Vulcan Announces Second Quarter 2014 Results

Aggregates Volume Increases 10 Percent; Full Year Volume Forecast Raised

Gross Profit Margin Up 400 Basis Points

Aug 05, 2014, 08:00 ET from Vulcan Materials Company

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.

Logo - http://photos.prnewswire.com/prnh/20090710/CL44887LOGO

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