Martin Marietta Materials, Inc. Reports Third-Quarter Results
Acquired TXI Operations Contribute to 53% Growth in Net Sales
Heritage Consolidated Gross Margin Expands 130 Basis Points
Heritage Aggregates Product Line Pricing Up 5% and Volume Up 3%
Specialty Products Generates Record Third-Quarter Net Sales and Earnings from Operations
"The acquisition of TXI added
"In addition to aggregates and ready mixed operations, the TXI
acquisition provided us with a leading position in the
"Job growth continues as a significant catalyst for construction
activity, and
"In the third quarter, growth continued in heritage aggregates product
line shipments and pricing, again led by strengthening economic activity
in our
NOTABLE ITEMS FOR THE QUARTER (ALL COMPARISONS ARE VERSUS THE PRIOR-YEAR THIRD QUARTER)
- Adjusted earnings per diluted share of $1.45:
Reported earnings per diluted share | $ | 0.79 | |
Add back: | |||
Acquisition-related expenses, net | 0.56 | ||
One-time increase in cost of sales for acquired inventory | 0.10 | ||
Adjusted earnings per diluted share | $ | 1.45 | |
Prior-year quarter earnings per diluted share of |
-
Consolidated net sales of $917.9 million (
$644.4 million from heritage operations) compared with $600.5 million - Heritage aggregates product line pricing increase of 5.1%; heritage aggregates product line volume increase of 2.7%
- Specialty Products net sales of $58.7 million and earnings from operations of $17.7 million
- Heritage consolidated gross margin (excluding freight and delivery revenues) of 25.1%, up 130 basis points
-
Consolidated selling, general and administrative expenses (SG&A) of
$48.4 million , or 5.3% of net sales, a reduction of 90 basis points - Adjusted consolidated earnings from operations of $153.0 million:
(in millions) |
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Reported consolidated earnings from operations | $ | 116.0 | |
Add back: | |||
Acquisition-related expenses, net | 26.1 | ||
One-time increase in cost of sales for acquired inventory | 10.9 | ||
Adjusted consolidated earnings from operations | $ | 153.0 | |
Prior-year consolidated earnings from operations of |
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SEGMENT RESULTS (ALL COMPARISONS ARE VERSUS THE PRIOR-YEAR THIRD QUARTER UNLESS NOTED OTHERWISE)
Heritage Aggregates Business
Heritage aggregates product line shipments reflect growth in the three
largest end-use markets. Shipments to the infrastructure market
comprised 47% of quarterly volumes and increased 3%. Growth was
strongest in the
During the quarter,
The nonresidential market represented 30% of quarterly shipments and
increased 3%, driven largely by energy-sector shipments. The Company
continues to benefit from the nation's increasing investment in shale
energy, particularly in
Geographically, heritage aggregates shipments for the West and
Mid-America Groups increased 5% and 2%, respectively. As has been the
trend in recent quarters, economic activity in the
Heritage aggregates product line pricing remains strong and increased in
each reportable group, led by an 8.3% improvement in the
The heritage ready mixed concrete product line reported volume and pricing improvements of 17% and 14%, respectively, leading to an 840-basis-point improvement in the heritage product line's gross margin (excluding freight and delivery revenues). The heritage hot mixed asphalt product line reported a 13% increase in net sales.
Heritage aggregates product line production increased 4% in response to
greater demand. Direct production cost per ton grew slightly as
increased leveraging of fixed costs were offset by higher repair and
supply costs and weather constraints in certain areas. Further, freight
costs increased for transfers of materials within the Company's
long-haul distribution network, notably driven by rail inefficiencies,
car availability and track congestion. The increased repair, supply and
freight costs added
Specialty Products Business
Specialty Products continued to deliver strong performance and generated
third-quarter record net sales of
Acquired Operations
On
The Cement business includes production facilities located in
The Company is working towards its target operating model and
integration is progressing as planned. Notably, as the Company's
operating teams continue their integration efforts and leverage
complementary platforms, Martin Marietta expects to surpass its target
of
CONSOLIDATED OPERATING RESULTS
Consolidated SG&A was 5.3% of net sales compared with 6.2% in the prior-year quarter. The reduction of 90 basis points reflects transaction synergies, lower pension expense, and the absence of information systems upgrade costs incurred in 2013.
During the quarter and in accordance with the Company's agreement with
the
The Company currently expects its effective income tax rate for
full-year 2014 to approximate 39%, which is higher than the Company's
historical rate. The estimated effective income tax rate, excluding the
TXI transaction effects, would have been 29%. The rate increase reflects
the tax impact of the TXI transaction, including the limited
deductibility of certain acquisition-related expenses and the
non-deductibility of goodwill written off as part of the required
divestiture. These factors were partially offset by the income tax
benefits, resulting from the exercise of converted stock awards issued
to former TXI personnel. As a result of the increase in the estimated
annual income tax rate, the rate for the quarter ended
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operating activities for the first nine months was
At
In connection with the TXI acquisition, the Company completed a private
offering of
FULL-YEAR 2014 AND PRELIMINARY 2015 OUTLOOK
The Company is encouraged by positive trends in its business and markets, notably:
- Nonresidential construction is expected to increase in both the heavy industrial and commercial sectors. 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.
- Shale development and related follow-on public and private construction activities in our primary markets are anticipated to remain strong.
- Residential construction should continue to grow, driven by historically low levels of construction activity over the previous several years together with low mortgage rates, significant lot absorption, higher multi-family rental rates and rising housing prices. Total annual housing starts are anticipated 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 an expanded role in public-sector activity.
Based on these trends and expectations, the Company anticipates the following for 2014:
-
Heritage aggregates end-use markets compared to 2013 levels are
reaffirmed as follows:
- Infrastructure shipments to increase slightly;
- Nonresidential shipments to increase in the high-single digits;
- Residential shipments to experience double-digit growth; and
-
ChemRock /Rail shipments to increase in the mid-to-high single digits.
- Heritage aggregates product line shipments to increase by 6% to 8% compared with 2013 levels.
- Heritage aggregates product line pricing to increase by 3% to 5% for the year compared with 2013.
- Heritage aggregates product line direct production cost per ton to remain relatively flat.
-
Heritage aggregates-related downstream product lines to generate
between
$375 million and$385 million of net sales and$35 million to$40 million of gross profit. -
Heritage 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 approximate
$65 million . - Estimated effective income tax rate to approximate 39%.
-
Capital expenditures to approximate
$220 million to$230 million , which includes TXI operations as well as an increase in heritage operations. - Operating results from TXI locations are expected to essentially breakeven to earnings per diluted share, excluding nonrecurring costs and corporate overhead allocation.
The Company has started framing a preliminary 2015 outlook for its aggregates end-use markets based on its internal observations in conjunction with McGraw Hill Construction's economic forecast. The acquired TXI aggregates-related businesses will contribute significant incremental growth in 2015, driven in part by the realization of a full year of operations. The Company currently expects the following:
- Infrastructure market to increase mid-single digits.
- Nonresidential market to increase in the high single digits.
- Residential market to experience a double-digit increase.
-
ChemRock /Rail market to remain relatively flat.
The Company's outlook for the cement industry is largely consistent with PCA's forecast. The cement market is expected to increase in the high-single digits. However, this is not reflective of the synergistic improvements the Company expects to capture.
RISKS TO OUTLOOK
The full-year 2014 and preliminary 2015 outlook includes management's
assessment of the likelihood of certain risk factors that will affect
performance. The most significant risks to the Company's performance
will be the integration of TXI and Congress' actions and timing
surrounding federal highway funding and uncertainty over the funding
mechanism for the
The Company'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 Company'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 Company's long-haul distribution network. The Cement business is also energy intensive and fluctuations in the price of coal affects costs. 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 Company's long-haul network, particularly the
supply of rail cars and locomotive power and condition of rail
infrastructure to move trains, affects the Company's ability to
efficiently transport aggregate into certain markets, most notably
The Aggregates and Specialty Products businesses are also subject to
weather-related risks that can significantly affect production schedules
and profitability. The first and fourth quarters are most adversely
affected by winter weather. Hurricane activity in the
Risks to the outlook also include shipment declines as a result of economic events beyond the Company's control. In addition to the impact on nonresidential and residential construction, the Company is exposed to risk in its estimated outlook from credit markets and the availability of and interest cost related to its debt.
The Company'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 third 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 19808167.
Martin Marietta, an American-based company and a member of the S&P 500
Index, is a leading supplier of aggregates and heavy building materials,
with operations spanning 32 states,
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 federal highway funding and uncertainty
over the funding mechanism for the
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Unaudited Statements of Earnings | ||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
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2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales | $ | 917.9 | $ | 600.5 | $ | 1,899.6 | $ | 1,451.8 | ||||||||
Freight and delivery revenues | 85.8 | 64.8 | 202.0 | 158.7 | ||||||||||||
Total revenues | 1,003.7 | 665.3 | 2,101.6 | 1,610.5 | ||||||||||||
Cost of sales | 722.3 | 457.4 | 1,542.6 | 1,188.9 | ||||||||||||
Freight and delivery costs | 85.8 | 64.8 | 202.0 | 158.7 | ||||||||||||
Total cost of revenues | 808.1 | 522.2 | 1,744.6 | 1,347.6 | ||||||||||||
Gross profit | 195.6 | 143.1 | 357.0 | 262.9 | ||||||||||||
Selling, general and administrative expenses | 48.4 | 37.1 | 119.2 | 112.6 | ||||||||||||
Acquisition-related expenses, net | 26.1 | 0.1 | 41.2 | 0.7 | ||||||||||||
Other operating expenses and (income), net |
5.1 | (2.9 | ) | 0.3 | (5.6 | ) | ||||||||||
Earnings from operations | 116.0 | 108.8 | 196.3 | 155.2 | ||||||||||||
Interest expense | 19.8 | 13.5 | 45.0 | 40.6 | ||||||||||||
Other nonoperating (income) and expenses, net | (1.8 | ) | 0.1 | 1.3 | 0.2 | |||||||||||
Earnings from continuing operations before taxes on income | 98.0 | 95.2 | 150.0 | 114.4 | ||||||||||||
Income tax expense | 44.1 | 22.9 | 59.6 | 29.7 | ||||||||||||
Earnings from continuing operations | 53.9 | 72.3 | 90.4 | 84.7 | ||||||||||||
Loss on discontinued operations, net of related tax benefit of
|
(0.1 | ) | (0.3 | ) | (0.1 | ) | (0.4 | ) | ||||||||
Consolidated net earnings | 53.8 | 72.0 | 90.3 | 84.3 | ||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 0.1 | 0.2 | (1.3 | ) | (1.0 | ) | ||||||||||
Net earnings attributable to |
$ | 53.7 | $ | 71.8 | $ | 91.6 | $ | 85.3 | ||||||||
Net earnings (loss) per common share: | ||||||||||||||||
Basic from continuing operations attributable to common shareholders | $ | 0.80 | $ | 1.56 | $ | 1.71 | $ | 1.85 | ||||||||
Discontinued operations attributable to common shareholders | - | (0.01 | ) | - | (0.01 | ) | ||||||||||
$ | 0.80 | $ | 1.55 | $ | 1.71 | $ | 1.84 | |||||||||
Diluted from continuing operations attributable to common shareholders | $ | 0.79 | $ | 1.55 | $ | 1.70 | $ | 1.85 | ||||||||
Discontinued operations attributable to common shareholders | - | (0.01 | ) | - | (0.01 | ) | ||||||||||
$ | 0.79 | $ | 1.54 | $ | 1.70 | $ | 1.84 | |||||||||
Dividends per common share | $ | 0.40 | $ | 0.40 | $ | 1.20 | $ | 1.20 | ||||||||
Average number of common shares outstanding: | ||||||||||||||||
Basic | 67.1 | 46.2 | 53.3 | 46.1 | ||||||||||||
Diluted | 67.5 | 46.3 | 53.6 | 46.3 | ||||||||||||
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Unaudited Financial Highlights | ||||||||||||||||
(In millions) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
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2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales: | ||||||||||||||||
Aggregates Business: | ||||||||||||||||
|
$ | 244.3 | $ | 231.8 | $ | 569.6 | $ | 540.2 | ||||||||
|
68.0 | 64.9 | 194.2 | 171.4 | ||||||||||||
|
437.4 | 248.0 | 848.4 | 572.6 | ||||||||||||
Total Aggregates Business | 749.7 | 544.7 | 1,612.2 | 1,284.2 | ||||||||||||
Cement | 109.5 | - | 109.5 | - | ||||||||||||
Specialty Products | 58.7 | 55.8 | 177.9 | 167.6 | ||||||||||||
Total | $ | 917.9 | $ | 600.5 | $ | 1,899.6 | $ | 1,451.8 | ||||||||
Gross profit (loss): | ||||||||||||||||
Aggregates Business: | ||||||||||||||||
|
$ | 82.9 | $ | 78.8 | $ | 150.0 | $ | 137.9 | ||||||||
|
4.7 | 2.6 | 4.8 | (2.9 | ) | |||||||||||
|
64.6 | 41.5 | 116.7 | 68.6 | ||||||||||||
Total Aggregates Business | 152.2 | 122.9 | 271.5 | 203.6 | ||||||||||||
Cement | 24.2 | - | 24.2 | - | ||||||||||||
Specialty Products | 20.0 | 19.9 | 62.2 | 60.8 | ||||||||||||
Corporate | (0.8 | ) | 0.3 | (0.9 | ) | (1.5 | ) | |||||||||
Total | $ | 195.6 | $ | 143.1 | $ | 357.0 | $ | 262.9 | ||||||||
Selling, general and administrative expenses: | ||||||||||||||||
Aggregates Business: | ||||||||||||||||
|
$ | 13.0 | $ | 13.6 | $ | 39.1 | $ | 40.2 | ||||||||
|
4.4 | 4.4 | 13.2 | 13.4 | ||||||||||||
|
14.2 | 10.4 | 35.9 | 31.7 | ||||||||||||
Total Aggregates Business | 31.6 | 28.4 | 88.2 | 85.3 | ||||||||||||
Cement | 6.3 | - | 6.3 | - | ||||||||||||
Specialty Products | 2.4 | 2.6 | 7.3 | 7.6 | ||||||||||||
Corporate | 8.1 | 6.1 | 17.4 | 19.7 | ||||||||||||
Total | $ | 48.4 | $ | 37.1 | $ | 119.2 | $ | 112.6 | ||||||||
Earnings (Loss) from operations: | ||||||||||||||||
Aggregates Business: | ||||||||||||||||
|
$ | 71.2 | $ | 67.1 | $ | 116.7 | $ | 100.9 | ||||||||
|
0.3 | (1.4 | ) | (7.1 | ) | (14.9 | ) | |||||||||
|
92.1 | 31.6 | 125.1 | 39.8 | ||||||||||||
Total Aggregates Business | 163.6 | 97.3 | 234.7 | 125.8 | ||||||||||||
Cement | 18.3 | - | 18.3 | - | ||||||||||||
Specialty Products | 17.7 | 17.3 | 55.0 | 53.1 | ||||||||||||
Corporate | (83.6 | ) | (5.8 | ) | (111.7 | ) | (23.7 | ) | ||||||||
Total | $ | 116.0 | $ | 108.8 | $ | 196.3 | $ | 155.2 | ||||||||
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Unaudited Financial Highlights | |||||||||||||||
(In millions) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
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2014 | 2013 | 2014 | 2013 | ||||||||||||
Net sales by product line: | |||||||||||||||
Heritage: | |||||||||||||||
Aggregates Business: | |||||||||||||||
Aggregates | $ | 442.0 | $ | 411.2 | $ | 1,127.9 | $ | 1,016.2 | |||||||
Asphalt | 26.9 | 23.8 | 60.0 | 52.2 | |||||||||||
|
56.5 | 41.8 | 146.9 | 103.4 | |||||||||||
Road Paving | 60.3 | 67.9 | 113.3 | 112.4 | |||||||||||
Total Aggregates Business | 585.7 | 544.7 | 1,448.1 | 1,284.2 | |||||||||||
Specialty Products Business | 58.7 | 55.8 | 177.9 | 167.6 | |||||||||||
Acquisition: | |||||||||||||||
Aggregates Business: | |||||||||||||||
Aggregates | 36.8 | - | 36.8 | - | |||||||||||
|
127.2 | - | 127.3 | - | |||||||||||
Total Aggregates Business | 164.0 | - | 164.1 | - | |||||||||||
Cement Business | 109.5 | - | 109.5 | - | |||||||||||
Total | $ | 917.9 | $ | 600.5 | $ | 1,899.6 | $ | 1,451.8 | |||||||
Gross profit (loss) by product line: | |||||||||||||||
Heritage: | |||||||||||||||
Aggregates Business: | |||||||||||||||
Aggregates | $ | 119.0 | $ | 108.2 | $ | 229.2 | $ | 189.2 | |||||||
Asphalt | 7.4 | 7.3 | 10.8 | 9.8 | |||||||||||
|
8.9 | 3.1 | 18.9 | 4.9 | |||||||||||
Road Paving | 6.9 | 4.3 | 2.6 | (0.3 | ) | ||||||||||
Total Aggregates Business | 142.2 | 122.9 | 261.5 | 203.6 | |||||||||||
Specialty Products Business | 20.0 | 19.9 | 62.2 | 60.8 | |||||||||||
Corporate | (0.2 | ) | 0.3 | (0.3 | ) | (1.5 | ) | ||||||||
Acquisition: | |||||||||||||||
Aggregates Business: | |||||||||||||||
Aggregates | 0.3 | - | 0.3 | - | |||||||||||
|
9.7 | - | 9.7 | - | |||||||||||
Total Aggregates Business | 10.0 | - | 10.0 | - | |||||||||||
Cement Business | 24.2 | - | 24.2 | - | |||||||||||
Corporate | (0.6 | ) | (0.6 | ) | |||||||||||
Total | $ | 195.6 | $ | 143.1 | $ | 357.0 | $ | 262.9 | |||||||
Depreciation | $ | 59.8 | $ | 41.1 | $ | 140.8 | $ | 122.1 | |||||||
Depletion | 3.6 | 1.6 | 6.3 | 3.9 | |||||||||||
Amortization | 4.5 | 1.4 | 7.0 | 4.1 | |||||||||||
$ | 67.9 | $ | 44.1 | $ | 154.1 | $ | 130.1 | ||||||||
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Unaudited Financial Highlights | ||||||||||||||
(Dollars in millions) | ||||||||||||||
Three Months Ended | ||||||||||||||
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Heritage Martin Marietta(1) | Acquired Operations(2) | Nonrecurring TXI Transaction Items(3) | Consolidated | |||||||||||
2014 | 2014 | 2014 | 2014 | |||||||||||
Net sales | $ | 644.4 | $ | 273.5 | $ | - | $ | 917.9 | ||||||
Freight and delivery revenues | 71.8 | 14.0 | - | 85.8 | ||||||||||
Total revenues | 716.2 | 287.5 | - | 1,003.7 | ||||||||||
Cost of sales | 482.4 | 239.9 | - | 722.3 | ||||||||||
Freight and delivery costs | 71.8 | 14.0 | - | 85.8 | ||||||||||
Total cost of revenues | 554.2 | 253.9 | - | 808.1 | ||||||||||
Gross profit | 162.0 | 33.6 | - | 195.6 | ||||||||||
Selling, general and administrative expenses(4) | 32.6 | 15.8 | - | 48.4 | ||||||||||
Acquisition-related expenses, net | - | - | 26.1 | 26.1 | ||||||||||
Other operating (income) & expenses, net | 6.0 | (0.9 | ) | - | 5.1 | |||||||||
Earnings from operations | $ | 123.4 | $ | 18.7 | $ | (26.1 | ) | $ | 116.0 | |||||
(1) Heritage Martin Marietta is consolidated 2014 results excluding the operating results of acquired TXI locations and nonrecurring items directly attributable to the TXI acquisition. | ||||||||||||||
(2) Acquired operations reflect the operating results of all acquired TXI locations. | ||||||||||||||
(3) Nonrecurring TXI transaction items are attributable to the TXI acquisition and reflect acquisition related expenses, net | ||||||||||||||
(4) Selling, general and administrative expenses for acquired
operations include the allocation of |
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Three Months Ended | ||||||||||||||
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Heritage Martin Marietta | Heritage Martin Marietta |
Variance(5) - Favorable (Unfavorable) |
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2014 | 2013 | |||||||||||||
Net sales | $ | 644.4 | $ | 600.5 | $ | 43.9 | ||||||||
Freight and delivery revenues | 71.8 | 64.8 | 7.0 | |||||||||||
Total revenues | 716.2 | 665.3 | 50.9 | |||||||||||
Cost of sales | 482.4 | 457.4 | (25.0 | ) | ||||||||||
Freight and delivery costs | 71.8 | 64.8 | (7.0 | ) | ||||||||||
Total cost of revenues | 554.2 | 522.2 | (32.0 | ) | ||||||||||
Gross profit | 162.0 | 143.1 | 18.9 | |||||||||||
Selling, general and administrative expenses | 32.6 | 37.1 | 4.5 | |||||||||||
Acquisition-related expenses, net | - | 0.1 | 0.1 | |||||||||||
Other operating (income) & expenses, net | 6.0 | (2.9 | ) | (8.9 | ) | |||||||||
Earnings from operations | $ | 123.4 | $ | 108.8 | $ | 14.6 | ||||||||
(5) The variance reflects the change between Heritage Martin Marietta 2014 and Heritage Martin Marietta 2013. | ||||||||||||||
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Unaudited Financial Highlights | ||||||||||||||
(Dollars in millions) | ||||||||||||||
Nine Months Ended | ||||||||||||||
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Heritage Martin Marietta(1) | Acquired Operations(2) | Nonrecurring TXI Transaction Items(3) | Consolidated | |||||||||||
2014 | 2014 | 2014 | 2014 | |||||||||||
Net sales | $ | 1,626.1 | $ | 273.5 | $ | - | $ | 1,899.6 | ||||||
Freight and delivery revenues | 188.0 | 14.0 | - | 202.0 | ||||||||||
Total revenues | 1,814.1 | 287.5 | - | 2,101.6 | ||||||||||
Cost of sales | 1,302.7 | 239.9 | - | 1,542.6 | ||||||||||
Freight and delivery costs | 188.0 | 14.0 | - | 202.0 | ||||||||||
Total cost of revenues | 1,490.7 | 253.9 | - | 1,744.6 | ||||||||||
Gross profit | 323.4 | 33.6 | - | 357.0 | ||||||||||
Selling, general and administrative expenses(4) | 103.4 | 15.8 | - | 119.2 | ||||||||||
Acquisition-related expenses, net | - | - | 41.2 | 41.2 | ||||||||||
Other operating income, net | 1.2 | (0.9 | ) | - | 0.3 | |||||||||
Earnings from operations | $ | 218.8 | $ | 18.7 | $ | (41.2 | ) | $ | 196.3 | |||||
(1) Heritage Martin Marietta is consolidated 2014 results excluding the operating results of acquired TXI locations and nonrecurring items directly attributable to the TXI acquisition. |
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(2) Acquired operations reflect the operating results of all acquired TXI locations. |
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(3) Nonrecurring TXI transaction items are attributable to the TXI acquisition and reflect acquisition related expenses, net. |
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(4) Selling, general and administrative expenses for acquired
operations include the allocation of |
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Nine Months Ended | ||||||||||||||
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Heritage Martin Marietta | Heritage Martin Marietta |
Variance(5) - Favorable (Unfavorable) |
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2014 | 2013 | |||||||||||||
Net sales | $ | 1,626.1 | $ | 1,451.8 | $ | 174.3 | ||||||||
Freight and delivery revenues | 188.0 | 158.7 | 29.3 | |||||||||||
Total revenues | 1,814.1 | 1,610.5 | 203.6 | |||||||||||
Cost of sales | 1,302.7 | 1,188.9 | (113.8 | ) | ||||||||||
Freight and delivery costs | 188.0 | 158.7 | (29.3 | ) | ||||||||||
Total cost of revenues | 1,490.7 | 1,347.6 | (143.1 | ) | ||||||||||
Gross profit | 323.4 | 262.9 | 60.5 | |||||||||||
Selling, general and administrative expenses | 103.4 | 112.6 | 9.2 | |||||||||||
Acquisition-related expenses, net | - | 0.7 | 0.7 | |||||||||||
Other operating income, net | 1.2 | (5.6 | ) | (6.8 | ) | |||||||||
Earnings from operations | $ | 218.8 | $ | 155.2 | $ | 63.6 | ||||||||
(5) The variance reflects the change between Heritage Martin Marietta 2014 and Heritage Martin Marietta 2013. |
||||||||||||||
|
||||||||||||
Unaudited Financial Highlights - |
||||||||||||
(Dollars in millions) | ||||||||||||
Three Months Ended | ||||||||||||
|
||||||||||||
Heritage West | Acquired Operations | West | ||||||||||
2014(1) |
2014(2) |
2014 | ||||||||||
Net sales | $ | 273.4 | $ | 164.0 | $ | 437.4 | ||||||
Freight and delivery revenues | 34.1 | 7.8 | 41.9 | |||||||||
Total revenues | 307.5 | 171.8 | 479.3 | |||||||||
Cost of sales | 218.8 | 154.0 | 372.8 | |||||||||
Freight and delivery costs | 34.1 | 7.8 | 41.9 | |||||||||
Total cost of revenues | 252.9 | 161.8 | 414.7 | |||||||||
Gross profit | $ | 54.6 | $ | 10.0 | $ | 64.6 | ||||||
Add back: Impact of selling acquired inventory due to the markup to fair value(3) |
7.1 | |||||||||||
Adjusted gross profit(4) |
$ | 17.1 | ||||||||||
(1) Heritage West 2014 results reflect the 2014 West results less the operating results of acquired TXI locations. |
||||||||||||
(2) Acquired operations reflect the operating results for all
acquired TXI aggregates and ready mixed concrete operations
reported in the |
||||||||||||
(3) Reflects the nonrecurring impact of writing up acquired aggregates and ready mixed concrete acquired inventories to fair value at the acquisition date. |
||||||||||||
(4) Represents non-GAAP measure and is presented so investors and analysts can evaluate and forecast future results of operations that will not include the one-time cost resulting from selling acquired inventory. |
||||||||||||
Three Months Ended | ||||||||||||
|
||||||||||||
Heritage West | West |
Variance(5) - Favorable (Unfavorable) |
||||||||||
2014 | 2013 | |||||||||||
Net sales | $ | 273.4 | $ | 248.0 | $ | 25.4 | ||||||
Freight and delivery revenues | 34.1 | 31.5 | 2.6 | |||||||||
Total revenues | 307.5 | 279.5 | 28.0 | |||||||||
Cost of sales | 218.8 | 206.5 | (12.3 | ) | ||||||||
Freight and delivery costs | 34.1 | 31.5 | (2.6 | ) | ||||||||
Total cost of revenues | 252.9 | 238.0 | (14.9 | ) | ||||||||
Gross profit | $ | 54.6 | $ | 41.5 | $ | 13.1 | ||||||
(5) The variance reflects the change between Heritage West 2014 and West 2013. |
||||||||||||
|
||||||||||||
Unaudited Financial Highlights - |
||||||||||||
(Dollars in millions) | ||||||||||||
Nine Months Ended |
||||||||||||
|
||||||||||||
Heritage West | Acquired Operations | West | ||||||||||
2014((1)) |
2014((2)) |
2014 | ||||||||||
Net sales | $ | 684.4 | $ | 164.0 | $ | 848.4 | ||||||
Freight and delivery revenues | 100.7 | 7.8 | 108.5 | |||||||||
Total revenues | 785.1 | 171.8 | 956.9 | |||||||||
Cost of sales | 577.7 | 154.0 | 731.7 | |||||||||
Freight and delivery costs | 100.7 | 7.8 | 108.5 | |||||||||
Total cost of revenues | 678.4 | 161.8 | 840.2 | |||||||||
Gross profit | $ | 106.7 | $ | 10.0 | $ | 116.7 | ||||||
Add back: Impact of selling acquired inventory due to the markup to fair value(3) |
7.1 | |||||||||||
Adjusted gross profit(4) |
$ | 17.1 | ||||||||||
(1) Heritage West 2014 results reflect the 2014 West results less the operating results of acquired TXI locations. | ||||||||||||
(2) Acquired operations reflect the operating results for all
acquired TXI aggregates and ready mixed concrete operations reported
in the |
||||||||||||
(3) Reflects the nonrecurring impact of writing up acquired aggregates and ready mixed concrete acquired inventories to fair value at the acquisition date. | ||||||||||||
(4) Represents non-GAAP measure and is presented so investors and analysts can evaluate and forecast future results of operations that will not include the one-time cost resulting from selling acquired inventory. | ||||||||||||
Nine Months Ended |
||||||||||||
|
||||||||||||
Heritage West | West |
Variance(5) - Favorable (Unfavorable) |
||||||||||
2014 | 2013 | |||||||||||
Net sales | $ | 684.4 | $ | 572.6 | $ | 111.8 | ||||||
Freight and delivery revenues | 100.7 | 77.3 | 23.4 | |||||||||
Total revenues | 785.1 | 649.9 | 135.2 | |||||||||
Cost of sales | 577.7 | 504.0 | (73.7 | ) | ||||||||
Freight and delivery costs | 100.7 | 77.3 | (23.4 | ) | ||||||||
Total cost of revenues | 678.4 | 581.3 | (97.1 | ) | ||||||||
Gross profit | $ | 106.7 | $ | 68.6 | $ | 38.1 | ||||||
(5) The variance reflects the change between Heritage West 2014 and West 2013. | ||||||||||||
|
|||||||||
Balance Sheet Data | |||||||||
(In millions) | |||||||||
|
|
|
|||||||
2014 | 2013 | 2013 | |||||||
(Unaudited) | (Audited) | (Unaudited) | |||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 73.6 | $ | 42.4 | $ | 57.2 | |||
Accounts receivable, net | 523.9 | 245.4 | 331.0 | ||||||
Inventories, net | 475.3 | 347.3 | 350.4 | ||||||
Other current assets | 140.0 | 120.2 | 107.0 | ||||||
Property, plant and equipment, net | 3,378.0 | 1,799.3 | 1,782.6 | ||||||
Intangible assets, net | 2,642.5 | 665.2 | 665.7 | ||||||
Other noncurrent assets | 105.6 | 40.0 | 43.2 | ||||||
Total assets | $ | 7,338.9 | $ | 3,259.8 | $ | 3,337.1 | |||
LIABILITIES AND EQUITY | |||||||||
Current maturities of long-term debt and short-term facilities | $ | 14.3 | $ | 12.4 | $ | 6.2 | |||
Other current liabilities | 422.7 | 198.1 | 220.2 | ||||||
Long-term debt (excluding current maturities) | 1,603.9 | 1,018.5 | 1,107.2 | ||||||
Other noncurrent liabilities | 922.4 | 455.9 | 504.6 | ||||||
Total equity | 4,375.6 | 1,574.9 | 1,498.9 | ||||||
Total liabilities and equity | $ | 7,338.9 | $ | 3,259.8 | $ | 3,337.1 | |||
|
||||||||
Unaudited Statements of Cash Flows | ||||||||
(In millions) | ||||||||
Nine Months Ended | ||||||||
|
||||||||
2014 | 2013 | |||||||
Operating activities: | ||||||||
Consolidated net earnings | $ | 90.3 | $ | 84.3 | ||||
Adjustments to reconcile consolidated net earnings to net cash provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 154.1 | 130.1 | ||||||
Stock-based compensation expense | 6.4 | 5.4 | ||||||
Gains on divestitures and sales of assets | (47.8 | ) | (1.0 | ) | ||||
Deferred income taxes | 45.0 | 19.2 | ||||||
Excess tax benefits from stock-based compensation | (2.4 | ) | (2.0 | ) | ||||
Other items, net |
1.7 | (0.7 | ) | |||||
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: |
||||||||
Accounts receivable, net | (120.1 | ) | (108.1 | ) | ||||
Inventories, net | 1.3 | (14.8 | ) | |||||
Accounts payable | 26.5 | 27.7 | ||||||
Other assets and liabilities, net | 46.6 | 25.5 | ||||||
Net cash provided by operating activities | 201.6 | 165.6 | ||||||
Investing activities: | ||||||||
Additions to property, plant and equipment | (138.6 | ) | (102.4 | ) | ||||
Acquisitions, net | (0.2 | ) | (64.4 | ) | ||||
Cash received in acquisition | 59.9 | - | ||||||
Proceeds from divestitures and sales of assets | 113.2 | 3.2 | ||||||
Repayments from affiliate | 0.9 | - | ||||||
Payment of railcar construction advances | (14.5 | ) | - | |||||
Reimbursement of railcar construction advances | 14.5 | - | ||||||
Loan to affiliate | - | (3.4 | ) | |||||
Net cash provided by (used for) investing activities | 35.2 | (167.0 | ) | |||||
Financing activities: | ||||||||
Borrowings of long-term debt | 868.8 | 355.5 | ||||||
Repayments of long-term debt | (1,024.1 | ) | (290.2 | ) | ||||
Payments on capital leases | (2.2 | ) | - | |||||
Change in bank overdraft | (2.5 | ) | 10.4 | |||||
Dividends paid | (64.3 | ) | (55.6 | ) | ||||
Debt issue costs | (2.4 | ) | (0.5 | ) | ||||
Purchase of remaining interest in existing subsidiaries | (19.5 | ) | - | |||||
Excess tax benefits from stock-based compensation | 2.4 | 2.0 | ||||||
Issuances of common stock | 38.2 | 11.6 | ||||||
Net cash (used for) provided by financing activities | (205.6 | ) | 33.2 | |||||
Net increase in cash and cash equivalents | 31.2 | 31.8 | ||||||
Cash and cash equivalents, beginning of period | 42.4 | 25.4 | ||||||
Cash and cash equivalents, end of period | $ | 73.6 | $ | 57.2 | ||||
|
||||||||||||||||
Unaudited Operational Highlights | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
|
|
|||||||||||||||
Volume | Pricing | Volume | Pricing | |||||||||||||
Volume/Pricing Variance(1) |
||||||||||||||||
Heritage Aggregates Product Line:(2) |
||||||||||||||||
|
1.6 | % | 3.7 | % | 1.6 | % | 3.7 | % | ||||||||
|
(0.3 | %) | 5.5 | % | 6.6 | % | 6.1 | % | ||||||||
|
5.2 | % | 8.3 | % | 15.5 | % | 3.8 | % | ||||||||
Heritage Aggregates Operations | 2.7 | % | 5.1 | % | 7.5 | % | 3.5 | % | ||||||||
Aggregates Product Line(3) |
13.8 | % | 5.8 | % | 12.1 | % | 3.8 | % | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
|
|
|||||||||||||||
Shipments (tons in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Heritage Aggregates Product Line:(2) |
||||||||||||||||
|
20,971 | 20,632 | 48,147 | 47,385 | ||||||||||||
|
4,953 | 4,971 | 13,930 | 13,064 | ||||||||||||
|
14,764 | 14,028 | 42,204 | 36,536 | ||||||||||||
Heritage Aggregates Operations | 40,688 | 39,631 | 104,281 | 96,985 | ||||||||||||
Acquisitions | 4,419 | - | 4,419 | - | ||||||||||||
Aggregates Product Line(3) |
45,107 | 39,631 | 108,700 | 96,985 | ||||||||||||
(1) Volume/pricing variances reflect the percentage increase (decrease) from the comparable period in the prior year. | ||||||||||||||||
(2) Heritage Aggregates Product Line and Heritage Aggregates Operations exclude volume and pricing data for acquisitions that have not been included in prior-year operations for the comparable period. |
||||||||||||||||
(3) Aggregates Product Line includes all acquisitions from the date of acquisition and divestitures through the date of disposal. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
|
|
|||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Unit shipments by product line: | ||||||||||||||||
Heritage: | ||||||||||||||||
Aggregates tons - external customers | 38,981 | 38,109 | 100,117 | 93,516 | ||||||||||||
Internal aggregates tons used in other product lines | 1,707 | 1,522 | 4,164 | 3,469 | ||||||||||||
Total aggregates tons | 40,688 | 39,631 | 104,281 | 96,985 | ||||||||||||
Asphalt tons - external customers | 476 | 464 | 1,182 | 1,072 | ||||||||||||
Internal asphalt tons used in road paving business | 777 | 761 | 1,347 | 1,257 | ||||||||||||
Total asphalt tons | 1,253 | 1,225 | 2,529 | 2,329 | ||||||||||||
|
580 | 496 | 1,539 | 1,261 | ||||||||||||
Acquisitions: | ||||||||||||||||
Aggregates tons - external customers | 3,174 | - | 3,174 | - | ||||||||||||
Internal aggregates tons used in other product lines | 1,245 | - | 1,245 | - | ||||||||||||
Total aggregates tons | 4,419 | - | 4,419 | - | ||||||||||||
|
1,466 | - | 1,466 | - | ||||||||||||
Cement tons-external customers | 1,272 | - | 1,272 | - | ||||||||||||
Internal cement tons used in other product lines | 253 | - | 253 | - | ||||||||||||
|
1,525 | - | 1,525 | - | ||||||||||||
Average unit sales price by product line (including internal sales): | ||||||||||||||||
Heritage: | ||||||||||||||||
Aggregates (per ton) | $ | 11.09 | $ | 10.55 | $ | 10.99 | $ | 10.62 | ||||||||
Asphalt (per ton) | $ | 41.24 | $ | 41.76 | $ | 41.68 | $ | 42.11 | ||||||||
|
$ | 94.72 | $ | 83.44 | $ | 92.39 | $ | 82.59 | ||||||||
Acquisitions: | ||||||||||||||||
Aggregates (per ton) | $ | 11.83 | $ | - | $ | 11.83 | $ | - | ||||||||
|
$ | 86.10 | $ | - | $ | 86.10 | $ | - | ||||||||
Cement(5) (per ton) | $ | 85.95 | $ | - | $ | 85.95 | $ | - | ||||||||
(4) Ready mixed operations acquired by Martin Marietta on |
||||||||||||||||
|
||||||||||||||||
(5) Cement business acquired by Martin Marietta on |
||||||||||||||||
|
|
||||||||||||||||
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 and nine months ended |
||||||||||||||||
Gross Margin in Accordance with Generally Accepted Accounting Principles |
Three Months Ended | Nine Months Ended | ||||||||||||||
|
|
|
||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Gross profit | $ | 195.6 | $ | 143.1 | $ | 357.0 | $ | 262.9 | ||||||||
Total revenues | $ | 1,003.7 | $ | 665.3 | $ | 2,101.6 | $ | 1,610.5 | ||||||||
Gross margin | 19.5 | % | 21.5 | % | 17.0 | % | 16.3 | % | ||||||||
Gross Margin Excluding Freight and Delivery Revenues |
Three Months Ended | Nine Months Ended | ||||||||||||||
|
|
|||||||||||||||
|
2014 | 2013 | 2014 | 2013 | ||||||||||||
Gross profit | $ | 195.6 | $ | 143.1 | $ | 357.0 | $ | 262.9 | ||||||||
Total revenues | $ | 1,003.7 | $ | 665.3 | $ | 2,101.6 | $ | 1,610.5 | ||||||||
Less: Freight and delivery revenues | (85.8 | ) | (64.8 | ) | (202.0 | ) | (158.7 | ) | ||||||||
Net sales | $ | 917.9 | $ | 600.5 | $ | 1,899.6 | $ | 1,451.8 | ||||||||
Gross margin excluding freight and delivery revenues | 21.3 | % | 23.8 | % | 18.8 | % | 18.1 | % | ||||||||
Operating Margin in Accordance with Generally Accepted Accounting Principles |
Three Months Ended | Nine Months Ended | ||||||||||||||
|
|
|
||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Earnings from operations | $ | 116.0 | $ | 108.8 | $ | 196.3 | $ | 155.2 | ||||||||
Total revenues | $ | 1,003.7 | $ | 665.3 | $ | 2,101.6 | $ | 1,610.5 | ||||||||
Operating margin | 11.6 | % | 16.4 | % | 9.3 | % | 9.6 | % | ||||||||
Operating Margin Excluding Freight and Delivery Revenues |
Three Months Ended | Nine Months Ended | ||||||||||||||
|
|
|
||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Earnings from operations | $ | 116.0 | $ | 108.8 | $ | 196.3 | $ | 155.2 | ||||||||
Total revenues | $ | 1,003.7 | $ | 665.3 | $ | 2,101.6 | $ | 1,610.5 | ||||||||
Less: Freight and delivery revenues | (85.8 | ) | (64.8 | ) | (202.0 | ) | (158.7 | ) | ||||||||
Net sales | $ | 917.9 | $ | 600.5 | $ | 1,899.6 | $ | 1,451.8 | ||||||||
Operating margin excluding freight and delivery revenues | 12.6 | % | 18.1 | % | 10.3 | % | 10.7 | % | ||||||||
|
||||||||
Non-GAAP Financial Measures (continued) | ||||||||
(Dollars, other than earnings per share amounts, and number of shares in millions) | ||||||||
Adjusted consolidated earnings from operations and adjusted
earnings per diluted share for the three and nine months ended
|
||||||||
The following shows the calculation of the impact of
acquisition-related expenses, net, related to the combination with
TXI on the earnings per diluted share for the three and nine
months ended |
||||||||
Three Months | Nine Months | |||||||
Ended | Ended | |||||||
Acquisition-related expenses, net, related to the business combination with TXI | $ | 26.1 | $ | 41.1 | ||||
Income tax expense | 11.5 | 7.5 | ||||||
After-tax impact of acquisition-related expenses, net, related to the business combination with TXI | $ | 37.6 | $ | 48.6 | ||||
Diluted average number of common shares outstanding | 67.5 | 53.6 | ||||||
Per diluted share impact of acquisition-related expenses, net, related to the business combination with TXI | $ | (0.56 | ) | $ | (0.91 | ) | ||
The following shows the calculation of the earnings per diluted
share impact of selling acquired inventory due to the markup to
fair value as part of accounting for the TXI acquisition for the
three and nine months ended |
||||||||
Three Months | Nine Months | |||||||
Ended | Ended | |||||||
Earnings impact of selling acquired inventory due to markup to fair value as part of accounting for the TXI acquisition | $ | (10.9 | ) | $ | (10.9 | ) | ||
Income tax benefit | 4.0 | 4.0 | ||||||
After-tax impact of selling acquired inventory due to markup to fair value as part of accounting for the TXI acquisition | $ | (6.9 | ) | $ | (6.9 | ) | ||
Diluted average number of common shares outstanding | 67.5 | 53.6 | ||||||
Per diluted share impact of selling acquired inventory due to markup to fair value as part of accounting for the TXI acquisition | $ | (0.10 | ) | $ | (0.13 | ) | ||
The following reconciles consolidated earnings from operations
in accordance with generally accepted accounting principles for
the three and nine months ended |
||||||||
Three Months | Nine Months | |||||||
Ended | Ended | |||||||
Consolidated earnings from operations in accordance with generally accepted accounting principles | $ | 116.0 | $ | 196.3 | ||||
Add back: Acquisition-related expenses, net, related to the business combination with TXI | 26.1 | 41.1 | ||||||
Impact of selling acquired inventory due to the markup to fair value as part of the business combination with TXI | 10.9 | 10.9 | ||||||
Adjusted consolidated earnings from operations | $ | 153.0 | $ | 248.3 | ||||
The following reconciles the earnings per diluted share in
accordance with generally accepted accounting principles for the
three and nine months ended |
||||||||
Three Months | Nine Months | |||||||
Ended | Ended | |||||||
Earnings per diluted share in accordance with generally accepted accounting principles | $ | 0.79 | $ | 1.70 | ||||
Add back: Per diluted share impact of acquisition-related expenses, net, related to the business combination with TXI | 0.56 | 0.91 | ||||||
Per diluted share impact of selling acquired inventory due to the markup to fair value as part of the business combination with TXI | 0.10 | 0.13 | ||||||
Adjusted earnings per diluted share | $ | 1.45 | $ | 2.74 | ||||
Adjusted gross profit for the three months ended |
||||||||
The following reconciles gross margin to adjusted gross margin
for the three months ended |
||||||||
Cement | Newly Acquired | |||||||
Business | Businesses | |||||||
Gross margin in accordance with generally accepted accounting principles | $ | 24.2 | $ | 33.6 | ||||
Add back: Impact of selling acquired inventory due to the markup to fair value as part of the business combination with TXI | 3.7 | 10.9 | ||||||
Adjusted gross margin | $ | 27.9 | $ | 44.5 | ||||
|
|||||||||||||
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 3.75 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 |
$ | 127.6 | |||||||||||
Add back: | |||||||||||||
Interest expense | 57.8 | ||||||||||||
Income tax expense | 73.9 | ||||||||||||
Depreciation, depletion and amortization expense | 195.3 | ||||||||||||
Stock-based compensation expense | 7.9 | ||||||||||||
Acquisition related expenses, net | 42.5 | ||||||||||||
Deduct: | |||||||||||||
Interest income | (0.5 | ) | |||||||||||
TXI EBITDA pre-acquisition ( |
60.9 | ||||||||||||
Consolidated EBITDA, as defined | $ | 565.4 | |||||||||||
Consolidated Debt, including debt for which the Corporation is a
co-borrower, at |
$ | 1,642.6 | |||||||||||
Consolidated Debt-to-Consolidated EBITDA, as defined, at |
2.91 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 and nine months ended |
|||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
|
|
||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Earnings Before Interest, Income Taxes, Depreciation, Depletion and Amortization (EBITDA) | $ | 184.8 | $ | 151.6 | $ | 348.7 | $ | 283.9 | |||||
A Reconciliation of Net Earnings Attributable to |
|||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
|
|
||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Net Earnings Attributable to |
$ | 53.7 | $ | 71.8 | $ | 91.6 | $ | 85.3 | |||||
Add back: | |||||||||||||
Interest Expense | 19.8 | 13.5 | 45.0 | 40.6 | |||||||||
Income Tax Expense for Controlling Interests | 44.1 | 22.7 | 59.5 | 29.3 | |||||||||
Depreciation, Depletion and Amortization Expense | 67.2 | 43.6 | 152.6 | 128.7 | |||||||||
EBITDA | $ | 184.8 | $ | 151.6 | $ | 348.7 | $ | 283.9 |
MLM-E
Executive
Vice President and Chief Financial Officer
www.martinmarietta.com
Source:
News Provided by Acquire Media