NYSE | VMC: $68.61 +$0.60 +0.88% Volume: 1,541,191 November 21, 2014
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Vulcan Announces Third Quarter 2013 Results

11/04/13

BIRMINGHAM, Ala., Nov. 4, 2013 /PRNewswire/ -- Vulcan Materials Company (NYSE:VMC), the nation's largest producer of construction aggregates, today announced results for the third quarter ending September 30, 2013.

(Logo: http://photos.prnewswire.com/prnh/20090710/CL44887LOGO )

Third Quarter Summary

  • Net sales increased $88 million, or 13 percent, versus the prior year's third quarter.
  • Gross profit improved $32 million, or 25 percent, from the prior year.
  • Each major product line realized growth in unit shipments from the prior year, due mostly to continued improvement in private construction.
    • Aggregates shipments increased 9 percent.
    • Volumes in ready-mixed concrete and cement increased 17 percent and 10 percent, respectively.
    • Asphalt mix volumes increased 4 percent.
  • Aggregates gross profit increased $25 million and gross profit margin increased 130 basis points.
  • Earnings from continuing operations were $42 million, or $0.32 per diluted share, versus $16 million, or $0.12 per diluted share, in the prior year.
  • EBITDA was $180 million, an increase of $39 million, or 27 percent, compared to the third quarter of last year. Cash earnings were $126 million, an increase of $41 million. Results from the current year's third quarter include a $9 million pretax gain on sale of reclaimed real estate.

Don James, Chairman and Chief Executive Officer, said, "Our third quarter results reflect the continued recovery of our markets and the benefits of the Company's powerful earnings leverage.  A 9 percent increase in aggregates volume helped drive a 20 percent increase in aggregates gross profit.  In the third quarter, cash gross profit per ton of aggregates increased to $4.83 per ton, our highest quarterly unit profitability in more than four years.  As a result, cash gross profit per ton on a trailing twelve month basis now is 26 percent higher than at the prior peak level of shipments, setting the stage for better earnings leverage in this cycle.  Pricing continues to benefit from an improving demand outlook and we are realizing price improvements across most of our markets.  Demand for our products continues to benefit from recovery in private construction activity, particularly residential construction, in many of our key markets.  Growth in residential construction activity, and its traditional follow-on impact on private nonresidential construction, continues to underpin our expectations for future volume growth and earnings improvement."

Commentary on Third Quarter 2013 Segment Results
Aggregates segment gross profit was $150 million, a $25 million increase from the prior year.  This earnings improvement was due to volume growth in virtually all our markets and broad-based pricing gains.  Aggregates shipments increased 9 percent compared to the prior year.  On a same store basis, aggregates shipments increased 10 percent.  Many markets realized double-digit volume growth including a number of the Company's key markets.  Strong private construction demand in Florida led to an increase in shipments of more than 35 percent versus last year's third quarter.  Shipments in Texas also benefited from stronger demand, particularly large industrial projects, increasing nearly 30 percent versus the prior year.  Increased private construction activity also benefited aggregates shipments in other key markets.  Arizona, California, Georgia and North Carolina each increased more than 14 percent.  Overall, freight-adjusted aggregates prices increased more than 2 percent compared to the prior year.  In most markets we realized positive price growth versus the prior year with year-over-year price improvements ranging from low to mid-single digits.   

In the third quarter, aggregates sales volumes exceeded production levels, lowering segment gross profit approximately $6 million.  Additionally, cost of sales increased $2 million due to increased freight and distribution costs resulting from higher growth in shipments from sales yards along the Gulf Coast.  Our current inventory levels provide opportunity for higher production levels and greater efficiencies as demand continues to improve.

Each of the non-aggregates segments also benefited from volume growth and price improvement, leading to a $7 million overall improvement in gross profit compared to the prior year.  Concrete shipments and pricing increased in each of the Company's markets versus the prior year.  Overall, concrete shipments increased 17 percent from the prior year and segment gross profit improved $5 million.  Asphalt segment gross profit increased 24 percent from the prior year, benefitting from better materials margins and a 4 percent increase in asphalt mix shipments.  Cement segment gross profit approximated the prior year.                           

2013 Outlook
Regarding the Company's outlook, Mr. James stated, "Through the first nine months of 2013, segment gross profit and margins improved in all major product lines, leading to 180 basis points of margin expansion overall.  This improvement was driven by higher volumes and pricing in most major products.  Despite a challenging first half of the year due to wet weather, aggregates shipments were up 3 percent through the first nine months of 2013, excluding the effects of the divestiture of our Wisconsin aggregates operations as well as acquisitions in Texas and Georgia completed earlier this year.  This year-to-date growth in aggregates demand is in-line with our expectations at the beginning of the year and is driven by improved private construction activity, particularly in several of our key states, including Arizona, California, Florida, Georgia and Texas.  Through the first nine months of the year, aggregates shipments in these five states combined were up more than 16 percent.  Looking ahead, these states have accounted for more than one-third of all U.S. housing starts in the trailing twelve months ending September and 80 percent of contract awards for all U.S. private nonresidential buildings, measured in square feet, during the same period.  As a result, we believe the outlook for volume growth in these key states should continue and help offset the impact of several large highway and industrial projects that have now been deferred into the first half of 2014.      

Mr. James continued, "As we look at the projects that could impact our aggregates volumes for the remainder of the year and into 2014, we continue to see a disproportionately greater number of large highway and industrial projects.  The timing of shipments to these projects remains difficult to predict.  New highway projects, as measured by trailing twelve month contract awards, increased 7 percent versus the prior year's level – the third consecutive quarter with an increase.  The large increase in TIFIA funding contained in last year's highway bill should also positively impact future demand.

"Year-to-date, aggregates volumes are up more than 2 percent and pricing has increased more than 3 percent with virtually all markets realizing price growth versus the prior year.  Assuming normal weather patterns, we expect these year-over-year growth trends to continue in the fourth quarter.

"In our non-aggregates businesses, overall segment gross profit has improved $24 million through the first nine months of 2013.  All three segments have reported improved gross profit and we expect each to report full year growth in 2013.  Asphalt materials margin increased throughout 2012 and continued to improve in 2013, due mostly to lower liquid asphalt costs.  Full year concrete volumes and materials margin are expected to improve in 2013 as housing and private construction continue to recover in key states.  Concrete volumes in the first nine months of 2013 increased 13 percent versus the prior year due in part to increased private construction activity in Florida, where volumes have increased more than 20 percent.  We expect increased private construction activity to continue leading to improved unit profitability in the Concrete segment.  Cement earnings should improve in 2013 due primarily to lower production costs.

"We continue to expect full year Selling, Administrative and General expenses to be flat to slightly down as compared to the prior year.  Year-to-date, controllable costs are down versus the prior year as we continue to tightly manage expenditures.

"We remain focused on our strategic initiatives to enhance our leading aggregates reserves positions in attractive markets.  Year-to-date, we have divested certain assets in lower margin, lower growth markets in the Midwest and have added aggregates reserves and operations in attractive markets in Texas and Georgia.  Going forward, we will continue to look for opportunities to further enhance our strategic coast-to-coast footprint. 

"We have reduced debt $289 million in the last twelve months and we remain committed to strengthening our balance sheet, unlocking capital for more productive uses, improving our operating results and creating value for shareholders." 

Conference Call
Vulcan will host a conference call at 10:00 a.m. CT on November 4, 2013.  Investors and other interested parties can access the live webcast via the Company's website at www.vulcanmaterials.com.  To participate by phone within the U.S., call 855-877-0343 approximately 10 minutes before the scheduled start.  International participants can dial 678-509-8772.  The access code is 88948590.  The webcast 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, a major producer of asphalt mix and concrete and a leading producer of cement in Florida.

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: risks that Vulcan's intentions, plans and results with respect to cost reductions, profit enhancements and asset sales, as well as streamlining and other strategic actions adopted by Vulcan, will not be able to be realized to the desired degree or within the desired time period and that the results thereof will differ from those anticipated or desired; uncertainties as to the timing and valuations that may be realized or attainable with respect to planned asset sales; those associated with general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; the effects of the sequestration on demand for our products in markets that may be subject to decreases in federal spending; changes in Vulcan's effective tax rate; the increasing reliance on 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; 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  


Nine Months Ended  

Consolidated Statements of Earnings


September 30  


September 30  

(Condensed and unaudited)


2013


2012


2013


2012

Net sales


$775,183


$687,616


$1,975,814


$1,836,357

Delivery revenues


38,385


41,245


114,649


122,522

Total revenues


813,568


728,861


2,090,463


1,958,879

Cost of goods sold


616,200


560,693


1,666,281


1,581,537

Delivery costs


38,385


41,245


114,649


122,522

Cost of revenues


654,585


601,938


1,780,930


1,704,059

Gross profit


158,983


126,923


309,533


254,820

Selling, administrative and general expenses


65,854


65,441


195,411


192,267

Gain on sale of property, plant & equipment









and businesses, net


9,350


2,009


36,869


21,687

Restructuring charges


-


(3,056)


(1,509)


(9,018)

Exchange offer costs


-


(1,206)


-


(43,331)

Other operating expense, net


(2,712)


(3,363)


(12,907)


(2,642)

Operating earnings


99,767


55,866


136,575


29,249

Other nonoperating income, net


2,310


1,806


4,968


4,196

Interest expense, net


49,134


53,043


152,757


158,997

Earnings (loss) from continuing operations









before income taxes


52,943


4,629


(11,214)


(125,552)

Provision for (benefit from) income taxes


10,793


(10,992)


(21,874)


(67,138)

Earnings (loss) from continuing operations


42,150


15,621


10,660


(58,414)

Earnings (loss) on discontinued operations, net of taxes


(787)


(1,361)


4,640


2,338

Net earnings (loss)


$41,363


$14,260


$15,300


($56,076)

Basic earnings (loss) per share









Continuing operations


$0.32


$0.12


$0.08


($0.45)

Discontinued operations


$0.00


($0.01)


$0.04


$0.02

Net earnings (loss)


$0.32


$0.11


$0.12


($0.43)

Diluted earnings (loss) per share









Continuing operations


$0.32


$0.12


$0.08


($0.45)

Discontinued operations


($0.01)


($0.01)


$0.04


$0.02

Net earnings (loss)


$0.31


$0.11


$0.12


($0.43)












Weighted-average common shares outstanding









Basic


130,266


129,753


130,234


129,674

Assuming dilution


131,320


130,215


131,368


129,674

Dividends declared per share


$0.01


$0.01


$0.03


$0.03

Depreciation, depletion, accretion and amortization


$78,320


$84,108


$230,877


$253,391

Effective tax rate from continuing operations


20.4%


NMF  


195.1%


53.5%












 







Table B

Vulcan Materials Company

and Subsidiary Companies



(Amounts in thousands, except per share data)

Consolidated Balance Sheets


September 30


December 31


September 30

(Condensed and unaudited)


2013


2012


2012

Assets







Cash and cash equivalents


$245,813


$275,478


$243,126

Accounts and notes receivable







Accounts and notes receivable, gross


450,642


303,178


403,520

Less: Allowance for doubtful accounts


(5,412)


(6,198)


(6,106)

    Accounts and notes receivable, net


445,230


296,980


397,414

Inventories







Finished products


255,047


262,886


263,893

Raw materials


29,480


27,758


28,221

Products in process


6,385


5,963


6,209

Operating supplies and other


37,267


38,415


38,655

    Inventories


328,179


335,022


336,978

Current deferred income taxes


39,326


40,696


45,353

Prepaid expenses


31,854


21,713


26,384

Assets held for sale


10,559


15,083


-

Total current assets


1,100,961


984,972


1,049,255

Investments and long-term receivables


43,275


42,081


42,226

Property, plant & equipment







Property, plant & equipment, cost


6,792,470


6,666,617


6,690,448

Reserve for depreciation, depletion & amortization


(3,578,010)


(3,507,432)


(3,477,496)

    Property, plant & equipment, net


3,214,460


3,159,185


3,212,952

Goodwill


3,081,521


3,086,716


3,086,716

Other intangible assets, net


697,655


692,532


693,308

Other noncurrent assets


172,184


161,113


141,459

Total assets


$8,310,056


$8,126,599


$8,225,916

Liabilities







Current maturities of long-term debt


$163


$150,602


$285,153

Trade payables and accruals


154,451


113,337


133,209

Other current liabilities


204,029


171,671


213,735

Liabilities of assets held for sale


-


801


-

Total current liabilities


358,643


436,411


632,097

Long-term debt


2,523,389


2,526,401


2,527,450

Noncurrent deferred income taxes


673,135


657,367


680,880

Deferred revenue


225,863


73,583


-

Other noncurrent liabilities


666,115


671,775


618,292

Total liabilities


4,447,145


4,365,537


4,458,719

Equity







Common stock, $1 par value


129,989


129,721


129,596

Capital in excess of par value


2,598,744


2,580,209


2,567,859

Retained earnings


1,288,054


1,276,649


1,274,465

Accumulated other comprehensive loss


(153,876)


(225,517)


(204,723)

Total equity


3,862,911


3,761,062


3,767,197

Total liabilities and equity


$8,310,056


$8,126,599


$8,225,916








 








Table C

Vulcan Materials Company





and Subsidiary Companies










(Amounts in thousands)






Nine Months Ended

Consolidated Statements of Cash Flows


September 30

(Condensed and unaudited)


2013


2012

Operating Activities





Net earnings (loss)


$15,300


($56,076)

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




Depreciation, depletion, accretion and amortization


230,877


253,391

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


(48,597)


(31,886)

Proceeds from sale of future production, net of transaction costs


153,095


-

Contributions to pension plans


(3,535)


(3,379)

Share-based compensation


16,789


9,362

Deferred tax provision


(25,862)


(66,194)

Changes in assets and liabilities before initial





effects of business acquisitions and dispositions


(78,947)


(9,886)

Other, net


892


(1,573)

Net cash provided by operating activities


260,012


93,759

Investing Activities





Purchases of property, plant & equipment


(117,310)


(49,418)

Proceeds from sale of property, plant & equipment


14,974


28,930

Proceeds from sale of businesses, net of transaction costs


51,604


10,690

Payment for businesses acquired, net of acquired cash


(89,951)


-

Other, net


2


963

Net cash used for investing activities


(140,681)


(8,835)

Financing Activities





Proceeds from line of credit


156,000


-

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


(306,493)


(120)

Dividends paid


(3,890)


(3,885)

Proceeds from exercise of stock options


4,491


6,167

Other, net


896


201

Net cash provided by (used for) financing activities


(148,996)


2,363

Net increase (decrease) in cash and cash equivalents


(29,665)


87,287

Cash and cash equivalents at beginning of year


275,478


155,839

Cash and cash equivalents at end of period


$245,813


$243,126









 













Table D

Segment Financial Data and Unit Shipments










(Amounts in thousands, except per unit data)






Three Months Ended


Nine Months Ended






September 30


September 30






2013


2012


2013


2012

Total Revenues









Aggregates (a)









Segment revenues


$561,207


$491,158


$1,428,644


$1,317,923

Intersegment sales


(56,519)


(42,522)


(134,581)


(112,919)

    Net sales


504,688


448,636


1,294,063


1,205,004

Concrete (b)









Segment revenues


129,751


108,651


349,934


303,285

Intersegment sales


-


-


-


-

    Net sales


129,751


108,651


349,934


303,285

Asphalt Mix









Segment revenues


127,866


118,219


295,088


293,266

Intersegment sales


-


-


-


-

    Net sales


127,866


118,219


295,088


293,266

Cement (c)









Segment revenues


25,129


22,727


71,641


63,569

Intersegment sales


(12,251)


(10,617)


(34,912)


(28,767)

    Net sales


12,878


12,110


36,729


34,802

Totals









    Net sales


775,183


687,616


1,975,814


1,836,357

        Delivery revenues


38,385


41,245


114,649


122,522

Total revenues


$813,568


$728,861


$2,090,463


$1,958,879

Gross Profit









Aggregates


$149,789


$124,882


$301,695


$270,768

Concrete


(3,876)


(8,506)


(19,778)


(29,850)

Asphalt Mix


13,589


10,976


24,760


15,498

Cement


(519)


(429)


2,856


(1,596)

Total


$158,983


$126,923


$309,533


$254,820

Depreciation, Depletion, Accretion and Amortization






Aggregates


$56,749


$59,637


$169,235


$183,660

Concrete


8,379


10,488


24,539


32,105

Asphalt Mix


2,242


2,130


6,400


6,590

Cement


5,426


5,780


13,758


13,547

Other


5,524


6,073


16,945


17,489

Total


$78,320


$84,108


$230,877


$253,391

Unit Shipments









Aggregates customer tons (d)


39,433


36,390


101,651


99,556

Internal tons (e)


3,332


2,990


8,538


8,000

Aggregates - tons


42,765


39,380


110,189


107,556

Ready-mixed concrete - cubic yards


1,304


1,116


3,558


3,149

Asphalt Mix - tons


2,172


2,085


5,204


5,208

Cement customer tons


137


123


380


328

Internal tons (e)


147


136


415


367

Cement - tons


284


259


795


695

Average Unit Sales Price (including internal sales)







Aggregates (freight-adjusted) (f)


$10.89


$10.63


$10.79


$10.44

Ready-mixed concrete


$94.60


$93.18


$93.10


$92.47

Asphalt Mix


$55.63


$55.52


$54.80


$55.12

Cement


$81.68


$77.89


$82.46


$77.97

(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.

(c)

Includes cement and calcium products.

(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 downstream operations (i.e., asphalt mix and ready-mixed concrete). Sales from internal shipments are eliminated in net sales 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 excluding third-party VPP tons.














 












Table E


1.   Supplemental Cash Flow Information


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






















(Amounts in thousands)










Nine Months Ended










September 30










2013


2012

Cash Payments





Interest (exclusive of amount capitalized)


$102,137


$104,440

Income taxes


29,909


19,219

Noncash Investing and Financing Activities 





Liabilities assumed in business acquisition


232


-

Accrued liabilities for purchases of property, plant & equipment


9,197


4,316






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. 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. We do not use these metrics as a measure to allocate resources. Additionally, we adjust EBITDA for certain items to provide a more consistent comparison of performance from period to period. 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)










Nine Months Ended










September 30










2013


2012

Net cash provided by operating activities


$260,012


$93,759

Purchases of property, plant & equipment


(117,310)


(49,418)

Free cash flow


$142,702


$44,341













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


Nine Months Ended






September 30


September 30






2013


2012


2013


2012

Aggregates segment









Gross profit


$149,789


$124,882


$301,695


$270,768

DDA&A


56,749


59,637


169,235


183,660


Aggregates segment cash gross profit


$206,538


$184,519


$470,930


$454,428













 














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.  Cash earnings adjusts EBITDA for net interest expense and current taxes.  








(Amounts in thousands)








Three Months Ended


Nine Months Ended








September 30


September 30








2013


2012


2013


2012















Reconciliation of Net Earnings to EBITDA and Cash Earnings





















Net earnings (loss)

$41,363


$14,260


$15,300


($56,076)

Provision for (benefit from) income taxes


10,793


(10,992)


(21,874)


(67,138)

Interest expense, net


49,134


53,043


152,757


158,997

(Earnings) loss on discontinued operations, net of taxes


787


1,361


(4,640)


(2,338)

EBIT


102,077


57,672


141,543


33,445

Plus: Depreciation, depletion, accretion and amortization


78,320


84,108


230,877


253,391

EBITDA


$180,397


$141,780


$372,420


$286,836

Less: Interest expense, net


(49,134)


(53,043)


(152,757)


(158,997)

         Current taxes

(5,687)


(4,244)


(2,270)


2,069

Cash earnings


$125,576


$84,493


$217,393


$129,908















Adjusted EBITDA and Adjusted EBIT









EBITDA

$180,397


$141,780


$372,420


$286,836

Gain on sale of real estate and businesses


(9,161)


-


(35,382)


(18,321)

Restructuring charges


-


3,056


1,509


9,018

Exchange offer costs


-


1,206


-


43,331

Adjusted EBITDA

$171,236


$146,042


$338,547


$320,864

Less: Depreciation, depletion, accretion and amortization


78,320


84,108


230,877


253,391

Adjusted EBIT






$92,916


$61,934


$107,670


$67,473











































EBITDA Bridge 


Three Months Ended




Nine Months Ended



(Amounts in millions)


September 30




September 30








2012 Actual EBITDA


$142




$287



Plus:

Gain on sale of real estate and businesses


-




(18)




Restructuring charges


3




9




Exchange offer costs


1




43



2012 Adjusted EBITDA


146




321

















Increase / (Decrease) due to









Aggregates:

Volumes


21




16





Selling prices


11




39





Costs and other items


(11)




(38)



Concrete


3




2



Asphalt Mix


3




9



Cement

-




4



Selling, administrative and general expenses


-




(3)



Other


(2)




(12)



2013 Adjusted EBITDA


171




338

















Plus:

Gain on sale of real estate and businesses


9




35




Restructuring charges


-




(1)








2013 Actual EBITDA


$180




$372













































 

SOURCE Vulcan Materials Company

Investor Contact: Mark Warren (205) 298-3220; Media Contact: David Donaldson (205) 298-3220

Contact

Vulcan Materials Company
Corporate Office
1200 Urban Center Drive
P.O. Box 385014
Birmingham, AL 35242

Tel: (205) 298-3000