Martin Marietta Materials, Inc. Announces 2012 Fourth-Quarter and Full-Year Results

  Martin Marietta Materials, Inc. Announces 2012 Fourth-Quarter and Full-Year
  Results

                     Earnings Per Diluted Share of $0.46

               Heritage Aggregates Product Line Volume Up 5.0%

       Specialty Products Posts Full-Year Record Net Sales and Earnings

Business Wire

RALEIGH, N.C. -- February 12, 2013

Martin Marietta Materials, Inc. (NYSE:MLM) today announced results for the
fourth quarter and year ended December 31, 2012.

Ward Nye, President and CEO of Martin Marietta Materials, stated, “We were
pleased that 2012 concluded the same way it started – with growth in both
heritage aggregates product line shipments and average selling price. Notably,
heritage volume growth in the fourth quarter was achieved in each of our
reportable groups, leading to an overall increase of 5.0%. Underlying this
improvement was expansion in our nonresidential and residential end-use
markets, continuing trends we have experienced throughout the year. Our
Colorado operations acquired in December 2011 also provided an important
contribution to the quarter. Additionally, we see tangible signs that the
infrastructure end-use market is poised to benefit from the Moving Ahead for
Progress in the 21^st Century Act, or MAP-21, as well as other federal- and
state-sponsored funding initiatives. Our 2012 results and trends, coupled with
external indicators, have provided optimism that our momentum will continue in
2013.”

NOTABLE ITEMS FOR THE QUARTER (UNLESS NOTED, ALL COMPARISONS ARE WITH THE
PRIOR-YEAR FOURTH QUARTER)

  *Earnings per diluted share of $0.46 compared with $0.32
  *Consolidated net sales of $457.9 million compared with $374.7 million
  *Heritage aggregates product line volume increased 5.0%; pricing increased
    1.0%
  *Specialty Products net sales of $50.6 million and earnings from operations
    of $15.8 million
  *Consolidated selling, general and administrative expenses (SG&A) decreased
    20 basis points as a percentage of net sales despite absorbing a $3.3
    million charge for restructuring initiatives
  *Consolidated earnings from operations of $40.0 million compared with $20.7
    million; 2011 results included $15.1 million of business development
    expenses

NOTABLE ITEMS FOR THE YEAR (ALL COMPARISONS ARE VERSUS 2011)

  *Adjusted earnings per diluted share (excluding business development
    expenses of $0.46 and $0.25 per diluted share in 2012 and 2011,
    respectively) of $2.29 compared with $2.03
  *Earnings per diluted share of $1.83 compared with $1.78
  *Net sales of $1.839 billion compared with $1.520 billion
  *Heritage aggregates product line volume up 2.9%; pricing up 2.5%
  *Specialty Products record net sales of $202.2 million and record earnings
    from operations of $68.5 million compared with $200.6 million and $66.3
    million, respectively
  *SG&A expenses down 70 basis points as a percentage of net sales

MANAGEMENT COMMENTARY (UNLESS NOTED, ALL COMPARISONS ARE WITH THE PRIOR-YEAR
FOURTH QUARTER)

Nye continued, “Heritage aggregates product line volume growth reflects a 13%
increase in shipments in both the nonresidential and residential end-use
markets. The nonresidential market is our second largest aggregates product
line end use, comprising 31% of quarterly shipments. Volume growth was notable
in the energy sector, as well as the commercial construction sector, which we
believe is beginning to benefit from six consecutive quarters of improvement
in the residential end-use market. Generally, growth in the commercial
component of nonresidential construction follows the residential construction
market with a 12- to 18-month lag.

“The infrastructure market represents approximately half of our aggregates
product line volumes and increased 1.5% for the quarter. We were encouraged by
the 91% increase in highway obligations during the quarter compared with the
prior-year period. While the rate of improvement will moderate as the fiscal
year progresses, we believe this is an early indicator for increased
infrastructure construction activity in 2013. We also continue to monitor
applications for funding provided by the Transportation Infrastructure Finance
and Innovation Act (TIFIA), which provides $1.75 billion of federal credit
assistance over the next two years for nationally or regionally significant
surface transportation projects. Each dollar of federal funds can provide up
to $10 in TIFIA credit assistance and, on an overall basis, TIFIA can leverage
$30 billion to $50 billion in new transportation infrastructure investment.
Several of our key states, including Texas, North Carolina and Virginia, have
applied for TIFIA monies, which are expected to be awarded in early 2013.
Construction activity related to TIFIA projects could begin as early as second
half 2013, but more likely will have a greater impact on 2014 through 2016
construction activity.

“We continue to see significant state-level programs aimed at increasing
funding for infrastructure projects. Recently, the state of Colorado passed a
measure potentially increasing annual infrastructure funding by $300 million
for the next five years. Texas, Iowa and Florida have also approved programs
to provide additional funding for key initiatives. Additionally, the governor
of Virginia proposed a transportation funding overhaul that could have
provided more than $3 billion for highways, rail and transit systems in the
next five years. The plan was approved by the Virginia House of Delegates but
was effectively tabled by the State Senate. Not surprisingly, the increase in
highway contract awards in Colorado, Virginia and Iowa is significantly
outpacing the national average.

“Our ChemRock/Rail end-use market accounted for 12% of quarterly aggregates
product line shipments and experienced a 3% decline in heritage shipments
compared with the prior-year quarter. In addition to being compared with a
strong prior-year quarter, this reduction reflects lower ballast shipments
that continue to be affected by a decline in coal traffic on the railroads.
This was partially offset by increased agricultural lime shipments in our
Midwest Division, which reaped the benefits of favorable weather during the
quarter. On an annual basis, while ballast shipments were lower compared with
2011, volumes for 2012 were in line with the five-year historical average.

“Geographically, energy-sector shipments and strength in both residential and
nonresidential end-use markets led to an 8.7% increase in heritage aggregates
product line shipments in the West Group. The Mideast and Southeast Groups had
heritage volume growth of 1.2% and 1.7%, respectively. Once again, aggregates
shipment levels varied by market, with notable strength in Texas, Florida,
Indiana and Charlotte, North Carolina. On the contrary, shipment weakness was
noted in the Ohio and Kansas City markets, which experienced reductions in
state infrastructure projects; Virginia, where several large nonresidential
projects were completed earlier in the year; and West Virginia, which saw a
decline in sales of asphalt stone.

“Our overall heritage aggregates product line average selling price increased
1.0%, reflecting expansions in all of our reportable groups. This growth was
led by the 2.9% increase in our Southeast Group, which was due to pricing
increases and product mix. Our West Group achieved a 1.3% increase in pricing,
while our Mideast Group improved 0.5%.

“Heritage aggregates product line production increased 6% to meet shipment
activity. Our operations personnel leveraged efficiencies gained through
higher production volumes and reduced our heritage cost per ton by 2%.

“Specialty Products continued its strong performance and, for the quarter, net
sales were $50.6 million and earnings from operations were $15.8 million, or
31.3% of net sales. For the full year, this business established new records
for net sales and earnings from operations, which were $202.2 million and
$68.5 million, respectively. On November 1, our new dolomitic lime kiln at the
Woodville, Ohio, facility became operational and contributed $3 million of net
sales for the fourth quarter. Going forward, the new kiln is expected to
provide annual net sales, ranging from $22 million to $25 million with margins
comparable to existing operations.

“Consolidated gross margin (excluding freight and delivery revenues) for the
quarter was 16.7%, a 200-basis-point decline compared with the prior-year
quarter. Consolidated gross margin, excluding freight and delivery revenues
and our increased exposure to vertical integration – ready mixed concrete, hot
mixed asphalt and related paving operations in Arkansas, Colorado and Texas –
would have been 19.4%. This adjusted gross margin (excluding freight and
delivery revenues) represents a 270-basis-point increase compared with the
reported consolidated gross margin (excluding freight and delivery revenues).
The Mideast and West Groups each leveraged volume and pricing improvements in
the aggregates product line to expand their gross margins. These gains were
offset by a decline in our Southeast Group profitability, which reflects the
continued under absorption of fixed costs, as well as increased freight costs.

“Consolidated SG&A as a percentage of net sales was 8.3%, an improvement of 20
basis points compared with the prior-year quarter. On an absolute basis, SG&A
increased $6.3 million, which was due to a $3.3 million charge for
restructuring initiatives, 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

“Cash provided by operating activities for full year 2012 was $222.7 million
compared with $259.1 million for 2011. Cash provided by operating activities
for 2012 would have been $283.7 million, excluding cash outlays of $38 million
for business development expenses and a net $23 million required to finance
working capital for our Colorado operations. We used our significant cash flow
to make timely but prudent capital investments, maintain dividend payments and
reduce our outstanding debt by $12 million. During the year, we invested
$151.0 million of capital into our business, including $33 million related to
the new kiln.

“At December 31, 2012, our ratio of consolidated debt to consolidated EBITDA,
as defined, for the trailing twelve months was 3.21 times. At December 31,
2012, the maximum ratio is 3.75 times per our covenant. The maximum ratio is
3.75 times through June 30, 2013, before returning to a maximum of 3.50 times
on September 30, 2013.

2013 OUTLOOK

“We expect that in 2013, there will be significantly stronger new construction
activity across the country, and we are well positioned to capitalize on this
opportunity. We are encouraged by various positive trends in our business and
markets, especially as MAP-21 and other programs are implemented. For 2013, we
currently expect shipments to the infrastructure end-use market to increase in
the mid-single digits, driven by the impact of MAP-21, TIFIA and
state-sponsored programs. We anticipate the nonresidential end-use market to
increase in the high-single digits given that the Architecture Billings Index,
a leading economic indicator for nonresidential construction spending
activity, is reflecting the strongest growth in billings at architecture firms
since the end of 2007. Residential construction is experiencing a level of
growth not seen since late 2005 with seasonally adjusted starts ahead of any
period since 2008. We believe this trend in housing starts will continue and
our residential end-use market will experience double-digit volume growth.
Finally, we expect our ChemRock/Rail end-use market to be flat compared with
2012. Cumulatively, we anticipate heritage aggregates product line shipments
will increase 4% to 6%. As a reminder, we experienced moderate weather in the
first five months of 2012, which allowed an earlier-than-normal start to the
construction season in many of our markets. If we experience more typical
winter weather in 2013, the quarterly pattern of aggregates shipments and
earnings will differ versus 2012. In particular, 2013 first-quarter results
will be compared with a strong quarter in 2012.

“We currently expect heritage aggregates product line pricing will increase 2%
to 4% in 2013. A variety of factors beyond our direct control may continue to
exert pressure on our volumes and our forecasted pricing increase is not
expected to be uniform across the company.

“We expect our vertically integrated businesses to generate between $350
million and $375 million of net sales and $20 million to $22 million of gross
profit.

“Increased production should lead to a slight reduction in aggregates product
line direct production costs per ton compared with 2012. SG&A expenses as a
percentage of net sales are expected to decline slightly.

“Net sales for the Specialty Products segment should be between $220 million
and $230 million, generating $81 million to $85 million of gross profit. Steel
utilization and natural gas prices are two key factors for this segment.

“Interest expense is expected to remain relatively flat. Our effective tax
rate is expected to approximate 26%, excluding discrete events. Capital
expenditures are forecast at $155 million.”

RISKS TO OUTLOOK

The 2013 outlook includes management’s assessment of the likelihood of certain
risk factors that will affect performance. The most significant risk to the
Corporation’s performance will be the United States economy and its impact on
construction activity. While both MAP-21 and TIFIA credit assistance are
excluded from federal budget sequester and the U.S. debt ceiling limit, the
ultimate resolution of these issues may have a significant impact on the
economy and, consequently, 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 reduction in defense spending, and the subsequent impact on construction
activity on or near military bases, particularly if sequestration of budget
programs occurs; a decline in nonresidential construction, a decline in
energy-related drilling activity resulting from certain regulatory or economic
factors, a slowdown in the residential construction recovery, or some
combination thereof; and a continued 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 issues driven by lower tax revenues. If these negatively affect
transportation budgets more than in the past, construction spending could be
reduced. North Carolina and Texas, states disproportionately affecting the
Corporation’s 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 aggregates-related
construction 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 operations in the Denver, Colorado, market increase 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 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.

CONFERENCE CALL INFORMATION

The Company will host an online web simulcast of its fourth quarter 2012
earnings conference call later today (February 12, 2013). The live broadcast
of the Martin Marietta Materials, Inc. conference call will begin at 2p.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 96829448.

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 Securities and Exchange
Commission (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 to 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 release 
include, but are not limited to, the performance of the United States economy
and the resolution of the debt ceiling and sequestration issues; widespread
decline in aggregates pricing; the termination, capping and/or reduction of
the federal and/or state gasoline tax(es) 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, Colorado and Georgia; 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 reduction in defense spending, and
the subsequent impact on construction activity on or near military bases,
particularly if sequestration of budget programs occurs; 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; reduction of the Corporation’s
credit rating to non-investment grade resulting from strategic acquisitions;
and other risk factors listed from time to time found in the Corporation’s
filings with the SEC. 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      Year Ended
                             December 31,            December 31,
                             2012       2011        2012        2011    
Net sales                    $ 457.9     $ 374.7     $ 1,838.7     $ 1,519.9
Freight and delivery          46.2      46.3      198.9       193.9   
revenues
Total revenues                504.1     421.0     2,037.6     1,713.8 
                                                                   
Cost of sales                  381.5       304.8       1,512.8       1,217.9
Freight and delivery costs    46.2      46.3      198.9       193.9   
Total cost of revenues        427.7     351.1     1,711.7     1,411.8 
Gross profit                   76.4        69.9        325.9         302.0
                                                                   
Selling, general and           38.0        31.7        138.4         124.1
administrative expenses
Business development costs     -           15.1        35.1          18.6
Other operating (income)      (1.6  )    2.4       (2.6    )    (1.7    )
and expenses, net
Earnings from operations       40.0        20.7        155.0         161.0
                                                                   
Interest expense               13.4        13.3        53.3          58.6
Other nonoperating            -         (0.4  )    (1.2    )    1.8     
(income) and expenses, net
Earnings from continuing
operations before taxes on     26.6        7.8         102.9         100.6
income
Income tax expense            4.8       (1.2  )    16.9        21.0    
(benefit)
Earnings from continuing       21.8        9.0         86.0          79.6
operations
                                                                   
(Loss) Gain on
discontinued operations,
net of related tax expense    (0.1  )    6.1       (0.5    )    4.0     
(benefit) of $(0.1), $4.1,
$(0.3) and $2.2,
respectively
                                                                   
Consolidated net earnings      21.7        15.1        85.5          83.6
Less: Net earnings
attributable to               0.2       0.3       1.0         1.2     
noncontrolling interests
                                                                   
Net earnings attributable
to Martin Marietta           $ 21.5     $ 14.8     $ 84.5       $ 82.4    
Materials, Inc.
                                                                   
Net earnings (loss) per
common share:
Basic from continuing
operations attributable to   $ 0.47      $ 0.19      $ 1.84        $ 1.70
common shareholders
Discontinued operations
attributable to common        -         0.13      (0.01   )    0.09    
shareholders
                             $ 0.47     $ 0.32     $ 1.83       $ 1.79    
                                                                   
Diluted from continuing
operations attributable to   $ 0.46      $ 0.19      $ 1.84        $ 1.69
common shareholders
Discontinued operations
attributable to common        -         0.13      (0.01   )    0.09    
shareholders
                             $ 0.46     $ 0.32     $ 1.83       $ 1.78    
                                                                   
Cash dividends per common    $ 0.40     $ 0.40     $ 1.60       $ 1.60    
share
                                                                   
Average number of common
shares outstanding:
Basic                         45.9      45.7      45.8        45.7    
Diluted                       46.1      45.8      46.0        45.8    

MARTIN MARIETTA MATERIALS, INC.
Unaudited Financial Highlights
(In millions)
                                                             
                             Three Months Ended      Year Ended
                             December 31,            December 31,
                              2012      2011      2012        2011    
Net sales:
Aggregates Business:
Mideast Group                $ 101.7     $ 100.2     $ 406.6       $ 395.5
Southeast Group                69.1        65.9        282.2         283.3
West Group                    236.5     157.1     947.7       640.5   
Total Aggregates               407.3       323.2       1,636.5       1,319.3
Business
Specialty Products            50.6      51.5      202.2       200.6   
Total                        $ 457.9    $ 374.7    $ 1,838.7    $ 1,519.9 
                                                                   
Gross profit (loss):
Aggregates Business:
Mideast Group                $ 28.8      $ 26.7      $ 108.9       $ 104.2
Southeast Group                (2.5  )     3.9         10.7          21.0
West Group                    36.2      22.1      134.5       104.8   
Total Aggregates               62.5        52.7        254.1         230.0
Business
Specialty Products             18.2        18.6        77.2          75.4
Corporate                     (4.3  )    (1.4  )    (5.4    )    (3.4    )
Total                        $ 76.4     $ 69.9     $ 325.9      $ 302.0   
                                                                   
Selling, general and
administrative expenses:
Aggregates Business:
Mideast Group                $ 8.9       $ 9.9       $ 36.9        $ 37.7
Southeast Group                5.7         6.5         22.8          26.9
West Group                    14.7      11.9      56.7        43.9    
Total Aggregates               29.3        28.3        116.4         108.5
Business
Specialty Products             2.4         2.3         9.3           9.2
Corporate                     6.3       1.1       12.7        6.4     
Total                        $ 38.0     $ 31.7     $ 138.4      $ 124.1   
                                                                   
Earnings (Loss) from
operations:
Aggregates Business:
Mideast Group                $ 20.7      $ 16.5      $ 75.0        $ 69.7
Southeast Group                (7.9  )     (3.8  )     (13.5   )     (5.9    )
West Group                    22.5      10.4      82.0        63.6    
Total Aggregates               35.3        23.1        143.5         127.4
Business
Specialty Products             15.8        16.3        68.5          66.3
Corporate                     (11.1 )    (18.7 )    (57.0   )    (32.7   )
Total                        $ 40.0     $ 20.7     $ 155.0      $ 161.0   

MARTIN MARIETTA MATERIALS, INC.
Unaudited Financial Highlights
(In millions)
                                                             
                             Three Months Ended      Year Ended
                             December 31,            December 31,
                              2012      2011      2012        2011    
Net sales by product
line:
Aggregates Business:
Aggregates                   $ 318.4     $ 296.8     $ 1,304.0     $ 1,213.6
Asphalt                        18.2        10.2        79.8          47.3
Ready Mixed Concrete           33.7        10.3        116.3         33.0
Road Paving                   37.0      5.9       136.4       25.4    
Total Aggregates              407.3     323.2     1,636.5     1,319.3 
Business
Specialty Products
Business:
Magnesia-Based Chemicals       35.0        37.3        142.9         142.6
Dolomitic Lime                 15.3        13.8        57.6          56.6
Other                         0.3       0.4       1.7         1.4     
Total Specialty Products      50.6      51.5      202.2       200.6   
Business
Total                        $ 457.9    $ 374.7    $ 1,838.7    $ 1,519.9 
                                                                   
Gross profit by product
line:
Aggregates Business:
Aggregates                   $ 57.7      $ 53.2      $ 240.6       $ 223.3
Asphalt                        3.0         0.2         12.1          5.8
Ready Mixed Concrete           (0.6  )     (0.4  )     (1.2    )     (0.2    )
Road Paving                   2.4       (0.3  )    2.6         1.1     
Total Aggregates              62.5      52.7      254.1       230.0   
Business
Specialty Products
Business:
Magnesia-Based Chemicals       12.7        13.4        54.5          50.7
Dolomitic Lime                 5.2         4.9         22.3          24.5
Other                         0.3       0.3       0.4         0.2     
Total Specialty Products      18.2      18.6      77.2        75.4    
Business
Corporate                     (4.3  )    (1.4  )    (5.4    )    (3.4    )
Total                        $ 76.4     $ 69.9     $ 325.9      $ 302.0   
                                                                   
Depreciation                 $ 41.4      $ 41.5      $ 166.9       $ 166.2
Depletion                      1.6         1.2         5.0           3.8
Amortization                  1.2       1.0       5.3         3.4     
                             $ 44.2     $ 43.7     $ 177.2      $ 173.4   

MARTIN MARIETTA MATERIALS, INC.
Balance Sheet Data
(In millions)
                                                                
                                                   December 31,   December 31,
                                                      2012          2011
                                                   (Unaudited)    (Audited)
ASSETS
Cash and cash equivalents                          $   25.4       $   26.0
Accounts receivable, net                               224.1          203.7
Inventories, net                                       332.3          322.6
Other current assets                                   118.6          105.6
Property, plant and equipment, net                     1,753.2        1,774.3
Intangible assets, net                                 666.6          670.8
Other noncurrent assets                                40.7           44.8
Total assets                                       $   3,160.9    $   3,147.8
                                                                  
                                                                  
LIABILITIES AND EQUITY
Current maturities of long-term debt and           $   5.7        $   7.2
short-term facilities
Other current liabilities                              167.6          166.5
Long-term debt (excluding current maturities)          1,042.2        1,052.9
Other noncurrent liabilities                           495.1          472.3
Total equity                                          1,450.3       1,448.9
Total liabilities and equity                       $   3,160.9    $   3,147.8

MARTIN MARIETTA MATERIALS, INC.
Unaudited Statements of Cash Flows
(In millions)
                                                      Year Ended
                                                       December 31
                                                        2012      2011   
Operating activities:
Consolidated net earnings                              $ 85.5       $ 83.6
Adjustments to reconcile consolidated net earnings
to net cash provided by operating activities:
Depreciation, depletion and amortization                 177.2        173.4
Stock-based compensation expense                         7.8          11.5
Gains on divestitures and sales of assets                (1.0   )     (15.5  )
Deferred income taxes                                    13.9         11.3
Excess tax benefits from stock-based compensation        (0.8   )     -
Other items, net                                         2.2          1.6
Changes in operating assets and liabilities, net of
effects of acquisitions and divestitures:
Accounts receivable, net                                 (20.3  )     (19.4  )
Inventories, net                                         (9.6   )     (5.1   )
Accounts payable                                         (8.7   )     30.4
Other assets and liabilities, net                       (23.5  )    (12.7  )
                                                                    
Net cash provided by operating activities               222.7      259.1  
                                                                    
Investing activities:
Additions to property, plant and equipment               (151.0 )     (155.4 )
Acquisitions, net                                        (0.2   )     (91.6  )
Proceeds from divestitures and sales of assets           10.0         8.1
Loan to affiliate                                       (2.0   )    -      
                                                                    
Net cash used for investing activities                  (143.2 )    (238.9 )
                                                                    
Financing activities:
Borrowings of long-term debt                             181.0        495.0
Repayments of long-term debt                             (193.7 )     (470.5 )
Change in bank overdraft                                 -            (2.1   )
Dividends paid                                           (73.8  )     (73.6  )
Debt issue costs                                         (0.6   )     (3.3   )
Issuances of common stock                                7.0          1.4
Purchase of remaining interest in existing               -            (10.4  )
subsidiaries
Distributions to owners of noncontrolling interests      (0.8   )     (1.0   )
Excess tax benefits from stock-based compensation       0.8        -      
                                                                    
Net cash used for financing activities                  (80.1  )    (64.5  )
                                                                    
Net decrease in cash and cash equivalents                (0.6   )     (44.3  )
Cash and cash equivalents, beginning of period          26.0       70.3   
                                                                    
Cash and cash equivalents, end of period               $ 25.4      $ 26.0   

MARTIN MARIETTA MATERIALS, INC.
Unaudited Operational Highlights
                                  
                                    Three Months Ended   Year Ended
                                    December 31, 2012    December 31, 2012
                                    Volume    Pricing    Volume      Pricing
Volume/Pricing Variance ^(1)
Heritage Aggregates Product Line:
^(2)
Mideast Group                       1.2    %  0.5    %   1.8     %   0.7     %
Southeast Group                     1.7    %  2.9    %   (4.2    %)  3.8     %
West Group                          8.7    %  1.3    %   6.2     %   4.2     %
Heritage Aggregates Operations      5.0    %  1.0    %   2.9     %   2.5     %
Aggregates Product Line ^(3)        5.4    %  (0.3   %)  2.6     %   0.8     %
                                                                     
                                    Three Months Ended   Year Ended
                                    December 31,         December 31,
Shipments (tons in thousands)       2012     2011      2012       2011    
Heritage Aggregates Product Line:
^(2)
Mideast Group                       9,174     9,065      36,135      35,480
Southeast Group                     5,261     5,173      21,674      22,627
West Group                          15,435   14,200    64,297     60,554  
Heritage Aggregates Operations      29,870    28,438     122,106     118,661
Acquisitions                        1,690     150        6,186       150
Divestitures ^(4)                   1        1,352     39         6,263   
Aggregates Product Line ^(3)        31,561   29,940    128,331    125,074 

(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.

                                         Three Months Ended Year Ended
                                          December 31,       December 31,
                                          2012     2011     2012     2011
Unit Shipments by Product Line:
                                                                       
Aggregates tons - external customers      30,493    29,429   123,873   122,857
Internal aggregates tons used in other    1,068     511      4,458     2,217
product lines
Total aggregates tons                     31,561    29,940   128,331   125,074
                                                                       
                                                                       
Ready Mixed Concrete - cubic yards        419       148      1,481     502
                                                                       
                                                                       
Asphalt tons - external customers         333       268      1,662     1,262
Internal asphalt tons used in road        395       36       1,598     183
paving business
Total asphalt tons                        728       304      3,260     1,445
                                                                       
                                                                       
Average unit sales price by product
line (including internal sales):
                                                                       
Aggregates                                $ 10.32   $ 10.36  $ 10.33   $ 10.24
Ready Mixed Concrete                      $ 78.98   $ 69.21  $ 77.24   $ 65.37
Asphalt                                   $ 44.13   $ 40.53  $ 41.57   $ 39.24

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 months and years ended December 31, 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      Three Months Ended              Year Ended
with
Generally
Accepted
Accounting      December 31,                    December 31,
Principles
                  2012          2011          2012          2011     
Gross profit    $  76.4        $  69.9        $  325.9       $  302.0    
Total           $  504.1       $  421.0       $  2,037.6     $  1,713.8  
revenues
Gross margin      15.2   %       16.6   %       16.0     %     17.6     %
                                                                
                Three Months Ended              Year Ended
                December 31,                    December 31,
Gross Margin
Excluding
Freight and       2012          2011          2012          2011     
Delivery
Revenues
                                                                
Gross profit    $  76.4        $  69.9        $  325.9       $  302.0    
Total           $  504.1        $  421.0        $  2,037.6      $  1,713.8
revenues
Less:
Freight and       (46.2  )       (46.3  )       (198.9   )     (193.9   )
delivery
revenues
Net sales       $  457.9       $  374.7       $  1,838.7     $  1,519.9  
Gross margin
excluding
freight and       16.7   %       18.7   %       17.7     %     19.9     %
delivery
revenues
                                                                
Operating
Margin in
Accordance      Three Months Ended              Year Ended
with
Generally
Accepted
Accounting      December 31,                    December 31,
Principles
                  2012          2011          2012          2011     
Earnings
from            $  40.0        $  20.7        $  155.0       $  161.0    
operations
Total           $  504.1       $  421.0       $  2,037.6     $  1,713.8  
revenues
Operating         7.9    %       4.9    %       7.6      %     9.4      %
margin
                                                                
                Three Months Ended              Year Ended
Operating
Margin
Excluding       December 31,                    December 31,
Freight and
Delivery
Revenues
                  2012          2011          2012          2011     
Earnings
from            $  40.0        $  20.7        $  155.0       $  161.0    
operations
Total           $  504.1        $  421.0        $  2,037.6      $  1,713.8
revenues
Less:
Freight and       (46.2  )       (46.3  )       (198.9   )     (193.9   )
delivery
revenues
Net sales       $  457.9       $  374.7       $  1,838.7     $  1,519.9  
Operating
margin
excluding         8.7    %       5.5    %       8.4      %     10.6     %
freight and
delivery
revenues

Consolidated gross margin excluding freight and delivery revenues and
excluding the effect of vertically integrated businesses represents a non-GAAP
financial measure. Management presents this measure to provide more
information for investors and analysts to use when forecasting gross margin
for the aggregates product line.

The following reconciles consolidated total revenues and consolidated gross
profit in accordance with generally accepted accounting principles to
consolidated net sales and consolidated gross profit, both excluding the
impact of vertically integrated businesses. These adjusted amounts are then
used to calculate consolidated gross margin excluding freight and delivery
revenues and excluding the impact of vertically integrated businesses:


                                                          Three Months Ended
                                                            December 31, 2012
Consolidated total revenues                                    $   504.1
Less: Freight and delivery revenues                                 46.2
Less: Net sales for vertically integrated businesses               88.9    
Consolidated net sales excluding net sales at                   $   369.0   
vertically integrated businesses
                                                                
Consolidated gross profit                                       $   76.4
Gross profit for vertically integrated businesses                  4.8     
Consolidated gross profit excluding gross profit at             $   71.6    
vertically integrated businesses
                                                                
Consolidated gross margin excluding freight and
delivery revenues and excluding impact of vertically               19.4    %
integrated businesses

MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures (continued)
(Dollars, other than earnings per share amounts, and number of shares in
millions)
                                                       
                                                                
Earnings per diluted share excluding the impact of business development
expenses and net cash provided by operating activities excluding the impact of
business development expenses and the impact of financing working capital for
Colorado operations represent non-GAAP financial measures. Management presents
these measures to provide more consistent information for investors and
analysts to use when comparing earnings per diluted share for the years ended
December 31, 2012 and 2011, and net cash provided by operating activities for
the year ended December 31, 2012, with the respective prior periods and when
forecasting future operating results and cash flows.
                                                                
The following presents the calculation of the earnings per diluted share
impact of business development expenses and reconciles earnings per diluted
share in accordance with generally accepted accounting principles to earnings
per diluted share excluding the impact of business development expenses:

                                                                
                                Year Ended December 31,
                                      2012                          2011
Business development            $      35.1                     $     18.6
expenses
Income tax benefit                    13.9                          7.2
After-tax impact of
business development            $      21.2                     $     11.4
expenses
Diluted average number
of common shares                      46.0                          45.8
outstanding
Earnings per diluted
share impact of business        $      0.46                     $     0.25
development expenses
                                                                
                                                                
The following reconciles earnings per diluted share in accordance with
generally accepted accounting principles to earnings per diluted share
excluding the impact of business development expenses:

                                Year Ended December 31,
                                      2012                          2011
Earnings per diluted
share in accordance with        $      1.83                     $     1.78
generally accepted
accounting principles
Add back: Earnings per
diluted share impact of               0.46                          0.25
business development
expenses
Earnings per diluted
share excluding the             $      2.29                     $     2.03
impact of business
development expenses
                                                                
                                                                
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
and the impact of financing working capital for Colorado operations:

                                Year Ended
                               December 31, 2012
Net cash provided by
operating activities in
accordance with                 $      222.7
generally accepted
accounting principles
Add back: Impact of
business development                   38.0
expenses on operating
cash flow
Impact of financing
working capital for                   23.0
Colorado operations
Net cash provided by
operating activities
excluding the impact of         $      283.7
business development
expenses

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 months and year ended December 31, 2012, and 2011.

                                       Three Months Ended  Year Ended
                                        December 31,         December 31,
                                          2012    2011     2012    2011
Earnings Before Interest, Income
Taxes, Depreciation, Depletion and      $  83.4    $ 74.4    $ 329.9   $ 335.9
Amortization (EBITDA)
                                                                       
A reconciliation of Net Earnings
Attributable to Martin Marietta
Materials, Inc. to EBITDA is as
follows:
                                                                       
                                        Three Months Ended   Year Ended
                                        December 31,         December 31,
                                          2012     2011     2012     2011
Net Earnings Attributable to Martin     $  21.5    $ 14.8    $ 84.5    $ 82.4
Marietta Materials, Inc.
Add back:
Interest Expense                           13.4      13.3      53.3      58.6
Income Tax Expense for Controlling         4.7       3.0       16.6      23.1
Interests
Depreciation, Depletion and               43.8     43.3     175.5    171.8
Amortization Expense
EBITDA                                  $  83.4    $ 74.4    $ 329.9   $ 335.9

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 3.75 times as of December 31, 2012, with certain
exceptions related to qualifying acquisitions, as defined.

                                                     
The following presents the calculation of Consolidated Debt-to-Consolidated
EBITDA, as defined, for the trailing-twelve months at December 31, 2012.
For supporting calculations, refer to Corporation's website at
www.martinmarietta.com.
                                               Twelve-Month Period
                                               January 1, 2012 to
                                               December 31, 2012
Earnings from continuing
operations attributable to Martin                    $     84.9
Marietta Materials, Inc.
Add back:
Interest expense                                           53.3
Income tax expense                                         16.8
Depreciation, depletion and                                172.7
amortization expense
Stock-based compensation expense                           7.8
Deduct:
Interest income                                           (0.4           )
Consolidated EBITDA, as defined                      $     335.1          
                                                     
Consolidated Debt, including debt
guaranteed by the Corporation, at                    $     1,074.3
December 31, 2012
Less: Unrestricted cash and cash
equivalents in excess of $50 at                           -              
December 31, 2012
Consolidated Net Debt, as defined,                   $     1,074.3        
at December 31, 2012
                                                     
Consolidated Debt-to-Consolidated
EBITDA, as defined, at December                           3.21 times     
31, 2012 for the trailing
twelve-month EBITDA

Contact:

Martin Marietta Materials, Inc.
Anne H. Lloyd, 919-783-4660
Executive Vice President, Chief
Financial Officer and Treasurer
www.martinmarietta.com
 
Press spacebar to pause and continue. Press esc to stop.