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Vulcan Materials Company (VMC - Free Report) reported fourth-quarter 2020 results, with earnings and revenues surpassing the Zacks Consensus Estimate. However, both the metrics declined on a year-over-year basis.
Inside the Headlines
Vulcan Materials — which is one of the largest producers of construction aggregates — reported adjusted earnings of $1.07 per share, beating the consensus mark of 99 cents by 8.1%. However, the company’s bottom line declined 0.9% on a year-over-year basis.
Total revenues of $1,175.1 million surpassed the consensus mark of $1,140 million. However, it declined 0.9% year over year.
Vulcan Materials Company Price, Consensus and EPS Surprise
During the fourth quarter, revenues in the segment dropped 0.4% year over year to $956.5 million. Aggregate shipments (volumes) were down 1% year over year.
During the quarter under review, freight-adjusted average sales price increased 3.3% from the prior-year quarter. Freight-adjusted revenues also increased 2.3% year over year to $737.3 million.
Gross profit of $276 million was up 0.5% year over year. Adjusted gross margin — as a percentage of segment sales — declined 60 basis points (bps) to 36.7% (excluding freight & delivery).
Asphalt, Concrete and Calcium
Revenues in the Asphalt segment were $194.7 million, down 5.7% year over year. The segment reported gross profit of $17 million, up 53.4% from the year-ago quarter’s levels driven by increase in material margin.
Total revenues in the Concrete segment were $85.4 million, down 10.4% year over year. However, gross profit totaled $8.6 million, up 28.5% year over year. During the fourth quarter, shipments fell 12% year over year. Average selling prices rose 2% year over year.
Total revenues in the Calcium segment were up 15.7% year over year to $2.5 million. The segment reported gross profit of $1.2 million, increasing 44.7% from the prior-year quarter’s levels.
Operating Highlights
During the quarter, Selling, Administrative and General or SAG expenses — as a percentage of total revenues — increased 30 bps year over year to 8.4%.
Adjusted EBIT increased 3.7% from the prior-year quarter to $210.3 million. Adjusted EBITDA also rose 4.3% year over year to $311.2 million. Notably, the improvement was backed by aggregates price growth along with effective cost management.
Financials
As of Dec 31, 2020, cash and cash equivalents were $1,197.1 million, up from $271.6 million at 2019-end. Long-term debt was $2,772.2 million, slightly down from the year-ago quarter’s levels.
In 2020, Vulcan Materials returned $180 million to shareholders through dividends, reflecting an increase of 10% from the prior year. So far this year, the company has repurchased $26 million in common stock.
2020 Highlights
Total revenues in 2020 came in at $4,856.8 million compared with $4,929.1 million in 2019.
Adjusted EBITDA in 2020 came in at $1323.5 million compared with $1,270 million in 2019.
In 2020, adjusted diluted earnings per share (EPS) came in at $4.68 compared with $4.70 in the previous year.
2021 Outlook
For 2021, the company anticipates adjusted EBITDA in the range of $1.340-$1.440 billion. SAG expenses are expected in the range of $365-$375 million. 2021 EPS are anticipated between $4.80 and $5.40.
Meanwhile, the company expects year-over-year growth in aggregates freight-adjusted price between 2% and 4%. Also, it expects aggregates shipments in the range of (2%) to 2% growth compared with 2020 levels. Depreciation, depletion, accretion and amortization expense is expected at $400 million. Nonetheless, the company remains optimistic about the pricing environment in 2021.
Martin Marietta Materials, Inc. (MLM - Free Report) reported fourth-quarter 2020 results, with earnings and revenues (products and services) beating the respective Zacks Consensus Estimate. Higher shipments, improved pricing strategy and prudent cost management helped the company report solid results.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Vulcan Materials (VMC) Q4 Earnings & Revenues Beat Estimates
Vulcan Materials Company (VMC - Free Report) reported fourth-quarter 2020 results, with earnings and revenues surpassing the Zacks Consensus Estimate. However, both the metrics declined on a year-over-year basis.
Inside the Headlines
Vulcan Materials — which is one of the largest producers of construction aggregates — reported adjusted earnings of $1.07 per share, beating the consensus mark of 99 cents by 8.1%. However, the company’s bottom line declined 0.9% on a year-over-year basis.
Total revenues of $1,175.1 million surpassed the consensus mark of $1,140 million. However, it declined 0.9% year over year.
Vulcan Materials Company Price, Consensus and EPS Surprise
Vulcan Materials Company price-consensus-eps-surprise-chart | Vulcan Materials Company Quote
Segments in Detail
Aggregates
During the fourth quarter, revenues in the segment dropped 0.4% year over year to $956.5 million. Aggregate shipments (volumes) were down 1% year over year.
During the quarter under review, freight-adjusted average sales price increased 3.3% from the prior-year quarter. Freight-adjusted revenues also increased 2.3% year over year to $737.3 million.
Gross profit of $276 million was up 0.5% year over year. Adjusted gross margin — as a percentage of segment sales — declined 60 basis points (bps) to 36.7% (excluding freight & delivery).
Asphalt, Concrete and Calcium
Revenues in the Asphalt segment were $194.7 million, down 5.7% year over year. The segment reported gross profit of $17 million, up 53.4% from the year-ago quarter’s levels driven by increase in material margin.
Total revenues in the Concrete segment were $85.4 million, down 10.4% year over year. However, gross profit totaled $8.6 million, up 28.5% year over year. During the fourth quarter, shipments fell 12% year over year. Average selling prices rose 2% year over year.
Total revenues in the Calcium segment were up 15.7% year over year to $2.5 million. The segment reported gross profit of $1.2 million, increasing 44.7% from the prior-year quarter’s levels.
Operating Highlights
During the quarter, Selling, Administrative and General or SAG expenses — as a percentage of total revenues — increased 30 bps year over year to 8.4%.
Adjusted EBIT increased 3.7% from the prior-year quarter to $210.3 million. Adjusted EBITDA also rose 4.3% year over year to $311.2 million. Notably, the improvement was backed by aggregates price growth along with effective cost management.
Financials
As of Dec 31, 2020, cash and cash equivalents were $1,197.1 million, up from $271.6 million at 2019-end. Long-term debt was $2,772.2 million, slightly down from the year-ago quarter’s levels.
In 2020, Vulcan Materials returned $180 million to shareholders through dividends, reflecting an increase of 10% from the prior year. So far this year, the company has repurchased $26 million in common stock.
2020 Highlights
Total revenues in 2020 came in at $4,856.8 million compared with $4,929.1 million in 2019.
Adjusted EBITDA in 2020 came in at $1323.5 million compared with $1,270 million in 2019.
In 2020, adjusted diluted earnings per share (EPS) came in at $4.68 compared with $4.70 in the previous year.
2021 Outlook
For 2021, the company anticipates adjusted EBITDA in the range of $1.340-$1.440 billion. SAG expenses are expected in the range of $365-$375 million. 2021 EPS are anticipated between $4.80 and $5.40.
Meanwhile, the company expects year-over-year growth in aggregates freight-adjusted price between 2% and 4%. Also, it expects aggregates shipments in the range of (2%) to 2% growth compared with 2020 levels. Depreciation, depletion, accretion and amortization expense is expected at $400 million. Nonetheless, the company remains optimistic about the pricing environment in 2021.
Zacks Rank & Peer Release
Vulcan Materials — which shares space with Summit Materials, Inc. (SUM - Free Report) and Eagle Materials Inc. (EXP - Free Report) in the Zacks Building Products - Concrete and Aggregates industry — currently carries a Zacks Rank #4 (Sell).
Martin Marietta Materials, Inc. (MLM - Free Report) reported fourth-quarter 2020 results, with earnings and revenues (products and services) beating the respective Zacks Consensus Estimate. Higher shipments, improved pricing strategy and prudent cost management helped the company report solid results.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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