Martin Marietta Materials, Inc. (NYSE: MLM) (“Martin Marietta” or
the “Company”), a leading national supplier of aggregates and heavy
building materials, today reported results for the third quarter
ended September 30, 2023.
Third-Quarter Highlights
(Financial highlights are for continuing operations)
|
Quarter Ended
September 30, |
(In millions, except per share) |
2023 |
|
|
2022 |
|
|
% Change |
Total revenues 1 |
$ |
1,994.1 |
|
|
$ |
1,811.7 |
|
|
10.1 |
% |
Gross
profit |
$ |
676.0 |
|
|
$ |
487.8 |
|
|
38.6 |
% |
Earnings
from operations |
$ |
566.6 |
|
|
$ |
405.9 |
|
|
39.6 |
% |
Net earnings
from continuing operations attributable to Martin Marietta |
$ |
430.3 |
|
|
$ |
291.2 |
|
|
47.8 |
% |
Adjusted
EBITDA 2 |
$ |
705.2 |
|
|
$ |
533.1 |
|
|
32.3 |
% |
Earnings per
diluted share from continuing operations |
$ |
6.94 |
|
|
$ |
4.67 |
|
|
48.6 |
% |
1 |
Total revenues include the sales of products and services to
customers (net of any discounts or allowances) and freight
revenues. |
2 |
Earnings from continuing
operations before interest, income taxes, depreciation, depletion
and amortization expense, the earnings/loss from nonconsolidated
equity affiliates, and acquisition and integration expenses, or
Adjusted EBITDA, is a non-GAAP financial measure. See Appendix to
this earnings release for a reconciliation to net earnings from
continuing operations attributable to Martin Marietta. |
Ward Nye, Chairman and CEO of Martin Marietta,
stated, “We are pleased to again report record quarterly results
for nearly every financial and operational measure, including
continued world-class safety incidence rates. These extraordinary
results demonstrate the earnings power of our business, driven by
our team’s disciplined execution of our proven value-over-volume
commercial strategy. Our commitment to safety, enterprise
excellence and the steady advancement of our strategic plan
underpins our track record of success and our confidence to
continue delivering attractive growth.
"Consistent with our aggregates-led product
focus, on October 31, 2023, we closed the sale of our Tehachapi,
California cement plant for $315 million, which largely concludes
planned asset sales from the 2021 Lehigh Hanson West acquisition.
This divestiture not only improves our product mix, but also
provides additional balance sheet flexibility to redeploy the
proceeds into pure-play aggregates acquisitions.
“The results for the quarter and through nine
months underscore our confidence that Martin Marietta will continue
to outperform in the near-, medium- and long-term as we benefit
from our business-mix portfolio and carefully curated
coast-to-coast footprint. Specifically, we see increased investment
in large infrastructure and manufacturing projects across the
United States. These positive trends provide an attractive
counter-balance to the slowing in warehouses, private light
nonresidential and residential construction, which have been
impacted by tightening credit conditions. Notably however, the
single-family residential sector, remains fundamentally underbuilt,
particularly in key Martin Marietta Sun Belt markets. As such, we
fully expect demand in these end markets to accelerate when
inflation moderates and restrictive monetary policy eases.”
Mr. Nye concluded, “Our outstanding year-to-date
results, despite reduced product shipments, underscore the
durability of our business, the vitality of our chosen geographies,
the efficacy of our value-over-volume market approach, as well as
our ability to adapt to the challenges inherent in the current
volatile macroeconomic and geopolitical environment. With robust,
multi-year demand from infrastructure and U.S.-based manufacturing,
coupled with an attractive commercial environment, Martin Marietta
is well-positioned to deliver compelling results and superior
shareholder value for the foreseeable future."
Third-Quarter Financial and Operating
Results
(All financial and operating results are for
continuing operations and comparisons are versus the prior-year
third quarter, unless otherwise noted)
Building Materials Business
The Building Materials business generated record
revenues of $1.9 billion, a 10.5 percent increase. Gross profit
increased 38.4 percent to a record of $649.5 million.
Aggregates
Third-quarter aggregates shipments decreased 7.3
percent, as softer demand in certain Midwest and Southwest markets
was partially offset by continued strength in key Southeast
markets. Pricing increased 20.0 percent, or 17.2 percent on a
mix-adjusted basis, due to the cumulative effect of January 1, 2023
and mid-year 2023 pricing actions.
Aggregates gross profit increased 32.1 percent
to a record of $440.6 million as pricing growth more than offset
lower shipments and higher costs, underscoring the benefits of the
Company's value-over volume commercial philosophy.
Cement
Cement shipments of 1.1 million tons were
relatively flat while pricing increased 18.9 percent, or 18.6
percent on a mix-adjusted basis, as largely sold-out conditions
continue to drive robust pricing momentum.
Cement gross profit increased 61.5 percent to a
record $108.7 million.
Downstream businesses
Ready mixed concrete revenues increased 25.3
percent to $285.2 million while gross profit increased 81.8 percent
to $34.1 million.
Asphalt and paving revenues increased 14.6
percent to a record of $359.9 million. Likewise, gross profit
increased 33.0 percent to a record of $66.1 million, as lower
natural gas and liquid asphalt, or bitumen, costs augmented pricing
growth.
Magnesia Specialties Business
Magnesia Specialties revenues of $75.5 million
were flat as softer demand for chemical products was offset by
strong pricing improvement in both chemicals and lime product
lines. Gross profit increased 3.6 percent to $21.4 million, as
energy cost moderation and higher pricing more than offset lower
operating leverage.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities for the
nine months ended September 30, 2023 was $972.5 million
compared with $560.7 million for the prior-year period, reflecting
the growth in net earnings.
Cash paid for property, plant and equipment
additions for the nine months ended September 30, 2023 was
$464.1 million.
During the nine months ended September 30,
2023, the Company returned $278.2 million to shareholders through
dividend payments and share repurchases. As of September 30,
2023, 12.7 million shares remained under the current repurchase
authorization.
The Company had $647.6 million of unrestricted
cash and cash equivalents on hand and $1.20 billion of unused
borrowing capacity on its existing credit facilities as of
September 30, 2023.
Revised Full-Year 2023
Guidance
The Company’s 2023 guidance excludes businesses
classified as discontinued operations.
2023 GUIDANCE |
|
(Dollars in Millions) |
Low * |
|
|
High * |
|
Consolidated |
|
|
|
|
|
Total revenues1 |
$ |
6,735 |
|
|
$ |
6,855 |
|
Interest
expense |
$ |
165 |
|
|
$ |
170 |
|
Estimated
tax rate (excluding discrete events) |
|
21 |
% |
|
|
22 |
% |
Net earnings
from continuing operations attributable to Martin Marietta |
$ |
1,095 |
|
|
$ |
1,195 |
|
Adjusted
EBITDA2 |
$ |
2,050 |
|
|
$ |
2,150 |
|
Capital expenditures |
$ |
575 |
|
|
$ |
625 |
|
|
|
|
|
|
|
Building
Materials Business |
|
|
|
|
|
Aggregates |
|
|
|
|
|
Volume % change3 |
|
(5.0 |
)% |
|
|
(4.0 |
)% |
ASP % change4 |
|
18.0 |
% |
|
|
20.0 |
% |
Gross profit |
$ |
1,350 |
|
|
$ |
1,410 |
|
|
|
|
|
|
|
Cement,
Ready Mixed Concrete and Asphalt and Paving |
|
|
|
|
|
Gross profit |
$ |
513 |
|
|
$ |
533 |
|
|
|
|
|
|
|
Magnesia
Specialties Business |
|
|
|
|
|
Gross profit |
$ |
90 |
|
|
$ |
100 |
|
* Guidance range
represents the low end and high end of the respective line items
provided above. |
1 |
Total revenues include the sales of products and services to
customers (net of any discounts or allowances) and freight
revenues. |
2 |
Adjusted EBITDA is a non-GAAP
financial measure. See Appendix to this earnings release for a
reconciliation to net earnings from continuing operations
attributable to Martin Marietta. |
3 |
Volume change is for aggregates
shipments, inclusive of internal tons, and is in comparison to 2022
shipments of 207.7 million tons. |
4 |
ASP change is for aggregates
average selling price and is in comparison to 2022 ASP of $16.68
per ton. |
Preliminary View of 2024
Aggregates shipments are expected to be
relatively flat, as strong demand from public infrastructure and
heavy nonresidential projects of scale will partially offset an
anticipated softening in the interest-rate sensitive, private light
nonresidential and residential sectors. The Company anticipates low
double-digit aggregates pricing growth as carryover effects from
2023 together with January 1, 2024 price increases will offset
continued inflationary pressure from the recent acceleration in
energy-related costs. Notably, the incremental benefits of any 2024
mid-year pricing actions are not included in this preliminary
view.
Non-GAAP Financial
Information
This earnings release contains financial
measures that have not been prepared in accordance with generally
accepted accounting principles in the United States (GAAP).
Reconciliations of non-GAAP financial measures to the closest GAAP
measures are included in the Appendix to this earnings release.
Management believes these non-GAAP measures are commonly used
financial measures for investors to evaluate the Company’s
operating performance and, when read in conjunction with the
Company’s consolidated financial statements, present a useful tool
to evaluate the Company’s ongoing business, performance from period
to period and anticipated performance. In addition, these are some
of the factors the Company uses in internal evaluations of the
overall performance of its businesses. Management acknowledges that
there are many items that impact reported results and the
adjustments reflected in these non-GAAP measures are not intended
to present all items that may have impacted these results. In
addition, these non-GAAP measures are not necessarily comparable to
similarly titled measures used by other companies.
Conference Call Information
The Company will discuss its third-quarter 2023
earnings results on a conference call and an online webcast today
(November 1, 2023). The live broadcast of the Martin Marietta
conference call will begin at 10:00 a.m. Eastern Time and can be
accessed by phoning +1 (206) 962-3782 and using conference ID
87720189. Please phone in at least 15 minutes in advance to ensure
a timely connection to the call. An online replay will be available
approximately two hours following the conclusion of the live
broadcast. A link to these events will be available at the
Company’s website. Additionally, the Company has posted Q3 2023
Supplemental Information on the Investors section
of its website.
About Martin Marietta
Martin Marietta, a member of the S&P 500
Index, is an American-based company and a leading supplier of
building materials, including aggregates, cement, ready mixed
concrete and asphalt. Through a network of operations spanning 28
states, Canada and The Bahamas, dedicated Martin Marietta teams
supply the resources necessary for building the solid foundations
on which our communities thrive. Martin Marietta’s Magnesia
Specialties business provides a full range of magnesium oxide,
magnesium hydroxide and dolomitic lime products. For more
information, visit www.martinmarietta.com or
www.magnesiaspecialties.com.
Investor Contacts:
Jacklyn Rooker Director,
Investor Relations +1 (919) 510-4736
Jacklyn.Rooker@martinmarietta.com
MLM-E.
If you are interested in Martin Marietta stock,
management recommends that, at a minimum, you read the Company’s
current annual report and Forms 10-K, 10-Q and 8-K reports to the
Securities and Exchange Commission (SEC) over the past year. The
Company’s recent proxy statement for the annual meeting of
shareholders also contains important information. These and other
materials that have been filed with the SEC are accessible through
the Company’s website at www.martinmarietta.com and are also
available at the SEC’s website at www.sec.gov. You may also write
or call the Company’s Corporate Secretary, who will provide copies
of such reports.
Investors are cautioned that all statements in
this release that relate to the future involve risks and
uncertainties and are based on assumptions that the Company
believes in good faith are reasonable but which may be materially
different from actual results. These statements, which are
forward-looking statements under the Private Securities Litigation
Reform Act of 1995, provide the investor with the Company’s
expectations or forecasts of future events. You can identify these
statements by the fact that they do not relate only to historical
or current facts. They may use words such as “guidance”,
“anticipate”, “may”, “expect”, “should”, “believe”, “will”, and
other words of similar meaning in connection with future events or
future operating or financial performance. Any or all of the
Company’s forward-looking statements here and in other publications
may turn out to be wrong.
Third-quarter results and trends described in
this release may not necessarily be indicative of the Company’s
future performance. The Company’s outlook is subject to various
risks and uncertainties and is based on assumptions that the
Company believes in good faith are reasonable, but which may be
materially different from actual results. Factors that the Company
currently believes could cause actual results to differ materially
from the forward-looking statements in this release (including the
outlook) include, but are not limited to: the ability of the
Company to face challenges, including shipment declines resulting
from economic events beyond the Company’s control; a widespread
decline in aggregates pricing, including a decline in aggregates
shipment volume negatively affecting aggregates price; the history
of both cement and ready mixed concrete being subject to
significant changes in supply, demand and price fluctuations; the
termination, capping and/or reduction or suspension of the federal
and/or state gasoline tax(es) or other revenue related to public
construction; the level and timing of federal, state or local
transportation or infrastructure or public projects funding and any
issues arising from such federal and state budgets, most
particularly in Texas, Colorado, North Carolina, Minnesota,
California, Georgia, Arizona, Iowa, Florida and Indiana; the United
States Congress’ inability to reach agreement among themselves or
with the Executive Branch on policy issues that impact the federal
budget; the ability of states and/or other entities to finance
approved projects either with tax revenues or alternative financing
structures; levels of construction spending in the markets the
Company serves; a reduction in defense spending and the subsequent
impact on construction activity on or near military bases; a
decline in energy-related construction activity resulting from a
sustained period of low global oil prices or changes in oil
production patterns or capital spending in response to this
decline, particularly in Texas and West Virginia; sustained high
residential mortgage rates and other factors that has resulted in a
slowdown in residential construction in some geographies;
unfavorable weather conditions, particularly Atlantic Ocean,
Pacific Ocean and Gulf of Mexico storm and hurricane activity,
wildfires, the late start to spring or the early onset of winter
and the impact of a drought or excessive rainfall in the markets
served by the Company, any of which can significantly affect
production schedules, volumes, product and/or geographic mix and
profitability; the volatility of fuel costs and energy,
particularly diesel fuel, electricity, natural gas and the impact
on the cost, or the availability generally, of other consumables,
namely steel, explosives, tires and conveyor belts, and with
respect to the Company’s Magnesia Specialties business, natural
gas; continued increases in the cost of other repair and supply
parts; construction labor shortages and/or supply‐chain challenges;
unexpected equipment failures, unscheduled maintenance, industrial
accident or other prolonged and/or significant disruption to
production facilities; the resiliency and potential declines of the
Company’s various construction end-use markets; the potential
negative impacts of new waves of COVID-19 or its variants, or any
other outbreak of disease, epidemic or pandemic, or similar public
health threat, or fear of such event, and its related economic or
societal response, including any impact on the Company's suppliers,
customers or other business partners as well as on its employees;
the performance of the United States economy; increasing
governmental regulation, including environmental laws and climate
change regulations at the federal and state levels; the failure of
relevant government agencies to implement expected regulatory
reductions; transportation availability or a sustained reduction in
capital investment by the railroads, notably the availability of
railcars, locomotive power and the condition of rail infrastructure
to move trains to supply the Company’s Texas, Colorado, Florida,
Carolinas and the Gulf Coast markets, including the movement of
essential dolomitic lime for magnesia chemicals to the Company’s
plant in Manistee, Michigan and its customers; increased
transportation costs, including increases from higher or
fluctuating passed-through energy costs or fuel surcharges, and
other costs to comply with tightening regulations, as well as
higher volumes of rail and water shipments; availability of trucks
and licensed drivers for transport of the Company’s materials;
availability and cost of construction equipment in the United
States; weakening in the steel industry markets served by the
Company’s dolomitic lime products; potential impact on costs,
supply chain, oil and gas prices, or other matters relating to the
war between Russia and Ukraine, the war in Israel and related
conflict in the Middle East and the conflict between China and
Taiwan; trade disputes with one or more nations impacting the U.S.
economy, including the impact of tariffs on the steel industry;
unplanned changes in costs or realignment of customers that
introduce volatility to earnings, including that of the Magnesia
Specialties business that is running at capacity; proper
functioning of information technology and automated operating
systems to manage or support operations; inflation and its effect
on both production and interest costs; the concentration of
customers in construction markets and the increased risk of
potential losses on customer receivables; the impact of the level
of demand in the Company’s end-use markets, production levels and
management of production costs on the operating leverage and
therefore profitability of the Company; the possibility that the
expected synergies from acquisitions will not be realized or will
not be realized within the expected time period, including
achieving anticipated profitability to maintain compliance with the
Company’s leverage ratio debt covenant; changes in tax laws, the
interpretation of such laws and/or administrative practices,
including acquisitions or divestitures, that would increase the
Company’s tax rate; violation of the Company’s debt covenant if
price and/or volumes return to previous levels of instability;
downward pressure on the Company’s common stock price and its
impact on goodwill impairment evaluations; the possibility of a
reduction of the Company’s credit rating to non-investment grade;
and other risk factors listed from time to time found in the
Company’s filings with the SEC.
You should consider these forward-looking
statements in light of risk factors discussed in Martin Marietta’s
Annual Report on Form 10-K for the year ended December 31, 2022,
and other periodic filings made with the SEC. All of the Company’s
forward-looking statements should be considered in light of these
factors. In addition, other risks and uncertainties not presently
known to the Company or that it considers immaterial could affect
the accuracy of its forward-looking statements, or adversely affect
or be material to the Company. The Company assumes no obligation to
update any such forward-looking statements.
MARTIN MARIETTA MATERIALS, INC.
Unaudited Statements of Earnings
|
Three Months
Ended |
|
|
Nine Months
Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(In Millions, Except
Per Share Data) |
|
Total Revenues |
$ |
1,994.1 |
|
|
$ |
1,811.7 |
|
|
$ |
5,169.0 |
|
|
$ |
4,684.2 |
|
Total Cost
of Revenues |
|
1,318.1 |
|
|
|
1,323.9 |
|
|
|
3,629.8 |
|
|
|
3,615.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
676.0 |
|
|
|
487.8 |
|
|
|
1,539.2 |
|
|
|
1,069.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
108.1 |
|
|
|
94.9 |
|
|
|
324.1 |
|
|
|
296.0 |
|
Acquisition
and integration expenses |
|
3.3 |
|
|
|
1.8 |
|
|
|
4.5 |
|
|
|
6.1 |
|
Other
operating income, net |
|
(2.0 |
) |
|
|
(14.8 |
) |
|
|
(15.3 |
) |
|
|
(177.4 |
) |
Earnings from Operations |
|
566.6 |
|
|
|
405.9 |
|
|
|
1,225.9 |
|
|
|
944.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
40.8 |
|
|
|
42.8 |
|
|
|
125.1 |
|
|
|
126.4 |
|
Other
nonoperating income, net |
|
(14.3 |
) |
|
|
(7.3 |
) |
|
|
(49.2 |
) |
|
|
(40.1 |
) |
Earnings from continuing operations before income tax expense |
|
540.1 |
|
|
|
370.4 |
|
|
|
1,150.0 |
|
|
|
858.1 |
|
Income tax
expense |
|
109.9 |
|
|
|
79.2 |
|
|
|
237.4 |
|
|
|
189.4 |
|
Earnings
from continuing operations |
|
430.2 |
|
|
|
291.2 |
|
|
|
912.6 |
|
|
|
668.7 |
|
(Loss)
Earnings from discontinued operations, net of income tax (benefit)
expense |
|
(13.6 |
) |
|
|
4.1 |
|
|
|
(25.8 |
) |
|
|
14.3 |
|
Consolidated
net earnings |
|
416.6 |
|
|
|
295.3 |
|
|
|
886.8 |
|
|
|
683.0 |
|
Less: Net
(loss) earnings attributable to noncontrolling interests |
|
(0.1 |
) |
|
|
— |
|
|
|
0.4 |
|
|
|
(0.2 |
) |
Net Earnings
Attributable to Martin Marietta |
$ |
416.7 |
|
|
$ |
295.3 |
|
|
$ |
886.4 |
|
|
$ |
683.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
(Loss) Attributable to Martin Marietta |
|
|
|
|
|
|
|
|
|
|
|
Per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
Basic from continuing operations |
$ |
6.96 |
|
|
$ |
4.67 |
|
|
$ |
14.73 |
|
|
$ |
10.73 |
|
Basic from discontinued operations |
|
(0.22 |
) |
|
|
0.07 |
|
|
|
(0.42 |
) |
|
|
0.23 |
|
|
$ |
6.74 |
|
|
$ |
4.74 |
|
|
$ |
14.31 |
|
|
$ |
10.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted from continuing operations |
$ |
6.94 |
|
|
$ |
4.67 |
|
|
$ |
14.69 |
|
|
$ |
10.69 |
|
Diluted from discontinued operations |
|
(0.22 |
) |
|
|
0.06 |
|
|
|
(0.42 |
) |
|
|
0.23 |
|
|
$ |
6.72 |
|
|
$ |
4.73 |
|
|
$ |
14.27 |
|
|
$ |
10.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
61.8 |
|
|
|
62.3 |
|
|
|
61.9 |
|
|
|
62.4 |
|
Diluted |
|
62.0 |
|
|
|
62.5 |
|
|
|
62.1 |
|
|
|
62.5 |
|
|
|
MARTIN
MARIETTA MATERIALS, INC. |
|
Unaudited
Operating Segment Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Nine Months
Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(Dollars in
Millions) |
|
Total
revenues: |
|
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
|
East Group |
$ |
814.3 |
|
|
$ |
773.6 |
|
|
$ |
2,079.0 |
|
|
$ |
1,866.9 |
|
West Group |
|
1,104.3 |
|
|
|
962.4 |
|
|
|
2,850.6 |
|
|
|
2,582.9 |
|
Total Building Materials |
|
1,918.6 |
|
|
|
1,736.0 |
|
|
|
4,929.6 |
|
|
|
4,449.8 |
|
Magnesia Specialties |
|
75.5 |
|
|
|
75.7 |
|
|
|
239.4 |
|
|
|
234.4 |
|
Total |
$ |
1,994.1 |
|
|
$ |
1,811.7 |
|
|
$ |
5,169.0 |
|
|
$ |
4,684.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(Loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
|
East Group |
$ |
295.2 |
|
|
$ |
239.4 |
|
|
$ |
631.6 |
|
|
$ |
478.0 |
|
West Group |
|
283.0 |
|
|
|
159.7 |
|
|
|
617.3 |
|
|
|
477.2 |
|
Total Building Materials |
|
578.2 |
|
|
|
399.1 |
|
|
|
1,248.9 |
|
|
|
955.2 |
|
Magnesia Specialties |
|
16.9 |
|
|
|
16.5 |
|
|
|
60.8 |
|
|
|
58.4 |
|
Total reportable segments |
|
595.1 |
|
|
|
415.6 |
|
|
|
1,309.7 |
|
|
|
1,013.6 |
|
Corporate |
|
(28.5 |
) |
|
|
(9.7 |
) |
|
|
(83.8 |
) |
|
|
(69.2 |
) |
Total earnings from operations |
$ |
566.6 |
|
|
$ |
405.9 |
|
|
$ |
1,225.9 |
|
|
$ |
944.4 |
|
Interest Expense |
|
40.8 |
|
|
|
42.8 |
|
|
|
125.1 |
|
|
|
126.4 |
|
Other nonoperating income, net |
|
(14.3 |
) |
|
|
(7.3 |
) |
|
|
(49.2 |
) |
|
|
(40.1 |
) |
Total earnings from continuing operations before income tax
expense |
$ |
540.1 |
|
|
$ |
370.4 |
|
|
$ |
1,150.0 |
|
|
$ |
858.1 |
|
|
MARTIN
MARIETTA MATERIALS, INC. |
Unaudited
Product Line Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
September 30, |
|
September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Amount |
|
|
% ofRevenues |
|
Amount |
|
|
% ofRevenues |
|
Amount |
|
|
% ofRevenues |
|
Amount |
|
|
% ofRevenues |
|
(Dollars in
Millions) |
Total
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
$ |
1,216.3 |
|
|
|
|
$ |
1,130.7 |
|
|
|
|
$ |
3,279.6 |
|
|
|
|
$ |
2,945.0 |
|
|
|
Cement |
|
199.1 |
|
|
|
|
|
168.2 |
|
|
|
|
|
565.3 |
|
|
|
|
|
469.0 |
|
|
|
Ready mixed concrete |
|
285.2 |
|
|
|
|
|
227.7 |
|
|
|
|
|
776.5 |
|
|
|
|
|
745.4 |
|
|
|
Asphalt and paving |
|
359.9 |
|
|
|
|
|
314.0 |
|
|
|
|
|
658.7 |
|
|
|
|
|
586.4 |
|
|
|
Less: Interproduct sales |
|
(141.9 |
) |
|
|
|
|
(104.6 |
) |
|
|
|
|
(350.5 |
) |
|
|
|
|
(296.0 |
) |
|
|
Total Building Materials |
|
1,918.6 |
|
|
|
|
|
1,736.0 |
|
|
|
|
|
4,929.6 |
|
|
|
|
|
4,449.8 |
|
|
|
Magnesia Specialties |
|
75.5 |
|
|
|
|
|
75.7 |
|
|
|
|
|
239.4 |
|
|
|
|
|
234.4 |
|
|
|
Consolidated
total revenues |
$ |
1,994.1 |
|
|
|
|
$ |
1,811.7 |
|
|
|
|
$ |
5,169.0 |
|
|
|
|
$ |
4,684.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
$ |
440.6 |
|
|
36.2 |
% |
|
$ |
333.6 |
|
|
29.5 |
% |
|
$ |
1,049.5 |
|
|
32.0 |
% |
|
$ |
743.6 |
|
|
25.3 |
% |
Cement |
|
108.7 |
|
|
54.6 |
% |
|
|
67.3 |
|
|
40.0 |
% |
|
|
249.0 |
|
|
44.1 |
% |
|
|
144.8 |
|
|
30.9 |
% |
Ready mixed concrete |
|
34.1 |
|
|
11.9 |
% |
|
|
18.7 |
|
|
8.2 |
% |
|
|
80.7 |
|
|
10.4 |
% |
|
|
55.3 |
|
|
7.4 |
% |
Asphalt and paving |
|
66.1 |
|
|
18.4 |
% |
|
|
49.7 |
|
|
15.8 |
% |
|
|
82.1 |
|
|
12.5 |
% |
|
|
63.0 |
|
|
10.7 |
% |
Total Building Materials |
|
649.5 |
|
|
33.8 |
% |
|
|
469.3 |
|
|
27.0 |
% |
|
|
1,461.3 |
|
|
29.6 |
% |
|
|
1,006.7 |
|
|
22.6 |
% |
Magnesia Specialties |
|
21.4 |
|
|
28.3 |
% |
|
|
20.6 |
|
|
27.2 |
% |
|
|
74.1 |
|
|
30.9 |
% |
|
|
70.9 |
|
|
30.2 |
% |
Corporate |
|
5.1 |
|
|
NM |
|
|
(2.1 |
) |
|
NM |
|
|
3.8 |
|
|
NM |
|
|
(8.5 |
) |
|
NM |
Consolidated
gross profit |
$ |
676.0 |
|
|
33.9 |
% |
|
$ |
487.8 |
|
|
26.9 |
% |
|
$ |
1,539.2 |
|
|
29.8 |
% |
|
$ |
1,069.1 |
|
|
22.8 |
% |
|
MARTIN
MARIETTA MATERIALS, INC. |
Balance
Sheet Data |
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
2023 |
|
|
2022 |
|
Unaudited |
|
|
Audited |
|
(In millions) |
ASSETS |
|
|
|
|
Cash and cash equivalents |
$ |
647.6 |
|
|
$ |
358.0 |
Restricted cash |
|
— |
|
|
|
0.8 |
Restricted investments (to satisfy discharged debt and related
interest) |
|
— |
|
|
|
704.6 |
Accounts receivable, net |
|
1,047.5 |
|
|
|
785.9 |
Inventories, net |
|
993.1 |
|
|
|
873.7 |
Current assets held for sale |
|
45.8 |
|
|
|
73.2 |
Other current assets |
|
83.4 |
|
|
|
80.7 |
Property, plant and equipment, net |
|
6,352.7 |
|
|
|
6,316.7 |
Intangible assets, net |
|
4,476.3 |
|
|
|
4,497.3 |
Operating lease right-of-use assets, net |
|
374.9 |
|
|
|
383.5 |
Noncurrent assets held for sale |
|
307.3 |
|
|
|
372.5 |
Other noncurrent assets |
|
589.2 |
|
|
|
546.7 |
Total assets |
$ |
14,917.8 |
|
|
$ |
14,993.6 |
|
|
|
|
|
LIABILITIES
AND EQUITY |
|
|
|
|
Current maturities of long-term debt, including discharged
debt |
$ |
399.5 |
|
|
$ |
699.1 |
Current liabilities held for sale |
|
1.3 |
|
|
|
4.5 |
Other current liabilities |
|
740.3 |
|
|
|
742.0 |
Long-term debt (excluding current maturities) |
|
3,944.7 |
|
|
|
4,340.9 |
Noncurrent liabilities held for sale |
|
20.1 |
|
|
|
21.8 |
Other noncurrent liabilities |
|
2,007.1 |
|
|
|
2,012.5 |
Total equity |
|
7,804.8 |
|
|
|
7,172.8 |
Total liabilities and equity |
$ |
14,917.8 |
|
|
$ |
14,993.6 |
|
MARTIN
MARIETTA MATERIALS, INC. |
Unaudited
Statements of Cash Flows |
|
|
Nine Months
Ended |
|
|
September 30, |
|
|
2023 |
|
|
2022 |
|
|
(Dollars in
Millions) |
|
Cash Flows
from Operating Activities: |
|
|
|
|
|
Consolidated net earnings |
$ |
886.8 |
|
|
$ |
683.0 |
|
Adjustments
to reconcile consolidated net earnings to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation, depletion and amortization |
|
384.6 |
|
|
|
380.3 |
|
Stock-based compensation expense |
|
39.0 |
|
|
|
34.3 |
|
Loss (Gain) on divestitures, sales of assets and extinguishment of
debt |
|
4.7 |
|
|
|
(190.7 |
) |
Deferred income taxes, net |
|
(1.9 |
) |
|
|
(1.0 |
) |
Other items, net |
|
(8.4 |
) |
|
|
(1.0 |
) |
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
Accounts receivable, net |
|
(264.4 |
) |
|
|
(237.9 |
) |
Inventories, net |
|
(130.3 |
) |
|
|
(87.0 |
) |
Accounts payable |
|
45.1 |
|
|
|
18.1 |
|
Other assets and liabilities, net |
|
17.3 |
|
|
|
(37.4 |
) |
Net Cash
Provided by Operating Activities |
|
972.5 |
|
|
|
560.7 |
|
|
|
|
|
|
|
Cash Flows
from Investing Activities: |
|
|
|
|
|
Additions to property, plant and equipment |
|
(464.1 |
) |
|
|
(309.1 |
) |
Acquisitions, net of cash acquired |
|
— |
|
|
|
11.0 |
|
Proceeds from divestitures and sales of assets |
|
98.3 |
|
|
|
679.1 |
|
Proceeds from sale of restricted investments related to discharge
of long-term debt |
|
700.0 |
|
|
|
— |
|
Purchase of restricted investments to discharge long-term debt |
|
— |
|
|
|
(704.6 |
) |
Investments in life insurance contracts, net |
|
6.8 |
|
|
|
2.2 |
|
Other investing activities, net |
|
(14.7 |
) |
|
|
(3.0 |
) |
Net Cash
Provided by (Used for) Investing Activities |
|
326.3 |
|
|
|
(324.4 |
) |
|
|
|
|
|
|
Cash Flows
from Financing Activities: |
|
|
|
|
|
Repayments of debt |
|
(700.0 |
) |
|
|
(54.5 |
) |
Payments on finance lease obligations |
|
(13.1 |
) |
|
|
(11.1 |
) |
Debt issuance and extinguishment costs |
|
(0.2 |
) |
|
|
(0.3 |
) |
Dividends paid |
|
(128.2 |
) |
|
|
(118.1 |
) |
Repurchases of common stock |
|
(150.0 |
) |
|
|
(150.0 |
) |
Distributions to owners of noncontrolling interest |
|
(0.5 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
0.8 |
|
|
|
0.6 |
|
Shares withheld for employees’ income tax obligations |
|
(18.8 |
) |
|
|
(26.1 |
) |
Net Cash
Used for Financing Activities |
|
(1,010.0 |
) |
|
|
(359.5 |
) |
Net Increase
(Decrease) in Cash, Cash Equivalents and Restricted Cash |
|
288.8 |
|
|
|
(123.2 |
) |
Cash, Cash
Equivalents and Restricted Cash, beginning of period |
|
358.8 |
|
|
|
258.9 |
|
Cash, Cash
Equivalents and Restricted Cash, end of period |
$ |
647.6 |
|
|
$ |
135.7 |
|
|
MARTIN
MARIETTA MATERIALS, INC. |
Unaudited
Operational Highlights |
|
|
Three Months
Ended |
|
|
Nine Months
Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2023 |
|
|
2022 |
|
% Change |
|
|
2023 |
|
2022 |
|
% Change |
|
Total Shipments (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates tons |
|
55.9 |
|
|
|
60.2 |
|
(7.3 |
)% |
|
|
152.2 |
|
|
160.1 |
|
(5.0 |
)% |
Cement
tons |
|
1.1 |
|
|
|
1.1 |
|
0.2 |
% |
|
|
3.2 |
|
|
3.2 |
|
(2.0 |
)% |
Ready mixed
concrete cubic yards |
|
1.8 |
|
|
|
1.7 |
|
3.6 |
% |
|
|
5.1 |
|
|
5.9 |
|
(14.6 |
)% |
Asphalt
tons |
|
3.9 |
|
|
|
3.7 |
|
5.7 |
% |
|
|
7.0 |
|
|
6.9 |
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit sales price by product line (including
internal sales): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates
(per ton) |
$ |
19.98 |
|
|
$ |
16.65 |
|
20.0 |
% |
|
$ |
19.72 |
|
$ |
16.41 |
|
20.2 |
% |
Cement (per
ton) |
$ |
177.48 |
|
|
$ |
149.24 |
|
18.9 |
% |
|
$ |
172.93 |
|
$ |
139.64 |
|
23.8 |
% |
Ready mixed
concrete (per cubic yard) |
$ |
160.43 |
|
|
$ |
132.64 |
|
20.9 |
% |
|
$ |
152.79 |
|
$ |
125.32 |
|
21.9 |
% |
Asphalt (per
ton) |
$ |
65.58 |
|
|
$ |
61.45 |
|
6.7 |
% |
|
$ |
65.71 |
|
$ |
61.21 |
|
7.4 |
% |
MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures
Earnings from continuing operations before
interest; income taxes; depreciation, depletion and amortization
expense; the earnings/loss from nonconsolidated equity affiliates;
acquisition and integration expenses; and the nonrecurring gain on
divestiture (Adjusted EBITDA) is an indicator used by the Company
and investors to evaluate the Company’s operating performance from
period to period. Adjusted EBITDA is not defined by generally
accepted accounting principles and, as such, should not be
construed as an alternative to earnings from operations, net
earnings attributable to Martin Marietta or operating cash flow.
For further information on Adjusted EBITDA, refer to the Company’s
website at www.martinmarietta.com.
Reconciliation of Net Earnings from
Continuing Operations Attributable to Martin Marietta to Adjusted
EBITDA
|
Three Months
Ended |
|
|
Nine Months
Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(Dollars in
Millions) |
|
Net earnings from continuing operations attributable to Martin
Marietta |
$ |
430.3 |
|
|
$ |
291.2 |
|
|
$ |
912.2 |
|
|
$ |
668.9 |
|
Add back
(Deduct): |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
31.9 |
|
|
|
38.8 |
|
|
|
93.1 |
|
|
|
121.5 |
|
Income tax expense for controlling interests |
|
109.9 |
|
|
|
79.1 |
|
|
|
237.3 |
|
|
|
189.4 |
|
Depreciation, depletion and amortization expense
and earnings/loss from nonconsolidated equity affiliates |
|
129.8 |
|
|
|
122.4 |
|
|
|
378.1 |
|
|
|
374.6 |
|
Acquisition and integration expenses |
|
3.3 |
|
|
|
1.8 |
|
|
|
4.5 |
|
|
|
6.1 |
|
Nonrecurring gain on divestiture |
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
(151.9 |
) |
Adjusted
EBITDA |
$ |
705.2 |
|
|
$ |
533.1 |
|
|
$ |
1,625.2 |
|
|
$ |
1,208.6 |
|
Reconciliation of the GAAP Measure to
2023 Adjusted EBITDA Guidance Range
|
Low Point of Range |
|
High Point of Range |
|
(Dollars in
Millions) |
Net earnings from continuing operations attributable to Martin
Marietta |
$ |
1,095.0 |
|
$ |
1,195.0 |
Add
back: |
|
|
|
Interest
expense, net of interest income |
|
125.0 |
|
|
130.0 |
Income tax
expense for controlling interests |
|
325.0 |
|
|
310.0 |
Depreciation, depletion and amortization expense and
earnings/loss from nonconsolidated equity affiliates |
|
505.0 |
|
|
515.0 |
Adjusted
EBITDA |
$ |
2,050.0 |
|
$ |
2,150.0 |
MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures (Continued)
Mix-adjusted average selling price (mix-adjusted
ASP) is a non-GAAP measure that excludes the impact of
period-over-period product, geographic and other mix on the average
selling price. Mix-adjusted ASP is calculated by comparing
current-period shipments to like-for-like shipments in the
comparable prior period. Management uses this metric to evaluate
the realization of pricing increases and believes this information
is useful to investors. The following reconciles reported average
selling price to mix-adjusted ASP and corresponding variances.
|
Three Months
Ended |
|
Nine Months
Ended |
|
September 30, |
|
September 30, |
|
2023 |
|
|
2022 |
|
2023 |
|
|
2022 |
Aggregates: |
|
|
|
|
|
|
|
|
|
Reported average selling price |
$ |
19.98 |
|
|
$ |
16.65 |
|
$ |
19.72 |
|
|
$ |
16.41 |
Adjustment
for impact of product, geographic and other mix |
|
(0.47 |
) |
|
|
|
|
(0.34 |
) |
|
|
Mix-adjusted
ASP |
$ |
19.51 |
|
|
|
|
$ |
19.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
average selling price variance |
|
20.0 |
% |
|
|
|
|
20.2 |
% |
|
|
Mix-adjusted
ASP variance |
|
17.2 |
% |
|
|
|
|
18.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cement - Continuing Operations: |
|
|
|
|
|
|
|
|
|
Reported
average selling price |
$ |
177.48 |
|
|
$ |
149.24 |
|
$ |
172.93 |
|
|
$ |
139.64 |
Adjustment
for impact of product, geographic and other mix |
|
(0.44 |
) |
|
|
|
|
(0.44 |
) |
|
|
Mix-adjusted
ASP |
$ |
177.04 |
|
|
|
|
$ |
172.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
average selling price variance |
|
18.9 |
% |
|
|
|
|
23.8 |
% |
|
|
Mix-adjusted
ASP variance |
|
18.6 |
% |
|
|
|
|
23.5 |
% |
|
|
Martin Marietta Materials (NYSE:MLM)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Martin Marietta Materials (NYSE:MLM)
Gráfica de Acción Histórica
De May 2023 a May 2024