Strong Execution Drives Margin Expansion Reaffirms Full Year Outlook for Double-Digit Earnings Growth in 2024 BIRMINGHAM, Ala., May 2, 2024 /PRNewswire/ -- Vulcan Materials Company (NYSE:VMC), the nation's largest producer of construction aggregates, today announced results for the quarter ended March 31, 2024.  Financial Highlights Include:  First Quarter   Trailing-Twelve Months  Amounts in millions, except per unit data 2024 2023 2024 2023 Total revenues $       1,546 $       1,649 $       7,679 $       7,424 Gross profit $          305 $          302 $       1,951 $       1,591 Selling, Administrative and General (SAG) $          130 $          117 $          555 $          514 As % of Total revenues 8.4 % 7.1 % 7.2 % 6.9 % Net earnings attributable to Vulcan $          103 $          121 $          915 $          604 Adjusted EBITDA $          323 $          338 $       1,997 $       1,669 Adjusted EBITDA Margin 20.9 % 20.5 % 26.0 % 22.5 % Earnings attributable to Vulcan from      continuing operations per diluted share $         0.78 $         0.92 $         6.92 $         4.67 Adjusted earnings attributable to Vulcan from      continuing operations per diluted share $         0.80 $         0.95 $         6.85 $         5.34 Aggregates segment Shipments (tons) 48.1 51.8 230.9 235.3 Freight-adjusted sales price per ton $       20.59 $       18.69 $       19.42 $       17.11 Gross profit per ton $         6.30 $         5.86 $         7.52 $         6.25 Cash gross profit per ton $         8.86 $         8.03 $         9.66 $         8.17 Tom Hill, Vulcan Materials' Chairman and Chief Executive Officer, said, "Our teams' solid execution helped us overcome challenging weather conditions throughout much of the first quarter.  Margins expanded despite lower aggregates shipments, demonstrating the durability of our aggregates business and its attractive compounding growth characteristics.  Aggregates cash gross profit per ton increased 10 percent in the first quarter, with improvements widespread across our footprint.  A consistent focus on our strategic disciplines coupled with continued pricing momentum reinforces our confidence in our full year outlook and our ability to deliver another year of double-digit earnings growth and strong cash generation."   First Quarter Segment Results AggregatesSegment gross profit was $303 million ($6.30 per ton).  Cash gross profit per ton improved 10 percent to $8.86 per ton, despite lower shipments due to unfavorable weather conditions throughout most of the quarter.  Improvements in unit profitability were widespread across the Company's footprint and resulted from continued pricing momentum and solid operational execution. Price increases effective at the beginning of the year resulted in another quarter of attractive growth.  Freight-adjusted selling prices increased 10 percent versus the prior year, with all markets realizing year-over-year improvement.  Freight-adjusted unit cash cost of sales increased 10 percent, primarily driven by a 7 percent decline in aggregates shipments due to unfavorable weather.  On a trailing-twelve months basis, unit cash cost increased 9 percent, marking the fourth consecutive quarter of unit cost deceleration. Asphalt and ConcreteAsphalt segment gross profit was $5 million, and cash gross profit was $14 million, a 39 percent improvement over the prior year.  Shipments increased 3 percent, and price improved 6 percent.  Strong shipments in Arizona and California, the Company's largest asphalt markets, were partially offset by lower shipments in Texas due to weather impacts.  Concrete segment gross profit was a loss of $3 million.  Cash gross profit was $9 million, and unit cash gross profit improved 10 percent despite lower volumes.  The prior year included results from the previously divested concrete assets in Texas.   Selling, Administrative and General (SAG)SAG expense of $130 million was in line with the Company's expectations for the first quarter.  On a trailing-twelve months basis, SAG expense was $555 million, or 7.2 percent of total revenues. Financial Position, Liquidity and Capital AllocationCapital expenditures were $103 million in the first quarter.  For the full year, the Company expects to spend $625 to $675 million for maintenance and growth projects.  During the quarter, the Company returned $81 million to shareholders through $19 million of common stock repurchases and $62 million of dividends.  The Company also used $550 million of cash on hand to redeem its 2026 notes, resulting in a ratio of total debt to Adjusted EBITDA of 1.7 times, or 1.5 times on a net basis reflecting $300 million of cash on hand.  A strong liquidity and balance sheet profile positions the Company well for continued growth.  The Company's weighted-average debt maturity was 11 years, and the effective weighted-average interest rate was 4.8 percent.  On a trailing-twelve months basis, return on average invested capital was 16.3 percent, a 260 basis points improvement over the prior year. OutlookRegarding the Company's outlook, Mr. Hill said, "Our operating performance in the first quarter was solid and in line with our expectations.  We remain on track to deliver $2.15 to $2.30 billion of Adjusted EBITDA, marking the fourth consecutive year of double-digit growth.  The pricing environment remains positive, and our focus remains on compounding unit margins through all parts of the cycle, creating value for our shareholders through improving returns on capital." All aspects of the Company's outlook in February remain unchanged. Conference CallVulcan will host a conference call at 10:00 a.m. CT on May 2, 2024.  A webcast will be available via the Company's website at www.vulcanmaterials.com.  Investors and other interested parties may access the teleconference live by calling 800-267-6316, or 203-518-9843 if outside the U.S.  The conference ID is 1104565.  The conference call will be recorded and available for replay at the Company's website approximately two hours after the call. About Vulcan Materials CompanyVulcan Materials Company, a member of the S&P 500 Index with headquarters in Birmingham, Alabama, is the nation's largest supplier of construction aggregates – primarily crushed stone, sand and gravel – and a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete.  For additional information about Vulcan, go to www.vulcanmaterials.com. Non-GAAP Financial MeasuresBecause GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures, other than the reconciliation of Projected Adjusted EBITDA as included in Appendix 2 hereto. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results. FORWARD-LOOKING STATEMENT DISCLAIMERThis document contains forward-looking statements.  Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements.  Generally, these statements relate to future financial performance, results of operations, business plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned divestitures 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, competitive factors, 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 vary significantly from those expressed in or implied by the forward-looking statements.  The following risks related to Vulcan's business, among others, could cause actual results to differ materially from those described in the forward-looking statements: general economic and business conditions; domestic and global political, economic or diplomatic developments; a pandemic, epidemic or other public health emergency; Vulcan's dependence on the construction industry, which is subject to economic cycles; the timing and amount of federal, state and local funding for infrastructure; changes in the level of spending for private residential and private nonresidential construction; changes in Vulcan's effective tax rate; the increasing reliance on information technology infrastructure, including the risks that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; the impact of the state of the global economy on Vulcan's businesses and financial condition and access to capital markets; international business operations and relationships, including recent actions taken by the Mexican government with respect to Vulcan's property and operations in that country; the highly competitive nature of the construction industry; the impact of future regulatory or legislative actions, including those relating to climate change, biodiversity, land use, wetlands, greenhouse gas emissions, the definition of minerals, tax policy and domestic and international trade; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena, including the impact of climate change and availability of water; availability and cost of trucks, railcars, barges and ships as well as their licensed operators for transport of Vulcan's materials; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; labor relations, shortages and constraints; the amount of long-term debt and interest expense incurred by Vulcan; changes in interest rates; volatility in pension plan asset values and liabilities, which may require cash contributions to the pension plans; the impact of environmental cleanup costs and other liabilities relating to existing and/or divested businesses; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully integrate acquisitions; the effect of changes in tax laws, guidance and interpretations; significant downturn in the construction industry may result in the impairment of goodwill or long-lived assets; changes in technologies, which could disrupt the way Vulcan does business and how Vulcan's products are distributed; the risks of open pit and underground mining; expectations relating to environmental, social and governance considerations; claims that our products do not meet regulatory requirements or contractual specifications; and other assumptions, risks and uncertainties detailed from time to time in the reports filed by Vulcan with the SEC.  All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.  Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document except as required by law. Investor Contact:  Mark Warren (205) 298-3220Media Contact:  Jack Bonnikson (205) 298-3220 Table A Vulcan Materials Company and Subsidiary Companies (in millions, except per share data) Three Months Ended Consolidated Statements of Earnings March 31 (Condensed and unaudited) 2024 2023 Total revenues $1,545.7 $1,649.0 Cost of revenues (1,240.8) (1,347.0) Gross profit 304.9 302.0 Selling, administrative and general expenses (129.7) (117.3) Gain on sale of property, plant & equipment and businesses 0.6 1.7 Other operating income (expense), net (2.9) 0.8 Operating earnings 172.9 187.2 Other nonoperating income (expense), net (0.3) 1.4 Interest expense, net (39.1) (49.0) Earnings from continuing operations before income taxes 133.5 139.6 Income tax expense (28.9) (16.6) Earnings from continuing operations 104.6 123.0 Loss on discontinued operations, net of tax (1.7) (2.1) Net earnings 102.9 120.9 Earnings attributable to noncontrolling interest (0.2) (0.2) Net earnings attributable to Vulcan $102.7 $120.7 Basic earnings (loss) per share attributable to Vulcan Continuing operations $0.79 $0.92 Discontinued operations ($0.01) ($0.01) Net earnings $0.78 $0.91 Diluted earnings (loss) per share attributable to Vulcan Continuing operations $0.78 $0.92 Discontinued operations ($0.01) ($0.02) Net earnings $0.77 $0.90 Weighted-average common shares outstanding Basic 132.4 133.2 Assuming dilution 133.1 133.7 Effective tax rate from continuing operations 21.6 % 11.9 %   Table B Vulcan Materials Company and Subsidiary Companies (in millions) Consolidated Balance Sheets March 31 December 31 March 31 (Condensed and unaudited) 2024 2023 2023 Assets Cash and cash equivalents $292.4 $931.1 $139.6 Restricted cash 7.7 18.1 0.4 Accounts and notes receivable Accounts and notes receivable, gross 900.4 903.3 988.1 Allowance for credit losses (14.3) (13.6) (13.1) Accounts and notes receivable, net 886.1 889.7 975.0 Inventories Finished products 512.7 494.4 437.8 Raw materials 58.7 51.2 70.6 Products in process 6.8 6.5 6.2 Operating supplies and other 69.0 63.5 71.0 Inventories 647.2 615.6 585.6 Other current assets 74.2 70.4 91.9 Total current assets 1,907.6 2,524.9 1,792.5 Investments and long-term receivables 31.4 31.3 31.3 Property, plant & equipment Property, plant & equipment, cost 11,949.3 11,835.5 11,413.5 Allowances for depreciation, depletion & amortization (5,740.0) (5,617.8) (5,368.6) Property, plant & equipment, net 6,209.3 6,217.7 6,044.9 Operating lease right-of-use assets, net 512.4 511.7 569.5 Goodwill 3,531.7 3,531.7 3,689.6 Other intangible assets, net 1,445.8 1,460.7 1,679.2 Other noncurrent assets 272.7 267.7 269.9 Total assets $13,910.9 $14,545.7 $14,076.9 Liabilities Current maturities of long-term debt 0.5 0.5 0.5 Trade payables and accruals 320.9 390.4 370.3 Other current liabilities 374.8 406.7 386.1 Total current liabilities 696.2 797.6 756.9 Long-term debt 3,330.7 3,877.3 3,876.9 Deferred income taxes, net 1,027.3 1,028.9 1,060.1 Deferred revenue 143.6 145.3 157.8 Noncurrent operating lease liabilities 508.2 507.4 545.9 Other noncurrent liabilities 688.3 681.3 668.6 Total liabilities $6,394.3 $7,037.8 $7,066.2 Equity Common stock, $1 par value 132.3 132.1 133.1 Capital in excess of par value 2,865.0 2,880.1 2,832.9 Retained earnings 4,636.7 4,615.0 4,174.0 Accumulated other comprehensive loss (142.1) (143.8) (153.1)