Martin Marietta Materials (MLM) 29 Oct 202020 Q3 Earnings call transcript

Company Profile

Participants

Suzanne Osberg	VP of IR
Howard Nye	Chairman, President and CEO
James Nickolas	SVP and CFO
Trey Grooms	Stephens
Kathryn Thompson	Thompson Research
Paul Roger	Exane
Jerry Revich	Goldman Sachs
Anthony Pettinari	Citi
Stanley Elliott	Stifel
Garik Shmois	Loop Capital
Phil Ng	Jefferies
Seldon Clarke	Deutsche Bank
David MacGregor	Longbow Research
Michael Dudas	Vertical Research
Adam Thalhimer	Thompson Davis
Adrian Huerta	JPMorgan

Call transcript

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Operator

Good morning, ladies and gentlemen. Welcome to Martin Marietta's Third Quarter 2020 Earnings Conference Call. My name is Alan, I'll be today's coordinator. All participants are currently in a listen-only mode. A question-and-answer session will follow the Company's prepared remarks.

call on recorded the today's available will reminder, replay for Company's a is and being be As website. I over will to call your host, now Ms. turn the Investor Suzanne President Marietta's Osberg, of Martin Vice Relations. may you begin. Suzanne,

Suzanne Osberg

you Good With Financial Executive Officer. and call. are Officer; for morning, Jim today and joining Marietta's Senior XXXX me and third Chairman Nye, Chief Nickolas, Martin Ward and earnings quarter Chief President thank Vice

forward-looking forward-looking otherwise. future new future statements laws Securities which today's As with and future statements as on that by whether risks to undertake and may refer to a Please Except earnings legally SEC results filings both reminder, financial Commission website. securities our with no disclaimers obligation today's resulting developments, release information, and differ actual any United businesses, publicly is as or in contained or results the required, the include connection other Exchange revise Martin events, update discussion legal operating States to uncertainties Like subject we other cause in the available materially. and defined performance. from are own could or Marietta to

the have financial QX this We during and Relation summarizes webcast website, available of section results our XXXX on that made information trends. supplemental Investors our and

non-GAAP streamlining our changed earnings and with SEC release structure, any defined and July comparable our in in reportable reconciled operating today connection our addition, measures In are we directly filings. discussed measure to the segments. GAAP most our X, also Effective

West and now significant reported were Southeast business no and the operations the changes. previously which had Our Group, the consists East of Group, Building Mid-America whose groups, in Materials

Ward revised market reporting now provide reportable and Ward position, our Specialties Magnesia will as third and have trends year comprises begin review and our Nye, earnings Ward. call this XXXX. results structure. new who then will to Jim In our some will over with our with A prepared performance quarter results will the conform question-and-answer move discuss will session addition, third closing operating segment, to prior I Today's financial the call liquidity business follow toward turn will we comments. then Nickolas been remarks.

Howard Nye

We you for for your Thank you, joining consistently families our business teleconference. to are and and you hope healthy. financial, Martin strong safety that thank safe performance. all company today's provide execution excellence to operational and commitment sincerely foundation the and Suzanne, deliver record Marietta's operational and

and the depreciation today's surpassed to in or nine mark. and increased new release, records for billion gross months profit highlighted $XXX safety adjusted As million we profitability before $X first adjusted earnings interest, XXXX. Year-to-date, the established EBITDA, taxes, amortization, of and

achieved Marietta's and We time safety history world-class total performance the levels. company-wide exceeding the best have injury with lost in rates incident also Martin

lines mitigate all and pricing product third shipment COVID-XX driven For the by across anticipated cost increased help management the declines quarter, disciplined pandemic.

expenses industry-leading SG&A Third a compared quarter and included, demonstrating and gains, cost to control. financial of the focus total our XX earnings to a business reduction revenues gross EBITDA XX.X%, prior-year points basis resiliency percentage of share X.X%. X% diluted as or and Selling, per the million non-recurring an points million our with XXX a revenues, $XXX administrative in consolidated increased despite record highlights basis general was $XX of was $X.XX. of inclusive period Adjusted improved on as margin

economic For well the environment, who our to a These employees results clarity, cost per talented as steps the we've today's dedicated challenging public testament diluted health are non-recurring share. taken and as gains managing and through $X.XX company's proactive the to are contributed adjust profile.

robust nearly prior-year versus performance, aggregates a operating quarter X% declined third our of review a for comparison. Now, shipments

Group down Group the widespread COVID-XX East down our shipment the footprint declines States, United were As experienced X%. with across West the disruptions anticipated, given the X% across and

wind residential Carolina, line Group from weather Maryland. the a infrastructure resilient lower North North distribution in average reflecting delayed to and shipments The West Wet and impacted were portions modestly. power. infrastructure strength market In X.X% Group in a non-residential on weather reduced higher with our shipments increase Georgia, in increased priced mix-adjusted percentage Iowa, of West shipments Aggregates both macroeconomic the activity yards. trends, Additionally, broader improved Carolinas, in pricing sector declined Carolina region, slightly and key demand By basis, in the East anticipated product with Florida, geographies energy to selling Group impacted markets this the projects by Iowa. price shipments posted aggregates East X% Texas a and energy selling negatively shipments. and of average the price Group declined, lower shipments lower Indiana of X.X% or pricing underscoring lines Georgia

see in average On Group price West mix-adjusted to continue attractive We Texas selling and pricing nearly Colorado. the both basis, X%. a improved

X% of for As Underlying and remains supported a anticipate demand diversified full reminder, business XXXX cement Texas-based project to aggregates by customer year backlogs we our large pricing positive X%. growth activity. overall

Texas energy Third lightweight pricing our pricing namely Reported cements selling cement bound overall quarter of decreased core however, while reflecting increased headwinds. products, X%, period, specialty prior-year lower growth. impacted shipments Type oil and $X X well X% disproportionately the for were cement X average sector shipments, cement over continued West Type cement and up for prices

ton. reminder, a can per for basis, over On $XXX pricing specialty sell a As X.X%. increased overall cements mix-adjusted cement

this hindered decreased was and quarter primary Amazon in Turning from from Division's shipments Colorado quarter Southwest large shipments excluding Favorable there. construction XXXX concrete which weather robust targeted continued Colorado performance by from Arkansas, shipments driver Texas favorable shipments was businesses. benefited geographic Ready-mix Texas a By on X% and Louisiana to our the the divested mix concrete shipments and increase wet acquired price. activity Eastern business third of in contrast, Concrete activity our X% downstream weather. earlier year. we third

the levels Colorado for record prior our decreased X% period. shipments in year Asphalt near paving business asphalt and following

X%, of higher increased pricing specialty mixed percentage sales. asphalt reflecting Asphalt a priced attractively

lime business, Specialties and June’s from moderate chemicals Magnesia demand steel the rebounded our during began to in weakness as quarter, utilization trough. For

We balance year. through improvement expect the continued the of

Jim I'll quarter discussion outlook, call the to review turn over our third to Before preliminary of financial now Jim? our discussing XXXX liquidity. with a conclude and results our

James Nickolas

Thank Ward, morning good to all. and you,

lower the revenues and gross a $XXX volume. of gains, For margin XXX resiliency cost Aggregates cost of costs $X.X decline. was in product year growth business contributed our delivered X.X% lower quarter, revenues, lower adjusted unit results flexibility products have profitability. the Strong business business. Cement fuel profit margin product of the management reliability a aggregates-led XX lower all-time investments despite Despite fuel tail disciplined basis services record a and mix and decrease billion, prior decrease. year basis X% benefited aggregates third XX.X% and expanded and cost shipment improved These point XX.X%, gross Building pricing to from Cement an X% product gross and Materials prior that demonstrate period to million, diesel the throughput. the from point

ready-mix margin For our the gross attributable, raw concrete businesses, X.X% higher material. to XX basis, downstream cost declined product

lime X% point paving and revenue. and products. third gross Specialties million lower demand chemicals Asphalt and margin revenues basis record for product reflecting achieved quarter Magnesia profit $XX improvement million to decreased $XX a lower despite of XXX

and So gross point revenues a XXX to and decline XX%. resulted basis margin fixed reduced product absorption in cost

non-recurring not in sales Our divested and extrapolated non-core should other which calculation. consolidated of gains net run-rate recorded in are income million assets. results on were These operating and a included $XX surplus land be gains, from

we As surplus sold operations quarter. for a land that's not nearly this of proposition sales were of in and contain was part used have reminder, did see TXI value XXXX, Since assets. exactly land you million acquisition the excess $XXX not of operating and our what that

$X.XX adjusted inclusive exclusive While range We gains estate achieved margin non-recurring both as we we expect XXXX. in the billion the gains. sales, opportunities to Marietta's develop. timing full anticipate the of land cannot future highest non-recurring of We adjusted predict inclusive previously to non-core favorable $X the Martin billion million discussed history, additional and real divestitures EBITDA year any for $X.XX from EBITDA of

Now, and turning to allocation capital liquidity.

balance to maintaining priorities and a healthy balance further business, preserving capital We longstanding continue while grow our shareholder financial responsibly to value. to allocation enhance disciplined flexibility sheet our

and while capital return we a complement priorities August, profile. ready-mix prudent an our our grade company expand in footprint operations rating existing credit focused and base. organic geographic These consistent In value-enhancing acquired capital shareholders investment aggregates of on Our our concrete acquisitions acquired Dallas-Fort remain and Metroplex. to maintaining investment and Worth customer

and also cement aggregates to We our enhance value. upstream incremental throughput drive

from full expenditures have and $XXX million year it We widened million. range to $XXX to our now expect guidance capital

repurchases in billion We are announcement pay repurchase have otherwise on sustainable returned the opportunities in a dividend. additional our to year's sales. exploring that through taxes defer land authorization we we $X.X was share Since this of would combination shareholders sizable XXXX, lifetime February meaningful, exchange

paid cash generation. a in and of quarterly Board increase continued in approved performance our dividend September, Our its underscoring in confidence X% Directors recently our cash future

Our annualized repurchase cash now the is $X.XX. quarter. activity remain temporary dividend pause rate Share during

continue we to market liquidity, commentary back flexibility can With repurchases preliminary resume of over our the balance confident financial end for remain leverage target range billion debt-to-EBITDA X.X at With our his we our turn times. that, and times, to XXXX. I X X to management's in a will leverage trends of of With at However, sheet We total ratio discretion. low the profitably the Ward retain $X.X lower were our strength grow to and for liquidity. outlooks ample call business. with

Howard Nye

have Thanks long-term pricing key prior this growth with and data daily will offer Jim. since shipments specific underlying shipment how average that levels. year upstream dynamics our our secular intact. remain favorable our downstream seen on trends out, businesses and July To We're and continue attractive notable above is confident will playing color that across October improvements fundamentals that it's lows geographies some both trends in

in currently the likely product remain trends, will optimistic related spring season. the XXXX of we half While will and cautiously uncertainty strong. pricing demand will we about winter Keeping first modest through through these mind, persist product COVID-XX remain that believe and we're anticipate

With well onset. highways, that and the to Recession. are than continues Departments primary the use at sales from accelerated and from bode Great single-family expected condition in availability aggregates undeveloped these We're shortfalls trends indicators seeing We Transportation As resilient. intensive surface disruptions, cycle Infrastructure end or resets trends recovery. steady markets but by better housing experience de-organization. for intensive be for including and for and economy activity, slow streets more as gas and expansion, historically State support should a across robust favorable needs driven our e-commerce support workforce support interest heavy multi-year federal macroeconomic key work and remote geographies, bipartisan activity reauthorization, industrial long-term to rates during hourly three particularly aggregates the anticipated, less transportation longer-term pandemics roads of the revenue than construction-led originally low tax DOT believe the COVID-XX conditions, and encouraging such U.S. budgets are recovery construction

XX% levels suspended for earlier are For temporarily example, Colorado September certain XXXX DOT pre-COVID-XX XXXX currently year relatively North awards an funding DOT and at the lettings. work which comparable of scheduled response Texas and transportation for fiscal other in planned bidding X factors, fiscal year Updated letting indicate DOT flat to upward revised Carolina increase for schedule $XX over issues XXXX projections billion, lettings resurfacing began spending this its month. and resume projects for recently which

XX% states Materials these revenues. of reminder, a As three our business over represent key Building

FAST the construction this front, levels transportation or design extension the and provides Act at consistent our continuing funding Transportation with law view, governments, expectations. our through state visibility resolution the into to let season. projects XXXX Fixing was America's Surface and signed In a that needed local one-year which federal plan, current at the On the included Act a President recently

volume future, the House expect States to the be surface industry aggregates federal reauthorized of mid-XXXX. Regardless to more Over funding have underscoring shipments outcomes, remedy transportation upcoming shipments and Both stability average. the surface us investment, of infrastructure. crumbling federal by provide and XX transportation Notably, we XX% long-term toward package it we infrastructure to medium from of enacted advanced years. election anticipate Senate total both in those benefit the comprehensive nation's highway which legislation, passage historical to support our the a federal transportation in sizable drive than provide bipartisan increased the our increase will XX-year United the moving first closer should

market XX% to For reference, of quarter accounted shipments infrastructure shipments. third for the aggregate

non-residential aggregates challenged construction long-term should is COVID-XX cycle, Although scale certain paradigm commercial more growth. the e-commerce and construction technology, aggregates are due non-residential diverse driving shift remained the of the heavy trends remote a Accelerating near-term, previous of that by increased sectors data projects. in and from in work and industrial promote size to demand require these centers investment generally than warehouses intensive more fueling which

years more industrially non-residential so focused commerce purposefully we major the expanded exposure as be footprint over our shifted corridors. to our or along we've have last geographic Importantly, XX heavily

this existing move demand and construction, Southeastern non-residential those homebuyers our metropolitan Marietta to are housing commercial the trends according of metro These to accelerates. state to large market from also strong the city provide experienced footprint, extend most despite in smaller at Recently, restaurants was the third cities in farther residential those light single-family Additionally, secular that Prospective drag from inbound migration its lead recovery along a growth from for shipments. March to development. economic among another. dynamics longer-term moving effects by with population a August the from and and moving with competitive Van should out top areas year, one of from favorable accounted through under is revenues, quarter shipments beyond United or current from organization third as single-family moves North destination number advantage trends. Carolina, Single-family Lines. this our XX% housing largest state data for weak They suburban of benefit to outsized Across include the centers. ranking identified expected Aggregate as Martin the seven Southwestern pandemic. unemployment states opting conditions distinct increasingly

that to infrastructure as challenging demonstrate, thoughtful times a navigating and market Importantly, communities. two the times to efficient given stronger a quarter results non-residential intensity, business the accounted from shipments of to flow new the needs residential value our cash third hallmarks strategy taken deliberate year-to-date shareholder drive housing, and Martin ancillary them executed and of quarter consistently Marietta emerging steps summary, of for suburban generative company. are and but our resilient, single-family position In We've housing three Aggregate third can creation. XX% is and aggregates shipments. multi-family as

do growth prospects to continue growth operator quarter, profitable in well attractive underlying will emerging construction business the seize growth our we that support addressing to well-positioned our best we we're over to value your driving will to opportunities future. the trends long-term on We Manage fundamentals, and the for our are our Martin remains best. in-class priorities sustainable shareholder responsibly, steady the With that and we'll strategic activity ensuring about do for and expected now capitalize in and the bright into of teams, are stakeholders. what the required long-term. provide safely benefit Marietta the fourth prepared turn sustainable excited to If XXXX instructions, our attention and questions.

Operator

from first Our Grooms Instructions] Stephens. question with [Operator comes Trey

now is open. line Your

Trey Grooms

so pretty color. taking Carolina strong on pretty lower your the Well, I my highest and of margins. first also, thanks thanks want North in market dive given And challenged, for one highest to strong, states, the really, mean, for question, aggregates the is especially priced very I and volume there.

that diesel much you on seeing of here business? you how work like us aggregates seems but about more maybe Ward, tailwinds think in could Clearly the And there the cost at you're some the do is so, it update sustainability? and

Howard Nye

by next to thanks No, it's to be to back foot not are Specialties put it's done these stay of normal, the stay we've think down, not down Carolina moral and going numbers, way through Then is a now, right Trey, going is North but is impressive going now, half back year, but but done question. the it's either. to right you game year, tied in Carolina down. not is said, half what the behind our right because for we its Magnesia very as to at this mid going up quarter you peak entirely good arm by North but

our Trey, seeing what shareholders. So you have good impact that one, was as you're is very come two-fold expect we really something come expect and pricing that's to to a and

seeing, separate there. resilient from and think been and surprises team see and very costs, Again, numbers. it down, exactly our to your other is on can one in all we but of SG&A that's you not there of to performing that's through volume. has cost Marietta, it's be It's to distinct focused So anticipate. it I that's would repairs, good we'll look Martin see at that also we're performance on, But to and energy, and be But nothing supplies, what services, I no the double-digits go your really energy it, down in piece new if nice where we'll where contract even the are what plant closed to just relative point, fashion. something in

As in we going in when few we CapEx. cycles. up has We did tend our through gone Great back the At pull Recession, been the were company. years, through the financial carefully you that investment we've our very in Trey, an in truly to time last recall, taken on we've and invest business. crisis And CapEx same the

the cost seeing anticipate. business. our profile, that So other a excellence, would that's across that better the we is And of is what thing important, grown Trey, spectrum benefits operational we're the cost we've way the performance

these businesses you in So similarly, Colorado added when what we real from have and we've done excess done Texas in we've with and what estate we've on seeing expected. what sales have I've which been would seeing you're that enhancing side, this and the aggregates TXI truly and all again led with cost as good thing we organization, performance is it's but have and enjoyed through what really come if the we'd can you're exactly as And Bluegrass, of and because We're as this if show midst and going would down, on to been, with XXXX this performance being they remember the believe with able continuing fly we doing this were agility the their that to be what grateful the have to the I seeing imagine you're so not am in always could year on year is I volumes of pandemic. manage team type need. that

Trey Grooms

encouraging that's helpful. and Ward, Thanks,

So my follow-up demand. product

I at pricing acceleration, more half will remain this you're messaging be a return half first And think you the strong. you volume end imply your remarks, prepared what's modest an in back markets? the next or - there mentioned expecting a go to maybe and through growth does high-level in year, what's there? the look of for color 'XX any to Could your into the

Howard Nye

Trey, that's which and in in say big the is X%. towards half, down we're are single Marietta, largest mean, for I for quarter several is back here another great growth. certainly we I calling quarter question. things. think the would would volume QX, I largest Martin the it's industry, the which

in ours begins for really season to expect, So, is it half one I have little a that's - seeing when would across like rather of a The goes including really through mind, those enterprise weather-affected. very in Keep an year, in in because you'll May next more is tend earnest half quarter. growth. parts we inconsequential in everything volume business are country, There open QX. that be quarter the

comparative So QX would say tonnage. a it's on basis, huge to what be I not a be yes, going tough compare, but

do that when we pandemic trends as back practical should see we're a seeing, to to the some we deurbanization economy ways. QX. the the would will I think, next think went into in of really on help we us year half matter, nicely in the I grow But housing. start As settling get started

going a states, to true and true relative is Texas, true United we that data nice going beneficiary for through those the Lines that because very for impacts Carolina data, And Colorado. and for to matters. and is be but revealed when again, it of Marietta Van Martin true it's I Florida, it's data North same start Georgia, that you on it's think for saw even I

that's something we're think that's into I go we and real, going launch XXXX.

to thing when looks was we that is year. I today half look relative other would infrastructure were than infrastructure say better we XXXX, The thought, lot going to Trey, a

by they handle $X.X today. going like XXXX. we were got in going So, thinking they if large to a for as North on know be they've year work at be half were the state is billion, years in going into back our that stocks, a about look saying they're that June so Carolina largest of when fiscal second these third at in front They half of on be so end we We're relatively calendar at better, get to year even state Colorado, states XXXX. flat, XX. we of the part revenue XX a and Remember it's to were looking tech

I in tale a the be think to think that's watch to is anyone, carefully we stories going to of non-residential. going I it's surprise to be need to have different most use the one end two not going that a And you're non-res.

the are the on I itself I going I'll Amazon mean, of is all that Antonio marketplace. side San right right of fulfillment just a you think good. in give be bidding In heavy area now, it. sense Trey, Greater different it, to we by centers six pretty for

think at built So, we states business. heavy our look going that's very non-res we're have We looking side attractive. in where to intentionally

or So for warehousing going we And do hospitality be data good. that's challenged warehousing, I to is think whether think it's be to while. a going otherwise,

going it's the them see effect hopefully to to we're that buying be 'XX homebuilders degrees not But retail we're a we see here's the and will what see land, and we trends drag and way of of going are going think more in believe but more and energy they the to housing will, believe office be say, as that vary continued to challenged if think for I that well. into portion single-family land I little going a more driven, comparative going of while we're the 'XX on basis would I light non-res. entitling probably to going along

saying when We'll seeing then my I'll looks get have with question those least end to three this February, but October in and we're more October through we to Trey, guidance. your to much We again that, precise that our primary users pretty you now. that come speak do response point. to Obviously, the what we right commentary try last to what go get granularity So is, to more relative a out that at year good. as like results compared data full in trends

Trey Grooms

Well, thing last I for want do taking though. thanks Absolutely. one my to questions. say

I safety you call be analyst out and sometimes think off guys that blasting the dangerous heavy achieved, I overlooked working goes you record this equipment have I investor to business, on community, to the achievement. hats a that by want but rock and around can did so mean

Operator

comes Our Research. Kathryn from next with Thompson Thompson question

Your now is line open.

Kathryn Thompson

First, focusing on the given when XX unusual months? Cement for next segment, year could you for give what say, some this an more over Thanks. segment, this environment, pricing for the was, And pricing? color year look this does on the particularly backlogs needless mean it you to

Howard Nye

No, been X.X%. pricing, is, look, looking year Kathryn at really time, unusual you're if right, what segments cement we're I'd the same but up it's it's an say

great our one that's case. has going pricing strong is If cement, look seeing we in the infrastructure backlogs, some because we're in of on be that So keep it the we Tesla the area bookings like we that up I'll in that would primarily large and at said sold Austin on XX% that's them. stories And property tell behaving we've aggregates. thought job a and long cement Texas something in you backlogs cement mind, that

pricing there. actually was situation looks quite And the pretty So Kathryn. good the good, backlog

down not the tons big is, at sector of sales reality look and things. which the energy pricing the are us, were different amount you XX% for in reality it, are of optics, a two Because the West Texas. If them very

but were small the So tons. But so a a it prepared call and ton. that important reason over $XXX big the that's where in comments, out cement percentage, that's sales we

cement at Dallas, in and those what that and nicely, So year Type very Antonio X back we up next are and we're San well. going X just that's see to looking numbers actually we're as coming Type if and in likely think

Now, pricing $X in have said of that we next in talking and in a take that about up April going we're we're effect now right that to and marketplace letter next out year year. have to fairness, Texas we cement

X been year, that So think behaved of this you and what on I gives sense the has effect Type this how has what X a like. it, mix Type pricing look

The this Kathryn, important because business. too, we is other I'll cement note our that year-over-year efficiency in quarter-over-quarter, continued to have thing improvement see is

call margin So out quarterly you I the EBITDA cement kind of of down, would new what a but XX.X%, record. for in represents volume the is is QX, actually

the we're tons. it the doing doing up ways, on it So We're but way other both it on a costs, little but as XX%. hard we're XXX,XXX getting again over way pricing we're backlogs bit well,

Kathryn Thompson

And on the particularly infrastructure DOTs. then question the is follow-up state with more side,

that Particularly against at of they backdrop are in optimism you, from You confirm North all to that an appears that, states and standpoint. looking you. the important got the behind - continuing like Georgia, worst confirmed markets be have issues, that but you what you of also how into Gulf year? who the is still just other to Could move infrastructure next are along key Texas to Thank and looking key for other for Carolina. for gives

Howard Nye

I'll Texas, Sure. of revenues. order Happy to, in through couple of just things. them One, go

spoke lettings FY huge billion, to going minute $XX.X a multi-year has Marietta. about a we That's have that ago. of benefit 'XX Texas Martin just So 'XX, to

a $XX even billion, funds. their see state in rainy And having cropped up keep of looking members Our to one backlogs that our are in billion tap we're and large What's looking at important all full in into day $X.X product three Texas anticipates currently projected funding $XXX some at coming at million. as in across mind, that seven lines to we is projects XXXX. very none that's

being construction billion additional $X Colorado program. were looks and $X.X more. could So see half we pretty year. flattish again, where activity to expecting. are bond Texas a We that's billion very compared four-year years Two and about an remain by on that feels supported even we healthy provide there what that that's or

in where of where A-rated is started double part last called going what improving. good last that's the specifically just to the what importantly, FY at is, that DOT appropriately million we that lettings out mail to state even numbers improvement some pretty started out Carolina of pre-pandemic it we've very it half - you bonds, rated state over It's they about and So and be North again, sending of 'XX billion. week. situation were Carolina we're bonds. Carolina The $XXX seen a North $X.X - North is nice is feeling And has And week lettings the about and was $X.X similar about of billion of build anticipates year.

state, start. remember, at billion in are top to projects a one, got And lot be Georgia. at a these Florida. looking important Keep and think asked that's very much feeling and better one is we DOT, $XX in their going Similarly, they've is congestion least anticipating have that the close steady major we're but least is of mind, Atlanta. again, so got about is flat program advance key of to. part year-over-year. you they're North Georgia spending a Carolina is at activity $X Florida But billion. to again, primary to the that appears at something we healthy PX to and think in a we likely about not in relatively five mobility DOT our corridors about Georgia have They're there major So there about And of two at very projects 'XX along we're aim in it and that start, very stay reduce 'XX going is in last we're that to what going you've obviously mobility

of just year-over-year, our and top look that's if taken exactly we an again, perspective, five you So we states through the that. I've what looks like infrastructure from at

Operator

Paul Roger Exane. Our next comes with from question

Your line is open.

Paul Roger

is next a Yes, it's of the highway speak there would story? ground, if it potential you XXXX you big also, just week can about say some a the with different And demand well, bit they Paul that the or bill a week stimulus be election, implications as to is obviously, can likely It's maybe think - just new when Roger. you outcomes? on a impact the

Howard Nye

we very House Senate's new by mean change by increase in FAST good that. democratic-controlled anticipate House XX is spending. that and week the in hear largest Similarly, Yes, of few of going going what Biden being for highway bill probably the here's be one are say question. all if can't a to we XX% we we XX% the fact is re-elected, lose next voice. and number, the the Paul, similar over have years. would thanks looking a to If at up think should is part I and I that's is, the that to there itself elected in the President Mr. it's Act White a and highway to industries that increase It's is be the probably your and

actually with regulation. So going we is, re-elected, I are they deal up here's the sophisticated, great up if Well, very can that very of going with more got Mr. it's would President's say, going regulation. it's If the probably what is with up we've well efficiently. do elected, less pretty teams, irony and Biden with it's And they regulation. that

is things there if because more regulatory their If will kind start that you're long-term Martin reconsidering certainly Marietta So tax, what we well-positioned. looking future higher we well. see I at believe, in way, be the often is one drive well, times, as more of of the as higher opportunity businesses is closely-held M&A regulation, perhaps past that environment, - either a

be, way one about around we we that sit some think outcomes can but those going as think of to what the scenarios, well. things and we're Martin here in So, measure, margin, different very Marietta change anticipate could it under large either does the

Paul Roger

opening within fantastic clear. obviously it your were have not this I year you been that COVID. spinning very that's a remarks, the And would mean, inferred

a some if volume suggesting if margins? guess we there go And you lot good. can market, is the get a in Carolina's basically are I where you again like do on XXXX, you all the particularly some more so growth situation stabilized the If see of profitable

Howard Nye

things. think going a say costs mixed end. as I because be we it's heavy be but would not I actually can, quarter, always flex we be to particularly I was fixed, cost, of well. industry, couple will Again, geography, extraordinarily some a Well, of control a think from cost this are a this perspective, them you're at we'd to as One, big going much upper as have as degree much like friend volume certain of to industry's but a

saw what most to weather going was remedy, activity. margin. part robust and significant the this impressive the delays a more NCDOT formerly we and mind, wet in hits in we to and extremely win a saw Keep we've be fashion funding, So, if markets, discussed saw relative lower we behaving we in the Mid-Atlantic could again, And markets be see those Eastern year, these East Division. fact in saw volume that's pretty we it that project

that's don't didn't for that recur look we we happen East our we in will if margins. and So, into very think the think future, the that at continue to things probably attractive

is good have the very thing on go would us. other controlling year we at backwards cost expect would I that say to been I this not The that

on the think have investments will I that our we friend. capital made be

same is tell there the to plus but tied lot piece I has in can sure historically that can't, energy keep are average mechanism served you can as wish, as upward, that's in there mind, at of but selling energy a and fairness, well. increased also could with we a prices, things control in that that to that's we up time, control. tended could of overall make Now energy cover the we I as that prices we move

cost that do going likely is think of deliver. is type to I performance to this geography the and continue relative friend, I should forward, of not a us So, margins, to be expect more they are you to think

Operator

Sachs. Our next Goldman comes from with question Jerry Revich

is now open. line Your

Jerry Revich

tough your considering obviously volumes, a pricing of 'XX. pretty this half opening and remarks, really which in and is of were looking we're falls Ward, optimistic typically at first interesting you back into pricing year about 'XX, half

the enabling on what could announced right? just pricing those if remarks comments, achieve strong So gist you customers the opening the have you you to expand your got of and what's for I 'XX

Howard Nye

if Jerry. I observations would 'XX. that, No, making there on not guess the I'm anything is about was I you say I was what strikingly new sure did,

to I Marietta. pricing that go that Martin we volumes in want thing I just up, go to pricing still primary down, When up, tend we it and good, forward lot saw pretty that could this of thought industries are down volume this the up year. goes think not really come because when was do I volumes underscore with up. goes pricing pricing a something And is line that there quarter that the well way up pricing is in

theme want So underscore. sure that's I I think underlying to that that I make the

our higher the is with actually - not coming the of year, NCDOT. businesses think some one out of we've at what's game profitable their had, to of we higher-priced this other I remember, we're in the thing as that pointed seeing not of conversations of top because Jerry, out

they to as on, price continue the there of because volume, occasion, but is locations. to the lever do I price the end good large to about of we'll about crushed housing at try think And a that's one utilize many think you stone trajectory is them. to least tend because news part continue so superfamily an home, usually we that's of good who actually things up, to the is go not to day, housing see some form care typically not many thinking So again, door, of in the at on you're will we're we a if in well I people about area pricing, quite in talk because home flash the in see that deeply as

that we if in new highway 'XX, see the time not of market then practical growth in very from that, but residential matter a non-res. coming 'XX, we in but along see think see a end think drag like So healthy the seeing volume we the and will bill, of come up as probably I we we the

top disproportionately what's a I spot. healthy us that five I we that you And look to tells are look you very again, overall Texas, the pricing if think and even that all at cement is important pricing. happened pretends marketplace states with for at of in that well at think those pretty

Jerry Revich

normally And describing. is aggregates range. would what we're or comments volume announcing pricing so I'm I this your And in in like, should up based X% environment, like more the we on that, thought have you're in than type saw be it pricing 'XX customers sounds the of the

Howard Nye

some this give we around shaken we'll again, granularity that feel by we you navigating February, the sense those model our the out more overall time But of to that conversations even ongoing. I there think pricing Well, like strange that come nothing has and is again, when still in get you in are world because together. been

Operator

with Anthony from Citi. comes Our next question Pettinari

now open. Your is line

Anthony Pettinari

cost the that with having you - of I'm end some function you it the a say year? what just decision margins, if boosted or one Ward re-establishing markets to those to fair in decision-making saw mean maybe you you is you guidance, on just saw process of by factors your were full-year the in and resilience us kind surprised wondering or left the comfortable could specifically it that of talk may quarter the be re-establish more of walk was through I guide.

Howard Nye

the Yes, thank for question. Anthony, you

and strange I something little of you deepen think is to out that bit. part - into up could a you it start it figure

that's think it. part of candidly, So, I

does not to it, Obviously, have years - can paving there we've part October years of is, itself pretty earnest. been how in swing and is much well another just and that some The weather of It's factors shut been because to really looking. good this been is, is QX have set we there runway them that equally, a year got up there Anthony, been before it one other have Thanksgiving, Anthony, when almost was obviously Colorado it left of in and that interesting down. have sense Christmas

to a we from we cost but can going pretty to going a QX believe a we'll perspective, to well. pricing like good like from So, it's look what got And perspective. what from a we've bracket think as handle just it's we know obviously, look try perspective on like volume

of trying but good that and candidly factors them. we went the few a having the I users. about get with look again on the were just taking we - as Jerry those pretty feel it into all just are we was end in think a I to into again, that can, ago others and minutes So, We're as 'XX conversation

Anthony Pettinari

that pace did is about that saw maybe talked of of year. delays saw you some back the the thoughts picture you the kind a more or it - then pace over in wondering project some of cancellations And that project from or you earlier helpful. come very ease, just you any the that's big Okay, apparently I'm you expected or delays stable quarter, the general course did of there. saw was projects perspective, than

Howard Nye

I the cancellations them and say we I Yes, draw, deferrals, don't pushing is off. different see bifurcation think right to we important calling things. several projects an because that's would to animal One, an than see entirely

the that's we're seeing. Great Recession, during what cancel, saw in the projects crisis not financial So we

call to So I want that.

is, simply in weather saw other some instances, we deferrals. The

a for year that have the So we've primary had transportation is and hurricanes had bit taking in DOT that, some good the I the this some place of Southwest come when again, comfort first some obviously, North good again, Carolina Southeast. through in think time we're almost surface seeing in we've start But a respects rain the re-letting some in we're year.

state we certainly return see us. beginning to like better to as that to rhythm, a when that patience, that something So feels feels in a start normal more

this that anything deferrals surprised don't or the what quarter thought see And quarter. many us. say is to were extraordinary respects, in relative I very surprised perspective, from in we volume think - we we're a would So did we're not I

I cost were probably that you tell expect not I surprised, is not surprised. you, tell more word, perspective would from not we less going to to the that we think but were a into from I'm going we see future, pricing of And perspective, up. the gratified, a right again,

Operator

with Elliott Our Stanley Stifel. question comes next from

Your line now open. is

Stanley Elliott

or a now into subdivisions next a thoughts that or governor for the be heard context year? And curious that we've residential question. looking what buy of build on lot about you talked keeping when and residential they're of are and busy that to pace delays the of talking Thank are? about like what could just the lumber land actually sense contractors, new things a out I prices with for am enough Any to to you higher they're you recovery that, that. they taking kind in getting kind your Ward, extent

Howard Nye

think begets great they the away - the number American frankly I question. And for is busy. I multifamily, and to And single-family we're a think space that's this, they're what one, the in busy had shift haven't two, to lead going Stanley, usually years seeing last which move do moving that is buying some but highly want we moving at Great people think several thing, from more land, of the to where busy the land. because we a to don't difficult more bad the something entitlement And are look money have way, that's think good by necessity isn't if in that's actually operating we do, is to subdivisions that's ability one, the We a borrow thing. they there. for to new tend and two, three, the markets

all that's feel of like important. we So

markets we overbuilt decades. half-year we've move And fundamentally it, these of that's think single-family seen such a of the about spoke and place. different part that piece other around not last call The is in is, couple over the of is important what Stanley, are we

crisis. So single-family at recovery looking really great we're coming financial is, the with out

versus XX% of what typically So also about to closer been XX%. had starts

of to those places we normalized and and that be tend that be a cities are which as are Florida. So single-family not up particularly Colorado, to Georgia, significant be going seeing states that growing of Texas, we're more Carolina, North more growing Those trends, aggregates we're in out to out, have are states portion will intensive. a to looking we're we be would states grown be would going at move that expect it what is back be, to if a looking these at deurbanization presence,

yes, our think they busy. Yes, I will builders are land. So have think buy I more to

to will I being governor, significant, I the a what entitlement it's the growth in word, think in where not housing we they like. have a look are be on to end is areas would business going use think up but I the good entitlements, one, think I'll your

Stanley Elliott

you on given guys of of comfortable should Barring you're just there about cash of M&A right kind the I talked into seem on uncertain about sort How capital thinking mean how kind of good operating have in be you it Great. build? are switching next - some you about any past, the that curious deployment are the another kind the And of range thing side, cash year CapEx environment then the leverage gears, right there just the intriguing year. Is the let now, things thinking flow. that more to front now.

Howard Nye

range. and end the of a low right, question at that's Stanley, great you're we're our

at two ratio debt-to-EBITDA today. our times is So

that down and pulled way You've seen come we the down. I'm that of that steadily proud

thing are our last everybody pipeline We certainly in the to the odd. waiting be capital that the know, priorities have that may changed. there some priorities not you right XXXX and us. opportunities And become more looking active deal think our we're the has As at, find acquisition. capital watch call happens that in this not is equally, be else to few in months over election? surprise and here we're other too, And it does the what And will

do new catalyst of in, come to that we we a streak United something earlier, as if go activity we example, have as as certainly see as wider I well. M&A a for States indicated For see higher bit regime and that a a serve seen can they the regulatory

back and a and on So carefully. we will that flexible I make look management's very certainly sure it's in in at Obviously, spot. through ourselves the we it want that keep whether turn think we in discretion repurchases, we think to go

that. raised Jim already as our in our - September, us commented in shareholders see dividend benefited did comments, we have You opening his from so September

it where I of going M&A, space perspective. one, and I perspective got have So ability, the new of have at our synergy lot good two, we important lot And process footprints. as well. a and as a side closing, are think through teams it where very regulatory a be then Stanley, identifying Hart-Scott-Rodino we growing memorializing the regulatory would balance from they pulling we're number sheet well. from a if we proven upon that sit particularly We've interested think of a from of white sit I in transactions, the establish like most about this but to country perspective, where as and is areas think looking I equally like The we we

we that those good cash, in we're deal, uses Martin but to going for finding Stanley. know find Marietta, you how returning whether in order, or to So investing it's shareholders rank right

Operator

next comes with from question Our Capital. Garik Loop Shmois

open. is line Your

Garik Shmois

there non-res versus the the shift years? how the retail you've given more to just side is construction, office, industrial last the volume heavy much any non-res over the between way made split non-residential of is heavy piece towards quantify On several and the

Howard Nye

that, would you I Absolutely, recall, this then as Stanley. is river on a And it's for This non-res when have between on more you'll the this historically, been We mid-XXs. have seen the it Stanley, of you is pre-Bluegrass. heavy give last historically, around our light other. break and background. closer quarters, over XX% this actually the almost considerably really you've pre-TXI, hand and said, one Rocky's, than this the recall XX-XX would to business is pre was several it's

focused river, we have least as the out on increasingly is As corridors, at it now business the - large our it side heavy we've of transactions, large done we these we come feel of probably these commerce as XX%. like

warehouses just about seven to at as now, So go done San projects that a stages moved I Antonio area center in it's And number few of the gave interesting even we're much Amazon that various we've minutes it's data back and revisit just these probably talking fact transactions. bidding. the ago, on bidding right that

what l-XX on locations it's what I-XX corridor, I-XX about it's we helped TXI Bluegrass. you those the for if River about was the the significantly think changed where significantly was completely we've by what been, on whether by in the I-XX really did changed remade I the swap. River l-XX Rocky the corridor, And mean whether was l-XX So changed and was corridor we l-XX that the River corridor assets it's did did with that. with on we has for with the significantly Atlanta. I-XX we the corridor, acquired whether - or in move

non-res has not has large piece shift probably a unlike next year, gone a but of underperformed over the because today XX% we've moved years. again, of XX gone re-authorizations measure, value to in as has infrastructure that up series through last So pie the the bigger percentage in is XX%,

Garik Shmois

XQ seasonally year, much for because up a don't thanks for that slower to on that... I the Also wanted follow given want that. provided guidance the you the but part it's on of to too Okay, just year. just focus

Howard Nye

Yes.

Garik Shmois

to weather you And I How Is headwinds different then it of catch driving calibrate guidance the on some maybe saw just timing, ends growth, broadly, from do is of you the the up think maybe that provided ranges? October in mean how the XQ? the you increase? more what project

Howard Nye

Yes, I think of had we actually probably. don't this going year. headwinds we several One, have on year varying that They things some on going degrees things were last year. last

we one, year, hoped. feeds And October last quarry it, QX that on would So Colorado we think Number the was thinking last at our Northern some part we're Canyon with wished did put Granite our nice. have a and bit year, which in if but some though. market that year, what Plant. which see past would some have Freeport year you did have vibrant I go you'll of accelerate headwinds little they we're then this probably to back Miami, later are employees, sits some that year of And Hunter then increased last Southern Cement is, coming Dorian longer in very maintenance grading stripping actually we're we trends Hurricane equally, sided we Bahamas last

like we some part is be building benefits. like the would that feels is very we're midpoint if I what some sold that we're that in Central their we the of factory feel winter And think normal seeing on bigger that Texas see cadence, work, of we them, property again, range. as add comfortable what the something of a Tesla certainly with particularly

it puts a of that's would what gives left. the be and helpful. the hope takes little bit - year least of sense So you that's the in at that I

Operator

And our Phil comes with Ng from question next Jefferies.

now line is open. Your

Phil Ng

If into think next get policy of If is a authorization we optionality from a of go some year. longer-term we separate this the package stimulus bill.

Howard Nye

Yes.

Phil Ng

the shorter coming Do through the see can where And demand lettings you a and maybe mid-year states side little lag because then... that impact is see benefit on quicker dial-up a XXXX?

Howard Nye

Yes.

Phil Ng

like …typically year a it's plus lag.

can… so Okay, you

Howard Nye

can, they back several Phil because part think happened, if Yes, is, No, of over what's we go time, things. I

look financial up states the crisis, some you example. of a way states came the DOTs, different more at If is ended good out people hiring Texas in

as fundamentally example, want which they sitting started a that are go I purchased very has different North states we're and here that's today, they they're more have think can. Carolina means a at doing position least is they outsourcing, And if good to engineered that Some the more in right-of-way projects a place. been designed,

So feel you tax revenues has to know, long yes, been as pace your like or should advocating AASHTO $XX point, to help a fill there. that that there else to for there if about the for if and they is is go there is anything created hole simply roughly billion states weren't because was

and floating million activity Texas there over of hole do narrower hole or be deep time augment have state and do got at in because money plenty to simply that. do bonds, billion, year, that that over they so of not today? $XX again come thing? uses It's Now Colorado going for is point, out help worth could that that But mind, $XXX if and in NCDOT, they lot said you could be if metering Absolutely, in they the a the your weather as same early went the To same sure, buying to Absolutely. keep are look time. that directly can to - thing?

from and been reauthorized good has most timing been the on we've in saying 'XX, date what do some you've be because probably think near-term like real a But what that think we're is that. bill And one, tonnage 'XX around passage about. So discussing point's at event if actually but 'XX. again, the I a the look got I do would to could of stimulus your

Phil Ng

of you when color think this a year margin the pricing you on higher kind the certainly little deflation the and drive light and it impressive I you've is we have really in to on in economics some gross levers then weaker keep energy, seen lower side And like volumes. least there inflation flat you get think the and Do XXXX, out not any unit enough at of quarter the volumes. have or But as assuming margins well.

Howard Nye

you Yes, with its that, impressive I part to outline - some we'll of really think in most bill a and almost we're on obviously volumes its give is, I double-digits this really with profitable what down that arm guidance quarter back. is good trying behind our tied business February, but

in So again, example, Texas good. our backlogs, very for look

is 'XX. business into is some heading we good NCDOT think about that feel letting jobs. I Obviously where can So

would I think If your even into Eastern some we've back momentum where business be. been increasingly that's 'XX the that. gets story half, in the so about going good

Operator

next comes Bank. Deutsche Seldon with question from Clarke Our

is Your line open.

Seldon Clarke

guess will talking to volume federal fair of outlook that based then on right state how Is non-resi throughout the and be represent XQ steepest it the regards positioned October declines trending based and in the obviously, downturn? you're there can to say is perspective, the from for where to on improvement to I and probably of where sort this just and you're funding. a weather a October just trending is now prevention this. But

Howard Nye

with the it, keep again think information quarter in Yes, quarter if granular we last is a And surprise out this big we'll big in come about this was Seldon, mind, February. more that me. and wouldn't year. But

suggest And beast lot the is always tonnage percentages of to compares. work was me but the look so at it's this because helped QX, a I would percentages So interesting QX you slow. can how in in

states not your not see dramatically. to on me be steepest would would would changed things client, it this down, your surprise me just a words. unless percentage that use we single It surprise So but this

Seldon Clarke

with to the of relates of on relationship help go and you coming to sort in And if how context spending But gave look can annual these from actual back the some And XX% highlights... of between understand the of around XX% that bills. product some or then we a potentially you just XX% historical aggregates government? at increase XX% demand, guess, your just one highway going I from shipments these us

Howard Nye

Yes. I guess...

Seldon Clarke

XX% growth. actually was It

you do how think So about that?

Howard Nye

think will way look I guess our and if Yes. population to and it, we states going issue. top of the where in capacity five then that's significant there we at see be trends capacity we needs the which states, be

undertake So just looking in things Orlando about more that miles the start Florida you that think most Raleigh Georgia South That's Carolina your an and think single you also and Columbia, you and than program Atlanta, take Charlotte, aggregates added. but and if about happen. Atlanta mobility because several at and Jacksonville, intensive about you contracts think and then X and

well. a a tonnage, but it's taking of tonnage lot it's then taking of vary as So lot

you So based down. in you that's down, and you either asphalt are clean stone or to putting products put concrete and venture are going

you're the taking products. entire way So more of

one, very way the we that actually healthy number for very healthy it's for business. that's inventories. actually our two, can So Number run

should you good than is non-residential being it's a a been so as a the of actually degree has easy, got but out and have of we've you've - does clean Now that got slower inventory from efficiency in that more you've over does mean added public can you fire. is be if wider but what science years been. produce and fairly that highway incredibly practical the on take that non-residential. case, quite products What And going and what we operating side in would and what some hold last non-residential that array stone that it capacity helpful. the bill appear it in a an states. be is not intend crushing if because I new several outperformance matter, it plant, of that really efficiency has an not to really a from part been And hasn't it I have It's would been seen to tell space it's you but is will and significant less doing a

it material, that that it's we go, operating and adds I infrastructure capacity, high states we're efficiency. more in needed if helpful. and tonnage as can they these hope see add deliver think So we we adds spec material a of it which it's

Operator

with next from MacGregor comes Our question David Research. Longbow

open. Your now line is

David MacGregor

catch seems is been quarter? lot that's a the ones. markets covered we there's maybe do in I'll past fourth maybe just pass timing structural in play coming more price the hour, the so ready-mix, there issue, I the something through a guess that here? a in up of couple in has here just issue in Is So, quick this I it make just or like guess

Howard Nye

we shifts Texas. I good No, price one, say we things, some saw mix in Colorado and would saw in several

concrete of the sit, that's of aggregates because I most So at of other and ton on cement for so see. more aggregates from we going paid that's piece business for hey, the is, of nice on the what you you okay cement And providing think look and we're paid largely really, we're business there. look, and the more that's concrete a where most was it per ASP. better lot what it, and if providing But X.X% the

large in it right in doing measure, we're good but helps lot a have a of things it's now, undergo ready-mix would So so upstream business, what thought. very attractive seeing we that exactly

David MacGregor

Right, right.

in about reduced energy or Houston. happening Is that a in into of congestion going just question Second are function you on the talked service and rail any level is lower just rail? in aggregates, you what's tons or seeing Houston really

Howard Nye

are good been was that Texas service reasonably a was the loaded, David, as when big and so rail And Southwest, coming Houston, so tons that had the it's the to LNG if water. there. projects we the those know really not closer South really has in you to Well, down piece - mix and issues are because transportation those out really really the that even get of of pure shift you it's more or fewer yards, tons much

of of as projects So per Parkway. of going it some as example, Grand coming Houston to out modestly there And to in going Antonio is for San you Houston, much amount and good cement go things lower a because that, in including our that than metro and se is is actually are facility. Hunter we've on issue are Grand good seen Parkway really wasn't in Dallas priced may the very recall cement the it

Houston, we're So oriented on more it seeing activity really was whatsoever, in to cost not commentary. bad that

Operator

Vertical from Michael Dudas comes with Our Research. next question

is Your line open.

Michael Dudas

little in the seen where - on highlight states, but appreciate we quiet your some insight you've helpful some the expectations maybe or some the bit or quarter of 'XX. Ward, either of and events a say you on negative tops macro trends on the second is positive 'XX that your be important can might help out that others to couple side these - more volume a impact second

Howard Nye

that if seeing would Look, buy what The we and we're other is Carolina, that's XXXX there. at $X.X South raise on them something South they're I'll XX%, billion, did certainly about they year time we're South very gas the Carolina and program to going of that the so FY tax. up was Carolina like looking

up period there. years. we're about that taking are We're they activity six So incrementally through good seeing of a over that, halfway so

basically as in where their business All there passed airport City we over a and plan plan that funding activity $XX so in at we've that good $X the XX-year and Keeping a we're very got see billion of XX-year a billion really we doubles attractive funding like business Arkansas and mind, around over that, we're going. Arkansas seeing well.

that job we've exceptionally but of has in have leadership what district and business that, I getting that and Indiana, it's business seen we're there just really pricing we our that recognition a costs and doing call the we're on Indiana well. Our marketplace. in done just our equally deserve be a historically, well good clear, they Indianapolis really on what very we to mean on controlling they call district done do it out in sure making superb

go other to XX by big Virginia, again, consume top as farm our tend I week and place out we we're and But Iowa round seen strong. else looking through, Maryland had year, Virginia, commentary has program, stone now, going Kentucky that things think that you you've they that the not is we've Indiana each moment completely well. of like I economy our at right through If Savina it, bit more its Summit equally a has and than Remember, heard an feel been states to its is I'm year we just Kentucky does as is and that's DOT well they quite states. been have just Maryland, on think places any places a to as of has to the us think of and at troubling we're that gone or market in solid per through difficulty just I Nebraska, Iowa, very like like from others if They're on sense at warehousing. which have hard book looking questions revenue. very that give average with and economy, states portions significant to be you earlier TX Michael, from place in this open Iowa, data going it's served XX% not where capita a cycle a this because looking Maryland, a it's heard finest be been looked what's are Nebraska would looking of and and those, sale be year but you happening quite equally to Hill. relative more in

our one good. that, Microsoft has not more others, some we just of Phases Amazon that Group on year call dive just actually commentary five. breaking build that to to in this quite and of has warehousing but the East out Midwest challenging hopefully seen Phases taking X responsive was West business or relative between that Group, had and we've the in happened energy sometimes bit and business we that plus in X deeper wind not and the down The X and Phases a area that's been So been bottom been but so in little our

Michael Dudas

We're certainly Iowa of. was Thank and I wasn't treating you. about I was on the factoring aware not

Howard Nye

give what for. Take Michael. we would care, That's

Michael Dudas

Thank you.

Operator

Thompson Thalhimer Adam from with comes question next Our Davis.

line open. Your is now

Adam Thalhimer

Can it I ready-mix, and ask on comment ask could to I a quick ready-mix over. question, also the outlook pricing But I'll in for if and turn wanted the backlogs on you forth? then

Howard Nye

be pricing is least tell you're to to. at backlogs Colorado that happy on we tends there pretty you half, in pricing a different at I market very like interesting, steady. no, attractive is pricing, looking a I way X% would works. outlook the in pricing I challenging Texas dynamic and look look continues in are No, and it's little but if at outlook year-over-year, bit always are very to mean,

housing, I part moved Texas we've item of our in and we've what and to two, because and done housing you degree in will more Texas a weather-sensitive certain be look we some to it's again it of candidly, tend not as. is, does why little in in did infrastructure, infrastructure as instances it, particular tell So, have from housing very we of a that bit housing good; wanted volume in one, to

Now little tends that bit said, a to have ASPs. lower housing

Southwest. much choosing and business So we're be by are that picking now in pricing very but design will actually think we up again there, in right and we think backlogs the solid

Operator

comes Huerta next Our from JPMorgan. question with Adrian

Your line is now open.

Adrian Huerta

to for you prices, to is there in still are far from increase to question. my prices ask Thank there on to just on on, the room acquisitions? was past room wanted you recent you have that, increase acquisitions taking how I recent mentioned

Howard Nye

have like it's back we I it's we at always we're look think journey, done. if way a safety, worked. what Adrian, and And never the go say would things

but make not, a to sense going consolidation to were a and play. do and isn't state easy going not was I some it's we on we're cost ago ashamed to is somewhere make specifications, the facilities is and us sure about just on making not it's we a were Maryland. is and housing cost as to building the can One do product that whether look we infrastructure in contractors that's we about of we make of are or the is not. road, of state, that, was whether part And or on Maryland, there and the And at Baltimore in me Adrian, something a low side, words, western for to that state keeping we're as needs, what stone to to safely mind think Maryland had we want or the do most XX% five the it's of project of Maryland and talking with of to break what's a of the a scale and Bluegrass with federal between break specifically a moment of that right of goes the side, the necessarily we like what the And be, We brought who depleting and for typically top metro. going then We the that really but the couple that make spoke, in never X% at not about we in transaction what value brought what I getting do best the that product good same those or look to it is that Bluegrass in interesting getting other that, the it non-residential time we our resource. give sure there we our discipline numbers. to home of you in In acquired if that two do. states at product being not a do. value examples for was more Equally, in Michael, our

century got taking that if start said, a Now we've with we look rates ground, on at left. on average of the today's reserves

where in those aggregates of States a markets plenty United it's numbers degree chilling we it selling in having have regulatory think markets. we for making any that two product those issue tell you, can now, don't So to to the for entry, you stone continue see going barriers higher world burdens away, of in effect to have an this but numbers higher don't of what we're in important. we're that sure is getting a have but going I see and and selling the on be of there and front prices are our average construction the value teens, will will we equally, right low in

journey. continues to one for a be been our of strength to So time. long point, company that my been a an has Back this area this for has

years Adrian. an going to I area strength be think of for to yet come, it's

Howard Nye

call. Thank quarter XXXX joining our you third all for conference earnings

full and confident are and XXXX on for financial, to remain our strong We February. in we maximizing of forward, safety successful build opportunities value Moving performance in Martin year Marietta's record track shareholders. quarter focused to forward discussing and operational results our all look fourth on

Please questions. safe Marietta. we're available for you continued Thank of any follow-up always, for time As your and support stay and Martin healthy.

Operator

Ladies concludes and gentlemen, call. this today's you for conference Thank participating.

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