Vulcan Materials Company (holding Company) · NYSE:VMC
Vulcan Materials Company (holding Company) — Q4 2023 Earnings Presentation
18 slides from Vulcan Materials Company (holding Company)'s earnings presentation, Feb 16, 2024
Slide 1: 4Q 2023 Supplemental Information
4Q 2023 SUPPLEMENTAL INFORMATION FEBRUARY 16, 2024 1
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Safe Harbor and Non-GAAP Financial Measures This presentation 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
Slide 3: 2023 Highlights
2023 Highlights Strong earnings underpinned by uniquely positioned aggregates business Pricing Vulcan Way of Aggregates is a Continued Financial strength momentum Selling and price/cost winner earnings growth and flexibility to across our Operating drive through the and disciplined continue to grow
Slide 4: 2023 Highlights
2023 Highlights Operating disciplines and consistent execution resulted in strong cash conversion $1,537 $669 93% $935 Conversion of $868 Net Earnings Net Earnings Operating Capex* Free Cash Flow Cash Flow** Amounts in millions *Capex excludes $204 million of capital spending for opportunistic purch
Slide 5: 4Q 2023 Key Performance Indicators – Aggregates
4Q 2023 Key Performance Indicators – Aggregates Pricing momentum, solid execution and moderating inflation drove strong improvement in unit profitability Volume 55.3M tons, +2% Freight-Adjusted Price Cash Gross Profit* $19.32/ton, +14% $9.92/ton, +21% Cash Cost of Sales* $9.40/ton, +7% *Non-GAAP mea
Slide 6: Aggregates Pricing
Aggregates Pricing Pricing environment remains healthy with continued momentum across our footprint Trailing-Twelve Months Freight-Adjusted Price +16% $19.00 $18.45 +$2.60 $17.76 $17.10 +10% $16.40 $15.91 +$1.53 $15.41 $15.06 $14.87 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 6
Slide 7: 4Q 2023 Key Performance Indicators – Asphalt
4Q 2023 Key Performance Indicators – Asphalt Strong earnings improvement driven by higher volume and lower liquid asphalt costs Volume 3.3M tons, +20% Average Sales Price Cash Gross Profit* $76.92/ton, +2% $13.51/ton, +43% Cash Cost of Sales* $63.41/ton, -3% *Non-GAAP measure. See appendix for recon
Slide 8: 4Q 2023 Key Performance Indicators – Concrete
4Q 2023 Key Performance Indicators – Concrete Pricing growth drove unit profitability improvement despite lower volumes Volume 1.5M cyds, -36% Average Sales Price Cash Gross Profit* $173.83/cyd, +10% $16.18/cyd, +53% Cash Cost of Sales* $157.65/cyd, +7% *Non-GAAP measure. See appendix for reconcilia
Slide 9: Financial Position
Financial Position Well positioned for future growth Net Debt to Weighted-Average Weighted-Average Adjusted EBITDA* Debt Maturity Interest Rate 1.5x 10 years 4.9% *Non-GAAP measure. See appendix for reconciliation. 9
Slide 10: Financial Position
Financial Position Strong cash generation coupled with disciplined capital management drives shareholder value Invested in Deployed capital Returned capital Returned capital maintenance and for opportunistic to shareholders to shareholders growth capital, purchases of through through dividends inclu
Slide 11: End Market Outlook Commentary
End Market Outlook Commentary • Underlying fundamentals for residential construction activity remain firmly in place • Strength in single-family offset by decline in multi-family Private • Nonresidential demand continues to benefit from manufacturing projects in the Southeast, while warehouse activi
Slide 12: 2024 Outlook
2024 Outlook Pricing momentum coupled with the compounding benefits of our Adjusted EBITDA* operating execution drive $2.15 to $2.30 another year of strong billion earnings growth +11% organic growth Demand growth in public offset at the midpoint by softness in private versus 2023 *Non-GAAP measure.
Slide 13: Serving the Right U.S. Markets
Serving the Right U.S. Markets Well positioned to capture U.S. market opportunities 90% 60% Revenues tied to Population living markets where Vulcan within 60 miles of a has a #1 or #2 position Vulcan operation 35 of top 50 $20B Fastest growing Aggregates opportunity markets served by in Vulcan-serve
Slide 14: Competing and Winning, Locally
Competing and Winning, Locally Strengthening existing capabilities to drive the next horizon of growth and profitability VWS VWO The Vulcan Way of Selling The Vulcan Way of Operating Commercial Logistics Operational Strategic Excellence Innovation Excellence Sourcing 14
Slide 15: Proven Track Record of Our Aggregates-led Business
Proven Track Record of Our Aggregates-led Business Best-in-class execution leads to resiliency and durability regardless of macro challenges Trailing-Twelve Months Aggregates Cash Gross Profit / Ton* $9.46 $7.83 $7.43 $7.11 $6.74 $6.32 2018 2019 2020 2021 2022 2023 *Non-GAAP measure. See appendix fo
Slide 16: Well Positioned for Continued Growth and Value Creation
Well Positioned for Continued Growth and Value Creation Durable Business Industry Leader with Strong Cash Flow Model to Extend the Clear Competitive Generation and Cycle and Sustain Advantages Investment-Grade Growth Balance Sheet 16
Slide 17: Durable Growth, The Vulcan Way
Durable Growth, The Vulcan Way Our commitment to excellence starts with our people 17
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations EBITDA Aggregates Segment Cash Gross Profit and Cash Cost of Sales EBITDA is an acronym for "Earnings Before Interest, Taxes, Depreciation and Amortization". Generally Accepted Accounting Principles (GAAP) Aggregates segment cash gross profit adds back noncash charges for de
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