Illinois lawsuit settled in the second quarter of last year.
- Excluding these two items, EBITDA was $131 million and earnings from continuing operations were a loss of $0.13 per diluted share.
Commenting for the Company, Don James, Chairman and Chief Executive Officer, stated, "Business conditions remained challenging in the third quarter. The fragile economic recovery and absence of meaningful job growth continued to hamper construction activity while diesel fuel and liquid asphalt costs remained at elevated levels. However, we are pleased that continued improvement in product pricing in the third quarter helped offset these higher energy-related costs.
"In recent months, we have completed several actions that increase cash and liquidity and that should enhance our future operating performance. We have closed two transactions that yield $57 million in cash, increase our aggregates reserves position, and should increase our future EBITDA. Also in the quarter, we were awarded $24 million in an insurance arbitration associated with last year's legal settlement with the Illinois Department of Transportation. In addition, we terminated an in-the-money interest rate swap and received $23 million in cash for the future value of the swap. Termination of the swap had no material earnings impact in the third quarter as the cash received will be amortized to income between now and 2016. As a result of these actions, at the end of the third quarter, we had no short-term borrowings and had $152 million in cash, with another $20 million to be received in the fourth quarter."
Third Quarter Operating Results and Commentary
Aggregates segment earnings were $113 million versus $125 million in the prior year's third quarter due mostly to lower shipments and higher unit costs for diesel fuel. The year-over-year decrease in aggregates shipments was due primarily to construction being hampered by continued economic uncertainty. Aggregates shipments increased versus the prior year's third quarter in California, North Carolina, and Maryland due primarily to stronger demand from public infrastructure projects. Aggregates shipments in California were up 26 percent versus the prior year's third quarter due mainly to large project work. The average sales price for aggregates increased 1 percent from the prior year due to improvements across a number of markets. Overall, the earnings effect of a 2 percent decline in shipments reduced segment earnings $5 million and the earnings effect of higher pricing offset some of the impact of the higher unit cost of diesel fuel.
Asphalt Mix segment earnings were $12 million in the third quarter versus $13 million in the prior year's third quarter. The average sales price for asphalt mix increased approximately 10 percent, offsetting the earnings effect of higher liquid asphalt costs. Asphalt mix volume increased 1 percent from the prior year's third quarter.
The Concrete segment reported a loss of $9 million versus a loss of $10 million in the prior year's third quarter. Ready-mixed concrete average sales price increased 6 percent from the prior year's third quarter, contributing to improved unit materials margins versus the prior year. However, the improved materials margin effect was somewhat offset by the earnings impact of an 8 percent decline in volume. Cement segment earnings in the third quarter were a loss of $1 million, a slight improvement over the prior year.
SAG expenses in the third quarter were $10 million lower than the prior year's level. This year-over-year decrease was due primarily to lower legal expenses and cost saving initiatives.
In September, we completed the sale of certain non-strategic aggregates facilities. This divestiture resulted in a pretax gain of approximately $40 million.
In the third quarter, we recognized earnings of approximately $24 million for an arbitration award related to the lawsuit settled last year with the Illinois Department of Transportation from the third and final insurer. Included in this total amount was approximately $3 million of current year legal fees and interest income. In the first quarter of this year, we recovered approximately $26 million in an arbitration with two other insurers.
All results are unaudited.
Outlook Highlights and Commentary
- Assuming normal weather patterns, aggregates volume in the fourth quarter should approximate the prior year.
- Aggregates pricing in the fourth quarter should be higher than the prior year, offsetting slightly higher costs due in part to higher prices for energy.
- In the fourth quarter, Asphalt mix volumes should be higher than the prior year due mostly to project work in California.
- Higher pricing for asphalt mix in the fourth quarter should offset higher costs for liquid asphalt.
- Fourth quarter ready-mixed concrete pricing should be higher versus the prior year while concrete volumes are expected to be lower.
- SAG costs in the fourth quarter of 2011 are anticipated to be lower than in the prior year.
Commenting on the Company's outlook, Mr. James stated, "In the current economic environment, we expect future demand for our products to be supported by contract awards for public spending on highway projects, specifically road-related construction, and a modest improvement in private nonresidential building construction. For the twelve month period ending September 30, 2011, contract awards for highways, which include federal, state and local road and bridge projects, were down 3 percent in Vulcan-served states. However, contract awards for the more aggregates-intensive road-related projects were up 6 percent versus the prior year while bridges were down 19 percent. We believe this sharp contrast between road and bridge contract award activity is due in part to the types of projects funded with stimulus dollars as well as the increase in spending from regular funding programs by departments of transportation, which in the absence of a new multi-year federal highway bill, are currently more focused on maintaining existing capacity.
"Several developments in Congress offer encouragement that federal highway funding is moving in a positive direction. The current six-month funding extension, which was signed into law September 16, 2011, includes annualized budget authority of approximately $40 billion, essentially in line with 2011 funding levels. The extension passed by wide margins in both chambers of Congress, as did the Continuing Resolution that appropriated funds at essentially current levels, at the beginning of the new fiscal year on October 1. It is notable that leaders in Congress from both parties have been working to maintain highway funding at or very near current levels at a time of dramatic proposed cuts in many other areas of the federal budget. With respect to the reauthorization of the multi-year surface transportation bill, Senate Environment & Public Works Committee bipartisan leadership announced on October 21 plans to mark up its proposed two-year surface transportation reauthorization bill on November 9, 2011. This bill is intended to maintain Fiscal Year 2011 highway funding levels, plus inflation, for Fiscal Years 2012 and 2013, providing further stability to the federal surface transportation program. And in a shift from its previous position, House leadership is now promoting transportation infrastructure legislation as a way to create jobs, and has authorized the House Transportation and Infrastructure Committee to find significant new sources of revenue for the Highway Trust Fund.
"Private construction has remained at low levels with some indications of improvement in certain categories. In residential construction, single-family housing starts remain at historically low levels. Multi-family starts, on the other hand, have increased sharply since late last year. In Vulcan-served states, trailing twelve-month multi-family housing starts have increased 21 percent, the fourth consecutive quarter of double-digit increases, providing evidence that favorable demographics can support construction activity even with weak economic conditions.
"Private nonresidential construction has also remained at low levels; however, trailing twelve-month contract awards are up across the U.S. for the third quarter in a row. While the growth in contract awards in the manufacturing sector has remained strong since late last year, awards for new projects in the categories of retail and office buildings have increased modestly for the second consecutive quarter. While the recent growth in contract awards is encouraging, we believe employment growth, as well as an increase in business investment and lending activity is needed to sustain a recovery in nonresidential construction activity.
"Our full year SAG costs should be approximately $25 million lower than the prior year with additional measures in place that will further reduce overhead cost in 2012. Planned capital spending remains at $100 million, up modestly from $86 million in 2010.
"In summary, we are encouraged by the recent developments in Washington regarding federal highway funding as well as the modest improvement in contract awards in a variety of private nonresidential building categories, albeit from a small base. To position our company today for significant earnings growth from a recovery in demand for our products, we remain focused on taking prudent steps to control costs, to improve liquidity and to continue to adjust our product mix and geographic footprint."
Conference Call
Vulcan will host a conference call at 10:00 a.m. CDT on November 3, 2011. Investors and other interested parties in the U.S. may access the teleconference live by calling 866.761.0749 approximately 10 minutes before the scheduled start. International participants can dial 617.614.2707. The access code is 57673585. A live webcast will be available via the Internet through Vulcan's home page at www.vulcanmaterials.com. The conference call will be recorded and available for replay approximately two hours after the call through November 10, 2011.
Vulcan Materials Company, a member of the S&P 500 Index, is the nation's largest producer of construction aggregates, a major producer of asphalt mix and concrete and a leading producer of cement in Florida.
Certain matters discussed in this release, including expectations regarding future performance, contain forward-looking statements that are subject to assumptions, risks and uncertainties that could cause actual results to differ materially from those projected. These assumptions, risks and uncertainties include, but are not limited to, those associated with general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; the lack of a multi-year federal highway funding bill with an automatic funding mechanism; the reluctance of state departments of transportation to undertake federal highway projects without a reliable method of federal funding; the impact of a prolonged economic recession on our industry, business and financial condition and access to capital markets; changes in the level of spending for private residential and nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions; the outcome of pending legal proceedings; pricing of our products; weather and other natural phenomena; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by the Company; changes in interest rates; the impact of our below investment grade debt rating on our cost of capital; volatility in pension plan asset values which may require cash contributions to the pension plans; the impact of environmental clean-up costs and other liabilities relating to previously divested businesses; the Company's ability to secure and permit aggregates reserves in strategically located areas; the Company's ability to manage and successfully integrate acquisitions; the potential of goodwill impairment; the potential impact of future legislation or regulations relating to climate change or greenhouse gas emissions or the definition of minerals; and other assumptions, risks and uncertainties detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year. Forward-looking statements speak only as of the date hereof, and Vulcan assumes no obligation to publicly update such statements.
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| Table A | |
| Vulcan Materials Company |
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| |
| and Subsidiary Companies |
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| |
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| (Amounts and shares in thousands, except per share data) | |
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| |
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|
| Three Months Ended |
| Nine Months Ended | |
| Consolidated Statements of Earnings |
| September 30 |
| September 30 | |
| (Condensed and unaudited) |
| 2011 |
| 2010 |
| 2011 |
| 2010 | |
|
|
|
|
|
|
|
|
|
| |
| Net sales |
| $ 714,947 |
| $ 699,792 |
| $ 1,828,720 |
| $ 1,857,085 | |
| Delivery revenues |
| 45,805 |
| 43,412 |
| 121,203 |
| 115,534 | |
| Total revenues |
| 760,752 |
| 743,204 |
| 1,949,923 |
| 1,972,619 | |
|
|
|
|
|
|
|
|
|
| |
| Cost of goods sold |
| 599,167 |
| 573,045 |
| 1,619,206 |
| 1,607,109 | |
| Delivery costs |
| 45,805 |
| 43,412 |
| 121,203 |
| 115,534 | |
| Cost of revenues |
| 644,972 |
| 616,457 |
| 1,740,409 |
| 1,722,643 | |
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|
|
|
|
|
|
|
|
| |
| Gross profit |
| 115,780 |
| 126,747 |
| 209,514 |
| 249,976 | |
| Selling, administrative and general expenses |
| 67,859 |
| 77,560 |
| 221,267 |
| 247,431 | |
| Gain on sale of property, plant & equipment |
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| |
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| and businesses, net |
| 41,457 |
| 476 |
| 44,831 |
| 50,210 | |
| Recovery (charge) from legal settlement |
| 20,857 |
| - |
| 46,404 |
| (40,000) | |
| Other operating income (expense), net |
| (3,567) |
| 769 |
| (10,509) |
| 2,117 | |
| Operating earnings |
| 106,668 |
| 50,432 |
| 68,973 |
| 14,872 | |
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|
|
|
|
|
|
|
| |
| Other nonoperating income (expense), net |
| (3,745) |
| 1,637 |
| (2,384) |
| 1,780 | |
| Interest expense, net |
| 50,678 |
| 47,526 |
| 163,839 |
| 134,541 | |
| Earnings (loss) from continuing operations |
|
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|
|
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| |
|
| before income taxes |
| 52,245 |
| 4,543 |
| (97,250) |
| (117,889) | |
| Provision (benefit) for income taxes |
| 29,833 |
| (6,048) |
| (47,938) |
| (61,491) | |
| Earnings (loss) from continuing operations |
| 22,412 |
| 10,591 |
| (49,312) |
| (56,398) | |
| Earnings (loss) on discontinued operations, net of tax |
| (2,453) |
| 2,655 |
| 6,399 |
| 6,905 | |
| Net earnings (loss) |
| $ 19,959 |
| $ 13,246 |
| $ (42,913) |
| $ (49,493) | |
| Basic earnings (loss) per share: |
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|
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| |
|
| Continuing operations |
| $ 0.17 |
| $ 0.08 |
| $ (0.38) |
| $ (0.44) | |
|
| Discontinued operations |
| (0.02) |
| 0.02 |
| 0.05 |
| 0.05 | |
|
| Net earnings (loss) per share |
| $ 0.15 |
| $ 0.10 |
| $ (0.33) |
| $ (0.39) | |
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| |
| Diluted earnings (loss) per share: |
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| |
|
| Continuing operations |
| $ 0.17 |
| $ 0.08 |
| $ (0.38) |
| $ (0.44) | |
|
| Discontinued operations |
| (0.02) |
| 0.02 |
| 0.05 |
| 0.05 | |
|
| Net earnings (loss) per share |
| $ 0.15 |
| $ 0.10 |
| $ (0.33) |
| $ (0.39) | |
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| Weighted-average common shares |
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| outstanding: |
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| Basic |
| 129,493 |
| 128,602 |
| 129,341 |
| 127,840 | |
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| Assuming dilution |
| 129,768 |
| 128,910 |
| 129,341 |
| 127,840 | |
| Cash dividends declared per share |
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| |
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| of common stock |
| $ 0.25 |
| $ 0.25 |
| $ 0.75 |
| $ 0.75 | |
| Depreciation, depletion, accretion and |
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| |
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| amortization |
| $ 90,948 |
| $ 97,697 |
| $ 273,671 |
| $ 289,174 | |
| Effective tax rate from continuing operations |
| 57.1% |
| -133.1% |
| 49.3% |
| 52.2% | |
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| Table B | |
| Vulcan Materials Company | |
| and Subsidiary Companies | |
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| (Amounts in thousands, except per share data)
| |
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| |
| Consolidated Balance Sheets |
| September 30 |
| December 31 |
| September 30 | |
| (Condensed and unaudited) |
| 2011 |
| 2010 |
| 2010 | |
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| As Restated (a) | |
| Assets |
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| |
| Cash and cash equivalents |
| $ 152,379 |
| $ 47,541 |
| $ 82,496 | |
| Restricted cash |
| 81 |
| 547 |
| 531 | |
| Medium-term investments |
| - |
| - |
| 3,910 | |
| Accounts and notes receivable: |
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|
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| |
|
| Accounts and notes receivable, gross |
| 437,754 |
| 325,303 |
| 414,316 | |
|
| Less: Allowance for doubtful accounts |
| (7,715) |
| (7,505) |
| (9,382) | |
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| Accounts and notes receivable, net |
| 430,039 |
| 317,798 |
| 404,934 | |
| Inventories: |
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| |
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| Finished products |
| 249,265 |
| 254,840 |
| 251,457 | |
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| Raw materials |
| 26,284 |
| 22,222 |
| 22,924 | |
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| Products in process |
| 3,473 |
| 6,036 |
| 5,905 | |
|
| Operating supplies and other |
| 38,755 |
| 36,747 |
| 35,958 | |
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| Inventories |
| 317,777 |
| 319,845 |
| 316,244 | |
| Current deferred income taxes |
| 47,833 |
| 53,794 |
| 64,768 | |
| Prepaid expenses |
| 27,074 |
| 19,374 |
| 34,279 | |
| Assets held for sale |
| 26,883 |
| 13,207 |
| 14,582 | |
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| Total current assets |
| 1,002,066 |
| 772,106 |
| 921,744 | |
| Investments and long-term receivables |
| 28,917 |
| 37,386 |
| 33,808 | |
| Property, plant & equipment: |
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| Property, plant & equipment, cost |
| 6,665,937 |
| 6,692,814 |
| 6,664,335 | |
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| Less: Reserve for depr., depl. & amort. |
| (3,222,469) |
| (3,059,900) |
| (2,987,287) | |
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| Property, plant & equipment, net |
| 3,443,468 |
| 3,632,914 |
| 3,677,048 | |
| Goodwill |
| 3,086,716 |
| 3,097,016 |
| 3,096,300 | |
| Other intangible assets, net |
| 698,703 |
| 691,693 |
| 685,696 | |
| Other noncurrent assets |
| 122,011 |
| 106,776 |
| 106,922 | |
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| Total assets |
| $ 8,381,881 |
| $ 8,337,891 |
| $ 8,521,518 | |
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| |
| Liabilities and Equity |
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| |
| Current maturities of long-term debt |
| $ 5,215 |
| $ 5,246 |
| $ 325,249 | |
| Short-term borrowings |
| - |
| 285,500 |
| - | |
| Trade payables and accruals |
| 134,853 |
| 102,315 |
| 138,462 | |
| Other current liabilities |
| 222,762 |
| 172,495 |
| 207,085 | |
| Liabilities of assets held for sale |
| 1,474 |
| 116 |
| 460 | |
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|
| Total current liabilities |
| 364,304 |
| 565,672 |
| 671,256 | |
| Long-term debt |
| 2,816,223 |
| 2,427,516 |
| 2,432,521 | |
| Noncurrent deferred income taxes |
| 800,770 |
| 849,448 |
| 856,631 | |
| Other noncurrent liabilities |
| 524,485 |
| 530,275 |
| 537,041 | |
|
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| Total liabilities |
| 4,505,782 |
| 4,372,911 |
| 4,497,449 | |
| Equity: |
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|
|
|
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| |
|
| Common stock, $1 par value |
| 129,233 |
| 128,570 |
| 128,391 | |
|
| Capital in excess of par value |
| 2,538,987 |
| 2,500,886 |
| 2,487,538 | |
|
| Retained earnings |
| 1,372,822 |
| 1,512,863 |
| 1,591,969 | |
|
| Accumulated other comprehensive loss |
| (164,943) |
| (177,339) |
| (183,829) | |
|
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| Total equity |
| 3,876,099 |
| 3,964,980 |
| 4,024,069 | |
|
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| Total liabilities and equity |
| $ 8,381,881 |
| $ 8,337,891 |
| $ 8,521,518 | |
| (a) The September 30, 2010 balance sheet reflects corrections of errors related to an understatement of deferred income tax liabilities. | |
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| Table C | |
| Vulcan Materials Company | |
| and Subsidiary Companies | |
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|
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| (Amounts in thousands) | |
|
|
| Nine Months Ended | |
| Consolidated Statements of Cash Flows |
| September 30 | |
| (Condensed and unaudited) |
| 2011 |
| 2010 | |
|
|
|
|
|
| |
| Operating Activities |
|
|
|
| |
| Net loss |
| $ (42,913) |
| $ (49,493) | |
| Adjustments to reconcile net loss to |
|
|
|
| |
|
| net cash provided by operating activities: |
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|
|
| |
|
|
| Depreciation, depletion, accretion and amortization |
| 273,671 |
| 289,174 | |
|
|
| Net gain on sale of property, plant & equipment and businesses |
| (55,886) |
| (59,004) | |
|
|
| Contributions to pension plans |
| (3,762) |
| (23,400) | |
|
|
| Share-based compensation |
| 12,991 |
| 15,198 | |
|
|
| Deferred tax provision |
| (58,569) |
| (51,060) | |
|
|
| Changes in assets and liabilities before initial |
|
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|
| |
|
|
|
| effects of business acquisitions and dispositions |
| (31,858) |
| (6,647) | |
|
|
| Cost of debt purchase |
| 19,153 |
| - | |
| Other, net |
| 8,899 |
| 13,059 | |
|
|
|
| Net cash provided by operating activities |
| 121,726 |
| 127,827 | |
|
|
|
|
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| |
| Investing Activities |
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|
| |
| Purchases of property, plant & equipment |
| (77,332) |
| (62,104) | |
| Proceeds from sale of property, plant & equipment |
| 11,730 |
| 4,008 | |
| Proceeds from sale of businesses, net of transaction costs |
| 72,830 |
| 50,954 | |
| Payment for businesses acquired, net of acquired cash |
| - |
| (35,404) | |
| Decrease (increase) in restricted cash |
| 466 |
| (531) | |
| Other, net |
| 1,218 |
| 894 | |
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|
|
| Net cash provided by (used for) investing activities |
| 8,912 |
| (42,183) | |
|
|
|
|
|
| |
| Financing Activities |
|
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|
| |
| Net short-term payments |
| (285,500) |
| (236,512) | |
| Payment of current maturities and long-term debt |
| (737,952) |
| (193,994) | |
| Proceeds from issuance of long-term debt |
| 1,100,000 |
| 450,000 | |
| Debt issuance costs |
| (17,904) |
| (3,058) | |
| Proceeds from settlement of interest rate swap agreements |
| 23,387 |
| - | |
| Proceeds from issuance of common stock |
| 4,936 |
| 41,734 | |
| Dividends paid |
| (96,878) |
| (95,696) | |
| Proceeds from exercise of stock options |
| 3,232 |
| 12,597 | |
| Cost of debt purchase |
| (19,153) |
| - | |
| Other, net |
| 32 |
| (484) | |
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|
|
| Net cash used for financing activities |
| (25,800) |
| (25,413) | |
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|
|
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|
| |
| Net increase in cash and cash equivalents |
| 104,838 |
| 60,231 | |
| Cash and cash equivalents at beginning of year |
| 47,541 |
| 22,265 | |
| Cash and cash equivalents at end of period |
| $ 152,379 |
| $ 82,496 | |
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| Table D | |
| Segment Financial Data and Unit Shipments | |
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| (Amounts in thousands, except per unit data) | |
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| |
|
| Three Months Ended |
| Nine Months Ended | |
|
| September 30 |
| September 30 | |
|
|
| 2011 |
| 2010 |
| 2011 |
| 2010 | |
| Total Revenues | |
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| Aggregates segment (a) |
| $ 514,723 |
| $ 514,332 |
| $ 1,324,754 |
| $ 1,369,492 | |
|
| Intersegment sales |
| (42,473) |
| (44,792) |
| (111,770) |
| (119,239) | |
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| Net sales |
| 472,250 |
| 469,540 |
| 1,212,984 |
| 1,250,253 | |
|
| Concrete segment (b) |
| 101,390 |
| 105,049 |
| 281,809 |
| 293,028 | |
|
| Intersegment sales |
| - |
| - |
| - |
| (7) | |
|
|
| Net sales |
| 101,390 |
| 105,049 |
| 281,809 |
| 293,021 | |
|
| Asphalt Mix segment |
| 128,897 |
| 115,788 |
| 304,432 |
| 282,309 | |
|
| Intersegment sales |
| - |
| - |
| - |
| - | |
|
|
| Net sales |
| 128,897 |
| 115,788 |
| 304,432 |
| 282,309 | |
|
| Cement segment (c) |
| 19,137 |
| 20,360 |
| 52,491 |
| 61,208 | |
|
| Intersegment sales |
| (6,727) |
| (10,945) |
| (22,996) |
| (29,706) | |
|
|
| Net sales |
| 12,410 |
| 9,415 |
| 29,495 |
| 31,502 | |
|
| Total |
|
|
|
|
|
|
| |
|
|
| Net sales |
| 714,947 |
| 699,792 |
| 1,828,720 |
| 1,857,085 | |
|
|
| Delivery revenues |
| 45,805 |
| 43,412 |
| 121,203 |
| 115,534 | |
|
|
| Total revenues |
| $ 760,752 |
| $ 743,204 |
| $ 1,949,923 |
| $ 1,972,619 | |
|
|
|
|
|
|
|
|
|
|
| |
| Gross Profit |
|
| |
|
| Aggregates |
| $ 113,391 |
| $ 125,129 |
| $ 227,007 |
| $ 262,514 | |
|
| Concrete |
| (8,887) |
| (10,070) |
| (32,327) |
| (31,736) | |
|
| Asphalt Mix |
| 12,292 |
| 13,440 |
| 20,418 |
| 21,756 | |
|
| Cement |
| (1,016) |
| (1,752) |
| (5,584) |
| (2,558) | |
|
| Total gross profit |
| $ 115,780 |
| $ 126,747 |
| $ 209,514 |
| $ 249,976 | |
|
|
|
|
|
|
|
|
|
|
| |
| Depreciation, depletion, accretion and amortization |
|
| |
|
| Aggregates |
| $ 70,287 |
| $ 74,512 |
| $ 211,502 |
| $ 222,561 | |
|
| Concrete |
| 13,058 |
| 13,622 |
| 39,291 |
| 40,064 | |
|
| Asphalt Mix |
| 1,953 |
| 2,212 |
| 5,877 |
| 6,689 | |
|
| Cement |
| 4,505 |
| 5,787 |
| 13,554 |
| 15,360 | |
|
| Corporate and other unallocated |
| 1,145 |
| 1,564 |
| 3,447 |
| 4,500 | |
|
| Total DDA&A |
| $ 90,948 |
| $ 97,697 |
| $ 273,671 |
| $ 289,174 | |
|
|
|
|
|
|
|
|
|
|
| |
| Unit Shipments |
|
|
|
| |
|
| Aggregates customer tons |
| 39,461 |
| 40,079 |
| 100,389 |
| 105,144 | |
|
| Internal tons (d) |
| 3,106 |
| 3,314 |
| 8,072 |
| 8,748 | |
|
| Aggregates - tons |
| 42,567 |
| 43,393 |
| 108,461 |
| 113,892 | |
|
|
|
|
|
|
|
|
|
|
| |
|
| Ready-mixed concrete - cubic yards |
| 1,043 |
| 1,137 |
| 2,911 |
| 3,165 | |
|
| Asphalt Mix - tons |
| 2,283 |
| 2,258 |
| 5,522 |
| 5,462 | |
|
|
|
|
|
|
|
|
|
|
| |
|
| Cement customer tons |
| 124 |
| 70 |
| 251 |
| 245 | |
|
| Internal tons (d) |
| 97 |
| 148 |
| 316 |
| 390 | |
|
| Cement - tons |
| 221 |
| 218 |
| 567 |
| 635 | |
|
|
|
|
|
|
|
|
|
|
| |
| Average Unit Sales Price (including internal sales) |
|
|
|
| |
|
| Aggregates (freight-adjusted) (e) |
| $ 10.24 |
| $ 10.18 |
| $ 10.31 |
| $ 10.18 | |
|
| Ready-mixed concrete |
| $ 93.06 |
| $ 87.62 |
| $ 92.38 |
| $ 86.95 | |
|
| Asphalt Mix |
| $ 55.84 |
| $ 50.62 |
| $ 54.53 |
| $ 50.54 | |
|
| Cement |
| $ 72.63 |
| $ 79.56 |
| $ 75.44 |
| $ 80.01 | |
| (a) Includes crushed stone, sand and gravel, sand, other aggregates, as well as transportation and service revenues associated with the aggregates business. | |
| |
| (b) Includes ready-mixed concrete, concrete block, precast concrete, as well as building materials purchased for resale. | |
| (c) Includes cement and calcium products. | |
| (d) Represents tons shipped primarily to our downstream operations (e.g., asphalt mix and ready-mixed concrete). Sales from internal shipments are eliminated in net sales presented above and in the accompanying Condensed Consolidated Statements of Earnings. | |
| |
| (e) Freight-adjusted sales price is calculated as total sales dollars (internal and external) less freight to remote distribution sites divided by total sales units (internal and external). | |
| |
| | | | | | | | | | | | |
|
|
|
|
|
|
| Table E | |
| 1. Supplemental Cash Flow Information |
| |
|
|
|
|
|
| |
| Supplemental information referable to the Condensed Consolidated Statements of Cash Flows for the nine months ended
September 30 is summarized below: |
|
| |
|
|
| (Amounts in thousands) | |
|
|
| 2011 |
| 2010 | |
|
|
|
|
|
| |
|
|
|
|
|
| |
| Supplemental Disclosure of Cash Flow Information |
|
|
|
| |
| Cash paid (refunded) during the period for: |
|
|
|
| |
|
| Interest |
| $ 102,260 |
| $ 101,917 | |
|
| Income taxes |
| (31,127) |
| 3,897 | |
|
|
|
|
|
|
| |
| Supplemental Schedule of Noncash Investing and Financing Activities |
|
|
|
| |
| Liabilities assumed in business acquisition |
| 13,774 |
| 150 | |
| Accrued liabilities for purchases of property, plant & equipment |
| 6,511 |
| 4,674 | |
| Stock issued for pension contribution |
| - |
| 53,864 | |
| Fair value of equity consideration for business acquisition |
| 18,529 |
| - | |
|
|
|
|
|
| |
|
|
|
|
|
| |
| 2. Reconciliation of Non-GAAP Measures |
|
|
|
| |
|
|
|
|
|
| |
| Net cash provided by operating activities |
| $ 121,726 |
| $ 127,827 | |
| Purchases of property, plant & equipment |
| (77,332) |
| (62,104) | |
| Free cash flow |
| $ 44,394 |
| $ 65,723 | |
|
|
|
|
|
| |
| Free cash flow deducts purchases of property, plant & equipment from net cash provided by operating activities. This financial metric is used by the investment community as an indicator of a company's ability to incur and service debt. Generally Accepted Accounting Principles (GAAP) does not define "free cash flow." Thus, it should not be considered as an alternative to net cash provided by operating activities or any other liquidity measure defined by GAAP.
| |
| We present this metric for the convenience of investment professionals who use this metric in their analysis, and for shareholders who need to understand the metrics we use to assess performance and to monitor our cash and liquidity positions. We use free cash flow and other such measures to assess the operating performance of our various business units and the consolidated company. We do not use this metric as a measure to allocate resources. | |
| | | | | | | |
|
|
|
|
|
|
|
| Table F | |
|
|
|
|
|
|
|
|
| |
Reconciliation of Non-GAAP Measures |
|
|
|
|
|
|
|
| |
EBITDA and Cash Earnings Reconciliations |
|
|
|
|
|
|
|
| |
|
| (Amounts in thousands) | |
|
| Three Months Ended |
| Nine Months Ended | |
|
| September 30 |
| September 30 | |
|
| 2011 |
| 2010 |
| 2011 |
| 2010 | |
|
|
|
|
|
|
|
|
| |
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Cash Earnings |
|
|
|
|
|
| |
Net cash provided by operating activities |
| $ 114,710 |
| $ 109,171 |
| $ 121,726 |
| $ 127,827 | |
Changes in operating assets and liabilities before initial |
|
|
|
|
|
|
|
| |
effects of business acquisitions and dispositions |
| (5,735) |
| 9,231 |
| 31,858 |
| 6,647 | |
Other net operating items (providing) using cash |
| 1,932 |
| (7,459) |
| 77,174 |
| 105,207 | |
(Earnings) loss on discontinued operations, net of tax |
| 2,453 |
| (2,655) |
| (6,399) |
| (6,905) | |
Provision (benefit) for income taxes |
| 29,833 |
| (6,048) |
| (47,938) |
| (61,491) | |
Interest expense, net |
| 50,678 |
| 47,526 |
| 163,839 |
| 134,541 | |
Less: Depreciation, depletion, accretion and amortization |
| (90,948) |
| (97,697) |
| (273,671) |
| (289,174) | |
EBIT |
| 102,923 |
| 52,069 |
| 66,589 |
| 16,652 | |
Plus: Depreciation, depletion, accretion and amortization |
| 90,948 |
| 97,697 |
| 273,671 |
| 289,174 | |
EBITDA |
| $ 193,871 |
| $ 149,766 |
| $ 340,260 |
| $ 305,826 | |
Less: Interest expense, net |
| (50,678) |
| (47,526) |
| (163,839) |
| (134,541) | |
Current taxes |
| 3,488 |
| 13,303 |
| (10,278) |
| 10,393 | |
Cash earnings |
| $ 146,681 |
| $ 115,543 |
| $ 166,143 |
| $ 181,678 | |
|
|
|
|
|
|
|
|
| |
Reconciliation of Net Earnings (Loss) to EBITDA and Cash Earnings |
|
|
|
|
|
|
|
| |
Net earnings (loss) |
| $ 19,959 |
| $ 13,246 |
| $ (42,913) |
| $ (49,493) | |
Provision (benefit) for income taxes |
| 29,833 |
| (6,048) |
| (47,938) |
| (61,491) | |
Interest expense, net |
| 50,678 |
| 47,526 |
| 163,839 |
| 134,541 | |
(Earnings) loss on discontinued operations, net of tax |
| 2,453 |
| (2,655) |
| (6,399) |
| (6,905) | |
EBIT |
| 102,923 |
| 52,069 |
| 66,589 |
| 16,652 | |
Plus: Depreciation, depletion, accretion and amortization |
| 90,948 |
| 97,697 |
| 273,671 |
| 289,174 | |
EBITDA |
| $ 193,871 |
| $ 149,766 |
| $ 340,260 |
| $ 305,826 | |
Less: Interest expense, net |
| (50,678) |
| (47,526) |
| (163,839) |
| (134,541) | |
Current taxes |
| 3,488 |
| 13,303 |
| (10,278) |
| 10,393 | |
Cash earnings |
| $ 146,681 |
| $ 115,543 |
| $ 166,143 |
| $ 181,678 | |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
EBITDA Bridge |
| Three Months Ended |
|
|
| Nine Months Ended |
|
| |
(Amounts in millions) |
| September 30 |
|
|
| September 30 |
|
| |
|
| EBITDA |
|
|
| EBITDA |
|
| |
Continuing Operations - 2010 Actual |
| $ 150 |
|
|
| $ 306 |
|
| |
Increase / (Decrease) due to: |
|
|
|
|
|
|
|
| |
Recovery (charge) from legal settlement |
| 21 |
|
|
| 86 |
|
| |
Gain on pp&e and divestitures, net |
| 41 |
|
|
| (5) |
|
| |
Aggregates: | Volumes |
| (5) |
|
|
| (33) |
|
| |
| Selling prices |
| 3 |
|
|
| 14 |
|
| |
| Costs and other items |
| (14) |
|
|
| (27) |
|
| |
Concrete |
| - |
|
|
| (2) |
|
| |
Asphalt Mix |
| (1) |
|
|
| (2) |
|
| |
Cement |
| - |
|
|
| (5) |
|
| |
Selling, administrative and general expenses |
| 10 |
|
|
| 26 |
|
| |
All other |
| (11) |
|
|
| (18) |
|
| |
Continuing Operations - 2011 Actual |
| $ 194 |
|
|
| $ 340 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization. Cash earnings adjusts EBITDA for net interest and current taxes. These financial metrics are often used by the investment community as indicators of a company's ability to incur and service debt. Generally Accepted Accounting Principles (GAAP) does not define "EBITDA" and "cash earnings." Thus, they should not be considered as an alternative to net cash provided by operating activities, operating earnings or any other liquidity or earnings measure defined by GAAP.
| |
|
|
|
|
|
| |
We present these metrics for the convenience of investment professionals who use such metrics in their analysis, and for shareholders who need to understand the metrics we use to assess performance and to monitor our cash and liquidity positions. We use EBITDA, cash earnings and other such measures to assess the operating performance of our various business units and the consolidated company. We do not use these metrics as a measure to allocate resources. | |
| | | | | | | | | |
CONTACT: Investor Contact: Mark Warren, +1-205-298-3220, Media: David Donaldson, +1-205-298-3220
