Martin Marietta Reports First-Quarter 2020 Results
LONG-TERM FUNDAMENTALS OF BUSINESS REMAIN POSITIVE
Shipments and Pricing Increased Across Majority of
Cement and Magnesia Specialties Delivered First-Quarter Margin Expansion
Company Strengthened Balance Sheet through Long-Term Debt Offering in Early March
Company Well Prepared for COVID-19 Challenging Operating Conditions
Withdraws Previously-Issued Full-Year 2020 Guidance in Light of COVID-19 Uncertainty
Highlights include:
Quarter Ended |
|||||||
($ in millions, except per share) | 2020 | 2019 | |||||
Total revenues 1 | $ | 958.2 | $ | 939.0 | |||
Products and services revenues 2 | $ | 891.0 | $ | 878.3 | |||
Building Materials business | $ | 831.1 | $ | 809.1 | |||
Magnesia Specialties business | $ | 59.9 | $ | 69.2 | |||
Gross profit | $ | 142.4 | $ | 142.9 | |||
Earnings from operations | $ | 57.8 | $ | 69.2 | |||
Net earnings attributable to Martin Marietta | $ | 25.9 | $ | 42.9 | |||
Adjusted EBITDA 3 | $ | 149.0 | $ | 158.2 | |||
Earnings per diluted share | $ | 0.41 | $ | 0.68 |
1 Total revenues include the sales of products and services to customers (net of any discounts or allowances) and freight revenues.
2 Products and services revenues include the sales of aggregates, cement, ready mixed concrete, asphalt and Magnesia Specialties products, and paving services to customers, and exclude related freight revenues.
3 Earnings Before Interest, Taxes, Depreciation, Depletion and Amortization and the Noncash Earnings/Loss from Nonconsolidated Equity Affiliates, or Adjusted EBITDA, is a non-GAAP financial measure. See Appendix to this earnings release for a reconciliation to net earnings attributable to Martin Marietta.
“Our Company’s commitment to operational excellence, disciplined approach to growth and tradition of preparedness have positioned us well to weather this period of uncertainty. We have thoughtfully developed and consistently executed on our strategic plans, positioning our business as an aggregates leader in attractive high-growth geographies, aligning our product offerings to leverage strategic cement and targeted downstream opportunities and prudently allocating capital while maintaining financial flexibility. In doing so, we have built a business that is durable and resilient. While Martin Marietta is not immune to the impact of COVID-19, we believe our Company is well prepared to meet the current and coming challenges.
“Importantly, the Company’s balance sheet remains healthy and we have ample liquidity for the foreseeable future. Martin Marietta, along with our customers, continues to operate as an “essential business” in most jurisdictions and, through the end of April, we have seen minimal disruption to our operations, workforce and supply chains from the effects of COVID-19 and related government agency responses. Nonetheless, we anticipate product demand will soften in the coming months, as businesses and governments prioritize actions in response to COVID-19. Our team has plans for a variety of scenarios and will react appropriately to changing conditions. We will continue to closely monitor the situation and focus on safeguarding our stakeholders’ health and well-being, operating safely and efficiently, preserving liquidity and aligning costs with customer demand.”
First-Quarter Operating Results
(All comparisons are versus the prior-year quarter unless noted otherwise)
The COVID-19 pandemic and related public policy responses largely began in mid-March in
Quarter ended |
|||||||||
($ in millions) | Revenues | Gross profit (loss) |
Gross margin | ||||||
Building Materials business: | |||||||||
Products and services: | |||||||||
Aggregates | $ | 570.3 | $ | 93.4 | 16.4 | % | |||
Cement | 106.6 | 27.3 | 25.6 | % | |||||
Ready mixed concrete | 189.7 | 5.9 | 3.1 | % | |||||
Asphalt and paving | 18.1 | (8.1 | ) | NM | |||||
Less: interproduct revenues | (53.6 | ) | — | — | |||||
Products and services | 831.1 | 118.5 | 14.3 | % | |||||
Freight | 61.4 | (0.3 | ) | NM | |||||
Total |
892.5 | 118.2 | 13.2 | % | |||||
Magnesia Specialties business: | |||||||||
Products and services | 59.9 | 26.1 | 43.5 | % | |||||
Freight | 5.8 | (0.9 | ) | NM | |||||
Total Magnesia Specialties business | 65.7 | 25.2 | 38.4 | % | |||||
Corporate | — | (1.0 | ) | NM | |||||
Total | $ | 958.2 | $ | 142.4 | 14.9 | % |
Quarter ended |
|||||||||
($ in millions) | Revenues | Gross profit (loss) |
Gross margin | ||||||
Building Materials business: | |||||||||
Products and services: | |||||||||
Aggregates | $ | 544.9 | $ | 98.0 | 18.0 | % | |||
Cement | 99.0 | 13.8 | 13.9 | % | |||||
Ready mixed concrete | 211.2 | 14.5 | 6.9 | % | |||||
Asphalt and paving | 12.4 | (8.3 | ) | NM | |||||
Less: interproduct revenues | (58.4 | ) | — | — | |||||
Products and services | 809.1 | 118.0 | 14.6 | % | |||||
Freight | 55.8 | (0.2 | ) | NM | |||||
Total |
864.9 | 117.8 | 13.6 | % | |||||
Magnesia Specialties business: | |||||||||
Products and services | 69.2 | 26.5 | 38.5 | % | |||||
Freight | 4.9 | (1.0 | ) | NM | |||||
Total Magnesia Specialties business | 74.1 | 25.5 | 34.5 | % | |||||
Corporate | — | (0.4 | ) | NM | |||||
Total | $ | 939.0 | $ | 142.9 | 15.2 | % |
Building Materials Business
First-quarter operating results demonstrated the strength of overall demand, most notably in
Aggregates
First-quarter aggregates shipments and pricing improved 2.3 percent and 2.7 percent, respectively, compared with the prior-year quarter.
- Shipments for the
Mid-America Group increased 4.3 percent. Robust warehouse and data center construction activity inIowa andIndiana more than offset the anticipated lower infrastructure shipments inNorth Carolina . Geographic mix limited pricing growth to 1.4 percent.
- Shipments for the
Southeast Group decreased 3.2 percent as significant rainfall hindered otherwise robust construction activity. Pricing growth of 4.7 percent reflected the underlying strength of theNorth Georgia andFlorida markets.
West Group shipments increased 2.5 percent, with double-digit growth inColorado partially offset by weather-impacted construction delays inTexas . Pricing improved 3.7 percent.
Martin Marietta’s first-quarter aggregates shipments by end use are as follows (all comparisons are versus the prior-year quarter):
- Aggregates shipments to the infrastructure market increased, driven by large projects in
Texas ,Colorado ,Iowa andIndiana . The infrastructure market accounted for 32 percent of first-quarter aggregates shipments, which is below the Company’s most recent ten-year annual average of 45 percent but consistent with historical first-quarter trends.
- Aggregates shipments to the nonresidential market increased modestly following double-digit growth in commercial and heavy industrial construction activity in the prior-year quarter. The Company continued to benefit from distribution center, warehouse and data center projects in key geographies, including
Texas ,Colorado ,Georgia ,Florida andIowa , as well as the early phases of several large energy-sector projects along theGulf Coast . The nonresidential market represented 36 percent of first-quarter aggregates shipments.
- Aggregates shipments to the residential market declined slightly when compared with the robust growth in homebuilding activity in the prior-year quarter. Ongoing homebuilding activity in
Texas andGeorgia was hindered by significant rainfall during first-quarter 2020. The residential market accounted for 25 percent of first-quarter aggregates shipments.
- The
ChemRock /Rail market accounted for the remaining 7 percent of first-quarter aggregates shipments. Volumes to this end use increased, driven by improved ballast shipments to the Class I western railroads and higher agricultural lime shipments.
Aggregates product gross margin declined 160 basis points despite improved operating leverage, largely driven by geographic mix and a
Cement
First-quarter cement shipments increased 5.2 percent, driven by strong underlying demand in
Downstream businesses
Ready mixed concrete shipments decreased 14.1 percent, resulting from weather-impacted project delays in
Magnesia Specialties Business
Magnesia Specialties product revenues decreased 13.4 percent to
Consolidated
Total cost of revenues for first-quarter 2020 included
Other operating income, net, for the prior-year quarter included the reversal of
Other nonoperating expense, net, for first-quarter 2020 included
The Company recorded a discrete income tax benefit of
Earnings per diluted share declined
Liquidity and Capital Resources
Cash provided by operating activities was
Cash paid for property, plant and equipment additions was
In
The Company had
Commitment to Enhance Long-Term Shareholder Value
Martin Marietta is dedicated to disciplined capital allocation that preserves the Company’s financial flexibility and further enhances shareholder value. The Company’s capital allocation priorities currently remain unchanged and include value-enhancing acquisitions that promote the successful execution of the Company’s strategic growth plan, organic capital investment and the return of cash to shareholders through meaningful and sustainable dividends and share repurchases.
The Company has returned
Full-Year Outlook
The Company has withdrawn its 2020 full-year guidance issued on
- Of the Company’s three primary end uses, the outlook for infrastructure construction, particularly for aggregates-intensive highways and streets, is expected to be the most near-term resilient. While the majority of
the United States has currently been ordered to shelter in place, most state Departments of Transportation (DOTs) are currently operational and continue to advance transportation projects, capitalizing on the reduction of vehicles on the road and related traffic congestion.Florida , for example, recently announced plans to accelerate$2.1 billion of critical transportation projects. That said, state DOTs are experiencing lower revenue collections and states may have other short-term funding needs relating to the COVID-19 impact that may decrease the scale and/or postpone the timing of future construction. Industry representatives are actively engaging withCongress to address surface transportation infrastructure in the “Phase 4” emergency relief and economic recovery COVID-19 legislation, including an immediate$49.95 billion in flexible federal funding to offset an estimated 30 percent loss in state transportation revenues in the next 18 months and the passage of a comprehensive major surface transportation reauthorization package.
- Nonresidential construction activity on existing projects has continued in most regions. However, according to an
April 2020 survey published by theAssociated General Contractors of America , an overwhelming number of respondents indicated that commercial projects in the design or planning stages are being delayed or canceled. Unlike commercial activity, industrial construction is not expected to experience significant near-term disruption from COVID-19. Warehouses, distribution centers and data centers are expected to perform relatively well in the current environment as businesses increase e-commerce activity, secure regional supply chains and become more reliant on cloud and network services. Similarly, large energy-sector projects along theGulf Coast ofTexas that are actively underway are expected to continue.
- Residential construction activity is expected to decline in 2020, as homebuilders and homebuyers delay plans in the wake of unprecedented economic uncertainty. Supported by third-party forecasts, management believes the residential decline will be widespread but not as persistent as the period of low activity seen during the Great Recession as Freddie Mac estimates that 2.5 million housing units are needed to address the current nationwide housing shortage. This situation is particularly evident in states with significant undersupply, including
Texas ,Colorado ,North Carolina andFlorida . On a national level, housing starts remain below the 50-year annual average of 1.5 million despite notable population gains.
Non-GAAP Financial Information
This earnings release contains financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP). Reconciliations of non-GAAP financial measures to the closest GAAP measures are included in the accompanying Appendix to this earnings release. Management believes these non-GAAP measures are commonly used financial measures for investors to evaluate the Company’s operating performance, and when read in conjunction with the Company’s consolidated financial statements, present a useful tool to evaluate the Company’s ongoing operations, performance from period to period and anticipated performance. In addition, these are some of the factors the Company uses in internal evaluations of the overall performance of its businesses. Management acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.
Conference Call Information
The Company will discuss its first-quarter 2020 earnings results on a conference call and an online web simulcast today (
About Martin Marietta
Martin Marietta, a member of the S&P 500 Index, is an American-based company and a leading supplier of building materials, including aggregates, cement, ready mixed concrete and asphalt. Through a network of operations spanning 27 states,
Investor Contact:
Vice President, Investor Relations
(919) 783-4691
Suzanne.Osberg@martinmarietta.com
MLM-E.
If you are interested in Martin Marietta stock, management recommends that, at a minimum, you read the Company’s current annual report and Forms 10-K, 10-Q and 8-K reports to the
Investors are cautioned that all statements in this release that relate to the future involve risks and uncertainties, and are based on assumptions that the Company believes in good faith are reasonable but which may be materially different from actual results. These statements, which are forward-looking statements under the Private Securities Litigation Reform Act of 1995, give the investor the Company’s 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 “guidance”, “anticipate”, “expect”, “should”, “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.
The Company’s outlook is subject to various risks and uncertainties, and is based on assumptions that the Company believes in good faith are reasonable but which may be materially different from actual results. Factors that the Company currently believes could cause actual results to differ materially from the forward-looking statements in this release (including the outlook) include, but are not limited to: the ability of the Company to face challenges, including those posed by the COVID-19 pandemic and implementation of any such related response plans; the resiliency and potential declines of the Company’s various construction end-use markets; the potential negative impact of the COVID-19 pandemic on the Company’s ability to continue supplying heavy-side building materials and related services at normal levels or at all in the Company’s key regions; the duration, impact and severity of the impacts of the COVID-19 pandemic on the Company, including the markets in which we do business, our suppliers, customers or other business partners as well as on our employees; the economic impact of government responses to the pandemic; the performance of
You should consider these forward-looking statements in light of risk factors discussed in our Annual Report on Form 10-K for the year ended
Unaudited Statements of Earnings | |||||||
(In millions, except per share data) | |||||||
Three Months Ended | |||||||
2020 | 2019 | ||||||
Products and services revenues | $ | 891.0 | $ | 878.3 | |||
Freight revenues | 67.2 | 60.7 | |||||
Total revenues | 958.2 | 939.0 | |||||
Cost of revenues - products and services | 747.4 | 734.2 | |||||
Cost of revenues - freight | 68.4 | 61.9 | |||||
Total cost of revenues | 815.8 | 796.1 | |||||
Gross profit | 142.4 | 142.9 | |||||
Selling general & administrative expenses | 78.7 | 78.3 | |||||
Acquisition-related expenses | 0.3 | 0.1 | |||||
Other operating expenses and (income), net | 5.6 | (4.7 | ) | ||||
Earnings from operations | 57.8 | 69.2 | |||||
Interest expense | 29.8 | 32.9 | |||||
Other nonoperating expenses and (income), net | 2.0 | (1.6 | ) | ||||
Earnings before income tax expense (benefit) | 26.0 | 37.9 | |||||
Income tax expense (benefit) | 0.1 | (5.0 | ) | ||||
Consolidated net earnings | 25.9 | 42.9 | |||||
Less: Net earnings attributable to noncontrolling interests | - | - | |||||
Net Earnings Attributable to |
$ | 25.9 | $ | 42.9 | |||
Net earnings per common share attributable to common shareholders: | |||||||
Basic | $ | 0.42 | $ | 0.68 | |||
Diluted | $ | 0.41 | $ | 0.68 | |||
Dividends per common share | $ | 0.55 | $ | 0.48 | |||
Average number of common shares outstanding: | |||||||
Basic | 62.3 | 62.6 | |||||
Diluted | 62.5 | 62.8 | |||||
Unaudited Financial Highlights | ||||||||
(In millions) | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
Total revenues: | ||||||||
Building Materials Business: | ||||||||
$ | 260.8 | $ | 248.1 | |||||
121.1 | 119.2 | |||||||
510.6 | 497.6 | |||||||
Total |
892.5 | 864.9 | ||||||
Magnesia Specialties | 65.7 | 74.1 | ||||||
Total | $ | 958.2 | $ | 939.0 | ||||
Gross profit: | ||||||||
Building Materials Business: | ||||||||
$ | 38.1 | $ | 44.9 | |||||
21.5 | 26.2 | |||||||
58.6 | 46.7 | |||||||
Total |
118.2 | 117.8 | ||||||
Magnesia Specialties | 25.2 | 25.5 | ||||||
Corporate | (1.0 | ) | (0.4 | ) | ||||
Total | $ | 142.4 | $ | 142.9 | ||||
Selling, general and administrative expenses: | ||||||||
Building Materials Business: | ||||||||
$ | 17.8 | $ | 15.6 | |||||
6.9 | 5.3 | |||||||
33.4 | 29.3 | |||||||
Total |
58.1 | 50.2 | ||||||
Magnesia Specialties | 3.5 | 2.9 | ||||||
Corporate | 17.1 | 25.2 | ||||||
Total | $ | 78.7 | $ | 78.3 | ||||
Earnings (Loss) from operations: | ||||||||
Building Materials Business: | ||||||||
$ | 20.8 | $ | 30.6 | |||||
14.0 | 21.1 | |||||||
22.7 | 20.3 | |||||||
Total |
57.5 | 72.0 | ||||||
Magnesia Specialties | 21.7 | 22.6 | ||||||
Corporate | (21.4 | ) | (25.4 | ) | ||||
Total | $ | 57.8 | $ | 69.2 | ||||
(1) 2019 amounts are restated from amounts presented in the 2019 first-quarter earnings release to reflect the transfer of the Company's one quarry in the state of |
Unaudited Financial Highlights (Continued) | ||||||||
(In millions) | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
Total revenues: | ||||||||
Building Materials business products and services: | ||||||||
Aggregates (1) | $ | 570.3 | $ | 544.9 | ||||
Cement | 106.6 | 99.0 | ||||||
Ready mixed concrete | 189.7 | 211.2 | ||||||
Asphalt and paving (1) | 18.1 | 12.4 | ||||||
Less: Interproduct sales | (53.6 | ) | (58.4 | ) | ||||
Subtotal | 831.1 | 809.1 | ||||||
Freight | 61.4 | 55.8 | ||||||
Total |
892.5 | 864.9 | ||||||
Magnesia Specialties business: | ||||||||
Products and services | 59.9 | 69.2 | ||||||
Freight | 5.8 | 4.9 | ||||||
Total Magnesia Specialties Business | 65.7 | 74.1 | ||||||
Consolidated total revenues | $ | 958.2 | $ | 939.0 | ||||
Gross profit (loss): | ||||||||
Building Materials business products and services: | ||||||||
Aggregates (1) | $ | 93.4 | $ | 98.0 | ||||
Cement | 27.3 | 13.8 | ||||||
Ready mixed concrete | 5.9 | 14.5 | ||||||
Asphalt and paving (1) | (8.1 | ) | (8.3 | ) | ||||
Subtotal | 118.5 | 118.0 | ||||||
Freight | (0.3 | ) | (0.2 | ) | ||||
Total |
118.2 | 117.8 | ||||||
Magnesia Specialties business: | ||||||||
Products and services | 26.1 | 26.5 | ||||||
Freight | (0.9 | ) | (1.0 | ) | ||||
Total Magnesia Specialties Business | 25.2 | 25.5 | ||||||
Corporate | (1.0 | ) | (0.4 | ) | ||||
Consolidated gross profit | $ | 142.4 | $ | 142.9 | ||||
(1) Reflects the 2019 reclassification of two cold mix asphalt plants from the asphalt product line to the aggregates product line to conform with 2020 presentation. |
Balance Sheet Data | ||||||
(In millions) | ||||||
2020 | 2019 | |||||
(Unaudited) | (Audited) | |||||
ASSETS | ||||||
Cash and cash equivalents | $ | 424.0 | $ | 21.0 | ||
Accounts receivable, net | 562.8 | 573.7 | ||||
Inventories, net | 700.5 | 690.8 | ||||
Other current assets | 145.7 | 141.2 | ||||
Property, plant and equipment, net | 5,185.4 | 5,206.0 | ||||
Intangible assets, net | 2,880.4 | 2,883.6 | ||||
Operating lease right-of-use assets, net | 477.9 | 481.9 | ||||
Other noncurrent assets | 126.7 | 133.4 | ||||
Total assets | $ | 10,503.4 | $ | 10,131.6 | ||
LIABILITIES AND EQUITY | ||||||
Current maturities of long-term debt and short-term facilities | $ | 639.9 | $ | 340.0 | ||
Other current liabilities | 435.7 | 498.5 | ||||
Long-term debt (excluding current maturities) | 2,623.9 | 2,433.6 | ||||
Other noncurrent liabilities | 1,504.5 | 1,506.2 | ||||
Total equity | 5,299.4 | 5,353.3 | ||||
Total liabilities and equity | $ | 10,503.4 | $ | 10,131.6 |
Unaudited Statements of Cash Flows | ||||||||
(In millions) | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
Operating activities: | ||||||||
Consolidated net earnings | $ | 25.9 | $ | 42.9 | ||||
Adjustments to reconcile consolidated net earnings to net cash provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 95.0 | 89.2 | ||||||
Stock-based compensation expense | 12.5 | 13.5 | ||||||
Gains on divestitures and sales of assets | (1.5 | ) | (2.4 | ) | ||||
Deferred income taxes, net | 3.2 | 4.8 | ||||||
Other items, net | (0.4 | ) | 0.5 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||||||||
Accounts receivable, net | 10.2 | (26.1 | ) | |||||
Inventories, net | (9.6 | ) | 16.4 | |||||
Accounts payable | 4.9 | 20.4 | ||||||
Other assets and liabilities, net | (33.5 | ) | (41.3 | ) | ||||
Net cash provided by operating activities | 106.7 | 117.9 | ||||||
Investing activities: | ||||||||
Additions to property, plant and equipment | (104.1 | ) | (130.1 | ) | ||||
Proceeds from divestitures and sales of assets | 15.9 | 3.0 | ||||||
Investments in life insurance contracts, net | (7.2 | ) | 0.2 | |||||
Other investing activities, net | (0.1 | ) | (0.6 | ) | ||||
Net cash used for investing activities | (95.5 | ) | (127.5 | ) | ||||
Financing activities: | ||||||||
Borrowings of long-term debt | 618.0 | 125.0 | ||||||
Repayments of long-term debt | (127.0 | ) | (85.0 | ) | ||||
Payments on finance lease obligations | (0.8 | ) | (1.0 | ) | ||||
Debt issuance costs | (1.1 | ) | - | |||||
Dividends paid | (34.8 | ) | (30.4 | ) | ||||
Repurchases of common stock | (50.0 | ) | - | |||||
Proceeds from exercise of stock options | 0.2 | 0.6 | ||||||
Shares withheld for employees' income tax obligations | (12.7 | ) | (7.1 | ) | ||||
Net cash provided by financing activities | 391.8 | 2.1 | ||||||
Net increase (decrease) in cash and cash equivalents | 403.0 | (7.5 | ) | |||||
Cash and cash equivalents, beginning of period | 21.0 | 44.9 | ||||||
Cash and cash equivalents, end of period | $ | 424.0 | $ | 37.4 |
Unaudited Operational Highlights | ||||||||
Three Months Ended | ||||||||
Volume | Pricing | |||||||
Volume/Pricing Variance (1) | ||||||||
4.3 | % | 1.4 | % | |||||
(3.2 | %) | 4.7 | % | |||||
2.5 | % | 3.7 | % | |||||
Total Aggregates Product Line (4) | 2.3 | % | 2.7 | % | ||||
Three Months Ended | ||||||||
Shipments (tons in millions) | 2020 | 2019 | ||||||
16.5 | 15.8 | |||||||
6.2 | 6.4 | |||||||
15.6 | 15.2 | |||||||
Total Aggregates Product Line (4) | 38.3 | 37.4 | ||||||
(1) Volume/pricing variances reflect the percentage increase from the comparable period in the prior year. | ||||||||
(2) Reflects the reclassification of 2019 shipments, when compared with amounts presented in the 2019 first-quarter earnings release, to reflect the transfer of the Company's one quarry in the state of |
||||||||
(3) Reflects the reclassification of 2019 shipments for two cold mix asphalt plants from the asphalt product line to the aggregates product line to conform with 2020 presentation. | ||||||||
(4) Aggregates Product Line includes acquisitions from the date of acquisition and divestitures through the date of disposal. | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
Shipments (in millions) | ||||||||
Aggregates tons - external customers(1) | 36.0 | 35.4 | ||||||
Internal aggregates tons used in other product lines | 2.3 | 2.0 | ||||||
Total aggregates tons(1) | 38.3 | 37.4 | ||||||
Cement tons - external customers | 0.7 | 0.6 | ||||||
Internal cement tons used in other product lines | 0.2 | 0.3 | ||||||
Total cement tons | 0.9 | 0.9 | ||||||
Ready mixed concrete - cubic yards | 1.7 | 1.9 | ||||||
Asphalt tons - external customers(1) | 0.1 | - | ||||||
Internal asphalt tons used in road paving business | 0.1 | 0.1 | ||||||
Total asphalt tons(1) | 0.2 | 0.1 | ||||||
Average unit sales price by product line (including internal sales): | ||||||||
Aggregates (per ton)(1) | $ | 14.80 | $ | 14.42 | ||||
Cement (per ton) | $ | 113.77 | $ | 110.93 | ||||
Ready mixed concrete (per cubic yard) | $ | 114.35 | $ | 109.28 | ||||
Asphalt (per ton)(1) | $ | 45.43 | $ | 45.92 | ||||
(1) Reflects the reclassification of 2019 shipments for two cold mix asphalt plants from the asphalt product line to the aggregates product line to conform with 2020 presentation. |
Non-GAAP Financial Measures | |||||||
(Dollars in millions) | |||||||
Earnings before interest; income taxes; depreciation, depletion and amortization expense and the noncash earnings/loss from nonconsolidated equity affiliates (Adjusted EBITDA) is an indicator used by the Company and investors to evaluate the Company's operating performance from period to period. Adjusted EBITDA is not defined by generally accepted accounting principles and, as such, should not be construed as an alternative to earnings from operations, net earnings or operating cash flow. For further information on Adjusted EBITDA, refer to the Company's website at www.martinmarietta.com. | |||||||
A Reconciliation of Net Earnings Attributable to Martin Marietta to Consolidated Adjusted EBITDA is as follows: | |||||||
Three Months Ended | |||||||
2020 | 2019 (1) | ||||||
Net earnings attributable to Martin Marietta | $ | 25.9 | $ | 42.9 | |||
Add back (deduct): | |||||||
Interest expense, net of interest income | 29.6 | 32.8 | |||||
Income tax expense (benefit) for controlling interests | 0.1 | (5.0 | ) | ||||
Depreciation, depletion and amortization expense and noncash earnings/loss from nonconsolidated equity affiliates | 93.4 | 87.5 | |||||
Consolidated adjusted EBITDA | $ | 149.0 | $ | 158.2 | |||
(1) 2019 EBITDA, when compared with the amount presented in the first-quarter 2019 earnings release, has been restated to conform to the 2020 calculation methodology. |
Source: Martin Marietta Materials, Inc.