Vulcan Materials Company (Holding Company) · NYSE:VMC
Vulcan Materials Company (Holding Company) — Q1 2015 Earnings Presentation
19 slides from Vulcan Materials Company (Holding Company)'s earnings presentation, May 5, 2015
Slide 1: Building an Even Stronger Business
Building an Even Stronger Business First Quarter 2015 Results Earnings Conference Call, May 5, 2015 Aggregates Essential Material | Valuable Asset
Slide 2: Important Disclosure Notes
Important Disclosure Notes Forward Looking Statements Slide 2 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 financi
Slide 3: First Quarter – Key Figures
First Quarter – Key Figures Earnings improvement and margin expansion on solid execution Slide 3 First Quarter 2015 F/(U) Amounts in millions, except per share 2015 2014 vs 2014 Chg. Aggregates Shipments (tons)* 33.5 29.6 3.9 13% Total Revenues Excl Freight and Delivery $ 524.9 $ 485.5 $ 39.4 8% Gro
Slide 4: Aggregates Volumes – First Quarter
Aggregates Volumes – First Quarter Strong volume growth despite challenging weather Slide 4 Year-over-Year Change in Aggregates Shipments Year-over Year Change Total +13% Greater than 10% Same-store +9% Up to 10% Flat to Down Note: Total volumes reported, including acquisitions completed in 2014. Ea
Slide 5: Aggregates Volumes – Trailing Twelve Months
Aggregates Volumes – Trailing Twelve Months Recovering construction activity and solid sales execution Slide 5 Year-over-Year Change in Aggregates Shipments Year-over Year Change Total +13% Greater than 10% Same-store +11% Up to 10% Flat to Down Note: Total volumes reported, including acquisitions c
Slide 6: Aggregates Pricing
Aggregates Pricing Accelerating pricing momentum Slide 6 • Current and future project bids at higher prices than backlog • April 1 increases well accepted • Several key markets seeing high- single digit price increases • High quality of service to customers • We continue to expect accelerating prici
Slide 7: Aggregates Results – Industry-Leading Unit Profitability
Aggregates Results – Industry-Leading Unit Profitability Recovery in demand serves as a tailwind for all 3 drivers Slide 7 1Q 2015 Year-over-Year Improvement Sales and Production Effective Mix Gross Profit Management Drives $2.11 / Ton Growth in Operating +$0.81/Ton Unit Price for Efficiency +62% Se
Slide 8: Aggregates Unit Profitability
Aggregates Unit Profitability Growing unit profitability faster than selling price Slide 8 Trailing Twelve Month Gross Profit per Ton $3.45 $3.35 $3.19 $0.56 $3.04 $2.89 +19% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 YoY% Change in TTM: Volume – tons* +6% +8% +9% +10% +11% Price - $/ton +3% +3% +3% +2% +3% Gros
Slide 9: Incremental Margin Leverage in Aggregates
Incremental Margin Leverage in Aggregates Consistently strong incremental flow through Slide 9 Aggregates Gross Profit Flow Through on Incremental Freight-Adjusted Revenue Note: Excludes impact of acquisitions completed during 2014. Incremental Margins = Change in Segment Gross Profit / Change in Fr
Slide 10: Operating Leverage from Demand Momentum
Operating Leverage from Demand Momentum Aggregates Segment results in early stages of recovery Slide 10 26 million incremental tons; $215 million in incremental gross profit. Aggregates Volume (tons shipped, millions) 166 26 140 TTM Q2 13 TTM Q1 15 Change Shipments at normal demand: ~255 million Gro
Slide 11: Asphalt and Concrete Performance
Asphalt and Concrete Performance Year-over-year earnings improvement Slide 11 First Quarter 2015 vs 2014 Amounts in millions 2015 F / (U) Asphalt Segment Shipments (tons) 1.77 0.33 Segment Sales $ 103.1 $ 18.9 Gross Profit $ 8.8 $ 4.1 Gross Profit / ton $ 4.99 $ 1.72 Concrete Segment Shipments (cyds
Slide 12: Refinancing Summary
Refinancing Summary Extension of near term maturities Slide 12 Sources & Uses of Cash ($ in millions) Sources Cash $ 69 Accounting Charges to Interest Expense ($ in millions) Revolver 241 2025 Note 400 Q1 15 Actual Q2 15 Estimate $ 710 Cash Cost $ 18.6 $ 42.8 Uses Non-Cash Cost 3.1 4.1 Total Cost $
Slide 13: Refinancing Summary
Refinancing Summary Actions taken enhance financial flexibility Slide 13 Next 10 Years Debt Maturity Schedule ($ millions) Pre-Transactions Post-Transactions $650 $606 $600 $523 Revolving Credit Facility (balance includes $150Mn $400 New 4.5% Bond note due Dec. ‘15) $241 $219 $150 $125 $- $- $- $- $
Slide 14: Highway Funding
Highway Funding State-led funding initiatives bolstering highway spending Slide 14 • State and local tax receipts are growing, Vulcan states > U.S. • Last 18 months, 10 States and D.C. have passed tax increases for funding • 33 States and D.C. now have transportation-PPP enabling legislation • Key s
Slide 15: FY 2015 Outlook
FY 2015 Outlook Momentum underscores confidence in full year expectations Slide 15 Overall Adjusted EBITDA: $775 to $825 Million Midpoint of Underlying Commentary Assumptions Aggregates 180 Mn tons, Same-store basis up approximately 8 percent Volume Up 11 percent Aggregates Price Up 6 percent Streng
Slide 16: Question and Answer Session
Question and Answer Session Slide 16 Earnings Conference Call – May 5, 2015
Slide 17: Appendix
Appendix Aggregates incremental gross profit margin calculation Slide 17 First Quarter YoY Chg Trailing Twelve Months YoY Chg Amounts in millions 2015* 2014 Amount % 1Q 2015* 1Q 2014 Amount % Aggregates Shipments - Tons 32.3 29.6 2.7 9% 163.3 147.7 15.6 10% Freight-Adjusted Sales Price $ 11.38 $ 10.
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Slide 18 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 any earnings measure defined by GAAP. We
Slide 19: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) Slide 19 Aggregates segment gross profit as a percentage of freight-adjusted revenues Aggregates segment gross profit margin as a percentage of freight-adjusted revenues is not a GAAP measure. We present this metric as it is consistent with the basis b
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