Vulcan Materials (VMC) 30 Oct 182018 Q3 Earnings call transcript

Company Profile

Participants

Mark D. Warren	Vulcan Materials Co.
J. Thomas Hill	Vulcan Materials Co.
Suzanne H. Wood	Vulcan Materials Co.
Trey H. Grooms	Stephens, Inc.
Jerry Revich	Goldman Sachs & Co. LLC
Philip Ng	Jefferies LLC
Michael Dahl	RBC Capital Markets LLC
Stanley Stoker Elliott	Stifel, Nicolaus & Co., Inc.
Garik S. Shmois	Longbow Research LLC
Kathryn Ingram Thompson	Thompson Research Group LLC
Brent Edward Thielman	D.A. Davidson & Co.
Scott Schrier	Citigroup Global Markets, Inc.
Michael Wood	Instinet LLC

Call transcript

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Operator

Good morning, ladies and gentlemen, and welcome to the Vulcan Materials Company Third Quarter 2018 Earnings Conference Call. My name is Matt and I will be your conference call coordinator today. At this time, all participants have been placed in a listen-only mode to prevent any background noise. And now I'd like to turn the call over to your host, Mr. Mark Warren, Director of Investor Relations for Vulcan Materials. Mr. begin. may you Warren,

Mark D. Warren

Financial thank me joining Chairman today Wood, and and and earnings and third call. Suzanne Chief President Vice With are Senior you morning our for quarter CEO; Officer. Good Tom Hill,

Before to posted quarterly attention call our I we website, supplemental vulcanmaterials.com. would begin, our to your like at materials

today. A replay presentation call will this this access Relations at can of website the Investor home available recording for page You from of our later the website. be

future news Investor Additionally, in under sign be you include to receive quick in company's the can Exchange found forward-looking Commission. uncertainties. alerts with risks, risks of statements, reminded the the may which Relations and the releases in and regarding to our up the e-mail Please are projections results company's Securities that along links These subject comments homepage. earnings release in other detail the are filings and other and described with legal disclaimers,

Additionally, measures. management will refer financial to certain non-GAAP

reconciliation and You and of presentation. supplemental find our other the at the these release both in a earnings can information end related of measures

call the over Tom. Tom? turn I'll Now, to

J. Thomas Hill

to Wood Suzanne Thank quickly very your Senior We to to the company. interest our senior has proved Chief early for and team. our I'm to addition Vice joined leadership today. be Financial on us Suzanne and Welcome, the as appreciate and Suzanne. call President in have call thanks you, joining a in September Mark, today. pleased everyone our strong Officer

our long-term march face weather of execution. notable growing in weather, revenue operating dynamics, same-store coupled unit of demand, in we good, while cost increasing XX%. pricing The saw We flow-through a on our gross Aggregates by bad Aggregates control incremental strong $X.XX These incremental extreme our disciplined of to This and short-term bad public disruptions on were is increase or proud X% resulted Let continue per profit. same-store to a We ton. Aggregates had I'm extremely me the shipments underlying of XX% in get things achieved to flow-through revenue with peoples' disruption. about impact same-store disciplines profitability the quarter. higher. gross no the and demand, right experienced on and underpinned was profit, to delivering have pricing of

The Prices bodes of third all to Aggregates by With which growing in flow-throughs, and volumes quarter the demand. growth is supported well increased revenues for future. selling continue Total XX%, prices. improved reflecting Aggregates by escalate.

San with X.X and loss XX% of in pre-tax Tropical to EBITDA. and loss Antonio. to flooding caused tons million a All related $XX contribute Aggregates this increase We some be quarter. third from Virginia adjusted costs. and wet record rain from flooding Gordon approximately negatively and of weather believe Storm of severe due Dallas increase We Carolinas weather a obviously in in a quarter results weather estimate had in Florence the net affected the earnings We extreme million that Hurricane and in XX% the to and the days –

on move profitability of core to to like the the ex-weather. business, I'd Now, drivers in

this funding private the across markets. a demand, Aggregates showed in is demand so now in growth country, excited XX% public shipments same-store but our see more Highway sector. in the to X% our but the in in public shipments, continue construction quarterly up really seeing basis. We a strengthening the strengthening of conversion and growth much about on we're We're and

given weather strong growth numbers, they're strong severe experienced. are the we these particularly While

below However, demand we are next still levels, much less normalized the peak.

over year and selling rose to and for the the As X% basis, more basis a climb throughout XXXX. second throughout along year, Average we've quarter. mix, on increases than points quarter, price year-over-year continue all this in said prices the will approximately adjusted XX

we at booking in trends backlogs, continue see pricing. upward we will look good pace As our and to

Our customers for XXXX increases are encouraging. on price discussions with

that preliminary mid-single-digit reflecting the improve Our is today. pricing in momentum will view XXXX, we're the seeing positive

unit enabled conditions. our than more offset cost by inefficiencies very operating leverage our declined bad operating despite This per same-store difficult discipline profit, in sales cost increase operating to the and improvement diesel unit other freight-adjusted and X%. Turning weather. with caused gross Again, a cost in and flow-throughs, efficiencies XX% way pleased fuel we're has solid

third shipment Regarding the we allowing with and the you over growth improving; the to disciplines trends. three long-term continue, quarter; third to for two, the in of XX% for similar outlook that quarter, expect would operating saw to continue three, one, consistent our fourth quarter things; prices expect we flow-through,

going revenues demand what we set corresponding are public our approach in to Given we've and tax the shipments. well here growing for why. the and growth pleased growth, demand things I by ourselves volume how Aggregates into XXXX, quarter fourth with am quarter, into third up translating is and which underlying starts, accomplished XXXX, as continue job in driven is pull markets. our DOTs And in we

The confidence numbers. increase also XXXX a and booking pricing pricing it unit over the turn conversations, in plant And realizing made fixed progress backlog margin, with to reinforces and of and us compounding Suzanne gives execution detailed our beyond. Suzanne? along into trends in XXXX. The our more XXXX in we fact I'll continuous continued now, and in in review pricing flow-throughs and bookings positive grow. operating backlogs to continue Our XX% accelerating confidence pace cost that the improvements continues our to for

Suzanne H. Wood

and Tom, Thanks, good morning.

as team. business continue and to and results. Tom several an of progress business me cover Today of to third on great delighted with topics I leader that you. I've culture with to Let me our I'd with working to board, strong a company, market been model. look that to begin forward and to sharing with weeks part improve others overview quarter starting that we it's am like saying clear Vulcan by that eight a is this be In the the I

from are of a few but Tom, think I highlights enough You've heard the reemphasize. to important some

Next, flow-through gross improving to I'll trend. of Aggregates our touch incremental profit on that revenue and

preliminary outlook, on our well and as XXXX. as strong full-year give priorities. review finally, Third, I'll thoughts quick capital And generation, our flow share allocation some cash I'll balance update sheet, a on

Now, despite growth quarter, we earnings. realized the the of as challenges double-digit Tom mentioned, in

Aggregates key volume, and improved average rate, year-over-year Our mix-adjusted profitability strong improved. price Shipments shipment selling and price, many were flow-through our Aggregates our both and sequentially. of of unit in markets,

quarter most Our material strength in These weather. wet cost of the raw flow-through rock we drive is by main when the helped profit pressures gross is business, demonstrate businesses, Aggregates-focused and our ground, higher. per which rate experienced the strong results even the same-store to ton Aggregates in industrial inflation. And unaffected unlike our

diesel and Our fuel. to efficiencies by cost pressures offset helping operating leverage like drive profitability

during cost by Despite by third the for unit declined X%. this, our For XX% unit $X cost quarter, Aggregates diesel prior rose of same-store X%, by results fuel compared to profitability million. example, of our and impacted year by the sales increased unit and

stated respect quarter's were Now, pre-tax we $XX with Tom negatively a this that weather, affected bad results estimate earlier, basis. to as approximately million by on

similar, about particularly Since year's in a comparative costs $XX is weather this the not of broadly effect impact significant. quarter. is the we storm-related million flow-through As the on year's from in third quarters last reminder, had

XX%, our Our the toward to move a flow-through It up year-to-date target direction to step XX% is our right rate another on same-store trailing basis. same-store XX-month was flow-through in see goal. therefore pleasing

flow-through underlying leverage remain the unit continuing ongoing business, number. that and and We cost our this Given improvement and expect margin focused on drive margin we operating the in growth improvement. efficiencies keenly control

the a are of on per-ton our costs there metrics prices, a higher. thoughts or our next that number I'll large like While for to control we when drive business margin The things timing and topic can starts, highway can project exact preliminary some can't of outlook weather, our we and we XXXX touch relates diesel in our control XXXX.

In of EBITDA Aggregates, adjusted core in quarter. increase third quarter billion segment, expect in $X.XXX the growth our to billion. now experienced similar we the of XXXX, should fourth to volume the be same-store level $X.XXX First,

profitability as to will pricing. movement Additionally, emphasized, unit upward there Aggregates' continue Tom improve. be will in

liquid XX% impact full-year in segment, $XX the will Asphalt expensive Moving again on gross of in selling year Asphalt than be profit year. sharply the the of only versus expect lower more the prices, rose the now to result we asphalt prices third to prior the as prior a the million segment up, moving of but partially Average offset quarter, are up year. balance liquid the asphalt for which

SAG outlook DD&A operating profitability XXXX million expense, of major further for the our than expenditure anticipate expectation and interest Concrete review full-year now we as rather such other $XXX Our lines remains expense finally, unchanged. and $XXX will And spending expense capital of capital plans, that After million. unchanged. maintenance remains expense be segment for the

to these million we $XXX the These $XXX of reductions view to reevaluate part and be merits our of CapEx Our cash spending assumptions, reduce expect from growth million. after-tax will ongoing individual the million. capital earnings approximately timing Using flow XXXX from projects. our $XXX to now are

on XXXX, and midst budgeting planning process. Moving our in of please are in that to mind keep we the

already guidance we in early pricing. have Tom would we'll in both for share and volume we earnings, we growth demand the provide mid-single be As report picture some the to private has past, Aggregates when commented and quarter but specific today, thoughts. appropriate more it public digit attractive anticipate on fourth felt and

new and business. the both pace supported conclusion, In I'll allocation are balance here strength address seeing booking at views which sheet Our by and backlogs are priorities. what capital our we we're in

manage structure, to with We the is our weighted interest together to and debt sensibly strong strong weighted business. X.X between credit X Currently, flow years, maturity our profile, our times sheet maintaining XX and and rating, EBITDA. us is investment-grade balance cash our times leverage X.X%. average This gives debt are flexibility committed debt our average rate

priorities for we And capital, will value. be seeking I'll shareholder use allocation to that always turn improve capital our disciplined back over returns some in remarks. Our the closing of the unchanged, now, call Tom and are to and

J. Thomas Hill

in I'm results Suzanne. peoples' Thanks, third under performance impressive of quarter. They tough circumstances. proud the our delivered

margins. of per quarter, focus as rate improving is our performance we XXXX, world-class. And to our momentum that our year-to-date grow operating which operational our which to where made toward we're on in solid in continue price and progress look continue XXX,XXX we unit hours we to X.XX increases, disciplines employee injury our the cost aspects continued goals. drive sharp compounding We worked, of that both including longer-term confident safety third excellence, gain improvements, In will all is

to we'll take Now questions. be happy your

Operator

will And Stephens, with we first you. Trey Inc. hear from Grooms Thank

Trey H. Grooms

Suzanne. Hey. Good and Tom morning,

J. Thomas Hill

Trey. morning, Good

Suzanne H. Wood

Good morning.

Trey H. Grooms

like the going about that's talk seeing that come of that's kind some just that through A of of that quick you most mean, calling been XXXX. there been to some Can we're And question for you've you're for the have and starting acceleration? acceleration sounds to it see on continue into of you drivers that here behind guys price seeing. year. the I

J. Thomas Hill

Sure.

step price we're in back pricing like We look growth the clearly seeing improving. our it's and increases. you in If at momentum our that business, continued

continued our month-over-month. can in up it the the And QX, watch expect, and in really as And see year, of work. the pricing continue improvement kind week-over-week, we see you all increases it we that's We talked bid QX you our about inch price between saw and can in increases just – individual go markets, as we that to that through on expect booking Now, step quarter-over-quarter. through really is on basis you up the to it's paces. of backlogs. it – We the

price work and our logistics and of those point. public we in lot, those conversations more but this happening ship are is see of we'll plant lot jobs, costs, bigger good we're plant that as Diesel view, very They into of in and mid-single fixed at speak digit. market. overcome confidence be a starting that by widens starting for Trey, that January, lot a Now, Those people work said, encouraged to increases fixed most in that's go are as with jump we give talk big clarity those visibility. moat. effect just the feeling visibility prices so to more Obviously, preliminary a The more for have we'll you February, coming. would to underpinning We're those our XXXX. and customers and as We're all good have about we of this, a and conversations. a

clearly back at increases up. as we are So, price it, step and look our moving

Trey H. Grooms

give Tom, that's Thanks then like, and, similar looking XQ ideas in for what look volume seeing coming XQ. in at us it sounds here? are guys right. And to trends that, specifically to you demand Can any helpful. close All October that to with close for a you're least you

J. Thomas Hill

Texas into right momentum the we tell is I'll up QX. to shipped weather came October. QX front, make Texas, in be be QX that out available thoughtful when in the how try Sure. continued strong. But work postponed shipping in from have about are days you I wet sun QX. had many through we say to would the carrying all up the right it in to we've

been the the got Prices strong strength the of demand markets. has move country When to very bid of we're Now up. in continue work and shipping. rest just weather, dry our it we our underlying underpins on

I think execution QX clearly the in operations saw October. carried we into

we should So, that disciplines. XXXX up really along momentum QX. volume not And into kind only unit go all should of momentum this we carry sets QX, margin that see improvement good into us also for those

Suzanne H. Wood

to that Yeah. on QX. I'll couple just of add a comments

third Tom the We've will that's same-store the price, going we've what step-up in terms good volume of that be mentioned. we will guidance gradual in and X% the assuming be the an right, profitability also volume segment. we of it's by the and unit about are at does in things Aggregates in the sort in quarter that experienced XX% flow-throughs uplift improve. line – quarter, got When we obviously You're in of looked and with the to driven about year-over-year, imply

pretty thoughtful. As giving the only really to tried one guidance us. We're behind so October I the about for full and Tom thoughtful the we next some day year, We've We view have of guidance more is think year preliminary October said, to here about of given. here keyword were be go. talking sitting we the end to much got at

the across of the saw in strength we wetness already have any perhaps in we month, bit the So, of in that early country, that quarter, we a the trends or the little factored guidance. Texas – into early

Trey H. Grooms

and from to commentary, some million. $XXX $XXX it million of Suzanne, Great. think for and good. ago, just pass mentioned, That capital was preliminary think to CapEx Thanks do a is, maybe pieces $XXX quarter little I'll any and you million, I a back Suzanne. me how operating we dialing on And $XXX lastly And growth about for CapEx that from maintenance that then and was color, look I update view, to on spending, there those million have two you into two as know or but any bit XXXX?

Suzanne H. Wood

something I you of with it very, CapEx. had side. That year will have I we probably mean, be this relatively this budgeting. our growth bit And indicated, year. than line preliminary think projects a a had little it that, as help? would to guidance. we'll give in would be a and still terms in guess that line week, on spend we we're seen other not to early growth so we maintenance to be I about directional on are way operating a roundtable Not be discussion basis, up of spending year, on very but a in as that next the And – really. for planning comment stages here high it that if you I to with next and of will a I other, expect having number say I big we respect what preliminary had Does say give actually us or when guide that actually one the the quite would had fourth to give to if quarter you firm

Trey H. Grooms

pass a seeing it next you Yeah. on. Tom, Look Suzanne. Absolutely. Thanks week. and guys to lot, Thanks, I'll forward

J. Thomas Hill

Great.

Operator

from question Sachs. our Jerry And Revich with next will Goldman come

J. Thomas Hill

morning, Jerry. Good

Suzanne H. Wood

morning. Good

Jerry Revich

Hi. morning, everyone, and Suzanne, Good welcome.

Suzanne H. Wood

you. Yeah. Thank

Jerry Revich

months? new you think love step I see next the should set I'd most to priorities into that we hear relative the about over over to you opportunity strategic that guess, the you the I about talk your can items the XX organization on the next role, wonder, for how just up as focused Suzanne, you're year?

Suzanne H. Wood

our be fair our be a you give I first question needs foremost, of absolutely. I of focus our try on That's I'll examples to to that. specific a profitability. means strategic improving to when unit say Yeah, that mean, that and and and improving business, couple

across addition to the initiatives efficiencies all take with place, it's of with improving around any in actions improvements, respect to you our we respect to driving it are that with deploying respect thoughtful So an to sure we all that, return appropriate capital, pricing a put all that to and other unit when doing see in profitability. drive And that. very disciplined we us plants making our in are way on

to love So, then doing and try hard cash addition of really of think getting those unit converts sort getting I in all on plan key. good into of help place. that something field to operations. the identify working making improvements work stream, is that and with hard those that, profitability sure things some It's to I I into just And into flow a

forward we So, about those updating that's year. priorities. those talking are you go and hope on the I look I helpful and the as to those through

Jerry Revich

appreciate disparity as strong Sure. the look are growth terms end high Can on really the the are to storms. low organic what flavor growth I the significant of the of in curve And any you end in outliers contributing the organic strong seeing, you despite it. a basis? you're an look of us just shipment then growth across performance quarter, markets the the breadth business – like that on that there and in give for

J. Thomas Hill

I'll at the in price. bit and a talked take mix Yeah. We shot a geographic that. that little about

weather North Arizona, prices And but in jobs higher big both Illinois. Virginia which margins. we price and those unit at corresponding are public got same in lower on would day we bit hit every lower and and therefore shipments a At Carolina, margin. time, take saw particularly Alabama with large, the jobs in higher so little work We and are they

going think. look I to this, Jerry, at but that up any if across seeing mix much in we're mix time all But footprint, go you're was footprint. have pretty across our So in there, our you prices

very of third and up just the everybody's with make and unit And operating in beginning think at time in was this thing the QX into before. look improvements think we're to the up of I we taking – that group I breadth I margin happen, everything the I you've move think pleased and do us saw And the go kind you whole seen want of And improving. right quarter, you and to a QX that XXXX. notch. this same

Jerry Revich

you part outlook in SBX prudent If been the that until out Election you spent. business of Okay. are California as starts in of should here? And, Day, stays we the folks in sort preliminary volume guidance Tom, to mix thinking be what upside of the folks SBX assuming after have money being about the laying magnitude

J. Thomas Hill

won't that's you as for SBX in more lapped. already funding is California We jobs know, any funding already highway work what is. those being of doubling We're – Well, see effect than that year. this of seeing is a Aggregates we me positions SBX lines. of if fair the in flow Asphalt. to. address see you both we'll leading I'll have But want a But I'll in XXXX, that remind in through product just amount and you, both in

Jerry Revich

Please.

J. Thomas Hill

TV encouraged if an watch in at World the really X effort you We're saw ads California. see Series, you And right is in to in There defeat the in California in California. initiatives increasing for there's enormous X ballot – infrastructure support we California fixed November People local by funding. and they're for tired defeating now even SBX. want XX of it. on their roads Ironically, Prop Prop

On through and funding. SBX per is will another of top $X.X Remember, $X flow in do. almost local billion in that taxes the collected we've just year supporting thing there's billion XXXX. right already XXXX in that, So, to

right grow us heard It's SBX we've we're do, growing. Californians SBX. or SBX. and is to seen support very to the California you've is the thing say for as without by with encouraged So, from before, going

Jerry Revich

effort And that in not Tom repeal words, just be to tailwind. clarify, assumed Correct? your other so is already In a would if the defeated, guidance. significant it's

J. Thomas Hill

Yes.

Jerry Revich

you. Thank

J. Thomas Hill

Thank you.

Operator

Phil from with Jefferies. Ng hear will we next And

Philip Ng

provided Hey, outlook. guys. you Glad

J. Thomas Hill

morning. Good

Suzanne H. Wood

Good morning.

Philip Ng

looking welcome and Suzanne, you. with morning, to Good forward working

Suzanne H. Wood

Thank you.

You as well.

Philip Ng

versus the buildup year? given Appreciate on some thinking color some upside seen – XXXX. of provided on and for could outlook you're kind this the weather of see provide private, yeah. you how some you've you and you pricing in of drag Can this Glad public about demand pen-up volumes the

J. Thomas Hill

Yeah.

driven I to. tip would have it to touch I and solid, takes think through the just much years really of flow we're And that flow is as of the remember for that always characterize we growing a So, public, on all by funding, to highway public because visibility which the starting two very lot through. funding, private iceberg it of

But much we to we're and normalized price from less look with while we're just us of booking – lot kind the at see at the to, said volume. you'll point-of-view, so in in me QX on momentum to If long prices, and is step mid-single So, driven. we're digit XXXX. like still funding we – into are is higher you much gives of going it allow coming broad as to remember public go demand if I'd and much particularly cover at peak, a We back this we our really on. demand a have XXXX way it. Backlogs performance I into pace. higher public earlier, levels QX gave business and The still

coming. markets geographic factors. really visibility grow our we're the because One, customer – seeing January advantage, and to the our going XXXX profit I key – our well. And country are our of but the that say conversations very fixed point engine also really gone to and four increases would I'd rest to point backlogs to for large about As than that – what to strategy, plant would are very accelerate. booked said faster you're our have on we of service jobs of to kind I start earlier, it are of Suzanne's our summarize

saw and expect to improvements; good C, be, expanding as price efficiencies drivers with deliver that our in A, unit operating which said, compounding is, point flow-throughs, margins Suzanne QX. Second higher operating with volumes; you we B, will leverage

February earnings our of full one about, that cash synergies And the to focused We're deployment. on conversion fourth We'll getting come talked approach our highway the we a and the projects capital you lot projects. the value view into and of projects got where non-res better stand, through disciplined guidance and from get kind was really we volume back in perspective, available. view acquisitions your these fourth of large out a as large quarter one, as with capturing Third flows. are clearer particularly of

And so, picture you've we'll seen have a But just the and clearer model is, structure's point. our that clear same really at it's core this from us deliver before.

Suzanne H. Wood

the a serve, on do, like the the mentioned, the And award call Dodge into used highway would significant of you in one other XX I'm picture the I page all that improvement Momentum – in award impressed the increase It slide to it is provide various change ABI, markets supplemental add we information as and that what Analytics. just eight having comes of your we we terms in the markets information bit my all in a separates in call I with I'll shows dollars, to other big on of of prepared. some in deck, they try it in trailing mean, that it lot a Yeah. slide months attention little But at I we to look front. serve year-over-year the highway life. new, past as measurement a hearing macro dollars Tom Index same coming the that and in well. the there. Dodge drivers I'm in look what that are We the it from looks versus there that is at markets. on the points. from

we help perspective. we a does sales touch to on that people, telling us our where our want the make so many managers, I customers macro And and sure the think from they're that our bit points what geographically quite us. we we listen employees, to ground, plant are So have other

of as as can't the a that I you're with intelligence complement the a macro what to ground well. hearing data, you and lot that provides on think overlook you

indicators And well. so people getting we're as good from those

So, have what with inconsistent on in we way ground any the heard isn't macro.

Philip Ng

bit color. beat mean, helpful a your kind up stock concerns. unfairly being of is I being really think That's housing I on

few view softening think how side is out given have confident years? that just of you and if Tom, next growth some visibility and public, about backlog that there rate a years things? the how in on there do So moved sustaining you light in on hasn't are the you next of mean, I the maybe private digit of terms of mid-single run the kind sideways

J. Thomas Hill

But public describe growth. rapidly-growing public Texas, public let's now, we saw been waiting We're solid. Georgia, shipments while. which big, you Tennessee, funding Aggregates that at momentum. demand up is like look we've that and back South California, those big I for name side Carolina states a if So just private we're to there's in QX, the as a few, and turning describe I seeing October. QX, growth would momentum. would the side growing, we're

step it think different put So and little in I back let's a we if perspective.

those in highway at and you our which yet. revenues, haven't those shipments up hit of our $XX of funding local per And nine If constitute states, us funding of over the billion look most XX% is states year. initiative

those a if to federal shipments. revenues a that converted haven't bill, put an just And you We tax – into nine in XX% that increase compared federal would on in bill of a be states. almost

and in to to increase XXXX, sea underpins starting But it's our this a confidence that's it'll a big flow XXXX. it just it'll the markets XXXX, and deal XXXX, in public now through, through, and the funding those in continue markets. is demand so change So in flow

Philip Ng

And helpful. really just That's one last one me. for

going we that pricing. Is XQ, some of should pricing that of ship at you behind Some and how in point? dissipating out Thanks do called think lag out called of obviously, expect fourth you early headwinds you you in And, quarter, quoted year XXXX? a the largely into between the in some this mix about and the for lot. mix kind

J. Thomas Hill

I'll big time. take got jobs in market any I any

I Carolina though in with October, is think good we've very you're in and Virginia what weather we shipped – what North seeing well.

I to that Virginia of North demand matter decrease Georgia. Arizona that in starting pent-up don't think in So but to and not want are in or Carolina I shipments even you're volume, Illinois, a places like see Alabama, see a those ship

Operator

question Mike Dahl will with come Markets. And our next from RBC Capital

Michael Dahl

Hi. taking questions. Thanks for my

J. Thomas Hill

Sure.

Michael Dahl

year So, and I approaching XXXX some kind of around more some the impacts, storm around conceptually relating wanted question major to having you impacts. things ask major to a you're obviously storm this last how year guide having

the normal which account As Is you're you're next way have at guide terms different quo, weather? extreme XXXX, it thinking about taking some of going in will into are as far you're or into some you status looking year-to-year, weather that for the year? be there it is looking new of what as to kind

J. Thomas Hill

How do that's a tell confidence we're at if that, timing and you clearer I speak. timing to just having we're the we to of question, know but give and works, answer we'll work be vary conversations working – extremely great you think the that. in in and would how and at you We've through mid-single jobs. it. question look which How we'll I as one is volume, now? a digit solid that, that you but that effect still hard will we from much through large on weather to get as Actually, going we earlier, got said I'm right dodge step I your not trying back that is of look February. do, And have

Michael Dahl

it. Got

any of of more have course progressed question, And how guess or helpful. of regions activity? then, regions a things you still where are you're unable kind there Are the – have and just the That's the over seeing still I October. that clarification unable of facilities know around second September – called areas ship some affected Okay. I but either an for ship major part, unable being or to returned to into as most out to Texas ship issue, into or to pre-storm the

J. Thomas Hill

cost in a both question. don't characteristics year that from That's the quite lingering general. impacts We and – storms the we year. great and shipments different saw see this in The in of are last

have (XX:XX) pumps We've shipping strong. levels, running. also as you I'd when aren't shines facilities. weather facilities lower don't and Texas think has back we're got an our tell very pumping Now, operating in up out, I we issue. in Texas, you the of wet called any we're that all but sun been still

very So, I day, Coast. the on ship. shape I'd every good would say we in Texas. When quits we're call East us healthy raining in it

I saw lingering ago. effects So, a see we year any like don't

Michael Dahl

Thanks, Okay. Tom.

J. Thomas Hill

Sure.

Operator

will we Stanley with from next And Stifel. Elliot hear

J. Thomas Hill

Good morning, Stanley.

Suzanne H. Wood

morning. Good

Stanley Stoker Elliott

we're you how Hey. heading – I welcome, about of higher that maybe there as maybe take you not the field, guys in up year? next environment out much spend inventories Good us market spend guys morning. Thank how with one, or balance for and are a year, in A inventories at guess, are help looking balanced it When you or quick and does could next public difference? that then me think And easier end public is kind question. fitting you into of making Suzanne. to

J. Thomas Hill

into short, think we've inventories that sure and plant, of we where efficiencies or years but first inventory. And been done over I our were sizes that Asphalt, I pretty those last or long, get particularly you maximizing disciplined in in five think making we're have we we've shape. think Well, fines all, better cost we had were base, in also I a which I downturn. think good very our in disciplined Always i.e., the the affects that much cut times job and four

think right too little, not much, shape we're in So, as not on now, inventories, we too amount. I great the right and stand

better our I shipments. to in gotten planning and better, we've back that honed the has and our think that process coordination return

going think shape. in I great a So, we're

think up and at we've better weather whether actually practice fundamental And gotten couple have flexibility lot had or think I down adjusting our or years. with our move demand jobs that. good I and plants over timing we've obviously, of be that's with last of or weather, a facilities and of nimble to the

So, I think we're great in shape.

that. far is base, the and business. tends of fines concerned, a we support asphalt it construction a I off uses of adjust demand lot the of and up of good also which I'd tends our quickly fits also As tends, public aggregates, new is It pricing to as very lot Asphalt public underscore high-end operations, to, for our and uses think also can

done on ready being job think really think very have good them. and good comes shape coordinated for I our local I a a in level So, whatever and we're at folks

Suzanne H. Wood

the little that same-store doesn't year really the any I look inventory number significant our appear levels bit over or that year would a of of you result the with numbers, the back quarter it's a reflect and year, our at would beginning will to it movement higher. to comparing also quarries. that's either But last QX I inventory as if that in Yeah. agree comparative made acquisitions add, and we've at of the some the third

Stanley Stoker Elliott

What of structure Yeah. if capital at M&A about low-end, year, as of is below, it something is is well. Is guys the then assumptions. X talked That X.X was the kind you? And Is interest still to dividend thought if too. times be it number, back? to organic growth? the I preference? shares more Is next not Obviously, into right depending mean, the should you buying times about have you upon the my thinking increasing

J. Thomas Hill

I'll take I'll priorities but our you haven't that changed. capital let telling with Suzanne this, start

As you I M&A is of returns. working of that synergies tend really are to be we're be unit on work made of look growing But greenfield focused going growth at there, biggest the the margins. the we're acquisitions as capturing the we and some earlier, our to both on, said remember, highest growth those the and engine our of out we've volume

see rapidly it of November. that flowing We exciting. and You It's QX. got taste October in into a

priorities. – capital let Suzanne I'll but So take

Suzanne H. Wood

said, I which Tom agree same. remain with, absolutely. the capital I on adding mean, Yeah, priorities just what the to allocation do

of get the talked of returning sustain the it we We we about a and appropriate fact We've on the that with been have able amount. the regardless in to the making to We've cash priority via operating we with And primarily franchise. be absolutely to, the business at that. $XXX about end spent progressively we value expect make be to an But to of can the it. need allocation are. a And maintain quarter, Through grow bit cycle both have talked we to third that sure shareholders, earnings. in spend an that are they waterfall excess You we CapEx. share of existing make growth there. But we the we to look they predicated CapEx we amount got Whatever that bit We've sure grow shows our million capital market. in line us to have know that what want just progressive through then, that toward repurchase. respect in a of sure We the about sustained eye also that the do share dividend. repurchase. would

that highest be But way to use M&A So, is an the goes arise. obviously, to returns into at make in disciplined that it of focused. particular, sure our be in be With M&A job look will capital areas respect to and about balance all and we're those as will we appropriate opportunities they returning. going the

profitable what I business be growth position always about and you But have right as complete risk reiterate We be uses have will same-store also improving you because and extent the We the going point, to other the it particularly an be just control always is doing. business multiples. part get capital. have, lowest always, to certainly the want growth, you're important you want you own to is don't most returns. where And you to the there competing are Tom the M&A that right of fit and over thoughtful overpay, in said, of a the when we our

make but been the is term principal capture have synergies first the them want profitability. we'll have to I that we in fully our I earlier, sure making on be or that I continue sure same-store to that help? we our then, those that focus, capture. going integrating betting acquired, think, planned businesses we second Does said can focus to near So, businesses are that we down as And and in think all to improving question, the look, we we unit it may

Michael Dahl

Perfect. luck. the it. Absolutely. Thank Thanks very Appreciate for time. much. you of Best

J. Thomas Hill

you. Thank

Operator

next Shmois question our will And Longbow from with Research. come Garik

J. Thomas Hill

Good morning, Garik.

Garik S. Shmois

Thanks. Good morning. Hi.

J. Thomas Hill

morning. Good

Garik S. Shmois

and that's drive are a I I guess you concerned exposed group that XXXX, it going that you guess first some of just about? to raw CapEx inflationary inflationary to are move diesel speak materials? tariffs might to the are less just buckets or as any out that to Is impact Aggregates as can question in the you look question, around there my is you mainly the and either knock-on visibility to

J. Thomas Hill

the and area. this business special we're in and business, us back call step different with just and you If Aggregates-focused look the at Aggregates I'd

And We and three that's compounding quite have the the do an widening remember, starting environment by of time, commodity rising prices; in starting logistics cost. driven improving capture to we've fuel widens only and clear potential which of well to see really things; to moat and higher that you're over us about; now moat. talked

there's the sales of fixed cost year of past input, is ground. with in diesel the that unit We back, up of operating improving point X% the with per tip And the for less recovery seeing leverage. saw take is the You five execution, prices, total better room year. a own is which being our QX. and X% per over as years our I'd in reminder, margins cost plenty third major rock you began, than since the up

you at they'd So if our happens tell improving margins what is outside, you no it the that our it's talk to job, what do. matter folks, unit we

third that of quarter. progress in saw You the

before You've seen into this us XXXX. see you do take us this momentum QX into and on great

So we'll grow I have margins regardless. that to confidence great continue unit

Suzanne H. Wood

compounding incremental quarter, I drive. improvements On like it we one out to compounding sort we slide is one measure, I slide, trailing measure add as the need just some our where slide calculate would actually a gross made profit that efficiencies of Vulcan we think five-year flexible pricing the period, specifically also at when annual data ton are improvement. slide, per start annual what to is you that says at the that X% longer-term through a has on managing numbers I against over period, that period, sort that XXXX, XX-month second it's growth sales not one-year and pretty quarter that's XX%. deck unit really of trend of some to business through it I over continue and the take is pretty referencing whatever and that and there, of and a chance. this forward. the one because in recovery. slide on it's have our back on you Yeah. improvement, and On That's the – to costs to shows And is than sort comes a and nimble our compound over how compound us one stay get we that X, period. and of rate are the growth over strong most about level, managing less same it plant comes that which through also increased a great improvements These think rate five-year when lot page calls is cost of the we that focused model five-year a put the exciting type

Garik S. Shmois

color. Thanks Of that for course.

J. Thomas Hill

Thank you.

Garik S. Shmois

year are coming were pricing can into that's year, year to XXXX, about a into I that breaking whether breakout, for overly wanted any far Just ahead if markets But out. out think of starts I and know there's accelerating, the impacted this it's you there's additional into Southeast. that and you of you this you're pricing. when been call tight we from pretty too Tom, were just if next I in reported about supply ask bullish mix think on think wondering cusp on, I'm yourself. this particularly as you look kind also in pricing fits

As into I type XXXX really maybe strong. performance picked very mimic pricing that that regions XXXX, look could demand XXXX?. Any in as up of was into back, XXXX

J. Thomas Hill

Yeah.

really through take growth in We've unit solid California. private, really improvement just good California, demand on in you have-nots seen big that. of highways. and me kind margin haves Let the

also California efficiencies. talk their a a job year really done of good us think step heard in over with improving about They've last You've of cost prices and year, I that this operating lot continues. their function and and

So, I at how I a – give that. both the looking I'll really from margin and perspective, unit issue think and growth and price I'm see

of it's call in X an kicks in very out So and highways. to to started Texas, That price upside $X solid fixed additional growth, California; energized. Prop but going billion. have been would private with improving, again you're Remember, in plant I January in second improvements, costs in growth, margin with have the in big really as with kind growth half, public hit XXXX healthy Prices demand year solid Texas, this just back Texas not going would to and in volumes, potentially a XXXX job energy – in Gulf some bit good harder, a doing projects bit they're there. price a you go slower with in because we'd growth the increases. is and public Coast, But I not it little I volume would of tell a is XXXX later. but that and in you kind big and tell little little

XXXX. right discipline, very very, again into in the Southeast, to good. another Coast, now you'll private, very is operations healthy margins And we've third South operating in going see think pricing in quarter. think better East good, XXXX. work breakout very good private, Improving Pricing in and I very Big Georgia. funding jump public, bid Tennessee, good. good continues be I Carolina, much seen Growing public. so their growing

model is our think business on in track. I So end, overall, the

a summary, growing in driving private, Solid public, moving up sharply – places, disciplines, solid spend margins. of prices operating lot good

XXXX. year into feel we good think going I this and really finishing

Garik S. Shmois

that actually that, or escalators quickly to how question give provide... percentage you into And then many could raise on Thanks. have year just maybe some inflation my another how – us markets Okay. last is real-time way Asphalt. what to offset ask pricing perspective of next your on Can you can

J. Thomas Hill

it's of Suzanne I'll markets touch Asphalt visibility in because happened Let's in what let I'll think talk some and on to what happened step about and to kind back. the then important what expect. I QX

Suzanne H. Wood

price pretty into Yeah. we significant take some is that where leading quarter. is Tom liquid mean, the had and increases We've to right. combat. third and raised that Sure. I increase I the before in prices price our a in mean, account asphalt saw of acceleration had

to – $XX up had asphalt XX% quarter. XX% an actually up an prices quarter. were our in million the able liquid we impact quarter X% to in customers had what of of terms But that about along pass cost third went that in went the So in the about and third impact third

So prices raise tough saw the XX% you number that's just raise a that as try happens like a curve. pretty this increase you bit to will when X% going offset we be there's that. But that to quickly prices able mean upward we catch always as on particularly lag front to to continue a overcome, us in, of just end it saw. time I to

J. Thomas Hill

Yeah.

I well that's explained. think

$XX, quarter-over-quarter our $X went is So, cost. up sequentially prices Asphalt for of And up went which $X. about

$X.XX. Our unit margins down were

can with hit got Unit you margins hard were it fast. going place will catch So the only business, it us it's see This XX% we is to except do. one in again remember, business It catch liquid. increase can but where – temporary. commodity/energy is for our of we up. an and also our in always caught only They

Asphalt bright leader business demand. asphalt with is which I or future, the money exciting business business particularly Asphalt if think California. you in that look is And very it's in the the in highway really our has big Asphalt of funding, where a Tennessee a we're at Texas, and where and all driver

in does. our of It itself. always put this when the And we'll fix way bunch will down, that pocket. it So by turns a

Garik S. Shmois

luck. Understood. Thanks again. Best of

Operator

Group. next question Thompson Kathryn Research from from come will And Thompson our

J. Thomas Hill

morning, Good Kathryn.

Suzanne H. Wood

Good morning.

Kathryn Ingram Thompson

in. Good squeezing morning. for me Thanks

J. Thomas Hill

Sure.

Kathryn Ingram Thompson

know rails, recovery color any easing? there to were question you. color rail that really just were on and first lines efforts transportation several also, And the – you get Thank there. post-Hurricane on wanted is is color rail have Florence back washed First that circling line out any bottlenecks on I

J. Thomas Hill

issues. The Yeah. We're railroads having continue to try still improve. to

some I think to and cost it's behind we week as on volume and there, cost stuff to it that sure fact, us opportunities we we're next XXXX. us railroad try make some we're it's in enter – working in XXXX, us but got they're getting slowly

fill good us in concerned, the washout. rock our for to which couldn't a As far Bad did one off was, the is news is, cut the we get shipped from of we storm few as washout, news have a we yard. The weeks yards.

are of But far our it's question. bad of as little with bit and good So concerned as a facilities a kind and great that.

think we're in shape railroad service the coast. to I that including good yards ability along our

Kathryn Ingram Thompson

interest to little projects that the to larger and a in market side address residential. up boots-on-the-ground are of or to we've starting focus some were being have of you developed and particular, We've as in that that you. get type and are on seen just particularly to in in in we in view you wanted are Thank rates, cycle your on in a in last try fast-growing – and either of markets. this general. noted the the this I light of both would greenfield to trend view put I found What know Texas rising love Thanks. terms bit trend, residential Tennessee seeing

J. Thomas Hill

Yeah.

seen bit seen we've California. we've of I think a – large kick-off, ones very Southern I'll particularly in tell seeing also you, little that. we're some

which quarry San in Diego, our outside about. In excited really really start fact, we're of ever one of the is largest crank right up It'll year. to next done

fundamentally, at look res stronger fundamentals just the are you are just than country markets there. in around the our If ours most and

You got population growth.

got You employment growth. continuing

houses, I You think. still inventories of low got

Maybe okay been in it's it's res, than more as Aggregates-intensive. So the multi, which in for we robust us because see single as but continued little not maybe steady a growth in steady. past, probably stronger is

Suzanne H. Wood

add those some are in states mind, in just of largest that keep that we called states and that of of to out there two that I the Texas I'd Aggregates. have Yeah. California, our seen terms improvement,

of on fair So our share going there, whatever is we will get definitely it.

Kathryn Ingram Thompson

translating Georgia you're the of states terms where volumes that will – – Could on we're out you tracking terms will in lettings that. of volumes in the you're No, instance, dollars those of see but that we've state, seeing pace in dollars? about strong improve for end. legislation, talk like to other definitely starting and touched to our from aware in Thank on perhaps you've Yeah. just Texas, of you. passed California been and that seeing SBX Then

J. Thomas Hill

touch ones. newest I'll probably on the Sure.

flow-through. additional most is got on Prop as they'll you $X know, starting Georgia with big act get XXXX, their talked about. in I the X, Texas think that and shipments think is together, we've I pretty out those that projects We're actually they've we've billion seeing mature, really worked got fast. to

of excellent Tennessee. in starting on get IMPROVE number I a We're is increase Act funding projects. Tennessee DOT, would already Tennessee, in describe of We've Aggregates done got it the out. an in the XXXX. – to Asphalt on and On a jobs lot which ship one job and a fastest work of XX% booked to has both worked for

see a actually quick. in we'll said, quite I little is XXXX, bit which As

work, is Carolina Carolina so South XXXX, bridge you few little some anything South see a slug on bonds which of to now ship we've the remember, interstate had We've slower. being years will seen XXXX. Is in of from not that in XXXX, probably flow But clarity? giving Act ago, it into on will over XX which seen and shipping a – big big we'll a big (XX:XX). us we're kind

Kathryn Ingram Thompson

it, to because get the seen helps because volumes to actually to set does definitely we've takes least for it the months for flowing. it way at expectations California hit to No, XX-plus it dollars Yeah. the typically

was helpful. that So,

J. Thomas Hill

Right.

Kathryn Ingram Thompson

And little that these of then you. projects maybe large past finally, than is bit things they're – they're very big projects... the different with a Thank infrastructure really one that's we've the seen

J. Thomas Hill

Right.

Kathryn Ingram Thompson

I'm lanes three current more project. adding multiple be They're ...they're not like additional may But new years. to a they projects.

which to trend seeing significant For more the serve, type you new similar are a in mix in you of just are of perhaps a or roads expansions? markets you seeing entirely addition

J. Thomas Hill

the of handle big DOTs I them timely call of projects, said through and has having it job handle projects to them that large and done manner. different best them would smoothly. would different also like inside have the a giving in being able this out as them Texas, the flow and these I earlier, ready to a point I are at that stages mix. is

or the about of seeing contractors. budgeted than are is or jobs take design what longer We a build by just been big lot planned substantially the talking in is DOT states this. the we've maybe And

It and as that ask. we we is better and we right. for XXXX we XXXX than know to we did done. XXXX But get and think taking have maybe I mix XXXX questions on because you're just longer is planned to it that the as a plan handle a right for

get going, they're once Now, they efficient. quite

Kathryn Ingram Thompson

quarry on And based Okay. Nashville, you much. just Tennessee. in at you run the very inventories Perfect. Thank Middle fine held your look

J. Thomas Hill

you Did win?

Kathryn Ingram Thompson

much. Not so Not so much.

J. Thomas Hill

participating. for Thanks

Operator

Brent Thielman Davidson. will D.A. we next with from hear And

Brent Edward Thielman

me for Thanks morning. in. Good Thanks. fitting

J. Thomas Hill

Good morning.

Brent Edward Thielman

see growth you backlogged that good backlog, Is that's well I what's Notwithstanding volume Tom, about the priced left some for here. weather helping work to there a issues, that think pretty in through presume us work. of way season winter fall, that's is lot below likely the conditions work to ASP Is that? least that some we bleed at there or to through next of year, into with today? an construction a can opportunity the decent

J. Thomas Hill

we've saying is what is the higher putting I is week-over-week, month-over-month, work at been think we're in prices.

put and – in So work. we have a lot more

between you work up So will and I would that what continue QX the QX. to similar bid say much that saw step

XX basis points. As was Suzanne out, it called

replacing you're working it old I market think work, work, gets with day And so, higher price it. as off every new the

be will the will that bigger week-over-week, that into will – jump to year. price there fixed bid effect to January in be price fixed increases work just for month-over-month, make march And continue so continue and sense? kind plant go will work, there then the through you'll Does stages up, And increase, the see of XXXX. two a two plant as your

Brent Edward Thielman

been you. this all? year, Thank that Has Aggregates as the for at by the U.S. on outlook then, does. expectation has weather And for impacted well? changed It

J. Thomas Hill

U.S. your question, to has yeah, answer short impacted. been The Aggregates

$XX little Three issues And out, assets weather, million, back for be issue in really as at us. short-term a fit there. strategic is about the probably are $XX step really Michael. look you related range. these called We'll good the short, and million it, maybe I a As to

we talked There's be cost the have us backlog. third It's the there for there. about would have of opportunities in some Florida. item us cost As volume. then interruption million project very very to about us been tune work tons. the have X earlier, large there's They – large – there's rail in customer service a there's service. And real They

the and did We we that the have But shipping one expected it the get XXXX. blessing it a rail in start We'll XXXX. issues with pushed to that back. ship things year. in improvements in we're and we Probably really disguise plant pleased gets with, Agg implemented improvements up cost is us this set improvements with It XXXX. efficiency USA, the for of

think we'll volume, unit you capture I synergies the and look if prices at cost, margins. plan, in XXXX's

of control issues so obviously, far, execution, your strategic out temporary we fit. pleased but we're and plan with can't And control

Brent Edward Thielman

Okay.

asphalt breaking costs then as crystal it out thoughts XXXX, Any view do but preliminary market? guys Okay, liquid perfect. relates to I And have a the one possible in guess more, ball IMO the there? on here, tightening you

J. Thomas Hill

up diesel all to lot We've cause AC it. There's go that down. go to theories will kinds – liquid read go of about to it and a

we very I I think and talk much what's at with the a We'll all gets early is, tell. happens. about don't that, important too as price adjust that as to ready And whatever but it view be escalators, watch handle we'll thrown with we need can't we what accordingly us. that know to we'll closely, for time, as need handle control and about we'll we what –

Brent Edward Thielman

Understood.

the appreciate color. I Okay.

J. Thomas Hill

Thank you.

Operator

our from question come Citi. Scott Schrier will And next with

J. Thomas Hill

morning. Good

Scott Schrier

Hi. Good afternoon.

Suzanne H. Wood

morning. Good

Scott Schrier

in for me Thanks getting morning. there. Good

J. Thomas Hill

Sure.

Scott Schrier

in go were shipments Last to that kind trend back. same-store of had continue. expecting you quarter, you have mentioned want I you that to

– think looking had curious September August that understand and July at you I X, slide weather I'm was – at I I'm were And and you in XX%. X%.

the So, is in to of there anything anything in there or feel that do same-store delays basis you August your kind was in met a project July on or slowness, there quarter? residential expectations? Was and read any there there

J. Thomas Hill

Yeah.

had remember, pretty year, slowdown. August is good think we a X% (XX:XX:XX). quarter. last and That XX% was pace. our the shipping expectations. same-store There's off or lot quarter, really a at And it I no what from was it last July and was were this same-store, meeting I if quarter, – There this

demand volume. and you at what's underlying we indicators good if the think I about look the the all feel on leading happening really ground, and

we of We strong. a the even October. but Texas, shipping – ray of every strong sunshine, continue in called were in Texas, rest and been out have country the place we to has when We ship

So, I public more only just The work in, got in think side. demand, we feel really funding next the do. early year, kind to private too project for of And October mid-single-digit good tell. us I on think to starting gives to work to underlying flow, it's starting about flow We've confidence that. steady

got work as have of on we've but call. lot the about to confidence a We in in that that, we've do talked

Scott Schrier

then... And it. Got

Suzanne H. Wood

I information – And is again, sorry to that And think, putting word thoughtful about mid-single-digits that as and as and into guys being speak we've – when next next year we favorite I we more my again, for visibility. be QX tried thoughtful leading with think we – we – activity together. more you I'm more next year, get more you go and booked. to There's through get

our back And so on and needed we with forward we things up we in would, as pick view and go we If as adjust strong year. latest are you as always come then that will that. would, next share

Scott Schrier

had little Thanks. weather I It bit about you had there, the like result seemed considering I Virginia spread. material a but pretty you – you the ask Concrete. to pricing, wanted know had strong especially had a

about expectations you could there your continue if to expand Do Concrete. you the material talk curious I'm your to fundamentals margins? in So see

J. Thomas Hill

yes, – is, we we answer the short Yes, do.

what to that businesses even was in raw the I'll of there markets, and did move are and any flowing again, costs are – really Concrete expect would we weather But, or And up But with prices profile the offset call, into and markets. Virginia. materials XXXX. costs. Our – fuel privileged down, in, we both structure the volume better, growth that we continue

Scott Schrier

Great. Thanks for that.

J. Thomas Hill

Thank you.

Operator

now we Wood with Instinet. Nomura Michael will move to And

J. Thomas Hill

morning. Good

Michael Wood

Hi.

Suzanne H. Wood

Good morning.

Michael Wood

now are about worsen, when slowdown ask business expect currently comments worked residential to the slowdown that wanted the the your projects the accelerated your third spending. private get have to I started. appreciate would near morning. and taking does to Good for have you about your Thanks really as seemed if And like according you through? would when impact to question. companies product the quarter. get large it's I my that homebuilders to in of on see backlog the side But building your The

J. Thomas Hill

in XXXX, don't in we we see As the the that see into markets. out projects there slowdown look our we

So, it further out fundamentals we to a if the they'd actually and – slow of our we're if good much our it again, and seeing steady. not our about be kind in feel slowdown customers, further backlogs out happens. And But talking are there, market.

out hard far it, to we but some visibility predict have me to it's it'd for be because So, it. pretty

Michael Wood

and similar your mix private relatively to mix? public your between national Is California

J. Thomas Hill

I far in would out – in of business markets, Asphalt yeah, it's California. too with our probably not our particularly any

that coming with that flow-through Asphalt and business helps it it. the of underneath on, remember the the into Aggregates You and that really business got to public goes base

are we looking in forward California. projects more So, highway to

Michael Wood

that wanted us Great. And operations some ask just If that. I give I'd around you you in of control, terms at what's weather, your can appreciate else just you the to anything about costs finally quarries? have to your there details, managing the cost reduce besides is highlight helping

J. Thomas Hill

and It's at our just number taken Sure. we've look a core look largest for them had of opportunity disciplines, a facilities, at searches. teams them

improve always that is our our they'd plant, for to anything to their to to core good they're you really you costs, costs. explosives and to that's here knowledge in if hard footprint. plant, going do. they our any about plants, I what improve that's talk just have throughput nothing conversation took to of disciplines detail how get and operating out folks, And of doing you their really, sharing There's of attention I think across tell except any downtime job, the more how how folks to a fuel our the If of this. out of are their

Michael Wood

Great. Thank you.

J. Thomas Hill

Thank you.

Operator

for remarks. back Q&A today. Mr. turn Hill to for And to or call over the additional any conclude Tom closing our that does like session I'd

J. Thomas Hill

Thank you.

the look us you you we of you have a QX, profit We throughout and forward We're we quarter, spent week. your about As It's excited in We tell, engines our appreciate excited appreciate really Suzanne watch the can excited crank the XXXX. with and as you. time you to support Vulcan. with our to with are hope really I speaking performance seeing Thank and We into you this up. great QX look and morning. business. fun

Suzanne H. Wood

you. Thank

Operator

your And this does conclude our call for for participation. today. you Thank

disconnect. now may You

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