Vulcan(US:VMC)2022-05-05 13:54Financial Performance - Total revenues for Q1 2022 increased by $472.4 million, or 44%, to $1,540.7 million compared to Q1 2021[123] - Gross profit increased by $39.5 million, or 17.2%, to $268.8 million, while gross profit margin decreased to 17.4% from 21.5%[123] - Net earnings attributable to Vulcan decreased by $68.8 million, or 43%, to $91.8 million, with diluted earnings per share at $0.69 compared to $1.20 in Q1 2021[130] - Adjusted EBITDA for Q1 2022 was $293.9 million, an increase of $49.6 million, or 20%, from the previous year[123] - Adjusted EBITDA for Q1 2022 was $293.9 million, compared to $244.3 million in Q1 2021, representing a 20.3% increase[154] - Adjusted diluted EPS attributable to Vulcan from continuing operations was $0.73 in Q1 2022, compared to $0.69 in Q1 2021, indicating a 5.8% increase[156] - Earnings attributable to Vulcan from continuing operations were $0.70 per diluted share, down from $1.21 per diluted share in the prior year[143] Sales and Shipments - Aggregates segment sales rose by $226.3 million, or 25%, to $1,121.2 million, with shipments increasing by 14% to 53.0 million tons[123] - Total aggregates shipments increased by 14% to 53.0 million tons compared to 46.4 million tons in the prior year's first quarter[132] - Freight-adjusted sales price for aggregates increased by 5.8%, or $0.85 per ton, to $15.52[123] - Freight-adjusted pricing rose by 5.8% year-over-year, equating to an increase of $0.85 per ton, with mix-adjusted pricing up by 6.9%[133] Costs and Expenses - Freight-adjusted unit cash cost of sales increased by 11%, or $0.88 per ton, compared to the prior year's first quarter[134] - SAG expenses were $119.0 million, representing 7.7% of total revenues, influenced by overhead expenses from U.S. Concrete operations[139] - Net interest expense increased to $35.9 million in the first quarter of 2022, compared to $33.1 million in the same period of 2021[142] - The aggregates segment gross profit margin decreased to 21.7% from 25.0% in the prior year[150] - Same-store gross profit margin excluding freight and delivery was 31.3%, compared to 32.1% in the prior year[151] Capital Expenditures and Investments - Capital expenditures in Q1 2022 were $122.7 million, with expectations to spend $600 million to $650 million for the full year[122] - The company invested $160.4 million in existing operations in Q1 2022, up from $100.7 million in the same period of 2021, with $34.4 million allocated to internal growth projects[165] Debt and Financial Ratios - The ratio of total debt to trailing-twelve months Adjusted EBITDA was 2.7 times, remaining within the long-term target leverage range of 2.0 to 2.5 times[123] - Net debt as of March 31, 2022, was $3,845.4 million, with a net debt to trailing-twelve months Adjusted EBITDA ratio of 2.6x, up from 1.4x in 2021[155] - Total debt as of March 31, 2022, was $3,978.4 million, up from $2,788.3 million in 2021[155] - The company had a trailing-twelve months Adjusted EBITDA to total debt ratio of 2.7 times as of March 31, 2022[170] - The weighted-average effective interest rate for term debt was 3.72% as of March 31, 2022[169] Shareholder Returns - The company returned $4.1 million to shareholders through increased dividends, raising the dividend per share from $0.37 to $0.40[167] Economic and Market Risks - The company actively manages its capital structure to balance the cost of capital and risk of financial stress, including the use of interest rate swaps[197] - The company is exposed to economic risks related to pension and other postretirement benefit plans, influenced by changes in discount rates and expected returns on plan assets[199] - The company does not enter into derivative financial instruments for trading or speculative purposes, focusing instead on managing market risks[196] Acquisitions and Market Position - The company completed acquisitions of aggregates businesses in Texas during the quarter, enhancing its market position[122] Cash Flow and Financing Activities - Net cash provided by operating activities was $175.6 million in Q1 2022, a $6.3 million increase compared to Q1 2021[163] - Net cash used for investing activities was $302.5 million in Q1 2022, a $388.3 million increase compared to cash provided of $85.8 million in Q1 2021[165] - Net cash provided by financing activities was $18.4 million in Q1 2022, compared to cash used of $562.2 million in Q1 2021, which included a $100.0 million net draw on the line of credit[166] - As of March 31, 2022, the available borrowing capacity under the line of credit was $830.4 million, with $100.0 million borrowed[173] Other Financial Information - The company had no off-balance sheet arrangements as of March 31, 2022[180] - As of March 31, 2022, the estimated fair value of the company's long-term debt, including current maturities, was $4,094.2 million compared to a face value of $3,947.2 million[198] - A decline in interest rates of one percentage point would increase the fair value of the company's debt by approximately $0.3 million[198]