Vulcan Materials Company (holding Company) · NYSE:VMC
Vulcan Materials Company (holding Company) — Q2 2021 Earnings Presentation
14 slides from Vulcan Materials Company (holding Company)'s earnings presentation, Aug 4, 2021
Slide 1: Q2 2021 Supplemental Information for Earnings Conference Call
Q2 2021 SUPPLEMENTAL INFORMATION FOR EARNINGS CONFERENCE CALL A UG US T 4 , 2 0 2 1
Slide 2: Disclaimer: Safe Harbor
Disclaimer Safe Harbor This document contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations,
Slide 3: Second Quarter 2021 Financial Highlights
Second Quarter 2021 Financial Highlights Strong execution with continued earnings growth Chg. vs. Chg. vs. 2Q 2021 2Q 2020 1H 2021 1H 2020 $1,361.0 +2.9% Total Revenues $2,429.4 +2.4% $398.4 +0.5% Gross Profit $627.6 +4.9% $406.0 -- Adjusted EBITDA* $650.3 +6.8% 14.8% +60 bps Return on Invested Capi
Slide 4: Second Quarter 2021 Key Performance Indicators – Aggregates
Second Quarter 2021 Key Performance Indicators – Aggregates Margin expansion and unit profitability improvement Cash Gross Profit per Ton* $7.83, +2% Volume • Gross Profit Margin expanded 40 basis points +4% • The rate of pricing growth improved sequentially throughout the quarter, reflecting positi
Slide 5: 1H 2021 Key Performance Indicators – Aggregates
1H 2021 Key Performance Indicators – Aggregates Growth in unit profitability consistent with expectations Volume +4% Cash Gross Profit per Ton* $7.27, +5% Total Cash Freight-Adj. Cost of Price Sales* +3% +1% * Non-GAAP measure. See Appendix for reconciliation. SUPPLEMENTAL INFORMATION FOR 2Q’21 EARN
Slide 6: Second Quarter 2021 – Asphalt and Concrete
Second Quarter 2021 – Asphalt and Concrete Earnings impacted by lower volumes and higher energy-related costs, particularly in asphalt Asphalt Concrete 2Q Chg. vs. 1H Chg. vs. 2Q Chg. vs. 1H Chg. vs. 2021 2Q 2020 2021 1H 2020 2021 2Q 2020 2021 1H 2020 3.1 -7.9% Volume 5.4 -2.0% 0.7 -7.0% Volume 1.3
Slide 7: Capital Allocation and Financial Position
Capital Allocation and Financial Position Leveraging our capital base to drive shareholder value 2.0x Total Debt to TTM Adjusted EBITDA* 1.3x Net Debt to TTM Adjusted EBITDA* Years 15 Weighted-Average Maturity of Debt Percent 4.6 Weighted-Average Interest Rate * Non-GAAP measure. See Appendix for re
Slide 8: End Market Outlook and Commentary
End Market Outlook and Commentary Continued strength in residential construction with signs of future growth in nonresidential Residential Highways • Single-family construction activity remains strong • COVID-relief dollars effectively backstopping budgets and benefiting • Recent improvement in mult
Slide 9: Making the Best Better – Our Strategic Disciplines
Making the Best Better – Our Strategic Disciplines Helps drive revenue and profit growth, limit downcycle risk, and separate Vulcan from the competition I OPERATIONAL EXCELLENCE II COMMERCIAL EXCELLENCE III LOGISTICS INNOVATION IV STRATEGIC SOURCING DRIVING GROWTH, OPERATIONAL EXCELLENCE AND PROFITA
Slide 10: Attractive Fundamentals in Aggregates
Attractive Fundamentals in Aggregates Pricing growth through all parts of the cycle with a long history of outperforming cost inflation 20-Year Average Annual Growth Rate Upstream Materials Downstream Products 5.3% 4.2% 3.4% 2.8% 2.2% Aggregates Cement Industrial Asphalt Mix Concrete Commodities Sou
Slide 11: 2021 Outlook
2021 Outlook Strong execution and positive demand environment supports full-year outlook Adjusted EBITDA* • Full-year projected EBITDA remains unchanged. ($ in millions) Earnings growth year-to-date consistent with full-year +7% $1,420 expectations $1,324 • Aggregates pricing momentum and operating
Slide 12: Significant Value and Growth Opportunity
Significant Value and Growth Opportunity Industry Leader with Resilient Aggregates Portfolio Superior Revenue and EBITDA Growth Supported by Four Strategic Disciplines Strong Balance Sheet Supports Future Growth SUPPLEMENTAL INFORMATION FOR 2Q’21 EARNINGS CONFERENCE CALL | 12
Slide 13: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures EBITDA EBITDA is an acronym for "Earnings Before Interest, Taxes, Depreciation and Amortization" and excludes discontinued operations. GAAP does not define EBITDA and it should not be considered as an alternative to earnings measures defined by GAAP. We adjust EBI
Slide 14: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Return on Invested Capital We define "Return on Invested Capital" (ROIC) as Adjusted EBITDA for the trailing-twelve months divided by average invested capital (as illustrated below) during the trailing 5-quarters. Our calculation of ROIC is considered a non-GAAP f
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