Vulcan Announces Earnings For The Third Quarter Of 2012 Continued Improvement in Aggregates Earnings Driven by Higher Pricing and Effective Cost Control Aggregates Gross Profit Margin Up 340 Basis Points from Third Quarter 2011 PR Newswire BIRMINGHAM, Ala., Nov. 8, 2012 BIRMINGHAM, Ala., Nov. 8, 2012 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's largest producer of construction aggregates, today announced earnings for the third quarter ended September 30, 2012. (Logo: http://photos.prnewswire.com/prnh/20090710/CL44887LOGO ) Third Quarter 2012 Results Summary oAggregates segment gross profit improved $11 million, or 10 percent, reflecting increased pricing and lower unit cost of sales due to improved productivity and cost reduction initiatives. oAggregates pricing increased 4 percent from the prior year, reflecting improvement in most markets. oUnit cost of sales decreased 1 percent from the prior year. oOn a same-store basis, aggregates shipments decreased 6 percent from the prior year. oAggregates cash gross profit was $4.75 per ton, a third quarter record. oAggregates gross profit margin was 25.4 percent, an increase of 340 basis points from the prior year. oGross profit from non-aggregates segments was in line with the prior year's third quarter as overall segment revenues approximated the prior year. oTotal gross profit increased 10 percent and gross profit margin expanded 230 basis points as the earnings effect of higher pricing and effective cost control more than offset the earnings effects of declines in aggregates and asphalt shipments. oAdjusted EBIT and EBITDA increased $19 million and $12 million, respectively, over the prior year. oEarnings from continuing operations were $0.12 per diluted share versus $0.17 per diluted share in the prior year. The prior year's earnings included $0.30 per diluted share from the gain on sale of assets and recovery from a legal settlement. On a comparable basis, as indicated on the table below, third quarter earnings from continuing operations were $0.14 per diluted share compared to a loss of $0.13 per diluted share in the prior year. Don James, Chairman and Chief Executive Officer, stated, "This quarter marks the fourth consecutive quarter of year-over-year higher unit profitability in aggregates, lower SAG expense and growth in Adjusted EBITDA. For the trailing twelve months ended September 30, 2012, cash gross profit per ton in aggregates was 8 percent higher than the prior twelve months, SAG expense was down 12 percent and Adjusted EBITDA increased 30 percent. These results demonstrate the benefits of our ongoing focus on reducing controllable costs and maximizing operating efficiency across the organization." Mr. James continued, "In addition, leading indicators in private sector construction markets, including residential and nonresidential buildings, continue to improve. This should benefit our aggregates, concrete and cement businesses going forward. Year-to-date, concrete and cement volumes are up 8 percent and 23 percent, respectively, reflecting the upturn in private construction, particularly in Florida and Texas." Commentary on 3Q 2012 Segment Results Aggregates segment gross profit increased $11 million from the prior year's third quarter and gross profit margin expanded 340 basis points despite a 5 percent decline in segment revenues. Third quarter aggregates cash gross profit per ton was $4.75, 10 percent higher than the prior year and a record for third quarter unit profitability. Higher Aggregates segment earnings and unit profitability were driven by a 4 percent increase in the average sales price and lower unit costs. The improvement in operating cost was due to increased productivity in a number of key operating metrics and was achieved despite lower production volume. Most of the Company's markets realized increased pricing, including key markets in Florida, Texas and states in the Southeast, the mid-Atlantic and the Midwest. Private construction activity, particularly residential, continued to improve during the third quarter, offsetting softness in highway construction resulting from the prolonged delay in renewing the federal highway bill. The new bill, "MAP-21," was signed into law in July of this year, nearly three years after expiration of the previous multi-year bill. On a same-store basis, aggregates shipments decreased 6 percent versus the prior year. Total aggregates shipments in Arizona, Florida and Texas increased 12 percent, due primarily to growing demand from private construction. Most other markets experienced declines in aggregates volumes compared to the third quarter of 2011, reflecting weakness in public construction activity that more than offset growth in private construction activity. Collectively, third quarter earnings from the Company's non-aggregates segments were in-line with the prior year. Earnings improvements in the Cement and Concrete segments offset a slight decrease in Asphalt Mix gross profit. The unit cost for liquid asphalt increased 3 percent, reducing Asphalt segment earnings by $1 million. Continued recovery in private construction activity led to solid increases in ready-mixed concrete and cement volumes as well as year-over-year growth in pricing for both products. SAG expenses in the third quarter decreased $2 million from the prior year. This marks the fourth consecutive quarterly decline in year-over-year SAG expenses. Excluding the effects of certain accounting charges tied primarily to employee benefit plans and resulting from the increase in the Company's stock price, SAG expenses were reduced $10 million from the prior year's third quarter. The following table summarizes the year-over-year changes for key metrics. Year-over-Year Change (Millions) Quarterly Year-to-Date Change Change Aggregates (3.2) Shipments (tons) (0.9) (23.6) Segment Revenue$ (6.8) 11.5 Gross Profit $ 43.8 Non-aggregates 0.2 Segment Revenue $ 21.4 (0.3) Gross Profit $ 1.5 Total Company (27.3) Net Sales $ 7.6 11.2 Gross Profit $ 45.3 18.7 Adjusted EBIT $ 84.0 11.8 Adjusted EBITDA$ 63.7 The following table summarizes Adjusted EBITDA and Continuing Operations EPS. EBITDA (Millions) Continuing Operations EPS, Diluted 3Q2012 3Q2011 3Q2012 3Q2011 $ 141.8 $ 193.9 As Reported $ 0.12 $ 0.17 1.2 - Exchange Offer Costs 0.01 - 3.0 0.9 Restructuring Costs 0.01 0.00 - (39.7) Gain on Sale of Assets - (0.19) - (20.9) Legal Settlement - (0.11) $ 146.0 $ 134.2 As Adjusted $ 0.14 $ (0.13) EBITDA and Earnings from Continuing Operations for the third quarter of 2011 included a $40 million gain on the sale of assets in Indiana and $21 million related to the recovery from a legal settlement. Adjusted EBITDA improved $12 million and adjusted earnings from continuing operations improved $0.27 per diluted share. Cash and cash equivalents totaled $243 million at September 30, 2012. Debt maturities in the fourth quarter of 2012 total $135 million which the Company expects to fund from available cash. Capital spending is expected to be approximately $100 million in 2012. 2012 Outlook Mr. James stated, "Employees throughout the Company are keenly focused on managing controllable costs. Thanks to their continuing efforts, Adjusted EBITDA has increased 25 percent year-to-date and the earnings leverage in our aggregates business continues to increase, as evidenced by the increase in cash gross profit per ton. Through the nine months ended September 30, 2012, Adjusted EBITDA, which excludes $18 million in real estate gains, was $321 million, up $64 million in the face of a 1 percent decline in aggregates volumes. Cost reduction initiatives across a wide array of spending categories continue to improve Vulcan's run-rate profitability. Through the first nine months of 2012, controllable costs have been reduced approximately $70 million. The effect of these initiatives supports our expectations for full year SAG costs to be approximately $260 million, compared to $290 million in 2011." Mr. James continued, "We believe economic and construction-related fundamentals that drive demand for our products will continue to improve from the historically low levels created by the economic downturn. Leading indicators of private construction activity, specifically residential housing starts and contract awards for nonresidential buildings, continue to improve in our markets. Consequently, aggregates demand into private construction, particularly residential, is beginning to grow. We are seeing evidence of this growth in several key states, including Florida, Texas and Arizona. However, the positive effect of these indicators takes time to materialize and impact our shipments given the low point from which the recovery began. For public construction, the passage of a new federal highway bill in July will provide stability and predictability to future highway funding, although it had no material impact on third quarter shipments, which reflected softness in highway construction and the ending of stimulus-related construction activity. The large increase in TIFIA (Transportation Infrastructure Finance and Innovation Act) funding contained in the new highway bill should positively impact demand in the future. The uncertain timing of larger projects, including TIFIA funded projects, continues to make forecasting quarterly volume growth difficult. We now expect full year same-store shipments in 2012 to approximate 2011 and total aggregates shipments to decrease approximately 1 percent. In keeping with our successful efforts to offset the earnings effect of lower volumes in recent quarters, we will continue our efforts to reduce controllable costs and achieve improved pricing. The geographic breadth of pricing gains achieved in the third quarter reinforces our expectations for full year freight-adjusted price growth of 1 to 3 percent in 2012." Full year earnings improvements in the Company's Cement and Concrete segments are expected to offset lower Asphalt Mix segment earnings. As a result, collectively, full year earnings from these segments are expected to approximate the prior year. Vulcan now expects 2012 Adjusted EBITDA of $435 to $455 million, an improvement of 23 to 29 percent from the prior year. This guidance includes $29 million in gains from the sale of assets, of which $18 million has been realized through the first nine months of 2012. The change in Adjusted EBITDA guidance reflects principally the earnings impact of lower shipments in aggregates and asphalt. The Company continues to work on additional asset sales in the fourth quarter. However, the ultimate timing of such transactions is difficult to predict and thus gains related to these transactions are excluded from current guidance. The Company remains committed to completing transactions designed to strengthen Vulcan's balance sheet, unlock capital for more productive uses and create value for shareholders. Conference Call Vulcan will host a conference call at 10:00 a.m. CST on November 8, 2012. Investors and other interested parties in the U.S. may access the teleconference live by calling 888.895.5479 approximately 10 minutes before the scheduled start. International participants can dial 847.619.6250. The access code is 33645025. A live webcast and accompanying slides will be available via the Internet through Vulcan's home page at www.vulcanmaterials.com. The conference call will be recorded and available for replay approximately two hours after the call through November 15, 2012. Vulcan Materials Company, a member of the S&P 500 Index, is the nation's largest producer of construction aggregates, a major producer of asphalt mix and concrete and a leading producer of cement in Florida. 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: risks that Vulcan's intentions, plans and results with respect to cost reductions, profit enhancements and asset sales, as well as streamlining and other strategic actions adopted by Vulcan, will not be able to be realized to the desired degree or within the desired time period and that the results thereof will differ from those anticipated or desired; uncertainties as to the timing and valuations that may be realized or attainable with respect to intended asset sales; those associated with general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; the impact of a prolonged economic recession on Vulcan's industry, business and financial condition and access to capital markets; changes in the level of spending for private residential and nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena; 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; the impact of Vulcan's below investment grade debt rating on Vulcan's cost of capital; volatility in pension plan asset values which may require cash contributions to the pension plans; the impact of environmental clean-up costs and other liabilities relating to previously divested businesses; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully integrate acquisitions; the potential of goodwill impairment; the potential impact of future legislation or regulations relating to climate change or greenhouse gas emissions or the definition of minerals; 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 (Amounts and shares in thousands, except per share data) Three Months Ended Nine Months Ended Consolidated Statements of September 30 September 30 Earnings (Condensed and unaudited) 2012 2011 2012 2011 Net sales $ $ $ 1,836,357 $ 1,828,720 687,616 714,947 Delivery revenues 41,245 45,805 122,522 121,203 Total revenues 728,861 760,752 1,958,879 1,949,923 Cost of goods sold 560,693 599,167 1,581,537 1,619,206 Delivery costs 41,245 45,805 122,522 121,203 Cost of revenues 601,938 644,972 1,704,059 1,740,409 Gross profit 126,923 115,780 254,820 209,514 Selling, administrative and 65,441 67,020 192,267 218,290 general expenses Gain on sale of property, plant & equipment and businesses, net 2,009 41,457 21,687 44,831 Recovery from legal - 20,857 - 46,404 settlement Restructuring charges (3,056) (839) (9,018) (2,977) Exchange offer costs (1,206) - (43,331) - Other operating income (3,363) (3,567) (2,642) (10,509) (expense), net Operating earnings 55,866 106,668 29,249 68,973 Other nonoperating income 1,806 (3,745) 4,196 (2,384) (expense), net Interest expense, net 53,043 50,678 158,997 163,839 Earnings (loss) from continuing operations before income taxes 4,629 52,245 (125,552) (97,250) Provision for (benefit from) (10,992) 29,833 (67,138) (47,938) income taxes Earnings (loss) from 15,621 22,412 (58,414) (49,312) continuing operations Earnings (loss) on discontinued operations, net (1,361) (2,453) 2,338 6,399 of tax Net earnings (loss) $ $ $ $ 14,260 19,959 (56,076) (42,913) Basic earnings (loss) per share: Continuing operations $ $ $ $ 0.12 0.17 (0.45) (0.38) Discontinued operations (0.01) (0.02) 0.02 0.05 Net earnings (loss) per $ $ $ $ share 0.11 0.15 (0.43) (0.33) Diluted earnings (loss) per share: Continuing operations $ $ $ $ 0.12 0.17 (0.45) (0.38) Discontinued operations (0.01) (0.02) 0.02 0.05 Net earnings (loss) per $ $ $ $ share 0.11 0.15 (0.43) (0.33) Weighted-average common shares outstanding: Basic 129,753 129,493 129,674 129,341 Assuming dilution 130,215 129,768 129,674 129,341 Cash dividends declared per share of common stock $ $ $ $ 0.01 0.25 0.03 0.75 Depreciation, depletion, accretion and amortization $ $ $ 253,391 $ 273,671 84,108 90,948 Effective tax rate from NMF 57.1% 53.5% 49.3% continuing operations Table B Vulcan Materials Company and Subsidiary Companies (Amounts in thousands, except per share data) Consolidated Balance Sheets September 30 December 31 September 30 (Condensed and unaudited) 2012 2011 2011 As Restated (a) Assets Cash and cash equivalents $ 243,126 $ 155,839 $ 152,379 Restricted cash - 81 81 Accounts and notes receivable: Accounts and notes 403,520 321,391 437,754 receivable, gross Less: Allowance for (6,106) (6,498) (7,715) doubtful accounts Accounts and notes 397,414 314,893 430,039 receivable, net Inventories: Finished products 263,893 260,732 249,265 Raw materials 28,221 23,819 26,284 Products in process 6,209 4,198 3,473 Operating supplies and 38,655 38,908 38,755 other Inventories 336,978 327,657 317,777 Current deferred income 45,353 43,032 48,743 taxes Prepaid expenses 26,384 21,598 27,809 Assets held for sale - - 26,883 Total current 1,049,255 863,100 1,003,711 assets Investments and long-term 42,226 29,004 28,917 receivables Property, plant & equipment: Property, plant & 6,690,448 6,705,546 6,665,937 equipment, cost Less: Reserve for (3,477,496) (3,287,367) (3,222,469) depr., depl. & amort Property, plant & 3,212,952 3,418,179 3,443,468 equipment, net Goodwill 3,086,716 3,086,716 3,086,716 Other intangible assets, net 693,308 697,502 698,703 Other noncurrent assets 141,459 134,813 122,011 Total assets $ 8,225,916 $ 8,229,314 $ 8,383,526 Liabilities and Equity Current maturities of $ 285,153 $ 134,762 $ long-term debt 5,215 Trade payables and accruals 133,209 103,931 134,853 Other current liabilities 213,735 167,560 239,438 Liabilities of assets held - - 1,474 for sale Total current 632,097 406,253 380,980 liabilities Long-term debt 2,527,450 2,680,677 2,816,223 Noncurrent deferred income 680,880 732,528 794,921 taxes Other noncurrent liabilities 618,292 618,239 524,485 Total liabilities 4,458,719 4,437,697 4,516,609 Equity: Common stock, $1 par 129,596 129,245 129,233 value Capital in excess of 2,567,859 2,544,740 2,538,987 par value Retained earnings 1,274,465 1,334,476 1,363,640 Accumulated other (204,723) (216,844) (164,943) comprehensive loss Total equity 3,767,197 3,791,617 3,866,917 Total liabilities $ 8,225,916 $ 8,229,314 $ 8,383,526 and equity The September 30, 2011 balance sheet reflects corrections of errors (a) related to current and deferred income taxes, which have a corresponding impact on retained earnings. Table C Vulcan Materials Company and Subsidiary Companies (Amounts in thousands) Nine Months Ended Consolidated Statements of Cash Flows September 30 (Condensed and unaudited) 2012 2011 Operating Activities Net loss $ (56,076) $ (42,913) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion, accretion and 253,391 273,671 amortization Net gain on sale of property, plant & (31,886) (55,886) equipment and businesses Contributions to pension plans (3,379) (3,762) Share-based compensation 9,362 12,991 Deferred tax provision (66,194) (58,569) Cost of debt purchase - 19,153 Changes in assets and liabilities before initial effects of business acquisitions and (9,886) (31,858) dispositions Other, net (1,573) 8,899 Net cash provided by operating 93,759 121,726 activities Investing Activities Purchases of property, plant & equipment (49,418) (77,332) Proceeds from sale of property, plant & 28,930 11,730 equipment Proceeds from sale of businesses, net of 10,690 72,830 transaction costs Other, net 963 1,684 Net cash provided by (used for) (8,835) 8,912 investing activities Financing Activities Net short-term payments - (285,500) Payment of current maturities and long-term (120) (737,952) debt Cost of debt purchase - (19,153) Proceeds from issuance of long-term debt - 1,100,000 Debt issuance costs - (17,904) Proceeds from settlement of interest rate swap - 23,387 agreements Proceeds from issuance of common stock - 4,936 Dividends paid (3,885) (96,878) Proceeds from exercise of stock options 6,167 3,232 Other, net 201 32 Net cash provided by (used for) 2,363 (25,800) financing activities Net increase in cash and cash equivalents 87,287 104,838 Cash and cash equivalents at beginning of year 155,839 47,541 Cash and cash equivalents at end of period $ 243,126 $ 152,379 Table D Segment Financial Data and Unit Shipments (Amounts in thousands, except per unit data) Three Months Ended Nine Months Ended September 30 September 30 2012 2011 2012 2011 Total Revenues Aggregates segment (a) $ $ $ $ 491,158 514,723 1,317,923 1,324,754 Intersegment sales (42,522) (42,473) (112,919) (111,770) Net sales 448,636 472,250 1,205,004 1,212,984 Concrete segment (b) 108,651 101,390 303,285 281,809 Intersegment sales - - - - Net sales 108,651 101,390 303,285 281,809 Asphalt Mix segment 118,219 128,897 293,266 304,432 Intersegment sales - - - - Net sales 118,219 128,897 293,266 304,432 Cement segment (c) 22,727 19,137 63,569 52,491 Intersegment sales (10,617) (6,727) (28,767) (22,996) Net sales 12,110 12,410 34,802 29,495 Total Net sales 687,616 714,947 1,836,357 1,828,720 Delivery revenues 41,245 45,805 122,522 121,203 Total revenues $ 728,861 $ 760,752 $ $ 1,958,879 1,949,923 Gross Profit Aggregates $ $ $ $ 124,882 113,391 270,768 227,007 Concrete (8,506) (8,887) (29,850) (32,327) Asphalt Mix 10,976 12,292 15,498 20,418 Cement (429) (1,016) (1,596) (5,584) Total gross profit $ $ $ $ 126,923 115,780 254,820 209,514 Depreciation, depletion, accretion and amortization Aggregates $ $ $ $ 62,320 70,287 191,832 211,502 Concrete 11,421 13,058 34,895 39,291 Asphalt Mix 2,314 1,953 7,131 5,877 Cement 6,405 4,505 14,965 13,554 Corporate and other 1,648 1,145 4,568 3,447 unallocated Total DDA&A $ $ $ $ 84,108 90,948 253,391 273,671 Unit Shipments Aggregates customer tons 36,390 39,461 99,556 100,389 Internal tons (d) 2,990 3,106 8,000 8,072 Aggregates - tons 39,380 42,567 107,556 108,461 Ready-mixed concrete - 1,116 1,043 3,149 2,911 cubic yards Asphalt Mix - tons 2,085 2,283 5,208 5,522 Cement customer tons 123 124 328 251 Internal tons (d) 136 97 367 316 Cement - tons 259 221 695 567 Average Unit Sales Price (including internal sales) Aggregates $ $ $ $ (freight-adjusted) (e) 10.63 10.24 10.44 10.31 Ready-mixed concrete $ $ $ $ 93.18 93.06 92.47 92.38 Asphalt Mix $ $ $ $ 55.52 55.84 55.12 54.53 Cement $ $ $ $ 77.89 72.63 77.97 75.44 (a) Includes crushed stone, sand and gravel, sand, other aggregates, as well as transportation and service revenues associated with the aggregates business. (b) Includes ready-mixed concrete, concrete block, precast concrete, as well as building materials purchased for resale. (c) Includes cement and calcium products. (d) Represents tons shipped primarily to our downstream operations (e.g., asphalt mix and ready-mixed concrete). Sales from internal shipments are eliminated in net sales presented above and in the accompanying Condensed Consolidated Statements of Earnings. (e) Freight-adjusted sales price is calculated as total sales dollars (internal and external) less freight to remote distribution sites dividedby total sales units (internal and external). Table E 1. Supplemental Cash Flow Information Supplemental information referable to the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30 is summarized below: (Amounts in thousands) 2012 2011 Supplemental Disclosure of Cash Flow Information Cash paid (refunded) during the period for: Interest $ $ 102,260 104,440 Income taxes 19,219 (31,127) Supplemental Schedule of Noncash Investing and Financing Activities Liabilities assumed in business acquisition - 13,774 Accrued liabilities for purchases of property, plant 4,316 6,511 & equipment Fair value of equity consideration for business - 18,529 acquisition 2. Reconciliation of Non-GAAP Measures Generally Accepted Accounting Principles (GAAP) does not define "free cash flow" "cash gross profit", "Earnings Before Interest, Taxes, Depreciation and Amortization" (EBITDA) and "cash earnings." Thus, free cash flow should not be considered as an alternative to net cash provided by operating activities or any other liquidity measure defined by GAAP. Likewise, cash gross profit, EBITDA and cash earnings should not be considered as alternatives to earnings measures defined by GAAP. We present these metrics for the convenience of investment professionals who use such metrics in their analyses, and for shareholders who need to understand the metrics we use to assess performance and to monitor our cash and liquidity positions. The investment community often uses these metrics as indicators of a company's ability to incur and service debt. We use free cash flow, cash gross profit, EBITDA, cash earnings and other such measures to assess the operating performance of our various business units and the consolidated company. We do not use these metrics as a measure to allocate resources. Reconciliations of these metrics to their nearest GAAP measures are presented below: Free Cash Flow Free cash flow deducts purchases of property, plant & equipment from net cash provided by operating activities (Amounts in thousands) Nine Months Ended September 30 2012 2011 Net cash provided by operating activities $ $ 121,726 93,759 Purchases of property, plant & equipment (49,418) (77,332) Free cash flow $ $ 44,394 44,341 Cash Gross Profit Cash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization (DDA&A) to gross profit (Amounts in thousands) Three Months Ended Nine Months Ended September 30 September 30 2012 2011 2012 2011 Gross Profit $ $ 115,780 $ $ 209,514 126,923 254,820 DDA&A 84,108 90,948 253,391 273,671 Cash gross $ $ 206,728 $ $ 483,185 profit 211,031 508,211 Table F Reconciliation of Non-GAAP Measures (Continued) EBITDA and Cash Earnings EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization. Cash earnings adjusts EBITDA for net interest expense and current taxes. (Amounts in thousands) Three Months Ended Nine Months Ended September 30 September 30 2012 2011 2012 2011 Reconciliation of Net Loss to EBITDA and Cash Earnings Net earnings (loss) $ 14,260 $ 19,959 $ $ (56,076) (42,913) Provision for (benefit from) (10,992) 29,833 (67,138) (47,938) income taxes Interest expense, net 53,043 50,678 158,997 163,839 (Earnings) loss on discontinued operations, net 1,361 2,453 (2,338) (6,399) of tax EBIT 57,672 102,923 33,445 66,589 Plus: Depreciation, depletion, accretion and 84,108 90,948 253,391 273,671 amortization EBITDA $ 141,780 $ 193,871 $ $ 286,836 340,260 Less:Interest expense, (53,043) (50,678) (158,997) (163,839) net Current taxes (4,244) 3,488 2,069 (10,278) Cash earnings $ 84,493 $ 146,681 $ $ 129,908 166,143 Adjusted EBITDA and Adjusted EBIT EBITDA $ 141,780 $ 193,871 $ $ 286,836 340,260 Recovery from legal - (20,857) - (46,404) settlement Gain on sale of real estate - (39,659) (18,321) (39,659) and businesses Restructuring charges 3,056 839 9,018 2,977 Exchange offer costs 1,206 - 43,331 - Adjusted EBITDA $ 146,042 $ 134,194 $ $ 320,864 257,174 Less: Depreciation, depletion, accretion and 84,108 90,948 253,391 273,671 amortization Adjusted EBIT $ 61,934 $ 43,246 $ $ 67,473 (16,497) Three Months Nine EBITDA Bridge Ended Months Ended (Amounts in millions) September 30 September 30 EBITDA EBITDA Continuing Operations - 2011 $ 194 $ Actual 340 Plus: Recovery from legal (21) (46) settlement Gain on sale of real (40) (40) estate Restructuring charges 1 3 2011 Adjusted EBITDA from 134 257 continuing operations Increase / (Decrease) due to: Aggregates: Volumes (18) (5) Selling prices 15 14 Lower costs and 7 16 other items Concrete (1) (2) Asphalt Mix (1) (4) Cement 3 5 Lower selling, administrative and general 2 26 expenses Other 5 14 2012 Adjusted EBITDA from 146 321 continuing operations Plus: Gain on sale of real - 18 estate Restructuring charges (3) (9) Exchange offer costs (1) (43) Continuing Operations - 2012 $ 142 $ Actual 287 SOURCE Vulcan Materials Company Website: http://www.vulcanmaterials.com Contact: Investor Contact - Mark Warren, +1-205-298-3220; Media Contact - David Donaldson, +1-205-298-3220
Vulcan Announces Earnings For The Third Quarter Of 2012
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