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Vulcan Materials
2018 Annual Report

Vulcan Announces First Quarter 2019 Results

05/02/19
EPS from Continuing Operations Increases to $0.48 per Diluted Share
Aggregates Gross Profit Increases 25 Percent and Unit Profitability Expands

BIRMINGHAM, Ala., May 2, 2019 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's largest producer of construction aggregates, today announced results for the quarter ended March 31, 2019.

Net earnings were $63 million and Adjusted EBITDA was $193 million in the first quarter.  The 15 percent growth in Adjusted EBITDA was driven by strong aggregates shipments, up 13 percent year-over-year, and a 5.4 percent increase in aggregates pricing. 

Tom Hill, Chairman and Chief Executive Officer, said, "Our first quarter results represent a good start to the year and are consistent with our full-year expectations.  Broad-based shipment growth, compounding price improvements and solid operating efficiencies in our aggregates business contributed to 17 percent growth in total revenues and 29 percent growth in operating earnings.  These results demonstrate the strength of our unique aggregates-centric business model. 

"Aggregates segment gross profit increased from $3.66 per ton to $4.07 per ton.  This double-digit improvement in first quarter unit profitability builds on last year's results, and we are well positioned for further gains in our industry-leading unit profitability. 

"Our key markets are benefitting from both robust growth in public construction demand and continued growth in private demand.  Leading indicators, such as construction award activity, signal broad-based shipment growth across our footprint.  Aggregates pricing momentum continues to improve – consistent with our full-year expectations.  As a result, we reiterate our full-year expectations for 2019 earnings from continuing operations of between $4.55 and $5.05 per diluted share and Adjusted EBITDA of between $1.250 and $1.330 billion."

First quarter and trailing twelve month highlights include:


First Quarter


Trailing Twelve Months


Amounts in millions, except per unit data

2019

2018


2019

2018


Total revenues

$   996.5

$   854.5


$  4,524.9

$  3,957.4


Gross profit

$   191.7

$   159.3


$  1,133.3

$     994.6


Aggregates segment







Segment sales

$   835.0

$   699.7


$  3,649.0

$  3,145.5


Freight-adjusted revenue

$   628.6

$   529.4


$  2,766.5

$  2,425.3


Gross profit

$   185.7

$   148.2


$  1,029.4

$     864.0


Shipments (tons)

45.6

40.5


206.5

185.5


Freight-adjusted sales price per ton

$   13.77

$   13.06


$     13.40

$     13.08


Gross profit per ton

$     4.07

$     3.66


$      4.99

$      4.66


Asphalt, Concrete & Calcium segments gross profit

$      6.0

$     11.1


$     103.9

$     130.7


Selling, Administrative and General (SAG)

$     90.3

$     78.3


$     345.3

$     320.9


SAG as % of Total revenues

9.1%

9.2%


7.6%

8.1%


Earnings from continuing operations before income taxes

$     74.6

$     48.5


$     649.4

$     369.5


Net earnings

$     63.3

$     53.0


$     526.1

$     609.2


Adjusted EBIT

$   103.5

$     86.4


$     802.6

$     684.6


Adjusted EBITDA

$   192.7

$   167.8


$  1,156.6

$  1,000.5


Earnings from continuing operations per diluted share

$     0.48

$     0.40


$      3.95

$      4.48


Adjusted earnings from continuing operations per diluted share

$     0.46

$     0.44


$      4.07

$      3.14









Segment Results

Aggregates
First quarter segment gross profit increased 25 percent to $186 million, or $4.07 per ton.  As a percentage of segment sales, gross profit margin expanded 100 basis points due to strong growth in shipments and price improvements.

Trailing-twelve month same-store incremental gross profit flow-through rate was 57 percent, which is in line with longer-term expectations of 60 percent.  As a reminder, quarterly gross profit flow-through rates can vary widely from quarter to quarter; therefore, the Company evaluates this metric on a trailing-twelve month basis.

First quarter aggregates shipments increased 13 percent (11 percent on a same-store basis) versus the prior year quarter.  Solid underlying fundamentals and pent-up demand carried over from last year helped drive shipment growth across most of the Company's footprint.  In California, shipments decreased by double-digits due to record rainfall throughout most of the quarter.  A strong demand environment, driven by transportation-related construction as well as growth in the Company's project-related bookings, support our expectations for shipment growth in California in 2019.

Price growth was positive across all markets served by the Company.  For the quarter, freight-adjusted average sales price for aggregates increased 5.4 percent versus the prior year's quarter.  Excluding mix impact, aggregates price increased 5.8 percent compared to the prior year first quarter.  Pricing was particularly strong in Arizona, California, Georgia, Tennessee and Texas.  Positive trends in backlogged project work along with demand visibility and customer confidence support continued upward pricing movements throughout 2019.

First quarter same-store unit cost of sales (freight-adjusted) increased 3 percent compared to the prior year quarter due in part to planned higher repair and maintenance costs in advance of the construction season.  Unit cost of sales in California was negatively impacted by record rainfall.  The Company remains focused on compounding improvements in unit margins throughout the cycle through fixed cost leverage, price growth and operating efficiencies. 

Asphalt, Concrete and Calcium
Asphalt segment gross profit was a loss of $3 million for the first quarter, in line with expectations.  Asphalt shipments increased 11 percent (5 percent same-store) and asphalt mix selling prices increased 5 percent in the first quarter, or $2.73 per ton.  The average unit cost for liquid asphalt was 29 percent higher than the prior year quarter but remained relatively stable throughout the quarter on a monthly basis.  Pricing gains are beginning to offset higher liquid asphalt costs, but their impact will be gradual during 2019.  The full-year earnings outlook for our Asphalt segment remains unchanged.

Concrete segment gross profit was $9 million versus $10 million in the prior year quarter.  Same-store shipments decreased 10 percent year-over-year driven by inclement weather in Virginia.  Same-store average price increases of 1 percent led to a modest gain in same-store material margin. 

Calcium segment gross profit was $0.7 million, a slight increase versus the prior year quarter.

Capital Allocation and Financial Position

Capital expenditures in the first quarter were $122 million.  This amount included $67 million of core operating and maintenance capital investments to improve or replace existing property, plant and equipment.  In addition, the Company invested $55 million in internal growth projects to secure new aggregates reserves, develop new production sites, enhance the Company's distribution capabilities, and support the targeted growth of its asphalt operations.  The Company's full-year expectations for 2019 remain the same - approximately $250 million on maintenance capital and $200 million for internal growth projects that are largely underway.

During the quarter, the Company returned $41 million to shareholders through dividends, a 10 percent increase versus the prior year quarter.  No shares were repurchased during the quarter.  At quarter-end, total debt was $3.0 billion, or 2.6 times trailing-twelve month Adjusted EBITDA.

Selling, Administrative and General (SAG) Expenses and Taxes

SAG expense in the quarter was $90 million versus $78 million in the prior year quarter.  Full-year expectations for total SAG expense remain unchanged at $355 million.  On a trailing-twelve month basis, SAG expense as a percentage of total revenues was 7.6 percent, 50 basis points lower than the prior year period.  The Company remains focused on further leveraging its overhead cost structure. 

In the first quarter, the Company reported income tax expense of $11 million versus income tax benefit of $5 million in the prior year quarter.  The first quarter tax provision includes $9 million less of discrete adjustments related to stock-based incentive compensation compared to the prior year quarter.  The Company continues to project an effective tax rate for the full year of 20 percent.

Demand and Earnings Outlook

Regarding the Company's full-year outlook for 2019, Mr. Hill stated, "We delivered good incremental earnings in the first quarter, and we are well positioned to carry that momentum forward through the remainder of the year.  Above-average demand growth in Vulcan markets compared to the rest of the United States further supports our positive outlook for shipment growth.  The underlying direction of unit profitability remains clear, supported by our strategic and tactical focus on compounding pricing improvements and operating disciplines.  We expect earnings from continuing operations of between $4.55 and $5.05 per diluted share and Adjusted EBITDA of between $1.250 and $1.330 billion.  All other aspects of our expectations are consistent with our outlook provided in February."

Conference Call

Vulcan will host a conference call at 10:00 a.m. CT on May 2, 2019.  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 888-221-3881, or 720-452-9217 if outside the U.S. approximately 10 minutes before the scheduled start.  The conference ID is 8961757.  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: 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; the increasing reliance on information technology infrastructure for Vulcan's ticketing, procurement, financial statements and other processes could adversely affect operations in the event 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; 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, 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; 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; 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; 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 we do business and how our products are distributed; the effect of changes in tax laws, guidance and interpretations; 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)



2019


2018









Total revenues



$996,511


$854,474

Cost of revenues



804,836


695,140

Gross profit



191,675


159,334

Selling, administrative and general expenses



90,268


78,340

Gain on sale of property, plant & equipment






and businesses



7,297


4,164

Other operating expense, net



(4,271)


(3,963)

Operating earnings



104,433


81,195

Other nonoperating income, net



3,129


5,071

Interest expense, net



32,934


37,774

Earnings from continuing operations






before income taxes



74,628


48,492

Income tax expense (benefit)



10,693


(4,903)

Earnings from continuing operations



63,935


53,395

Earnings (loss) on discontinued operations, net of tax



(636)


(416)

Net earnings



$63,299


$52,979









Basic earnings (loss) per share






Continuing operations



$0.48


$0.40

Discontinued operations



0.00


0.00

Net earnings



$0.48


$0.40









Diluted earnings (loss) per share






Continuing operations



$0.48


$0.40

Discontinued operations



0.00


(0.01)

Net earnings



$0.48


$0.39

















Weighted-average common shares outstanding






Basic



132,043


132,690

Assuming dilution



133,054


134,359

Depreciation, depletion, accretion and amortization



$89,181


$81,439

Effective tax rate from continuing operations



14.3%


-10.1%

 

 

 









Table B

Vulcan Materials Company







and Subsidiary Companies











(in thousands)

Consolidated Balance Sheets


March 31


December 31


March 31

(Condensed and unaudited)


2019


2018


2018

Assets







Cash and cash equivalents


$30,838


$40,037


$38,141

Restricted cash


270


4,367


8,373

Accounts and notes receivable







Accounts and notes receivable, gross


563,084


542,868


492,103

Allowance for doubtful accounts


(2,554)


(2,090)


(2,667)

Accounts and notes receivable, net


560,530


540,778


489,436

Inventories







Finished products


369,743


372,604


340,666

Raw materials


27,951


27,942


29,393

Products in process


4,976


3,064


1,303

Operating supplies and other


26,727


25,720


28,392

Inventories


429,397


429,330


399,754

Other current assets


62,816


64,633


75,495

Total current assets


1,083,851


1,079,145


1,011,199

Investments and long-term receivables


50,952


44,615


35,056

Property, plant & equipment







Property, plant & equipment, cost


8,559,549


8,457,619


8,116,439

Allowances for depreciation, depletion & amortization


(4,284,211)


(4,220,312)


(4,090,574)

Property, plant & equipment, net


4,275,338


4,237,307


4,025,865

Operating lease right-of-use assets, net


426,381


0


0

Goodwill


3,161,842


3,165,396


3,130,161

Other intangible assets, net


1,085,398


1,095,378


1,060,831

Other noncurrent assets


213,090


210,289


190,099

Total assets


$10,296,852


$9,832,130


$9,453,211

Liabilities







Current maturities of long-term debt


24


23


22

Short-term debt


178,500


133,000


200,000

Trade payables and accruals


248,119


216,473


188,163

Other current liabilities


232,964


253,054


195,122

Total current liabilities


659,607


602,550


583,307

Long-term debt


2,780,589


2,779,357


2,775,687

Deferred income taxes, net


568,229


567,283


479,430

Deferred revenue


184,744


186,397


190,731

Operating lease liabilities


403,426


0


0

Other noncurrent liabilities


483,048


493,640


510,846

Total liabilities


$5,079,643


$4,629,227


$4,540,001

Equity







Common stock, $1 par value


132,069


131,762


132,290

Capital in excess of par value


2,789,864


2,798,486


2,787,848

Retained earnings


2,467,201


2,444,870


2,138,885

Accumulated other comprehensive loss


(171,925)


(172,215)


(145,813)

Total equity


$5,217,209


$5,202,903


$4,913,210

Total liabilities and equity


$10,296,852


$9,832,130


$9,453,211










 

 

 








Table C

Vulcan Materials Company





and Subsidiary Companies










(in thousands)






Three Months Ended

Consolidated Statements of Cash Flows




March 31

(Condensed and unaudited)


2019


2018

Operating Activities





Net earnings




$63,299


$52,979

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




Depreciation, depletion, accretion and amortization


89,181


81,439

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


(7,297)


(4,164)

Contributions to pension plans


(2,320)


(102,443)

Share-based compensation expense


5,724


6,794

Deferred tax expense (benefit)


774


7,968

Cost of debt purchase


0


6,922

Changes in assets and liabilities before initial





effects of business acquisitions and dispositions


(45,765)


39,832

Other, net





12,568


3,641

Net cash provided by operating activities


$116,164


$92,968

Investing Activities





Purchases of property, plant & equipment


(122,019)


(128,688)

Proceeds from sale of property, plant & equipment


6,512


1,701

Proceeds from sale of businesses


1,744


11,256

Payment for businesses acquired, net of acquired cash


1,122


(76,259)

Other, net





(7,237)


(34)

Net cash used for investing activities


($119,878)


($192,024)

Financing Activities





Proceeds from short-term debt


196,200


252,000

Payment of short-term debt


(150,700)


(52,000)

Payment of current maturities and long-term debt


(6)


(892,038)

Proceeds from issuance of long-term debt


0


850,000

Debt issuance and exchange costs


0


(45,513)

Settlements of interest rate derivatives


0


3,378

Purchases of common stock


0


(55,568)

Dividends paid




(40,939)


(37,176)

Share-based compensation, shares withheld for taxes


(14,137)


(24,159)

Net cash used for financing activities


($9,582)


($1,076)

Net decrease in cash and cash equivalents and restricted cash


(13,296)


(100,132)

Cash and cash equivalents and restricted cash at beginning of year


44,404


146,646

Cash and cash equivalents and restricted cash at end of period


$31,108


$46,514









 

 

 




Table D

Segment Financial Data and Unit Shipments









(in thousands, except per unit data)






Three Months Ended






March 31






2019


2018

Total Revenues





Aggregates 1


$834,965


$699,657

Asphalt 2


132,090


103,835

Concrete 


83,637


100,962

Calcium 


1,951


1,942

Segment sales


$1,052,643


$906,396

Aggregates intersegment sales


(56,132)


(51,922)

Total revenues


$996,511


$854,474

Gross Profit





Aggregates


$185,716


$148,221

Asphalt



(3,272)


246

Concrete 


8,563


10,320

Calcium 





668


547

Total




$191,675


$159,334

Depreciation, Depletion, Accretion and Amortization




Aggregates


$72,521


$65,953

Asphalt



8,550


7,002

Concrete 


2,964


3,414

Calcium 


60


69

Other




5,086


5,001

Total




$89,181


$81,439

Average Unit Sales Price and Unit Shipments




Aggregates





Freight-adjusted revenues 3


$628,607


$529,414

Aggregates - tons


45,637


40,532

Freight-adjusted sales price 4


$13.77


$13.06









Other Products





Asphalt Mix - tons


2,022


1,820

Asphalt Mix - sales price


$55.91


$53.18









Ready-mixed concrete - cubic yards

670


816

Ready-mixed concrete - sales price


$123.94


$122.47









Calcium - tons


68


67

Calcium - sales price


$28.32


$28.96









1Includes product sales (crushed stone, sand and gravel, sand, 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 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










2019


2018

Aggregates segment









Segment sales






$834,965


$699,657

Less:

Freight & delivery revenues 1




195,153


158,944


Other revenues







11,205


11,299

Freight-adjusted revenues






$628,607


$529,414

Unit shipment - tons






45,637


40,532

Freight-adjusted sales price






$13.77


$13.06













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 (we do not generate a profit associated with the transportation component of the selling price of the product). Reconciliations of these metrics to their nearest GAAP measures are presented below:


Aggregates Segment Incremental Gross Profit Margin in Accordance with GAAP














(dollars in thousands)










Three Months Ended










March 31










2019


2018

Aggregates segment









Gross profit






$185,716


$148,221

Segment sales






$834,965


$699,657

Gross profit margin






22.2%


21.2%

Incremental gross profit margin






27.7%















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













(dollars in thousands)










Three Months Ended












March 31










2019


2018

Aggregates segment









Gross profit






$185,716


$148,221

Segment sales






$834,965


$699,657

Less:

Freight & delivery revenues 1





195,153


158,944

     Segment sales excluding freight & delivery





$639,812


$540,713

Gross profit flow-through rate






29.0%


27.4%

Incremental gross profit flow-through rate






37.8%















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










2019


2018

Aggregates segment









Gross profit






$185,716


$148,221

Depreciation, depletion, accretion and amortization





72,521


65,953

     Aggregates segment cash gross profit





$258,237


$214,174

Unit shipments - tons






45,637


40,532

Aggregates segment cash gross profit per ton






$5.66


$5.28

 

 

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






2019


2018


2019


2018

Net earnings


$63,299


$52,979


$526,125


$609,243

Income tax expense (benefit)


10,693


(4,903)


121,045


(233,803)

Interest expense, net


32,934


37,774


132,583


294,783

(Earnings) loss on discontinued operations, net of tax


636


416


2,256


(5,980)

EBIT




$107,562


$86,266


$782,009


$664,243

Depreciation, depletion, accretion and amortization


89,181


81,439


353,988


315,841

EBITDA



$196,743


$167,705


$1,135,997


$980,084


Gain on sale of businesses


(4,064)


(2,929)


(4,064)


(13,437)


Property donation


0


0


0


4,290


Business interruption claims recovery


0


(1,694)


(559)


(1,694)


Charges associated with divested operations


0


0


18,545


16,683


Business development 1


0


516


4,686


3,580


One-time employee bonuses


0


0


0


6,716


Restructuring charges


0


4,245


1,974


4,245

Adjusted EBITDA


$192,679


$167,843


$1,156,579


$1,000,467


Depreciation, depletion, accretion and amortization


(89,181)


(81,439)


(353,988)


(315,841)

Adjusted EBIT


$103,498


$86,404


$802,591


$684,626

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













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






2019


2018


2019


2018

Diluted EPS from continuing operations


$0.48


$0.40


$3.95


$4.48


Items included in Adjusted EBITDA above


(0.02)


0.00


0.11


0.09


Interest charges associated with debt purchase


0.00


0.00


0.00


0.02


Debt refinancing costs


0.00


0.04


0.00


0.75


Tax reform income tax savings


0.00


0.00


0.01


(1.99)


Alabama NOL carryforward valuation allowance


0.00


0.00


0.00


(0.21)

Adjusted Diluted EPS


$0.46


$0.44


$4.07


$3.14


The following reconciliation to the mid-point of the range of 2019 Projected EBITDA excludes adjustments (as noted in Adjusted EBITDA above) as they are difficult to forecast (timing or amount). Due to the difficulty in forecasting such adjustments, we are unable to estimate their significance. This metric is not defined by GAAP and should not be considered as an alternative to earnings measures defined by GAAP.  Reconciliation of this metric to its nearest GAAP measure is presented below:








2019 Projected EBITDA
















(in millions)











Mid-point


Net earnings






$640


Income tax expense






160


Interest expense, net






130


Discontinued operations, net of tax






0


Depreciation, depletion, accretion and amortization






360


Projected EBITDA






$1,290



 

Vulcan Materials Company, Birmingham, AL. (PRNewsFoto/Vulcan Materials Company) (PRNewsFoto/) (PRNewsFoto/)

 

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SOURCE Vulcan Materials Company

Contact

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

Tel: (205) 298-3000