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Vulcan Materials 8-K Report, Financial Results (Feb 16, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 16, 2024
Period End
February 16, 2024
Security
VMC
In the record · 2016–202610-K1110-Q338-K128

VMC filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 128 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Feb ’18Feb ’18
  2. Material agreement8-K · Apr ’20Apr ’20
  3. Leadership change8-K · Jul ’22Jul ’22
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed February 16, 2024. Cited figures are marked; the original filing is the authoritative source.

Vulcan Materials Company (NYSE: VMC) reported fourth-quarter and full-year 2023 results on February 16, 2024, as furnished in Exhibit 99.1 to this Form 8-K.

For full-year 2023, total revenues were $7,781.9 milliona (versus $7,315.2 million in 2022), gross profit was $1,948.5 million, and net earnings attributable to Vulcan were $933.2 million (versus $575.6 million). Adjusted EBITDA was $2,011.3 million, and diluted earnings per share from continuing operations were $7.06 (versus $4.45). Fourth-quarter net earnings attributable to Vulcan were $227.5 million, and fourth-quarter diluted EPS from continuing operations was $1.72, compared with $0.91 a year earlier.

Management described the Aggregates segment as the main driver, with fourth-quarter Aggregates gross profit per ton of $7.67b and cash gross profit per ton of $9.92. Cash generation and balance sheet highlights include $1,536.8 million of net cash provided by operating activities for 2023, cash and cash equivalents of $931.1 million at year-end, and a total debt to Adjusted EBITDA ratio of 1.9 times (1.5 times on a net debt basis). During 2023 the company returned $428 million to shareholders through $200 million of share repurchases and $228 million of dividends.

It also completed the sale of its Texas concrete operations for cash proceeds of $485 millionc and deployed $204 million for strategic aggregates reserves in California, North Carolina and Texas. For 2024, management expects Aggregates shipments of flat to down 4 percent from 234.3 million tons, freight-adjusted price improvement of 10 to 12 percent, and Adjusted EBITDA between $2.15 and $2.30 billion. Projected net earnings attributable to Vulcan are $1.07 to $1.19 billion, and capital expenditures for maintenance and growth projects are expected at $625 to $675 million.

02—Key points

Key Highlights

  1. Full-year 2023 total revenues of $7,781.9 million, up from $7,315.2 million in 2022; gross profit of $1,948.5 million versus $1,557.7 million.
  2. Full-year 2023 net earnings attributable to Vulcan of $933.2 million and diluted EPS from continuing operations of $7.06, versus $4.45 in 2022.
  3. Full-year 2023 Adjusted EBITDA of $2,011.3 million, and fourth-quarter Adjusted EBITDA of $476.1 million.
  4. Aggregates cash gross profit per ton reached $9.46 for 2023 (versus $7.83 in 2022), and fourth-quarter freight-adjusted selling price rose 14 percent year over year.
  5. Total debt to Adjusted EBITDA of 1.9 times and net debt to Adjusted EBITDA of 1.5 times at December 31, 2023; return on invested capital of 16.3 percent.
  6. 2023 capital returns of $428 million ($200 million in buybacks and $228 million in dividends) and $1,536.8 million of operating cash flow.
  7. 2024 guidance includes Adjusted EBITDA of $2.15 to $2.30 billion, Aggregates freight-adjusted price improvement of 10 to 12 percent, and shipments flat to down 4 percent.

03—Questions

Frequently Asked Questions

  1. How did Vulcan perform in the fourth quarter of 2023?

    Fourth-quarter total revenues were $1,834.3 million, compared with $1,731.9 million a year earlier. Gross profit rose to $472.2 million from $349.9 million, and net earnings attributable to Vulcan were $227.5 million, compared with $119.4 million. Diluted EPS from continuing operations was $1.72, versus $0.91 in the prior-year quarter.

  2. What drove the improvement in profitability?

    Management attributed the improvement mainly to the Aggregates business. Fourth-quarter Aggregates gross profit increased to $423.9 million from $327.1 million, and gross profit per ton rose to $7.67 from $6.04. The company cited continued pricing momentum, operational execution and moderating inflationary pressures. Freight-adjusted selling prices rose 14 percent year over year.

  3. What is Vulcan's financial position at year-end 2023?

    At December 31, 2023, cash and cash equivalents were $931.1 million, and long-term debt was $3,877.3 million. Total debt to Adjusted EBITDA was 1.9 times, and net debt to Adjusted EBITDA was 1.5 times. The weighted-average debt maturity was 10 years, with an effective weighted-average interest rate of 4.9 percent.

  4. What does Vulcan expect for 2024?

    Management expects continued improvement in Aggregates cash gross profit per ton from $9.46 in 2023. Shipments are expected to be flat to down 4 percent, and freight-adjusted price is expected to improve 10 to 12 percent. Adjusted EBITDA is projected at $2.15 to $2.30 billion, and net earnings attributable to Vulcan at $1.07 to $1.19 billion. Selling, administrative and general expenses are expected at $550 to $560 million, and capital expenditures at $625 to $675 million.

  5. What portfolio changes did Vulcan make in 2023?

    Vulcan completed the disposition of its Texas concrete operations in the fourth quarter, generating cash proceeds of $485 million. It also sold Northern Virginia real estate for $66 million in cash. Separately, it spent $204 million on opportunistic purchases of strategic aggregates reserves in California, North Carolina and Texas.

04—Continue

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