Vulcan Announces Second Quarter 2014 Results Aggregates Volume Increases 10 Percent; Full Year Volume Forecast Raised

Gross Profit Margin Up 400 Basis Points

BIRMINGHAM, Ala., Aug. 5, 2014 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's largest producer of construction aggregates, today announced results for the second quarter ending June 30, 2014.

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Second Quarter Summary (compared with prior year's second quarter)

  • Net sales increased $60 million, or 9 percent
  • Gross profit increased $42 million, or 32 percent 
  • Aggregates segment gross profit increased $35 million, or 27 percent
    • Shipments increased 10 percent, or 4.1 million tons
    • Pricing increased 3 percent on a freight-adjusted basis
    • Cash gross profit per ton was $5.00, an 8 percent increase
  • Other combined segment gross profit improved $7 million
  • Earnings from continuing operations were $0.35 per diluted share as compared to $0.23. The current year's second quarter includes costs of $0.02 per diluted share related to acquisition and divestiture activity.  The prior year's second quarter earnings include $0.10 per diluted share related to the gain associated with the sale of the Company's businesses in Wisconsin.
  • Adjusted EBITDA was $173 million, an increase of $32 million, or 23 percent

Tom Hill, President and Chief Executive Officer, said, "Our second quarter results further demonstrate the earnings leverage of volume growth in our aggregates business, and our continuing improvements to margins and unit profitability.  A 10 percent increase in aggregates volume helped drive a 27 percent increase in Aggregates segment gross profit.  Cash gross profit per ton increased to $5.00, an 8 percent increase from the prior year's second quarter and a record level of unit profitability for this segment. Across all of our businesses, gross profit as a percent of net sales increased 400 basis points. 

"We continue to experience accelerating demand recovery in most of our markets.  Our aggregates shipments have increased year-over-year for five consecutive quarters, and the markets Vulcan serves should continue to grow faster than U.S. markets as a whole.  We now expect our full year 2014 aggregates shipments to be 7 to 9 percent higher than the prior year, as compared to our prior estimate of a 4 to 7 percent increase."

Commentary on Second Quarter 2014 Segment Results

Aggregates Segment
Aggregates segment revenues were $596 million compared to $508 million in the prior year's second quarter.  These revenues include sales generated from producing and selling aggregates tons as well as revenues from aggregates distribution, delivery and other services, including truck brokerage services.  The truck brokerage services have been expanded recently to enhance our ability to serve customers and generate additional earnings from each ton shipped.  The gross profit margin on growth in revenue associated with producing and selling aggregates tons was in line with our expectations.  Also as expected, revenue growth from our transportation-related activities contributed to earnings but at a lower margin percentage.

Aggregates shipments increased 10 percent compared to the prior year, with key markets including Georgia, Illinois, North Carolina, Texas and Virginia reporting more than 15 percent volume growth and Florida and Southern California realizing 11 and 12 percent growth, respectively. 

Freight-adjusted pricing for aggregates increased 3 percent, or $0.33 per ton, versus the prior year's second quarter as virtually all markets realized price improvement.  This widespread price improvement, combined with reductions in our production costs shipped, drove a $0.49 per ton, or 15 percent, increase in our gross profit.  As a percent of segment revenues, our gross profit margin in the Aggregates segment improved 210 basis points over the prior year's second quarter.  Aggregates segment gross profit was $162 million, an increase of $35 million, or 27 percent, versus the prior year's second quarter. 

Asphalt, Concrete and Cement Segments
Overall, gross profit from the non-aggregates segments improved $7 million versus the prior year. Earnings improvement in the Concrete segment drove the majority of this gain. 

Asphalt gross profit was $9 million, in line with the prior year's second quarter.  Asphalt volume increased 3 percent and materials margin improved slightly versus the prior year due mostly to lower costs for liquid asphalt.  Operating costs, primarily energy-related, were slightly higher than the prior year.

Concrete gross profit was $3 million compared to a loss of $6 million in the second quarter of the prior year.  Last year's second quarter results included the Company's Florida concrete business that was sold in the first quarter of 2014.  On a same-store basis, volume and pricing improved, driven primarily by increased private construction activity, while gross profit increased $3 million.

The Company's cement business was also sold in the first quarter along with the Florida concrete assets.  The Company retained its calcium products business that is included in its Cement segment.  This business reported second quarter revenues of $2.2 million and gross profit of $0.8 million, both slightly better than the prior year.

2014 Outlook
Regarding the Company's outlook, Mr. Hill stated, "Growth in the private end markets continues to drive increased construction activity and demand for our products. Leading indicators, such as housing starts, nonresidential contract awards and employment, continue to show favorable above-average growth trends in Vulcan-served markets.  These factors underpin our full year aggregates shipment forecast of a 7 to 9 percent increase in 2014.  This volume growth, coupled with the continuing improvement in unit profitability, supports our expectations for strong earnings leverage and margin expansion – and we remain focused on achieving these expectations. 

"We are maintaining our outlook for full year freight-adjusted aggregates pricing to improve 3 to 5 percent from the prior year.  The overall pricing outlook for our aggregates products continues to improve with the recovery in demand for construction materials.  As we look ahead to the second half of the year, we expect continuing margin improvement driven by price growth, operating leverage, and other cost controls.    

"In our Concrete and Asphalt segments, we have realized improvements in unit profitability, as measured by materials margin. We expect continued growth in private construction activity to benefit volumes and prices, leading to higher unit profitability in both our Concrete and Asphalt segments.  Overall, we expect our non-aggregates gross profit to be $40 to $50 million for the full year, compared to $14 million in 2013.

"Selling, administrative and general (SAG) expenses are expected to be in line with the prior year, allowing us to leverage our overhead structure to expected higher sales.

"Our confidence in a sustained multi-year recovery in aggregates demand continues to grow. Our markets are recovering off trough levels of demand and are outpacing the rest of the U.S.  To support the anticipated increased level of shipments, and to further improve our production costs and operating efficiencies, we now project capital spending for 2014 to be approximately $240 million.

"Our second quarter and first half results demonstrate the broadening recovery of our markets and the benefits of the Company's powerful earnings leverage. Comparing the first half of 2014 to the first half of 2013, Adjusted EBITDA grew $45 million, or 27 percent, on a 9 percent increase in net sales.  We expect to continue to deliver strong gains in earnings because of increasing demand in Vulcan-served markets.

"We are excited about our future as the leading aggregates supplier in the U.S. We remain focused on further improving the profitability of our existing businesses, strategically expanding our unmatched asset base to serve the needs of our customers, and continuing our disciplined management of capital."

Conference Call
Vulcan will host a conference call at 10:00 a.m. CDT on August 5, 2014.  A live webcast will be available via the Company's website at www.vulcanmaterials.com.  Investors and other interested parties in the U.S. may also access the teleconference live by calling 855-877-0343 approximately 10 minutes before the scheduled start.  International participants can dial 678-509-8772.  The conference ID is 74678231.  The conference call will be recorded and available for replay at the Company's website approximately two hours after the call.

Vulcan Materials Company, a member of the S&P 500 Index, is the nation's largest producer of construction aggregates, and a major producer of asphalt mix and concrete.


FORWARD-LOOKING STATEMENT DISCLAIMER
This document contains forward-looking statements.  Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, business plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned divestitures and asset sales.  These forward-looking statements are sometimes identified by the use of terms and phrases such as "believe," "should," "would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," "may" or similar expressions elsewhere in this document.  These statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitive factors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.

Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may vary significantly from those expressed in or implied by the forward-looking statements.  The following risks related to Vulcan's business, among others, could cause actual results to differ materially from those described in the forward-looking statements: those associated with general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; changes in Vulcan's effective tax rate that can adversely impact results; the increasing reliance on information technology infrastructure for Vulcan's ticketing, procurement, financial statements and other processes could adversely affect operations in the event such infrastructure does not work as intended or experiences technical difficulties or is subjected to cyber attacks; the impact of the state of the global economy on Vulcan's businesses and financial condition and access to capital markets; changes in the level of spending for private residential and private nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by Vulcan; changes in interest rates; the impact of Vulcan's below investment grade debt rating on Vulcan's cost of capital; volatility in pension plan asset values and liabilities which may require cash contributions to the pension plans; the impact of environmental clean-up costs and other liabilities relating to previously divested businesses; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully integrate acquisitions; the potential of goodwill or long-lived asset impairment; the potential impact of future legislation or regulations relating to climate change or greenhouse gas emissions or the definition of minerals; and other assumptions, risks and uncertainties detailed from time to time in the reports filed by Vulcan with the SEC. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.  Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document except as required by law.

 

 











Table A

Vulcan Materials Company









and Subsidiary Companies













(Amounts and shares in thousands, except per share data)





Three Months Ended


Six Months Ended

Consolidated Statements of Earnings




June 30




June 30

(Condensed and unaudited)


2014


2013


2014


2013

Net sales


$756,289


$696,078


$1,304,785


$1,200,632

Delivery revenues


34,854


42,655


60,778


76,263

Total revenues


791,143


738,733


1,365,563


1,276,895

Cost of goods sold


581,501


563,183


1,095,904


1,050,082

Delivery costs


34,854


42,655


60,778


76,263

Cost of revenues


616,355


605,838


1,156,682


1,126,345

Gross profit


174,788


132,895


208,881


150,550












Selling, administrative and general expenses


67,615


64,902


133,733


129,557

Gain on sale of property, plant & equipment









and businesses, net


1,162


23,410


237,526


27,520

Restructuring charges


-


-


-


(1,509)

Other operating expense, net


(5,089)


(4,537)


(14,758)


(10,196)

Operating earnings


103,246


86,866


297,916


36,808

Other nonoperating income, net


1,798


286


4,622


2,658

Interest expense, net


40,551


50,873


160,639


103,623

Earnings (loss) from continuing operations









before income taxes


64,493


36,279


141,899


(64,157)

Provision for (benefit from) income taxes


17,982


6,151


40,882


(32,666)

Earnings (loss) from continuing operations


46,511


30,128


101,017


(31,491)

Earnings (loss) on discontinued operations, net of taxes


(544)


(1,356)


(1,054)


5,427

Net earnings (loss)


$45,967


$28,772


$99,963


($26,064)

Basic earnings (loss) per share









Continuing operations


$0.35


$0.23


$0.77


($0.24)

Discontinued operations


$0.00


($0.01)


($0.01)


$0.04

Net earnings (loss)


$0.35


$0.22


$0.76


($0.20)












Diluted earnings (loss) per share









Continuing operations


$0.35


$0.23


$0.76


($0.24)

Discontinued operations


$0.00


($0.01)


($0.01)


$0.04

Net earnings (loss)


$0.35


$0.22


$0.75


($0.20)












Weighted-average common shares outstanding









Basic


131,149


130,250


130,980


130,219

Assuming dilution


132,876


131,332


132,468


130,219

Dividends declared per share


$0.05


$0.01


$0.10


$0.02

Depreciation, depletion, accretion and amortization


$68,323


$76,961


$137,702


$152,557

Effective tax rate from continuing operations


27.9%


17.0%


28.8%


50.9%























 









Table B

Vulcan Materials Company







and Subsidiary Companies










(Amounts in thousands, except per share data)

Consolidated Balance Sheets


June 30


December 31


June 30

(Condensed and unaudited)


2014


2013


2013

Assets







Cash and cash equivalents


$227,684


$193,738


$86,979

Restricted cash


62,087


-


-

Accounts and notes receivable







Accounts and notes receivable, gross


439,938


344,475


410,021

Less: Allowance for doubtful accounts


(5,606)


(4,854)


(5,339)

Accounts and notes receivable, net


434,332


339,621


404,682

Inventories







Finished products


260,111


270,603


266,489

Raw materials


20,458


29,996


29,863

Products in process


1,104


6,613


5,415

Operating supplies and other


28,041


37,394


38,720

Inventories


309,714


344,606


340,487

Current deferred income taxes


40,858


40,423


39,275

Prepaid expenses


27,309


22,549


27,300

Assets held for sale


-


10,559


12,926

Total current assets


1,101,984


951,496


911,649

Investments and long-term receivables


42,128


42,387


43,194

Property, plant & equipment







Property, plant & equipment, cost


6,396,658


6,933,602


6,735,203

Reserve for depreciation, depletion & amortization


(3,494,896)


(3,621,585)


(3,519,862)

Property, plant & equipment, net


2,901,762


3,312,017


3,215,341

Goodwill


3,081,521


3,081,521


3,081,521

Other intangible assets, net


633,442


697,578


698,471

Other noncurrent assets


173,061


174,144


170,048

Total assets


$7,933,898


$8,259,143


$8,120,224

Liabilities







Current maturities of long-term debt


$158


$170


$161

Short-term debt


-


-


100,000

Trade payables and accruals


178,239


139,345


128,142

Other current liabilities


171,008


159,620


163,466

Total current liabilities


349,405


299,135


391,769

Long-term debt


2,006,379


2,522,243


2,524,420

Noncurrent deferred income taxes


704,544


701,075


664,967

Deferred revenue


217,589


219,743


73,068

Other noncurrent liabilities


569,794


578,841


652,480

Total liabilities


3,847,711


4,321,037


4,306,704

Equity







Common stock, $1 par value


130,910


130,200


129,963

Capital in excess of par value


2,665,793


2,611,703


2,592,239

Retained earnings


1,382,711


1,295,834


1,247,984

Accumulated other comprehensive loss


(93,227)


(99,631)


(156,666)

Total equity


4,086,187


3,938,106


3,813,520

Total liabilities and equity


$7,933,898


$8,259,143


$8,120,224










 







Table C

Vulcan Materials Company




and Subsidiary Companies








(Amounts in thousands)





Six Months Ended

Consolidated Statements of Cash Flows



June 30

(Condensed and unaudited)

2014


2013

Operating Activities




Net earnings (loss)

$99,963


($26,064)

Adjustments to reconcile net earnings to net cash provided by operating activities




Depreciation, depletion, accretion and amortization

137,702


152,557

Net gain on sale of property, plant & equipment and businesses

(237,526)


(40,550)

Contributions to pension plans

(2,791)


(2,308)

Share-based compensation

11,928


11,102

Excess tax benefits from share-based compensation

(3,242)


(888)

Deferred tax provision

24


(31,581)

Cost of debt purchase

72,949


-

Changes in assets and liabilities before initial




effects of business acquisitions and dispositions

(59,893)


(108,295)

Other, net

3,786


682

Net cash provided by (used for) operating activities

22,900


(45,345)

Investing Activities




Purchases of property, plant & equipment

(116,312)


(60,041)

Proceeds from sale of property, plant & equipment

20,454


2,517

Proceeds from sale of businesses, net of transaction costs

719,089


52,908

Payment for businesses acquired, net of acquired cash

(207)


(89,951)

Increase in restricted cash

(62,087)


-

Other, net

-


2

Net cash provided by (used for) investing activities

560,937


(94,565)

Financing Activities




Proceeds from line of credit

-


111,000

Payment of current maturities, long-term debt & line of credit

(579,694)


(161,477)

Proceeds from issuance of common stock

27,539


-

Dividends paid

(13,074)


(2,598)

Proceeds from exercise of stock options

12,095


3,598

Excess tax benefits from share-based compensation

3,242


888

Other, net

1


-

Net cash used for financing activities

(549,891)


(48,589)

Net increase (decrease) in cash and cash equivalents

33,946


(188,499)

Cash and cash equivalents at beginning of year

193,738


275,478

Cash and cash equivalents at end of period

$227,684


$86,979















 

 

 












Table D

Segment Financial Data and Unit Shipments












(Amounts in thousands, except per unit data)





Three Months Ended


Six Months Ended







June 30




June 30





2014


2013


2014


2013

Total Revenues








Aggregates (a)








Segment revenues

$595,616


$508,438


$999,882


$867,437

Intersegment sales

(43,084)


(44,457)


(86,516)


(78,061)

Net sales

552,532


463,981


913,366


789,376

Concrete (b)








Segment revenues

93,818


120,294


189,827


220,183

Net sales

93,818


120,294


189,827


220,183

Asphalt Mix








Segment revenues

107,766


99,935


190,785


167,222

Net sales

107,766


99,935


190,785


167,222

Cement (c)








Segment revenues

2,173


23,819


20,032


46,512

Intersegment sales

-


(11,951)


(9,225)


(22,661)

Net sales

2,173


11,868


10,807


23,851

Totals









Net sales

756,289


696,078


1,304,785


1,200,632

   Delivery revenues

34,854


42,655


60,778


76,263

Total revenues

$791,143


$738,733


$1,365,563


$1,276,895

Gross Profit








Aggregates

$161,706


$127,120


$200,184


$151,906

Concrete

3,223


(5,823)


(6,003)


(15,902)

Asphalt Mix

9,027


9,234


13,738


11,171

Cement


832


2,364


962


3,375

Total


$174,788


$132,895


$208,881


$150,550

Depreciation, Depletion, Accretion and Amortization








Aggregates

$56,347


$56,598


$110,970


$112,486

Concrete

4,759


8,184


10,796


16,160

Asphalt Mix

2,421


2,121


4,820


4,158

Cement


155


4,426


1,213


8,332

Other



4,641


5,632


9,903


11,421

Total


$68,323


$76,961


$137,702


$152,557

Unit Shipments








Aggregates customer tons (d)

41,265


36,617


68,533


62,218

Internal tons (e)

2,383


2,948


4,743


5,206

Aggregates - tons

43,648


39,565


73,276


67,424

Ready-mixed concrete - cubic yards

949


1,231


1,907


2,254

Asphalt Mix - tons

1,857


1,803


3,299


3,032












Cement customer tons

-


121


76


242

Internal tons (e)

-


142


96


269

Cement - tons

-


263


172


511

Average Unit Sales Price (including internal sales)








Aggregates (freight-adjusted) (f)

$11.08


$10.75


$11.02


$10.74

Ready-mixed concrete

$98.82


$92.40


$97.10


$92.23

Asphalt Mix

$53.52


$54.51


$53.32


$54.21

(a) Includes crushed stone, sand and gravel, sand, other aggregates, as well as transportation and service revenues associated with the aggregates

      business.



(b) Includes ready-mixed concrete, concrete block, precast concrete, as well as building materials purchased for resale.  On March 7, 2014, we sold

      our concrete business in the Florida area.  See Table G for adjusted segment data.


(c) Includes cement and calcium products.  On March 7, 2014, we sold our cement business.  See Table G for adjusted segment data.

(d) Includes tons marketed and sold on behalf of a third-party pursuant to a volumetric production payment (VPP) agreement.


(e) Represents tons shipped primarily to our other operations (i.e., asphalt mix and ready-mixed concrete). Revenue from internal shipments

      is not included in net sales, or total revenue as presented above and in the accompanying Condensed Consolidated Statements of Earnings.

(f) Freight-adjusted sales price is calculated as total sales dollars less freight to remote distribution sites divided by total sales units.

 

 

 










Table E

1.   Supplemental Cash Flow Information




Supplemental information referable to the Condensed Consolidated Statements of Cash Flows is summarized below:
















(Amounts in thousands)







Six Months Ended









June 30







2014


2013










Cash Payments






Interest (exclusive of amount capitalized)



$162,110


$100,598

Income taxes



13,867


9,087










Noncash Investing and Financing Activities 





Liabilities assumed in business acquisition



755


232

Accrued liabilities for purchases of property, plant & equipment

12,482


4,212

Fair value of equity consideration for business acquisition

1,094


-


2. Reconciliation of Non-GAAP Measures

Generally Accepted Accounting Principles (GAAP) does not define "free cash flow," "Aggregates segment cash gross profit," "Earnings Before Interest, Taxes, Depreciation and Amortization" (EBITDA) and "cash earnings." Thus, free cash flow should not be considered as an alternative to net cash provided by operating activities or any other liquidity measure defined by GAAP. Likewise, Aggregates segment cash gross profit, EBITDA and cash earnings should not be considered as alternatives to earnings measures defined by GAAP. We present these metrics for the convenience of investment professionals who use such metrics in their analyses and for shareholders who need to understand the metrics we use to assess performance and to monitor our cash and liquidity positions. The investment community often uses these metrics as indicators of a company's ability to incur and service debt and to assess the operating performance of a company's businesses. We use free cash flow, Aggregates segment cash gross profit, EBITDA, cash earnings and other such measures to assess liquidity and the operating performance of our various business units and the consolidated company. Additionally, we adjust EBITDA for certain items to provide a more consistent comparison of performance from period to period. We do not use these metrics as a measure to allocate resources. Reconciliations of these metrics to their nearest GAAP measures are presented below:

           


Free Cash Flow









Free cash flow deducts purchases of property, plant & equipment from net cash provided by operating activities.










(Amounts in thousands)










Six Months Ended












June 30










2014


2013

Net cash provided by (used for) operating activities





$22,900


($45,345)

Purchases of property, plant & equipment






(116,312)


(60,041)

Free cash flow






($93,412)


($105,386)













Aggregates Segment Cash Gross Profit







Aggregates segment cash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization (DDA&A) to Aggregates segment gross profit.






 

(Amounts in thousands)






Three Months Ended


Six Months Ended








June 30




June 30






2014


2013


2014


2013

Aggregates segment








Gross profit

$161,706


$127,120


$200,184


$151,906

DDA&A


56,347


56,598


110,970


112,486

Aggregates segment cash gross profit

$218,053


$183,718


$311,154


$264,392

























          













Table F












Reconciliation of Non-GAAP Measures (Continued)


















EBITDA, Cash Earnings and Adjusted EBITDA





















EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization and excludes discontinued operations.  We adjust EBITDA for certain items to provide a more consistent comparison of performance from period to period.  Cash earnings adjusts EBITDA for net interest expense and current taxes.  







(Amounts in thousands)







Three Months Ended


Six Months Ended









June 30




June 30







2014


2013


2014


2013














Reconciliation of Net Earnings to EBITDA and Cash Earnings





















Net earnings (loss)




$45,967


$28,772


$99,963


($26,064)

Provision for (benefit from) income taxes


17,982


6,151


40,882


(32,666)

Interest expense, net



40,551


50,873


160,639


103,623

(Earnings) loss on discontinued operations, net of taxes

544


1,356


1,054


(5,427)

EBIT






105,044


87,152


302,538


39,466

Depreciation, depletion, accretion and amortization

68,323


76,961


137,702


152,557

EBITDA





$173,367


$164,113


$440,240


$192,023

Interest expense, net



(40,551)


(50,873)


(160,639)


(103,623)

Current taxes





(10,380)


(989)


(41,037)


3,416

Cash earnings





$122,436


$112,251


$238,564


$91,816














Adjusted EBITDA and Adjusted EBIT





















EBITDA





$173,367


$164,113


$440,240


$192,023

Gain on sale of real estate and businesses

(1,087)


(22,961)


(237,107)


(26,220)

Charges associated with divestitures


1,832


-


10,939


-

Amortization of deferred revenue


(1,357)


(324)


(2,341)


(577)

Restructuring charges



-


-


-


1,509

Adjusted EBITDA




$172,755


$140,828


$211,731


$166,735

Depreciation, depletion, accretion and amortization

(68,323)


(76,961)


(137,702)


(152,557)

Amortization of deferred revenue


1,357


324


2,341


577

Adjusted EBIT





$105,789


$64,191


$76,370


$14,755



























EBITDA Bridge 



Three Months Ended




Six Months Ended



(Amounts in millions)



June 30




June 30








2013 Actual EBITDA

$164




$192



Plus:

Gain on sale of real estate and businesses

(23)




(26)




Restructuring charges

-




2




Amortization of deferred revenue

-




(1)



2013 Adjusted EBITDA



141




167
















Increase / (Decrease) due to








Aggregates:

Volumes

25




34





Selling prices

14




21





Costs and other items

(6)




(10)



Concrete





6




5



Asphalt Mix





-




4



Cement





(6)




(9)



Selling, administrative and general expenses

(3)




(4)



Other






2




4



2014 Adjusted EBITDA



173




212
















Plus:

Gain on sale of real estate and businesses

1




237




Charges associated with divestitures

(2)




(11)




Amortization of deferred revenue

1




2








2014 Actual EBITDA

$173




$440










































 








Table G



















Adjusted Concrete and Cement Segment Financial Data















Comparative financial data after adjusting for the March 7, 2014 sale of our concrete and cement businesses in the Florida area is presented below:




(Amounts in thousands)



Three Months Ended


Six Months Ended





June 30




June 30



2014


2013


2014


2013


Concrete Segment









Segment revenues









As reported

$93,818


$120,294


$189,827


$220,183


Adjusted

$93,818


$77,989


$157,104


$140,464











Net Sales









As reported

$93,818


$120,294


$189,827


$220,183


Adjusted

$93,818


$77,989


$157,104


$140,464











Gross Profit









As reported

$3,223


($5,823)


($6,003)


($15,902)


Adjusted

$3,223


$676


($2,312)


($3,334)











Depreciation, Depletion, Accretion and Amortization









As reported

$4,759


$8,184


$10,796


$16,160


Adjusted

$4,759


$4,302


$9,445


$8,473




















Cement Segment









Segment revenues









As reported

$2,173


$23,819


$20,032


$46,512


Adjusted

$2,173


$2,042


$4,036


$4,027











Net Sales









As reported

$2,173


$11,868


$10,807


$23,851


Adjusted

$2,173


$2,033


$4,064


$4,019











Gross Profit









As reported

$832


$2,364


$962


$3,375


Adjusted

$832


$744


$1,256


$1,509











Depreciation, Depletion, Accretion and Amortization









As reported

$155


$4,426


$1,213


$8,332


Adjusted

$155


$137


$252


$293





























 

SOURCE Vulcan Materials Company



RELATED LINKS
http://www.vulcanmaterials.com

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