Vulcan Materials Company (holding Company) · NYSE:VMC
Vulcan Materials Company (holding Company) — Q3 2022 Earnings Presentation
18 slides from Vulcan Materials Company (holding Company)'s earnings presentation, Nov 2, 2022
Slide 1: 3Q 2022 Supplemental Information for Earnings Conference Call
3Q 2022 SUPPLEMENTAL INFORMATION FOR EARNINGS CONFERENCE CALL NOVEMBER 2, 2022 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: 3Q 2022 Highlights
3Q 2022 Highlights Pricing momentum and solid operational execution drove strong results Total Adjusted Aggregates Aggregates Non-Aggregates Revenues EBITDA* Gross Profit Cash Gross Cash Gross Profit per Ton* Profit* $2.1B $507M $436M $8.41 $87M +38% +21% +17% +9% +122% *Non-GAAP measure. See append
Slide 4: 3Q 2022 Key Performance Indicators - Aggregates
3Q 2022 Key Performance Indicators - Aggregates Double-digit price growth and strong operational performance more than offset cost inflation Volume 65.4M tons, +9% Freight-Adjusted Price $16.79/ton, +12% Cash Gross Profit* $8.41/ton, +9% Total Cash Cost of Sales* $8.38/ton, +17% *Non-GAAP measure. S
Slide 5: Pricing Momentum in Aggregates
Pricing Momentum in Aggregates Pricing continues to strengthen with growth widespread across our markets Year-over-Year Change in Mix-Adjusted Price 12.4% 9.6% 6.9% 4.2% 3.5% 2.6% 1.3% Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 5
Slide 6: 3Q 2022 Key Performance Indicators - Asphalt
3Q 2022 Key Performance Indicators - Asphalt Continued pricing momentum more than offset a 42% increase in liquid asphalt Volume: 3.6M tons +13% Avg. Sales Price: $74.80/ton Cash Gross Profit* +$15.37 or +26% $10.58/ton, +111% Cash Cost of Sales: $64.22/ton* +$9.80 or 18% *Non-GAAP measure. See appe
Slide 7: 3Q 2022 Key Performance Indicators - Concrete
3Q 2022 Key Performance Indicators - Concrete Acquisitions plus volume and price growth in legacy operations drove earnings growth Volume: 2.9M tons +83% Avg. Sales Price: $153.54/cyd Cash Gross Profit* +$17.25 or +13% $16.48/cyd, +15% Cash Cost of Sales: $137.06/cyd* +$15.15 or 12% *Non-GAAP measur
Slide 8: Financial Position
Financial Position Financial strength and flexibility to sustain and strengthen business operations 2.5x 11.3 years 4.1% Net Debt to Weighted-Average Weighted-Average Adjusted EBITDA* Debt Maturity Interest Rate As of September 30, 2022. EBITDA is a non-GAAP measures. See Appendix for reconciliation
Slide 9: End Market Outlook - Residential
End Market Outlook - Residential Single-family slow down buffered by multi-family growth, Vulcan markets outperform TTM Total Residential Starts SEPT ‘22 SEPT ‘21 SF (8)% SF (10)% MF +24% MF +14% Total +4% Total (1)% VMC Markets Other Markets Includes both single-family and multi-family. TTM equals
Slide 10: End Market Outlook – Private Nonresidential
End Market Outlook – Private Nonresidential Leading indicators point to growth into 2023, Vulcan markets outperform TTM Private Nonresidential Starts VMC Markets +29% YoY Other Markets +11% YoY SEPT ‘19 SEPT ‘20 SEPT ‘21 SEPT ‘22 TTM equals trailing-twelve-months. Starts measured in millions of squa
Slide 11: End Market Outlook - Highways
End Market Outlook - Highways Construction starts are in growth mode with visibility to IIJA funding taking hold Year-over-Year Change in TTM U.S. Highway Starts 14% 14% 11% 10% 10% 9% 7% 5% 2% -4% DEC '21 JAN '22 FEB '22 MAR '22 APR '22 MAY '22 JUN '22 JUL '22 AUG '22 SEP '22 TTM equals trailing-tw
Slide 12: Robust Outlook for Public Sector Demand
Robust Outlook for Public Sector Demand IIJA funding is driving strong aggregates demand Mix of $853 Billion in Guaranteed Funding from the IIJA Highway & Bridges 11% Energy/Environment/Resiliency Waterworks 8% Ports & Waterways 1% Multi-modal Grants Increasing use 8% 41% of aggregates Airports/Air
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 20 of top 25 $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: Consistent Execution Makes the Best Better
Consistent Execution Makes the Best Better Industry-leading profitability gap widened, even during macro headwinds TTM Aggregates Cash Gross Profit / Ton* $7.64 5.6% CAGR $6.14 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 Trailing-twelve-month
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: Non-GAAP Reconciliations
Non-GAAP Reconciliations 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 EBITDA for cer
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Aggregates Segment Cash Gross Profit and Cash Cost of Sales Aggregates segment cash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization (DDA&A) to Aggregates segment gross profit. Aggregates segment cash gross profit per ton is comp
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