Why is this 8-K being filed, and are these figures audited?

CRH furnished the quarterly U.S. GAAP information under Regulation FD to publish it publicly. Only the full-year 2023 figures are audited, and the complete audited statements and notes appear in the company's Form 10-K. The quarterly breakdown is unaudited. The furnished material is not deemed 'filed' under Section 18 of the Exchange Act.

What drove the weaker fourth quarter in 2023?

Q4 revenue of $8.69 billion was down from $10.13 billion in Q3, which is typical seasonality for construction materials. Operating income dropped to $783 million, partly because of a $357 million impairment charge (about $62 million in Americas Materials Solutions and $295 million in Europe Materials Solutions for the full year). Q4 also included a $135 million net loss attributable to noncontrolling interests and a $144 million tax expense. The filing does not provide prior-year comparisons, so year-over-year trends cannot be assessed from this document alone.

How strong is CRH's balance sheet and liquidity position?

At December 31, 2023, CRH held $6.34 billion of cash and cash equivalents and had total debt of about $11.6 billion, implying net debt of roughly $5.3 billion. Against Adjusted EBITDA of $6.18 billion, this is a modest leverage level. Current debt maturities were $1.87 billion. Long-term debt rose during the year, from $7.58 billion in Q1 to $9.78 billion at year-end, while shareholder equity attributable to CRH plc was $20.85 billion.

How did CRH allocate its cash in 2023?

Operating cash flow of $5.02 billion funded $1.82 billion of capital expenditures, $640 million of acquisitions, $3.07 billion of share repurchases and $940 million of dividends. Net debt issuance was about $1.7 billion ($3.16 billion of issuances less $1.46 billion of repayments). Share repurchases were heavily weighted to the second half of the year, and treasury stock rose from $487 million at March 31 to $2.20 billion at year-end.

CRH 8-K: Regulation FD — Apr 11, 2024

01—Abstract

Summary

Summary of the 8-K filed April 11, 2024. Cited figures are marked; the original filing is the authoritative source.

CRH plc published its unaudited quarterly and audited full-year 2023 U.S. GAAP financial information under Form 8-K (Item 7.01, furnished rather than filed).

The full year showed total revenues of $34.9 billion^a, gross profit of $12.0 billion, operating income of $4.2 billion, and net income attributable to CRH plc of $3.18 billion, or $4.33 per diluted share. Adjusted EBITDA was $6.18 billion. The company's second and third quarters carried most of the earnings, with Q2 and Q3 together generating about $3.5 billion of operating income.

Q4 was considerably weaker, with operating income of $783 million^b after a $357 million impairment charge. Cash generation and capital returns were strong. Operating cash flow was $5.02 billion and capital expenditures were $1.82 billion, leaving roughly $3.2 billion of free cash flow.

CRH returned about $4.0 billion^c to shareholders through $3.07 billion of share repurchases and $0.94 billion of dividends. Year-end cash was $6.3 billion, against total debt of about $11.6 billion (current plus long-term), implying net debt of roughly $5.3 billion. Treasury stock rose sharply during the year as buybacks accelerated, and the share count fell from about 752 million to about 735 million outstanding shares over 2023.

For investors, the filing is primarily a supplementary disclosure that accompanies CRH's Form 10-K, which contains the audited statements and notes. The Q4 impairments of $357 million^d (mainly in Europe Materials Solutions and Americas Materials Solutions) and the $4.0 billion of shareholder returns are the most notable items to monitor. Quarterly figures show the seasonality typical of construction materials, with the first quarter producing a small loss.

02—Key points

Key Highlights

Full-year 2023 revenue of $34.9 billion, with Americas Materials Solutions the largest segment at $15.4 billion and Europe Materials Solutions at $9.7 billion.
Net income attributable to CRH plc of $3.18 billion; diluted EPS of $4.33 for the full year, compared with a basic EPS loss of $0.05 in Q1 2023 and $0.99 in Q4 2023.
Adjusted EBITDA of $6.18 billion for the year, with Americas Materials Solutions contributing $3.06 billion (about half the total).
Q4 2023 operating income fell to $783 million from $1.79 billion in Q3, including a $357 million loss on impairments; Q4 gross profit was $2.95 billion versus $3.76 billion in Q3.
Operating cash flow of $5.02 billion and free cash flow of roughly $3.2 billion (operating cash flow less $1.82 billion of capex).
Shareholder returns of about $4.0 billion in 2023: $3.07 billion of share repurchases and $0.94 billion of dividends.
Year-end cash of $6.34 billion on the balance sheet, against total debt of about $11.6 billion; long-term debt rose to $9.78 billion from $7.58 billion in Q1 2023.

03—Questions

Frequently Asked Questions

Why is this 8-K being filed, and are these figures audited?
CRH furnished the quarterly U.S. GAAP information under Regulation FD to publish it publicly. Only the full-year 2023 figures are audited, and the complete audited statements and notes appear in the company's Form 10-K. The quarterly breakdown is unaudited. The furnished material is not deemed 'filed' under Section 18 of the Exchange Act.
What drove the weaker fourth quarter in 2023?
Q4 revenue of $8.69 billion was down from $10.13 billion in Q3, which is typical seasonality for construction materials. Operating income dropped to $783 million, partly because of a $357 million impairment charge (about $62 million in Americas Materials Solutions and $295 million in Europe Materials Solutions for the full year). Q4 also included a $135 million net loss attributable to noncontrolling interests and a $144 million tax expense. The filing does not provide prior-year comparisons, so year-over-year trends cannot be assessed from this document alone.
How strong is CRH's balance sheet and liquidity position?
At December 31, 2023, CRH held $6.34 billion of cash and cash equivalents and had total debt of about $11.6 billion, implying net debt of roughly $5.3 billion. Against Adjusted EBITDA of $6.18 billion, this is a modest leverage level. Current debt maturities were $1.87 billion. Long-term debt rose during the year, from $7.58 billion in Q1 to $9.78 billion at year-end, while shareholder equity attributable to CRH plc was $20.85 billion.
How did CRH allocate its cash in 2023?
Operating cash flow of $5.02 billion funded $1.82 billion of capital expenditures, $640 million of acquisitions, $3.07 billion of share repurchases and $940 million of dividends. Net debt issuance was about $1.7 billion ($3.16 billion of issuances less $1.46 billion of repayments). Share repurchases were heavily weighted to the second half of the year, and treasury stock rose from $487 million at March 31 to $2.20 billion at year-end.

04—Continue

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