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VMC · Vulcan Materials

19 filings

10-K

VMC 10-K Annual Reports

Vulcan Materials - 19 annual reports

Filing record · 2016–202610-K1110-Q338-K128

2025
Vulcan Materials Annual Report, Year Ended Dec 31, 2025
Vulcan Materials Company (VMC) reported a strong 2025 in its Form 10-K filed February 19, 2026. Total revenues rose $523.4 million, or 7%, to $7,941.1 million, and gross profit increased $175.0 million, or 9%, to $2,174.6 million. Operating earnings grew $255.1 million, or 19%, to $1,619.6 million. Net earnings attributable to Vulcan were $1,076.7 million ($8.11 per diluted share), up 18%, and Adjusted EBITDA rose 13% to $2,323.6 million. Management attributed the results to higher aggregates pricing and shipments, with aggregates cash gross profit per ton up 7% to $11.33. The Aggregates segment drove results, with segment sales up 6% to $6,297.2 million and freight-adjusted sales price up 4.3% to $21.98 per ton on 226.8 million tons shipped. Management guides 2026 to net earnings attributable to Vulcan of $1,100 million to $1,300 million and Adjusted EBITDA of $2,400 million to $2,600 million, with freight-adjusted price improvement of 4% to 6% and capital spending of $750 million to $800 million. The company also agreed to divest its California ready-mixed concrete business and sold its Houston asphalt operations in 2025. Key risks disclosed include the halted operations at Calica in Mexico, where the Mexican government issued shutdown and protected-area decrees, and a pending NAFTA arbitration decision expected in the first half of 2026. The filing also describes the Hewitt Landfill environmental matter, including a LADWP contribution demand presented in January 2026 for which the company cannot reasonably estimate a loss range. Balance sheet metrics were 1.9 times total debt to Adjusted EBITDA and 1.8 times on a net debt basis, with 2025 returns to shareholders of $698.2 million through dividends and share repurchases.
Feb 19, 2026
2024
Vulcan Materials Annual Report, Year Ended Dec 31, 2024
Vulcan Materials Company (VMC) reported 2024 total revenues of $7,417.7 million, down from $7,781.9 million in 2023, while gross profit rose to $1,999.6 million. Net earnings attributable to Vulcan were $911.9 million, or $6.85 per diluted share, compared with $933.2 million ($6.98) a year earlier. Adjusted EBITDA increased to $2,057.2 million from $2,011.3 million, and Aggregates segment cash gross profit per ton reached $10.61, up from $9.46. Aggregates shipments fell to 219.9 million tons from 234.6 million, while freight-adjusted pricing rose 10.8% to $21.08 per ton. The year was shaped by acquisitions and a goodwill impairment. Vulcan closed six business acquisitions for total consideration of $2,297.1 million, including Wake Stone Corporation and Superior Ready Mix, L.P., and recorded an $86.6 million goodwill impairment on a reporting unit with concrete operations acquired from U.S. Concrete. Total debt rose to $5,307.4 million, giving a total debt to Adjusted EBITDA ratio of 2.6 times, and the company issued $2,000.0 million of senior notes in November 2024. Operations at the Calica quarry in Mexico remain halted following Mexican government actions, and Vulcan's NAFTA arbitration claim is expected to receive a decision in the first half of 2025. For 2025, management expects shipments growth of 3% to 5%, freight-adjusted price improvement of 5% to 7%, and Adjusted EBITDA between $2,350 million and $2,550 million, including a $150 million contribution from acquisitions. Net earnings attributable to Vulcan are projected at $1,010 million to $1,170 million, and capital spending is planned at $750 million to $800 million.
Feb 20, 2025
2023
Vulcan Materials Annual Report, Year Ended Dec 31, 2023
Vulcan Materials Company (VMC) reported 2023 results with total revenues of $7,781.9 million, up $466.7 million, or 6%, from 2022, and gross profit of $1,948.5 million, up 25%. Operating earnings rose 50% to $1,427.4 million, and net earnings attributable to Vulcan were $933.2 million, a 62% increase, or $6.98 per diluted share. Adjusted EBITDA was $2,011.3 million, up 24%. Aggregates remains the core business, with segment gross profit of $1,733.6 million, or $7.40 per ton, and freight-adjusted pricing up 15.9% to $19.00 per ton, offset by a 1% decline in shipments to 234.3 million tons. The company generated $1,536.8 million of operating cash flow and ended 2023 with $949.2 million of cash and restricted cash. Total debt was $3,877.8 million, giving total debt to Adjusted EBITDA of 1.9x and net debt to Adjusted EBITDA of 1.5x. Return on invested capital improved 280 basis points to 16.3%. Management's 2024 outlook calls for freight-adjusted price improvement of 10% to 12%, net earnings attributable to Vulcan of $1,070 million to $1,190 million, and Adjusted EBITDA of $2,150 million to $2,300 million. The filing highlights ongoing risk from the Mexican government's May 2022 shutdown of the Calica operations in Quintana Roo, which halted production and sales there. The company has a NAFTA arbitration claim pending, with a decision expected during 2024. Other material matters include the Hewitt Landfill environmental matter, the Lower Passaic River Superfund matter, and Texas Brine litigation. Auditor Deloitte & Touche LLP issued unqualified opinions on the financial statements and internal control over financial reporting.
Feb 22, 2024
2022
Vulcan Materials Annual Report, Year Ended Dec 31, 2022
Vulcan Materials Company (VMC), the nation's largest supplier of construction aggregates (crushed stone, sand and gravel), reported 2022 total revenues of $7,315.2 million, up $1,763.0 million, or 32%, from 2021. Gross profit rose $184.3 million, or 13%, to $1,557.7 million, but operating earnings decreased $59.4 million, or 6%, to $951.4 million. Net earnings attributable to Vulcan fell $95.2 million, or 14%, to $575.6 million ($4.31 per diluted share), while Adjusted EBITDA rose $174.3 million, or 12%, to $1,625.6 million. Aggregates freight-adjusted sales price increased 10.3% to $16.40 per ton, and aggregates gross profit per ton improved to $5.96. Management cited a $104.4 million unfavorable impact from higher diesel fuel costs and the May 2022 Mexican government shutdown of the Calica operations, which removed shipments from Mexico. Balance sheet metrics remained within the stated target: total debt to Adjusted EBITDA was 2.4x (2.3x net), against a long-term target range of 2.0x to 2.5x, and return on invested capital was 13.5%, down from 14.2% in 2021. The company made no share repurchases in 2022, paid dividends of $1.60 per share ($212.6 million), and invested $612.6 million in operating and growth capital. For 2023, management guided to freight-adjusted price growth of 11% to 13%, total shipments down 2% to 6%, Adjusted EBITDA of $1,725 million to $1,875 million, and capital expenditures of $600 million to $650 million. The filing also highlights ongoing legal and political exposure. The NAFTA arbitration over the Calica shutdown is expected to produce a tribunal decision no earlier than 2024, and the Texas Brine and Hewitt Landfill matters remain unresolved. The company also recorded a $50.9 million goodwill impairment and a $16.9 million long-lived asset impairment tied to the sale of its New Jersey, New York and Pennsylvania concrete operations.
Feb 24, 2023
2021
Vulcan Materials Annual Report, Year Ended Dec 31, 2021
Vulcan Materials Company (VMC), the nation's largest supplier of construction aggregates and a major producer of asphalt mix and ready-mixed concrete, reported 2021 total revenues of $5,552.2 million, up $695.4 million, or 14%, from 2020. Gross profit rose $91.9 million, or 7%, to $1,373.4 million, and operating earnings increased $115.1 million, or 13%, to $1,010.8 million. Net earnings attributable to Vulcan were $670.8 million ($5.02 per diluted share), an increase of 15%. Adjusted EBITDA was $1,451.3 million, up 10%. Aggregates shipments rose 7% to 222.9 million tons, freight-adjusted pricing rose 3.0% to $14.87 per ton, and aggregates gross profit per ton reached $5.81. The results include the August 2021 acquisition of U.S. Concrete for $1,634.5 million, which added debt and raised total debt to Adjusted EBITDA to 2.7x against a stated target range of 2.0x to 2.5x. Management expects 2022 net earnings attributable to Vulcan of $800 to $890 million and Adjusted EBITDA of $1,720 to $1,820 million, driven by freight-adjusted price increases of 6% to 8% and shipment growth of 5% to 7%. Management also cites labor shortages, supply chain disruptions, and higher diesel and liquid asphalt costs as headwinds. Capital expenditures are planned at $600 to $650 million. Risk items highlighted in the filing include the Mexican government's actions affecting the Playa del Carmen quarry operations, a pending NAFTA arbitration with a decision expected in the second half of 2022, and legacy environmental and litigation matters including the Hewitt Landfill and Texas Brine cases. The company ended 2021 with $241.5 million of cash and restricted cash, $3,949.6 million of face-value term debt, and investment-grade ratings. It repurchased no shares in 2021 and paid dividends of $1.48 per share, totaling $196.4 million.
Feb 25, 2022
2020
Vulcan Materials Annual Report, Year Ended Dec 31, 2020
Vulcan Materials Company (VMC) reported 2020 total revenues of $4,856.8 million, down 1.5% from $4,929.1 million in 2019, while gross profit rose to $1,281.5 million and operating earnings increased to $895.7 million. Net earnings were $584.5 million ($4.39 per diluted share), a decrease of $33.2 million, or 5%, from 2019, driven in part by a $22.7 million pension settlement charge and a higher effective tax rate of 20.9%. Adjusted EBITDA reached a record $1,323.5 million, up $53.5 million, or 4%. Aggregates freight-adjusted pricing rose 3.2% to $14.44 per ton even as aggregates shipments fell 3% to 208.3 million tons due to COVID-19 disruptions. The company generated operating cash flow of $1,070.4 million, up $86.3 million from 2019, and ended the year with $1,198.0 million of cash and total debt of $3,287.7 million, giving a total debt to Adjusted EBITDA ratio of 2.5x and a net debt ratio of 1.6x. Return on invested capital increased 0.4 percentage points to 14.3%. Management's 2021 outlook calls for net earnings of $640 million to $720 million and Adjusted EBITDA of $1.340 billion to $1.440 billion, with aggregates shipments expected to range from down 2% to up 2% and freight-adjusted prices to rise 2% to 4%. Capital returns continued through dividends of $180.2 million ($1.36 per share), while share repurchases were modest at $26.1 million. The company's 15.9 billion tons of permitted aggregates reserves and its focus on high-growth U.S. metropolitan markets remain central to its long-term strategy.
Feb 25, 2021
2019
Vulcan Materials Annual Report, Year Ended Dec 31, 2019
Vulcan Materials Company (NYSE: VMC) reported 2019 total revenues of $4.93 billion, up 12% from $4.38 billion in 2018, and net earnings of $617.7 million ($4.63 per diluted share), an increase of 20%. Adjusted EBITDA was $1,270.0 million, up 12%. Aggregates segment gross profit rose 16% to $1,146.6 million, and aggregates freight-adjusted sales price increased 6%, or $0.74 per ton, on shipments that rose 7% to 215.5 million tons. Asphalt, Concrete and Calcium combined gross profit was roughly flat at $109.3 million, with Concrete gross profit declining 14%. Total debt was $2.8 billion, or 2.2 times 2019 Adjusted EBITDA, with a weighted-average maturity of 14 years and a weighted-average interest rate of 4.4%. Operating cash flow was $984.1 million, and the company returned $166.6 million to shareholders through dividends and share repurchases. Management expects 2020 earnings from continuing operations of $5.20 to $5.80 per diluted share and Adjusted EBITDA of $1.385 billion to $1.485 billion, citing public infrastructure funding and a recovering private construction market. Key risks highlighted include dependence on construction spending cycles, the timing of federal, state and local infrastructure funding (the FAST Act expires September 30, 2020), environmental and Hewitt Landfill matters, litigation tied to a former Chemicals business, LIBOR transition, and the NAFTA arbitration over the Playa del Carmen quarry in Mexico.
Feb 26, 2020
2018
Vulcan Materials Annual Report, Year Ended Dec 31, 2018
Vulcan Materials Company (VMC), a New Jersey corporation, is the nation's largest supplier of construction aggregates (crushed stone, sand and gravel) and a major producer of asphalt mix and ready-mixed concrete. As of December 31, 2018, it operated 351 active aggregates facilities, 67 asphalt facilities and 46 concrete facilities, and held 16.3 billion tons of permitted proven and probable aggregates reserves. Aggregates accounted for 74% of 2018 total revenues and 90% of gross profit. In 2018, total revenues rose to $4,382.9 million from $3,890.3 million, gross profit rose to $1,100.9 million, and operating earnings increased to $747.7 million. Net earnings declined to $515.8 million ($3.85 per diluted share) from $601.2 million, mainly because 2017 included $297.0 million of net discrete tax benefits, including $268.2 million tied to the Tax Cuts and Jobs Act. Adjusted EBITDA was $1,131.7 million, and net cash provided by operating activities was $832.8 million. Management cited a 25% increase in diesel fuel costs and several severe weather events as headwinds, while aggregates freight-adjusted pricing rose 1% and shipments rose 10%. Asphalt segment gross profit fell 38% to $56.5 million, which management attributed to higher liquid asphalt costs. Total debt was $2,912.4 million at year end, or 2.6 times 2018 Adjusted EBITDA. For 2019, management expects net earnings of $610 million to $670 million, aggregates shipment growth of 3% to 5%, and an aggregates freight-adjusted price increase of 5% to 7%. The filing also describes a NAFTA arbitration against Mexico, registered with ICSID in January 2019, and ongoing Louisiana Texas Brine litigation, which the company classifies within discontinued operations.
Feb 26, 2019
2017
Vulcan Materials Annual Report, Year Ended Dec 31, 2017
Vulcan Materials Company (VMC), the nation's largest supplier of construction aggregates (crushed stone, sand and gravel) and a major producer of asphalt mix and ready-mixed concrete, reported total revenues of $3,890.3 million for 2017, up $297.6 million, or 8%, from 2016. Gross profit was essentially flat at $1,000.6 million, and the Aggregates segment gross profit margin declined to 27.8% from 29.5%. Net earnings rose to $601.2 million, or $4.46 per diluted share, from $419.5 million, but this increase was driven largely by $297.0 million of net tax benefits, including $268.2 million related to the Tax Cuts and Jobs Act. Operating earnings fell 5% to $647.1 million, and interest expense rose to $295.5 million, which included a $148.0 million one-time charge on early debt retirements. Adjusted EBITDA was $981.9 million, an increase of $15.9 million, or 2%. The company closed the Aggregates USA acquisition on December 29, 2017 for $616 million net of $287 million immediately divested, and it expects this deal to add $50 million of EBITDA in 2018. Total debt rose to $2,854.9 million at year end, from $1,982.9 million, and total debt as a percentage of total capital was 36.5%, up from 30.2%. Capital expenditures were $464.2 million, and dividends increased to $1.00 per share for 2017, with the first-quarter 2018 dividend raised to $0.28. For 2018, management guides to same-store aggregates shipment growth of 4% to 6%, freight-adjusted aggregates price growth of 3% to 5%, net earnings of $585 to $635 million, adjusted EBITDA of $1.150 to $1.250 billion, and earnings from continuing operations of $4.00 to $4.65 per diluted share. The filing also states that the effective tax rate should decline from approximately 28% to 20% on a net basis, reflecting tax reform.
Feb 27, 2018
2016
Vulcan Materials Annual Report, Year Ended Dec 31, 2016
Vulcan Materials Company, a New Jersey corporation, is the nation's largest supplier of construction aggregates (primarily crushed stone, sand and gravel) and a major producer of asphalt mix and ready-mixed concrete, operating 337 active aggregates facilities as of December 31, 2016. Aggregates accounted for 76% of 2016 total revenues. In 2016 total revenues rose $170.5 million, or 5%, to $3,592.7 million, and gross profit rose $143.3 million, or 17%, to $1,000.8 million. Net earnings were $419.5 million, an increase of $198.3 million, or 90%, and earnings from continuing operations were $422.4 million, or $3.11 per diluted share. Adjusted EBITDA was $966.0 million, up $131.1 million, or 16%. The company reported a 14% increase in Aggregates segment unit gross profit to $4.81 per ton, with freight-adjusted aggregates pricing up 7% and shipments up 2%. Management's 2017 outlook calls for Adjusted EBITDA of $1.125 to $1.225 billion, driven by aggregates shipment growth of 5% to 8% and a freight-adjusted aggregates price increase of 5% to 7%. Core capital spending is expected to be about $300 million. The company returned $106.3 million to shareholders through dividends and $161.5 million through share repurchases in 2016, and the Board raised the quarterly dividend to $0.25 per share for the first quarter of 2017. Total debt was $1,982.9 million at year-end, representing 30.2% of total capital, and cash was $259.0 million. Key risks disclosed include dependence on public infrastructure funding timing, climate and environmental regulation, competition, legal matters such as the Lower Passaic River Superfund site and the Texas Brine litigation, and the sensitivity of earnings to shipment volumes given high fixed costs.
Feb 24, 2017
2015
Vulcan Materials Annual Report, Year Ended Dec 31, 2015
Vulcan Materials Company's 10-K for fiscal 2015 describes the company as the nation's largest producer of construction aggregates (crushed stone, sand and gravel) and a major producer of asphalt mix and ready-mixed concrete, with 344 active aggregates facilities as of December 31, 2015 and 15.7 billion tons of proven and probable aggregates reserves. Total revenues rose $428.0 million, or 14%, to $3,422.2 million, and gross profit increased $270.0 million, or 46%, to $857.5 million. Aggregates shipments increased 10% to 178.3 million tons, the freight-adjusted sales price rose 7%, and Adjusted EBITDA increased $231.6 million, or 38%, to $836.3 million. Net earnings were $221.2 million ($1.64 per diluted share), compared with $204.9 million in 2014, which included a $227.9 million pretax gain on the Florida cement and concrete sale. Management expects 2016 Adjusted EBITDA of $1.0 to $1.1 billion, based on aggregates shipments of about 191 million tons and a 7% increase in freight-adjusted pricing. The company reported total debt of approximately $1.98 billion, with a debt-to-total-capital ratio of 30.8%, and a below-investment-grade rating profile (Moody's Ba2, S&P BB+, Fitch BB+). It also refinanced $635.1 million of debt in 2015 and entered a new $750.0 million unsecured line of credit maturing in June 2020. The company declared a first-quarter 2016 dividend of $0.20 per share, up from $0.10. Key risks disclosed include exposure to public infrastructure funding timing, a $950 million to $1.73 billion EPA cost estimate for the Lower Passaic River Superfund remedy, the Texas Brine sinkhole litigation with damages claimed above $500 million, the Hewitt Landfill cleanup order, and pension obligations. The company also notes that its goodwill of $3.09 billion represents 37% of total assets.
Feb 25, 2016
2014
Vulcan Materials Annual Report, Year Ended Dec 31, 2014
Vulcan Materials Company (VMC), the nation's largest producer of construction aggregates and a major producer of asphalt mix and ready-mixed concrete, reported improved results for 2014. Total revenues rose $223.5 million, or 8%, to $2,994.2 million, and gross profit increased $160.7 million, or 38%, to $587.6 million. Net earnings were $204.9 million, or $1.54 per diluted share, compared with $24.4 million, or $0.19 per diluted share in 2013. Results were helped by a $227.9 million pretax gain on the March 2014 sale of its Florida cement and concrete businesses for net pretax cash proceeds of $721.4 million. Adjusted EBITDA was $599.7 million, up from $468.3 million. The Aggregates segment drove the operating improvement. Its gross profit rose $130.8 million to $544.1 million, shipments increased 11% to 162.4 million tons, and freight-adjusted selling price rose 2%. Management stated that aggregates demand is in the early stages of recovery and remains well below normalized levels, and it expects private end-use demand to rise 14% to 18% and public end-use demand to rise 3% to 5% during 2015. The company also noted that it is operating at 50-60% capacity, which it views as leverage for further margin gains. Balance sheet activity was significant in 2014. Long-term debt fell from $2,522.2 million to $1,855.4 million after the company purchased $506.4 million principal amount of notes through a tender offer, and total debt as a percentage of total capital declined to 32.4% from 39.0%. Free cash flow was $35.4 million, down from $81.1 million, as operating cash flow decreased to $260.3 million, largely because of a 2013 volumetric production payment that provided $153.1 million of proceeds. The company's debt ratings remain below investment grade, with Moody's at Ba3 and S&P at BB+ on senior unsecured debt. The Board declared a first-quarter 2015 dividend of $0.10 per share, up from $0.06.
Feb 27, 2015
2013
Vulcan Materials Annual Report, Year Ended Dec 31, 2013
Vulcan Materials Company (VMC), the nation's largest producer of construction aggregates, reported 2013 net sales of $2.63 billion, up from $2.41 billion in 2012, and net earnings of $24.4 million, or $0.19 per diluted share, versus a net loss of $52.6 million in 2012. Adjusted EBITDA rose to $467.8 million from $411.3 million. Aggregates volume increased 4% and freight-adjusted aggregates pricing increased 3%. Gross profit reached $426.9 million, with a gross profit margin of 16.2% of net sales. Operating cash flow was $356.5 million and free cash flow was $81.1 million, after capital purchases of $275.4 million that included a $117.0 million land purchase containing 136 million tons of reserves in California. The company's balance sheet and financing activity were central to its 2013 results. Total debt was $2.52 billion, representing 39.0% of total capital, and the company received $153.1 million in net proceeds from a second volumetric production payment on future aggregates production. In January 2014, Vulcan agreed to sell its Florida cement and concrete businesses to Cementos Argos for gross cash proceeds of $720.0 million, expected to close in the first quarter of 2014. The company also initiated a tender offer to purchase $500.0 million of outstanding debt, contingent on that closing. The filing also describes ongoing legal and environmental exposures, including the Texas Brine matter, which the company says it cannot reasonably estimate, and the Lower Passaic River Superfund matter, for which the company says it cannot reasonably estimate its liability. The Board declared a first-quarter 2014 dividend of $0.05 per share, up from $0.01 per quarter in 2013.
Feb 26, 2014
2012
Vulcan Materials Annual Report, Year Ended Dec 31, 2012
Vulcan Materials Company (NYSE: VMC), the nation's largest producer of construction aggregates, reported a 2012 net loss of $52.6 million, or $0.41 per diluted share, compared with a net loss of $70.8 million, or $0.55 per share, in 2011. Net sales were $2.41 billion, essentially flat with 2011's $2.41 billion, while gross profit rose to $334.0 million from $283.9 million. Management attributes the improvement to lower unit costs, higher selling prices and streamlined overhead, with selling, administrative and general expenses falling to $259.1 million from $290.0 million. Operating cash flow was $238.5 million and free cash flow was $145.1 million, and total debt was $2.68 billion, or 41.6% of total capital. The filing also highlights several one-time items that affected results, including a $65.1 million pretax gain on sale of real estate and businesses, a $43.4 million charge for costs tied to Martin Marietta's unsolicited exchange offer, which was withdrawn after a court ruling, and $9.6 million in restructuring charges. Management expects a Profit Enhancement Plan to lift pretax earnings by $130 million in 2013 and $155 million in 2014 versus 2011 levels, and targets about $500 million in net proceeds from planned asset sales through July 2013, with $168.6 million achieved through 2012. Credit ratings remain below investment grade, with Moody's at Ba3/negative and S&P at BB/stable. The company reports 15.0 billion tons of permitted proven and probable aggregates reserves and says its markets are concentrated in high-growth states, with publicly funded construction at about 54% of aggregates shipments and privately funded construction at about 46%. Management points to the 2012 federal highway bill (MAP-21) and recovering residential housing starts as demand tailwinds, though it notes the timing of a sustained recovery remains uncertain and that goodwill of $3.09 billion, about 38% of total assets, could be impaired if the recovery is delayed.
Feb 28, 2013
2011
Vulcan Materials Annual Report, Year Ended Dec 31, 2011
Vulcan Materials Company, the nation's largest producer of construction aggregates, reported a 2011 net loss of $70.8 million, or $0.55 per diluted share, versus a net loss of $96.5 million, or $0.75 per share, in 2010. Net sales were $2,406.9 million, roughly flat with $2,405.9 million in 2010, and EBITDA rose to $425.2 million from $370.6 million, helped by gains of $86.1 million from a business sale and a legal settlement. Gross profit per ton of aggregates was $2.14 versus $2.17 in 2010, and the company cut Selling, Administrative and General expenses by $37.5 million. Cash flow weakened, with net cash provided by operating activities of $169.0 million versus $202.7 million, and free cash flow of $70.1 million versus $116.4 million. The filing is dominated by Martin Marietta Materials' unsolicited exchange offer of 0.50 Martin Marietta shares per Vulcan share, which the board unanimously determined to be inadequate. Vulcan has incurred legal and professional costs, is litigating in Delaware, New Jersey and Alabama, and faces shareholder class actions. Total debt was $2,815.5 million, equal to 42.6% of total capital, and Moody's rated the company Ba2/negative. Management announced a Profit Enhancement Plan targeting $100 million of earnings and planned asset sales with net after-tax proceeds of about $500 million over 12 to 18 months, to reduce debt. The company's goodwill of $3,086.7 million represents 38% of total assets. Management noted that one aggregates reporting unit with $1,815.1 million of goodwill had a fair value only 8% above its carrying value, so a sustained construction recovery is needed to avoid a potential impairment.
Feb 29, 2012
2010
Vulcan Materials Annual Report, Year Ended Dec 31, 2010
Vulcan Materials Company reported a net loss of $96.5 million, or ($0.75) per diluted share, for fiscal 2010, compared with net earnings of $30.3 million in 2009. Net sales were $2.41 billion versus $2.54 billion in 2009, and EBITDA fell to $370.6 million from $548.4 million. Results were hit by $43.0 million of pretax charges related to the settlement of an Illinois Department of Transportation (IDOT) lawsuit, higher diesel fuel and liquid asphalt costs that reduced pretax earnings by $51.3 million, and lower freight-adjusted aggregates selling prices. A $39.5 million pretax gain on the sale of non-strategic assets in rural Virginia partly offset these items. The company, the nation's largest producer of construction aggregates with 319 aggregates facilities, said aggregates shipments declined only 2% in 2010 versus steeper declines in prior years, and that stimulus-funded highway activity and modest housing improvement helped. Management highlighted cash generation: free cash flow was $116.4 million, operating cash flow was $202.7 million, and capital spending was cut to $86.3 million. Total debt was $2.72 billion, equal to 40.7% of total capital, and the company paid a $0.25 quarterly dividend throughout 2010. Credit ratings are a key watch item. Standard & Poor's placed Vulcan's long-term rating BBB- on credit watch negative, and Moody's placed its Baa3 rating under review for downgrade, both in December 2010. The company also noted the expiration of the multi-year federal highway bill (SAFETEA-LU) on September 30, 2009 and the absence of a replacement as ongoing uncertainty for public infrastructure funding. The filing states that a $25.5 million insurance arbitration award will be recorded as income in the first quarter of 2011.
Feb 28, 2011
2009
Vulcan Materials Annual Report, Year Ended Dec 31, 2009
Vulcan Materials Company reported a sharp downturn in 2009 for the fiscal year ended December 31, 2009. Net sales were $2,543.7 million versus $3,453.1 million in 2008, and net earnings were $30.3 million, or $0.25 per diluted share, compared with $0.9 million in 2008. Earnings from continuing operations were $18.6 million. The company describes the company as the nation's largest producer of construction aggregates, and attributes the decline mainly to lower aggregates shipments, which the filing says declined 26% in 2009, partly offset by a 3% increase in aggregates pricing. Management highlights aggressive cost control: selling, administrative and general expenses fell to $321.6 million from $342.6 million, and employment was reduced about 12% year over year. Cash generation and balance sheet repair were the central themes of 2009. Net cash provided by operating activities was $453.0 million, and capital spending was cut to $109.7 million from $353.2 million, producing free cash flow of $343.3 million. Vulcan raised $394.6 million of net proceeds from a private placement of debt and $520.0 million from a June public equity offering, and used these funds to reduce total debt by $809.8 million. Total debt as a percentage of total capital fell to 40.3% from 50.0%. The quarterly dividend was reduced from $0.49 to $0.25 beginning in the third quarter of 2009. Key risks flagged in the filing include the weak U.S. economy and construction markets, uncertainty over federal highway funding after the SAFETEA-LU bill expired on September 30, 2009, and a $252.7 million goodwill impairment charge recorded in 2008 for the Florida cement reporting unit. The filing also discloses ongoing perchloroethylene litigation tied to the former Chemicals business and a Lake Belt permitting dispute in Florida. Goodwill of $3.09 billion represents 36% of total assets.
Feb 26, 2010
2008
Vulcan Materials Annual Report, Year Ended Dec 31, 2008
Vulcan Materials Company reported a net loss of $4.1 million, or $0.04 per diluted share, for 2008, compared with net earnings of $450.9 million, or $4.54 per diluted share, in 2007. The result was driven by a $252.7 million pretax goodwill impairment charge on its Florida cement reporting unit, which was $227.6 million after tax and $2.07 per diluted share. Net sales rose to $3.45 billion from $3.09 billion, reflecting a full year of Florida Rock operations acquired in November 2007, while aggregates shipments declined 12% and legacy aggregates shipments were down 30% from the 2005 peak. Earnings from continuing operations before income taxes fell to $75.1 million from $667.5 million, largely due to the impairment and interest expense that rose to $172.8 million from $48.2 million on acquisition debt. The company remains the nation's largest producer of construction aggregates, with 13.3 billion tons of zoned and permitted reserves, which it says are sufficient for an average of 51.7 years at current production rates. Management highlighted higher aggregates pricing and record cash earnings per ton in its legacy operations, while noting that demand from residential and commercial construction remains weak. Total debt was $3.55 billion at year end, or 50.2% of total capital, and the company issued $400 million of notes in February 2009 to repay borrowings. Management expects to reduce total debt by $200 million in 2009 and to cut capital spending to about $200 million. The filing also flags several risks for investors. These include a $48.0 million write-down of pension trust assets invested with Westridge Capital Management, which is the subject of SEC and CFTC fraud actions, and ongoing litigation tied to former Chemicals operations. The filing also notes that the Lakebelt mining permits in Florida were invalidated again in January 2009, halting mining in most of the region, and that the Act signed in February 2009 is expected to provide incremental demand starting in the second half of 2009.
Mar 2, 2009
2007
Vulcan Materials Annual Report, Year Ended Dec 31, 2007
Vulcan Materials Company (Birmingham, Alabama) filed its annual report on Form 10-K for the fiscal year ended December 31, 2007. The defining event of the year was the November 16, 2007 acquisition of Florida Rock Industries, Inc., paid in cash and stock for approximately $4.68 billion in total consideration (including $1,436.5 million in stock and $3,212.6 million in cash). Consolidated net sales rose 2% to a record $3.09 billion, and operating earnings increased 2.8% to $714.4 million, supported by aggregates pricing gains even as shipments declined. Net earnings were $450.9 million, or $4.54 per diluted share, compared with $470.2 million, or $4.71, in 2006. The balance sheet changed substantially. Total assets grew to $8.94 billion from $3.43 billion, goodwill rose to $3.79 billion, and long-term debt increased to $1.53 billion. Short-term borrowings reached $2.09 billion at year end, and total debt as a percentage of total capital rose to 49.3% from 20.6%. Management said it expects to reduce that ratio to a 35% to 40% target range within three years. The company also reported that it expects to divest nine sites required by the Department of Justice, and it gave 2008 guidance of $4.75 to $5.15 per diluted share in continuing operations earnings. Investors should weigh the higher leverage and integration risk against the company's stated 2008 outlook. The filing notes that residential construction remains weak, with management expecting double-digit declines in that sector, while public infrastructure and nonresidential demand are expected to support volumes. Ongoing litigation includes the Modesto matter, which Vulcan settled for $20 million, and a pending Eleventh Circuit appeal over Miami quarry mining restrictions.
Feb 29, 2008