01—Abstract
Summary
Summary of the 10-Q filed August 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Vulcan Materials Company reported second-quarter 2024 total revenues of $2,014.4 milliona, down 5% from $2,112.9 million a year earlier, while gross profit rose $8.9 million to $592.2 million and operating earnings rose $2.5 million to $453.6 million.
Net earnings attributable to Vulcan were $308.0 millionb, or $2.31 per diluted share, essentially flat year over year. Aggregates drove results: segment gross profit increased 6% to $528.5 million, freight-adjusted sales prices rose 12.2%, and shipments fell 5% to 60.1 million tons amid significant rainfall. Concrete gross profit fell sharply after the November 2023 sale of Texas concrete operations, and the Asphalt segment gross profit rose $2.4 million to $59.0 million.
For the six months ended June 30, 2024, net cash provided by operating activities was $374.5 millionc, down $133.0 million from the prior year, while capital expenditures totaled $297.9 million year to date. The company redeemed $550.0 million of 5.80% senior notes due 2026 in March 2024, and total debt was $3,427.2 million at June 30, 2024, or 1.7 times trailing-twelve-month Adjusted EBITDA of $2,005.0 million. Management's 2024 outlook projects aggregates shipments down 4% to 7% and freight-adjusted price improvement of 10% to 12%, with net earnings attributable to Vulcan of $950 million to $1,070 million.
The filing also discloses ongoing legal and environmental matters, including the Lower Passaic River Superfund matter, the Texas Brine sinkhole litigation, New York and New Jersey TCA cases, the Hewitt Landfill matter, and a NAFTA arbitration against Mexico following the May 2022 shutdown of Calica operations. The company stated it cannot reasonably estimate a range of loss for several of these matters, and it recorded no liability for reasonably possible losses.
02—Key points
Key Highlights
- Total revenues were $2,014.4 million in Q2 2024, down 5% from $2,112.9 million, while gross profit increased to $592.2 million from $583.3 million.
- Net earnings attributable to Vulcan were $308.0 million, or $2.31 per diluted share, compared with $308.6 million, or $2.31 per diluted share, in Q2 2023.
- Aggregates segment gross profit rose 6% to $528.5 million, with freight-adjusted sales prices up 12.2% to $21.00 per ton despite a 5% shipment decline to 60.1 million tons.
- Concrete segment gross profit fell $22.3 million (-83%) to $4.7 million following the November 2023 divestiture of Texas concrete operations.
- Operating cash flow for the first six months was $374.5 million, down $133.0 million year over year, and the company redeemed $550.0 million of 5.80% senior notes due 2026 in March 2024.
- Total debt to trailing-twelve-month Adjusted EBITDA was 1.7 times at June 30, 2024, below the stated long-term target range of 2.0 to 2.5 times.
- Management's 2024 outlook projects net earnings attributable to Vulcan of $950 million to $1,070 million and Adjusted EBITDA of $2,000 million to $2,150 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2024, Vulcan Materials kept $0.15.
- Revenue$2.01B100.0%
- Cost of revenue−$1.42B70.6%
- Gross profit$592.2M29.4%
- Operating costs−$138.6M6.9%
- Operating income$453.6M22.5%
- Interest, other & tax−$145.6M7.2%
- Net income$308.0M15.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 7, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $2.01B$2.11B | −4.7% |
| Cost of Revenue | $1.42B$1.53B | −7.0% |
| Gross Profit | $592.20M$583.30M | +1.5% |
| SG&A Expenses | $134.10M$139.10M | −3.6% |
| Operating Income | $453.60M$451.10M | +0.6% |
| Net Income | $308.00M$308.60M | −0.2% |
| EPS (Basic) | $2.33$2.32 | +0.4% |
| EPS (Diluted) | $2.31$2.31 | 0.0% |
| Shares Outstanding (Basic) | 132.40M133.20M | −0.6% |
| Shares Outstanding (Diluted) | 133.10M133.80M | −0.5% |
05—Questions
Frequently Asked Questions
How did Vulcan's core aggregates business perform in the second quarter of 2024?
Aggregates segment gross profit increased 6% to $528.5 million, and gross profit per ton rose 12% to $8.79. Freight-adjusted sales prices increased 12.2%, but shipments fell 5% to 60.1 million tons, mainly because of significant rainfall in Texas and across the Southeast.
Why did Concrete segment results decline so much?
The filing attributes the decline to the November 2023 sale of concrete operations in Texas. Concrete segment gross profit was $4.7 million in Q2 2024 versus $27.0 million in Q2 2023, and the prior-year quarter included results from the divested Texas operations.
What did the company say about its 2024 outlook?
Management expects total shipments to decline 4% to 7%, freight-adjusted price to improve 10% to 12%, interest expense of approximately $155 million, and an effective tax rate of 22% to 23%. It also projects net earnings attributable to Vulcan of $950 million to $1,070 million and Adjusted EBITDA of $2,000 million to $2,150 million. The outlook reflects weather disruptions in the first half of the year.
How strong is Vulcan's balance sheet and liquidity?
Total debt was $3,427.2 million at June 30, 2024, with cash and restricted cash of $111.6 million. Available borrowing capacity under the $1,600.0 million unsecured line of credit was $1,504.8 million. The company had $95.0 million of short-term commercial paper outstanding, and it said it was in compliance with all debt covenants.
What are the main legal and environmental risks disclosed?
The filing describes several matters, including the Lower Passaic River Superfund matter, the Texas Brine sinkhole litigation, New York and New Jersey cases involving 1,1,1-trichloroethane, the Hewitt Landfill matter, and a NAFTA arbitration against Mexico related to the 2022 Calica shutdown. For several of these matters, the company said it cannot reasonably estimate a range of loss, and accrued environmental remediation costs totaled $42.0 million at June 30, 2024.
06—Continue