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Investor PresentationMay 2013Our strategy is based on our strengthAggregatesEssential Material | Valuable Asset
2Investor Presentation, May 2013Important Disclosure NotesThis presentation contains forward-looking statements. Statement...
3Investor Presentation, May 2013Company SnapshotVulcan is the Leading Aggregates Producer in the U.S.95%2012 Net Sales: $2...
4Investor Presentation, May 2013Positioning the Business to Maximize Future Earnings GrowthStrategicallyPositionedLeadingR...
5Investor Presentation, May 2013Aggregates-Led Value Creation95% Build and Hold Substantial Reserves Used in virtually a...
6Investor Presentation, May 2013Source: Moody’s Analytics as of November 2012Share of Total U.S. Growth – 2010 to 2020Vulc...
7Investor Presentation, May 20132012 F(U)Amounts in Millions, except EPS 2012 2011 vs. 2011Net Sales 2,411$ 2,407$ 4$Gross...
8Investor Presentation, May 2013$4.01$4.212011 201217.7%20.4%2011 201211.8%13.9%2011 201214.6%17.1%2011 2012Most Recent Fu...
9Investor Presentation, May 2013Attractive ProfitabilityUnit Profitability That Was Maintained Throughout the Downturn, No...
10Investor Presentation, May 2013Track Record for Price GrowthVulcan Consistently Outperforms, Contributing to Higher Unit...
11Investor Presentation, May 2013SAG Expenses Have Been Reduced During the DownturnWell Positioned to Leverage ERP Investm...
12Investor Presentation, May 2013De-Risked Balance SheetHigher Cash Generated from Operations and Asset Sales2012 Cash Flo...
13Investor Presentation, May 2013De-Risked Balance SheetSignificant Financial and Operational Flexibility With Limited Nea...
14Investor Presentation, May 2013Aggregates DemandVulcan’s Key Markets Leveraged to Favorable Long Term Growth Prospects19...
15Investor Presentation, May 2013Aggregates DemandPrivately funded construction accounts for most of the cyclicalitySource...
16Investor Presentation, May 2013Private Construction – ResidentialGrowth Bodes Well for Continued Recovery in Our Markets...
17Investor Presentation, May 2013Private Construction – Residential…Evident by the Significant Growth in Housing Starts in...
18Investor Presentation, May 2013Private Construction – NonresidentialGrowth in Residential is Helping Drive Growth in Pri...
19Investor Presentation, May 2013Private Construction - NonresidentialAnother leading indicator, The ABI, has been above 5...
20Investor Presentation, May 2013Public Construction - HighwaysMAP-21 beginning to provide stability and predictability in...
21Investor Presentation, May 2013Public Construction – HighwaysVulcan states should get a disproportionate number of TIFIA...
22Investor Presentation, May 2013 Attractive unit profitability Cost reduction initiativesresetting mid-cycleEBITDA to n...
23Investor Presentation, May 2013Appendix - Reconciliation of Non-GAAP Financial MeasuresSource: Company filingsAmounts in...
24Investor Presentation, May 2013Appendix – Simplified Geology MapBelow Geological Fall Line, Little or No Hard Rock Aggre...
25Investor Presentation, May 2013Appendix - Comprehensive Distribution Network to Serve AttractiveMarkets With Limited Agg...
26Investor Presentation, May 2013Appendix - South Region Map
27Investor Presentation, May 2013Appendix - Central Region Map
28Investor Presentation, May 2013Appendix - East Region Map
29Investor Presentation, May 2013Appendix - West Region Map
1200 Urban Center DriveBirmingham, AL 35242-2545Telephone: (205) 298-3000Shareholder Services:(866) 886-9902 (toll free in...
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Investor Presentation

  1. 1. Investor PresentationMay 2013Our strategy is based on our strengthAggregatesEssential Material | Valuable Asset
  2. 2. 2Investor Presentation, May 2013Important Disclosure NotesThis presentation contains forward-looking statements. Statements that are not historical fact, including statements about Vulcans beliefs andexpectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, businessplans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipmentvolumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planneddivestitures and asset sales. These forward-looking statements are sometimes identified by the use of terms and phrases such as "believe,""should," "would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," "may" or similar expressions elsewhere in this document.These statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitivefactors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may varysignificantly from those expressed in or implied by the forward-looking statements. The following risks related to Vulcans business, among others,could cause actual results to differ materially from those described in the forward-looking statements: risks that Vulcans intentions, plans and resultswith respect to cost reductions, profit enhancements and asset sales, as well as streamlining and other strategic actions adopted by Vulcan, will notbe able to be realized to the desired degree or within the desired time period and that the results thereof will differ from those anticipated or desired;uncertainties as to the timing and valuations that may be realized or attainable with respect to planned asset sales; those associated with generaleconomic and business conditions; the timing and amount of federal, state and local funding for infrastructure; the effects of the sequestration ondemand for our products in markets that may be subject to decreases in federal spending; changes in Vulcan’s effective tax rate; the increasingreliance on technology infrastructure for Vulcan’s ticketing, procurement, financial statements and other processes could adversely affect operationsin the event such infrastructure does not work as intended or experiences technical difficulties; the impact of the state of the global economy onVulcan’s businesses and financial condition and access to capital markets; changes in the level of spending for private residential and privatenonresidential 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 of Vulcans 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 Vulcan; changes in interest rates; the impact ofVulcans below investment grade debt rating on Vulcans cost of capital; volatility in pension plan asset values which may require cash contributionsto the pension plans; the impact of environmental clean-up costs and other liabilities relating to previously divested businesses; Vulcans ability tosecure and permit aggregates reserves in strategically located areas; Vulcans ability to manage and successfully integrate acquisitions; the potentialof goodwill or long-lived asset impairment; the potential impact of future legislation or regulations relating to climate change or greenhouse gasemissions or the definition of minerals; and other assumptions, risks and uncertainties detailed from time to time in the reports filed by Vulcan with theSEC. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement. Vulcan disclaims and does notundertake any obligation to update or revise any forward-looking statement in this document except as required by law. .
  3. 3. 3Investor Presentation, May 2013Company SnapshotVulcan is the Leading Aggregates Producer in the U.S.95%2012 Net Sales: $2.4 Billion Aggregates Facilities: 341Headquarters: Birmingham, AL Ticker: VMCCompany 2012 10-K ReportVulcan-Served StatesOur leading position in aggregates isbased on…1. Favorable geographic footprint thatprovides attractive long-term growthprospects2. Largest proven and probably reservebase3. Operational expertise and pricingdiscipline which provides attractiveunit profitability
  4. 4. 4Investor Presentation, May 2013Positioning the Business to Maximize Future Earnings GrowthStrategicallyPositionedLeadingReservePositionUnitProfitabilityContinues toGrow75%Share of U.S.PopulationGrowth27%Higher thanpeak-year involumes15.0Billion Tons ofAggregatesReservesSource: Company 2012 10-K Report. As of December 31, 2012 . Unit Profitability = Cash Gross Profit / Ton. See Non-GAAP reconciliation at end of presentation.
  5. 5. 5Investor Presentation, May 2013Aggregates-Led Value Creation95% Build and Hold Substantial Reserves Used in virtually all types of public and private construction projects Strategically located in high-growth markets that will require largeamounts of aggregates to meet construction demand Aggregates operations require virtually no other raw material otherthan aggregates reserves Coast-to-coast Footprint Diversified regional exposure Complementary asphalt, concrete and cement businesses in selectmarkets More opportunities to manage portfolio of locations to further enhancelong-term earnings growth Profitable Growth Tightly managed operational and overhead costs Benefits of scale as the largest producer Effective Land Management Can lead to attractive real estate transactions95PercentSales Tied toAggregates
  6. 6. 6Investor Presentation, May 2013Source: Moody’s Analytics as of November 2012Share of Total U.S. Growth – 2010 to 2020Vulcan’s Aggregates Assets are Strategically Positioned in Attractive Markets75% in VMC-served states70% in VMC-served states63% in VMC-served states
  7. 7. 7Investor Presentation, May 20132012 F(U)Amounts in Millions, except EPS 2012 2011 vs. 2011Net Sales 2,411$ 2,407$ 4$Gross Profit 334$ 284$ 50$% Margin 13.9% 11.8% 2.1 ptsSAG 259$ 290$ 31$EBITDA 423$ 425$ (2)$Adjusted EBITDA1411$ 352$ 59$% Margin 17.1% 14.6% 2.5 ptsEPS from Cont. Ops, diluted (0.42)$ (0.58)$ 0.16$Adjusted EPS1from Cont. Ops, diluted (0.47)$ (0.93)$ 0.46$Full YearMost Recent Full Year Financial Results Demonstrate Operating LeverageMargin Expansion and Earnings Improvement on Flat RevenuesNote: Please see Non-GAAP reconciliations at the end of this presentation. Margin calculated using Net Sales.1 Adjusted to exclude gain on sale of real estate and businesses, recovery from a legal settlement, exchange offer and restructuring costs.
  8. 8. 8Investor Presentation, May 2013$4.01$4.212011 201217.7%20.4%2011 201211.8%13.9%2011 201214.6%17.1%2011 2012Most Recent Full Year Financial Results Demonstrate Operating LeverageIncrease in Profitability Driven by Higher Pricing and Effective Cost ControlNote: Please see Non-GAAP reconciliations at the end of this presentation. Aggregates Gross Profit Margin calculated using Segment Total Revenues.Adjusted EBITDA MarginAggregates Cash Gross Profit per TonGross Profit MarginAggregates Gross Profit Margin
  9. 9. 9Investor Presentation, May 2013Attractive ProfitabilityUnit Profitability That Was Maintained Throughout the Downturn, Now Beginning to Grow2012 profitability is higherthan prior year and 27%higher than peak-year involumes (2005)Trailing Twelve Months Cash Gross Profit Per Ton of AggregatesNote: Please see Non-GAAP reconciliations at the end of this presentation.
  10. 10. 10Investor Presentation, May 2013Track Record for Price GrowthVulcan Consistently Outperforms, Contributing to Higher Unit ProfitabilityAggregates Price GrowthIndex, 1992 = 100Note: Historical performance is not a guarantee or assurance of future performance nor that previous results will be attained or surpassed.*Industry = Producer Price Index for Aggregates reported by the U.S. Bureau of Labor Statistics. For comparison purposes, Vulcan price not freight adjusted.6.4%5.3%CAGR ’92-’02 ’02-’12Industry*Vulcan 3.6%2.8%
  11. 11. 11Investor Presentation, May 2013SAG Expenses Have Been Reduced During the DownturnWell Positioned to Leverage ERP Investment and Shared Services PlatformsTotal SAG down $115million from 2007(31% decrease)Millions of $ Source: Company filings Note: 2007 SAG includes Florida Rock on a pro forma basis ($84.5M).
  12. 12. 12Investor Presentation, May 2013De-Risked Balance SheetHigher Cash Generated from Operations and Asset Sales2012 Cash Flow Bridge Sources of CashUses of CashOperating activities, less debtservice costs, generated$121 million of cash in 2012Progress on Planned AssetSales coincidently offset cashused for debt maturities andexchange offer defense costsVPP = Volumetric Production Payment. Exchange Offer = Costs incurred as a result of an unsolicited exchange offer initiated byMartin Marietta Materials on December 12, 2011 and subsequently withdrawn in 2012.
  13. 13. 13Investor Presentation, May 2013De-Risked Balance SheetSignificant Financial and Operational Flexibility With Limited Near-Term Maturities(1) Line of credit is an Asset Based Lending facility: $500 million 5 year facility expiring March 2018. Total Capital = SHE + LTD + Current Maturities of LTD + Short-term Borrowings. Favorable debt maturity profile with substantial liquidity:— Minimal maturities of $290 million over the next three years― $188 million cash on hand with no borrowing on $500 million line of credit (1) Debt maturities to be funded from available cash and free cash flows Limited financial covenantsDebt Maturity Profile (Millions $)Debt SummaryAmounts in Millions, except ratios 2013 2012 2011Total Debt 2,666$ 2,814$ 2,733$Cash and Cash Equivalents 188$ 191$ 63$Net Debt 2,478$ 2,623$ 2,670$Net Debt / TTM Adjusted EBITD 6.4 6.7 7.5Net Debt / Total Capital 38.8% 40.0% 40.3%As of March 31
  14. 14. 14Investor Presentation, May 2013Aggregates DemandVulcan’s Key Markets Leveraged to Favorable Long Term Growth Prospects1972 = 100. Source: Company estimates of aggregates demand using data from Woods & Poole CEDDS.Aggregate demandsignificantly belowpopulation trend line.Growth Trends for Vulcan-Served Markets
  15. 15. 15Investor Presentation, May 2013Aggregates DemandPrivately funded construction accounts for most of the cyclicalitySource: Company estimates of aggregates demand.
  16. 16. 16Investor Presentation, May 2013Private Construction – ResidentialGrowth Bodes Well for Continued Recovery in Our Markets…• TTM U.S. housing starts up 27% versus the prior year• Vulcan-served states now account for more than 60% of all starts• TX, FL and CA starts more than next 10 states combinedSource: McGraw-Hill and Company Estimates. Trailing Twelve Months. Includes both Single-family and Multi-family
  17. 17. 17Investor Presentation, May 2013Private Construction – Residential…Evident by the Significant Growth in Housing Starts in These Key Vulcan-Served StatesSource: McGraw-Hill and Company Estimates. Trailing Twelve Months. Includes both Single-family and Multi-family
  18. 18. 18Investor Presentation, May 2013Private Construction – NonresidentialGrowth in Residential is Helping Drive Growth in Private Nonresidential BuildingsSource: McGraw-Hill and Company Estimates. Trailing Twelve Months.
  19. 19. 19Investor Presentation, May 2013Private Construction - NonresidentialAnother leading indicator, The ABI, has been above 50 for 8 consecutive monthsNote: The Architectural Billings Index (ABI) is a diffusion index derived from the monthly Work-on-the-Boards Survey conducted by the AIA Economics & Market ResearchGroup. A value greater than 50 indicates an increase in activity.
  20. 20. 20Investor Presentation, May 2013Public Construction - HighwaysMAP-21 beginning to provide stability and predictability in highwaysSource: McGraw-Hill and Company EstimatesFirst increasesince January 2011ARRA Signed into Law - Feb’09SAFETEA-LU Expires September ’09. No Federal Hwy Bill MAP21 – July ’12
  21. 21. 21Investor Presentation, May 2013Public Construction – HighwaysVulcan states should get a disproportionate number of TIFIA-funded projectsPotential TIFIA Projects in Vulcan-Served CountiesEach dollar put into TIFIA can provideapproximately $10 in loans and support up to $30in infrastructure investment.MAP-21 Funding Authorization:$1.75 billion over two years (FY’13 & FY’14)Letters of Interest (LOIs):More than $40 billion have been submitted sinceMAP-21 became law, of which, approximately 2/3are located in Vulcan-served counties.Enacted in 1998 to provide Federal credit assistance for eligibletransportation projects and stimulate private capital investment.
  22. 22. 22Investor Presentation, May 2013 Attractive unit profitability Cost reduction initiativesresetting mid-cycleEBITDA to new, higherlevel Favorable trends inprivate constructionactivity New multi-year FederalHighway BillVulcan’s Value PropositionWell Positioned to Capitalize on Market RecoverySuperior AggregatesOperationsStrong OperatingLeverageDe-Risked BalanceSheet Largest reported reservebase Favorable long termgrowth prospects Benefits of scale Operational expertise andpricing growth Attractive real estateopportunities Substantial liquidity Moderate debt maturityprofile Commitment tostrengthening balancesheet Commitment to restore ameaningful dividend
  23. 23. 23Investor Presentation, May 2013Appendix - Reconciliation of Non-GAAP Financial MeasuresSource: Company filingsAmounts in millions of dollars, except per share dataEBITDAEBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization.Cash gross profitCash gross profit adds back noncash charges for depreciation, depletion, accretion and amortization to gross profit.Q42012Q42011YTD12/31/12YTD12/31/11YTD12/31/10EBITDA and Adjusted EBITDANet earnings (loss) 3.5 (27.8) (52.6) (70.8) (96.5)Provision (benefit) for income taxes 0.6 (30.6) (66.5) (78.4) (89.7)Interest expense, net 52.9 53.4 211.9 217.2 180.7Discontinued operations, net of tax 1.0 1.9 (1.3) (4.5) (6.0)EBIT 58.0 (3.1) 91.5 63.5 (11.5)Plus: Depr., depl., accretion and amort. 78.6 88.0 332.0 361.7 382.1EBITDA 136.6 84.9 423.5 425.2 370.6Legal settlement - - - (46.4) 40.0Restructuring charges 0.5 10.0 9.5 12.9 0.0Exchange offer costs 0.0 2.2 43.4 2.2 0.0Gain on sale of real estate and businesses (46.8) (2.5) (65.1) (42.1) (39.5)Adjusted EBITDA 90.4 94.6 411.3 351.8 371.1Q42012Q42011YTD12/31/12YTD12/31/11EPS and Adjusted EPSAs reported 0.03 (0.20) (0.42) (0.58)Legal settlement - - - (0.22)Restructuring charges 0.00 0.05 0.05 0.06Exchange offer costs 0.00 0.01 0.20 0.01Gain on sale of real estate and businesses (0.22) (0.01) (0.30) (0.20)Adjusted EPS (0.19) (0.15) (0.47) (0.92)Q42012Q32012Q22012Q12012Q42011Q32011Q22011Q12011Q42010Q32010Q22010Q12010Q42009Q32009Q22009Q12009Q42008Q32008Aggregates segment gross profit 352.1 350.0 338.5 329.5 306.2 284.6 296.4 315.5 320.1 332.2 340.2 345.0 393.3 451.2 503.2 594.3 657.6 722.3Agg. Depr., depl., accretion and amort. 240.7 247.7 255.1 261.8 267.0 272.5 279.3 284.8 288.6 293.1 295.9 298.6 312.2 304.9 304.4 302.7 310.8 298.8Aggregates segment cash gross profit 592.8 597.6 593.6 591.3 573.2 557.1 575.7 600.3 608.8 625.3 636.1 643.6 705.5 756.1 807.6 897.0 968.4 1,021.1Aggregate tons 141.0 142.1 145.3 145.8 143.0 142.2 143.0 146.8 147.6 147.4 148.6 146.2 150.9 160.7 172.6 190.8 204.3 217.4Aggregates segment cash gross profit per ton 4.21 4.20 4.08 4.06 4.01 3.92 4.03 4.09 4.12 4.24 4.28 4.40 4.68 4.70 4.68 4.70 4.74 4.70Q22008Q12008Q42007Q32007Q22007Q12007Q42006Q32006Q22006Q12006Q42005Q32005Q22005Q12005Q42004Q32004Q22004Q12004Aggregates segment gross profit 775.2 808.2 828.7 846.3 849.7 826.9 819.0 772.8 732.4 690.4 650.0 591.9 565.5 524.1 517.0 519.1 513.7 510.8Agg. Depr., depl., accretion and amort. 283.2 266.4 246.9 228.3 220.8 213.1 210.3 205.1 203.0 202.7 206.4 197.7 194.4 191.8 191.1 191.1 191.8 192.6Aggregates segment cash gross profit 1,058.4 1,074.6 1,075.6 1,074.6 1,070.4 1,040.0 1,029.3 977.8 935.3 893.1 856.4 789.7 759.9 715.9 708.1 710.2 705.5 703.4Aggregates tons 224.4 228.5 231.0 234.5 239.8 246.7 255.4 258.8 263.6 265.3 259.5 255.0 252.6 245.8 242.3 240.8 239.5 236.2Aggregates segment cash gross profit per ton 4.72 4.70 4.66 4.58 4.46 4.22 4.03 3.78 3.55 3.37 3.30 3.10 3.01 2.91 2.92 2.95 2.95 2.98Generally Accepted Accounting Principles (GAAP) does not define "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)" and "cash gross profit." Thus, they should not beconsidered as an alternative to any earnings measure defined by GAAP. We present these metrics for the convenience of investment professionals who use such metrics in their analysis, and forshareholders who need to understand the metrics we use to assess performance and to monitor our cash and liquidity positions. The investment community often uses these metrics as indicators of acompanys ability to incur and service debt. We use cash gross profit, EBITDA and other such measures to assess the operating performance of our various business units and the consolidatedcompany. Additionally, we adjust EBITDA for certain items to provide a more consistent comparison of performance from period to period and provide the earnings per share (EPS) impact of thesefor the convenience of the investment community. We do not use these metrics as a measure to allocate resources. Reconciliations of these metrics to their nearest GAAP measures are presentedbelow:Trailing 12 MonthsAggregates Segment Cash Gross Profit
  24. 24. 24Investor Presentation, May 2013Appendix – Simplified Geology MapBelow Geological Fall Line, Little or No Hard Rock Aggregates Reserves Suitable for MiningSimplified Geology Map
  25. 25. 25Investor Presentation, May 2013Appendix - Comprehensive Distribution Network to Serve AttractiveMarkets With Limited Aggregates Reserves4-5 truckloads per rail car$0.04-0.12 per ton mile65 truckloads per barge$0.02-0.03 per ton mile2,500 truckloads per shipLess than $0.01 per ton mile Note: Per ton mile costs exclude loading and unloading.Geological Fall Line20-25 tons per truck$0.15-0.35 per ton mile
  26. 26. 26Investor Presentation, May 2013Appendix - South Region Map
  27. 27. 27Investor Presentation, May 2013Appendix - Central Region Map
  28. 28. 28Investor Presentation, May 2013Appendix - East Region Map
  29. 29. 29Investor Presentation, May 2013Appendix - West Region Map
  30. 30. 1200 Urban Center DriveBirmingham, AL 35242-2545Telephone: (205) 298-3000Shareholder Services:(866) 886-9902 (toll free inside the U.S. and Canada)(201) 680-6578 (outside the U.S. and Canada, may call collect)(800) 231-5469 (TDD, hearing impaired)Internet: bnymellon.com/shareowner/equityaccessInvestor Relations:Mark WarrenTelephone: (205) 298-3191Email: ir@vmcmail.comIndependent Auditors:Deloitte & Touche, LLPBirmingham, AlabamaRegistrar and Transfer Listing:Computershare Shareowner Services LLC

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