Achieved Full-Year Records for Revenues, Profitability and Safety Performance
Full-Year Aggregates Unit Profitability Improved 46.4 Percent
Strong Balance Sheet Poised for Continued Strategic Plan Execution
Fourth-Quarter and Full-Year Highlights
(Financial highlights are for continuing operations)
Quarter Ended | Year Ended | ||||||||||||||||||||||
(dollars in millions, except per share) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||
Total revenues 1 | $ | 1,608.2 | $ | 1,476.5 | 8.9 | % | $ | 6,777.2 | $ | 6,160.7 | 10.0 | % | |||||||||||
Gross profit | $ | 483.5 | $ | 354.2 | 36.5 | % | $ | 2,022.6 | $ | 1,423.3 | 42.1 | % | |||||||||||
Earnings from operations2 | $ | 370.2 | $ | 262.3 | 41.1 | % | $ | 1,596.0 | $ | 1,206.7 | 32.3 | % | |||||||||||
Net earnings from continuing operations attributable to Martin Marietta2 | $ | 287.7 | $ | 187.4 | 53.5 | % | $ | 1,199.8 | $ | 856.3 | 40.1 | % | |||||||||||
Adjusted EBITDA 3 | $ | 502.6 | $ | 391.7 | 28.3 | % | $ | 2,127.7 | $ | 1,600.3 | 33.0 | % | |||||||||||
Earnings per diluted share from continuing operations2 | $ | 4.63 | $ | 3.01 | 53.8 | % | $ | 19.32 | $ | 13.70 | 41.0 | % |
- Total revenues include the sales of products and services to customers (net of any discounts or allowances) and freight revenues.
- Year ended
December 31, 2022 , earnings from operations, net earnings from continuing operations attributable to Martin Marietta and earnings per diluted share from continuing operations include$151.9 million ,$108.8 million and$1.74 per diluted share, respectively, for a nonrecurring gain on a divestiture. - Earnings from continuing operations before interest, income taxes, depreciation, depletion and amortization expense, the earnings/loss from nonconsolidated equity affiliates, acquisition, divestiture and integration expenses, and the nonrecurring gain on the divestiture of certain ready mixed concrete operations, or Adjusted EBITDA, is a non-GAAP financial measure. See Appendix to this earnings release for a reconciliation to net earnings from continuing operations attributable to Martin Marietta.
"The team's disciplined execution of our proven value-over-volume commercial strategy drove an organic improvement of 33.0 percent and 46.4 percent in full-year Adjusted EBITDA and aggregates unit profitability, respectively. These accomplishments, notwithstanding a macroeconomic backdrop that was highlighted by restrictive monetary policy, a housing slowdown and rising geopolitical tensions, demonstrate the resiliency of our aggregates-led business model and position us well for continued success in 2024 and beyond.
"Looking at the year ahead, we expect aggregates demand for infrastructure, large-scale energy and domestic manufacturing projects will be strong, largely offsetting weaker residential demand and anticipated softening in light nonresidential activity. That said, as mortgage rates stabilize and affordability headwinds recede, we fully expect single-family residential construction to recover, as demand still far exceeds supply particularly in our key markets."
Fourth-Quarter Financial and Operating Results
(All financial and operating results are for continuing operations and comparisons are versus the prior-year fourth quarter, unless otherwise noted)
Building Materials Business
The
Aggregates
Fourth-quarter aggregates shipments decreased 2.1 percent, reflective of the Company's value-over-volume strategy and moderating demand resulting from the affordability-driven residential slowdown and a softening in warehouse and data center construction. Pricing increased 15.0 percent, or 14.3 percent on a mix-adjusted basis, due to the cumulative effect of
Aggregates gross profit increased 36.8 percent to
Cement
Notwithstanding the shipment decline, cement gross profit increased 46.0 percent to
Downstream businesses
Ready mixed concrete revenues improved 12.1 percent to
Asphalt and paving revenues increased 13.3 percent to
Portfolio Optimization
On
Collectively, these portfolio optimizing transactions, wholly consistent with the Company's aggregates-led product strategy, not only improve the Company's product mix and margin profile, but also enhance the durability of the business while maintaining significant balance sheet flexibility for future growth and shareholder returns.
Magnesia Specialties Business
Magnesia Specialties fourth-quarter revenues increased 9.2 percent to
Cash Generation, Capital Allocation and Liquidity
Cash provided by operating activities for the year ended
Cash paid for property, plant and equipment additions for the year ended
For the year ended
The Company had
Full-Year 2024 Guidance
The Company’s 2024 guidance table below reflects the AFS acquisition and the
2024 GUIDANCE | ||||||||
(Dollars in Millions) | Low * | High * | ||||||
Consolidated | ||||||||
Total revenues | $ | 6,745 | $ | 7,185 | ||||
Interest expense | $ | 55 | $ | 65 | ||||
Estimated tax rate (excluding discrete events) | 21 | % | 22 | % | ||||
Net earnings from continuing operations attributable to Martin Marietta | $ | 1,205 | $ | 1,385 | ||||
Adjusted EBITDA1 | $ | 2,140 | $ | 2,340 | ||||
Capital expenditures | $ | 650 | $ | 700 | ||||
Building Materials Business | ||||||||
Aggregates | ||||||||
Volume % growth2 | (2.0 | )% | 2.0 | % | ||||
ASP % growth3 | 10.0 | % | 12.0 | % | ||||
Gross profit | $ | 1,610 | $ | 1,730 | ||||
Cement, | ||||||||
Gross profit | $ | 395 | $ | 445 | ||||
Magnesia Specialties Business | ||||||||
Gross profit | $ | 100 | $ | 110 |
* Guidance range represents the low end and high end of the respective line items provided above.
- Adjusted EBITDA is a non-GAAP financial measure. See Appendix to this earnings release for a reconciliation to net earnings from continuing operations attributable to Martin Marietta.
- Volume growth range is inclusive of internal tons and is in comparison to 2023 shipments of 198.8 million tons.
- ASP growth is in comparison to 2023 ASP of
$19.84 per ton.
Non-GAAP Financial Information
This earnings release contains financial measures that have not been prepared in accordance with generally accepted accounting principles in
Conference Call Information
The Company will discuss its fourth-quarter and full-year 2023 earnings results on a conference call and an online webcast today (
About Martin Marietta
Martin Marietta, a member of the S&P 500 Index, is an American-based company and a leading supplier of building materials, including aggregates, cement, ready mixed concrete and asphalt. Through a network of operations spanning 28 states,
Investor Contact:
Director, Investor Relations
(919) 510-4736
Jacklyn.Rooker@martinmarietta.com
MLM-E.
If you are interested in Martin Marietta stock, management recommends that, at a minimum, reading the Company’s current annual report and Forms 10-K, 10-Q and 8-K reports to the
Investors are cautioned that all statements in this release that relate to the future involve risks and uncertainties and are based on assumptions that the Company believes in good faith are reasonable, but which may be materially different from actual results. These statements, which are forward-looking statements under the Private Securities Litigation Reform Act of 1995, provide the investor with the Company’s expectations or forecasts of future events. You can identify these statements by the fact that they do not relate only to historical or current facts. They may use words such as “guidance”, “anticipate”, “may”, “expect”, “should”, “believe”, “will”, and other words of similar meaning in connection with future events or future operating or financial performance. Any or all of the Company’s forward-looking statements here and in other publications may turn out to be wrong.
Fourth-quarter and full-year results and trends described in this release may not necessarily be indicative of the Company’s future performance. The Company’s outlook is subject to various risks and uncertainties and is based on assumptions that the Company believes in good faith are reasonable, but which may be materially different from actual results. Factors that the Company currently believes could cause actual results to differ materially from the forward-looking statements in this release (including 2024 guidance) include, but are not limited to: the ability of the Company to face challenges, including shipment declines resulting from economic events beyond the Company’s control; a widespread decline in aggregates pricing, including a decline in aggregates shipment volume negatively affecting aggregates price; the history of both cement and ready mixed concrete being subject to significant changes in supply, demand and price fluctuations; the termination, capping and/or reduction or suspension of the federal and/or state fuel tax(es) or other revenue related to public construction; the level and timing of federal, state or local transportation or infrastructure or public projects funding, most particularly in
You should consider these forward-looking statements in light of risk factors discussed in Martin Marietta’s Annual Report on Form 10-K for the year ended
Appendix
Unaudited Statements of Earnings | ||||||||||||||||
(in millions, except per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Total Revenues | $ | 1,608.2 | $ | 1,476.5 | $ | 6,777.2 | $ | 6,160.7 | ||||||||
Total cost of revenues | 1,124.7 | 1,122.3 | 4,754.6 | 4,737.4 | ||||||||||||
Gross Profit | 483.5 | 354.2 | 2,022.6 | 1,423.3 | ||||||||||||
Selling, general and administrative expenses | 118.7 | 100.7 | 442.8 | 396.7 | ||||||||||||
Acquisition, divestiture and integration expenses | 7.6 | 3.0 | 12.2 | 9.1 | ||||||||||||
Other operating income, net | (13.0 | ) | (11.8 | ) | (28.4 | ) | (189.2 | ) | ||||||||
Earnings from Operations | 370.2 | 262.3 | 1,596.0 | 1,206.7 | ||||||||||||
Interest expense | 40.2 | 42.6 | 165.3 | 169.0 | ||||||||||||
Other nonoperating income, net | (12.9 | ) | (13.3 | ) | (62.1 | ) | (53.4 | ) | ||||||||
Earnings from continuing operations before income tax expense | 342.9 | 233.0 | 1,492.8 | 1,091.1 | ||||||||||||
Income tax expense | 55.1 | 45.4 | 292.5 | 234.8 | ||||||||||||
Earnings from continuing operations | 287.8 | 187.6 | 1,200.3 | 856.3 | ||||||||||||
(Loss) Earnings from discontinued operations, net of income tax (benefit) expense | (5.2 | ) | (3.8 | ) | (30.9 | ) | 10.5 | |||||||||
Consolidated net earnings | 282.6 | 183.8 | 1,169.4 | 866.8 | ||||||||||||
Less: Net earnings attributable to noncontrolling interests | 0.1 | 0.2 | 0.5 | — | ||||||||||||
Net Earnings Attributable to Martin Marietta | $ | 282.5 | $ | 183.6 | $ | 1,168.9 | $ | 866.8 | ||||||||
Net earnings (loss) per common share attributable to common shareholders: | ||||||||||||||||
Basic from continuing operations | $ | 4.65 | $ | 3.02 | $ | 19.38 | $ | 13.74 | ||||||||
Basic from discontinued operations | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.50 | ) | $ | 0.17 | |||||
Basic | $ | 4.57 | $ | 2.96 | $ | 18.88 | $ | 13.91 | ||||||||
Diluted from continuing operations | $ | 4.63 | $ | 3.01 | $ | 19.32 | $ | 13.70 | ||||||||
Diluted from discontinued operations | $ | (0.08 | ) | $ | (0.06 | ) | $ | (0.50 | ) | $ | 0.17 | |||||
Diluted | $ | 4.55 | $ | 2.95 | $ | 18.82 | $ | 13.87 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 61.8 | 62.1 | 61.9 | 62.3 | ||||||||||||
Diluted | 62.0 | 62.3 | 62.1 | 62.5 | ||||||||||||
Dividends per common share | $ | 0.74 | $ | 0.66 | $ | 2.80 | $ | 2.54 | ||||||||
Unaudited Financial Highlights | ||||||||||||||||
(In millions) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Total revenues: | ||||||||||||||||
Building Materials business: | ||||||||||||||||
East Group | $ | 684.3 | $ | 601.1 | $ | 2,763.4 | $ | 2,468.1 | ||||||||
847.9 | 805.8 | 3,698.4 | 3,388.6 | |||||||||||||
Total | 1,532.2 | 1,406.9 | 6,461.8 | 5,856.7 | ||||||||||||
Magnesia Specialties | 76.0 | 69.6 | 315.4 | 304.0 | ||||||||||||
Total | $ | 1,608.2 | $ | 1,476.5 | $ | 6,777.2 | $ | 6,160.7 | ||||||||
Earnings (Loss) from operations: | ||||||||||||||||
Building Materials business: | ||||||||||||||||
East Group | $ | 225.5 | $ | 162.2 | $ | 857.1 | $ | 640.2 | ||||||||
159.9 | 110.8 | 777.1 | 588.1 | |||||||||||||
Total | 385.4 | 273.0 | 1,634.2 | 1,228.3 | ||||||||||||
Magnesia Specialties | 15.2 | 16.8 | 76.0 | 75.2 | ||||||||||||
Corporate | (30.4 | ) | (27.5 | ) | (114.2 | ) | (96.8 | ) | ||||||||
Total | $ | 370.2 | $ | 262.3 | $ | 1,596.0 | $ | 1,206.7 | ||||||||
Unaudited Financial Highlights (Continued) | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Amount | % of Revenues | Amount | % of Revenues | Amount | % of Revenues | Amount | % of Revenues | |||||||||||||||||||||
Total revenues: | ||||||||||||||||||||||||||||
Building Materials business: | ||||||||||||||||||||||||||||
Aggregates | $ | 1,021.9 | $ | 934.1 | $ | 4,301.6 | $ | 3,879.0 | ||||||||||||||||||||
Cement | 160.2 | 151.0 | 725.5 | 620.0 | ||||||||||||||||||||||||
Ready mixed concrete | 232.8 | 207.8 | 1,009.3 | 953.2 | ||||||||||||||||||||||||
Asphalt and paving | 228.4 | 201.5 | 887.1 | 787.9 | ||||||||||||||||||||||||
Less: Interproduct sales | (111.1 | ) | (87.5 | ) | (461.7 | ) | (383.4 | ) | ||||||||||||||||||||
Total | 1,532.2 | 1,406.9 | 6,461.8 | 5,856.7 | ||||||||||||||||||||||||
Magnesia Specialties | 76.0 | 69.6 | 315.4 | 304.0 | ||||||||||||||||||||||||
Consolidated total revenues | $ | 1,608.2 | $ | 1,476.5 | $ | 6,777.2 | $ | 6,160.7 | ||||||||||||||||||||
Gross profit (loss): | ||||||||||||||||||||||||||||
Building Materials business: | ||||||||||||||||||||||||||||
Aggregates | $ | 328.6 | 32.2 | % | $ | 240.1 | 25.7 | % | $ | 1,378.1 | 32.0 | % | $ | 983.8 | 25.4 | % | ||||||||||||
Cement | 84.5 | 52.8 | % | 57.9 | 38.3 | % | 333.6 | 46.0 | % | 202.7 | 32.7 | % | ||||||||||||||||
Ready mixed concrete | 21.3 | 9.1 | % | 15.4 | 7.4 | % | 102.0 | 10.1 | % | 70.7 | 7.4 | % | ||||||||||||||||
Asphalt and paving | 26.9 | 11.8 | % | 18.0 | 8.9 | % | 109.0 | 12.3 | % | 81.0 | 10.3 | % | ||||||||||||||||
Total | 461.3 | 30.1 | % | 331.4 | 23.6 | % | 1,922.7 | 29.8 | % | 1,338.2 | 22.8 | % | ||||||||||||||||
Magnesia Specialties | 23.0 | 30.3 | % | 20.0 | 28.8 | % | 97.1 | 30.8 | % | 90.9 | 29.9 | % | ||||||||||||||||
Corporate | (0.8 | ) | NM | 2.8 | NM | 2.8 | NM | (5.8 | ) | NM | ||||||||||||||||||
Total | $ | 483.5 | 30.1 | % | $ | 354.2 | 24.0 | % | $ | 2,022.6 | 29.8 | % | $ | 1,423.3 | 23.1 | % | ||||||||||||
Balance Sheet Data | |||||||
(in millions) | |||||||
2023 | 2022 | ||||||
(Unaudited) | (Audited) | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 1,271.8 | $ | 358.0 | |||
Restricted cash | 10.5 | 0.8 | |||||
Restricted investments (to satisfy discharged debt and related interest) | — | 704.6 | |||||
Accounts receivable, net | 753.3 | 785.9 | |||||
Inventories, net | 988.6 | 873.7 | |||||
Current assets held for sale | 807.1 | 73.2 | |||||
Other current assets | 87.6 | 80.7 | |||||
Property, plant and equipment, net | 6,185.9 | 6,316.7 | |||||
Intangible assets, net | 4,087.2 | 4,497.3 | |||||
Operating lease right-of-use assets, net | 371.6 | 383.5 | |||||
Other noncurrent assets | 561.3 | 919.2 | |||||
Total assets | $ | 15,124.9 | $ | 14,993.6 | |||
LIABILITIES AND EQUITY | |||||||
Current maturities of long-term debt, including discharged debt | $ | 399.6 | $ | 699.1 | |||
Current liabilities held for sale | 18.2 | 4.5 | |||||
Other current liabilities | 752.4 | 742.0 | |||||
Long-term debt (excluding current maturities) | 3,945.6 | 4,340.9 | |||||
Other noncurrent liabilities | 1,973.5 | 2,034.3 | |||||
Total equity | 8,035.6 | 7,172.8 | |||||
Total liabilities and equity | $ | 15,124.9 | $ | 14,993.6 | |||
Unaudited Statements of Cash Flows | |||||||
(in millions) | |||||||
Twelve Months Ended | |||||||
2023 | 2022 | ||||||
Cash Flows from Operating Activities: | |||||||
Consolidated net earnings | $ | 1,169.4 | $ | 866.8 | |||
Adjustments to reconcile consolidated net earnings to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 513.2 | 506.0 | |||||
Stock-based compensation expense | 50.0 | 42.7 | |||||
Net gains on divestitures, sales of assets and extinguishment of debt | (1.9 | ) | (195.7 | ) | |||
Deferred income taxes, net | (36.1 | ) | (0.6 | ) | |||
Other items, net | (16.5 | ) | (11.7 | ) | |||
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||||||
Accounts receivable, net | 31.4 | (12.1 | ) | ||||
Inventories, net | (188.7 | ) | (131.7 | ) | |||
Accounts payable | (17.0 | ) | (31.2 | ) | |||
Other assets and liabilities, net | 24.6 | (41.3 | ) | ||||
Net Cash Provided by Operating Activities | 1,528.4 | 991.2 | |||||
Cash Flows from Investing Activities: | |||||||
Additions to property, plant and equipment | (650.3 | ) | (481.8 | ) | |||
Acquisitions, net of cash acquired | — | 11.0 | |||||
Proceeds from sale of restricted investment related to discharge of long-term debt | 700.0 | — | |||||
Proceeds from divestitures and sales of assets | 426.5 | 687.1 | |||||
Purchase of restricted investments to discharge long-term debt | — | (704.6 | ) | ||||
Repayment of note receivable from affiliate | 6.0 | — | |||||
Investments in life insurance contracts, net | 7.4 | 7.5 | |||||
Investments in limited liability company | (27.0 | ) | — | ||||
Other investing activities, net | (3.9 | ) | (3.0 | ) | |||
Net Cash Provided by (Used for) Investing Activities | 458.7 | (483.8 | ) | ||||
Cash Flows from Financing Activities: | |||||||
Repayments of long-term debt | (700.0 | ) | (54.5 | ) | |||
Debt issuance and extinguishment costs | (0.7 | ) | (0.7 | ) | |||
Payments on finance lease obligations | (17.6 | ) | (15.0 | ) | |||
Dividends paid | (174.0 | ) | (159.1 | ) | |||
Repurchases of common stock | (150.0 | ) | (150.0 | ) | |||
Distributions to owners of noncontrolling interest | (0.5 | ) | — | ||||
Contributions by noncontrolling interest to join venture | 0.1 | — | |||||
Proceeds from exercise of stock options | 1.2 | 0.6 | |||||
Shares withheld for employees’ income tax obligations | (22.1 | ) | (28.8 | ) | |||
(1,063.6 | ) | (407.5 | ) | ||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | 923.5 | 99.9 | |||||
Cash, Cash Equivalents and Restricted Cash, beginning of year | 358.8 | 258.9 | |||||
Cash, Cash Equivalents and Restricted Cash, end of year | $ | 1,282.3 | $ | 358.8 | |||
Unaudited Operational Highlights | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Shipments (in millions) | ||||||||||||||||
Aggregates tons | 46.6 | 47.7 | 198.8 | 207.7 | ||||||||||||
Cement tons | 0.9 | 0.9 | 4.0 | 4.2 | ||||||||||||
Ready mixed concrete | 1.5 | 1.5 | 6.5 | 7.4 | ||||||||||||
Asphalt tons | 2.4 | 2.1 | 9.4 | 9.1 | ||||||||||||
Average unit sales price by product line (including internal sales): | ||||||||||||||||
Aggregates (per ton) | $ | 20.22 | $ | 17.58 | $ | 19.84 | $ | 16.68 | ||||||||
Cement (per ton) | $ | 179.14 | $ | 153.70 | $ | 174.27 | $ | 142.83 | ||||||||
Ready mixed concrete (per cubic yard) | $ | 159.73 | $ | 139.45 | $ | 154.34 | $ | 128.15 | ||||||||
Asphalt (per ton) | $ | 66.47 | $ | 63.59 | $ | 65.90 | $ | 61.77 | ||||||||
Non-GAAP Financial Measures
Earnings from continuing operations before interest; income taxes; depreciation, depletion and amortization expense; the earnings/loss from nonconsolidated equity affiliates; acquisition, divestiture and integration expenses; and the nonrecurring gain on the divestiture of certain ready mixed concrete operations (Adjusted EBITDA) is an indicator used by the Company and investors to evaluate the Company’s operating performance from period to period. Adjusted EBITDA is not defined by generally accepted accounting principles and, as such, should not be construed as an alternative to earnings from operations, net earnings or operating cash flow. For further information on Adjusted EBITDA, refer to the Company’s website at www.martinmarietta.com.
A Reconciliation of Net Earnings from Continuing Operations Attributable to Martin Marietta to Adjusted EBITDA is as follows:
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(in millions) | ||||||||||||||||
Net earnings from continuing operations attributable to Martin Marietta | $ | 287.7 | $ | 187.4 | $ | 1,199.8 | $ | 856.3 | ||||||||
Add back: | ||||||||||||||||
Interest expense, net of interest income | 25.7 | 33.9 | 118.6 | 155.4 | ||||||||||||
Income tax expense for controlling interests | 55.0 | 45.5 | 292.3 | 234.8 | ||||||||||||
Depreciation, depletion and amortization expense and noncash earnings/loss from nonconsolidated equity affiliates | 126.6 | 121.9 | 504.8 | 496.6 | ||||||||||||
Acquisition, divestiture and integration expenses | 7.6 | 3.0 | 12.2 | 9.1 | ||||||||||||
Nonrecurring gain on divestiture | — | — | — | (151.9 | ) | |||||||||||
Adjusted EBITDA | $ | 502.6 | $ | 391.7 | $ | 2,127.7 | $ | 1,600.3 | ||||||||
A Reconciliation of the GAAP Measure to 2024
(Dollars in Millions) | ||||||||
Net earnings from continuing operations attributable to Martin Marietta | $ | 1,205.0 | $ | 1,385.0 | ||||
Add back: | ||||||||
Interest expense, net of interest income | 55.0 | 65.0 | ||||||
Income tax expense for controlling interests | 360.0 | 350.0 | ||||||
Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates | 520.0 | 540.0 | ||||||
Adjusted EBITDA | $ | 2,140.0 | $ | 2,340.0 | ||||
Non-GAAP Financial Measures (Continued)
Mix-adjusted average selling price (mix-adjusted ASP) is a non-GAAP measure that excludes the impact of period-over-period product, geographic and other mix on the average selling price. Mix-adjusted ASP is calculated by comparing current-period shipments to like-for-like shipments in the comparable prior period. Management uses this metric to evaluate the realization of pricing increases and believes this information is useful to investors. The following reconciles reported average selling price to mix-adjusted ASP and corresponding variances.
Three Months Ended | ||||||||
2023 | 2022 | |||||||
Aggregates: | ||||||||
Reported average selling price | $ | 20.22 | $ | 17.58 | ||||
Adjustment for impact of product, geographic and other mix | (0.12 | ) | ||||||
Mix-adjusted average selling price | $ | 20.10 | ||||||
Reported average selling price variance | 15.0 | % | ||||||
Mix-adjusted ASP variance | 14.3 | % | ||||||
Cement - Continuing Operations: | ||||||||
Reported average selling price | $ | 179.14 | $ | 153.70 | ||||
Adjustment for impact of product, geographic and other mix | (1.07 | ) | ||||||
Mix-adjusted average selling price | $ | 178.07 | ||||||
Reported average selling price variance | 16.6 | % | ||||||
Mix-adjusted ASP variance | 15.9 | % | ||||||
Source:
2024 GlobeNewswire, Inc., source