Martin Marietta Materials, Inc. Reports First-Quarter Results
Net Sales Increase of 10% Leads to Gross Margin Expansion and Improved Profitability
Aggregates Product Line Volume Up 8%; Specialty Products Posts First-Quarter Record Net Sales
"In addition, our Specialty Products business posted first-quarter record net sales, making a significant contribution to our quarterly results.
"Private construction continues to be solid across all of our
geographies. We also noted public-sector volume growth in
NOTABLE ITEMS FOR THE QUARTER (ALL COMPARISONS ARE VERSUS THE PRIOR-YEAR FIRST QUARTER)
-
Loss per diluted share of $0.47 (includes a
$0.12 per diluted share charge for business development expenses related to the proposed combination with Texas Industries, Inc.); adjusted loss per diluted share of$0 .35 compared with loss per diluted share of$0.61 - Consolidated net sales of $379.7 million compared with $344.1 million
- Aggregates product line volume increase of 8.1%; aggregates product line pricing decline of 1.3%, due to geographic and product mix
- Specialty Products first-quarter record net sales of $57.4 million; earnings from operations of $16.3 million
- Consolidated gross margin (excluding freight and delivery revenues) of 6.8%, up 310 basis points
- Consolidated selling, general and administrative expenses (SG&A) decreased 190 basis points as a percentage of net sales
-
Consolidated loss from operations of $15.9 million (includes
$9.5 million of business development expenses related to the proposed combination with Texas Industries, Inc.); adjusted consolidated loss from operations of$6.4 million compared with consolidated loss from operations of$23.3 million
SEGMENT RESULTS (ALL COMPARISONS ARE VERSUS THE PRIOR-YEAR FIRST QUARTER)
Aggregates Business
Aggregates product line shipments reflect double-digit growth in three
of the four end-use markets. Volumes to the nonresidential market
represented 34% of quarterly shipments and increased 13%, reflecting
growth in the commercial and energy sectors. The residential end-use
market accounted for 15% of quarterly shipments, and volumes to this
market increased 16%, with notable growth in the Southeast and West
Groups. The
Shipments to the infrastructure market were flat and comprised the
remaining 39% of the aggregates product line. Strength in infrastructure
spending was apparent in the
Geographically, the
The vertically integrated product lines each reported growth in net sales and gross profit. The ready mixed concrete product line achieved a 45% increase in net sales, which reflected volume and pricing improvement of 24% and 9%, respectively. The asphalt product line reported a 9% increase in net sales, due to increased shipments.
Aggregates product line production volumes decreased 2.4%, due to weather constraints. As expected, this led to an underabsorption of fixed costs and a higher cost per ton. Although adversely affected by weather, higher net sales more than offset cost challenges and led to a 400-basis-point expansion of the business' gross margin (excluding freight and delivery revenues).
Specialty Products Business
Specialty Products continued its strong performance and generated record
first-quarter net sales of
CONSOLIDATED SG&A AND BUSINESS DEVELOPMENT EXPENSES
Consistent with expectations, consolidated SG&A declined
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operating activities for the quarter was $6.6 million compared with $18.6 million in 2013. Higher earnings were more than offset by the working capital impact of higher net sales on the level of accounts receivable.
At March 31, 2014, Martin Marietta's ratio of consolidated debt to consolidated EBITDA, as defined in the Company's senior credit facility, for the trailing twelve months was 2.74 times, in compliance with the Company's covenant.
FULL-YEAR OUTLOOK
The Company is encouraged by various positive trends in its business and markets, notably:
- Nonresidential construction is expected to grow in both the heavy industrial and commercial sectors.
- Shale development and related follow-on public and private construction activities are anticipated to remain strong.
- The commercial building sector is expected to benefit from improved market fundamentals, such as higher occupancies and rents, strengthened property values and increased real estate lending.
- Residential construction should continue to grow, driven by historically low mortgage rates, higher multi-family rental rates, rising housing prices; total annual housing starts are expected to exceed one million units for the first time since 2007.
- For the public sector, authorized highway funding from MAP-21 should increase slightly compared with 2013.
- Additionally, state initiatives to finance infrastructure projects are expected to grow and continue to play a more expanded role in public-sector activity.
Based on these trends and expectations, the Company anticipates:
-
Aggregates end-use markets compared to 2013 levels: infrastructure
shipments to increase slightly; nonresidential shipments to increase
in the mid-to-high single digits; residential shipments to experience
double-digit growth; and
ChemRock /Rail shipments to increase in the low-single digits. - Aggregates product line shipments to increase by 4% to 5% compared with 2013 levels.
- Aggregates product line pricing to increase by 3% to 5% for the year compared with 2013.
- Aggregates product line direct production cost per ton to decrease slightly compared with 2013.
-
Vertically integrated businesses to generate between
$385 million and$405 million of net sales and$40 million to$45 million of gross profit. -
SG&A expenses as a percentage of net sales to decline compared with
2013, driven in part by
$7.9 million of nonrecurring costs related primarily to the 2013 completion of the Company's information systems upgrade, as well as, lower pension costs. -
Net sales for the Specialty Products segment to be between
$225 million and$235 million , generating$85 million to$90 million of gross profit. - Interest expense to remain relatively flat compared with 2013.
- Estimated effective income tax rate to approximate 29%, excluding discrete events.
-
Capital expenditures to approximate
$155 million .
RISKS TO OUTLOOK
The full-year outlook includes management's assessment of the likelihood
of certain risk factors that will affect performance. The most
significant risks to the Corporation's 2014 performance will be
Congress' actions and timing surrounding the expiration of MAP-21 in
September and uncertainty over the funding mechanism for the
The Corporation's principal business serves customers in aggregates-related construction markets. This concentration could increase the risk of potential losses on customer receivables; however, payment bonds normally posted on public projects, together with lien rights on private projects, help to mitigate the risk of uncollectible receivables. The level of aggregates demand in the Corporation's end-use markets, production levels and the management of production costs will affect the operating leverage of the Aggregates business and, therefore, profitability. Production costs in the Aggregates business are also sensitive to energy and raw material prices, both directly and indirectly. Diesel fuel and other consumables change production costs directly through consumption or indirectly by increased energy-related input costs, such as steel, explosives, tires and conveyor belts. Fluctuating diesel fuel pricing also affects transportation costs, primarily through fuel surcharges in the Corporation's long-haul distribution network. The Specialty Products business is sensitive to changes in domestic steel capacity utilization and the absolute price and fluctuations in the cost of natural gas.
Transportation in the Corporation's long-haul network, particularly the
supply of rail cars and locomotive power to move trains, affects the
Corporation's ability to efficiently transport material into certain
markets, most notably
Risks to the outlook include shipment declines as a result of economic events beyond the Corporation's control. In addition to the impact on nonresidential and residential construction, the Corporation is exposed to risk in its estimated outlook from credit markets and the availability of and interest cost related to its debt.
The Corporation's future performance is also exposed to risks from tax reform at the federal and state levels.
CONFERENCE CALL INFORMATION
The Company will discuss its first-quarter 2014 earnings results on a
conference call and online web simulcast today (
For those investors without online web access, the conference call may also be accessed by calling (970) 315-0423, confirmation number 30484494.
If you are interested in
Investors are cautioned that all statements in this press release that relate to the future involve risks and uncertainties, and are based on assumptions that the Corporation believes in good faith are reasonable but which may be materially different from actual results. Forward-looking statements give the investor our expectations or forecasts of future events. You can identify these statements by the fact that they do not relate only to historical or current facts. They may use words such as "anticipate," "expect," "should be," "believe," "will", and other words of similar meaning in connection with future events or future operating or financial performance. Any or all of our forward-looking statements here and in other publications may turn out to be wrong.
Factors that the Corporation currently believes could cause actual
results to differ materially from the forward-looking statements in this
press release include, but are not limited to, Congress' actions
and timing surrounding the expiration of MAP-21 in September and
uncertainty over the funding mechanism for the
Cautionary Statements Regarding Forward-Looking Statements
Certain statements in this communication regarding the proposed
acquisition of Texas Industries ("TXI") by Martin Marietta, the expected
timetable for completing the transaction, benefits and synergies of the
transaction, future opportunities for the combined company and products
and any other statements regarding Martin Marietta's and TXI's future
expectations, beliefs, plans, objectives, financial conditions,
assumptions or future events or performance that are not historical
facts are "forward-looking" statements made within the meaning of
Section 21E of the Securities Exchange Act of 1934. These statements are
often, but not always, made through the use of words or phrases such as
"may", "believe," "anticipate," "could", "should," "intend," "plan,"
"will," "expect(s)," "estimate(s)," "project(s)," "forecast(s)",
"positioned," "strategy," "outlook" and similar expressions. All such
forward-looking statements involve estimates and assumptions that are
subject to risks, uncertainties and other factors that could cause
actual results to differ materially from the results expressed in the
statements. Among the key factors that could cause actual results to
differ materially from those projected in the forward-looking statements
are the following: the parties' ability to consummate the transaction;
the conditions to the completion of the transaction, including the
receipt of approval of both Martin Marietta's shareholders and TXI's
stockholders; the regulatory approvals required for the transaction not
being obtained on the terms expected or on the anticipated schedule; the
parties' ability to meet expectations regarding the timing, completion
and accounting and tax treatments of the transaction; the possibility
that the parties may be unable to achieve expected synergies and
operating efficiencies in connection with the transaction within the
expected time-frames or at all and to successfully integrate TXI's
operations into those of Martin Marietta; the integration of TXI's
operations into those of Martin Marietta being more difficult,
time-consuming or costly than expected; operating costs, customer loss
and business disruption (including, without limitation, difficulties in
maintaining relationships with employees, customers, clients or
suppliers) being greater than expected following the transaction; the
retention of certain key employees of TXI being difficult; Martin
Marietta's and TXI's ability to adapt its services to changes in
technology or the marketplace; Martin Marietta's and TXI's ability to
maintain and grow its relationship with its customers; levels of
construction spending in the markets; a decline in the commercial
component of the nonresidential construction market and the subsequent
impact on construction activity; a slowdown in residential construction
recovery; unfavorable weather conditions; a widespread decline in
aggregates pricing; changes in the cost of raw materials, fuel and
energy and the availability and cost of construction equipment in
Additional Information and Where to Find It
In connection with the proposed transaction between Martin Marietta and
TXI, Martin Marietta filed with the
Participants in Solicitation
This communication is not a solicitation of a proxy from any investor or
securityholder. However, Martin Marietta, TXI and certain of their
respective directors and executive officers may be deemed to be
participants in the solicitation of proxies in connection with the
proposed transaction under the rules of the
Non-Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
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Unaudited Statements of Earnings | |||||||||||
(In millions, except per share amounts) | |||||||||||
Three Months Ended | |||||||||||
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2014 | 2013 | ||||||||||
Net sales | $ | 379.7 | $ | 344.1 | |||||||
Freight and delivery revenues | 49.0 | 39.8 | |||||||||
Total revenues | 428.7 | 383.9 | |||||||||
Cost of sales | 353.9 | 331.3 | |||||||||
Freight and delivery costs | 49.0 | 39.8 | |||||||||
Total cost of revenues | 402.9 | 371.1 | |||||||||
Gross profit | 25.8 | 12.8 | |||||||||
Selling, general and administrative expenses | 34.2 | 37.6 | |||||||||
Business development expenses | 9.5 | 0.3 | |||||||||
Other operating (income), net | (2.0 | ) | (1.8 | ) | |||||||
Loss from operations | (15.9 | ) | (23.3 | ) | |||||||
Interest expense | 12.2 | 13.5 | |||||||||
Other nonoperating expenses, net | 3.5 | 0.6 | |||||||||
Loss from continuing operations before income tax benefit | (31.6 | ) | (37.4 | ) | |||||||
Income tax benefit | (8.5 | ) | (8.4 | ) | |||||||
Loss from continuing operations | (23.1 | ) | (29.0 | ) | |||||||
Loss on discontinued operations, net of related income tax benefit
of |
- | (0.3 | ) | ||||||||
Consolidated net loss | (23.1 | ) | (29.3 | ) | |||||||
Less: Net loss attributable to noncontrolling interests | (1.5 | ) | (1.5 | ) | |||||||
Net loss attributable to |
$ | (21.6 | ) | $ | (27.8 | ) | |||||
Net loss per common share: | |||||||||||
Basic from continuing operations attributable to common shareholders | $ | (0.47 | ) | $ | (0.60 | ) | |||||
Discontinued operations attributable to common shareholders | - | (0.01 | ) | ||||||||
$ | (0.47 | ) | $ | (0.61 | ) | ||||||
Diluted from continuing operations attributable to common shareholders | $ | (0.47 | ) | $ | (0.60 | ) | |||||
Discontinued operations attributable to common shareholders | - | (0.01 | ) | ||||||||
$ | (0.47 | ) | $ | (0.61 | ) | ||||||
Cash dividends per common share | $ | 0.40 | $ | 0.40 | |||||||
Average number of common shares outstanding: | |||||||||||
Basic and Diluted | 46.3 | 46.0 |
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Unaudited Financial Highlights | |||||||||
(In millions) | |||||||||
Three Months Ended | |||||||||
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2014 | 2013 | ||||||||
Net sales: | |||||||||
Aggregates Business: | |||||||||
|
$ | 106.5 | $ | 110.2 | |||||
|
55.4 | 51.3 | |||||||
|
160.4 | 127.4 | |||||||
Total Aggregates Business | 322.3 | 288.9 | |||||||
Specialty Products | 57.4 | 55.2 | |||||||
Total | $ | 379.7 | $ | 344.1 | |||||
Gross profit (loss): | |||||||||
Aggregates Business: | |||||||||
|
$ | (1.5 | ) | $ | (2.1 | ) | |||
|
(2.9 | ) | (4.9 | ) | |||||
|
12.0 | 2.2 | |||||||
Total Aggregates Business | 7.6 | (4.8 | ) | ||||||
Specialty Products | 18.8 | 19.6 | |||||||
Corporate | (0.6 | ) | (2.0 | ) | |||||
Total | $ | 25.8 | $ | 12.8 | |||||
Selling, general and administrative expenses: | |||||||||
Aggregates Business: | |||||||||
|
$ | 13.0 | $ | 13.2 | |||||
|
4.2 | 4.5 | |||||||
|
10.9 | 10.8 | |||||||
Total Aggregates Business | 28.1 | 28.5 | |||||||
Specialty Products | 2.4 | 2.5 | |||||||
Corporate | 3.7 | 6.6 | |||||||
Total | $ | 34.2 | $ | 37.6 | |||||
Earnings (Loss) from operations: | |||||||||
Aggregates Business: | |||||||||
|
$ | (11.8 | ) | $ | (14.0 | ) | |||
|
(6.1 | ) | (8.4 | ) | |||||
|
2.1 | (8.1 | ) | ||||||
Total Aggregates Business | (15.8 | ) | (30.5 | ) | |||||
Specialty Products | 16.3 | 17.1 | |||||||
Corporate | (16.4 | ) | (9.9 | ) | |||||
Total | $ | (15.9 | ) | $ | (23.3 | ) |
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Unaudited Financial Highlights | |||||||||||
(In millions) | |||||||||||
Three Months Ended | |||||||||||
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2014 | 2013 | ||||||||||
Net sales by product line: | |||||||||||
Aggregates Business: | |||||||||||
Aggregates | $ | 263.9 | $ | 247.8 | |||||||
Asphalt | 10.5 | 9.6 | |||||||||
|
38.0 | 26.3 | |||||||||
Road Paving | 9.9 | 5.2 | |||||||||
Total Aggregates Business | 322.3 | 288.9 | |||||||||
Specialty Products Business | 57.4 | 55.2 | |||||||||
Total | $ | 379.7 | $ | 344.1 | |||||||
Gross profit (loss) by product line: | |||||||||||
Aggregates Business: | |||||||||||
Aggregates | $ | 10.1 | $ | 2.1 | |||||||
Asphalt | (1.4 | ) | (2.5 | ) | |||||||
|
2.9 | (0.1 | ) | ||||||||
Road Paving | (4.0 | ) | (4.3 | ) | |||||||
Total Aggregates Business | 7.6 | (4.8 | ) | ||||||||
Specialty Products Business | 18.8 | 19.6 | |||||||||
Corporate | (0.6 | ) | (2.0 | ) | |||||||
Total | $ | 25.8 | $ | 12.8 | |||||||
Depreciation | $ | 40.1 | $ | 40.8 | |||||||
Depletion | 1.1 | 1.0 | |||||||||
Amortization | 1.3 | 1.2 | |||||||||
$ | 42.5 | $ | 43.0 |
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Balance Sheet Data | |||||||||||||
(In millions) | |||||||||||||
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2014 | 2013 | 2013 | |||||||||||
(Unaudited) | (Audited) | (Unaudited) | |||||||||||
ASSETS | |||||||||||||
Cash and cash equivalents | $ | 35.8 | $ | 42.4 | $ | 37.3 | |||||||
Accounts receivable, net | 242.6 | 245.4 | 202.2 | ||||||||||
Inventories, net | 354.7 | 347.3 | 347.6 | ||||||||||
Other current assets | 125.1 | 120.3 | 128.6 | ||||||||||
Property, plant and equipment, net | 1,793.5 | 1,799.2 | 1,732.1 | ||||||||||
Intangible assets, net | 664.4 | 665.2 | 665.9 | ||||||||||
Other noncurrent assets | 39.2 | 40.0 | 41.1 | ||||||||||
Total assets | $ | 3,255.3 | $ | 3,259.8 | $ | 3,154.8 | |||||||
LIABILITIES AND EQUITY | |||||||||||||
Current maturities of long-term debt and short-term facilities | $ | 12.4 | $ | 12.4 | $ | 5.7 | |||||||
Other current liabilities | 181.4 | 198.1 | 163.0 | ||||||||||
Long-term debt (excluding current maturities) | 1,055.5 | 1,018.5 | 1,072.9 | ||||||||||
Other noncurrent liabilities | 461.7 | 455.9 | 503.1 | ||||||||||
Total equity | 1,544.3 | 1,574.9 | 1,410.1 | ||||||||||
Total liabilities and equity | $ | 3,255.3 | $ | 3,259.8 | $ | 3,154.8 |
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Unaudited Statements of Cash Flows | ||||||||||
(In millions) | ||||||||||
Three Months Ended | ||||||||||
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2014 | 2013 | |||||||||
Operating activities: | ||||||||||
Consolidated net loss | $ | (23.1 | ) | $ | (29.3 | ) | ||||
Adjustments to reconcile consolidated net loss to net cash provided by operating activities: | ||||||||||
Depreciation, depletion and amortization | 42.5 | 43.0 | ||||||||
Stock-based compensation expense | 1.4 | 1.2 | ||||||||
Gains on divestitures and sales of assets | (1.1 | ) | (0.7 | ) | ||||||
Deferred income taxes | (5.1 | ) | 3.4 | |||||||
Excess tax benefits from stock-based compensation | (0.6 | ) | (0.6 | ) | ||||||
Other items, net | 1.2 | 0.8 | ||||||||
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||||||||||
Accounts receivable, net | 2.8 | 20.3 | ||||||||
Inventories, net | (7.4 | ) | (14.6 | ) | ||||||
Accounts payable | (4.8 | ) | (6.5 | ) | ||||||
Other assets and liabilities, net | 0.8 | 1.6 | ||||||||
Net cash provided by operating activities | 6.6 | 18.6 | ||||||||
Investing activities: | ||||||||||
Additions to property, plant and equipment | (36.9 | ) | (21.9 | ) | ||||||
Acquisitions, net | - | (2.6 | ) | |||||||
Proceeds from divestitures and sales of assets | 1.4 | 1.6 | ||||||||
Net cash used for investing activities | (35.5 | ) | (22.9 | ) | ||||||
Financing activities: | ||||||||||
Borrowings of long-term debt | 60.0 | 60.0 | ||||||||
Repayments of long-term debt | (23.1 | ) | (29.4 | ) | ||||||
Payments on capital leases | (0.5 | ) | - | |||||||
Change in bank overdraft | (2.6 | ) | - | |||||||
Dividends paid | (18.6 | ) | (18.5 | ) | ||||||
Issuances of common stock | 6.5 | 3.5 | ||||||||
Excess tax benefits from stock-based compensation | 0.6 | 0.6 | ||||||||
Net cash provided by financing activities | 22.3 | 16.2 | ||||||||
Net (decrease) increase in cash and cash equivalents | (6.6 | ) | 11.9 | |||||||
Cash and cash equivalents, beginning of period | 42.4 | 25.4 | ||||||||
Cash and cash equivalents, end of period | $ | 35.8 | $ | 37.3 |
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Unaudited Operational Highlights | ||||||
Three Months Ended | ||||||
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Volume | Pricing | |||||
Volume/Pricing Variance (1) | ||||||
Heritage Aggregates Product Line: (2) | ||||||
|
(5.3%) | 2.0% | ||||
|
(2.5%) | 3.5% | ||||
|
21.5% | (2.6%) | ||||
Heritage Aggregates Operations | 6.9% | (1.5%) | ||||
Aggregates Product Line (3) | 8.1% | (1.3%) | ||||
Three Months Ended | ||||||
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Shipments (tons in thousands) | 2014 | 2013 | ||||
Heritage Aggregates Product Line: (2) | ||||||
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8,550 | 9,028 | ||||
|
3,724 | 3,820 | ||||
|
12,068 | 9,931 | ||||
Heritage Aggregates Operations | 24,342 | 22,779 | ||||
Acquisitions | 277 | - | ||||
Divestitures (4) | - | - | ||||
Aggregates Product Line (3) | 24,619 | 22,779 | ||||
(1) Volume/pricing variances reflect the percentage increase (decrease) from the comparable period in the prior year. | ||||||
(2) Heritage Aggregates product line excludes volume and pricing data for acquisitions that have not been included in prior-year operations for the comparable period and excludes divestitures. |
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(3) Aggregates product line includes all acquisitions from the date of acquisition and divestitures through the date of disposal. | ||||||
(4) Divestitures include the tons related to divested aggregates product line operations up to the date of divestiture. | ||||||
Three Months Ended | ||||||
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2014 | 2013 | |||||
Unit Shipments by Product Line (in thousands): | ||||||
Aggregates tons - external customers | 23,719 | 22,121 | ||||
Internal aggregates tons used in other product lines | 900 | 658 | ||||
Total aggregates tons | 24,619 | 22,779 | ||||
Asphalt tons - external customers | 248 | 226 | ||||
Internal asphalt tons used in road paving business | 78 | 35 | ||||
Total asphalt tons | 326 | 261 | ||||
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407 | 329 | ||||
Average unit sales price by product line (including internal sales): | ||||||
Aggregates |
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Asphalt |
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Non-GAAP Financial Measures | |||||||||||
(Dollars in millions) | |||||||||||
Gross margin as a percentage of net sales and operating margin as a
percentage of net sales represent non-GAAP measures. The Corporation
presents these ratios calculated based on net sales, as it is
consistent with the basis by which management reviews the
Corporation's operating results. Further, management believes it is
consistent with the basis by which investors analyze the
Corporation's operating results, given that freight and delivery
revenues and costs represent pass-throughs and have no profit
markup. Gross margin and operating margin calculated as percentages
of total revenues represent the most directly comparable financial
measures calculated in accordance with generally accepted accounting
principles ("GAAP"). The following tables present the calculations
of gross margin and operating margin for the three months ended
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Gross Margin in Accordance with Generally Accepted Accounting Principles |
Three Months Ended | ||||||||||
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2014 | 2013 | ||||||||||
Gross profit | $ | 25.8 | $ | 12.8 | |||||||
Total revenues | $ | 428.7 | $ | 383.9 | |||||||
Gross margin | 6.0 | % | 3.3 | % | |||||||
Three Months Ended | |||||||||||
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Gross Margin Excluding Freight and Delivery Revenues | 2014 | 2013 | |||||||||
Gross profit | $ | 25.8 | $ | 12.8 | |||||||
Total revenues | $ | 428.7 | $ | 383.9 | |||||||
Less: Freight and delivery revenues | (49.0 | ) | (39.8 | ) | |||||||
Net sales | $ | 379.7 | $ | 344.1 | |||||||
Gross margin excluding freight and delivery revenues | 6.8 | % | 3.7 | % | |||||||
Operating Margin in Accordance with Generally Accepted Accounting Principles |
Three Months Ended | ||||||||||
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2014 | 2013 | ||||||||||
Loss from operations | $ | (15.9 | ) | $ | (23.3 | ) | |||||
Total revenues | $ | 428.7 | $ | 383.9 | |||||||
Operating margin | (3.7 | %) | (6.1 | %) | |||||||
Three Months Ended | |||||||||||
Operating Margin Excluding Freight and Delivery Revenues |
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2014 | 2013 | ||||||||||
Loss from operations | $ | (15.9 | ) | $ | (23.3 | ) | |||||
Total revenues | $ | 428.7 | $ | 383.9 | |||||||
Less: Freight and delivery revenues | (49.0 | ) | (39.8 | ) | |||||||
Net sales | $ | 379.7 | $ | 344.1 | |||||||
Operating margin excluding freight and delivery revenues | (4.2 | %) | (6.8 | %) |
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Non-GAAP Financial Measures (continued) | |||||
(Dollars, other than earnings per share amounts, and number of shares in millions) | |||||
Adjusted consolidated loss from operations and adjusted loss per
diluted share for the quarter ended |
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The following shows the calculation of the impact of business
development expenses related to the proposed combination with
Texas Industries, Inc., on the loss per diluted share for the
quarter ended |
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Business development expenses related to the proposed business combination with Texas Industries, Inc. | $ | 9.5 | |||
Income tax benefit | (3.8 | ) | |||
After-tax impact of business development expenses related to the proposed business combination with Texas Industries, Inc. | $ | 5.7 | |||
Diluted average number of common shares outstanding | 46.3 | ||||
Per diluted share impact of business development expenses related to the proposed business combination with Texas Industries, Inc. | $ | (0.12 | ) | ||
The following reconciles the loss per diluted share in
accordance with generally accepted accounting principles for the
quarter ended |
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Loss per diluted share in accordance with generally accepted accounting principles | $ | (0.47 | ) | ||
Add back: per diluted share impact of business development expenses related to the proposed business combination with Texas Industries, Inc. | 0.12 | ||||
Adjusted loss per diluted share | $ | (0.35 | ) | ||
The following reconciles consolidated loss from operations in
accordance with generally accepted accounting principles for the
quarter ended |
|||||
Consolidated loss from operations in accordance with generally accepted accounting principles | $ | (15.9 | ) | ||
Add back: business development expenses related to the proposed business combination with Texas Industries, Inc. | 9.5 | ||||
Adjusted consolidated loss from operations | $ | (6.4 | ) |
|
|||||||||||
Non-GAAP Financial Measures (continued) | |||||||||||
(Dollars in millions) | |||||||||||
The ratio of Consolidated Debt-to-Consolidated EBITDA, as defined,
for the trailing twelve months is a covenant under the
Corporation's revolving credit facility, term loan facility and
accounts receivable securitization facility. Under the terms of
these agreements, as amended, the Corporation's ratio of
Consolidated Debt-to-Consolidated EBITDA as defined, for the
trailing twelve months can not exceed 3.50 times as of
The following presents the calculation of Consolidated
Debt-to-Consolidated EBITDA, as defined, for the trailing-twelve
months at |
|||||||||||
Twelve-Month Period | |||||||||||
|
|||||||||||
|
|||||||||||
Earnings from continuing operations attributable to |
$ | 128.0 | |||||||||
Add back: | |||||||||||
Interest expense | 52.2 | ||||||||||
Income tax expense | 43.9 | ||||||||||
Depreciation, depletion and amortization expense | 168.0 | ||||||||||
Stock-based compensation expense | 7.2 | ||||||||||
Deduct: | |||||||||||
Interest income | (0.4 | ) | |||||||||
Consolidated EBITDA, as defined | $ | 398.9 | |||||||||
Consolidated Debt, including debt guaranteed by the Corporation, at
|
$ | 1,091.4 | |||||||||
Less: Unrestricted cash and cash equivalents in excess of |
- | ||||||||||
Consolidated Net Debt, as defined, at |
$ | 1,091.4 | |||||||||
Consolidated Debt-to-Consolidated EBITDA, as defined, at |
|||||||||||
2.74 times | |||||||||||
EBITDA is a widely accepted financial indicator of a company's
ability to service and/or incur indebtedness. EBITDA is not
defined by generally accepted accounting principles and, as such,
should not be construed as an alternative to net earnings or
operating cash flow. For further information on EBITDA, refer to
the Corporation's website at www.martinmarietta.com.
EBITDA is as follows for the three months ended |
|||||||||||
Three Months Ended | |||||||||||
|
|||||||||||
2014 | 2013 | ||||||||||
Earnings Before Interest, Income Taxes, Depreciation, Depletion and Amortization (EBITDA) | $ | 24.2 | $ | 19.9 | |||||||
A reconciliation of Net Loss Attributable to |
|||||||||||
Three Months Ended | |||||||||||
|
|||||||||||
2014 | 2013 | ||||||||||
Net Loss Attributable to |
$ | (21.6 | ) | $ | (27.8 | ) | |||||
Add back: | |||||||||||
Interest Expense | 12.2 | 13.5 | |||||||||
Income Tax Benefit for Controlling Interests | (8.4 | ) | (8.4 | ) | |||||||
Depreciation, Depletion and Amortization Expense | 42.0 | 42.6 | |||||||||
EBITDA | $ | 24.2 | $ | 19.9 |
MLM-E
Executive Vice President and Chief
Financial
Officer
www.martinmarietta.com
Source:
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