Vulcan Announces Full Year And Fourth Quarter 2012 Earnings

         Vulcan Announces Full Year And Fourth Quarter 2012 Earnings

Continued Improvement in Aggregates Profitability Driven by Higher Pricing and
Effective Cost Control

PR Newswire

BIRMINGHAM, Ala., Feb. 14, 2013

BIRMINGHAM, Ala., Feb. 14, 2013 /PRNewswire/ --Vulcan Materials Company
(NYSE: VMC), the nation's largest producer of construction aggregates, today
announced earnings for 2012.

(Logo: http://photos.prnewswire.com/prnh/20090710/CL44887LOGO)

Full Year Highlights

  oAdjusted EBITDA increased $59 million on flat revenues.
  oGross profit increased $50 million and gross profit margins improved 210
    basis points.
  oAggregates segment gross profit margins improved 270 basis points from the
    prior year due to lower unit cost of sales and higher pricing.

       oAggregates shipments declined 1 percent and pricing increased 2
         percent.
       oCash gross profit per ton increased 5 percent.

  oSAG expenses were $259 million versus $290 million in the prior year.
  oCash earnings were $210 million, an increase of 8 percent from the prior
    year.
  oGross cash proceeds of $174 million were realized from asset sales.
  oThe Company retired $135 million of debt as scheduled.

Don James, Chairman and Chief Executive Officer, said, "Our full year results
demonstrate our employees' efforts in managing those aspects of the business
that are under their control. Despite slightly weaker aggregates shipments,
we achieved a 17 percent increase in Adjusted EBITDA, reflecting aggressive
actions to reduce costs and to take advantage of pricing opportunities across
the markets we serve." 

Fourth Quarter 2012 Results Summary

  oFourth quarter EBITDA, including gains on sale of real estate and
    businesses, restructuring charges and exchange offer costs, was $137
    million as compared to $85 million in the prior year. Excluding these
    items, Adjusted EBITDA was $90 million versus $95 million in the prior
    year.
  oGross profit increased $5 million, or 7 percent, and gross profit margins
    improved 90 basis points on slightly lower net sales.

       oAggregates segment gross profit increased $2 million and margins
         improved 40 basis points despite a 3 percent decline in shipments
         versus the prior year.
       oAggregates pricing increased 4 percent versus the prior year.
       oVolumes in ready-mixed concrete and cement increased 11 percent and 8
         percent, respectively, due to improving levels of private
         construction.

  oEarnings from continuing operations were $0.03 per diluted share versus a
    loss of $0.20 per diluted share in the prior year.

Commentary on Fourth Quarter 2012 Segment Results
Aggregates segment gross profit increased $2 million from the prior year's
fourth quarter and gross profit margin expanded due in part to a 4 percent
increase in pricing and despite a 3 percent decline in aggregates shipments.
Aggregates shipments in Florida, North Carolina, Texas and Arizona showed
strength, each increasing more than 10 percent versus the prior year. Some
markets reported declines versus the prior year's fourth quarter, due in part
to very favorable weather in December 2011, as compared to more normalized
weather in 2012. Shipments in Virginia, California, Georgia and the Midwest
were lower versus the prior year due in part to less large-project work than
in the prior year. Virtually all of the Company's markets realized increased
pricing. Improved productivity in key energy efficiency metrics helped offset
a 7 percent increase in the unit cost for diesel fuel.

Gross profit from non-aggregates businesses improved approximately $3 million
to a loss of $2 million. Asphalt Mix segment gross profit was $7 million
versus $5 million in the prior year. Unit profitability, as measured by
materials margin, increased 13 percent despite a 4 percent increase in the
unit cost of liquid asphalt. Asphalt volumes decreased 11 percent from the
prior year's fourth quarter. Concrete segment gross profit improved $3
million due in part to an 11 percent increase in shipments. Cement segment
earnings in the fourth quarter were a loss of $1 million versus earnings of $1
million in the prior year due primarily to the effects of an unscheduled
production outage.

2013 Outlook
"Our outlook for another year of earnings growth is supported by improved
pricing, aggressive cost control and some volume growth," said Mr. James.
"Our expectations are for aggregates margins and profitability to continue to
expand.

"We believe economic and construction-related fundamentals that drive demand
for our products are continuing to improve from the historically low levels
created by the economic downturn. The passage of the new federal highway bill
in July 2012 is providing stability and predictability to future highway
funding. Through the first three months of fiscal year 2013, obligation of
federal funds for future highway projects is up sharply versus the prior year,
a positive indicator of growth in future contract awards. The large increase
in TIFIA (Transportation Infrastructure Finance and Innovation Act) funding
contained in the new highway bill should also positively impact demand going
forward.

"Leading indicators of private construction activity, specifically residential
housing starts and contract awards for nonresidential buildings, continue to
improve. Consequently, aggregates demand in private construction is growing.
We are seeing tangible evidence of this growth in several key states,
including Florida, Texas, California, Georgia and Arizona. Growth in
residential construction has historically been a leading indicator of other
construction end uses." 

Mr. James continued, "Demand for aggregates in our markets is expected to grow
by mid-single digits in 2013. Aggregates demand from residential construction
is expected to increase double-digits while demand from private
non-residential buildings is expected to increase high single-digits versus
2012. Our current expectation for growth in aggregates demand into public
construction, including highways and other infrastructure, is limited given
the lead time required from award of contract to the start of construction.
As we look at the projects that could impact our 2013 aggregates volumes, we
see a disproportionately greater number of large, discrete highway and
industrial projects. The timing of these projects is difficult to predict at
this point in the year. As a result, our full year shipments in 2013 are
expected to increase 1 to 5 percent with most of the expected year-over-year
growth to occur in the second half of the year, due in part to favorable
weather in the first quarter of 2012.

"In keeping with our successful efforts to offset the earnings effect of lower
volumes in recent quarters, we will continue our focus on reducing
controllable costs and achieving improved pricing. In 2012, we achieved a 2
percent decrease in aggregates unit cost of sales despite the effects of lower
volumes. The geographic breadth of pricing gains achieved in 2012 reinforces
our expectations for continued growth in pricing in 2013. We expect full year
freight-adjusted price growth of approximately 4 percent in 2013.

"Additionally, earnings in each of our non-aggregates segments should improve
versus the prior year. Asphalt materials margin increased throughout 2012 and
should contribute to earnings growth in 2013. Concrete volumes and materials
margin are improving as housing starts continue recovering in key states.
Cement earnings should improve in 2013 due mostly to lower production costs.
As a result, collectively, full year earnings from these segments are expected
to contribute significantly to earnings growth in 2013.

"We are on track to achieve our Profit Enhancement goals for 2013. These
pricing and cost initiatives should allow us to more than offset the effects
of higher costs of key materials and supplies and maintaining competitive
wages. In 2012, we announced a number of asset sales that generated total
gross proceeds of $174 million. The Company continues to work on additional
asset sales. However, the ultimate timing of such transactions is difficult
to predict. The Company remains committed to completing transactions designed
to strengthen Vulcan's balance sheet, unlock capital for more productive uses,
improve our operating results and create value for shareholders."

Conference Call
Vulcan will host a conference call at 10:00 a.m. CST on February 14, 2013.
Investors and other interested parties in the U.S. may access the
teleconference live by calling 866.711.8198 approximately 10 minutes before
the scheduled start. International participants can dial 617.597.5327. The
access code is 23352917. 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 February 21, 2013.

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 Vulcan's effective tax rate; 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;
Vulcan's increasing reliance on information technology; 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    Twelve Months Ended
 Consolidated Statements of        December 31           December 31
 Earnings
 (Condensed and unaudited)         2012       2011       2012       2011
 Net sales                         $        $         $          $
                                   574,885   578,189   2,411,243  2,406,909
 Delivery revenues                 33,546     36,437     156,067    157,641
 Total revenues                    608,431    614,626    2,567,310  2,564,550
 Cost of goods sold                495,679    503,834    2,077,217  2,123,040
 Delivery costs                    33,546     36,437     156,067    157,641
 Cost of revenues                  529,225    540,271    2,233,284  2,280,681
 Gross profit                      79,206     74,355     334,026    283,869
 Selling, administrative and       66,873     71,702     259,140    289,993
 general expenses
 Gain on sale of property, plant &
 equipment
 and businesses,    46,768     2,922      68,455     47,752
 net
 Recovery from legal settlement    -          -          -          46,404
 Restructuring charges             (540)      (9,994)    (9,557)    (12,971)
 Exchange offer costs              (49)       (2,227)    (43,380)   (2,227)
 Other operating income (expense), (2,980)    1,118      (5,623)    (9,390)
 net
 Operating earnings (loss)         55,532     (5,528)    84,781     63,444
 Other nonoperating income, net    2,531      2,386      6,727      2
 Interest expense, net             52,928     53,346     211,926    217,184
 Earnings (loss) from continuing
 operations
 before income      5,135      (56,488)   (120,418)  (153,738)
 taxes
 Provision for (benefit from)      647        (30,545)   (66,492)   (78,483)
 income taxes
 Earnings (loss) from continuing   4,488      (25,943)   (53,926)   (75,255)
 operations
 Earnings (loss) on discontinued   (1,005)    (1,921)    1,333      4,477
 operations, net of tax
 Net earnings (loss)               $      $        $        $  
                                   3,483      (27,864)   (52,593)   (70,778)
 Basic earnings (loss) per share:
 Continuing         $      $       $       $   
 operations                         0.03     (0.20)    (0.42)    (0.58)
 Discontinued       -          (0.02)     0.01       0.03
 operations
 Net earnings       $      $       $       $   
 (loss) per share                   0.03     (0.22)    (0.41)    (0.55)
 Diluted earnings (loss) per
 share:
 Continuing         $      $       $       $   
 operations                         0.03     (0.20)    (0.42)    (0.58)
 Discontinued       -          (0.02)     0.01       0.03
 operations
 Net earnings       $      $       $       $   
 (loss) per share                   0.03     (0.22)    (0.41)    (0.55)
 Weighted-average common shares
  outstanding:
 Basic              129,954    129,502    129,745    129,381
 Assuming dilution  131,008    129,502    129,745    129,381
 Cash dividends declared per share
 of common stock    $      $      $      $    
                                    0.01     0.01       0.04       0.76
 Depreciation, depletion,
 accretion and
 amortization       $       $        $         $ 
                                   78,568     88,048    331,959   361,719
 Effective tax rate from           12.6%      54.1%      55.2%      51.0%
 continuing operations

                                                            Table B
 Vulcan Materials Company
 and Subsidiary Companies
                                     (Amounts in thousands, except per share
                                     data)

                                     
 Consolidated Balance Sheets         December 31            December 31
 (Condensed and unaudited)           2012                   2011
 Assets
 Cash and cash equivalents           $  275,478           $  155,839
 Restricted cash                     -                      81
 Accounts and notes receivable:
  Accounts and notes receivable,     303,178                321,391
  gross
  Less: Allowance for doubtful       (6,198)                (6,498)
  accounts
      Accounts and notes             296,980                314,893
      receivable, net
 Inventories:
  Finished products                  262,886                260,732
  Raw materials                      27,758                 23,819
  Products in process                5,963                  4,198
  Operating supplies and other       38,415                 38,908
      Inventories                    335,022                327,657
 Current deferred income taxes       40,696                 43,032
 Prepaid expenses                    21,713                 21,598
 Assets held for sale                15,083                 -
      Total current assets           984,972                863,100
 Investments and long-term           42,081                 29,004
 receivables
 Property, plant & equipment:
  Property, plant & equipment, cost  6,666,617              6,705,546
  Less: Reserve for depr., depl. &   (3,507,432)            (3,287,367)
  amort
      Property, plant & equipment,   3,159,185              3,418,179
      net
 Goodwill                            3,086,716              3,086,716
 Other intangible assets, net        692,532                697,502
 Other noncurrent assets             161,113                134,813
      Total assets                   $ 8,126,599           $ 8,229,314
 Liabilities and Equity
 Current maturities of long-term     $  150,602           $  134,762
 debt
 Trade payables and accruals         113,337                103,931
 Other current liabilities           171,671                167,560
 Liabilities of assets held for      801                    -
 sale
      Total current liabilities      436,411                406,253
 Long-term debt                      2,526,401              2,680,677
 Noncurrent deferred income taxes    657,367                732,528
 Deferred revenue                    73,583                 -
 Other noncurrent liabilities        671,775                618,239
      Total liabilities             4,365,537              4,437,697
 Equity:
  Common stock, $1 par value         129,721                129,245
  Capital in excess of par value     2,580,209              2,544,740
  Retained earnings                  1,276,649              1,334,476
  Accumulated other comprehensive    (225,517)              (216,844)
  loss
      Total equity                   3,761,062              3,791,617
      Total liabilities and equity   $ 8,126,599           $ 8,229,314

                                                                Table C
Vulcan Materials Company
and Subsidiary Companies
                                                (Amounts in thousands)

                                                
                                                Twelve Months Ended
Consolidated Statements of Cash Flows           December 31
(Condensed and unaudited)                       2012            2011
Operating Activities
Net loss                                        $   (52,593)  $   (70,778)
Adjustments to reconcile net loss to
 net cash provided by operating activities:
  Depreciation, depletion, accretion and        331,959         361,719
  amortization
  Net gain on sale of property, plant &         (78,654)        (58,808)
  equipment and businesses
  Proceeds from sale of future production, net  73,583          -
  of transaction costs
  Contributions to pension plans                (4,509)         (4,892)
  Share-based compensation                      17,474          18,454
  Deferred tax provision                        (69,830)        (93,739)
  Cost of debt purchase                         -               19,153
  Changes in assets and liabilities before
  initial
       effects of business acquisitions and     20,378          (11,906)
       dispositions
Other, net                                      667             9,840
       Net cash provided by operating           238,475         169,043
       activities
Investing Activities
Purchases of property, plant & equipment        (93,357)        (98,912)
Proceeds from sale of property, plant &         80,829          13,675
equipment
Proceeds from sale of businesses, net of        21,166          74,739
transaction costs
Payment for businesses acquired, net of         -               (10,531)
acquired cash
Other, net                                      1,761           1,550
       Net cash provided by (used for)          10,399          (19,479)
       investing activities
Financing Activities
Net short-term payments                         -               (285,500)
Payment of current maturities and long-term     (134,780)       (743,075)
debt
Cost of debt purchase                           -               (19,153)
Proceeds from issuance of long-term debt        -               1,100,000
Debt issuance costs                             -               (27,426)
Proceeds from settlement of interest rate swap  -               23,387
agreements
Proceeds from issuance of common stock          -               4,936
Dividends paid                                  (5,183)         (98,172)
Proceeds from exercise of stock options         10,462          3,615
Other, net                                      266             122
       Net cash used for financing activities   (129,235)       (41,266)
Net increase in cash and cash equivalents       119,639         108,298
Cash and cash equivalents at beginning of year  155,839         47,541
Cash and cash equivalents at end of year        $  275,478    $  155,839



                                                                  Table D
Segment Financial Data and Unit Shipments
                               (Amounts in thousands, except per unit data)
                               Three Months Ended    Twelve Months Ended
                               December 31           December 31
                               2012       2011       2012         2011
Total Revenues
      Aggregates segment (a)   $411,496   $409,251   $1,729,419   $1,734,005
      Intersegment sales       (35,311)   (30,802)   (148,230)    (142,572)
      Net sales                376,185    378,449    1,581,189    1,591,433
      Concrete segment (b)     103,085    92,862     406,370      374,671
      Intersegment sales       -          -          -            -
      Net sales                103,085    92,862     406,370      374,671
      Asphalt Mix segment      84,860     94,530     378,126      398,962
      Intersegment sales       -          -          -            -
      Net sales                84,860     94,530     378,126      398,962
      Cement segment (c)       20,998     19,429     84,567       71,920
      Intersegment sales       (10,243)   (7,081)    (39,009)     (30,077)
      Net sales                10,755     12,348     45,558       41,843
      Total
      Net sales                574,885    578,189    2,411,243    2,406,909
      Delivery revenues        33,546     36,437     156,067      157,641
      Total revenues           $608,431   $614,626   $2,567,310   $2,564,550
Gross Profit
      Aggregates               $ 81,332  $ 79,196  $  352,100  $  306,203
      Concrete                 (8,384)    (11,041)   (38,234)     (43,368)
      Asphalt Mix              7,472      5,157      22,970       25,575
      Cement                   (1,214)    1,043      (2,810)      (4,541)
      Total gross profit       $ 79,206  $ 74,355  $  334,026  $  283,869
Depreciation, depletion, accretion and
amortization
      Aggregates               $ 57,044  $ 63,993  $  240,704  $  266,968
      Concrete                 9,211      11,556     41,316       47,659
      Asphalt Mix              2,097      2,132      8,687        7,740
      Cement                   4,508      4,897      18,055       17,801
      Other                    5,708      5,470      23,197       21,551
      Total DDA&A              $ 78,568  $ 88,048  $  331,959  $  361,719
Unit Shipments
      Aggregates customer tons 30,963     32,005     130,520      132,394
      Internal tons (d)        2,441      2,564      10,440       10,637
      Aggregates - tons        33,404     34,569     140,960      143,031
      Ready-mixed concrete -   1,075      972        4,223        3,883
      cubic yards
      Asphalt Mix - tons       1,493      1,686      6,701        7,208
      Cement customer tons     114        129        442          380
      Internal tons (d)        130        97         497          413
      Cement - tons            244        226        939          793
Average Unit Sales Price (including
internal sales)
      Aggregates               $         $         $          $  
      (freight-adjusted) (e)   10.45     10.07     10.44       10.25
      Ready-mixed concrete     $         $         $          $  
                               91.38     91.50     92.19       92.16
      Asphalt Mix              $         $         $          $  
                               56.07     55.29     55.33       54.71
      Cement                   $         $         $          $  
                               77.20     69.21     77.77       73.66


(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 (i.e.,
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 divided by
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 twelve months ended December 31 is summarized below:
                                                        (Amounts in thousands)
                                                        2012         2011
Supplemental Disclosure of Cash Flow Information
Cash paid (refunded) during the period for:
        Interest                                        $          $ 
                                                        207,745     205,088
        Income taxes                                    20,374       (29,874)
Supplemental Schedule of Noncash Investing and
Financing Activities
Liabilities assumed in business acquisition             -            13,912
Accrued liabilities for purchases of property, plant &  9,627        7,226
equipment
Fair value of noncash assets and liabilities exchanged  -            25,994
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," "aggregates segment 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, aggregates segment 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)
                                                        Twelve Months Ended
                                                        December 31
                                                        2012         2011
Net cash provided by operating activities               $          $ 
                                                        238,475     169,043
Purchases of property, plant & equipment                (93,357)     (98,912)
Free cash flow                                          $          $  
                                                        145,118     70,131
Aggregates Segment Cash Gross Profit
Aggregates segment cash gross profit adds back noncash charges for
depreciation, depletion, accretion and amortization (DDA&A) to aggregates
segment gross profit
                                   (Amounts in thousands)
                                   Three Months Ended   Twelve Months Ended
                                   December 31          December 31
                                   2012       2011      2012         2011
Aggregates segment gross profit    $       $      $          $ 
                                   81,332    79,196   352,100     306,203
Aggregates segment DDA&A           57,044     63,993    240,704      266,968
Aggregates segment cash gross      $        $       $          $ 
profit                             138,376   143,189  592,804     573,171

                                                                     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         Twelve Months Ended
                               December 31                December 31
                               2012            2011       2012       2011
Reconciliation of Net Loss
to EBITDA and Cash Earnings
Net earnings (loss)            $           $        $        $  
                               3,483           (27,864)  (52,593)  (70,778)
Provision for (benefit from)   647             (30,545)   (66,492)   (78,483)
income taxes
Interest expense, net          52,928          53,346     211,926    217,184
(Earnings) loss on
discontinued operations, net   1,005           1,921      (1,333)    (4,477)
of tax
EBIT                           58,063          (3,142)    91,508     63,446
Plus: Depreciation,
depletion, accretion and       78,568          88,048     331,959    361,719
amortization
EBITDA                         $   136,631  $       $        $  
                                               84,906     423,467   425,165
Less: Interest expense, net   (52,928)        (53,346)   (211,926)  (217,184)
 Current taxes       (3,983)         (4,041)    (1,913)    (14,318)
Cash earnings                  $    79,720  $       $        $  
                                               27,519     209,628   193,663
Adjusted EBITDA and Adjusted
EBIT
EBITDA                         $   136,631  $       $        $  
                                               84,906     423,467   425,165
Recovery from legal            -               -          -          (46,404)
settlement
Gain on sale of real estate    (46,801)        (2,482)    (65,122)   (42,141)
and businesses
Restructuring charges          540             9,994      9,557      12,971
Exchange offer costs           49              2,227      43,380     2,227
Adjusted EBITDA                $    90,419  $       $        $  
                                               94,645     411,282   351,818
Less: Depreciation,
depletion, accretion and       78,568          88,048     331,959    361,719
amortization
Adjusted EBIT                  $    11,851  $      $       $   
                                               6,597      79,323     (9,901)

EBITDA Bridge                               Three Months     Twelve Months
                                             Ended            Ended
(Amounts in millions)                        December 31      December 31
                                             EBITDA           EBITDA
Continuing Operations - 2011 Actual          $          $     
                                             85              425
Plus:        Recovery from legal settlement  -                (46)
             Gain on sale of real estate     (2)              (42)
             and businesses
             Restructuring charges           10               13
             Exchange offer costs            2                2
2011 Adjusted EBITDA from continuing         95               352
operations
Increase / (Decrease) due to:
Aggregates:         Volumes                  (6)              (12)
                    Selling prices           13               27
                    Lower costs and other    (12)             5
                    items
Concrete                                     -                (2)
Asphalt Mix                                  2                (2)
Cement                                       (2)              3
Lower selling, administrative and general    5                31
expenses
Other                                        (4)              9
2012 Adjusted EBITDA from continuing         91               411
operations
Plus:        Gain on sale of real estate     47               65
             and businesses
             Restructuring charges           (1)              (10)
             Exchange offer costs            -                (43)
Continuing Operations - 2012 Actual          $           $     
                                             137             423





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