UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, DC 20549

 
 
FORM 8-K 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 2, 2019
 
VULCAN MATERIALS COMPANY
(Exact name of registrant as specified in its charter)
 
New Jersey	 	001-33841	 	20-8579133	
(State or other jurisdiction	 	(Commission File Number)	 	(IRS Employer Identification No.)	
of incorporation)	 	 	 	 	
 
1200 Urban Center Drive
Birmingham, Alabama 35242
(Address of principal executive offices) (zip code)

(205) 298-3000
Registrant's telephone number, including area code
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company     ¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class	 	Trading Symbol(s)	 	Name of each exchange on which 
registered	
 	 	 	 	 	
Common Stock, $1 par value	 	VMC	 	New York Stock Exchange	

 

 

Item 2.02		Results of Operations and Financial Condition.	
 
On May 2, 2019, Vulcan Materials Company announced its financial results for the first quarter ended March 31, 2019. The press release announcing the results is furnished as Exhibit 99.1.
 
Item 9.01		Financial Statements and Exhibits.	
 
(d) Exhibits
 
Exhibit No.	 	Description	
 	 	 	
99.1	 	Press release dated May 2, 2019.	

 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 	VULCAN MATERIALS COMPANY	
 	 	
Date: May 2, 2019	By:	/s/ Michael R. Mills	
 	 	Name:	Michael R. Mills	
 	 	Title:	Chief Administrative Officer and
Secretary 	

 

Exhibit 99.1

 
May 2, 2019
FOR IMMEDIATE RELEASE
Investor Contact: Mark Warren (205) 298-3220
Media Contact: David Donaldson (205) 298-3220
 
VULCAN ANNOUNCES FIRST QUARTER 2019 RESULTS
 
EPS from Continuing Operations Increases to $0.48 per Diluted Share
Aggregates Gross Profit Increases 25 Percent and Unit Profitability Expands
 
Birmingham, Alabama – May 2, 2019 – 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.”

 
 
Page 2
May 2, 2019
FOR IMMEDIATE RELEASE

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.

 
 
Page 3
May 2, 2019
FOR IMMEDIATE RELEASE
 
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.

 
 
Page 4
May 2, 2019
FOR IMMEDIATE RELEASE
 
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.

 
 
Page 5
May 2, 2019
FOR IMMEDIATE RELEASE
 
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	 	
 
	1	Includes 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.	
	2	Includes product sales, as well as service revenues from our asphalt construction paving business.	
	3	Freight-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.	
	4	Freight-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	 	
 
	1	At 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	%	 	 	 	 	
 
	1	At 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	 	
 
	1	Represents 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