Upcoming AWS Coverage on Summit Materials Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 25, 2017 / Active Wall St. announces its post-earnings coverage on Vulcan Materials Co. (NYSE: VMC). The Company released its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 10, 2017. The Birmingham, Alabama-based Company reported a 4% y-o-y growth in its total revenues, outperforming market consensus estimates. Register with us now for your free membership at:

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One of Vulcan Materials' competitors within the General Building Materials space, Summit Materials, Inc. (NYSE: SUM), reported on May 03, 2017, its earnings results for Q1 2017. AWS will be initiating a research report on Summit Materials in the coming days.

Today, AWS is promoting its earnings coverage on VMC; touching on SUM. Get our free coverage by signing up to:

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Earnings Reviewed

During the three months ended on March 31, 2017, Vulcan reported total revenues of $787.33 million compared to $754.73 million recorded at the end of Q1 FY16. Total revenues numbers topped market expectations of $756.4 million.

The construction materials Company reported earnings from continuing operations of $43.52 million, or $0.32 per diluted share, in Q1 FY17 compared to $41.97 million, or $0.31 per diluted share, in the prior year's same period. Meanwhile, the Company's adjusted earnings from continuing operations were $0.34 per diluted share in Q1 FY17 compared to $0.41 per diluted share in the past year's comparable quarter. Meanwhile, Wall Street had expected the Company to report adjusted earnings of $0.22 per diluted share.

Operating Metrics

In the reported quarter, Vulcan's adjusted gross profit came in at $159.98 million, or 20.3% of total revenues, compared to $164.72 million, or 21.8% of total revenues, in the year ago same period. The Company's operating earnings for Q1 FY17 stood at $72.40 million compared to $64.92 million in Q1 FY16.

EBIT rose to $74.42 million during Q1 FY17 from $64.23 million in Q1 FY16. However, adjusted EBIT was down by 10% to $77.75 million in Q1 FY17 from $86.04 million in Q1 FY16. The Company's EBITDA increased to $145.99 million during the reported quarter from $133.63 million in Q1 FY16. Furthermore, the adjusted EBITDA for Q1 FY17 stood at $149.31 million versus $155.45 million in Q1 FY16.

Segment-Performance

The Company's Aggregates segment total revenues grew from $634.87 million in Q1 FY16 to $650.30 million in the reported quarter. However, the segment's gross profit fell to $140.16 million in Q1 FY17 from $148.38 million in Q1 FY16. The Company attributed the decline in the segment's gross profit to a 35% rise in the unit cost of diesel fuel, flood-related costs in California, increased stripping expenses, and rise in other costs.

During Q1 FY17, Asphalt Mix segment reported total revenues of $95.78 million, rising from $89.10 million recorded in the prior year's comparable quarter. Meanwhile, the segment's gross profit declined to $8.64 million in Q1 FY17 from $12.21 million in Q1 FY16. The segment's gross profits fell primarily due to modestly lower material margins and acquisition-related costs.

Vulcan's Concrete segment's revenues were $88.75 million in Q1 FY17, up from $70.40 million in Q1 FY16. Moreover, the segment's gross profit surged to $10.45 million in Q1 FY17 from $3.48 million in the previous year's same quarter.

Calcium segment's sales dropped from $1.91 million in Q1 FY16 to $1.89 million in Q1 FY17. However, the segment's gross profit increased to $0.72 million in Q1 FY17 from $0.64 million in the year-ago same period.

Cash Flow & Balance

During Q1 FY17, Vulcan's net cash flow provided by operating activities increased to $94.15 million from $88.73 million in the year ago comparable period. At the close of books on March 31, 2017, Vulcan had cash and cash equivalents balance of $286.96 million versus $191.89 million at the close of books on March 31, 2016. Additionally, the Company's long-term debt increased to $2.33 billion as on March 31, 2017, from $1.98 billion as on March 31, 2016.

Dividend and Buyback

In a separate press release on May 12, 2017, Vulcan's Board of Directors declared a quarterly cash dividend of $0.25 per share on its common stock. The dividend will be payable on June 09, 2017, to shareholders of record at the close of business on May 24, 2017.

During Q1 FY17, the Company returned $82 million to shareholders through dividends and share repurchases.

Earnings Guidance

For full year FY17, Vulcan expects strong year-over-year growth in earnings with adjusted EBITDA in the range of $1.13 billion to $1.23 billion.

Stock Performance

At the closing bell, on Wednesday, May 24, 2017, Vulcan Materials' stock slipped 1.21%, ending the trading session at $125.12. A total volume of 1.52 million shares were traded at the end of the day, which was higher than the 3-month average volume of 1.36 million shares. In the last month and previous twelve months, shares of the Company have advanced 3.02% and 5.03%, respectively. The stock is trading at a PE ratio of 38.19 and has a dividend yield of 0.80%.

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