BIRMINGHAM, Ala., May 6, 2020 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's largest producer of construction aggregates, today announced results for the quarter ended March 31, 2020.

Tom Hill, Chairman and Chief Executive Officer, said, "Our first quarter earnings improved across all segments and were in line with our expectations, despite wet weather in certain key markets in the Southeast and Southwest.  These results demonstrated the strong long-term fundamental position of our aggregates-led businesses and our commitment to leading the industry in pricing and unit profitability.

"We experienced minimal financial impact from the COVID-19 pandemic in the first quarter.  Our main focus right now is ensuring the health and safety of our employees, maintaining our operational readiness, preserving liquidity and supporting the communities in which we operate.  Our employees are engaged and ready to support one another, service our customers, and meet the challenges of today as we prepare for tomorrow. 

"From a position of strength, we are proactively planning for the potential impacts of the pandemic on construction activity.  Our strengths are derived from the flexibility provided by our aggregates-focused business, our diverse geographic footprint, our balance sheet structure and recently enhanced liquidity, and our operational capabilities.  Our leading market positions, built over more than 60 years, and our proven track record of strong operations also position us well.  That said, we have undertaken a comprehensive review of our operating plans and have contingency plans in place to respond as efficiently as possible to demand shifts.  Aggregates is far more adaptable to these demand shifts than any other construction materials, a characteristic that should serve us well during this period of disruption.  As a result, we will be well-equipped to manage our business effectively and serve our customers reliably through these unprecedented times.  Our execution capabilities are supported by our four strategic disciplines (Commercial and Operational Excellence, Logistics Innovation and Strategic Sourcing), which have been implemented over the last few years.  These operating plans are underpinned by our healthy balance sheet and strong liquidity position, which we have further enhanced."  

Highlights as of March 31, 2020 include: 


First Quarter


Trailing Twelve Months

Amounts in millions, except per unit data

2020

2019


2020

2019

Total revenues

$            1,049.2

$               996.5


$            4,981.8

$            4,524.9

Gross profit

$               201.7

$               191.7


$            1,265.9

$            1,133.3

Aggregates segment






Segment sales

$               868.2

$               835.0


$            4,023.5

$            3,649.0

Freight-adjusted revenue

$               648.0

$               628.6


$            3,033.6

$            2,766.5

Gross profit

$               194.1

$               185.7


$            1,155.1

$            1,029.4

Shipments (tons)

45.0

45.6


214.9

206.5

Freight-adjusted sales price per ton

$               14.39

$               13.77


$               14.12

$               13.40

Gross profit per ton

$                 4.31

$                 4.07


$                 5.38

$                 4.99

Asphalt, Concrete & Calcium segment gross profit

$                  7.6

$                  6.0


$               110.9

$               103.9

Selling, Administrative and General (SAG)

$                 86.4

$                 90.3


$               366.7

$               345.3

SAG as % of Total revenues

8.2%

9.1%


7.4%

7.6%

Earnings from continuing operations before income taxes

$                 72.2

$                 74.6


$               755.3

$               649.4

Net earnings

$                 60.3

$                 63.3


$               614.6

$               526.1

Adjusted EBIT

$               105.5

$               103.5


$               897.5

$               802.6

Adjusted EBITDA

$               201.0

$               192.7


$            1,278.4

$            1,156.6

Earnings from continuing operations per diluted share

$                 0.45

$                 0.48


$                 4.64

$                 3.95

Adjusted earnings from continuing operations per diluted share

$                 0.47

$                 0.46


$                 4.71

$                 4.07

First quarter revenues were $1.05 billion and net earnings were $60 million.  Earnings from continuing operations were $0.45 per diluted share, and Adjusted EBITDA was $201 million.  This year's first quarter earnings included a pretax foreign currency balance sheet translation loss of $6 million, or $0.04 per diluted share, resulting from the rapid devaluation of the Mexican peso.   

Segment revenues and gross profit improved versus the prior year in each of the Company's product lines.  Aggregates earnings benefited from continued price improvement and solid shipment growth in certain key markets.  Asphalt and Concrete segment earnings reflected revenue growth and improved unit margins.

Segment Results
Aggregates
First quarter segment sales increased 4 percent, and gross profit increased 5 percent to $194 million, or $4.31 per ton.  These improvements resulted from growth in shipments in certain key markets and wide-spread growth in pricing.

First quarter aggregates shipments were 1 percent lower than the prior year's strong first quarter, when aggregates shipments increased 13 percent as a result of delayed shipments from the fourth quarter of 2018.  Many markets in the Southeast and the Southwest were negatively impacted by wet weather while shipments in California, Florida, Illinois and Virginia realized solid growth.  On a mix-adjusted basis, all of the Company's key markets reported year-over-year price growth.  For the quarter, freight-adjusted average sales price increased 4.5 percent (4.8 percent on mix-adjusted basis) versus the prior year's quarter. 

As anticipated, first quarter cost of sales were negatively impacted by higher repairs, maintenance and stripping costs, which were incurred early in the quarter to take advantage of the seasonally low production volume.  Wet weather inefficiencies also affected costs in certain markets.  These were partially offset by the modestly lower unit cost of diesel fuel in the quarter.  Cash gross profit per ton increased 6 percent from the prior year's first quarter to $6.02 per ton.  For the trailing-twelve months, cash gross profit was $6.82 per ton.

Asphalt, Concrete and Calcium
Consistent with the Company's expectations, Asphalt segment gross profit was a loss of $2 million for the seasonally slower first quarter, an improvement over last year's loss of $3 million.  Asphalt shipments increased 2 percent and selling prices increased 5 percent in the first quarter.  California, the Company's largest asphalt market, reported volume growth in the first quarter, more than offsetting lower volumes in Texas.  In both markets, weather contributed to the year-over-year change.  The average unit cost for liquid asphalt was 6 percent lower than the prior year quarter. 

Concrete segment gross profit was $9 million, an 8 percent improvement from the prior year.  Shipments increased 10 percent, led by shipment growth in the Company's two largest concrete markets, Northern Virginia and Northern California.  Average selling prices increased 3 percent compared to the prior year's first quarter. 

Calcium segment gross profit was $0.8 million, up from the prior year quarter.

Selling, Administrative and General (SAG)
SAG expense declined 4 percent to $86 million in the quarter due mostly to recently implemented cost reductions as well as adjustments to stock-based compensation to reflect a lower share price.  This year-over-year decline coupled with revenue growth, resulted in a 90 basis point improvement as a percentage of total revenues.  The Company remains focused on further leveraging its overhead structure. 

Financial Position, Liquidity and Capital Allocation
Capital expenditures in the first quarter were $109 million.  This amount included both core operating and maintenance capital investments to improve or replace existing property, plant and equipment as well as internal growth projects already underway.  The Company's full-year expectations for 2020 capital spending have been revised downward in response to the unknown impacts of the COVID-19 pandemic.  The Company now expects to spend between $275 and $325 million (previously $475 million) on capital this year, most of which is for core operating and maintenance.  Given that the economic outlook is evolving quickly, we will continue to review our plans and adjust as needed, being thoughtful about preserving liquidity.  The Company will continue to take a disciplined approach to acquisitions, focusing on only those assets that are a strategic priority.  During the quarter, there were no acquisitions. 

The Company returned $45 million to shareholders through dividends, a 10 percent increase versus the prior year's quarter.  The Company also invested $26 million in share repurchases in the quarter. 

At quarter-end, total debt to trailing-twelve month Adjusted EBITDA was 2.2 times (2.1 times on a net debt basis reflecting cash on hand).  The Company's weighted-average debt maturity is 14 years, and the effective weighted-average interest rate was 4.2 percent.

In April, the Company entered into a $750 million 364-day delayed draw term loan, which further enhanced the Company's already strong liquidity position.  At March 31, 2020 there were no borrowings outstanding under the existing $750 million revolving credit facility.

Outlook
Regarding the Company's outlook, Mr. Hill stated, "The impact from the COVID-19 global pandemic continues to evolve quickly, and it is too early to estimate accurately the full year impact on aggregates demand.  Because we have been designated as an essential business, shipment activity today remains relatively strong across many of our markets as customers execute on their backlog of projects.  However, we expect some project timelines will be modified as every market adjusts to economic disruptions. 

"Because of this uncertainty in aggregates demand, we are withdrawing our previous financial guidance for 2020.  We will continue to closely monitor trends in construction activity and work with our customers to meet their needs in this challenging operating environment.  We will provide updates as more information becomes available and our visibility improves.  While we do not have the ability to control demand, our advantage is our ability to control many other aspects of our business.  We remain confident in our ability to successfully navigate the changing environment.  We will continue to operate from a position of strength supported by the resiliency of our aggregates business, progress on the four strategic disciplines and the engagement of our people."

Conference Call
Vulcan will host a conference call at 10:00 a.m. CDT on May 6, 2020.  A webcast will be available via the Company's website at www.vulcanmaterials.com.  Investors and other interested parties may access the teleconference live by calling 833-962-1439, or 832-900-4623 if outside the U.S., approximately 15 minutes before the scheduled start.  The conference ID is 5190977.  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 with headquarters in Birmingham, Alabama, is the nation's largest producer of construction aggregates – primarily crushed stone, sand and gravel – and a major producer of aggregates-based construction materials, including asphalt mix and ready-mixed concrete.  For additional information about Vulcan, go to www.vulcanmaterials.com.

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: general economic and business conditions; a pandemic, epidemic or other public health emergency, such as the recent outbreak of COVID-19; Vulcan's dependence on the construction industry, which is subject to economic cycles; the timing and amount of federal, state and local funding for infrastructure; changes in the level of spending for private residential and private nonresidential construction; changes in Vulcan's effective tax rate; the increasing reliance on information technology infrastructure, including the risks that the infrastructure does not work as intended, 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; the highly competitive nature of the construction industry; the impact of future regulatory or legislative actions, including those relating to climate change, wetlands, greenhouse gas emissions, the definition of minerals, tax policy or international trade; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena, including the impact of climate change and availability of water; 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 a discontinuation of the London Interbank Offered Rate (LIBOR); volatility in pension plan asset values and liabilities, which may require cash contributions to the pension plans; the impact of environmental cleanup costs and other liabilities relating to existing and/or 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 effect of changes in tax laws, guidance and interpretations; significant downturn in the construction industry may result in the impairment of goodwill or long-lived assets; changes in technologies, which could disrupt the way Vulcan does business and how Vulcan's products are distributed; 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











(in thousands, except per share data)







Three Months Ended

Consolidated Statements of Earnings






March 31

(Condensed and unaudited)




2020


2019










Total revenues




$1,049,242


$996,511

Cost of revenues




847,519


804,836

Gross profit




201,723


191,675

Selling, administrative and general expenses




86,430


90,268

Gain on sale of property, plant & equipment







and businesses




999


7,297

Other operating expense, net




(3,991)


(4,271)

Operating earnings




112,301


104,433

Other nonoperating income (expense), net




(9,336)


3,129

Interest expense, net




30,773


32,934

Earnings from continuing operations







before income taxes




72,192


74,628

Income tax expense




12,194


10,693

Earnings from continuing operations




59,998


63,935

Earnings (loss) on discontinued operations, net of tax



260


(636)

Net earnings




$60,258


$63,299










Basic earnings (loss) per share







Continuing operations




$0.45


$0.48

Discontinued operations




$0.00


$0.00

Net earnings




$0.45


$0.48










Diluted earnings (loss) per share







Continuing operations




$0.45


$0.48

Discontinued operations




$0.00


$0.00

Net earnings




$0.45


$0.48



















Weighted-average common shares outstanding







Basic




132,567


132,043

Assuming dilution




133,259


133,054

Depreciation, depletion, accretion and amortization




$95,480


$89,181

Effective tax rate from continuing operations




16.9%


14.3%










 

 









Table B

Vulcan Materials Company







and Subsidiary Companies















(in thousands)

Consolidated Balance Sheets


March 31


December 31


March 31

(Condensed and unaudited)


2020


2019


2019

Assets







Cash and cash equivalents


$120,041


$271,589


$30,838

Restricted cash


232


2,917


270

Accounts and notes receivable







Accounts and notes receivable, gross


601,182


573,241


563,084

Allowance for doubtful accounts


(3,517)


(3,125)


(2,554)

Accounts and notes receivable, net


597,665


570,116


560,530

Inventories







Finished products


403,612


391,666


369,743

Raw materials


33,676


31,318


27,951

Products in process


5,010


5,604


4,976

Operating supplies and other


28,449


29,720


26,727

Inventories


470,747


458,308


429,397

Other current assets


88,095


76,396


62,816

Total current assets


1,276,780


1,379,326


1,083,851

Investments and long-term receivables


57,987


60,709


50,952

Property, plant & equipment







Property, plant & equipment, cost


8,907,788


8,749,217


8,559,549

Allowances for depreciation, depletion & amortization


(4,506,700)


(4,433,179)


(4,284,211)

Property, plant & equipment, net


4,401,088


4,316,038


4,275,338

Operating lease right-of-use assets, net


420,930


408,189


426,381

Goodwill


3,167,061


3,167,061


3,161,842

Other intangible assets, net


1,083,515


1,091,475


1,085,398

Other noncurrent assets


222,021


225,995


213,090

Total assets


$10,629,382


$10,648,793


$10,296,852

Liabilities







Current maturities of long-term debt


25


25


24

Short-term debt


0


0


178,500

Trade payables and accruals


243,019


265,159


248,119

Other current liabilities


232,632


270,379


232,964

Total current liabilities


475,676


535,563


659,607

Long-term debt


2,785,566


2,784,315


2,780,589

Deferred income taxes, net


648,405


633,039


568,229

Deferred revenue


178,568


179,880


184,744

Operating lease liabilities


399,489


388,042


403,426

Other noncurrent liabilities


551,352


506,097


483,048

Total liabilities


$5,039,056


$5,026,936


$5,079,643

Equity







Common stock, $1 par value


132,433


132,371


132,069

Capital in excess of par value


2,782,738


2,791,353


2,789,864

Retained earnings


2,885,084


2,895,871


2,467,201

Accumulated other comprehensive loss


(209,929)


(197,738)


(171,925)

Total equity


$5,590,326


$5,621,857


$5,217,209

Total liabilities and equity


$10,629,382


$10,648,793


$10,296,852










 

 








Table C

Vulcan Materials Company





and Subsidiary Companies












(in thousands)






Three Months Ended

Consolidated Statements of Cash Flows




March 31

(Condensed and unaudited)


2020


2019

Operating Activities





Net earnings




$60,258


$63,299

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



Depreciation, depletion, accretion and amortization


95,480


89,181

Noncash operating lease expense


8,851


8,717

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


(999)


(7,297)

Contributions to pension plans


(2,144)


(2,320)

Share-based compensation expense


6,716


5,724

Deferred tax expense (benefit)


19,671


774

Changes in assets and liabilities before initial





effects of business acquisitions and dispositions


(99,597)


(47,733)

Other, net





(5,761)


5,819

Net cash provided by operating activities


$82,475


$116,164

Investing Activities





Purchases of property, plant & equipment


(142,650)


(122,019)

Proceeds from sale of property, plant & equipment


2,536


6,512

Proceeds from sale of businesses


0


1,744

Payment for businesses acquired, net of acquired cash


0


1,122

Other, net





9,872


(7,237)

Net cash used for investing activities


($130,242)


($119,878)

Financing Activities





Proceeds from short-term debt


0


196,200

Payment of short-term debt


0


(150,700)

Payment of current maturities and long-term debt


(6)


(6)

Settlements of interest rate derivatives


(19,863)


0

Purchases of common stock


(26,132)


0

Dividends paid




(45,100)


(40,939)

Share-based compensation, shares withheld for taxes


(15,365)


(14,137)

Net cash used for financing activities


($106,466)


($9,582)

Net decrease in cash and cash equivalents and restricted cash


(154,233)


(13,296)

Cash and cash equivalents and restricted cash at beginning of year


274,506


44,404

Cash and cash equivalents and restricted cash at end of period


$120,273


$31,108









 

 












Table D

Segment Financial Data and Unit Shipments












(in thousands, except per unit data)










Three Months Ended












March 31










2020


2019

Total Revenues









Aggregates 1






$868,226


$834,965

Asphalt 2






139,789


132,090

Concrete 






94,765


83,637

Calcium 






2,026


1,951

Segment sales






$1,104,806


$1,052,643

Aggregates intersegment sales





(55,564)


(56,132)

Total revenues






$1,049,242


$996,511

Gross Profit









Aggregates






$194,131


$185,716

Asphalt







(2,435)


(3,272)

Concrete 






9,213


8,563

Calcium 









814


668

Total








$201,723


$191,675

Depreciation, Depletion, Accretion and Amortization




Aggregates






$77,136


$72,521

Asphalt







8,734


8,550

Concrete 






4,082


2,964

Calcium 






49


60

Other








5,479


5,086

Total








$95,480


$89,181

Average Unit Sales Price and Unit Shipments





Aggregates









Freight-adjusted revenues 3






$648,033


$628,607

Aggregates - tons






45,048


45,637

Freight-adjusted sales price 4





$14.39


$13.77













Other Products









Asphalt Mix - tons






2,057


2,022

Asphalt Mix - sales price






$58.51


$55.91













Ready-mixed concrete - cubic yards




734


670

Ready-mixed concrete - sales price




$127.91


$123.94













Calcium - tons






73


68

Calcium - sales price






$27.56


$28.32













1Includes product sales (crushed stone, sand and gravel, sand, and other aggregates), as well as freight & delivery

      costs that we pass along to our customers, and service revenues related to aggregates.

2Includes product sales, as well as service revenues from our asphalt construction paving business.

3Freight-adjusted revenues are Aggregates segment sales excluding freight & delivery revenues and immaterial 
      other revenues related to services, such as landfill tipping fees that are derived from our aggregates business.

4Freight-adjusted sales price is calculated as freight-adjusted revenues divided by aggregates unit shipments.













 

 











Appendix 1

1.   Reconciliation of Non-GAAP Measures



















Aggregates segment freight-adjusted revenues is not a Generally Accepted Accounting Principle (GAAP) measure. We present this metric as it is consistent with the basis by which we review our operating results. We believe that this presentation is consistent with our competitors and meaningful to our investors as it excludes revenues associated with freight & delivery, which are pass-through activities. It also excludes immaterial other revenues related to services, such as landfill tipping fees, that are derived from our aggregates business. Additionally, we use this metric as the basis for calculating the average sales price of our aggregates products. Reconciliation of this metric to its nearest GAAP measure is presented below:


Aggregates Segment Freight-Adjusted Revenues















(in thousands, except per ton data)









Three Months Ended











March 31









2020


2019

Aggregates segment








Segment sales





$868,226


$834,965

Less:      Freight & delivery revenues 1






205,707


195,153

               Other revenues





14,486


11,205

Freight-adjusted revenues





$648,033


$628,607

Unit shipment - tons





45,048


45,637

Freight-adjusted sales price





$14.39


$13.77












1At the segment level, freight & delivery revenues include intersegment freight & delivery (which are eliminated at the consolidated level) and freight to remote

 distribution sites.












Aggregates segment incremental gross profit flow-through rate is not a GAAP measure and represents the year-over-year change in gross profit divided by the year-over-year change in segment sales excluding freight & delivery (revenues and costs). We present this metric as it is consistent with the basis by which we review our operating results. We believe that this presentation is consistent with our competitors and meaningful to our investors as it excludes revenues associated with freight & delivery, which are pass-through activities. Reconciliation of this metrics to its nearest GAAP measure is presented below:


Aggregates Segment Incremental Gross Profit Margin in Accordance with GAAP












(dollars in thousands)









Three Months Ended











March 31









2020


2019

Aggregates segment








Gross profit





$194,131


$185,716

Segment sales





$868,226


$834,965

Gross profit margin





22.4%


22.2%

Incremental gross profit margin





25.3%














Aggregates Segment Incremental Gross Profit Flow-through Rate (Non-GAAP)












(dollars in thousands)









Three Months Ended











March 31









2020


2019

Aggregates segment








Gross profit





$194,131


$185,716

Segment sales





$868,226


$834,965

Less:     Freight & delivery revenues 1







205,707


195,153

     Segment sales excluding freight & delivery





$662,519


$639,812

Gross profit margin excluding freight & delivery





29.3%


29.0%

Incremental gross profit flow-through rate





37.1%














1At the segment level, freight & delivery revenues include intersegment freight & delivery (which are eliminated at the consolidated level) and freight to remote

 distribution sites.












GAAP does not define "Aggregates segment cash gross profit" and it should not be considered as an alternative to earnings measures defined by GAAP. We and the investment community use this metric to assess the operating performance of our business. Additionally, we present this metric as we believe that it closely correlates to long-term shareholder value. We do not use this metric as a measure to allocate resources.  Aggregates segment cash gross profit per ton is computed by dividing Aggregates segment cash gross profit by tons shipped. Reconciliation of this metric to its nearest GAAP measure is presented below:


Aggregates Segment Cash Gross Profit
















(in thousands, except per ton data)











Three Months Ended











March 31









2020


2019

Aggregates segment








Gross profit





$194,131


$185,716

Depreciation, depletion, accretion and amortization





77,136


72,521

     Aggregates segment cash gross profit





$271,267


$258,237

Unit shipments - tons





45,048


45,637

Aggregates segment cash gross profit per ton





$6.02


$5.66












 

 












Appendix 2


Reconciliation of Non-GAAP Measures (Continued)






GAAP does not define "Earnings Before Interest, Taxes, Depreciation and Amortization" (EBITDA) and it should not be considered as an alternative to earnings measures defined by GAAP. We use this metric to assess the operating performance of our business and as a basis for strategic planning and forecasting as we believe that it closely correlates to long-term shareholder value. We do not use this metric as a measure to allocate resources. We adjust EBITDA for certain items to provide a more consistent comparison of earnings performance from period to period. Reconciliation of this metric to its nearest GAAP measure is presented below:















EBITDA and Adjusted EBITDA



















(in thousands)







Three Months Ended




TTM









March 31




March 31







2020


2019


2020


2019


Net earnings


$60,258


$63,299


$614,621


$526,125


Income tax expense


12,194


10,693


136,699


121,045


Interest expense, net


30,773


32,934


126,839


132,583


(Earnings) loss on discontinued operations, net of tax


(260)


636


3,945


2,256


EBIT




$102,965


$107,562


$882,104


$782,009


Depreciation, depletion, accretion and amortization


95,480


89,181


380,895


353,988


EBITDA



$198,445


$196,743


$1,262,999


$1,135,997


     Gain on sale of businesses


0


(4,064)


(9,289)


(4,064)


     Property donation


0


0


10,847


0


     Business interruption claims recovery


0


0


0


(559)


     Charges associated with divested operations


0


0


3,033


18,545


     Business development 1


1,060


0


2,808


4,686


     COVID-19 direct incremental costs


648


0


648


0


     Restructuring charges 2


868


0


7,325


1,974


Adjusted EBITDA


$201,021


$192,679


$1,278,371


$1,156,579


     Depreciation, depletion, accretion and amortization


(95,480)


(89,181)


(380,895)


(353,988)


Adjusted EBIT


$105,541


$103,498


$897,476


$802,591


1Represents non-routine charges associated with acquisitions including the cost impact of purchase accounting inventory valuations.


2Restructuring charges are included within other operating expenses. The charges relate to managerial restructuring.

















Similar to our presentation of Adjusted EBITDA, we present Adjusted Diluted EPS from continuing operations to provide a more consistent comparison of earnings performance from period to period.















Adjusted Diluted EPS from Continuing Operations (Adjusted Diluted EPS)
























Three Months Ended




TTM









March 31




March 31







2020


2019


2020


2019


Diluted EPS from continuing operations


$0.45


$0.48


$4.64


$3.95


     Items included in Adjusted EBITDA above


0.02


(0.02)


0.07


0.11


     Tax reform income tax savings


0.00


0.00


0.00


0.01


Adjusted Diluted EPS


$0.47


$0.46


$4.71


$4.07















 

 












Appendix 3

Reconciliation of Non-GAAP Measures (Continued)

















We define Return on Invested Capital (ROIC) as Adjusted EBITDA for the trailing-twelve months divided by average invested capital (as illustrated below) during the trailing 5-quarters. Our calculation of ROIC is considered a non-GAAP financial measure because we calculate ROIC using the non-GAAP metric EBITDA. We believe that our ROIC metric is meaningful because it helps investors assess how effectively we are deploying our assets. Although ROIC is a standard financial metric, numerous methods exist for calculating a company's ROIC. As a result, the method we use to calculate our ROIC may differ from the methods used by other companies.













Return on Invested Capital

















(in thousands)












TTM












March 31










2020


2019

Adjusted EBITDA






$1,278,371


$1,156,579

Average Invested Capital 1








     Property, plant & equipment






4,314,098


4,166,729

     Goodwill






3,166,018


3,158,194

     Other intangible assets






1,081,741


1,099,572

     Fixed and Intangible Assets






$8,561,857


$8,424,495













     Current Assets






1,263,843


1,106,662

     Less: Cash and cash equivalents






108,702


45,242

     Less: Deferred tax






17,985


0

     Adjusted Current Assets






1,137,156


1,061,420













     Current Liabilities






573,944


669,535

     Less: Current maturities of long-term debt






24


23

     Less: Short-term debt






63,100


214,300

     Adjusted Current Liabilities






510,820


455,212

     Adjusted Net Working Capital






$626,336


$606,208













Average Invested Capital






$9,188,193


$9,030,703













Return on Invested Capital






13.9%


12.8%













1Average Invested Capital is based on a trailing 5-quarters.





 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/vulcan-reports-first-quarter-results-301053519.html

SOURCE Vulcan Materials Company