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 fourth quarter
and year ended December 31, 2020.
Highlights include:
|
Quarter Ended December 31, |
|
|
Year Ended December 31, |
|
($ in millions, except per share) |
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Products and services revenues 1 |
$ |
1,110.9 |
|
|
$ |
1,024.7 |
|
|
$ |
4,432.1 |
|
|
$ |
4,422.3 |
|
Building Materials Business |
$ |
1,054.1 |
|
|
$ |
973.7 |
|
|
$ |
4,211.2 |
|
|
$ |
4,172.4 |
|
Magnesia Specialties Business |
$ |
56.8 |
|
|
$ |
51.0 |
|
|
$ |
220.9 |
|
|
$ |
249.9 |
|
Total revenues 2 |
$ |
1,179.6 |
|
|
$ |
1,100.4 |
|
|
$ |
4,729.9 |
|
|
$ |
4,739.1 |
|
Gross profit |
$ |
325.4 |
|
|
$ |
258.6 |
|
|
$ |
1,252.8 |
|
|
$ |
1,179.0 |
|
Earnings from operations 3 |
$ |
240.6 |
|
|
$ |
184.6 |
|
|
$ |
1,005.4 |
|
|
$ |
884.9 |
|
Net earnings attributable to Martin Marietta 4 |
$ |
183.0 |
|
|
$ |
131.0 |
|
|
$ |
721.0 |
|
|
$ |
611.9 |
|
Adjusted EBITDA 3,5 |
$ |
335.1 |
|
|
$ |
278.8 |
|
|
$ |
1,392.8 |
|
|
$ |
1,254.5 |
|
Earnings per diluted share 4 |
$ |
2.93 |
|
|
$ |
2.09 |
|
|
$ |
11.54 |
|
|
$ |
9.74 |
|
- Products and
services revenues include the sales of aggregates, cement, ready
mixed concrete, asphalt and Magnesia Specialties products, and
paving services to customers, and exclude related freight
revenues.
- Total revenues
include the sales of products and services to customers (net of any
discounts or allowances) and freight revenues.
- Full-year 2020
earnings from operations and Adjusted EBITDA included $69.9 million
of gains on surplus land sales and divested assets. These gains are
nonrecurring in nature.
- Full-year 2020
net earnings attributable to Martin Marietta and earnings per
diluted share included $54.1 million, or $0.87 per diluted share,
of gains on surplus land sales and divested assets. These gains are
nonrecurring in nature.
- Earnings before
interest; income taxes; depreciation, depletion and amortization;
and the earnings/loss from nonconsolidated equity affiliates, or
Adjusted EBITDA, is a non-GAAP financial measure. See Appendix to
this earnings release for a reconciliation to net earnings
attributable to Martin Marietta.
Ward Nye, Chairman and CEO of Martin Marietta,
stated, “In every respect, 2020 was extraordinary for Martin
Marietta as we addressed and overcame challenges that were
inconceivable a year earlier. Our resilient business model and
team’s commitment to Martin Marietta’s vision and strategic
priorities enabled us to achieve record fourth-quarter results and
deliver record full-year profitability and the best safety
performance in our Company’s history.
“We are proud to extend our track record of
financial and operational excellence despite the COVID-19 pandemic.
Notably, 2020 marked our ninth consecutive year of growth for
products and services revenues, gross profit, Adjusted EBITDA and
earnings per diluted share. For the fourth quarter, we established
new records for revenues and Adjusted EBITDA and expanded
consolidated gross margin 410 basis points to 27.6 percent, driven
by shipment growth, pricing gains and disciplined cost management
across the business. These record-setting results underscore the
thoughtful development and successful execution of our Strategic
Operating Analysis and Review (SOAR) plan.
“As we move forward, we believe underlying
demand fundamentals will reset, establishing 2021 as the year
during which the nation regains its economic footing. While degrees
of macroeconomic uncertainty will persist, our 2021 outlook is
supported by the widespread shipment and pricing strength seen
during the fourth quarter. We anticipate single-family housing
growth, expanded infrastructure investment and notable heavy
industrial projects of scale will support the Company’s near-term
shipment levels. We expect these demand drivers, combined with the
ancillary construction necessary for housing community buildouts
and the potential increased infrastructure investment from a
comprehensive federal surface transportation package, should
provide for multi-year growth in product demand.”
Mr. Nye concluded, “With a collective commitment
to our strategies, disciplined pricing and operational excellence,
Martin Marietta has built a strong foundation for continued
success. Today, Martin Marietta is uniquely well-positioned,
geographically, financially and otherwise, to capitalize on the
emerging growth trends that are expected to support steady and
sustainable construction activity over the long term. We remain
confident in our Company’s prospects for continued sustainable
growth and superior shareholder value creation in 2021 and
beyond.”
Fourth-Quarter Operating and Financial
Results
(All comparisons are versus the prior-year
fourth quarter unless noted otherwise)
Building Materials Business
The Building Materials business achieved record
fourth-quarter revenues and gross profit. Products and services
revenues of $1.05 billion increased 8.3 percent and product gross
profit of $298.7 million increased 25.1 percent.
During the quarter, the Building Materials
business experienced notable improvements in product demand, which
benefitted from strong residential construction activity and milder
weather conditions that extended the construction season.
Consistent with management’s expectations, pricing remained
resilient with growth in all product lines.
Aggregates
Fourth-quarter aggregates shipments grew 3.0
percent compared with the prior-year quarter. Aggregates pricing
increased 3.5 percent on both a reported and mix-adjusted
basis.
By segment:
- East Group shipments increased 3.1
percent, reflecting strengthening demand in North Carolina,
Georgia, Florida and Indiana that more than offset reduced
midwestern wind energy construction activity. Pricing increased 6.0
percent, or 3.6 percent on a mix-adjusted basis, with solid
improvements in both the East and Central divisions and aided by
favorable geographic mix.
- West Group shipments increased 2.8
percent, driven by housing activity and large heavy industrial
projects that more than offset reduced energy-sector demand.
Pricing decreased 1.3 percent, reflecting a lower percentage of
higher-priced commercial rail-shipped volumes in Texas that offset
robust underlying pricing gains. On a mix-adjusted basis, West
Group pricing increased 3.2 percent.
Fourth-quarter aggregates gross profit per ton
shipped improved 17.9 percent and product gross margin expanded 370
basis points to 30.7 percent, driven by higher shipment levels,
strong pricing gains and lower production costs, including diesel
fuel and contract services.
Cement
Cement shipments increased 11.7 percent to 1.1
million tons, a fourth-quarter record. This growth reflected robust
underlying demand in North and South Texas that more than offset
reduced energy-sector activity. Pricing improved 0.5 percent, as
lower sales of higher-priced oil-well specialty cement products
into West Texas disproportionately impacted overall pricing growth.
On a mix-adjusted basis, cement pricing increased 3.0 percent. The
cement business achieved record product gross margin of 44.5
percent, an 850-basis-point expansion, driven by improved kiln
reliability from prior-period investments, lower fuel costs and the
timing of planned kiln outages.
Downstream businesses
Ready mixed concrete shipments increased 17.0
percent, or 18.5 percent excluding the impact of acquired
operations and fourth-quarter 2019 shipments from the Arkansas,
Louisiana and Eastern Texas concrete business, generally known as
ArkLaTex, that was divested in January 2020. Shipment improvements
were widespread in both Texas and Colorado. Geographic and product
mix limited pricing growth to 0.3 percent. Product gross margin
improved 140 basis points to 8.7 percent, driven primarily by
higher shipments and reduced fuel costs that more than offset
higher raw material costs.
Colorado asphalt shipments increased 18.8
percent versus a weather-challenged prior-year quarter and pricing
increased 3.5 percent. Asphalt and paving products and services
gross margin improved 30 basis points.
Magnesia Specialties
Business
Magnesia Specialties fourth-quarter product
revenues increased 11.5 percent to $56.8 million, reflecting
improved demand for chemicals and lime products. Higher revenues,
combined with disciplined cost control, resulted in a
430-basis-point expansion in product gross margin to 42.8
percent.
Consolidated
During the fourth quarter of 2020, the Company
incurred $1.1 million in COVID-19-related expenses for enhanced
personal protective equipment, as well as cleaning and sanitizing
protocols across its operations, which were recorded in selling,
general and administrative expenses.
Other nonoperating expenses, net, for
fourth-quarter 2020 included $5.9 million to finance third-party
railroad maintenance in exchange for a federal income tax benefit
of $7.3 million.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities was $1.05
billion, an all-time record, in 2020 compared with $966.1 million
in 2019.
Cash paid for property, plant and equipment
additions was $359.7 million.
Through dividend payments and share repurchases,
the Company returned $190.3 million to shareholders in 2020 and
more than $1.8 billion since announcing a 20 million share
repurchase authorization in February 2015. The Company temporarily
paused share repurchases in March 2020 in light of the COVID-19
pandemic. The potential resumption of repurchase activity remains
subject to management’s discretion.
The Company had $304.4 million of cash, cash
equivalents and restricted cash on hand and nearly $1.1 billion of
unused borrowing capacity on its existing credit facilities as of
December 31, 2020.
Full-Year 2021 Outlook
Martin Marietta remains confident that favorable
pricing dynamics will continue, supported by the Company’s
locally-driven pricing strategy, and attractive underlying
fundamentals and long-term secular growth trends in its key
geographies remain intact, particularly as the U.S. economy
stabilizes and recovers.
Martin Marietta’s 2021 guidance excludes any
benefit from additional fiscal stimulus or relief funds beyond
those already enacted as well as any benefit from a potential
successor federal surface transportation bill.
2021 GUIDANCE |
|
($ in millions, except per ton) |
|
Low * |
|
|
High * |
|
Consolidated |
|
|
|
|
|
|
|
|
Products and services revenues 1 |
|
$ |
4,510 |
|
|
$ |
4,700 |
|
Gross profit |
|
$ |
1,290 |
|
|
$ |
1,380 |
|
Selling, general and administrative expenses (SG&A) |
|
$ |
320 |
|
|
$ |
330 |
|
Interest expense |
|
$ |
110 |
|
|
$ |
115 |
|
Estimated tax rate (excluding discrete events) |
|
|
20 |
% |
|
|
22 |
% |
Net earnings attributable to Martin Marietta |
|
$ |
665 |
|
|
$ |
750 |
|
Adjusted EBITDA 2 |
|
$ |
1,350 |
|
|
$ |
1,450 |
|
Capital expenditures |
|
$ |
425 |
|
|
$ |
475 |
|
|
|
|
|
|
|
|
|
|
Building Materials Business |
|
|
|
|
|
|
|
|
Aggregates |
|
|
|
|
|
|
|
|
Volume % growth 3 |
|
|
1.0 |
% |
|
|
4.0 |
% |
Average selling price per ton (ASP) % growth 4 |
|
|
3.0 |
% |
|
|
5.0 |
% |
Products and services revenues |
|
$ |
2,900 |
|
|
$ |
2,990 |
|
Gross profit |
|
$ |
895 |
|
|
$ |
945 |
|
|
|
|
|
|
|
|
|
|
Cement |
|
|
|
|
|
|
|
|
Products and services revenues |
|
$ |
460 |
|
|
$ |
500 |
|
Gross profit |
|
$ |
175 |
|
|
$ |
185 |
|
|
|
|
|
|
|
|
|
|
Ready Mixed Concrete and Asphalt and Paving |
|
|
|
|
|
|
|
|
Products and services revenues |
|
$ |
1,240 |
|
|
$ |
1,310 |
|
Gross profit |
|
$ |
130 |
|
|
$ |
150 |
|
|
|
|
|
|
|
|
|
|
Magnesia Specialties Business |
|
|
|
|
|
|
|
|
Products and services revenues |
|
$ |
230 |
|
|
$ |
240 |
|
Gross profit |
|
$ |
90 |
|
|
$ |
100 |
|
* Guidance range represents the
low end and high end of the respective line items provided
above.
- Consolidated
products and services revenues exclude $320 million to $340 million
related to estimated interproduct sales and exclude freight
revenues.
- Adjusted EBITDA is
a non-GAAP financial measure. See Appendix to this earnings release
for a reconciliation to net earnings attributable to Martin
Marietta.
- Volume % growth
range is for total aggregates shipments, inclusive of internal
tons, and is in comparison with total 2020 shipments of 186.5
million tons.
- ASP % growth range
is in comparison with 2020 ASP of $14.77 per ton.
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 accompanying 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 operations, 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 a company’s 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 fourth-quarter and
full-year 2020 earnings results on a conference call and an online
web simulcast today (February 9, 2021). The live broadcast of the
Martin Marietta conference call will begin at 11:00 a.m. Eastern
Time. 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. For those
investors without online web access, the conference call may also
be accessed by calling (970) 315-0423, confirmation number 5398051.
Additionally, the Company has posted 2020 Supplemental Information
on the Investor Relations 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 27
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 Contact:
Suzanne Osberg Vice President,
Investor Relations (919)
783-4691Suzanne.Osberg@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, give the investor 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”,
“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 our forward-looking statements
here and in other publications may turn out to be wrong.
Fourth-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 those posed by the COVID-19
pandemic and implementation of any such related response plans; the
recent dramatic increases in COVID-19 cases in the United States
and the extent that geography of outbreak primarily matches the
regions in which the Company’s Building Materials business
principally operates; the resiliency and potential declines of the
Company’s various construction end-use markets; the potential
negative impact of the COVID-19 pandemic on the Company’s ability
to continue supplying heavy-side building materials and related
services at normal levels or at all in the Company’s key regions;
the duration, impact and severity of the impacts of the COVID-19
pandemic on the Company, including the markets in which we do
business, our suppliers, customers or other business partners as
well as on our employees; the economic impact of government
responses to the pandemic; the performance of the United States
economy, including the impact on the economy of the COVID-19
pandemic and governmental orders restricting activities imposed to
prevent further outbreak of COVID-19; 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, most
particularly in Texas, Colorado, North Carolina, Georgia, Florida,
Iowa and Maryland; the impact of governmental orders restricting
activities imposed to prevent further outbreak of COVID-19 on
travel, potentially reducing state fuel tax revenues used to fund
highway projects; the United States Congress’ inability to reach
agreement among themselves or with the Administration 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 the
commercial component of the nonresidential construction market,
notably office and retail space, including a decline resulting from
economic distress related to the COVID-19 pandemic; 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; increasing residential
mortgage rates and other factors that could result in a slowdown in
residential construction; unfavorable weather conditions,
particularly Atlantic Ocean and Gulf of Mexico hurricane activity,
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; whether the Company’s operations will continue to be
treated as “essential” operations under applicable government
orders restricting business activities imposed to prevent further
outbreak of COVID-19 or, even if so treated, whether site-specific
health and safety concerns might otherwise require certain of the
Company’s operations to be halted for some period of time; the
volatility of fuel costs, particularly diesel fuel, 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; increasing governmental regulation,
including environmental laws; 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; 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 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 our Annual Report
on Form 10-K for the year ended December 31, 2019, our Quarterly
Reports on Form 10-Q for the periods ended March 31, 2020, June 30,
2020 and September 30, 2020, and other periodic filings made with
the SEC. All of our forward-looking statements should be considered
in light of these factors. In addition, other risks and
uncertainties not presently known to us or that we consider
immaterial could affect the accuracy of our forward-looking
statements, or adversely affect or be material to the Company. The
Company assumes no obligation to update any such forward-looking
statements.
Appendix
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Statements of Earnings |
|
(In millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Products and services
revenues |
|
$ |
1,110.9 |
|
|
$ |
1,024.7 |
|
|
$ |
4,432.1 |
|
|
$ |
4,422.3 |
|
Freight revenues |
|
|
68.7 |
|
|
|
75.7 |
|
|
|
297.8 |
|
|
|
316.8 |
|
Total Revenues |
|
|
1,179.6 |
|
|
|
1,100.4 |
|
|
|
4,729.9 |
|
|
|
4,739.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues - products
and services |
|
|
784.7 |
|
|
|
764.7 |
|
|
|
3,175.6 |
|
|
|
3,239.1 |
|
Cost of revenues -
freight |
|
|
69.5 |
|
|
|
77.1 |
|
|
|
301.5 |
|
|
|
321.0 |
|
Total cost of revenues |
|
|
854.2 |
|
|
|
841.8 |
|
|
|
3,477.1 |
|
|
|
3,560.1 |
|
Gross Profit |
|
|
325.4 |
|
|
|
258.6 |
|
|
|
1,252.8 |
|
|
|
1,179.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
84.9 |
|
|
|
73.7 |
|
|
|
305.9 |
|
|
|
302.7 |
|
Acquisition-related
expenses |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
1.3 |
|
|
|
0.5 |
|
Other operating income, net
(1) |
|
|
(0.3 |
) |
|
|
— |
|
|
|
(59.8 |
) |
|
|
(9.1 |
) |
Earnings from operations (1) |
|
|
240.6 |
|
|
|
184.6 |
|
|
|
1,005.4 |
|
|
|
884.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
28.4 |
|
|
|
30.7 |
|
|
|
118.1 |
|
|
|
129.3 |
|
Other nonoperating expenses
and (income), net |
|
|
3.9 |
|
|
|
(2.4 |
) |
|
|
(2.0 |
) |
|
|
7.3 |
|
Earnings before income tax expense |
|
|
208.3 |
|
|
|
156.3 |
|
|
|
889.3 |
|
|
|
748.3 |
|
Income tax expense |
|
|
25.3 |
|
|
|
25.2 |
|
|
|
168.2 |
|
|
|
136.3 |
|
Consolidated net earnings |
|
|
183.0 |
|
|
|
131.1 |
|
|
|
721.1 |
|
|
|
612.0 |
|
Less: Net earnings
attributable to noncontrolling interests |
|
|
— |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.1 |
|
Net Earnings Attributable to
Martin Marietta (2) |
|
$ |
183.0 |
|
|
$ |
131.0 |
|
|
$ |
721.0 |
|
|
$ |
611.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share
attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (3) |
|
$ |
2.94 |
|
|
$ |
2.10 |
|
|
$ |
11.56 |
|
|
$ |
9.77 |
|
Diluted (3) |
|
$ |
2.93 |
|
|
$ |
2.09 |
|
|
$ |
11.54 |
|
|
$ |
9.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share |
|
$ |
0.57 |
|
|
$ |
0.55 |
|
|
$ |
2.24 |
|
|
$ |
2.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
62.3 |
|
|
|
62.5 |
|
|
|
62.3 |
|
|
|
62.5 |
|
Diluted |
|
|
62.5 |
|
|
|
62.7 |
|
|
|
62.4 |
|
|
|
62.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Full-year
2020 amount included $69.9 million of gains on surplus land sales
and divested assets. These gains are nonrecurring in nature. |
|
(2) Full-year
2020 amount included $54.1 million of gains on surplus land sales
and divested assets. These gains are nonrecurring in nature. |
|
(3) Full-year
2020 amounts included $0.87 per share of gains on surplus land
sales and divested assets. These gains are nonrecurring in
nature. |
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group (1) |
|
$ |
483.3 |
|
|
$ |
448.1 |
|
|
$ |
1,949.1 |
|
|
$ |
1,949.0 |
|
West Group (1) |
|
|
633.9 |
|
|
|
596.2 |
|
|
|
2,538.1 |
|
|
|
2,518.8 |
|
Total Building Materials Business |
|
|
1,117.2 |
|
|
|
1,044.3 |
|
|
|
4,487.2 |
|
|
|
4,467.8 |
|
Magnesia Specialties |
|
|
62.4 |
|
|
|
56.1 |
|
|
|
242.7 |
|
|
|
271.3 |
|
Total |
|
$ |
1,179.6 |
|
|
$ |
1,100.4 |
|
|
$ |
4,729.9 |
|
|
$ |
4,739.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group (1) |
|
$ |
159.9 |
|
|
$ |
130.4 |
|
|
$ |
619.4 |
|
|
$ |
605.7 |
|
West Group (1) |
|
|
138.9 |
|
|
|
107.8 |
|
|
|
540.4 |
|
|
|
474.9 |
|
Total Building Materials Business |
|
|
298.8 |
|
|
|
238.2 |
|
|
|
1,159.8 |
|
|
|
1,080.6 |
|
Magnesia Specialties |
|
|
23.4 |
|
|
|
18.8 |
|
|
|
85.5 |
|
|
|
95.4 |
|
Corporate |
|
|
3.2 |
|
|
|
1.6 |
|
|
|
7.5 |
|
|
|
3.0 |
|
Total |
|
$ |
325.4 |
|
|
$ |
258.6 |
|
|
$ |
1,252.8 |
|
|
$ |
1,179.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group (1) |
|
$ |
25.2 |
|
|
$ |
21.5 |
|
|
$ |
99.2 |
|
|
$ |
84.7 |
|
West Group (1) |
|
|
35.5 |
|
|
|
30.0 |
|
|
|
135.7 |
|
|
|
116.3 |
|
Total Building Materials Business |
|
|
60.7 |
|
|
|
51.5 |
|
|
|
234.9 |
|
|
|
201.0 |
|
Magnesia Specialties |
|
|
3.7 |
|
|
|
2.8 |
|
|
|
14.1 |
|
|
|
11.3 |
|
Corporate |
|
|
20.5 |
|
|
|
19.4 |
|
|
|
56.9 |
|
|
|
90.4 |
|
Total |
|
$ |
84.9 |
|
|
$ |
73.7 |
|
|
$ |
305.9 |
|
|
$ |
302.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group (1) |
|
$ |
136.0 |
|
|
$ |
110.8 |
|
|
$ |
522.1 |
|
|
$ |
527.3 |
|
West Group (1), (2) |
|
|
103.1 |
|
|
|
79.2 |
|
|
|
471.3 |
|
|
|
366.9 |
|
Total Building Materials Business (2) |
|
|
239.1 |
|
|
|
190.0 |
|
|
|
993.4 |
|
|
|
894.2 |
|
Magnesia Specialties |
|
|
19.5 |
|
|
|
15.6 |
|
|
|
70.7 |
|
|
|
83.6 |
|
Corporate |
|
|
(18.0 |
) |
|
|
(21.0 |
) |
|
|
(58.7 |
) |
|
|
(92.9 |
) |
Total (2) |
|
$ |
240.6 |
|
|
$ |
184.6 |
|
|
$ |
1,005.4 |
|
|
$ |
884.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2019 amounts
have been restated from amounts presented in the 2019
fourth-quarter earnings release to reflect the transfer of the
Company's one quarry in the state of Washington from the East Group
to the West Group to conform with 2020 presentation. |
|
(2) Full-year
2020 amounts included $69.9 million of nonrecurring gains on
surplus land sales and divested assets. |
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights (Continued) |
|
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
Amount |
|
% of Revenues |
|
|
Amount |
|
% of Revenues |
|
|
Amount |
|
% of Revenues |
|
|
Amount |
|
% of Revenues |
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
677.2 |
|
|
|
|
|
$ |
635.3 |
|
|
|
|
|
$ |
2,769.3 |
|
|
|
|
|
$ |
2,756.7 |
|
|
|
|
Cement |
|
|
120.8 |
|
|
|
|
|
|
108.1 |
|
|
|
|
|
|
452.5 |
|
|
|
|
|
|
439.1 |
|
|
|
|
Ready mixed concrete |
|
|
262.7 |
|
|
|
|
|
|
223.9 |
|
|
|
|
|
|
952.1 |
|
|
|
|
|
|
948.1 |
|
|
|
|
Asphalt and paving |
|
|
76.8 |
|
|
|
|
|
|
68.4 |
|
|
|
|
|
|
331.7 |
|
|
|
|
|
|
294.0 |
|
|
|
|
Less: Interproduct sales |
|
|
(83.4 |
) |
|
|
|
|
|
(62.0 |
) |
|
|
|
|
|
(294.4 |
) |
|
|
|
|
|
(265.5 |
) |
|
|
|
Products and services |
|
|
1,054.1 |
|
|
|
|
|
|
973.7 |
|
|
|
|
|
|
4,211.2 |
|
|
|
|
|
|
4,172.4 |
|
|
|
|
Freight |
|
|
63.1 |
|
|
|
|
|
|
70.6 |
|
|
|
|
|
|
276.0 |
|
|
|
|
|
|
295.4 |
|
|
|
|
Total Building Materials Business |
|
|
1,117.2 |
|
|
|
|
|
|
1,044.3 |
|
|
|
|
|
|
4,487.2 |
|
|
|
|
|
|
4,467.8 |
|
|
|
|
Magnesia Specialties Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
56.8 |
|
|
|
|
|
|
51.0 |
|
|
|
|
|
|
220.9 |
|
|
|
|
|
|
249.9 |
|
|
|
|
Freight |
|
|
5.6 |
|
|
|
|
|
|
5.1 |
|
|
|
|
|
|
21.8 |
|
|
|
|
|
|
21.4 |
|
|
|
|
Total Magnesia Specialties Business |
|
|
62.4 |
|
|
|
|
|
|
56.1 |
|
|
|
|
|
|
242.7 |
|
|
|
|
|
|
271.3 |
|
|
|
|
Total |
|
$ |
1,179.6 |
|
|
|
|
|
$ |
1,100.4 |
|
|
|
|
|
$ |
4,729.9 |
|
|
|
|
|
$ |
4,739.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
208.2 |
|
|
30.7 |
% |
|
$ |
171.4 |
|
|
27.0 |
% |
|
$ |
848.5 |
|
|
30.6 |
% |
|
$ |
807.9 |
|
|
29.3 |
% |
Cement |
|
|
53.7 |
|
|
44.5 |
% |
|
|
38.9 |
|
|
36.0 |
% |
|
|
170.9 |
|
|
37.8 |
% |
|
|
143.4 |
|
|
32.7 |
% |
Ready mixed concrete |
|
|
22.9 |
|
|
8.7 |
% |
|
|
16.3 |
|
|
7.3 |
% |
|
|
79.6 |
|
|
8.4 |
% |
|
|
78.8 |
|
|
8.3 |
% |
Asphalt and paving |
|
|
13.9 |
|
|
18.1 |
% |
|
|
12.2 |
|
|
17.8 |
% |
|
|
60.4 |
|
|
18.2 |
% |
|
|
50.7 |
|
|
17.2 |
% |
Products and services |
|
|
298.7 |
|
|
28.3 |
% |
|
|
238.8 |
|
|
24.5 |
% |
|
|
1,159.4 |
|
|
27.5 |
% |
|
|
1,080.8 |
|
|
25.9 |
% |
Freight |
|
|
0.1 |
|
NM |
|
|
|
(0.6 |
) |
NM |
|
|
|
0.4 |
|
NM |
|
|
|
(0.2 |
) |
NM |
|
Total Building Materials Business |
|
|
298.8 |
|
|
26.7 |
% |
|
|
238.2 |
|
|
22.8 |
% |
|
|
1,159.8 |
|
|
25.8 |
% |
|
|
1,080.6 |
|
|
24.2 |
% |
Magnesia Specialties Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
24.3 |
|
|
42.8 |
% |
|
|
19.6 |
|
|
38.5 |
% |
|
|
89.6 |
|
|
40.6 |
% |
|
|
99.4 |
|
|
39.8 |
% |
Freight |
|
|
(0.9 |
) |
NM |
|
|
|
(0.8 |
) |
NM |
|
|
|
(4.1 |
) |
NM |
|
|
|
(4.0 |
) |
NM |
|
Total Magnesia Specialties Business |
|
|
23.4 |
|
|
37.5 |
% |
|
|
18.8 |
|
|
33.5 |
% |
|
|
85.5 |
|
|
35.2 |
% |
|
|
95.4 |
|
|
35.2 |
% |
Corporate |
|
|
3.2 |
|
NM |
|
|
|
1.6 |
|
NM |
|
|
|
7.5 |
|
NM |
|
|
|
3.0 |
|
NM |
|
Total |
|
$ |
325.4 |
|
|
27.6 |
% |
|
$ |
258.6 |
|
|
23.5 |
% |
|
$ |
1,252.8 |
|
|
26.5 |
% |
|
$ |
1,179.0 |
|
|
24.9 |
% |
MARTIN MARIETTA MATERIALS, INC. |
Balance Sheet Data |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
December 31 |
|
|
December 31 |
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
(Unaudited) |
|
|
(Audited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
207.3 |
|
|
$ |
21.0 |
|
|
Restricted cash |
|
|
97.1 |
|
|
|
— |
|
|
Accounts receivable, net |
|
|
575.1 |
|
|
|
573.7 |
|
|
Inventories, net |
|
|
709.0 |
|
|
|
690.8 |
|
|
Other current assets |
|
|
79.8 |
|
|
|
141.2 |
|
|
Property, plant and equipment, net |
|
|
5,242.3 |
|
|
|
5,206.0 |
|
|
Intangible assets, net |
|
|
2,922.0 |
|
|
|
2,883.6 |
|
|
Operating lease right-of-use assets, net |
|
|
453.0 |
|
|
|
481.9 |
|
|
Other noncurrent assets |
|
|
295.2 |
|
|
|
133.4 |
|
|
Total assets |
|
$ |
10,580.8 |
|
|
$ |
10,131.6 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Current maturities of long-term debt and short-term facilities |
|
$ |
— |
|
|
$ |
340.0 |
|
|
Other current liabilities |
|
|
499.3 |
|
|
|
498.5 |
|
|
Long-term debt (excluding current maturities) |
|
|
2,625.8 |
|
|
|
2,433.6 |
|
|
Other noncurrent liabilities |
|
|
1,562.4 |
|
|
|
1,506.2 |
|
|
Total equity |
|
|
5,893.3 |
|
|
|
5,353.3 |
|
|
Total liabilities and equity |
|
$ |
10,580.8 |
|
|
$ |
10,131.6 |
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Statements of Cash Flows |
|
(In millions) |
|
|
|
Twelve Months Ended |
|
|
|
December 31 |
|
|
|
2020 |
|
|
2019 |
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Consolidated net earnings |
|
$ |
721.1 |
|
|
$ |
612.0 |
|
Adjustments to reconcile consolidated net earnings to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
393.5 |
|
|
|
371.5 |
|
Stock-based compensation expense |
|
|
30.0 |
|
|
|
34.1 |
|
Gains on divestitures and sales of assets |
|
|
(73.0 |
) |
|
|
(3.1 |
) |
Deferred income taxes, net |
|
|
43.8 |
|
|
|
29.4 |
|
Other items, net |
|
|
2.1 |
|
|
|
8.6 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
6.1 |
|
|
|
(50.4 |
) |
Inventories, net |
|
|
(19.3 |
) |
|
|
(27.7 |
) |
Accounts payable |
|
|
(34.0 |
) |
|
|
25.9 |
|
Other assets and liabilities, net |
|
|
(20.2 |
) |
|
|
(34.2 |
) |
Net Cash Provided by Operating
Activities |
|
|
1,050.1 |
|
|
|
966.1 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities: |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(359.7 |
) |
|
|
(393.5 |
) |
Acquisitions, net of cash acquired |
|
|
(65.1 |
) |
|
|
— |
|
Proceeds from divestitures and sales of assets |
|
|
142.3 |
|
|
|
8.4 |
|
Investments in life insurance contracts, net |
|
|
(111.2 |
) |
|
|
0.6 |
|
Other investing activities, net |
|
|
(16.0 |
) |
|
|
(1.4 |
) |
Net Cash Used for Investing
Activities |
|
|
(409.7 |
) |
|
|
(385.9 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Financing
Activities: |
|
|
|
|
|
|
|
|
Borrowings of long-term debt |
|
|
628.1 |
|
|
|
625.0 |
|
Repayments of long-term debt |
|
|
(777.1 |
) |
|
|
(975.1 |
) |
Debt issuance costs |
|
|
(2.0 |
) |
|
|
— |
|
Payments on finance lease obligations |
|
|
(3.5 |
) |
|
|
(11.0 |
) |
Dividends paid |
|
|
(140.3 |
) |
|
|
(129.8 |
) |
Repurchases of common stock |
|
|
(50.0 |
) |
|
|
(98.2 |
) |
Distributions to owners of noncontrolling interest |
|
|
— |
|
|
|
(0.6 |
) |
Proceeds from exercise of stock options |
|
|
2.3 |
|
|
|
13.7 |
|
Shares withheld for employees’ income tax obligations |
|
|
(14.5 |
) |
|
|
(28.1 |
) |
Net Cash Used for Financing
Activities |
|
|
(357.0 |
) |
|
|
(604.1 |
) |
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in
Cash, Cash Equivalents and Restricted Cash |
|
|
283.4 |
|
|
|
(23.9 |
) |
Cash, Cash Equivalents and
Restricted Cash, beginning of year |
|
|
21.0 |
|
|
|
44.9 |
|
Cash, Cash Equivalents and
Restricted Cash, end of year |
|
$ |
304.4 |
|
|
$ |
21.0 |
|
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Operational Highlights |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2020 |
|
December 31, 2020 |
|
|
Volume |
|
Pricing |
|
Volume |
|
Pricing |
Volume/Pricing
Variance (1) |
|
|
|
|
|
|
|
|
East Group (2) |
|
|
3.1 |
% |
|
|
6.0 |
% |
|
|
(3.0 |
%) |
|
|
3.8 |
% |
West Group (2) |
|
|
2.8 |
% |
|
|
(1.3 |
%) |
|
|
(1.4 |
%) |
|
|
1.7 |
% |
Total aggregates (3) |
|
|
3.0 |
% |
|
|
3.5 |
% |
|
|
(2.4 |
%) |
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
Shipments
(tons in millions) |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
East Group (2) |
|
|
29.2 |
|
|
|
28.4 |
|
|
|
118.7 |
|
|
|
122.3 |
|
West Group (2) |
|
|
16.0 |
|
|
|
15.5 |
|
|
|
67.8 |
|
|
|
68.8 |
|
Total aggregates (3) |
|
|
45.2 |
|
|
|
43.9 |
|
|
|
186.5 |
|
|
|
191.1 |
|
|
|
|
|
|
|
|
|
|
(1)
Volume/pricing variances reflect the percentage increase from the
comparable period in the prior year. |
(2) Reflects the
reclassification of 2019 shipments, when compared with amounts
presented in the 2019 fourth-quarter and full-year earnings
release, to reflect the transfer of the Company's one quarry in the
state of Washington from the East Group to the West Group to
conform with 2020 presentation. |
(3) Aggregates
operations includes acquisitions from the date of acquisition and
divestitures through the date of disposal. |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Shipments (in
millions) |
|
|
|
|
|
|
|
|
Aggregates tons - external
customers |
|
|
41.9 |
|
|
|
41.7 |
|
|
|
173.9 |
|
|
|
181.1 |
|
Internal aggregates tons used
in other product lines |
|
|
3.3 |
|
|
|
2.2 |
|
|
|
12.6 |
|
|
|
10.0 |
|
Total aggregates tons |
|
|
45.2 |
|
|
|
43.9 |
|
|
|
186.5 |
|
|
|
191.1 |
|
|
|
|
|
|
|
|
|
|
Cement tons - external
customers |
|
|
0.7 |
|
|
|
0.6 |
|
|
|
2.7 |
|
|
|
2.7 |
|
Internal cement tons used in
other product lines |
|
|
0.4 |
|
|
|
0.3 |
|
|
|
1.3 |
|
|
|
1.2 |
|
Total cement tons |
|
|
1.1 |
|
|
|
0.9 |
|
|
|
4.0 |
|
|
|
3.9 |
|
|
|
|
|
|
|
|
|
|
Ready mixed concrete - cubic
yards (1) |
|
|
2.3 |
|
|
|
2.0 |
|
|
|
8.4 |
|
|
|
8.5 |
|
|
|
|
|
|
|
|
|
|
Asphalt tons - external
customers |
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.8 |
|
|
|
0.9 |
|
Internal asphalt tons used in
road paving business |
|
|
0.5 |
|
|
|
0.4 |
|
|
|
2.5 |
|
|
|
2.0 |
|
Total asphalt tons |
|
|
0.7 |
|
|
|
0.6 |
|
|
|
3.3 |
|
|
|
2.9 |
|
|
|
|
|
|
|
|
|
|
(1) Ready mixed
concrete includes acquisitions from the date of acquisition and
divestitures through the date of disposal. |
|
|
|
|
|
|
|
|
|
Average unit sales
price by product line (including internal sales): |
|
|
|
|
|
|
|
|
Aggregates (per ton) |
|
$ |
14.88 |
|
|
$ |
14.38 |
|
|
$ |
14.77 |
|
|
$ |
14.33 |
|
Cement (per ton) |
|
$ |
114.00 |
|
|
$ |
113.43 |
|
|
$ |
113.88 |
|
|
$ |
112.75 |
|
Ready mixed concrete (per
cubic yard) |
|
$ |
113.07 |
|
|
$ |
112.74 |
|
|
$ |
113.57 |
|
|
$ |
111.32 |
|
Asphalt (per ton) |
|
$ |
48.05 |
|
|
$ |
46.43 |
|
|
$ |
48.00 |
|
|
$ |
46.75 |
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures (Dollars
in millions)
Earnings before interest; income taxes;
depreciation, depletion and amortization expense; and the
earnings/loss from nonconsolidated equity affiliates (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 or operating cash flow.
For further information on Adjusted EBITDA, refer to the Company’s
website at www.martinmarietta.com.
A
Reconciliation of Net Earnings Attributable to Martin Marietta to
Adjusted EBITDA is as follows: |
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net earnings attributable to Martin Marietta |
|
$ |
183.0 |
|
|
$ |
131.0 |
|
|
$ |
721.0 |
|
|
$ |
611.9 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
28.4 |
|
|
|
30.6 |
|
|
|
117.6 |
|
|
|
128.9 |
|
Income tax expense for controlling interests |
|
|
25.2 |
|
|
|
25.3 |
|
|
|
168.2 |
|
|
|
136.3 |
|
Depreciation, depletion and amortization expense and
noncash earnings/loss from nonconsolidated equity
affiliates |
|
|
98.5 |
|
|
|
91.9 |
|
|
|
386.0 |
|
|
|
377.4 |
|
Adjusted EBITDA |
|
$ |
335.1 |
|
|
$ |
278.8 |
|
|
$ |
1,392.8 |
|
|
$ |
1,254.5 |
|
A Reconciliation of the GAAP Measure to
2021 Adjusted EBITDA Guidance Range is as follows:
|
|
Low Point of Range |
|
|
High Point of Range |
|
Net earnings attributable to Martin Marietta |
|
$ |
665.0 |
|
|
$ |
750.0 |
|
Add back: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
115.0 |
|
|
|
110.0 |
|
Taxes on income |
|
|
180.0 |
|
|
|
200.0 |
|
Depreciation, depletion and amortization expense and noncash
earnings/loss from nonconsolidated equity
affiliates |
|
|
390.0 |
|
|
|
390.0 |
|
Adjusted EBITDA |
|
$ |
1,350.0 |
|
|
$ |
1,450.0 |
|
MARTIN MARIETTA MATERIALS,
INC.Non-GAAP Financial Measures
(Continued)
The following table presents ready mixed
concrete shipment data and volume variance excluding ready mixed
concrete operations acquired in August 2020 and excluding the
Arkansas, Louisiana and Eastern Texas ready mix business (ArkLaTex
business divested in January 2020) during the period of Martin
Marietta's ownership to provide a more comparable analysis of ready
mixed concrete volume variance:
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Shipments |
|
(Cubic Yards in Millions) |
Reported ready mixed concrete
shipments |
|
2.3 |
|
|
2.0 |
|
|
8.4 |
|
|
8.5 |
|
Less: ready mixed concrete
shipments of acquired operations |
|
(0.1 |
) |
|
— |
|
|
(0.2 |
) |
|
— |
|
Less: ready mixed concrete
shipments for the ArkLaTex business during the
period of Martin Marietta ownership |
|
— |
|
|
(0.2 |
) |
|
— |
|
|
(0.6 |
) |
Adjusted ready mixed concrete
shipments |
|
2.2 |
|
|
1.8 |
|
|
8.2 |
|
|
7.9 |
|
|
|
|
|
|
|
|
|
|
Reported ready mixed concrete
volume variance |
|
17.0 |
% |
|
|
|
(1.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted ready mixed concrete
volume variance |
|
18.5 |
% |
|
|
|
3.2 |
% |
|
|
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 |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
|
2019 |
East Group -
Aggregates: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
15.48 |
|
|
$ |
14.60 |
|
$ |
15.31 |
|
|
$ |
14.75 |
Adjustment for (favorable)
unfavorable impact of product, geographic and other mix |
|
|
(0.35 |
) |
|
|
|
|
0.02 |
|
|
|
Mix-adjusted average selling
price |
|
$ |
15.13 |
|
|
|
|
$ |
15.33 |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
6.0 |
% |
|
|
|
|
3.8 |
% |
|
|
Mix-adjusted ASP variance |
|
|
3.6 |
% |
|
|
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
West Group -
Aggregates: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
13.80 |
|
|
$ |
13.98 |
|
$ |
13.82 |
|
|
$ |
13.59 |
Adjustment for unfavorable
impact of product, geographic and other mix |
|
|
0.63 |
|
|
|
|
|
0.30 |
|
|
|
Mix-adjusted average selling
price |
|
$ |
14.43 |
|
|
|
|
$ |
14.12 |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
(1.3 |
%) |
|
|
|
|
1.7 |
% |
|
|
Mix-adjusted ASP variance |
|
|
3.2 |
% |
|
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Total
Aggregates: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
14.88 |
|
|
$ |
14.38 |
|
$ |
14.77 |
|
|
$ |
14.33 |
Adjustment for unfavorable
impact of product, geographic and other mix |
|
|
— |
|
|
|
|
|
0.13 |
|
|
|
Mix-adjusted average selling
price |
|
$ |
14.88 |
|
|
|
|
$ |
14.90 |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
3.5 |
% |
|
|
|
|
3.1 |
% |
|
|
Mix-adjusted ASP variance |
|
|
3.5 |
% |
|
|
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Cement: |
|
|
|
|
|
|
|
|
Reported average selling
price |
|
$ |
114.00 |
|
|
$ |
113.43 |
|
$ |
113.88 |
|
|
$ |
112.75 |
Adjustment for unfavorable
impact of product, geographic and other mix |
|
|
2.80 |
|
|
|
|
|
2.52 |
|
|
|
Mix-adjusted average selling
price |
|
$ |
116.80 |
|
|
|
|
$ |
116.40 |
|
|
|
|
|
|
|
|
|
|
|
|
Reported average selling price
variance |
|
|
0.5 |
% |
|
|
|
|
1.0 |
% |
|
|
Mix-adjusted ASP variance |
|
|
3.0 |
% |
|
|
|
|
3.2 |
% |
|
|
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