BIRMINGHAM, Ala., Nov. 1, 2010 /PRNewswire-FirstCall/ -- Vulcan Materials Company , the nation's largest producer of construction aggregates, announced results today for the third quarter ended September 30, 2010.
(Photo: http://photos.prnewswire.com/prnh/20090710/CL44887LOGO ) (Photo: http://www.newscom.com/cgi-bin/prnh/20090710/CL44887LOGO ) Third Quarter Summary and Comparisons with the Prior Year -- Net earnings were $0.10 per diluted share and earnings from continuing operations were $11 million, or $0.08 per diluted share. -- EBITDA was $150 million and cash earnings were $116 million. -- Aggregates shipments declined 2.6 percent, decreasing pretax earnings $7 million. -- The average price for aggregates was in line with the prior year, with wide variations across markets. -- Excluding energy costs, unit cost of sales for aggregates decreased 2 percent. -- Unit cost for diesel fuel increased 17 percent, reducing pretax earnings $4 million. -- Unit cost for liquid asphalt increased 14 percent, reducing pretax earnings $6 million. -- Selling, administrative and general expenses were reduced by $2 million.
Commenting for the Company, Don James, Vulcan's Chairman and Chief Executive Officer, stated, "Despite the modest decline in third quarter aggregates shipments, we are encouraged by underlying shipping trends. Trailing twelve month aggregates shipments have been increasing since February in spite of significantly lower volumes in the third quarter in Illinois due to a labor strike affecting our customers. In asphalt, trailing twelve month shipments have been relatively stable for the last 4 months.
"We continue to focus on controlling costs and managing production levels to meet current demand. During the last two years, we have reduced inventory levels of aggregates across our footprint. This action, while negatively affecting reported earnings, has improved cash flows and better positions us operationally for a recovery in demand. In the third quarter, aggregates production equaled sales volumes and, as a result, our unit cost of sales was in line with the prior year, notwithstanding the increase in energy costs. Going forward, we believe the cumulative effect of aggressively managing our inventory levels during the past two years has better positioned us to benefit from higher production levels.
"Contract awards for highway construction in Vulcan-served states continue to out-pace other states. During the twelve months ending September 2010, total contract awards for highway construction in Vulcan-served states, including awards for federal, state and local projects, increased 7 percent from the prior year compared to 3 percent for other states. Through September 2010, the Federal Highway Administration reported that only 42 percent of the total stimulus funds obligated for highways in Vulcan's 10 largest revenue states had been spent - which bodes well for increased construction activity from federal stimulus spending for the remainder of 2010 and 2011."
Third Quarter Operating Results Commentary
Third quarter aggregates earnings were $125 million versus $133 million in the prior year. Aggregates shipments declined 2.6 percent from the prior year's third quarter, accounting for most of the year-over-year decline in segment earnings. An industry-wide strike during most of July by construction workers in Illinois affected our customers and accounted for the year-over-year decline in shipments. Otherwise, many Vulcan-served markets realized solid increases in shipments versus the prior year's third quarter due primarily to stronger demand from public infrastructure projects and some improvement in single-family housing starts while some other markets realized declines in shipments.
The average unit price for aggregates in the third quarter was in line with the prior year but pricing continues to reflect wide variations across Vulcan-served markets. Aggregates unit costs of sales were in line with the prior year's third quarter despite higher energy costs.
Segment earnings in asphalt were $8 million lower than the prior year due primarily to a 14 percent increase in the unit cost for liquid asphalt and lower selling prices. Selling prices for asphalt mix generally lag increasing liquid asphalt costs and were further held in check due to competitive pressures. Asphalt volumes decreased 3 percent from the prior year's third quarter. Sequentially, unit material margins in the third quarter increased 10 percent from the second quarter due to lower unit costs.
Concrete segment earnings declined $9 million from the prior year's third quarter due principally to lower selling prices. Cement segment earnings in the third quarter were a loss of $2 million due primarily to lower selling prices.
Selling, administrative and general expense in the third quarter was $78 million versus $80 million in the prior year's third quarter. The year-over-year decline resulted mostly from lower employee-related expenses.
All results are unaudited. Outlook Highlights and Commentary
Commenting on the Company's outlook for the remainder of the year, Mr. James stated, "While the current construction environment remains challenging, our optimism that the worst is behind us continues to grow. First, from the perspective of the overall economy, most GDP forecasts for the U.S. indicate further growth. In past economic cycles, demand for aggregates has improved as GDP has grown during the initial years of economic recovery. Additionally, state and local tax revenues have historically rebounded after GDP recovers. Since the second quarter of 2009, all Vulcan-served states have shown positive growth in gross state product - an indication economic recovery is underway.
"Public construction activity, particularly highways, continues to provide solid support for aggregates demand. Trailing twelve month contract awards for highways continue to show improvement versus the prior year, and approximately half of the $26 billion of total stimulus funds obligated for highways in the U.S. remains to be spent, according to the Federal Highway Administration. In August, the Congressional Budget Office forecasted total outlays for federal highway construction for the fiscal year ending September 2011 to increase 7 percent from the fiscal year just ended. This projected increase includes outlays from the regular highway funding program as well as stimulus funds.
"Private construction activity has remained challenging, particularly private nonresidential construction. Single-family housing starts appear to have turned the corner, bottoming late in 2009. Through September, single-family housing starts for the trailing twelve months have increased 10 percent versus the same period last year, due in part to the home-buyers tax credit that expired in April. While private nonresidential construction remains weak, the rate of decline in contract awards has slowed. A number of external forecasts now are calling for private nonresidential construction activity to bottom in 2011. The start of a recovery in this end market will be influenced by employment growth, business investment and lending activity.
"Overall, pricing for aggregates remains solid. A number of our markets are realizing year-over-year price growth, although pricing in certain other markets has declined due to competitive pressures. As a result, we expect pricing in the fourth quarter to approximate the prior year's level. Assuming typical weather patterns, we expect fourth quarter aggregates shipments to be up slightly from last year's level.
"In our asphalt business, material margins on each ton of asphalt mix sold have trended higher since the first quarter of this year due to a relatively more stable cost environment for liquid asphalt. We expect this trend to continue in the fourth quarter. In concrete and cement, we expect higher volumes to offset lower prices.
"Debt reduction and achieving target debt ratios remain a priority. We expect to reduce total debt by $120 million by the end of 2010. For the full year, we now expect capital spending to be less than $100 million, down from the previous guidance of $125 million.
"Our available production capacity positions Vulcan to participate efficiently and effectively in the increase in federal highway spending projected by the Congressional Budget Office. By the second half of 2011, we expect that continued growth in the overall economy and an improving job market will begin driving an increase in private construction activity, accelerating the earnings leverage of the Company."
Conference Call
Vulcan will host a conference call at 10:00 a.m. CDT on November 2, 2010. Investors and other interested parties in the U.S. may access the teleconference live by calling 800.884.5695 approximately 10 minutes before the scheduled start. International participants can dial 617.786.2960. The access code is 36126335. A live webcast will be available via the Internet through Vulcan's home page at http://www.vulcanmaterials.com/. The conference call will be recorded and available for replay approximately two hours after the call through November 9, 2010.
Vulcan Materials Company, a member of the S&P 500 Index, is the nation's largest producer of construction aggregates, a major producer of asphalt mix and concrete and a leading producer of cement in Florida.
Certain matters discussed in this release, including expectations regarding future performance, contain forward-looking statements that are subject to assumptions, risks and uncertainties that could cause actual results to differ materially from those projected. These assumptions, risks and uncertainties include, but are not limited to, those associated with general economic and business conditions; changes in interest rates; the timing and amount of federal, state and local funding for infrastructure; changes in the level of spending for private residential and nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions; the outcome of pending legal proceedings; pricing for our products; weather and other natural phenomena; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by the Company; volatility in pension plan asset values which may require cash contributions to the pension plans; the timing and amount of any future payments to be received under the 5CP earn-out contained in the agreement for the divestiture of the Company's Chemicals business; the impact of environmental clean-up costs and other liabilities relating to previously divested businesses; the Company's ability to secure and permit aggregates reserves in strategically located areas; the Company's ability to manage and successfully integrate acquisitions; the impact of the global economic recession on our business and financial condition and access to the capital markets; the potential impact of future legislation or regulations relating to climate change or greenhouse gas emissions; and other assumptions, risks and uncertainties detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year. Forward-looking statements speak only as of the date hereof, and Vulcan assumes no obligation to publicly update such statements.
Table A Vulcan Materials Company and Subsidiary Companies (Amounts and shares in thousands, except per share data) Three Months Ended Nine Months Ended Consolidated Statements of Earnings September 30 September 30 ------------ ------------ (Condensed and unaudited) 2010 2009 2010 2009 ----------- ---- ---- ---- ---- Net sales $699,792 $738,664 $1,857,085 $1,987,939 Delivery revenues 43,412 39,528 115,534 112,407 ------ ------ ------- ------- Total revenues 743,204 778,192 1,972,619 2,100,346 Cost of goods sold 573,045 584,184 1,607,109 1,610,018 Delivery costs 43,412 39,528 115,534 112,407 ------ ------ ------- ------- Cost of revenues 616,457 623,712 1,722,643 1,722,425 ------- ------- --------- --------- Gross profit 126,747 154,480 249,976 377,921 Selling, administrative and general expenses 77,560 79,558 247,431 238,629 Gain on sale of property, plant & equipment and businesses, net 476 7,496 50,210 10,653 Charge for legal settlement - - 40,000 - Other operating income (expense), net 769 286 2,117 (2,885) Operating earnings 50,432 82,704 14,872 147,060 Other income, net 1,637 2,756 1,780 4,578 Interest expense, net 47,526 43,519 134,541 130,029 ------ ------ ------- ------- Earnings (loss) from continuing operations before income taxes 4,543 41,941 (117,889) 21,609 Benefit from income taxes (6,048) (5,983) (61,491) (9,621) ------ ------ ------- ------ Earnings (loss) from continuing operations 10,591 47,924 (56,398) 31,230 Earnings on discontinued operations, net of tax 2,655 6,308 6,905 12,433 ----- ----- ----- ------ Net earnings (loss) $13,246 $54,232 $(49,493) $43,663 ========= ======= ======= ======== ======= Basic earnings (loss) per share: Continuing operations $0.08 $0.38 $(0.44) $0.27 Discontinued operations 0.02 0.05 0.05 0.10 ---- ---- ---- ---- Net earnings (loss) per share $0.10 $0.43 $(0.39) $0.37 Diluted earnings (loss) per share: Continuing operations $0.08 $0.38 $(0.44) $0.27 Discontinued operations 0.02 0.05 0.05 0.10 ---- ---- ---- ---- Net earnings (loss) per share $0.10 $0.43 $(0.39) $0.37 Weighted- average common shares outstanding: Basic 128,602 125,361 127,840 116,533 Assuming dilution 128,910 125,859 127,840 117,047 Cash dividends declared per share of common stock $0.25 $0.25 $0.75 $1.23 Depreciation, depletion, accretion and amortization $97,697 $99,243 $289,174 $298,158 Effective tax rate from continuing operations -133.1% -14.3% 52.2% -44.5% =========== ====== ===== ==== ===== Table B Vulcan Materials Company and Subsidiary Companies (Amounts in thousands, except per share data) Consolidated Balance Sheets September 30 December 31 September 30 (Condensed and unaudited) 2010 2009 2009 -------------- ---- ---- ---- Assets ------ Cash and cash equivalents $82,496 $22,265 $46,547 Restricted cash 531 - - Medium-term investments 3,910 4,111 6,803 Accounts and notes receivable: Accounts and notes receivable, gross 414,316 276,746 408,407 Less: Allowance for doubtful accounts (9,382) (8,722) (9,394) ------ ------ ------ Accounts and notes receivable, net 404,934 268,024 399,013 Inventories: Finished products 251,457 261,752 265,422 Raw materials 22,924 21,807 24,565 Products in process 5,905 3,907 5,085 Operating supplies and other 35,958 37,567 36,623 ------ ------ ------ Inventories 316,244 325,033 331,695 Deferred income taxes 66,718 57,967 67,967 Prepaid expenses 42,729 50,817 33,466 Assets held for sale 14,582 15,072 - ------ ------ --- Total current assets 932,144 743,289 885,491 Investments and long-term receivables 33,808 33,283 31,424 Property, plant & equipment: Property, plant & equipment, cost 6,656,252 6,653,261 6,678,317 Less: Reserve for depr., depl. & amort. (2,987,287) (2,778,590) (2,713,057) ---------- ---------- ---------- Property, plant & equipment, net 3,668,965 3,874,671 3,965,260 Goodwill 3,093,979 3,093,979 3,093,979 Other intangible assets, net 693,779 682,643 681,087 Other assets 106,922 105,085 105,927 ------- ------- ------- Total assets $8,529,597 $8,532,950 $8,763,168 ========== ========== ========== Liabilities and Shareholders' Equity --------------- Current maturities of long-term debt $325,249 $385,381 $60,421 Short-term borrowings - 236,512 286,357 Trade payables and accruals 138,462 121,324 141,884 Other current liabilities 207,085 113,109 187,171 Liabilities of assets held for sale 460 369 - --- --- --- Total current liabilities 671,256 856,695 675,833 Long-term debt 2,432,521 2,116,120 2,506,170 Deferred income taxes 849,925 887,268 896,598 Other noncurrent liabilities 537,041 620,845 599,039 ------- ------- ------- Total liabilities 4,490,743 4,480,928 4,677,640 --------- --------- --------- Shareholders' equity: Common stock, $1 par value 128,391 125,912 125,401 Capital in excess of par value 2,487,538 2,368,228 2,342,765 Retained earnings 1,606,754 1,752,240 1,797,036 Accumulated other comprehensive loss (183,829) (194,358) (179,674) -------- -------- -------- Shareholders' equity 4,038,854 4,052,022 4,085,528 --------- --------- --------- Total liabilities and shareholders' equity $8,529,597 $8,532,950 $8,763,168 ================== ========== ========== ========== Table C Vulcan Materials Company and Subsidiary Companies (Amounts in thousands) Nine Months Ended Consolidated Statements of Cash Flows September 30 ------------ (Condensed and unaudited) 2010 2009 ------------------------- ---- ---- Operating Activities -------------------- Net earnings (loss) $(49,493) $43,663 Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation, depletion, accretion and amortization 289,174 298,158 Net gain on sale of property, plant & equipment and businesses (59,004) (11,465) Contributions to pension plans (23,400) (26,793) Share-based compensation 15,198 21,870 Deferred tax provision (51,060) (26,477) Changes in assets and liabilities before initial effects of business acquisitions and dispositions (6,647) 51,845 Other, net 13,059 4,021 ------ ----- Net cash provided by operating activities 127,827 354,822 ------- ------- Investing Activities -------------------- Purchases of property, plant & equipment (62,104) (94,165) Proceeds from sale of property, plant & equipment 4,008 6,399 Proceeds from sale of businesses, net of transaction costs 50,954 16,075 Payment for businesses acquired, net of acquired cash (35,404) (36,980) Redemption of medium-term investments 22 30,590 Other, net 341 676 --- --- Net cash used for investing activities (42,183) (77,405) ------- ------- Financing Activities -------------------- Net short-term payments (236,512) (798,118) Payment of current maturities and long-term debt (193,994) (296,555) Proceeds from issuance of long-term debt, net of discounts 450,000 397,660 Debt issuance costs (3,058) (3,033) Proceeds from issuance of common stock 41,734 587,129 Dividends paid (95,696) (140,048) Proceeds from exercise of stock options 12,597 10,958 Other, net (484) 943 ---- --- Net cash used for financing activities (25,413) (241,064) ------- -------- Net increase in cash and cash equivalents 60,231 36,353 Cash and cash equivalents at beginning of year 22,265 10,194 Cash and cash equivalents at end of period $82,496 $46,547 ========================================== ======= ======= Table D Segment Financial Data and Unit Shipments (Amounts in thousands, except per unit data) Three Months Ended Nine Months Ended September 30 September 30 ------------ ------------ 2010 2009 2010 2009 ---- ---- ---- ---- Total Revenues Aggregates segment (a) $514,332 $532,936 $1,369,492 $1,432,353 Intersegment sales (44,792) (48,070) (119,239) (128,048) ------- ------- -------- -------- Net sales 469,540 484,866 1,250,253 1,304,305 ------- ------- --------- --------- Concrete segment (b) 105,049 119,284 293,028 348,730 Intersegment sales - (32) (7) (118) --- --- --- ---- Net sales 105,049 119,252 293,021 348,612 ------- ------- ------- ------- Asphalt mix segment 115,788 123,922 282,309 305,983 Intersegment sales - - - - --- --- --- --- Net sales 115,788 123,922 282,309 305,983 ------- ------- ------- ------- Cement segment (c) 20,360 19,829 61,208 56,423 Intersegment sales (10,945) (9,205) (29,706) (27,384) ------- ------ ------- ------- Net sales 9,415 10,624 31,502 29,039 ----- ------ ------ ------ Total Net sales 699,792 738,664 1,857,085 1,987,939 Delivery revenues 43,412 39,528 115,534 112,407 Total revenues $743,204 $778,192 $1,972,619 $2,100,346 ======== ======== ========== ========== Gross Profit Aggregates $125,129 $133,229 $262,514 $323,675 Concrete (10,070) (604) (31,736) (3,671) Asphalt mix 13,440 21,334 21,756 59,229 Cement (1,752) 521 (2,558) (1,312) Total gross profit $126,747 $154,480 $249,976 $377,921 ======== ======== ======== ======== Depreciation, depletion, accretion and amortization Aggregates $74,512 $78,060 $222,561 $235,146 Concrete 13,622 12,786 40,064 38,994 Asphalt mix 2,212 2,194 6,689 6,374 Cement 5,787 4,924 15,360 14,332 Corporate and other unallocated 1,564 1,279 4,500 3,312 Total DD&A $97,697 $99,243 $289,174 $298,158 ======= ======= ======== ======== Unit Shipments Aggregates customer tons 40,079 41,090 105,144 108,424 Internal tons (d) 3,314 3,454 8,748 8,895 ----- ----- ----- ----- Aggregates - tons 43,393 44,544 113,892 117,319 ====== ====== ======= ======= Ready-mixed concrete - cubic yards 1,137 1,191 3,165 3,407 Asphalt mix - tons 2,258 2,336 5,462 5,636 Cement customer tons 70 81 245 204 Internal tons (d) 148 97 390 287 Cement -tons 218 178 635 491 === === === === Average Unit Sales Price (including internal sales) Aggregates (freight- adjusted) (e) $10.18 $10.20 $10.18 $10.27 Ready-mixed concrete $87.62 $96.15 $86.95 $97.40 Asphalt mix $50.62 $52.38 $50.54 $53.50 Cement $79.56 $93.31 $80.01 $96.17 (a) Includes crushed stone, sand and gravel, sand, other aggregates, as well as transportation and service revenues associated with the aggregates business. (b) Includes ready-mixed concrete, concrete block, precast concrete, as well as building materials purchased for resale. (c) Includes cement and calcium products. (d) Represents tons shipped primarily to our downstream operations (e.g., asphalt mix and ready-mixed concrete). Sales from internal shipments are eliminated in net sales presented above and in the accompanying Condensed Consolidated Statements of Earnings. (e) Freight-adjusted sales price is calculated as total sales dollars (internal and external) less freight to remote distribution sites divided by total sales units (internal and external). Table E 1. Supplemental Cash Flow Information Supplemental information referable to the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30 is summarized below: (Amounts in thousands) 2010 2009 ---- ---- Supplemental Disclosure of Cash Flow Information ------------------------------------ Cash paid (refunded) during the period for: Interest $101,917 $109,586 Income taxes 3,897 (9,706) Supplemental Schedule of Noncash Investing and Financing Activities ---------------------------------------------- Liabilities assumed in business acquisitions 150 - Accrued liabilities for purchases of property, plant & equipment 4,674 13,436 Note received from sale of businesses - 1,450 Debt issued for purchases of property, plant & equipment - 1,984 Stock issued for pension contribution 53,864 - Proceeds receivable from issuance of common stock - 1,712 2. Reconciliation of Non-GAAP Measures Net cash provided by operating activities $127,827 $354,822 Purchases of property, plant & equipment (62,104) (94,165) ------- ------- Free cash flow $65,723 $260,657 ======= ======== Free cash flow deducts purchases of property, plant & equipment from net cash provided by operating activities. This financial metric is used by the investment community as an indicator of the company's ability to incur and service debt. It is not defined by Generally Accepted Accounting Principles (GAAP); thus, it should not be considered as an alternative to net cash provided by operating activities or any other liquidity measure defined by GAAP. This metric is presented for the convenience of investment professionals that use such metrics in their analysis and to provide our shareholders with an understanding of the metrics we use to assess performance and to monitor our cash and liquidity positions. We internally use free cash flow and other such measures to assess the operating performance of our various business units and the consolidated company. We do not use this metric as a measure to allocate resources internally. Table F Reconciliation of Non-GAAP Measures EBITDA and Cash Earnings Reconciliations (Amounts in thousands) Three Months Ended September 30 ------------ 2010 2009 ---- ---- Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Cash Earnings Net cash provided by operating activities $109,171 $185,420 Changes in operating assets and liabilities before initial effects of business acquisitions and dispositions 9,231 (87,695) Other net operating items (providing) using cash (7,459) 55,750 Earnings on discontinued operations, net of tax (2,655) (6,308) Benefit from income taxes (6,048) (5,983) Interest expense, net 47,526 43,519 Less: Depreciation, depletion, accretion and amortization (97,697) (99,243) ------- ------- EBIT 52,069 85,460 Plus: Depreciation, depletion, accretion and amortization 97,697 99,243 ------ ------ EBITDA $149,766 $184,703 Less: Interest expense, net (47,526) (43,519) Current taxes 13,303 (26,526) ------ ------- Cash earnings $115,543 $114,658 ======== ======== Reconciliation of Net Earnings (Loss) to EBITDA and Cash Earnings Net earnings (loss) $13,246 $54,232 Benefit from income taxes (6,048) (5,983) Interest expense, net 47,526 43,519 Earnings on discontinued operations, net of tax (2,655) (6,308) ------ ------ EBIT 52,069 85,460 Plus: Depreciation, depletion, accretion and amortization 97,697 99,243 ------ ------ EBITDA $149,766 $184,703 Less: Interest expense, net (47,526) (43,519) Current taxes 13,303 (26,526) ------ ------- Cash earnings $115,543 $114,658 ======== ======== (Amounts in thousands) Nine Months Ended September 30 ------------ 2010 2009 ---- ---- Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Cash Earnings Net cash provided by operating activities $127,827 $354,822 Changes in operating assets and liabilities before initial effects of business acquisitions and dispositions 6,647 (51,845) Other net operating items (providing) using cash 105,207 38,844 Earnings on discontinued operations, net of tax (6,905) (12,433) Benefit from income taxes (61,491) (9,621) Interest expense, net 134,541 130,029 Less: Depreciation, depletion, accretion and amortization (289,174) (298,158) -------- -------- EBIT 16,652 151,638 Plus: Depreciation, depletion, accretion and amortization 289,174 298,158 ------- ------- EBITDA $305,826 $449,796 Less: Interest expense, net (134,541) (130,029) Current taxes 10,393 (16,999) ------ ------- Cash earnings $181,678 $302,768 ======== ======== Reconciliation of Net Earnings (Loss) to EBITDA and Cash Earnings Net earnings (loss) $(49,493) $43,663 Benefit from income taxes (61,491) (9,621) Interest expense, net 134,541 130,029 Earnings on discontinued operations, net of tax (6,905) (12,433) ------ ------- EBIT 16,652 151,638 Plus: Depreciation, depletion, accretion and amortization 289,174 298,158 ------- ------- EBITDA $305,826 $449,796 Less: Interest expense, net (134,541) (130,029) Current taxes 10,393 (16,999) ------ ------- Cash earnings $181,678 $302,768 ======== ======== Three Months Nine Months EBITDA Bridge Ended Ended (Amounts in millions) September 30 September 30 ------------ ------------ EBITDA EBITDA ------ ------ Continuing Operations -2009 Actual $185 $450 Increase /(Decrease) due to: Illinois DOT settlement and related expenses - (41) Aggregates: Volumes (7) (21) Selling prices (1) (10) Costs and other items (4) (43) Concrete (9) (27) Asphalt mix (8) (37) Gain on sale of property, plant & equipment and businesses (a) (7) 30 Depreciation, depletion, accretion and amortization n/a n/a All other (additional shares, tax rate, misc. items) 1 5 --- --- Continuing Operations -2010 Actual $150 $306 ==== ==== (a) Excludes the donation of land EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization. Cash earnings adjusts EBITDA for net interest and current taxes. These financial metrics are often used by the investment community as indicators of a company's ability to incur and service debt. They are not defined by Generally Accepted Accounting Principles (GAAP); thus, they should not be considered as an alternative to net cash provided by operating activities, operating earnings, or any other liquidity or performance measure defined by GAAP. These metrics are presented for the convenience of investment professionals that use such metrics in their analysis and to provide our shareholders with an understanding of the metrics we use to assess performance and to monitor our cash and liquidity positions. We internally use EBITDA, cash earnings and other such measures to assess the operating performance of our various business units and the consolidated company. We do not use these metrics as a measure to allocate resources internally.
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Vulcan Materials Company
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Web Site: http://www.vulcanmaterials.com/
