01—Abstract
Summary
Summary of the 8-K filed May 2, 2024. Cited figures are marked; the original filing is the authoritative source.
Vulcan Materials Company reported first-quarter 2024 results for the quarter ended March 31, 2024, as furnished in Exhibit 99.1 to this Form 8-K.
Total revenues were $1.55 billiona, compared with $1.65 billion a year earlier, and net earnings attributable to Vulcan were $103 million versus $121 million. Adjusted EBITDA was $323 million versus $338 million, and diluted earnings per share from continuing operations were $0.78 versus $0.92. Management attributed the results to solid execution despite challenging weather, with aggregates freight-adjusted sales price per ton up to $20.59 from $18.69 and aggregates cash gross profit per ton up 10 percent to $8.86.
Aggregates shipments fell to 48.1 million tons from 51.8 million tons. On a trailing-twelve-month basis, total revenues were $7.68 billionb, Adjusted EBITDA was $1.997 billion, and return on invested capital was 16.3 percent, a 260 basis point improvement. The company used $550 million of cash on hand to redeem its 2026 notes during the quarter.
Total debt was $3.33 billionc, equal to 1.7 times TTM Adjusted EBITDA, or 1.5 times on a net basis. Cash and cash equivalents were $292.4 million at March 31, 2024, down from $931.1 million at December 31, 2023.
Management reaffirmed its full-year outlook, targeting Adjusted EBITDA of $2.15 to $2.30 billiond, which it described as the fourth consecutive year of double-digit growth. The company expects capital expenditures of $625 to $675 million for 2024, and it returned $81 million to shareholders in the quarter through $19 million of buybacks and $62 million of dividends.
02—Key points
Key Highlights
- Total revenues of $1,545.7 million in Q1 2024, down from $1,649.0 million in Q1 2023
- Net earnings attributable to Vulcan of $102.7 million, versus $120.7 million a year earlier; diluted EPS from continuing operations of $0.78 versus $0.92
- Aggregates cash gross profit per ton rose 10 percent to $8.86, with freight-adjusted sales price per ton of $20.59 versus $18.69, despite shipments of 48.1 million tons versus 51.8 million
- TTM Adjusted EBITDA of $1,997.1 million, and return on invested capital of 16.3 percent, a 260 basis point improvement
- Redeemed 2026 notes for $550 million using cash on hand; total debt to TTM Adjusted EBITDA of 1.7 times and net debt ratio of 1.5 times
- Full-year 2024 outlook reaffirmed: Adjusted EBITDA of $2.15 to $2.30 billion and capital expenditures of $625 to $675 million
- Returned $81 million to shareholders in Q1 through $19 million of common stock repurchases and $62 million of dividends
03—Questions
Frequently Asked Questions
How did Vulcan perform in the first quarter of 2024?
Total revenues declined to $1.55 billion from $1.65 billion, and net earnings attributable to Vulcan fell to $103 million from $121 million. Management attributed the weaker volume to unfavorable weather, while pricing and unit profitability improved.
Did Vulcan change its full-year guidance?
No. The company stated that all aspects of its February outlook remain unchanged, including Adjusted EBITDA of $2.15 to $2.30 billion for 2024, which it described as the fourth consecutive year of double-digit growth.
What drove the improvement in aggregates profitability?
Freight-adjusted sales price per ton rose to $20.59 from $18.69, and aggregates cash gross profit per ton increased 10 percent to $8.86. The company cited continued pricing momentum and operational execution, with improvements across its footprint.
How strong is Vulcan's balance sheet and liquidity?
Total debt was $3.33 billion, or 1.7 times TTM Adjusted EBITDA, and 1.5 times on a net basis after $300 million of cash. The weighted-average debt maturity was 11 years and the effective weighted-average interest rate was 4.8 percent. Cash and cash equivalents fell to $292.4 million from $931.1 million at year-end 2023 following the $550 million note redemption.
04—Continue