Page 56 - 2019 Annual Report
P. 56
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
In line with the Company’s strategic objectives, management’s overall focus includes the following items:
• Upholding the Company’s commitment to its mission, vision and values
• Navigating effectively through a slow-and-steady construction cycle, balancing investment and cost decisions against
expected shipment volumes
• Tracking shifts in population trends, as well as local, state and national economic conditions, to ensure changing
trends are reflected against the execution of the strategic plan
• Integrating acquired businesses efficiently to maximize the return on the investment
• Allocating capital in a manner consistent with the following long-standing priorities while maintaining financial flexibility
─ Acquisitions
─ Organic capital investment
─ Return of cash to shareholders through both meaningful and sustainable dividends and share repurchases
2019 Performance Highlights
Achieved Leading Safety Performance:
• Record company-wide Lost Time Incident Rate (LTIR) of 0.20, the third consecutive year of world-class or better
LTIR thresholds
• Total Injury Incident Rate (TIIR) of 1.18; with acquired Bluegrass operations improving to heritage TIIR levels
Achieved Record Financial Performance:
The Company achieved record total revenues, gross profit, earnings from operations and Adjusted EBITDA (defined in Results
of Operations section), driven by strong customer demand and improved pricing and profitability across the majority of the
Building Materials business. The Company achieved its eighth consecutive year of growth for revenues, gross profit, Adjusted
EBITDA and earnings per diluted share. The Company’s commitment to safety and operational excellence resulted in the
following financial performance (comparisons with 2018):
• Record consolidated total revenues of $4.74 billion compared with $4.24 billion, an increase of 11.7%
• Record gross profit of $1.18 billion compared with $966.6 million, an increase of 22.1%
• Selling, general and administrative (SG&A) expenses representing 6.4% of total revenues, a 20-basis-point improvement
• Net earnings attributable to Martin Marietta of $611.9 million compared with $470.0 million, an increase of 30.2%
• Earnings per diluted share of $9.74 compared with $7.43
• Record consolidated Adjusted EBITDA of $1.25 billion, an increase of 14.9%
• Aggregates product line pricing increase of 4.2% and shipment growth of 11.7%
• Magnesia Specialties’ total revenues of $271.3 million and earnings from operations of $83.6 million
• Operating cash flow of $966.1 million
Continued Disciplined Execution Against Capital Allocation Priorities:
• Dividend increase of 15% in August 2019, resulting in total annual dividends paid of $129.8 million, or $2.06 per share
• Repurchased 0.4 million shares of common stock for $98.2 million
• Net debt repayment of $350 million; return to leverage ratio within targeted range
Annual Report ♦ Page 54 Celebrating 25 Years as a Public Company