Rock Products

JUN 2019

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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8 • ROCKproducts • June 2019 www.rockproducts.com IN THE KNOW FAST FACT Solid underlying fundamen- tals and pent-up demand carried over from last year helped drive shipment growth across most of the company's footprint. Vulcan's Aggregates Shipments Up 13% for Quarter Vulcan Materials Co. announced results for the quarter ended March 31. Total revenues were $996.5 million, com- pared to $854.5 million in the first quarter of 2018. Net earnings were $63 million and Adjusted EBITDA was $193 million in the first quarter. The 15% growth in Adjusted EBITDA was driven by strong aggregates shipments, up 13% year-over-year, and a 5.4% increase in aggregates pricing. First quarter aggregates segment gross profit increased 25% to $186 million, or $4.07 per ton. As a percentage of segment sales, gross profit margin expanded 100 basis points due to strong growth in shipments and price improvements. Trailing 12-month same-store incre- mental gross profit flow-through rate was 57%, which is in line with longer-term expectations of 60%. As a reminder, quarterly gross profit flow-through rates can vary widely from quarter to quarter; therefore, the company evaluates this metric on a trailing 12-month basis. First quarter aggregates shipments increased 13% (11% on a same-store basis) versus the prior-year quarter. Solid underlying fundamentals and pent-up demand carried over from last year helped drive shipment growth across most of the company's footprint. In California, shipments decreased by double-digits due to record rain- fall throughout most of the quarter. A strong demand environment, driven by transportation-related construction as well as growth in the company's project-related bookings, support its expectations for shipment growth in California in 2019. Price growth was positive across all markets served by the company. For the quarter, freight-adjusted average sales price for aggregates increased 5.4% versus the prior-year's quarter. Excluding mix impact, aggre- gates price increased 5.8% compared to the prior-year first quarter. Pricing was particularly strong in Ari- zona, California, Georgia, Tennessee and Texas. Positive trends in back- logged project work along with demand

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