Vulcan(US:VMC)2022-11-03 15:08Financial Performance - Total revenues for the third quarter of 2022 reached $2,088.3 million, a 37.6% increase from $1,516.5 million in the same period of 2021[114]. - Total revenues for Q3 2022 were $2,088.3 million, a 38% increase from Q3 2021[152]. - Total revenues for the first nine months of 2022 were $5,583.3 million, a 41% increase from the same period in 2021[169]. - Adjusted diluted EPS for Q3 2022 was $1.78, compared to $1.54 in Q3 2021[153]. - Adjusted earnings from continuing operations (Adjusted Diluted EPS) increased to $4.03 per diluted share for the first nine months of 2022, compared to $3.80 per diluted share in the first nine months of 2021[170]. - Net earnings attributable to Vulcan for the first nine months of 2022 were $456.2 million, or $3.42 per diluted share, down from $532.9 million, or $3.99 per diluted share in the same period of 2021[170]. Segment Performance - Aggregates segment revenues were $1,490.5 million, up 27.1% from $1,172.4 million year-over-year[114]. - Concrete segment revenues increased significantly to $450.5 million, compared to $219.2 million in the prior year, reflecting a 105.5% growth[114]. - Aggregates segment sales for the first nine months of 2022 were $4,013.5 million, a 26% increase, with shipments rising 10% to 17.1 million tons compared to the prior year[172]. - The gross profit for the Aggregates segment was $1,081.3 million, or $5.94 per ton, compared to $969.8 million, or $5.87 per ton in the first nine months of 2021[173]. - Asphalt segment gross profit increased to $40.2 million, up $22.6 million from the first nine months of 2021, with average unit selling prices rising 20%[175]. - Concrete segment gross profit was $84.7 million for the first nine months of 2022, an increase of $52.3 million from the prior year, with ready-mixed concrete shipments increasing 181%[176]. Cost and Expenses - ARO operating costs for the three months ended September 30, 2022, totaled $6.0 million, a decrease of 4.8% from $6.3 million in the same period of 2021[98]. - Selling, administrative, and general expenses were $135.3 million, or 6.5% of total revenues[161]. - Net interest expense increased to $46.1 million in Q3 2022 from $36.8 million in Q3 2021[165]. - Net interest expense increased to $120.8 million in the first nine months of 2022, compared to $111.6 million in the same period of 2021, reflecting a higher debt level from the acquisition of U.S. Concrete[181]. Asset and Equity - The total equity at the end of Q3 2022 was $6,878.9 million, an increase from $6,449.1 million at the end of Q3 2021[112]. - Total identifiable assets as of September 30, 2022, amounted to $14,615.8 million, up from $13,688.0 million in the previous year[114]. - The balance of Asset Retirement Obligations (AROs) increased to $340.0 million as of September 30, 2022, up from $298.3 million a year earlier, primarily due to acquisitions completed in 2022[100]. Acquisitions and Investments - The company completed business acquisitions totaling $593.4 million in 2022, with cash payments of $528.0 million and a payable to the seller of $65.4 million[122]. - The company invested $450.4 million in existing operations during the first nine months of 2022, including $157.1 million in internal growth projects[206]. - The company recognized $685.5 million of amortizable intangible assets and $571.2 million of goodwill from acquisitions in 2021, with goodwill expected to generate deferred tax liabilities[129]. Market and Economic Conditions - The pricing environment remains positive, with aggregates segment freight-adjusted sales price increasing by 12.5%, or $1.86 per ton, to $16.79[144]. - The company expects continued growth driven by public construction activity and a favorable pricing environment into 2023[146]. - The company is dependent on the construction industry, which is subject to economic cycles and federal, state, and local funding for infrastructure[229]. - The company is affected by the highly competitive nature of the construction industry and the impact of regulatory actions related to climate change and trade[229]. Risks and Liabilities - The company faces economic risks related to pension and postretirement benefit plans, influenced by changes in discount rates and expected returns on plan assets[239]. - The company is exposed to market risks from transactions in the normal course of business and may use derivative financial instruments to manage these risks[236]. - The company is subject to risks from labor relations, shortages, and constraints, which can impact operational efficiency[229]. - The company’s financial position may be affected by changes in interest rates and the volatility of pension plan asset values[229].