12 slides from Vulcan Materials Company (holding Company)'s earnings presentation, Apr 26, 2012
Slide 1: First Quarter 2012 Earnings Results
First Quarter 2012 Earnings Results April 26, 2012
Slide 2: Important Disclosure Notes – Forward Looking Statements
Important Disclosure Notes – Forward Looking Statements 2 Certain matters discussed in this presentation, including expectations regarding future performance, contain forward-looking statements. Statements that are not historical fact, including statements about Vulcan’s beliefs and expectations, ar
Slide 3: 1Q 2012 Financial Results – Strong Earnings Improvement
1Q 2012 Earnings Results – April 26, 2012 1Q 2012 Financial Results – Strong Earnings Improvement 3 Q1'11Q1'12 Variance Net Sales $456$500+ 10% Gross Profit ($7)$22+ $29% Margin (1.6%) 4.4% + 600 bps SAG $78 $65 ($13) (17%) Adjusted EBITDA $5$ 46+ $41% Margin 1.2% 9.2%+ 800 bpsOperating Leverage (1)
Slide 4: Significant Leverage in Aggregates / Improvement in Non-Aggregates
1Q 2012 Earnings Results – April 26, 2012 Significant Leverage in Aggregates / Improvement in Non-Aggregates 4 Source: Company filings (1) Includes intersegment sales and excludes delivery revenues. AGGREGATES Q1 '11 Q1 '12 Variance Segment Revenues (1) $332 $356+ $24+ 7% Shipments (tons) 26.729.5+
Slide 5: Solid SAG Management Expected to Accelerate from Cost Savings Initiatives
Solid SAG Management Expected to Accelerate from Cost Savings Initiatives and Leveraging of ERP and Shared Services Platforms ERP, Restructuring and Severance Cost Annual expenses related to ERP investment peaked in 2010 Total SAG down $118mm from 2007 to 2012E Run-Rate (32% decrease)¹ Source: Compa
Slide 6: Vulcan's $100M Profit Enhancement Plan Is On Track
Vulcan’s $100M Profit Enhancement Plan Is On Track 6 290 2,120 SAG COGS G&A / support functions Strategic sourcing Plant operations Transport / logistics $100M Cost base ($M) Opportunity areas Total target: 25 (9% of SAG) 55 20 Additional opportunity (4% of COGS) Target (EBITDA, $M) On track Savings
Slide 7: Planned Asset Sales Expected to Generate Cash for Debt Reduction
Planned Asset Sales are Expected to Generate Cash for Debt Reduction and Enhance Shareholder Return Broad portfolio of assets under consideration… consistent with Vulcan’s strategy… and subject to a disciplined selling process Ready-mix concrete Cement Non-strategic aggregates assets Real estate Foc
Slide 8: Growth In Private Construction Activity Bodes Well For Recovery
Growth In Private Construction Activity Bodes Well For Continued Recovery In Our High-Growth Markets 8 Note: Graphs show year-over-year % change in trailing twelve month housing starts and contract awards for office buildings and stores measured in square feet. Source: McGraw-Hill and Company data.
Slide 9: Full Year 2012 Outlook
Full Year 2012 Outlook 2012 Value Commentary +1 to 3% Aggregates Price growth Adjusted from prior guidance of + 2 to 4% based on change in product mix +2 to 4% Aggregates Shipments growth $25M Profit Enhancement Plan Full $100 million run-rate by mid-2013 $500M EBITDA including Profit Enhancement Pl
Slide 10: Question & Answer Session
Vulcan Materials Company Question & Answer Session rer JON ee SS
Slide 11: Adjusted EBITDA & Adjusted Diluted EPS Reconciliation
Adjusted EBITDA & Adjusted Diluted EPS Reconciliation 11 Q1 '11Q1 '12 Reconciliation of Net Loss to EBITDA and Cash Earnings: Net loss ($55) ($52) Benefit from income taxes (37) (38) Interest expense, net 42 52 Earnings on discontinued operations, net of tax (10) (5) EBIT ($60) ($43) Plus: Depreciat
Slide 12: Other Important Disclosure Notes
Other Important Disclosure Notes 12 ADDITIONAL INFORMATION This presentation does not constitute an offer to buy or solicitation of an offer to sell any securities or a solicitation of any vote, consent or approval. In response to the unsolicited exchange offer commenced by Martin Marietta Materials