Vulcan Materials (VMC) 6 Nov 202020 Q3 Earnings call transcript

Company Profile

Participants

Mark Warren	Vice President of Investor Relations
Tom Hill	Chairman & Chief Executive Officer
Suzanne Wood	Senior Vice President & Chief Financial Officer
Trey Grooms	Stephens
Anthony Pettinari	Citi
Jerry Revich	Goldman Sachs
Mike Dahl	RBC Capital
Phil Ng	Jefferies
Stanley Elliott	Stifel
Adam Thalhimer	Thompson Davis
Michael Dudas	Vertical Research
Seldon Clarke	Deutsche Bank
Garik Shmois	Loop Capital
Adrian Huerta	JPMorgan
David MacGregor	Longbow Research
Xintong Ouyang	On Field Investment

Call transcript

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Operator

Good morning, ladies and gentlemen, and welcome to the Vulcan Materials Company Third Quarter Earnings Conference Call. My name is Maria, and I'll be your conference call coordinator today. [Operator Instructions] Now I will turn the call over to your host, Mr. Mark Warren, Vice President of Investor Relations for Vulcan Materials. Mr. begin. may you Warren,

Mark Warren

release and results forward-looking risks, With to call Suzanne with company's release our are regarding available be end are described measures and include company's Wood, call Exchange later A in projections our and other risks a Officer. operator. to at presentation our and website, today Reconciliations and both and in be our at in Chief Hill, the Securities and detail that available Commission. CEO; reminded the Today's vulcanmaterials.com. are financial subject press and by accompanied and may Senior of other is of Please a are me you, other comments which statements, supplemental the Tom supplemental of posted this non-GAAP earnings filings today disclaimers, uncertainties. recording information Chairman presentation. Financial and the will Thank along These website. release in Vice with replay earnings President legal any for

your call operator during participation With please I together. our limit turn maximize a Q&A will Tom. the As plus time to one participation now will that, over follow-up. This to indicated, the question help

Tom Hill

to result efforts. the thrive company are want healthy. for difficulties our their dedication thanking and and to their as Mark, and our Vulcan of families each and today's thanks and and you will and the to in you, continues safe a in Thank commitment our We begin continue face be I the their to joining well your hope call today. Vulcan your employees the and pandemic, interest customers everyone their direct to appreciate caused other. call Despite Materials flexibility to of We uncertainty by ongoing for Company. by to change,

third the now Turning quarter. to

Our simply. financial summed be can results up very

and performances through margin another operating pricing, of improved aggregate disciplined solid delivered quarter execution. unit teams expansion Our

Our by decline. despite per increased impacted focused the the the severe ton our Texas on on been X% aggregate and profit that respond for year. disciplines number pandemic, Coast, positioned environment. success by wildfires this to and by by X% control also quarters what believe strategic we the were across four a an by We've remaining of Coast. margins could of part expanded cash well unit sure obviously We Atlantic weather rapidly about we we our and Southeast volume was but gross Volume West wet critical making they now, a have our to that and talked changing a

excellence commercial particularly operational and Our our have been disciplines helpful.

flat, for volume. the in Operationally, by a adjusted approximately our the year-over-year, decline diesel our and impact basis, aggregate sales of cash X.X% mix quarter. adjusted despite was mitigated mix quarter by a the unit a increased from tailwind and price X% control, both side, of sales year-to-date. Cost cost On aggregate year-to-date commercial increased in volume. X% efficiencies pricing On lower the operating

by evidenced trends drive sequentially showing first, but four are detail our Suzanne cash want profit ton. Certain unit more improvement signs gross Our address results I quarter year-over-year. improvement year-to-date the both the to per continue we're indicators shortly, of is review This X% our disciplines in to and strategic year-to-date and leading seeing. demand in margins. in will that improvement,

to particularly of Single-family be permits nonresidential leading to have in footprint. not and construction are and variable markets the shipments we rebounded, way, in most timing advantage Private the this continues Residential is especially pace be the is our the use. market housing positioned our well trend. take continues segments. our certain. Starts of the of to and resilient recovery in of However, most construction

compared as in last drop the year. weak to have remained construction Following the spring, starts

nonresidential are encouraged states centers, leading continue that improvement the certain by and warehouses Dodge largest see growth. to category distribution we now Data which could point However, starts indicators, future to in growth.

a states in are According to expected positioned majority two the nonresidential leading account of all to centers types regardless the and of supplier category. our of well years. the Dodge, business approximately of are serve As markets, in we for XX% distribution the Vulcan-served to next warehouses growth over

of for new stores grocery In stations the housing demand. commercial expect of subdivisions. residential this addition, and construction nonresidential gas follow We experiencing in to the build-out historically growth followed type demand buildings, traditional has nonresidential could we're like

recession going As great The to mind that respect pandemic about have FAST it's fiscal Act the surrounding in construction, heavily construction bodes of flat coupled this well DOT their budgets to uncertainty versus states the we was XXXX. think Vulcan-served one-year these increasing highway current public nonresidential This, highway a more pandemic the With segment. XXXX overbuilt. year most extension with important demand. has into to unlike keep on XXXX, weighed the trends, not for of for

have are pick clarity this DOTs highway states revenues, start returning state that approaches XXXX. as with year, a slow due little DOT year progresses. highway to the to to greater in state in are budgets of may conservative but be projects Timing XXXX lettings and early levels pre-COVID to lettings to consistent Now to earlier up will higher continue around projected shipments

October were X% to day. recent shipping less point, of month one more down the aggregate in data a due shipments As

were performance While from quarter. pleased one and constitute with demand third outcome weather month a pent-up doesn't to and better the this the attribute trend, still we

we the consider have guidance believe near-term provide of we full year. As remainder now the to visibility we XXXX, sufficient for

pandemic Therefore, With unchanged. will billion the range has predicated have our in while The COVID-XX major do. our XXXX on assumes changes still no EBITDA created guidance able pattern. our key $X.XXX XXXX, is to remember to also shelter-in-place to business in uncertainty, midst here in that of restrictions, our normal respect expect it This are fundamentals remains budget season guidance weather between range continues underlying of expect to billion. We Visibility provide improve. work our adjusted be we to $X.XXX XXXX of to view and to we is, February. point the the

to adaptable market and resilient conditions. sound, is changing business aggregates-focused Our

of history have We margins. this geographies. to right and compound in confidence increases our the our ability We're good execution, in unit a operational

sheet flexibility will and are great position balance growth and support operational liquidity strength and and initiatives our our Our of a source plans.

Going execution we forward, strong we remain our will focused the our can taking safe keeping things and operating our healthy, control, customers care on and that of ensuring employees disciplines. on good

success. I'll future our in comments. over Suzanne confidence call have for Suzanne? now hand the to And additional We

Suzanne Wood

our comment Tom. Thanks, I'll a on briefly balance and liquidity position. cover highlights and then sheet financial few

$XXX increased prior expansion margins contributors as X% points a well. Our unit compared aggregates XXX total by second, X% margin quarterly adjusted year-to-date Significant EBITDA revenues. earlier; EBITDA the were: or million. EBITDA for to the third basis our despite was an year as the Adjusted metrics in to quarter that a Tom have $X million basis year-over-year improved improvement These and expense. first, discussed SAG on reduction margin in decline

gross reduction to per to of profit volume for Our aggregates the SAG by general increased while decreased million expense or declined X%. aggregates cost $X.XX, execution X% cost initiatives control. the $XX and due by ton by months cash X% nine

our Starting to like little resulting quarterly the demand with a markets, from pandemic. of color Now reflecting in performance. most provide aggregates, segment weaker our volumes declined I'd on

impacted the by outages, of combination mix improved number virtually our affected of experienced control their wildfires on were we adjusted out severe Aggregate X% a in and named price a production. This sales weather quarter a unit addition, record-setting California sales as reflecting of construction profitability. In ready-mix our and interrupted volume. limited cement footprint, cost a of the markets result, key basis particularly shipments as environment. of resulting that storms. supply or than respective And the The markets nearly which pricing Tom by more were growth called activity. growth power widespread across offset good all reduced price was positive concrete

Moving nonaggregates to segments. our

by Shipments as to asphalt profile. the weather, we quarter. factors reduction profit improved to mentioned. compared million, XX% The lower segment's by million concrete of Virginia, costs. improving liquid $XX profit our year. offset return California's $X with prior On than due largest market. particularly gross also were basis, last Asphalt year-over-year less a pricing to was last our than a particularly volume $X versus was wet million the decline on and more improved investment gross year's decreased volume was pleased previously year's due quarter by XX% in concrete third A

trailing months an the For ROI with XX.X%. basis. calculated was And consistent XX ended was this September past adjusted EBITDA XX, on practice,

contained those to We million further the another All on healthy the took times our of leverage and quarter our this the renewed to facility. our and the were a steps liquidity to similar September Approximately basis, facility to available substantially Turning other $X.X XX, from increase on billion. net billion. a of for revolving now hand maturity X.X of debt-to-EBITDA end XXXX. its cash position. terms on our opportunity $X coming previous debt $XXX enhance reflecting repay took size this due hand. used cash will the be credit quarter, five We At liquidity. March to in years a balance $XXX $X to sheet And million at was ratio billion was very in

billion increase XX-month generated trailing to operating the cash as That XX% of also $X.X represents compared flow a the a period. We robust period. in previous

million. are our continue will therefore, how cash We invest capital And our nine expect to totaled for priorities and now year, and about Capital unchanged. a months expenditures comments. have $XXX guidance been of for disciplined $XXX now to we be million. from the $XXX call to allocation and our I'll we million $XXX over between Tom $XXX million back million turn the spend prior this increase to modest closing

Tom Hill

Thanks, Suzanne.

of to each for thank our and of Q&A, I to taking care employees Vulcan Materials we go the Company customers want other. Before

For goal strategic improved And four take now for of to our cash toward your ton be longer-term questions. our per progress gross results profit $X driving and making happy disciplines. through we'll marked our

Operator

Thompson [Operator question the line of comes Instructions] of first from Kathryn Research. Thompson Our

Tom Hill

Good morning.

Unidentified Analyst

Hey, good is on Kathryn. for morning. This Brian Biros actually

Tom Hill

Hey Brian.

Unidentified Analyst

demand with just Hey, real mean I terms a the have it in other relative the what start Vulcan be outlook outlook just greater results one projects? the what and in election for does demand? the terms I -- might and future for impact outcome election in election of guess, And of outcome And really, or of to wanted does the really results. versus

Tom Hill

nine the my and industry regardless elections I've wins I election issue back, of is that in looking outcome. highway seen funding time that Well, thing is kind that this in the of consistent the think one usually Yes. is

as senate and And our unchanged. this So I will begin both a probably today house will the of And in I highway think new think that power next in XXXX. looks of it remain the the much that balance plays would our bill congress pretty work probably favor. on

the on work this has and substantial As highway house senate bill. next done already

the So those a that work the good that's means fact power place of done been start of on with that balance that bills. with are a really already bills we foundation change and doesn't of drafts in lot

So get completely faster -- it back the new it in XXXX may now help support as us And Act with the scratch. is, that's bill. bipartisan a in the have balance intent power because you to highway that the right bill with with don't start go the past of a of from funded back FAST remember come with place the better and actually new congress extension to

then added So should there's new XXXX. includes funded funded a of XXXX. a passes early a infrastructure congress better and which better probably funding. -- highway One outcomes, in in both highway congress is package, our in think stimulus bill new XXXX, new And two late really which importantly, passes I likely two, probably occur

those funding, lines, states see for most federal is believe So from funding their The Along few flat. spend profile look were we'll like settled to of understand XXXX. increased key budgets majority have improved vast of those next and highways our their regardless, we going now year. what have

the think one see down is only that which I probably would would of states. one we not be our Kentucky, somewhat ten top

outlooks. and we that, going and 'XX at beyond, should from the funding it then I DOTs we on a think we overall, look 'XX stimulus funding grow and bill. from into So in And states see improved past should new see highway also based budgets as

Unidentified Analyst

I it. guess as good Got segue my a to next question.

understanding of talked you of of it, I What it's for some guess, think the infrastructure with I our just funding visibility mean, lot impact answered you for some feature in lettings? XXXX on a outlook some and for is, Florida? color guess really guess, states, even COVID of lot I kind about. and does said, a Texas, stuff and kind of you the Virginia, give but that maybe So the Georgia, of California, the specifically as pretty can you maybe those of states going Illinois, XXXX. bright ones, into I other Really,

Tom Hill

Yes.

I slightly at because in state planning will budgeted they specific, major Georgia 'XX XXXX specifically, is think are as in year and an flat look lettings six So projects starting in will next we 'XX exciting Tennessee, budgeting is up be years. Illinois up for XX% $X with in XXXX. XX, that's 'XX. up be both billion on That's from year. but six annually years

Now engineering spending prepare next with doing on of 'XX, I most that the that. them they plan on six that applaud which for five preparing for or years, to

be which other And keys aggregate So X%. from bottlenecks Texas then has Caltrans the construction to -- money states up the they in is have trying that to will XXXX. we've to they're don't to related and demand announced put maintenance, the -- work. highway substantially drive that seen up that

-- So lettings August I in comments, they these DOTs my in in I till opening future, as would and think July, got revenues. said I slowed a remember confidence September, bright

to starting up. they're back lettings Now pick

So of catch-up in But and little a beginning a can may path overall, year. year you growth tail we see segment. I demand a have think of highway have -- next to we bit the end of this

Unidentified Analyst

you. Thank

Operator

question comes of line the Grooms from next of Trey Our Stephens.

Tom Hill

Morning, Trey.

Suzanne Wood

may be Trey morning. you Good muted.

Trey Grooms

Yep, thank you.

Tom Hill

used All to it.

Trey Grooms

Thank good you know. morning. I and

Tom Hill

morning. Good

Trey Grooms

been So -- wet that's challenging profit doing had And a the of I leverage But environment. with And thoughts in front have mean, forest are diesel? you're friend, X% X%. forward pretty it, appreciate on as would that there fires. operational look a on being sustainability and well But cost course, job guys Suzanne, impressive. improvement but on maybe be you efficiencies in of time. successes the the some great Aggregates very the I color on being some got at diesel focusing as gross volume of down the up the you per through cash guys SAG and control expenses, for you've the we there. margin some you weather helpful. walk even of was could as And your outside having the us SAG ton front, going you

Tom Hill

recognizing thank And Sure. for you that.

our we teams of and quarter, $X.XX have year. spite of both. done said, and gross in but volume this an growth third the solid ton has in job year in really think -- spite this in to And challenges profit cash excellent also last you saw I from margin year, $X.XX as per grown

that's people X% And year-to-date, we've in work that improvement face volumes working. So hard implementing disciplines unit at it's really margin a our me, the to that's of our turned X%. strategic and and are going proof down four

solid and gains seen logistics earned sales folks we've our So teams. by our pricing

to what but We metrics operating with the procurement face cost. that some and they're quarry real teams, for and of that drive a this tough all couple really improving disciplined in You this to be create by value of unit of up demand is rock. for performance over those And unit continues really that to time. the to doesn't it's do make our particularly weather, And wet as our that have we'll in remember able they've diesel, tailwind these returns, done, that just compound shareholders. gains with crush margins -- important challenges this

So in it and to going not our let go. put it we're pocket

gross of trailing year, profit months this that think at our XX $X.XX. were we've per toward cash longer-term progress goal shown $X marked I ton,

the people tough I think job it a in good to, a points got executing and we've it and So executing job this done right good have our strategy, times.

I and them, to them. off hat's thank my So

Suzanne Wood

annual just quarter, gross after who still a hard. very with are that as in ton with job the had But showed second profit talked both year, And fact but it's an go diesel that cash And flat impact, add that's X%. the mark easy we point had to if Day which year-over-year. in diesel done gross about, compound third we time, pleased we've to to and as up forward the this XXXX, move we what that, when also field rate per of gross important Great Investor profit an look was the the cash not tailwind slide cash performance, to three we return tailwind. kind of It able Recession. per out cash if you even It's particularly pleased ton of cost you to note you that Trey that, to really, said, we've growth quarter that been we And and forward. over think reached as year. folks Yes. were at I'll really growth profit I it's think Tom And helped. about the our since back And last If -- our in strip and keep I in quarters a your move testament to that working the a inflection the

that appreciate we everything again, done. So they've

accompanied I think $X quarter-by-quarter about talked to just for that of that cash the who -- we've that pleasing longer-term that progression ever be in ton thing march the want that getting that a we forward is the goal it's pack kind and the in we call the And where per release we're profit gross that to illustrate other people goal. relation that slide progression time about. closer slide shows here, also to actually that is reminded to over that new stand are or press now on included of

much of we reduction continuing said efficient, et on look, $X has actions use and at those thing are beginning year-over-year. start took year, the the as to some more with year the quarter, we we resulted benefit from cetera. some the quarter of we technology, We're from the the sometimes other right and asked more to there as that as, we cost did for always things get that And well is, that to initiatives. temporary? I cost it at based XXXX, And is how also reductions. being we ongoing improve about cost of the question last the really did as You of think decline another are talk Well, reduction companies as call, of ways got again, about at year X% million had end important the permanent SAG, all That about SAG we've we what get be those think fourth improvement right is expense. other or looking on about I in that

terms through is or something T&E. learned think in for that I ourselves a other lot people, not managing of the pandemic. whether I at about And you temporary, we've look and think for

And a we us a return I see there, level for think lots don't other before. that of so will of or existed T&E out companies to

So and some to we going I pocket that's continue our money communication that Technologies think other technologies use to in put be as Zoom advantage. to we our

Trey Grooms

a Great. you of Well, the And guys job. all team that. thanks for and great are doing

off hats well. from So me as

you demand as but up but second end As in a looking half highway your there. the then for around your us that the go pick might my and first 'XX, Tom, we more thoughts half in any expectation your give And markets understanding markets other maybe into mentioned start next there's slower normal, today versus year you uncertainty little could than high-level the follow-up, year. through maybe

helpful share So would there just well. with to as us willing you're you. Thank any be color

Tom Hill

early We're predict. XXXX, too doing work Yes. right Thank question, your the answer really you. to now. about To

highway those November, December a looks start set. said, I the July, aggregate seeing little better. the sector we're quarter year We building which now the to as to where think were think but Highways, more so well in up lettings we're are was lettings is now it XXXX, encouraging. budgets. new September, point great very now intensive, it's to we The conservative in very It do August, budgets first encouraging will now. right catch And and doing are the of next much subdivisions, residential. most October,

the clarity So to unknown segment. big lot more looking better nonres. a is and highway The

to the quarter, it we as improving, pre-COVID talked indicators second While in they dropped started levels. albeit leading about not -- back dropped

of I a confidence sector activity We people and watch both The to the of think projects bidding COVID, importantly, see is we start. these be in as seeing a going watch pandemic. most a sign. and to up, the see nonres market's green shoots. economy lot matter in which it's good -- We we're the wants actually

-- that's and booking that's we're yet, quoting not Now time delay. activity, there's where a

and work better we'll if encouraging. than going is we -- to got and So but need XXXX. encouraging, it or six really some still visibility to some indicators months have more signs what's that But see we've continues. are understand that do it three by and much and much today encouraged to still some more visibility happen in But is ago,

Trey Grooms

that. leave for as it luck thanks the to and quarter. on right, it we fourth there, go All I'll good pass

Tom Hill

Thank you.

Suzanne Wood

Trey. Thanks

Operator

question Our of from next the Elliott Stifel. line comes Stanley of

Tom Hill

Stanley. Good morning

Stanley Elliott

Good of that around all terms with everybody. to indicator on some you to the piece. Kind Is certainly, Thank positive production Just the a outlook morning increase What that. it on -- are for all the us, The views. that for on? curious Greenfield? put is of of looking kind other question. plans? to work in color it the taking stick the your CapEx, Is money you

Tom Hill

Thank you.

slightly from million $XXX $XXX million. CapEx to million. million our $XXX raised we saw to to a of range goes you So $XXX up It

up ends increase million. that growth for starting toward modest going said, had $XX this paused we to at projects That So point, the a of go we until are now Most we is had of this, on capital. both replacement clarity.

the in now projects. team appropriate that those markets our we gives demand that have feels like the confidence us the growth to to that visibility restart think I

this And XXXX. that, I But year, that's beauty time greenfields. can get that. and we we this see we really get as would the going, appropriate time. march tell And most about so market us think the excited as that finish increase about we're them to you'll those in the into at a of Now but bit we'll spend little that of projects

But we or -- speed and market the and slow control have can we're the that whole have that can been. team back You you cranking those glad as down up think it we're glad visibility. is I it you up timing

Stanley Elliott

to switch a little bit. and Great gears

In terms in the had pretty sound put the and I The of you last bit release maybe in a encouraging for believe earlier. out on of outlook price. With pricing call terms year, that little letters, potentially you outlook pricing, commentary cadence all about the assume some a into shouldn't demand pricing much of be for could of difference context cadence we difference great. terms the letters next talk year, or would or in any in really of of the sort early

Tom Hill

Yes.

think and I back look let's then look So forward.

we unknowns clear to environment As is struggling questions or are or some a months most to there's always, those are of ago future growth, And challenging improving, a a or demand, growth much seeing of created demand. lack primarily we're Many segment. the And the those defined the three pricing where for were and still mainly about while unknowns. unknowns path really of highway demand visibility better that in growth. residential timing lot with and construction nonres six in and COVID-XX

-- you as us aggregate growing was important ago. having is And price have most or few very resilient, margin We're the unit unit resilient done better more heard a the me metric price metric today is say, growth, but just visibility metric. it's important I said, which a you demand a when a than price important And is pricing obviously, us most as metric, for we're that it is right to with good cost margin, but it's So job always, too. where months is we've customers. our lot conversations big for now a the having controllable is component, as

been out. already Our letters have sent

will are Visibility DOTs conversations parts think growth budgets demand residential materials with able construction for and you, and couple on the the construction, would appear at construction I revenues be those to the to those juncture, is of construction all parts that of that all in growing industry, tell XXXX I to this their you think and improve XXXX. the industry well. conversation pricing or based very encouraging I it sector that communications going would in period. outlook

I in that driven improvement the confidence And markets. encouraging. it's And by so visibility tell that's you and would in

Stanley Elliott

Thank Perfect, Best you for time. I of understand. very the luck. much

Tom Hill

you. Thank

Operator

next the Anthony Our Pettinari of Citi. comes line of question from

Anthony Pettinari

about, it given just that of and trough guess, given the margins? X% in you've in down kind appropriate Tom, of a out about you X% then talked sort could in Is kind to year-over-year versus for to growth, demand when represent volumes think visibility think the despite do I ability October you and laid target down quarter. seen the outperform return how strength margins the of declines, gross you that XX% volume maybe long-term -- to we should your incremental XQ

Tom Hill

workday. this. kind about talk volume let's those October of pieces one October into we'll X%, was So was first, and less get then of other down but it really by driven

third you had we tell probably We more think markets XX, if the XXXX, by rate push mean, mean, that October October. I you rough. October, So -- were volumes comp, XX, an weather would look me, in days of in in the weather so than excuse XX, third XX-plus third also rain 'XX than 'XX. quarter better demand abnormally you quarter. that I at virtually Remember 'XX. dry easier quarter were but I And I than was in saw on 'XX shipments a had basis, 'XX run flat. was aided daily from had an October

bit little a difference a it's in So comps. of

just in fires. the weather, but was I makes start good guidance but about think The lot start hope just that, that which and leads daily a -- to quarter would talked outages you're tough fires and that us a days, solid as just it so so better a in into confidence wet California, -- gives seeing feel losing a do -- production. up wasn't about work we us that many we of catch is full I It October. I about What us fourth COVID, the caused some talked And cement year solid Not it. just of quarter. power, trough. in our curtails

just are it. to customers had couldn't when California. supply us to would Those concrete we're days our and us market cement shipping in down. that problems we and allow had normal the even more do So back We shut solved

again, -- go doesn't that away, that catch coming -- it that So and the volume up months. and over we'll

look settling us. as that funding, and think albeit future of very that think on I I and based So in below res said, news, for the increased forward, the as with coupled looks levels state that encouraging still budgets I with we nonres, incurring visibility

Anthony Pettinari

on ago. the highway states maybe That's months all -- helpful. trumping your spending, like bit ago, some to that talked lockbox, lockbox being in mean, three any state maybe a expected maybe your or major DOTs just Okay. or seen states break needs, than almost within six able And have very of spending that? and then I months of budgets a just or most that major you is better about think claw you Or other away? funds anything state efforts Have being you to seen I

Tom Hill

that if stimulus. state highway We've remember that construction I very like be good I everybody And the DOTs the also very economic is surprised else would and it. like saw seen a wouldn't nothing states recognize that. that -- we does,

and help to And people roads needed work it is And as put work, is in states. those so good those that a to are the way economy highways.

the So expect see to an to rob I wouldn't effort coffers. highway

Anthony Pettinari

Great, that's over. helpful. turn I'll very

Tom Hill

you. Thank

Operator

Revich Sachs. Our question Goldman comes of of line from the Jerry next

Tom Hill

Good morning Jerry.

Jerry Revich

essentially quarter, can you for But voices. was the over Nice pricing of wondering Yes, course not on morning. market about great consistent for the folks if environment spoken folks talk hear the the price this it. market. have about on spot to increase the hi. you training a cadence spot your I'm obviously, Good

course tracked that on any the how the quarter of So over here. update

Tom Hill

volatility pretty to volatile, And volatile. the that we the then you take been kind some and time, a as It up. easy the but a is that, more bit, I and forward, future swings an again, encouraging sum can important I going good and I with improving see has questionable will to world keep which out. news a has news. that is demand think at clarity future of bit perspective, expect It's little from been going to which big us along of little on that as think if a happen, would march

per we've what we unit cash of to disciplines And for confidence controlling about X% improving we've our been the margin, destiny. that quarter-in do with do, of trying our have quarter-out regardless and our very consistently outside that talked couple happens that to to profit and kind of in You as will gross done gross world ton, we the allow us strategic year. that September during what our

unit have confidence ability to So and I that think we internally turn the the consistent margins.

encouraging news is near-term longer-term that out. with couple help I and demand that will about to look and us You shipments better, continue think, there

Jerry Revich

visibility public us, about to in your the in this you length Okay. your out, your And the construction in can business, off could, of we've business? part has for context you that in just of slow then, a Tom, remarks, wondering ago, of compared into lettings early backlog for put if talk seen as year meant you today year think your that what comps. terms prepared I pointed in tougher I'm

Tom Hill

Yes.

So fast, watching on felt they I revenues, the couldn't -- their they they and like were back but were coming states there's think count had they a as it. --

So I they to XXXX." going originally okay "Look, going for we be same just thought were they the are to keep have. said, our freedom while They the letting schedule to think budgets think have didn't they had that

in conservative August were July and they and September. in So lettings

And so playing now catch they're up.

December. see you'll November, states up letting you're and number October, think of substantially go a seeing I our -- lettings in

the seeing schedules in up. will that and quarter now their think first I be I'm second

their spend that's and -- for budgets their So and profile XXXX. consistent with

So some the couple see you'll XXXX. quarters of for up third first quarter and go in fourth was conservative while quarter, lettings there

it. changes lot. timing, So some but that's Maybe that think a I don't

Jerry Revich

part And us on you can side public of for question, the length the just sorry, the today? backlog backlog Tom, comment business? quantify for what's of Can just you of so the

Tom Hill

which are what solid, you nonres we're I a and hit, expect. is in seeing The res. our think I backlogs have backlogs in backlogs would good highways and taken are the think

I seeing I improve. side, that's earlier, things think quote private said As me of to is on you're encouraging one the activity the

you the people to confidence shoots once see the you have where in Now economy, waiting starting has longer we're and pandemic I in were to got bookings you to it, in got to some also. delays there starting see, -- improve that's it, but quote been think book as to

So encouraging.

Operator

Mike Capital comes of RBC Dahl question line of Our Markets. from next the

Suzanne Wood

morning. Good

Mike Dahl

taking Morning. Thanks for my questions.

Tom Hill

Mike. Sure

Mike Dahl

where right major weaker. us just are because the deck follow think you're like-for-like some some and slide not seeing you maybe and I may of sense seen Can of it sounds comments a relative markets you've up want us the just to in rundown of the I pricing price just pricing play, put, current state on like kind in markets. growth of seeing you get in Can strength a give some markets of -- conversely on be most the most I still which you now? think give

Tom Hill

we markets, pretty increases, adjust at I year. you consistent saw we've across if footprint seen our mix think price the majority you if Actually, And of for pricing look it. the vast

would mix where that little weaker adjusted of it's California. think been a be recent I basis, a on

concrete going. I And still itself. and what little between that that's our implemented We was as think We But April bit what expect June -- our then of and it of we but that from with had quarter. really second implemented issue, clean was not X. really that, footprint a the see pretty was said, and price mix in that But a talked stone January I catch-up, across one about consistent in out -- we're been the now last or those across into had it's headwinds through. consistent letters went think conversations of over But pricing. those places and those a forward get conversations go having, all our move the And pricing I look really to as we segment any forward as 'XX. think conversations because affect I easier footprint, in have have as lot that month, don't to that us and the it has to We will shipping. aggregate everybody -- in not I across the was visibility in a pretty And it's of base pricing issue. we correct would

Suzanne Wood

in I an improvement we we've of well. we've one single as comments, earlier that, if markets seen profitability across those said we footprint, as virtually it's also, look important the unit in every also And to think add-on the

costs looking the and combined is cost were effect of control there you're increases price what flat since year-over-year. good at So our cash in

Tom Hill

which consistent. is I shoots really think highway economy point see green to has across that to is that most is I've we market our wants weakest the and -- and start get res almost The behind the us, Mike, pandemic. weeks, we're to last for the this are to nonres see we XXXX, in revenue start. of growth, our one important I think nonres, is sight. few thing -- the an XXXX, great. are there that and doing talked out, and conversations, the division presidents the election to be to to and that just fact wants place. in end I see confidence Again, encouraged been the world start a And footprint, pretty the And in that got think in confidence over the is going we've that getting I think better Hopefully, will starting people

Suzanne Wood

sort it sector call through today. some with respect this last holds -- projects what's dozen and -- true go unchanged. of have-nots, of as I've Yes. list you here a of talked up I down we center won't look about to nonres, got on or across haves what's the and It's and of it's have And data so a those, and because I relatively kind still business. of But think all related. we are that what's the our

are -- that in we to doing earlier in centers example, Google, see all centers work those distribution spoke in continue represented to Amazon, warehouses strength our we're it For now. from mean, the in Microsoft, I remarks, but data we're Facebook, right we and names big

Mike Dahl

to Thank all the That's Okay. for you good details. hear.

I a The just concrete. second guess, asphalt quick to one, shifting gears question, and

were a think and both it's your how shaping called just I much wildfires, you those of but numbers some in as best of were weather like regional out associated weather. issues having know also but impacts could those how businesses I with pinpoint wildfires on were give this, October? guess tough up or overall to sense

Tom Hill

Okay.

excuse -- and private to a more public-driven I'll them is more So be private-driven, but going remember, driven at more to take asphalt me, going is concrete one time. be

it some Our in down big in Northern fires we help repeat. volumes markets were had that us. But didn't and didn't didn't there help asphalt, was jobs in California our us weather wet asphalt and XX% --

profit our think, I savings. and cost million. driven said, AC that by, X%, was up that liquid Some pricing big jobs over gross in Nashville was didn't That repeat. being $X.X solid control, And good

I be think by continue we to asphalt. forward, looking encouraged

rain and on highway fires, of timing some combination a big it's So just work.

extremely obviously Northern have really volumes because weather If in That you a of nonresidential get we California. being hit. wet were There's impact did D.C., we we down look concrete, construction. in XX%, said, our COVID-XX and cement and shortages had then

that So think residential we'd I Northern as help be make us and to got work in forward. And march construction think to I California as up. that will definitely we about we as forward, Virginia look Northern the nonres encouraged in continue will

nonres we But of the I volume next performance. see from challenges concrete. couple some quarters, should a on perspective So think better

Mike Dahl

Suzanne. Thomas, Thanks great. Okay,

Tom Hill

you. Thank

Operator

Deutsche Our line of next question the from of comes Bank. Seldon Clarke

Suzanne Wood

Good morning.

Seldon Clarke

Thanks. morning. good Hey,

and parts has guidance? how headwinds the in of relates quarter Just pricing it transitory the maybe you trended your us what's about. talked just some given to pricing And full in assumes you a as all Could give the maybe third year moving sense October? seemingly just in of

Tom Hill

been change I direction quarter. answer going So don't year of cadence of seen see I this lot what I we've way, going. the we've of this -- we're fourth the would variation a see in that what to to in wouldn't the question pricing anything really versus expect

Seldon Clarke

like through the -- So not XQ? you're first talking three to -- for the the the -- quarters,

Tom Hill

versus happen in I don't to lot in going see fourth the what's year for Yes. a of we've done quarter. change what the

Seldon Clarke

tougher. little you year, volume is historical rate year, bit talked with ton, under that your OpEx then gross is profit growing line and also in cash obviously, at so per some about diesel, but it And a growing per X% Got just Okay. of looks per it. ton historical sort from like in with help rate line X% of per

things of side, get do and don't here to half potential the fair from of the improvement ton the show this sort is profit is if diesel expect then XXXX, assuming worse relationship or that Or it there cause stabilize some on meaning to significantly in either start nonresi So might OpEx offsets some from are cash relationship per perspective? differ just XXXX, a gross same in flat? to back

Tom Hill

going deals –you with last at the deck, we of tough on out can to see And the slide could us. so growing, the in was slide with If over think That referenced, per Suzanne probably our it time, in potential. to profit In on is were it what's disciplines you the early like ton. we're those the in I times, look maturing worked been it's it strategic the allowed good our all that was disciplines volumes is we deck, I make which gross look you cash or three stages tell up we've they're our whatever strategic disciplines you, and And it the now, when times, times, we years most but particularly last those working. would us place put us always, get. felt in as we get in to of that in would and allows live over hard in still seeing reason implementing them right fairly the at and what can -- world four those good maturing,

cost see in or whether growth. or now hard volumes answer work. going plans good do those impressive price got to we that We're it's operating we've disciplines to have What's to now. this work and question do. what budgets, those just XXXX, volume think you or to and And and the just is through or right last see year And consistent growth I me that trailing have about that's of you do. months unit XX that's to so the months And year to And in down. gone margins three

been the back been early That's accomplished some they've look really think to and tell at look tough too with that, excellent volume. Volumes we've history, with with what's you, headwinds an teams done you particularly pandemic can So and of last can call, to three a to to consistency, I you you margins. over can look quarters tough able regardless do at to but I'm In got of at extreme unit got when and and you our I've and hats weather. proud my tough it's them to job do And that particularly, that. do. off improve tough

here improve goal quarter-out, month-in, year-out outside to is margins So month-out, year-in, happens forces. quarter-in, the those what to of unit regardless

you give doing you when premature To things be can easier go. We think as improving. a give lot we'll the we that a obviously, planning. So about February we're clarity But are of in number to right where now would

Seldon Clarke

Okay, I the appreciate color. you. Thank

Operator

Jefferies. next line Our of the from comes Phil of question Ng

Phil Ng

morning Hey, good everyone.

Suzanne Wood

good Hi, morning.

Tom Hill

Good morning.

Phil Ng

see your back could thinking in XXXX in the the grow in that volumes? Good side be bit can actually shape morning. a understand to nonres. really up next through you us of you bidding in Hey and September, picking we Tom, up help public October pick lag the about But back on you to of a to the year, half flow activity terms it's little when in And year? when the hear encouraging start to letting start of position starting

Tom Hill

I all, I think of first too profess that year, that -- would tell. next to early

in the stars in even importantly, XXXX there's got work than the of line But big -- of possible and more the bid work, of you timing growth and bid getting I timing with that and you're half, lot up, and a started. highway if booked nonres lot big half. more about work a think particularly to if talking front volumes it's back lot of see a in

would tough -- we've growth think we'll XXXX, those it's stars have think know all getting to but line on all that that I don't we're difficult so to think difficult. put in not again, I together. see impossible, answers, up be it's those we volume it I And working and to got

September, up first highway pick but work that four as overlays, strong I being months, are August, from December lettings on think, then scheduled the -- and based they months in October, as picking get up think not half. it to go letting we July, I and said, of to November, if to anywhere in sequencing would I got in the with particularly work, they've but faster. usually. nine you tell -- and can can Those jobs the

no the nonresidential, the the to all sector of in at six in pandemic would look XX -- told months, we'll because in to and done. And those seen that of gets have well. been that, as shipping res seen you and I timing see as you XXXX is has although it's book, improve, If I question what but we've -- I the there's improvement going think place. mean, to to historically, then confidence it's move is and that the think always I of think great the Again, so private going. market, above. encouraging And seen we've we've work all is exception quote, far the I going work over but be some

Phil Ng

Got in in it. we even and the great muted appreciate And saw your or standpoint, then downstream we your business mean, certainly do all business? about how next pricing the is from financial it's they're business? softer year, ready-mix inflation, But aggregates a in demand asphalt crisis. your weak, pricing demand start pricing, we I great little I mean, if whether power got What if can you a is concrete think markets. about

Tom Hill

opposed can as point around AC. asphalt asphalt take first, in because you I'll margins I price pricing would So with with to move unit to indexing liquid and just

about liquid able called the put ago, a planning. I we're planning unit AC. margins. year doing liquid that come again, And I and to as seen that, have As savings we've the the down, numbers we've to not talked been -- way we have think on

that got just I helps. on work. risk on in to the everybody that you've that growing and aggregates asphalt construction DOTs to visibility to the that and better able Because be revenues, some and gives fact headroom take clarity think on with improved price

barriers unique are to in, throughout, abnormally Napa high market entry. and markets unit concrete because So We've market in and -- the pretty -- margins of encouraged the there. the markets DC have concrete we're consistent D.C. because they're Valley

that see will and think res we -- unit improve. It and do continue, see improve will hopefully, we in to I margins volumes concrete as as also nonres so the And sector. help

Phil Ng

Thanks lot Tom. Okay. a

Tom Hill

Thank you.

Operator

of from Garik question next the Capital. of comes Loop Our Shmois line

Suzanne Wood

good morning. Hi,

Unidentified Analyst

This is Garik. my for Jeff taking question. I on you Stevenson appreciate

Suzanne Wood

Sure.

Unidentified Analyst

just what wondering on your provide M&A there's expectations in in could changes is one any I'm what you're environment. an on if the -- are seeing first update regarding just XXXX. you The been

Tom Hill

I still looking there. mean, -- the far behind think, projects is us. world -- early pretty we're the looking we're out as -- think And at I some I the worst, Yes. It's as freezing, we're as always, stages. seeing

think all that unknowns just with I pandemic a on is wet that. the blanket do the of

think clear, gets pick will that I as up. this back

wondering we'll back yet. sellers planning up. change on budget XX%. and maybe slightly pre-pandemic Florida to see -- story. it. in strategic always, we'll story family I think think time if Yes. how what for unless would not you you, tell that perspective. That's levels planning sell I me and about a acquisitions. be Virginia for those as I But from Florida, good very the you from it, don't really a it in game. to to are Virginia's going is whether flat look be good for personal just states. I seen right, fire been when be you and is seeing budget all about any kind and is the the is Tom, at you're then, hear don't a was some succession missed could a time, Virginia has I And As or but reasons, so good moves, mentioned in And disciplined news any Florida, Got up pickup, helpful. update DOT perspective. budgeted we we've And talk we to provide of those

in Now we -- year had the taxes gas in where and increase that's this Virginia.

from by been along that Virginia They're to path, will not though that expect would Now be revenues I yet. so and and hopefully they based approved in proposed the it us far approved in so the see supposed budget. budget in and at haven't growth going on think -- revenue But good, to do even budgets XX%, but okay. is 'XX to the the Congress Virginia I 'XX continue lettings January, to has so

Unidentified Analyst

thank you. Great,

Operator

Thalhimer the from line comes question Davis. of Thompson, next Our Adam of

Adam Thalhimer

Was helpful guys. Hey, -- the the Tom extension? that agternoon did actually what's Act, that? the Good FAST you, for postmortem on

Tom Hill

extension, yes, about best what decent months. needed sure. an for we Oh, and we had talked -- we wanted the of we extension that XX and that a in was And that's needed term what

happen they clarity the through and to quarter-to-quarter all is, what So don't fiscal can't big going what they have jobs know because they which that and because to state allows year be DOTs need, it it their XXXX, allows is what's or chops to going month-to-month happen. up

balance that support, funded And the of as with the new come election, that was and what get remember, FAST allowed we And new from have back parties it's the a time, much was new bipartisan was power better we extension new -- think through XXXX. about earlier, passed I the in highway both bipartisan bill Congress, talked what the we is I the and extension senate the this when in saw support. Act. heard will pretty with passed that note we've same important as to of passed house

in the new toward that's favor and that both already subcommittees, the why got bipartisan, by our got senate, be some that been some done bipartisan, drafts. doesn't we've that change, of that the in because house balance there's a may said the bill, substantial but of work fact draft not So and a we've plays we power that of the

to of now pen. it's opposed new so negotiating and having a start as the to tweaking And with matter over

when we point, they at it solid because and pass bills that potential support thinking with get So the and of highway of we're the quick FAST the was a the this Act. start extension we foundation pretty intent bipartisan

Adam Thalhimer

have declines start then on And I going. nonres? in actually downturn that when actually way Because the think 'XX. real is been nonres would before recovery 'XX did the the guys Okay. seeing you nonres, indicators in that in volume

Tom Hill

COVID-XX. the down somewhat go like we've and April. March, sequential saw in was by leading then obviously, like we growth seen some and of rock. it, what immediately, impacted since So a seen sunk of gets it -- choppy or we've coming coming indicators spikes nonres, is And What it out

way as quarter. the we lot see, also a of second we You'll about, saw jobs back talked push in

some again. in Some came those back got the pushed quarter, of third

in is I to stopped. been and and you if nonres it volume the be choppy, it's going June -- So quite and remember, of that's has dropped this April, drop, that volumes the gotten majority in kind it's and came May, -- then of yes, think, it have never Residential, sector. zooming hit year, back in

is hopefully, as on way worse we've you're behind still are still us. nonres So shipments the the got down. some street, But down, of

Suzanne Wood

end -- just of and beginning back I'll if the kind February, of of to nonres the the go through add to XX%. of is that sort were I'll our really up starts year little Yes. you a on the side, color year-to-date X% to

we a was after June, got that moves month it had in ahead COVID number number surge decline it similar improvement. was like issue. of by level you was -- somewhat since of by April's of for about it And seen August, cases little bits dropped a -- we been out clear when seems about see Actually improvement. a the of as we've perspective. here June, there. starts got September, and be that it So little performance to good COVID-XX seen sequential what of to starts the time It the back. the and we it's that in to a July, of said, And bit got going April June, half Tom pretty big year, May to of then the a and into XX%. from going the was Those we while And looked a

this, why back still by that's dies pop the those quarter, down up. we of and bit, when we COVID, cases begin to starts So and see said number the stand last surge you a

I think in there's construction. we of just because nonres lot there of need -- certainty interest a some few I think it months a

a little want I more just bit certainty. think people

Adam Thalhimer

you. Great color, thank

Tom Hill

you. Thank

Operator

of next Dudas Michael Research. question of comes from the Our line Vertical

Michael Dudas

afternoon. good Yes,

Suzanne Wood

Hi, good afternoon.

Michael Dudas

Yes, good afternoon.

backlog the is able was more prior your the in maybe side, or distribution seeing business, out a investment in is centers the that certainly quicker and where there calling of change distribution and of what market-type toward that helpful center big the your have from as intensity aggregate XXXX? warehousing, others you to percent And we're -- with certainly, out opportunities? the muted it state relative that's been have the it to use some from -- Following data nonres pandemic? that a -- as is to And How mix called somewhat is a tech on that be end certainly, of up Virginia, to positive -- like market the been guys. in and does of the big size to

Tom Hill

Yes.

a some I As that head, dozen there's booking sure of warehouses Suzanne earlier, the our booked I'm my projects think in and that just over can process we that distribution footprint. mentioned or across of in either of we've more. off And top centers were of ones the got those are

Dodge of an market. our of as of over very positive construction predicts very be said, backlogs. centers years two had where construction we new will and in our those a XX% good on that future distribution And look it's on will because impact our warehouses backlogs, that all are and of So we the the that are, the where on impact next

be not the years. great -- for is to this So of this come couple next demand will

pointed is it. out, you wide by flat. and it It's encouraged we're So also, as

is it more aggregate So intensive.

about If you foundations more has those, intensive is the in for those concrete. warehouses where think It's what lots and to parking go the and you asphalt not base pour high. into in of

-- more -- intensity construction the end total me, of aggregate than nonresidential the total nonconstruction high intensive the So it mix. is excuse on somewhat for aggregate

Michael Dudas

that. Appreciate a sense. just makes follow-up. And That

states, maybe might the a from downside to better upside serve? maybe overall California surprise and the better there Tom, you what Is think be? generally, opportunity and maybe California, relative to certainly, opportunity a major XXXX, all in in what do to other pandemic surprise Just expectations out looking and and to the XXXX relative your the some 'XX issues the you businesses to in there's to or

Tom Hill

to earlier, 'XX Well, we fourth 'XX, California that wildfires. I rough, the you're volume into the from into in going with quarter think, said think see I experienced terrible based push and as I on quarter some third

it While from and got production. the double wildfires we business, power it tragic, outages, cement of hit because business curtails were the curtail our also

get market. It could gets to nobody enough cement -- was doesn't the That everybody go supply pushed away. just demand back. So

is do cement that -- availability we the have production catch-up think I just some and coming So or last back. in now

and that XXXX, help of So months first and couple of into while you're shipments push year in the the of it quarters in some couple -- will have the hurt of of the this last to going all in of XX% it think, and paused between 'XX, some reasons in while 'XX. has the month -- construction, got are one up, I just XX%. and roaring talked over starts Residential trailing the about I by come also back

be You and will Caltrans, that the control. things revenues with that from X% demand news the up the the couple --

Some that and will asphalt. help aggregates

a the view in other many nonres will places, we lot and give our in in hit, you you and get so of hit, be giving to As has to a and got -- that like February. we'll -- and clearer that really for got XXXX. projections that when -- we And it's it's we're taken hit, California feeling that's us unknown from a that recover

Michael Dudas

Thanks very much Tom.

Tom Hill

you. Thank

Operator

comes of of question the David from next Our Research. MacGregor Longbow line

David MacGregor

projects first start just question. from just that change the for and Thanks come of better in perspective out as just of question, the half. previous address you taking volume question, afternoon. VMC could want get what infrastructure a the to and And terms XXXX highway to likelihood than good to Yes, part bill. XXXX? you by gave on stage early I second of bill could new how distinct that does think your to in an an through maybe revenues? extent But shovel-ready just in half that how talking And my the quickly the into answer of you that guess about I bill and just growth there asking administration, just profile infrastructure about volume through as is the maybe

Tom Hill

in to infrastructure our lost focus is So I think a major not is get bill. really

is a highway thing important The bill.

the important part may -- infrastructure and Act, work then moving senate category. bill, And and of this talking bill is, that extension have federal the a the forward. about on of Now to but been infrastructure foundation of broad that's piece the the really larger house And we're highway got the is federal highway we the both really bill, bipartisan I'm a FAST a is in and be done that's it's what the is support.

a be Now into rolled could infrastructure that package? Yes. broader

I think it's a bill. highway more as likely addressed that specific it's

the been and a analysis the that or talk now beginning over the congress of months, the Hopefully, new the is before the I about anything -- of there's of it from will separate do include in talking package. lot stimulus be and additive we're Now a whether stimulus year, somewhere congress, funding, is end few think about. infrastructure stimulus discussions next will that you get to that's some XXXX,

David MacGregor

around way any Just expectations share Any is that? your could you sense that? size to there

Tom Hill

at There's -- think I this we point. don't can

If you of look it's tough to there's from you I at conversations, a lot the -- to think and timing stimulus magnitude, do, perspective, -- call. and that's a if hard

which and bill out funding to house the would because and at drafts have this. XX% a at the range. of showed of out authors how those that we a of good gives XX% from momentum staff highway in place If that back thing of And came look of some authors We with up of that And it. the subcommittees I has bills look the you of don't idea with paper so start doesn't at about -- pen thinking that that the bill, don't were piece bills history, kind we many and is new draft been that senate back in you came look of those some start are new that a those X. still and --

funding revenues. we highway Now it. seen have states takes matured or you that to not as would said, we capabilities a versus the FAST passes what I have expanded of I would Act years work hope in in improvement saw their what that new saw federal dramatic because of to big the their the shipments capabilities tell to the It with to that's those saw and we've being new state into into in XXXX. the quicker will can Hopefully, year impact states Many they we that get states, and jump it broadened at put our funding. And two to in the bill with than maturing work. increase the handle bill that XXXX funding. what a least

David MacGregor

Tom. call long Okay, it leave there. Thanks

Tom Hill

Thank you.

Operator

line final from Field the Ouyang Our of of On Investment. question comes Xintong

Suzanne Wood

afternoon. Good

Tom Hill

you. hear can't We

Suzanne Wood

may I you be think muted.

Xintong Ouyang

Hello.

Tom Hill

Sure.

Xintong Ouyang

questions... some have I

Tom Hill

cut you again. us sorry, I'm out on

Xintong Ouyang

Sorry, can you hear me now?

Tom Hill

Yes.

Xintong Ouyang

Hello.

Tom Hill

can we you hear Yes, hear.

Xintong Ouyang

now? hear can But you Yes. me

Tom Hill

can. we Yes,

Xintong Ouyang

Great, thank you.

a I thank So -- for question. question my have taking you on

the recently The European in aggregates can yes. is question my take suggested concrete. So to XX% -- of President virgin recycled that Cement Association the of replacement by that up concretes content aggregate

in it you Europe, to the an thinking business? as of as well wanted an you in what future, for opportunity? environment of in we're of in especially it? think a U.S. So where is just probably think actually you know Or and the recycling aggregates more do it threat think as Do getting important

Tom Hill

Well, I Okay. construction. Can years, part mean, you for the okay? has me recycle integral today hear an and been for of

in business limitations from a it's has end it part that recycle been does those For the today. years, construction of perspective of and quality but And or a concrete. part have both materials, whether is asphalt a users,

And threat. it's part We integral are overall in that it of we're in of thinking that and was don't see reality I business. business. it's today just construction, but a part business, an the as I in

construction materials. of part the of core it's So

Okay.

Xintong Ouyang

you Thank Great. Okay.

Tom Hill

you. Thank

Operator

to question. final additional turn our was Hill any for that remarks. I'd And Tom back to or closing like floor over the

Tom Hill

interest you support your and listen you, Vulcan much very operator, thank Thank We time your of the our taking for call continued to appreciate all of to today. and Materials.

healthy, we in we keep As the safe. to stay forward, please weeks. forward talking Thanks. your to look really look And you coming families

Operator

conference and does call. conclude today’s gentlemen. This Thank you ladies

disconnect. now may You

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