Heritage Aggregates Business Operating Margin Expands 150 Basis
Points Specialty Products Posts Record Second-Quarter Net Sales
RALEIGH, N.C. -- (Business Wire)
Martin Marietta Materials, Inc. (NYSE:MLM) today announced results for
the second quarter and six months ended June 30, 2012.
Ward Nye, President and CEO of Martin Marietta Materials, stated, “Our
second-quarter results once again reflect the powerful combination of
increases in shipment volume and average selling prices in our heritage
aggregates product line, which led to a 150-basis-point improvement in
our heritage aggregates business operating margin (excluding freight and
delivery revenues). Underlying these increases are continuing
indications of recovery in certain of our markets, predominantly in the
western United States. In particular, heritage volume growth in Texas
was driven by increased shipments to both the energy sector and the
residential end-use market. We were also pleased with the strong results
reported by our Specialty Products business, which established a new
second-quarter record for net sales. Looking ahead, the positive
momentum generated in the first half of the year, together with the
recent passage of a new federal highway bill and regionalized
improvement in home building, have bolstered our optimism for
construction activity.”
NOTABLE ITEMS (ALL COMPARISONS, UNLESS NOTED, ARE WITH THE PRIOR-YEAR
SECOND QUARTER)
-
Adjusted earnings per diluted share of $0.92, excluding a $0.12 per
diluted share charge for business development expenses; including
these charges, earnings per diluted share was $0.80 compared with $0.78
-
Consolidated net sales of $491.2 million compared with $409.6 million
-
Heritage aggregates product line volume increased 2.8%
-
Heritage aggregates product line pricing increased 2.4%
-
Specialty Products net sales of $50.4 million and earnings from
operations of $17.5 million
-
Consolidated selling, general and administrative expenses (“SG&A”)
decreased 40 basis points as a percentage of net sales
-
Consolidated earnings from operations of $68.5 million, excluding $9.2
million of business development costs, compared with $64.7 million
MANAGEMENT COMMENTARY (ALL COMPARISONS, UNLESS NOTED, ARE WITH THE
PRIOR-YEAR SECOND QUARTER)
Nye continued, “For the quarter, heritage aggregates product line
shipments increased 2.8% over the prior-year period. This growth was led
by a 7.6% increase in our West Group, with heritage volumes particularly
strong in Texas, driven by robust construction activity, and in our
Midwest Division, particularly Iowa, where the mild winter permitted an
early start to the construction season. Our Mideast Group reported
heritage volume growth of 2.9%, with heavy highway projects in the
Indiana and Ohio markets offsetting declines in our North Carolina
markets where construction project delays have shifted work originally
planned for the second quarter into the second half of the year. Our
Southeast Group experienced a 10.1% decline in heritage aggregates
product line shipments, resulting from economic growth in the region
lagging national trends, principally due to weak job growth and
continued high foreclosure rates.
“Notably, heritage aggregates product line shipments increased 8% in
April and May over the prior-year two-month period. In that volume
environment, we achieved an incremental gross margin (excluding freight
and delivery revenues) consistent with our expectations. In June,
however, shipments declined 5.5%, reflecting previously mentioned
project delays, coupled with uncertainty in the current economic
environment. As expected, this erratic volume pattern, together with
planned inventory reduction, diluted the incremental gross margin gains
from the first two months of the quarter. However, we are pleased with
the 150-basis-point expansion of operating margin (excluding freight and
delivery revenues) in our heritage aggregates business for the quarter.
“Heritage shipments in the infrastructure end-use market, which
represents more than half of our Aggregates business, increased 3% for
the quarter. We were gratified to see the Moving Ahead for Progress
in the 21st Century Act, or MAP-21, signed
into law earlier in the month. MAP-21 is a two-year federal surface
transportation bill intended to expedite project approvals and limit
spending for programs outside of core transportation needs. The bill
provides highway expenditures at current levels, $40 billion per year,
with modest increases to reflect projected inflation and reform
provisions. The funding provided by this multi-year bill brings a degree
of fiscal certainty to those states, counties and municipalities that
were subjected to a series of short-term continuing Federal resolutions
since 2009 and hesitant to initiate needed infrastructure projects.
While the impact of MAP-21 is not expected to generate meaningful
construction activity in 2012, we fully anticipate that our shipments
will increase over the next several years, with more clarity into the
magnitude of that increase as we move into late summer/early fall state
Department of Transportation project lettings.
“Shipments to our heritage nonresidential end-use market increased 8%
over the prior-year quarter, with growth attributable to heavy
industrial activity, particularly in the energy sector. Our heritage
residential end-use market continues to recover from the depressed
levels experienced in recent years. For the quarter, heritage shipments
to this market rose 21%, reflecting the increase in national
year-to-date housing starts. Our heritage ChemRock/Rail end-use market
declined 19% versus the prior-year quarter. The reduction is principally
due to the comparison with an unusually strong quarter for ballast
shipments in 2011, as well as project delays related to track
maintenance schedules in the current year. We expect to recover certain
of these shipments in the second half of the year.
“We continue to see positive construction trends in the Denver, Colorado
market, which we entered in December 2011. The rate of growth in highway
contract awards in Colorado ranks among the highest in the country, and,
importantly, construction-related employment is growing at twice the
national average. Nonresidential construction activity also continues to
improve with commercial real estate realizing increased lease rates and
decreasing vacancies. Year-to-date housing permits in the state
increased nearly 70%, outpacing the national average, while
single-family home sales have increased significantly over the
prior-year period. Despite the later start of the construction season
due to the increased exposure to winter weather, our Colorado operations
once again exceeded expectations and had breakeven profitability for the
quarter.
“Our heritage aggregates product line average selling price grew 2.4%
over the prior-year quarter. Our West Group had the highest rate of
increase, 5.4%, driven by shipments to the energy sector. These
shipments are primarily from sales yards, which have higher average
selling prices than producing quarries due to internal freight costs.
Our Southeast Group reported a 4.7% heritage pricing increase despite a
volume decline, with particular strength at our Bahamas facility, which
provides aggregates for a significant nonresidential project. The
average selling price for our Mideast Group increased 1.5%, excluding a
240-basis-point reduction in pricing due to geographic mix.
“The Specialty Products business continues to experience strong demand
in both the chemicals and dolomitic lime product lines. For the quarter,
net sales of $50.4 million increased 2% and established a new
second-quarter record. Earnings from operations of $17.5 million, or
34.6% of net sales, compared with earnings from operations of $19.3
million in the second quarter of 2011, reflect higher costs incurred for
raw materials, contract services and repairs.
“Planned inventory reductions in our heritage aggregates product line
drove a 1.3% increase in cost per ton during the quarter. Contrary to a
multi-quarter trend of increases, energy costs were essentially flat as
we paid an average of $3.03 per gallon of diesel fuel compared with
$3.08 in the prior-year quarter. Cumulatively, direct production costs
for our heritage aggregates product line increased slightly. Our
consolidated gross margin (excluding freight and delivery revenues) for
the quarter was 20.8%, a 300-basis-point decline compared with the
prior-year quarter, primarily attributable to inventory control measures.
“Consolidated SG&A as a percentage of net sales declined 40 basis
points. On an absolute basis, SG&A increased $4.3 million, primarily
attributable to overhead incurred at our Denver operations and costs
related to an information systems upgrade expected to be completed by
the fall of 2013.
LIQUIDITY AND CAPITAL RESOURCES
“Excluding the impact of business development expenses, cash provided by
operating activities for the six months ended June 30, 2012, was $52.6
million compared with $56.7 million for the same period in 2011. During
the six months ended June 30, 2012, we invested $66.3 million of capital
into our business. This amount reflects $22 million for the continued
construction of a $53 million dolomitic lime kiln at our Specialty
Products business’ Woodville, Ohio facility. Once completed, the new
kiln is expected to generate annual net sales ranging from $22 million
to $25 million. This project is expected to be substantially completed
during the fourth quarter. Days sales outstanding was 43 days, an
improvement compared with 2011.
“At June 30, 2012, our ratio of consolidated debt to consolidated
EBITDA, as defined, for the trailing twelve months was 3.63 times. The
maximum ratio per our covenant is 3.95 times at June 30, 2012, stepping
down to 3.75 times at September 30, 2012, before returning to the
pre-amendment maximum of 3.50 times at December 31, 2012.
2012 OUTLOOK
“With the challenges of 2011 and the first half of 2012 behind us, we
remain optimistic for our second half performance and our outlook for
2013. The passage of MAP-21, which is essentially a final three-month
continuing resolution through September 30, 2012, followed by a two-year
federal highway bill, provides us with a solid foundation for
infrastructure construction. Since, as previously stated, we do not
expect a notable volume impact from this legislation before 2013, we
expect our infrastructure end-use market volume for the year to range
from flat to down slightly. We anticipate double-digit volume growth in
our nonresidential end-use market, driven primarily by increased energy
shipments, although some energy-sector activity will continue to be
affected by natural gas prices, the timing of lease commitments for oil
and natural gas companies, geographic transitions and weather
conditions. We expect the rate of improvement in our residential end-use
market to accelerate over the rate of improvement in 2011. Our
ChemRock/Rail shipments should range from flat to down slightly.
“As such, we anticipate heritage aggregates product line shipments for
the full year to increase 4% to 5% and pricing to increase 2% to 4%. A
variety of factors beyond our direct control may exert pressure on our
volumes and our forecasted pricing increase is not expected to be
uniform across the company. Heritage aggregates product line direct
production costs per ton are expected to be flat compared with 2011, in
spite of our expectation to reduce production as part of controlling our
inventory levels.
“As previously communicated, the platform acquisition of our Denver,
Colorado-based business is consistent with one of our core long-term
strategies, which is to be in attractive growth areas with a leading
market position – thereby permitting greater operational efficiencies,
customer service and growth opportunities. Economic forecasts
consistently show Denver's population growing at a faster-than-average
pace, with commensurate jobs growth, supporting our optimism for
increased construction activity. Overall, as we integrate the Denver
operations into our disciplined cost structure, we estimate that the
asset exchange will be neutral to our full-year EBITDA. We expect that
this acquisition will be accretive in 2013.
“Earnings for the Specialty Products segment should be approximately $68
million to $70 million. Steel utilization and natural gas prices are two
key drivers for this segment.
“SG&A expenses, excluding the incremental expense related to the
acquired operations in Denver and costs related to our information
systems upgrade, are expected to decline slightly. We expect improvement
in SG&A expenses related to the Denver operations as we complete their
integration. Interest expense should remain relatively flat compared
with 2011. Our effective tax rate is expected to approximate 23%,
excluding discrete events. Capital expenditures are forecast at $155
million, which includes the remainder of the $53 million Specialty
Products kiln project.”
RISKS TO OUTLOOK
The full-year estimated outlook includes management’s assessment of the
likelihood of certain risk factors that will affect performance. The
most significant risk to 2012 performance will be the United States
economy and its impact on construction activity. Other risks related to
the Corporation’s future performance include, but are not limited to:
both price and volume and include a recurrence of widespread decline in
aggregates volume negatively affecting aggregates price; the
termination, capping and/or reduction of the federal and/or state
gasoline tax(es) or other revenue related to infrastructure
construction; a significant change in the funding patterns for
traditional federal, state and/or local infrastructure projects; a
decline in nonresidential construction, a decline in drilling activity
resulting from certain regulatory or economic factors, a slowdown in the
residential construction recovery, or some combination thereof; and a
reduction in ChemRock/Rail shipments resulting from declining coal
traffic on the railroads. Further, increased highway construction
funding pressures resulting from either federal or state issues can
affect profitability. Currently, nearly all states have general fund
budget pressures driven by lower tax revenues. If these pressures
negatively affect transportation budgets more than in the past,
construction spending could be reduced. North Carolina and Texas, states
disproportionately affecting our revenue and profitability, are among
the states experiencing these fiscal pressures, although recent
statistics indicate that transportation budgets and tax revenues are
increasing.
The Corporation’s principal business serves customers in construction
aggregates-related markets. This concentration could increase the risk
of potential losses on customer receivables; however, payment bonds
normally posted on public projects, together with lien rights on private
projects, help to mitigate the risk of uncollectible receivables. The
level of aggregates demand in the Corporation’s end-use markets,
production levels and the management of production costs will affect the
operating leverage of the Aggregates business and, therefore,
profitability. Production costs in the Aggregates business are also
sensitive to energy prices, both directly and indirectly. Diesel fuel
and other consumables change production costs directly through
consumption or indirectly by increased energy-related input costs, such
as, steel, explosives, tires and conveyor belts. Fluctuating diesel fuel
pricing also affects transportation costs, primarily through fuel
surcharges in the Corporation’s long-haul distribution network. The
Specialty Products business is sensitive to changes in domestic steel
capacity utilization and the absolute price and fluctuations in the cost
of natural gas. However, due to recent technology developments allowing
the harvesting of abundant natural gas supplies in the U.S., natural gas
prices have stabilized.
Transportation in the Corporation’s long-haul network, particularly rail
cars and locomotive power to move trains, affects our ability to
efficiently transport material into certain markets, most notably Texas,
Florida and the Gulf Coast. The availability of trucks to transport our
product, particularly in markets experiencing increased demand due to
energy sector activity, is also a risk. The Aggregates business is also
subject to weather-related risks that can significantly affect
production schedules and profitability. The first and fourth quarters
are most adversely affected by winter weather, and the acquisitions of
operations in the Denver, Colorado, market increased the Corporation’s
exposure to winter weather. Hurricane activity in the Atlantic Ocean and
Gulf Coast generally is most active during the third and fourth quarters.
Risks to the full-year outlook include shipment declines as a result of
economic events beyond the Corporation’s control. In addition to the
impact on nonresidential and residential construction, the Corporation
is exposed to risk in its estimated outlook from credit markets and the
availability of and interest cost related to its debt.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Net sales for the second quarter were $491.2 million, a 19.9% increase
versus the $409.6 million recorded in 2011. Earnings from operations for
the second quarter of 2012 were $59.3 million compared with $64.7
million in 2011. Net earnings attributable to Martin Marietta Materials
were $36.8 million, or $0.80 per diluted share, versus 2011
second-quarter net earnings attributable to Martin Marietta Materials of
$35.8 million, or $0.78 per diluted share.
Net sales for the first six months of 2012 were $841.8 million compared
with $700.2 million for the year-earlier period. Year-to-date earnings
from operations were $23.9 million versus $60.3 million in 2011. For the
six-month period ended June 30, 2012, net earnings attributable to
Martin Marietta Materials were breakeven compared with net earnings
attributable to Martin Marietta Materials in the first six months of
2011 of $18.4 million, or $0.39 per diluted share.
BUSINESS FINANCIAL HIGHLIGHTS
Net sales for the Aggregates business during the second quarter of 2012
were $440.8 million compared with 2011 second-quarter sales of $360.0
million. Aggregates volume at heritage locations was up 2.8%, while
pricing increased 2.4%. Earnings from operations for the quarter were
$55.6 million in 2012 versus $48.8 million in the year-earlier period.
Year-to-date 2012 net sales for the Aggregates business were
$739.6 million versus $601.5 million in 2011. Earnings from operations
on a year-to-date basis were $32.1 million in 2012 compared with
$34.0 million in 2011. For the six-month period ended June 30, 2012,
heritage aggregates volume increased 5.5%, while pricing increased 2.6%.
Specialty Products’ second-quarter net sales of $50.4 million increased
1.7% from prior-year net sales of $49.6 million. Earnings from
operations for the second quarter were $17.5 million compared with
$19.3 million in the year-earlier period. For the first six months of
2012, net sales were $102.2 million and earnings from operations were
$35.7 million compared with net sales of $98.7 million and earnings from
operations of $34.4 million for the first six months of 2011.
CONFERENCE CALL INFORMATION
The Company will host an online web simulcast of its second quarter 2012
earnings conference call later today (July 31, 2012). The live broadcast
of the Martin Marietta Materials, Inc. conference call will begin at
2 p.m. Eastern Time today. 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 Corporation’s website.
For those investors without online web access, the conference call may
also be accessed by calling (970) 315-0423, confirmation number 11929553.
Martin Marietta Materials, Inc. is the nation’s second largest producer
of construction aggregates and a producer of magnesia-based chemicals
and dolomitic lime. For more information about Martin Marietta
Materials, Inc., refer to the Corporation’s website at www.martinmarietta.com.
If you are interested in Martin Marietta Materials, Inc. stock,
management recommends that, at a minimum, you read the Corporation’s
current annual report and Forms 10-K, 10-Q and 8-K reports to the SEC
over the past year.The Corporation’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 Corporation’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 Corporation’s Corporate Secretary, who
will provide copies of such reports.
Investors are cautioned that all statements in this press release
that relate to the future involve risks and uncertainties, and are based
on assumptions that the Corporation believes in good faith are
reasonable but which may be materially different from actual results.
Forward-looking statements give the investor our expectations or
forecasts of future events.You can identify these statements by
the fact that they do not relate only historical or current facts.They
may use words such as "anticipate," "expect," "should be," "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.
Factors that the Corporation currently believes could cause actual
results to differ materially from the forward-looking statements in this
press releaseinclude, but are not limited to, the performance of
the United States economy; widespread decline in aggregates pricing;the
discontinuance of the federal gasoline tax or other revenue related to
infrastructure construction; the level and timing of federal and state
transportation funding, including federal stimulus projects and most
particularly in North Carolina, one of the Corporation’s largest and
most profitable states, and Texas, Iowa, Georgia and South Carolina,
which when coupled with North Carolina, represented 57% of 2011 net
sales of the Aggregates business; 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 Corporation serves; a decline in the commercial component of
the nonresidential construction market, notably office and retail space;
a slowdown in residential construction recovery; unfavorable weather
conditions, particularly Atlantic Ocean 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 Corporation; the
volatility of fuel costs, particularly diesel fuel, and the impact on
the cost of other consumables, namely steel, explosives, tires and
conveyor belts; continued increases in the cost of other repair and
supply parts; transportation availability, notably the availability of
railcars and locomotive power to move trains to supply the Corporation’s
Texas, Florida and Gulf Coast markets; increased transportation costs,
including increases from higher passed-through energy and other costs to
comply with tightening regulations as well as higher volumes of rail and
water shipments; availability and cost of construction equipment in the
United States; weakening in the steel industry markets served by the
Corporation’s dolomitic lime products; inflation and its effect on both
production and interest costs; ability to successfully integrate
acquisitions quickly and in a cost-effective manner and achieve
anticipated profitability to maintain compliance with the Corporation’s
leverage ratio debt covenant; changes in tax laws, the interpretation of
such laws and/or administrative practices that would increase the
Corporation’s tax rate;violation of the Corporation’s debt
covenant if price and/or volumes return to previous levels of
instability; downward pressure on the Corporation’s common stock price
and its impact on goodwill impairment evaluations; and other risk
factors listed from time to time found in the Corporation’s filings with
the Securities and Exchange Commission.Other factors besides
those listed here may also adversely affect the Corporation, and may be
material to the Corporation.The Corporation assumes no
obligation to update any such forward-looking statements.
|
|
| | | |
| |
| |
| |
| |
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Statements of Earnings |
(In millions, except per share amounts)
|
| | | | | | | | | | | | |
|
| | | | | | | Three Months Ended | | Six Months Ended |
| | | | | | | June 30, | | June 30, |
| | | | | | | 2012 | | 2011 | | 2012 | | 2011 |
Net sales
| | | |
$
|
491.2
| | |
$
|
409.6
| | |
$
|
841.8
| | |
$
|
700.2
| |
Freight and delivery revenues
| | |
|
54.5
|
| |
|
52.8
|
| |
|
97.9
|
| |
|
90.1
|
|
Total revenues
| | |
|
545.7
|
| |
|
462.4
|
| |
|
939.7
|
| |
|
790.3
|
|
| | | | | | | | | | | | |
|
Cost of sales
| | | | |
389.1
| | | |
312.1
| | | |
715.9
| | | |
580.0
| |
Freight and delivery costs
| | |
|
54.5
|
| |
|
52.8
|
| |
|
97.9
|
| |
|
90.1
|
|
Total cost of revenues
| | |
|
443.6
|
| |
|
364.9
|
| |
|
813.8
|
| |
|
670.1
|
|
Gross profit
| | | | |
102.1
| | | |
97.5
| | | |
125.9
| | | |
120.2
| |
| | | | | | | | | | | | |
|
Selling, general and administrative expenses
| | |
35.3
| | | |
31.0
| | | |
68.3
| | | |
59.6
| |
Business development costs
| | | |
9.2
| | | |
1.7
| | | |
35.1
| | | |
2.7
| |
Other operating (income) and expenses, net
| |
|
(1.7
|
)
| |
|
0.1
|
| |
|
(1.4
|
)
| |
|
(2.4
|
)
|
Earnings from operations
| | | |
59.3
| | | |
64.7
| | | |
23.9
| | | |
60.3
| |
| | | | | | | | | | | | |
|
Interest expense
| | | |
13.3
| | | |
13.7
| | | |
26.7
| | | |
31.9
| |
Other nonoperating (income) and expenses, net
| |
|
(0.1
|
)
| |
|
0.4
|
| |
|
(1.9
|
)
| |
|
0.1
|
|
Earnings from (loss on) continuing operations before taxes on income
| | |
46.1
| | | |
50.6
| | | |
(0.9
|
)
| | |
28.3
| |
Income tax expense (benefit)
| | |
|
8.6
|
| |
|
13.8
|
| |
|
(1.3
|
)
| |
|
7.7
|
|
Earnings from continuing operations
| | |
37.5
| | | |
36.8
| | | |
0.4
| | | |
20.6
| |
| | | | | | | | | | | | |
|
Gain (loss) on discontinued operations, net of related tax expense
(benefit) of $0.0, $(0.7), $(0.1) and $(1.0), respectively
| |
|
0.3
|
| |
|
(0.9
|
)
| |
|
(0.3
|
)
| |
|
(2.4
|
)
|
| | | | | | | | | | | | |
|
Consolidated net earnings
| | | |
37.8
| | | |
35.9
| | | |
0.1
| | | |
18.2
| |
Less: Net earnings (loss) attributable to noncontrolling interests
| |
|
1.0
|
| |
|
0.1
|
| |
|
0.1
|
| |
|
(0.2
|
)
|
| | | | | | | | | | | | |
|
Net earnings attributable to Martin Marietta Materials, Inc.
| |
$
|
36.8
|
| |
$
|
35.8
|
| |
$
|
-
|
| |
$
|
18.4
|
|
| | | | | | | | | | | | |
|
Net earnings (loss) per common share:
| | | | | | | | |
Basic from continuing operations attributable to common shareholders
| |
$
|
0.79
| | |
$
|
0.80
| | |
$
|
-
| | |
$
|
0.45
| |
Discontinued operations attributable to common shareholders
| |
|
0.01
|
| |
|
(0.02
|
)
| |
|
-
|
| |
|
(0.05
|
)
|
| | | | | | |
$
|
0.80
|
| |
$
|
0.78
|
| |
$
|
-
|
| |
$
|
0.40
|
|
| | | | | | | | | | | | |
|
Diluted from continuing operations attributable to common
shareholders
| |
$
|
0.79
| | |
$
|
0.80
| | |
$
|
-
| | |
$
|
0.44
| |
Discontinued operations attributable to common shareholders
| |
|
0.01
|
| |
|
(0.02
|
)
| |
|
-
|
| |
|
(0.05
|
)
|
| | | | | | |
$
|
0.80
|
| |
$
|
0.78
|
| |
$
|
-
|
| |
$
|
0.39
|
|
| | | | | | | | | | | | |
|
Dividends per common share
| | |
$
|
0.40
|
| |
$
|
0.40
|
| |
$
|
0.80
|
| |
$
|
0.80
|
|
| | | | | | | | | | | | |
|
Average number of common shares outstanding:
| | | | | | | | |
Basic
| | | |
|
45.8
|
| |
|
45.6
|
| |
|
45.8
|
| |
|
45.6
|
|
Diluted
| | | |
|
45.9
|
| |
|
45.8
|
| |
|
45.8
|
| |
|
45.8
|
|
| | | | | | | | | | |
|
|
|
| |
|
|
| |
| |
| |
| |
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Financial Highlights |
(In millions)
|
| | | | | | | | | | | | |
|
| | | | | | | Three Months Ended | | Six Months Ended |
| | | | | | | June 30, | | June 30, |
| | | | | | | 2012 | | 2011 | | 2012 | | 2011 |
Net sales:
| | | | | | | | | | |
Aggregates Business:
| | | | | | | | | | |
Mideast Group
| | | |
$
|
109.7
| | |
$
|
107.3
| | |
$
|
186.8
| | |
$
|
178.7
| |
Southeast Group
| | | | |
73.8
| | | |
78.0
| | | |
141.3
| | | |
140.7
| |
West Group
| | | |
|
257.3
|
| |
|
174.7
|
| |
|
411.5
|
| |
|
282.1
|
|
Total Aggregates Business
| | | | |
440.8
| | | |
360.0
| | | |
739.6
| | | |
601.5
| |
Specialty Products
| | | |
|
50.4
|
| |
|
49.6
|
| |
|
102.2
|
| |
|
98.7
|
|
Total
| | | |
$
|
491.2
|
| |
$
|
409.6
|
| |
$
|
841.8
|
| |
$
|
700.2
|
|
| | | | | | | | | | | | |
|
Gross profit:
| | | | | | | | | | |
Aggregates Business:
| | | | | | | | | | |
Mideast Group
| | | |
$
|
32.4
| | |
$
|
32.0
| | |
$
|
40.3
| | |
$
|
40.3
| |
Southeast Group
| | | | |
3.7
| | | |
7.4
| | | |
7.1
| | | |
9.1
| |
West Group
| | | |
|
45.8
|
| |
|
35.9
|
| |
|
41.1
|
| |
|
33.3
|
|
Total Aggregates Business
| | | | |
81.9
| | | |
75.3
| | | |
88.5
| | | |
82.7
| |
Specialty Products
| | | | |
19.9
| | | |
21.4
| | | |
39.3
| | | |
39.0
| |
Corporate
| | | |
|
0.3
|
| |
|
0.8
|
| |
|
(1.9
|
)
| |
|
(1.5
|
)
|
Total
| | | |
$
|
102.1
|
| |
$
|
97.5
|
| |
$
|
125.9
|
| |
$
|
120.2
|
|
| | | | | | | | | | | | |
|
Selling, general and administrative expenses:
| | | | | | | | | | |
Aggregates Business:
| | | | | | | | | | |
Mideast Group
| | | |
$
|
9.6
| | |
$
|
9.4
| | |
$
|
19.1
| | |
$
|
18.5
| |
Southeast Group
| | | | |
5.7
| | | |
6.8
| | | |
11.7
| | | |
13.6
| |
West Group
| | | |
|
14.0
|
| |
|
10.7
|
| |
|
27.8
|
| |
|
21.3
|
|
Total Aggregates Business
| | | | |
29.3
| | | |
26.9
| | | |
58.6
| | | |
53.4
| |
Specialty Products
| | | | |
2.2
| | | |
2.2
| | | |
4.7
| | | |
4.7
| |
Corporate
| | | |
|
3.8
|
| |
|
1.9
|
| |
|
5.0
|
| |
|
1.5
|
|
Total
| | | |
$
|
35.3
|
| |
$
|
31.0
|
| |
$
|
68.3
|
| |
$
|
59.6
|
|
| | | | | | | | | | | | |
|
Earnings (Loss) from operations:
| | | | | | | | | | |
Aggregates Business:
| | | | | | | | | | |
Mideast Group
| | | |
$
|
23.8
| | |
$
|
23.1
| | |
$
|
22.9
| | |
$
|
25.1
| |
Southeast Group
| | | | |
(2.3
|
)
| | |
(0.6
|
)
| | |
(6.0
|
)
| | |
(4.8
|
)
|
West Group
| | | |
|
34.1
|
| |
|
26.3
|
| |
|
15.2
|
| |
|
13.7
|
|
Total Aggregates Business
| | | | |
55.6
| | | |
48.8
| | | |
32.1
| | | |
34.0
| |
Specialty Products
| | | | |
17.5
| | | |
19.3
| | | |
35.7
| | | |
34.4
| |
Corporate
| | | |
|
(13.8
|
)
| |
|
(3.4
|
)
| |
|
(43.9
|
)
| |
|
(8.1
|
)
|
Total
| | | |
$
|
59.3
|
| |
$
|
64.7
|
| |
$
|
23.9
|
| |
$
|
60.3
|
|
| | | | | | | | | | | | |
|
Net sales by product line:
| | | | | | | | | | |
Aggregates Business:
| | | | | | | | | | |
Aggregates
| | | |
$
|
356.9
| | |
$
|
331.3
| | |
$
|
614.3
| | |
$
|
554.3
| |
Asphalt
| | | | |
20.2
| | | |
13.9
| | | |
32.7
| | | |
24.9
| |
Ready Mixed Concrete
| | | | |
29.3
| | | |
7.6
| | | |
49.5
| | | |
12.9
| |
Road Paving
| | | |
|
34.4
|
| |
|
7.2
|
| |
|
43.1
|
| |
|
9.4
|
|
Total Aggregates Business
| | | |
|
440.8
|
| |
|
360.0
|
| |
|
739.6
|
| |
|
601.5
|
|
Specialty Products Business:
| | | | | | | | | | |
Magnesia-Based Chemicals
| | | | |
35.5
| | | |
34.1
| | | |
71.9
| | | |
69.3
| |
Dolomitic Lime
| | | | |
14.4
| | | |
15.1
| | | |
29.4
| | | |
28.9
| |
Other
| | | |
|
0.5
|
| |
|
0.4
|
| |
|
0.9
|
| |
|
0.5
|
|
Total Specialty Products Business
| | | |
|
50.4
|
| |
|
49.6
|
| |
|
102.2
|
| |
|
98.7
|
|
Total
| | | |
$
|
491.2
|
| |
$
|
409.6
|
| |
$
|
841.8
|
| |
$
|
700.2
|
|
| | | | | | | | | | | | |
|
Depreciation
| | | |
$
|
41.7
| | |
$
|
41.5
| | |
$
|
84.0
| | |
$
|
83.5
| |
Depletion
| | | | |
1.3
| | | |
0.9
| | | |
1.9
| | | |
1.4
| |
Amortization
| | | |
|
1.3
|
| |
|
0.8
|
| |
|
2.8
|
| |
|
1.6
|
|
| | | | | | |
$
|
44.3
|
| |
$
|
43.2
|
| |
$
|
88.7
|
| |
$
|
86.5
|
|
| | | | | | | | | | | | |
|
|
|
| | |
| |
| |
| |
MARTIN MARIETTA MATERIALS, INC. |
Balance Sheet Data |
(In millions)
|
| | | | | | | | | |
|
| | | | | | June 30, | | December 31, | | June 30, |
| | | | | | 2012 | | 2011 | | 2011 |
| | | | | | (Unaudited) | | (Audited) | | (Unaudited) |
ASSETS
| | | | | | | |
|
Cash and cash equivalents
| | |
$
|
41.4
| |
$
|
26.0
| |
$
|
26.1
|
|
Accounts receivable, net
| | | |
275.4
| | |
203.7
| | |
269.4
|
|
Inventories, net
| | | |
332.0
| | |
322.6
| | |
336.4
|
|
Other current assets
| | | |
111.5
| | |
105.5
| | |
113.7
|
|
Property, plant and equipment, net
| | | |
1,753.8
| | |
1,774.3
| | |
1,697.8
|
|
Intangible assets, net
| | | |
671.1
| | |
670.8
| | |
657.4
|
|
Other noncurrent assets
| | |
|
41.3
| |
|
44.9
| |
|
48.1
|
Total assets
| | |
$
|
3,226.5
| |
$
|
3,147.8
| |
$
|
3,148.9
|
| | | | | | | | | |
|
| | | | | | | | | |
|
LIABILITIES AND EQUITY
| | | | | | | |
|
Current maturities of long-term debt and short-term facilities
| |
$
|
7.2
| |
$
|
7.2
| |
$
|
107.0
|
|
Other current liabilities
| | | |
191.9
| | |
166.5
| | |
155.9
|
|
Long-term debt (excluding current maturities)
| | |
1,137.1
| | |
1,052.9
| | |
979.0
|
|
Other noncurrent liabilities
| | | |
473.5
| | |
472.3
| | |
456.4
|
|
Total equity
| | |
|
1,416.8
| |
|
1,448.9
| |
|
1,450.6
|
Total liabilities and equity
| | |
$
|
3,226.5
| |
$
|
3,147.8
| |
$
|
3,148.9
|
| | | | | | | | |
|
|
|
|
| | |
| |
| |
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Statements of Cash Flows |
(In millions)
|
| | | | | | | Six Months Ended |
| | | | | | | June 30, |
| | | | | | | 2012 | | 2011 |
Operating activities:
| | | | | |
Consolidated net earnings
| | |
$
|
0.1
| | |
$
|
18.2
| |
Adjustments to reconcile consolidated net earnings to net cash
provided by operating activities:
| | | | |
Depreciation, depletion and amortization
| | |
88.7
| | | |
86.5
| |
Stock-based compensation expense
| | | |
4.6
| | | |
6.4
| |
Gains on divestitures and sales of assets
| | |
(0.8
|
)
| | |
(3.4
|
)
|
Deferred income taxes
| | | |
6.8
| | | |
9.2
| |
Other items, net
| | | |
1.4
| | | |
1.0
| |
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures:
| | | | |
Accounts receivable, net
| | | |
(71.7
|
)
| | |
(87.6
|
)
|
Inventories, net
| | | |
(9.4
|
)
| | |
(3.1
|
)
|
Accounts payable
| | | |
21.0
| | | |
25.1
| |
Other assets and liabilities, net
| | |
|
(13.0
|
)
| |
|
4.4
|
|
| | | | | | | | |
|
Net cash provided by operating activities
| | |
|
27.7
|
| |
|
56.7
|
|
| | | | | | | | |
|
Investing activities:
| | | | | |
Additions to property, plant and equipment
| | |
(66.3
|
)
| | |
(58.7
|
)
|
Acquisitions, net
| | | |
(0.1
|
)
| | |
(49.9
|
)
|
Proceeds from divestitures and sales of assets
| |
|
4.0
|
| |
|
5.2
|
|
| | | | | | | | |
|
Net cash used for investing activities
| | |
|
(62.4
|
)
| |
|
(103.4
|
)
|
| | | | | | | | |
|
Financing activities:
| | | | | |
Borrowings of long-term debt
| | | |
171.0
| | | |
460.0
| |
Repayments of long-term debt
| | | |
(87.1
|
)
| | |
(405.0
|
)
|
Change in bank overdraft
| | | |
3.4
| | | |
(2.1
|
)
|
Dividends paid
| | | |
(36.9
|
)
| | |
(36.8
|
)
|
Debt issue costs
| | | |
(0.3
|
)
| | |
(3.3
|
)
|
Issuances of common stock
| | | |
0.8
| | | |
1.1
| |
Purchase of remaining interest in existing subsidiary
| | |
-
| | | |
(10.4
|
)
|
Distributions to owners of noncontrolling interests
| |
|
(0.8
|
)
| |
|
(1.0
|
)
|
| | | | | | | | |
|
Net cash provided by financing activities
| | |
|
50.1
|
| |
|
2.5
|
|
| | | | | | | | |
|
Net increase (decrease) in cash and cash equivalents
| | |
15.4
| | | |
(44.2
|
)
|
Cash and cash equivalents, beginning of period
| |
|
26.0
|
| |
|
70.3
|
|
| | | | | | | | |
|
Cash and cash equivalents, end of period
| | |
$
|
41.4
|
| |
$
|
26.1
|
|
| | | | |
|
|
|
| | | |
| |
| |
| |
| |
MARTIN MARIETTA MATERIALS, INC. |
Unaudited Operational Highlights |
| | | | | | | | | | | | |
|
| | | | | | | Three Months Ended | | Six Months Ended |
| | | | | | | June 30, 2012 | | June 30, 2012 |
| | | | | | | Volume | | Pricing | | Volume | | Pricing |
Volume/Pricing Variance (1) | | | | | | | | |
Heritage Aggregates Product Line: (2) | | | | | | | | |
Mideast Group
| | |
2.9%
| |
(0.9%)
| |
5.4%
| |
(1.2%)
|
Southeast Group
| | |
(10.1%)
| |
4.7%
| |
(3.4%)
| |
3.5%
|
West Group
| | | |
7.6%
| |
5.4%
| |
9.3%
| |
6.2%
|
Heritage Aggregates Operations
| |
2.8%
| |
2.4%
| |
5.5%
| |
2.6%
|
Aggregates Product Line (3) | |
3.0%
| |
0.5%
| |
4.7%
| |
0.8%
|
| | | | | | | | | | | | |
|
| | | | | | | Three Months Ended | | Six Months Ended |
| | | | | | | June 30, | | June 30, |
Shipments (tons in thousands)
| | 2012 | | 2011 | | 2012 | | 2011 |
Heritage Aggregates Product Line: (2) | | | | | | | | |
Mideast Group
| | |
9,814
| |
9,540
| |
16,267
| |
15,439
|
Southeast Group
| | |
5,666
| |
6,300
| |
10,918
| |
11,301
|
West Group
| | | |
17,904
| |
16,633
| |
30,055
| |
27,494
|
Heritage Aggregates Operations
| |
33,384
| |
32,473
| |
57,240
| |
54,234
|
Acquisitions
| | | |
1,745
| |
-
| |
2,831
| |
-
|
Divestitures (4) | | | |
1
| |
1,638
| |
24
| |
3,144
|
Aggregates Product Line (3) | |
35,130
| |
34,111
| |
60,095
| |
57,378
|
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
|
(1) Volume/pricing variances reflect the percentage increase
(decrease) from the comparable period in the prior year. |
| | | | | | | | | | | | |
|
(2) Heritage Aggregates product line excludes volume and
pricing data for acquisitions that have not been included in
prior-year operations for the comparable period and divestitures. |
| | | | | | | | | | | | |
|
(3) Aggregates product line includes all acquisitions from the
date of acquisition and divestitures through the date of disposal. |
| | | | | | | | | | | | |
|
(4) Divestitures include the tons related to divested aggregates
product line operations up to the date of divestiture. |
|
| |
MARTIN MARIETTA MATERIALS, INC. |
Non-GAAP Financial Measures |
(Dollars in millions)
|
| | | |
| |
| |
| |
Gross margin as a percentage of net sales and operating margin as
a percentage of net sales represent non-GAAP measures. The
Corporation presents these ratios calculated based on net sales,
as it is consistent with the basis by which management reviews the
Corporation's operating results. Further, management believes it
is consistent with the basis by which investors analyze the
Corporation's operating results, given that freight and delivery
revenues and costs represent pass-throughs and have no profit
markup. Gross margin and operating margin calculated as
percentages of total revenues represent the most directly
comparable financial measures calculated in accordance with
generally accepted accounting principles ("GAAP"). The following
tables present the calculations of gross margin and operating
margin for the three and six months ended June 30, 2012 and 2011,
in accordance with GAAP and reconciliations of the ratios as
percentages of total revenues to percentages of net sales:
|
| | | | | | | | |
|
Gross Margin in Accordance with Generally Accepted Accounting
Principles | | | Three Months Ended June 30, | | Six Months Ended June 30, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
Gross profit
| | |
$
|
102.1
|
| |
$
|
97.5
|
| |
$
|
125.9
|
| |
$
|
120.2
|
|
Total revenues
| | |
$
|
545.7
|
| |
$
|
462.4
|
| |
$
|
939.7
|
| |
$
|
790.3
|
|
Gross margin
| | |
|
18.7
|
%
| |
|
21.1
|
%
| |
|
13.4
|
%
| |
|
15.2
|
%
|
| | | | | | | | |
|
| | | Three Months Ended | | Six Months Ended |
| | | June 30, | | June 30, |
Gross Margin Excluding Freight and Delivery Revenues | | | 2012 | | 2011 | | 2012 | | 2011 |
| | | | | | | | |
|
Gross profit
| | |
$
|
102.1
|
| |
$
|
97.5
|
| |
$
|
125.9
|
| |
$
|
120.2
|
|
Total revenues
| | |
$
|
545.7
| | |
$
|
462.4
| | |
$
|
939.7
| | |
$
|
790.3
| |
Less: Freight and delivery revenues
| | |
|
(54.5
|
)
| |
|
(52.8
|
)
| |
|
(97.9
|
)
| |
|
(90.1
|
)
|
Net sales
| | |
$
|
491.2
|
| |
$
|
409.6
|
| |
$
|
841.8
|
| |
$
|
700.2
|
|
Gross margin excluding freight and delivery revenues
| | |
|
20.8
|
%
| |
|
23.8
|
%
| |
|
15.0
|
%
| |
|
17.2
|
%
|
| | | | | | | | |
|
Operating Margin in Accordance with Generally Accepted
Accounting Principles | | | Three Months Ended June 30, | | Six Months Ended June 30, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
Earnings from operations
| | |
$
|
59.3
|
| |
$
|
64.7
|
| |
$
|
23.9
|
| |
$
|
60.3
|
|
Total revenues
| | |
$
|
545.7
|
| |
$
|
462.4
|
| |
$
|
939.7
|
| |
$
|
790.3
|
|
Operating margin
| | |
|
10.9
|
%
| |
|
14.0
|
%
| |
|
2.5
|
%
| |
|
7.6
|
%
|
| | | | | | | | |
|
| | | Three Months Ended | | Six Months Ended |
Operating Margin Excluding Freight and Delivery Revenues | | | June 30, | | June 30, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
Earnings from operations
| | |
$
|
59.3
|
| |
$
|
64.7
|
| |
$
|
23.9
|
| |
$
|
60.3
|
|
Total revenues
| | |
$
|
545.7
| | |
$
|
462.4
| | |
$
|
939.7
| | |
$
|
790.3
| |
Less: Freight and delivery revenues
| | |
|
(54.5
|
)
| |
|
(52.8
|
)
| |
|
(97.9
|
)
| |
|
(90.1
|
)
|
Net sales
| | |
$
|
491.2
|
| |
$
|
409.6
|
| |
$
|
841.8
|
| |
$
|
700.2
|
|
Operating margin excluding freight and delivery revenues
| | |
|
12.1
|
%
| |
|
15.8
|
%
| |
|
2.8
|
%
| |
|
8.6
|
%
|
| | | | | | | | |
|
| | | | | | | | |
|
EBITDA is a widely accepted financial indicator of a company's
ability to service and/or incur indebtedness. EBITDA is not
defined by generally accepted accounting principles and, as such,
should not be construed as an alternative to net earnings or
operating cash flow. For further information on EBITDA, refer to
the Corporation's website at www.martinmarietta.com.
EBITDA is as follows for the three and six months ended June 30,
2012, and 2011.
|
| | | | | | | | |
|
| | | Three Months Ended | | Six Months Ended |
| | | June 30, | | June 30, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
Earnings Before Interest, Income Taxes, Depreciation, Depletion and
Amortization (EBITDA)
| |
$
|
102.5
|
| |
$
|
105.4
|
| |
$
|
113.1
|
| |
$
|
142.6
|
|
| | | | | | | | |
|
| | | | | | | | |
|
A reconciliation of Net Earnings Attributable to Martin Marietta
Materials, Inc. to EBITDA is as follows: | | | | |
| | | Three Months Ended | | Six Months Ended |
| | | June 30, | | June 30, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
Net Earnings Attributable to Martin Marietta Materials, Inc.
| | |
$
|
36.8
| | |
$
|
35.8
| | |
$
|
-
| | |
$
|
18.4
| |
Add back:
| | | | | | | | | |
Interest Expense
| | | |
13.3
| | | |
13.7
| | | |
26.7
| | | |
31.9
| |
Income Tax Expense for Controlling Interests
| | | |
8.6
| | | |
13.1
| | | |
(1.4
|
)
| | |
6.7
| |
Depreciation, Depletion and Amortization Expense
| | |
|
43.8
|
| |
|
42.8
|
| |
|
87.8
|
| |
|
85.6
|
|
EBITDA
| | |
$
|
102.5
|
| |
$
|
105.4
|
| |
$
|
113.1
|
| |
$
|
142.6
|
|
| | | | | | | | | | | | | | | | |
|
|
MARTIN MARIETTA MATERIALS, INC. |
Non-GAAP Financial Measures (continued) |
(Dollars, other than earnings per share amounts, and number of
shares in millions)
|
|
The impact of business development expenses on earnings per
diluted share, consolidated earnings from operations excluding
business development expenses, adjusted earnings per diluted share
and net cash provided by operating activities excluding the impact
of business development expenses each represent non-GAAP financial
measures. Management presents these measures to provide more
consistent information for investors and analysts to use when
comparing operating results for the quarter ended June 30, 2012,
and net cash provided by operating activities for the six months
ended June 30, 2012, with the respective prior-year periods.
|
|
The following shows the calculation of the impact of business
development expenses on earnings per diluted share: |
|
| Three Months Ended |
| | June 30, 2012 |
Business development expenses
| |
|
$
|
9.2
| |
Income tax benefit
| | |
|
3.6
|
|
After-tax impact of business development expenses
| | |
$
|
5.6
|
|
Diluted average number of common shares outstanding
| | |
|
45.9
|
|
Earnings per diluted share impact of business development expenses
| | |
$
|
(0.12
|
)
|
|
The following reconciles consolidated earnings from operations
in accordance with generally accepted accounting principles to
consolidated earnings from operations exclusive of business
development expenses: |
| | Three Months Ended |
| | June 30, 2012 |
Consolidated earnings from operations in accordance with generally
accepted accounting principles
| | |
$
|
59.3
| |
Add back: Business development expenses
| | |
|
9.2
|
|
Consolidated earnings from operations exclusive of business
development expenses
| | |
$
|
68.5
|
|
|
The following reconciles earnings per diluted share in
accordance with generally accepted accounting principles to
adjusted earnings per diluted share, which excludes the impact of
business development expenses: |
| | Three Months Ended |
| | June 30, 2012 |
Earnings per diluted share in accordance with generally accepted
accounting principles
| | |
$
|
0.80
| |
Add back: Earnings per diluted share impact of business development
expenses
| | |
|
0.12
|
|
Adjusted earnings per diluted share, which excludes the impact of
business development expenses
| | |
$
|
0.92
|
|
|
The following reconciles net cash provided by operating
activities in accordance with generally accepted accounting
principles to net cash provided by operating activities excluding
the impact of business development expenses: |
| | Six Months Ended |
| | June 30, 2012 |
Net cash provided by operating activities in accordance with
generally accepted accounting principles
| | |
$
|
27.7
| |
Add back: Impact of business development expenses on operating cash
flow
| | |
|
24.9
|
|
Net cash provided by operating activities excluding the impact of
business development expenses
| | |
$
|
52.6
|
|
| | | | |
|
|
MARTIN MARIETTA MATERIALS, INC. |
Non-GAAP Financial Measures (continued) |
(Dollars in millions)
|
|
|
The ratio of Consolidated Debt-to-Consolidated EBITDA, as defined,
for the trailing twelve months is a covenant under the
Corporation's revolving credit facility, term loan facility and
accounts receivable securitization facility. Under the terms of
these agreements, as amended, the Corporation's ratio of
Consolidated Debt-to-Consolidated EBITDA as defined, for the
trailing twelve months can not exceed 3.95 times as of June 30,
2012, with certain exceptions related to qualifying acquisitions,
as defined. The ratio limit steps down to 3.75 times at September
30, 2012, before returning to the pre-amended limit of 3.50 times
at December 31, 2012. The amended agreements also allow the
Corporation to exclude from the ratio at June 30, 2012, debt
associated with the Colorado operations that were acquired in the
fourth quarter of 2011.
|
|
The following presents the calculation of Consolidated
Debt-to-Consolidated EBITDA, as defined, for the trailing-twelve
months at June 30, 2012. For supporting calculations, refer to
Corporation's website at www.martinmarietta.com. |
|
| Twelve-Month Period |
| | July 1, 2011 to |
| | June 30, 2012 |
Earnings from continuing operations attributable to Martin Marietta
Materials, Inc.
| |
|
$
|
68.1
| |
Add back:
| | | |
Interest expense
| | | |
53.4
| |
Income tax expense
| | | |
12.0
| |
Depreciation, depletion and amortization expense
| | | |
166.7
| |
Stock-based compensation expense
| | | |
9.7
| |
Deduct:
| | | |
Interest income
| | |
|
(0.6
|
)
|
Consolidated EBITDA, as defined
| | |
$
|
309.3
|
|
|
Consolidated Debt, including debt guaranteed by the Corporation
and excluding specified acquisition debt, at June 30, 2012
| | |
$
|
1,124.4
| |
Less: Unrestricted cash and cash equivalents in excess of $50 at
June 30, 2012
| | |
|
-
|
|
Consolidated Net Debt, as defined, at June 30, 2012
| | |
$
|
1,124.4
|
|
|
Consolidated Debt-to-Consolidated EBITDA, as defined, at June 30,
2012 for the trailing twelve-month EBITDA
| | |
|
3.63 times
|
|
|
MLM-E
Contacts:
Martin Marietta Materials, Inc.
Anne H. Lloyd, 919-783-4660
Executive
Vice President,
Chief Financial Officer and Treasurer
www.martinmarietta.com
Source: Martin Marietta Materials, Inc.
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