Vulcan Materials Company (holding Company) · NYSE:VMC
Vulcan Materials Company (holding Company) — Q3 2023 Earnings Presentation
17 slides from Vulcan Materials Company (holding Company)'s earnings presentation, Oct 26, 2023
Slide 1: 3Q 2023 Supplemental Information
3Q 2023 SUPPLEMENTAL INFORMATION OCTOBER 26, 2023 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 2023 Highlights
3Q 2023 Highlights Sales and operating execution drove strong earnings growth and margin expansion Solid top-line Compounding Aggregates is a Margin Continued growth driven benefits of price/cost winner expansion in earnings growth by pricing consistent both asphalt and disciplined momentum executio
Slide 4: 3Q 2023 Key Performance Indicators – Aggregates
3Q 2023 Key Performance Indicators – Aggregates Pricing momentum and operational execution continued to drive strong unit profitability improvement Volume 63.9M tons, -2% Freight-Adjusted Price Cash Gross Profit* $19.29/ton, +15% $9.92/ton, +18% Cash Cost of Sales* $9.37/ton, +12% *Non-GAAP measure.
Slide 5: Aggregates Pricing
Aggregates Pricing Pricing environment remains positive with continued momentum Trailing-Twelve Months Freight-Adjusted Price +15% $18.86 $18.45 +$2.46 $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 Guidance 5
Slide 6: 3Q 2023 Key Performance Indicators – Asphalt
3Q 2023 Key Performance Indicators – Asphalt Strong earnings improvement driven by revenue growth and lower liquid asphalt cost Volume 4.0M tons, +11% Average Sales Price Cash Gross Profit* $76.22/ton, +2% $16.11/ton, +52% Cash Cost of Sales* $60.11/ton, -6% *Non-GAAP measure. See appendix for recon
Slide 7: 3Q 2023 Key Performance Indicators – Concrete
3Q 2023 Key Performance Indicators – Concrete Pricing growth drove unit profitability improvement despite lower volumes Volume 2.1M cyds, -27% Average Sales Price Cash Gross Profit* $169.98/cyd, +11% $21.74/cyd, +32% Cash Cost of Sales* $148.24/cyd, +8% *Non-GAAP measure. See appendix for reconcilia
Slide 8: Financial Position
Financial Position Financial strength and flexibility to sustain and strengthen business operations Net Debt to Weighted-Average Adjusted EBITDA* Debt Maturity 1.8x 10.2 years *Non-GAAP measure. See appendix for reconciliation. 8
Slide 9: End Market Outlook – U.S. Residential
End Market Outlook – U.S. Residential Single-Family has rebounded in recent months Single-Family Starts Multi-Family Starts Starts Year-over-Year Change 250,000 Starts Year-over-Year Change 20% 250,000 10% 15% 5% 200,000 10% 0% 200,000 5% -5% -10% 150,000 0% 150,000 -15% -5% -20% 100,000 -10% 100,00
Slide 10: End Market Outlook – Private Nonresidential
End Market Outlook – Private Nonresidential Large-scale manufacturing projects in the Southeast helping offset weakness in other nonresidential categories Year-over-Year Change in Contract Awards SEP ‘22 SEP ‘23 (5)% (11)% VMC Markets Other Markets Trailing-Twelve Months square footage as of Septemb
Slide 11: End Market Outlook – Highways
End Market Outlook – Highways Fiscal Year 2024 contemplates another year of double-digit growth in capital spending Fiscal Year State DOT Budgets (Nominal $) $214 $192 $172 $132 +14% $116 +13% $103 2022 2023 2024 Total Program Expenditures Highway & Bridge Capital Spending IIJA signed into law Novem
Slide 12: 2023 Outlook
2023 Outlook Adjusted EBITDA* Compounding benefits of $1.95 to $2.00 our strategic disciplines billion help drive another year of +20% to +23% strong earnings growth versus 2022 *Non-GAAP measure. See appendix for reconciliation. 12
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: 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* $9.05 $7.64 $7.33 $7.07 $6.69 $6.14 3Q '18 3Q '19 3Q '20 3Q '21 3Q '22 3Q '23 *Non-GAAP measure. See
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 Aggregates Segment Cash Gross Profit and Cash Cost of Sales EBITDA is an acronym for "Earnings Before Interest, Taxes, Depreciation and Amortization" and excludes discontinued operations. GAAP does Aggregates segment cash gross profit adds back noncash charges for dep
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