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, 2023.
Fourth-Quarter and Full-Year Highlights (Financial highlights
are for continuing operations)
| |
Quarter Ended December 31, |
|
Year Ended December 31, |
|
(dollars in millions, except per share) |
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
|
Total revenues 1 |
$ |
1,608.2 |
|
|
$ |
1,476.5 |
|
|
|
8.9 |
% |
|
$ |
6,777.2 |
|
|
$ |
6,160.7 |
|
|
|
10.0 |
% |
| Gross profit |
$ |
483.5 |
|
|
$ |
354.2 |
|
|
|
36.5 |
% |
|
$ |
2,022.6 |
|
|
$ |
1,423.3 |
|
|
|
42.1 |
% |
| Earnings from operations2 |
$ |
370.2 |
|
|
$ |
262.3 |
|
|
|
41.1 |
% |
|
$ |
1,596.0 |
|
|
$ |
1,206.7 |
|
|
|
32.3 |
% |
| Net earnings from continuing
operations attributable to Martin Marietta2 |
$ |
287.7 |
|
|
$ |
187.4 |
|
|
|
53.5 |
% |
|
$ |
1,199.8 |
|
|
$ |
856.3 |
|
|
|
40.1 |
% |
| Adjusted EBITDA 3 |
$ |
502.6 |
|
|
$ |
391.7 |
|
|
|
28.3 |
% |
|
$ |
2,127.7 |
|
|
$ |
1,600.3 |
|
|
|
33.0 |
% |
| Earnings per diluted share
from continuing operations2 |
$ |
4.63 |
|
|
$ |
3.01 |
|
|
|
53.8 |
% |
|
$ |
19.32 |
|
|
$ |
13.70 |
|
|
|
41.0 |
% |
- Total revenues
include the sales of products and services to customers (net of any
discounts or allowances) and freight revenues.
- Year ended
December 31, 2022, earnings from operations, net earnings from
continuing operations attributable to Martin Marietta and earnings
per diluted share from continuing operations include $151.9
million, $108.8 million and $1.74 per diluted share, respectively,
for a nonrecurring gain on a divestiture.
- Earnings from
continuing operations before interest, income taxes, depreciation,
depletion and amortization expense, the earnings/loss from
nonconsolidated equity affiliates, acquisition, divestiture and
integration expenses, and the nonrecurring gain on the divestiture
of certain ready mixed concrete operations, 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, Chair and CEO of Martin Marietta,
stated, "A strong fourth quarter capped the best year in our
company's history. In fact, 2023 was extraordinary in nearly every
respect for Martin Marietta. We achieved the safest and most
profitable year ever while enhancing the durability of our business
through enterprise excellence together with undertaking non-core
asset divestitures.
"The team's disciplined execution of our proven
value-over-volume commercial strategy drove an organic improvement
of 33.0 percent and 46.4 percent in full-year Adjusted EBITDA and
aggregates unit profitability, respectively. These accomplishments,
notwithstanding a macroeconomic backdrop that was highlighted by
restrictive monetary policy, a housing slowdown and rising
geopolitical tensions, demonstrate the resiliency of our
aggregates-led business model and position us well for continued
success in 2024 and beyond.
"Looking at the year ahead, we expect aggregates
demand for infrastructure, large-scale energy and domestic
manufacturing projects will be strong, largely offsetting weaker
residential demand and anticipated softening in light
nonresidential activity. That said, as mortgage rates stabilize and
affordability headwinds recede, we fully expect single-family
residential construction to recover, as demand still far exceeds
supply particularly in our key markets."
Mr. Nye concluded, "The advantaged nationwide
presence of our business, built over decades, and further
complemented with our recently-announced acquisitions, uniquely
positions us to capitalize on favorable population migration trends
in the near-, medium- and long-term. Together with this foundation
and our unyielding commitment to execute our proven strategic plan,
we fully expect to continue driving sustainable growth and
shareholder returns through dynamic macroeconomic cycles."
Fourth-Quarter Financial and Operating
Results
(All financial and operating results are for
continuing operations and comparisons are versus the prior-year
fourth quarter, unless otherwise noted)
Building Materials Business
The Building Materials business achieved record
fourth-quarter revenues and gross profit. Revenues of $1.53 billion
increased 8.9 percent and gross profit of $461.3 million increased
39.2 percent.
Aggregates
Fourth-quarter aggregates shipments decreased
2.1 percent, reflective of the Company's value-over-volume strategy
and moderating demand resulting from the affordability-driven
residential slowdown and a softening in warehouse and data center
construction. Pricing increased 15.0 percent, or 14.3 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 36.8 percent
to $328.6 million and gross margin increased 650 basis points to
32.2 percent, both fourth-quarter records.
Cement
Texas cement fourth-quarter shipments decreased
8.1 percent to 0.9 million tons, primarily due to wet weather.
Pricing increased 16.6 percent, aided by favorable supply/demand
dynamics in the Dallas-Fort Worth Metroplex.
Notwithstanding the shipment decline, cement
gross profit increased 46.0 percent to $84.5 million and gross
margin expanded by 1,450 basis points to 52.8 percent, both
fourth-quarter records, as energy and maintenance costs moderated
on a comparative basis.
Downstream businesses
Ready mixed concrete revenues improved 12.1
percent to $232.8 million, while gross profit increased 38.3
percent to $21.3 million.
Asphalt and paving revenues increased 13.3
percent to $228.4 million. Gross profit increased 49.8% to $26.9
million as lower natural gas and liquid asphalt, or bitumen, costs
augmented pricing growth.
Portfolio Optimization
On January 12, 2024, the Company acquired Albert
Frei & Sons (AFS), a leading aggregates producer in Colorado,
and entered into a definitive agreement on February 11, 2024, to
acquire the Alabama, South Carolina, South Florida, Tennessee and
Virginia aggregates operations from affiliates of Blue Water
Industries LLC (BWI Southeast). Upon closing of the BWI Southeast
transaction, which is expected to occur later this year subject to
regulatory approvals and customary closing conditions, these two
pure-play aggregates businesses will add approximately one billion
tons of reserves in high-growth metropolitan areas including
Denver, Nashville, Knoxville and Miami. After giving effect to
these transactions, they are expected to more than offset the
run-rate Adjusted EBITDA divested in the February 9, 2024, sale of
the Company's South Texas cement and related concrete
operations.
Collectively, these portfolio optimizing
transactions, wholly consistent with the Company's aggregates-led
product strategy, not only improve the Company's product mix and
margin profile, but also enhance the durability of the business
while maintaining significant balance sheet flexibility for future
growth and shareholder returns.
Magnesia Specialties
Business
Magnesia Specialties fourth-quarter revenues
increased 9.2 percent to $76.0 million, as strong pricing gains in
both chemicals and lime product lines, as well as improved demand
for lime products, more than offset lower demand for chemical
products. Higher revenues, combined with energy tailwinds, resulted
in gross profit of $23.0 million for the fourth quarter, a notable
14.9 percent improvement year-over-year.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities for the
year ended December 31, 2023, was $1.53 billion compared with
$991.2 million for the prior year.
Cash paid for property, plant and equipment
additions for the year ended December 31, 2023, was $650.3
million.
For the year ended December 31, 2023, the
Company returned $324.0 million to shareholders through dividend
payments and share repurchases. As of December 31, 2023, 12.7
million shares remained under the current repurchase
authorization.
The Company had $1.27 billion of unrestricted cash and cash
equivalents on hand and $1.20 billion of unused borrowing capacity
on its existing credit facilities as of December 31, 2023.
Full-Year 2024 Guidance
The Company’s 2024 guidance table below reflects
the AFS acquisition and the South Texas cement and related concrete
operations divestiture as of their respective closing dates, but
does not include contributions from the announced BWI Southeast
acquisition, which will be updated following the closing of the
transaction. Giving effect to the two acquisitions and the
divestiture as if each closed on January 1, 2024, the Company's
full year 2024 Adjusted EBITDA guidance would be $2.37 billion at
the midpoint.
|
2024 GUIDANCE |
|
(Dollars in Millions) |
|
Low * |
|
High * |
|
Consolidated |
|
|
|
|
|
|
|
Total revenues |
|
$ |
6,745 |
|
|
$ |
7,185 |
|
| Interest expense |
|
$ |
55 |
|
|
$ |
65 |
|
| Estimated tax rate (excluding
discrete events) |
|
|
21 |
% |
|
|
22 |
% |
| Net earnings from continuing
operations attributable to Martin Marietta |
|
$ |
1,205 |
|
|
$ |
1,385 |
|
| Adjusted EBITDA1 |
|
$ |
2,140 |
|
|
$ |
2,340 |
|
| Capital
expenditures |
|
$ |
650 |
|
|
$ |
700 |
|
|
|
|
|
|
|
|
|
| Building Materials
Business |
|
|
|
|
|
|
| Aggregates |
|
|
|
|
|
|
|
Volume % growth2 |
|
|
(2.0 |
)% |
|
|
2.0 |
% |
|
ASP % growth3 |
|
|
10.0 |
% |
|
|
12.0 |
% |
|
Gross profit |
|
$ |
1,610 |
|
|
$ |
1,730 |
|
| |
|
|
|
|
|
|
| Cement, Ready Mixed Concrete
and Asphalt and Paving |
|
|
|
|
|
|
|
Gross profit |
|
$ |
395 |
|
|
$ |
445 |
|
| |
|
|
|
|
|
|
| Magnesia Specialties
Business |
|
|
|
|
|
|
|
Gross profit |
|
$ |
100 |
|
|
$ |
110 |
|
* Guidance range represents the low end and high end of the
respective line items provided above.
- 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.
- Volume growth range is inclusive of
internal tons and is in comparison to 2023 shipments of 198.8
million tons.
- ASP growth is in comparison to 2023
ASP of $19.84 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 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 2023 earnings results on a conference call and an online
webcast today (February 14, 2024). The live broadcast of the Martin
Marietta conference call will begin at 10:00 a.m. Eastern Time and
can be accessed by dialing +1 (206) 962-3782 and using conference
ID 94062876. 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 Q4 and Full Year 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 Contact:
Jacklyn RookerDirector,
Investor Relations (919)
510-4736Jacklyn.Rooker@martinmarietta.com
MLM-E.
If you are interested in Martin Marietta stock,
management recommends that, at a minimum, reading 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.
Fourth-quarter and full-year 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 2024
guidance) 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 fuel 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, North Carolina, Colorado, California,
Georgia, Minnesota, 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 a
sustained period of low global oil prices or changes in oil
production patterns or capital spending, particularly in Texas and
West Virginia; sustained high residential mortgage interest rates
and other factors that have 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;
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 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; the
strategic benefits, outlook, performance and opportunities expected
as a result of acquisitions and portfolio optimization; 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, Martin Marietta’s
Quarterly Reports on Form 10-Q for the quarters ended March 31,
2023, June 30, 2023, and September 30, 2023, 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.
Appendix
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Statements of Earnings |
|
(in millions, except per share data) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31 |
|
December 31 |
| |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Total Revenues |
|
$ |
1,608.2 |
|
|
$ |
1,476.5 |
|
|
$ |
6,777.2 |
|
|
$ |
6,160.7 |
|
| Total cost of revenues |
|
|
1,124.7 |
|
|
|
1,122.3 |
|
|
|
4,754.6 |
|
|
|
4,737.4 |
|
| Gross Profit |
|
|
483.5 |
|
|
|
354.2 |
|
|
|
2,022.6 |
|
|
|
1,423.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Selling, general and
administrative expenses |
|
|
118.7 |
|
|
|
100.7 |
|
|
|
442.8 |
|
|
|
396.7 |
|
| Acquisition, divestiture and
integration expenses |
|
|
7.6 |
|
|
|
3.0 |
|
|
|
12.2 |
|
|
|
9.1 |
|
| Other operating income,
net |
|
|
(13.0 |
) |
|
|
(11.8 |
) |
|
|
(28.4 |
) |
|
|
(189.2 |
) |
|
Earnings from Operations |
|
|
370.2 |
|
|
|
262.3 |
|
|
|
1,596.0 |
|
|
|
1,206.7 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
40.2 |
|
|
|
42.6 |
|
|
|
165.3 |
|
|
|
169.0 |
|
| Other nonoperating income,
net |
|
|
(12.9 |
) |
|
|
(13.3 |
) |
|
|
(62.1 |
) |
|
|
(53.4 |
) |
|
Earnings from continuing operations before income tax expense |
|
|
342.9 |
|
|
|
233.0 |
|
|
|
1,492.8 |
|
|
|
1,091.1 |
|
| Income tax expense |
|
|
55.1 |
|
|
|
45.4 |
|
|
|
292.5 |
|
|
|
234.8 |
|
| Earnings from continuing
operations |
|
|
287.8 |
|
|
|
187.6 |
|
|
|
1,200.3 |
|
|
|
856.3 |
|
| (Loss)
Earnings from discontinued operations, net of income
tax (benefit) expense |
|
|
(5.2 |
) |
|
|
(3.8 |
) |
|
|
(30.9 |
) |
|
|
10.5 |
|
| Consolidated net earnings |
|
|
282.6 |
|
|
|
183.8 |
|
|
|
1,169.4 |
|
|
|
866.8 |
|
| Less: Net earnings
attributable to noncontrolling interests |
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.5 |
|
|
|
— |
|
| Net Earnings Attributable to
Martin Marietta |
|
$ |
282.5 |
|
|
$ |
183.6 |
|
|
$ |
1,168.9 |
|
|
$ |
866.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) per common
share attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic from continuing operations |
|
$ |
4.65 |
|
|
$ |
3.02 |
|
|
$ |
19.38 |
|
|
$ |
13.74 |
|
|
Basic from discontinued operations |
|
$ |
(0.08 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.50 |
) |
|
$ |
0.17 |
|
|
Basic |
|
$ |
4.57 |
|
|
$ |
2.96 |
|
|
$ |
18.88 |
|
|
$ |
13.91 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted from continuing operations |
|
$ |
4.63 |
|
|
$ |
3.01 |
|
|
$ |
19.32 |
|
|
$ |
13.70 |
|
|
Diluted from discontinued operations |
|
$ |
(0.08 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.50 |
) |
|
$ |
0.17 |
|
|
Diluted |
|
$ |
4.55 |
|
|
$ |
2.95 |
|
|
$ |
18.82 |
|
|
$ |
13.87 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
61.8 |
|
|
|
62.1 |
|
|
|
61.9 |
|
|
|
62.3 |
|
|
Diluted |
|
|
62.0 |
|
|
|
62.3 |
|
|
|
62.1 |
|
|
|
62.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends per common
share |
|
$ |
0.74 |
|
|
$ |
0.66 |
|
|
$ |
2.80 |
|
|
$ |
2.54 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31 |
|
December 31 |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
| Total
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
684.3 |
|
|
$ |
601.1 |
|
|
$ |
2,763.4 |
|
|
$ |
2,468.1 |
|
|
West Group |
|
|
847.9 |
|
|
|
805.8 |
|
|
|
3,698.4 |
|
|
|
3,388.6 |
|
| Total
Building Materials business |
|
|
1,532.2 |
|
|
|
1,406.9 |
|
|
|
6,461.8 |
|
|
|
5,856.7 |
|
|
Magnesia Specialties |
|
|
76.0 |
|
|
|
69.6 |
|
|
|
315.4 |
|
|
|
304.0 |
|
|
Total |
|
$ |
1,608.2 |
|
|
$ |
1,476.5 |
|
|
$ |
6,777.2 |
|
|
$ |
6,160.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
East Group |
|
$ |
225.5 |
|
|
$ |
162.2 |
|
|
$ |
857.1 |
|
|
$ |
640.2 |
|
|
West Group |
|
|
159.9 |
|
|
|
110.8 |
|
|
|
777.1 |
|
|
|
588.1 |
|
| Total
Building Materials business |
|
|
385.4 |
|
|
|
273.0 |
|
|
|
1,634.2 |
|
|
|
1,228.3 |
|
|
Magnesia Specialties |
|
|
15.2 |
|
|
|
16.8 |
|
|
|
76.0 |
|
|
|
75.2 |
|
|
Corporate |
|
|
(30.4 |
) |
|
|
(27.5 |
) |
|
|
(114.2 |
) |
|
|
(96.8 |
) |
|
Total |
|
$ |
370.2 |
|
|
$ |
262.3 |
|
|
$ |
1,596.0 |
|
|
$ |
1,206.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Financial Highlights (Continued) |
|
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31 |
|
December 31 |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
Amount |
% of Revenues |
|
Amount |
% of Revenues |
|
Amount |
% of Revenues |
|
Amount |
% of Revenues |
| Total
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
1,021.9 |
|
|
|
|
$ |
934.1 |
|
|
|
|
$ |
4,301.6 |
|
|
|
|
$ |
3,879.0 |
|
|
|
|
Cement |
|
|
160.2 |
|
|
|
|
|
151.0 |
|
|
|
|
|
725.5 |
|
|
|
|
|
620.0 |
|
|
|
|
Ready mixed concrete |
|
|
232.8 |
|
|
|
|
|
207.8 |
|
|
|
|
|
1,009.3 |
|
|
|
|
|
953.2 |
|
|
|
|
Asphalt and paving |
|
|
228.4 |
|
|
|
|
|
201.5 |
|
|
|
|
|
887.1 |
|
|
|
|
|
787.9 |
|
|
|
|
Less: Interproduct sales |
|
|
(111.1 |
) |
|
|
|
|
(87.5 |
) |
|
|
|
|
(461.7 |
) |
|
|
|
|
(383.4 |
) |
|
|
|
Total Building Materials business |
|
|
1,532.2 |
|
|
|
|
|
1,406.9 |
|
|
|
|
|
6,461.8 |
|
|
|
|
|
5,856.7 |
|
|
|
|
Magnesia Specialties |
|
|
76.0 |
|
|
|
|
|
69.6 |
|
|
|
|
|
315.4 |
|
|
|
|
|
304.0 |
|
|
|
|
Consolidated total revenues |
|
$ |
1,608.2 |
|
|
|
|
$ |
1,476.5 |
|
|
|
|
$ |
6,777.2 |
|
|
|
|
$ |
6,160.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
328.6 |
|
|
32.2 |
% |
|
$ |
240.1 |
|
|
25.7 |
% |
|
$ |
1,378.1 |
|
|
32.0 |
% |
|
$ |
983.8 |
|
|
25.4 |
% |
|
Cement |
|
|
84.5 |
|
|
52.8 |
% |
|
|
57.9 |
|
|
38.3 |
% |
|
|
333.6 |
|
|
46.0 |
% |
|
|
202.7 |
|
|
32.7 |
% |
|
Ready mixed concrete |
|
|
21.3 |
|
|
9.1 |
% |
|
|
15.4 |
|
|
7.4 |
% |
|
|
102.0 |
|
|
10.1 |
% |
|
|
70.7 |
|
|
7.4 |
% |
|
Asphalt and paving |
|
|
26.9 |
|
|
11.8 |
% |
|
|
18.0 |
|
|
8.9 |
% |
|
|
109.0 |
|
|
12.3 |
% |
|
|
81.0 |
|
|
10.3 |
% |
|
Total Building Materials business |
|
|
461.3 |
|
|
30.1 |
% |
|
|
331.4 |
|
|
23.6 |
% |
|
|
1,922.7 |
|
|
29.8 |
% |
|
|
1,338.2 |
|
|
22.8 |
% |
|
Magnesia Specialties |
|
|
23.0 |
|
|
30.3 |
% |
|
|
20.0 |
|
|
28.8 |
% |
|
|
97.1 |
|
|
30.8 |
% |
|
|
90.9 |
|
|
29.9 |
% |
|
Corporate |
|
|
(0.8 |
) |
NM |
|
|
|
2.8 |
|
NM |
|
|
|
2.8 |
|
NM |
|
|
|
(5.8 |
) |
NM |
|
|
Total |
|
$ |
483.5 |
|
|
30.1 |
% |
|
$ |
354.2 |
|
|
24.0 |
% |
|
$ |
2,022.6 |
|
|
29.8 |
% |
|
$ |
1,423.3 |
|
|
23.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Balance Sheet Data |
|
(in millions) |
|
|
|
|
|
|
|
| |
December 31 |
|
December 31 |
| |
2023 |
|
2022 |
| |
(Unaudited) |
|
(Audited) |
| ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,271.8 |
|
|
$ |
358.0 |
|
|
Restricted cash |
|
10.5 |
|
|
|
0.8 |
|
|
Restricted investments (to satisfy discharged debt and related
interest) |
|
— |
|
|
|
704.6 |
|
|
Accounts receivable, net |
|
753.3 |
|
|
|
785.9 |
|
|
Inventories, net |
|
988.6 |
|
|
|
873.7 |
|
|
Current assets held for sale |
|
807.1 |
|
|
|
73.2 |
|
|
Other current assets |
|
87.6 |
|
|
|
80.7 |
|
|
Property, plant and equipment, net |
|
6,185.9 |
|
|
|
6,316.7 |
|
|
Intangible assets, net |
|
4,087.2 |
|
|
|
4,497.3 |
|
|
Operating lease right-of-use assets, net |
|
371.6 |
|
|
|
383.5 |
|
|
Other noncurrent assets |
|
561.3 |
|
|
|
919.2 |
|
|
Total assets |
$ |
15,124.9 |
|
|
$ |
14,993.6 |
|
| |
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current maturities of long-term debt, including discharged
debt |
$ |
399.6 |
|
|
$ |
699.1 |
|
|
Current liabilities held for sale |
|
18.2 |
|
|
|
4.5 |
|
|
Other current liabilities |
|
752.4 |
|
|
|
742.0 |
|
|
Long-term debt (excluding current maturities) |
|
3,945.6 |
|
|
|
4,340.9 |
|
|
Other noncurrent liabilities |
|
1,973.5 |
|
|
|
2,034.3 |
|
|
Total equity |
|
8,035.6 |
|
|
|
7,172.8 |
|
|
Total liabilities and equity |
$ |
15,124.9 |
|
|
$ |
14,993.6 |
|
|
|
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Statements of Cash Flows |
|
(in millions) |
| |
Twelve Months Ended |
| |
December 31 |
| |
2023 |
|
2022 |
| Cash Flows from Operating
Activities: |
|
|
|
|
|
|
Consolidated net earnings |
$ |
1,169.4 |
|
|
$ |
866.8 |
|
| Adjustments to reconcile
consolidated net earnings to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
513.2 |
|
|
|
506.0 |
|
|
Stock-based compensation expense |
|
50.0 |
|
|
|
42.7 |
|
|
Net gains on divestitures, sales of assets and extinguishment of
debt |
|
(1.9 |
) |
|
|
(195.7 |
) |
|
Deferred income taxes, net |
|
(36.1 |
) |
|
|
(0.6 |
) |
|
Other items, net |
|
(16.5 |
) |
|
|
(11.7 |
) |
|
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures: |
|
|
|
|
|
|
Accounts receivable, net |
|
31.4 |
|
|
|
(12.1 |
) |
|
Inventories, net |
|
(188.7 |
) |
|
|
(131.7 |
) |
|
Accounts payable |
|
(17.0 |
) |
|
|
(31.2 |
) |
|
Other assets and liabilities, net |
|
24.6 |
|
|
|
(41.3 |
) |
| Net Cash Provided by Operating
Activities |
|
1,528.4 |
|
|
|
991.2 |
|
| |
|
|
|
|
|
| Cash Flows from Investing
Activities: |
|
|
|
|
|
|
Additions to property, plant and equipment |
|
(650.3 |
) |
|
|
(481.8 |
) |
|
Acquisitions, net of cash acquired |
|
— |
|
|
|
11.0 |
|
|
Proceeds from sale of restricted investment related to discharge of
long-term debt |
|
700.0 |
|
|
|
— |
|
|
Proceeds from divestitures and sales of assets |
|
426.5 |
|
|
|
687.1 |
|
|
Purchase of restricted investments to discharge long-term debt |
|
— |
|
|
|
(704.6 |
) |
|
Repayment of note receivable from affiliate |
|
6.0 |
|
|
|
— |
|
|
Investments in life insurance contracts, net |
|
7.4 |
|
|
|
7.5 |
|
|
Investments in limited liability company |
|
(27.0 |
) |
|
|
— |
|
|
Other investing activities, net |
|
(3.9 |
) |
|
|
(3.0 |
) |
| Net Cash Provided by (Used
for) Investing Activities |
|
458.7 |
|
|
|
(483.8 |
) |
| |
|
|
|
|
|
| Cash Flows from Financing
Activities: |
|
|
|
|
|
|
Repayments of long-term debt |
|
(700.0 |
) |
|
|
(54.5 |
) |
|
Debt issuance and extinguishment costs |
|
(0.7 |
) |
|
|
(0.7 |
) |
|
Payments on finance lease obligations |
|
(17.6 |
) |
|
|
(15.0 |
) |
|
Dividends paid |
|
(174.0 |
) |
|
|
(159.1 |
) |
|
Repurchases of common stock |
|
(150.0 |
) |
|
|
(150.0 |
) |
|
Distributions to owners of noncontrolling interest |
|
(0.5 |
) |
|
|
— |
|
|
Contributions by noncontrolling interest to join venture |
|
0.1 |
|
|
|
— |
|
|
Proceeds from exercise of stock options |
|
1.2 |
|
|
|
0.6 |
|
|
Shares withheld for employees’ income tax obligations |
|
(22.1 |
) |
|
|
(28.8 |
) |
| Net Cash Used for Financing
Activities |
|
(1,063.6 |
) |
|
|
(407.5 |
) |
| |
|
|
|
|
|
| Net Increase in Cash, Cash
Equivalents and Restricted Cash |
|
923.5 |
|
|
|
99.9 |
|
| Cash, Cash Equivalents and
Restricted Cash, beginning of year |
|
358.8 |
|
|
|
258.9 |
|
| Cash, Cash Equivalents and
Restricted Cash, end of year |
$ |
1,282.3 |
|
|
$ |
358.8 |
|
| |
|
|
|
|
|
|
|
|
MARTIN MARIETTA MATERIALS, INC. |
|
Unaudited Operational Highlights |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31, |
|
December 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Shipments (in
millions) |
|
|
|
|
|
|
|
|
| Aggregates tons |
|
|
46.6 |
|
|
|
47.7 |
|
|
|
198.8 |
|
|
|
207.7 |
|
| Cement tons |
|
|
0.9 |
|
|
|
0.9 |
|
|
|
4.0 |
|
|
|
4.2 |
|
| Ready mixed concrete |
|
|
1.5 |
|
|
|
1.5 |
|
|
|
6.5 |
|
|
|
7.4 |
|
| Asphalt tons |
|
|
2.4 |
|
|
|
2.1 |
|
|
|
9.4 |
|
|
|
9.1 |
|
| |
|
|
|
|
|
|
|
|
| Average unit sales
price by product line (including internal sales): |
|
|
|
|
|
|
|
|
| Aggregates (per ton) |
|
$ |
20.22 |
|
|
$ |
17.58 |
|
|
$ |
19.84 |
|
|
$ |
16.68 |
|
| Cement (per ton) |
|
$ |
179.14 |
|
|
$ |
153.70 |
|
|
$ |
174.27 |
|
|
$ |
142.83 |
|
| Ready mixed concrete (per
cubic yard) |
|
$ |
159.73 |
|
|
$ |
139.45 |
|
|
$ |
154.34 |
|
|
$ |
128.15 |
|
| Asphalt (per ton) |
|
$ |
66.47 |
|
|
$ |
63.59 |
|
|
$ |
65.90 |
|
|
$ |
61.77 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, divestiture and integration expenses; and the
nonrecurring gain on the divestiture of certain ready mixed
concrete operations (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 from
Continuing Operations Attributable to Martin Marietta to Adjusted
EBITDA is as follows:
| |
|
Three Months Ended |
|
|
Year Ended |
|
| |
|
December 31, |
|
|
December 31, |
|
| |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
| |
|
(in millions) |
|
|
Net earnings from continuing operations attributable to Martin
Marietta |
|
$ |
287.7 |
|
|
$ |
187.4 |
|
|
$ |
1,199.8 |
|
|
$ |
856.3 |
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
25.7 |
|
|
|
33.9 |
|
|
|
118.6 |
|
|
|
155.4 |
|
|
Income tax expense for controlling interests |
|
|
55.0 |
|
|
|
45.5 |
|
|
|
292.3 |
|
|
|
234.8 |
|
|
Depreciation, depletion and amortization expense and noncash
earnings/loss from nonconsolidated equity affiliates |
|
|
126.6 |
|
|
|
121.9 |
|
|
|
504.8 |
|
|
|
496.6 |
|
|
Acquisition, divestiture and integration expenses |
|
|
7.6 |
|
|
|
3.0 |
|
|
|
12.2 |
|
|
|
9.1 |
|
|
Nonrecurring gain on divestiture |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(151.9 |
) |
| Adjusted EBITDA |
|
$ |
502.6 |
|
|
$ |
391.7 |
|
|
$ |
2,127.7 |
|
|
$ |
1,600.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A Reconciliation of the GAAP Measure to
2024 Adjusted EBITDA Guidance Range is as follows:
| |
|
Low Point of Range |
|
High Point of Range |
| |
|
(Dollars in Millions) |
|
|
Net earnings from continuing operations attributable to Martin
Marietta |
|
$ |
1,205.0 |
|
|
$ |
1,385.0 |
|
| Add back: |
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
55.0 |
|
|
|
65.0 |
|
|
Income tax expense for controlling interests |
|
|
360.0 |
|
|
|
350.0 |
|
|
Depreciation, depletion and amortization expense
and earnings/loss from nonconsolidated equity affiliates |
|
|
520.0 |
|
|
|
540.0 |
|
| Adjusted EBITDA |
|
$ |
2,140.0 |
|
|
$ |
2,340.0 |
|
| |
|
|
|
|
|
|
|
|
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 |
| |
|
December 31, |
| |
|
2023 |
|
2022 |
| |
|
|
|
|
|
|
Aggregates: |
|
|
|
|
|
|
Reported average selling price |
|
$ |
20.22 |
|
|
$ |
17.58 |
|
| Adjustment for impact of
product, geographic and other mix |
|
|
(0.12 |
) |
|
|
| Mix-adjusted average selling
price |
|
$ |
20.10 |
|
|
|
| |
|
|
|
|
|
| Reported average selling price
variance |
|
|
15.0 |
% |
|
|
| Mix-adjusted ASP variance |
|
|
14.3 |
% |
|
|
| |
|
|
|
|
|
| Cement - Continuing
Operations: |
|
|
|
|
|
| Reported average selling
price |
|
$ |
179.14 |
|
|
$ |
153.70 |
|
| Adjustment for impact of
product, geographic and other mix |
|
|
(1.07 |
) |
|
|
| Mix-adjusted average selling
price |
|
$ |
178.07 |
|
|
|
| |
|
|
|
|
|
| Reported average selling price
variance |
|
|
16.6 |
% |
|
|
| Mix-adjusted ASP variance |
|
|
15.9 |
% |
|
|
| |
|
|
|
|
|
|
Martin Marietta Materials (NYSE:MLM)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Martin Marietta Materials (NYSE:MLM)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024
