Page 70 - 2019 Annual Report
P. 70
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
The Company’s consolidated operating results and operating results as a percentage of total revenues are as follows:
% of % of
years ended December 31 Total Total
(in millions, except for % of total revenues) 2019 revenues 2018 revenues
Product and services revenues $ 4,422.3 $ 3,980.4
Freight revenues 316.8 263.9
Total revenues 4,739.1 100.0 4,244.3 100.0
Cost of revenues - products and services 3,239.1 3,009.8
Cost of revenues - freight 321.0 267.9
Total cost of revenues 3,560.1 75.1 3,277.7 77.2
Gross profit 1,179.0 24.9 966.6 22.8
Selling, general and administrative expenses 302.7 6.4 280.6 6.6
Acquisition related expenses, net 0.5 13.5
Other operating income, net (9.1 ) (18.2 )
Earnings from operations 884.9 18.7 690.7 16.3
Interest expense 129.3 137.1
Other nonoperating expenses and (income), net 7.3 (22.5 )
Earnings before income tax expense 748.3 576.1
Income tax expense 136.3 105.7
Consolidated net earnings 612.0 12.9 470.4 11.1
Less: Net earnings attributable to noncontrolling interests 0.1 0.4
Net Earnings Attributable to Martin Marietta $ 611.9 12.9 $ 470.0 11.1
Earnings before interest; income taxes; depreciation, depletion and amortization; the noncash earnings/loss from
nonconsolidated equity affiliates; the impact of Bluegrass acquisition-related expenses, net; the impact of selling acquired
inventory due to the markup to fair value as part of acquisition accounting; and the asset and portfolio rationalization charge
(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 net earnings, earnings from operations or operating cash flow. However, the Company’s
management believes that Adjusted EBITDA may provide additional information with respect to the Company’s performance.
Because Adjusted EBITDA excludes some, but not all, items that affect net earnings and may vary among companies, Adjusted
EBITDA as presented by the Company may not be comparable to similarly titled measures of other companies.
The following table presents a reconciliation of net earnings attributable to Martin Marietta to consolidated Adjusted EBITDA:
Consolidated Adjusted EBITDA
years ended December 31
(in millions) 2019 2018
Net earnings attributable to Martin Marietta $ 611.9 $ 470.0
Add back:
Interest expense 128.9 137.1
Income tax expense for controlling interests 136.3 105.6
Depreciation, depletion and amortization expense and earnings/loss from
nonconsolidated equity affiliates 377.4 328.4
Bluegrass acquisition-related expenses, net –– 13.5
Impact of selling acquired inventory due to the markup to fair value as part of
acquisition accounting –– 18.7
Asset and portfolio rationalization charge –– 18.8
Consolidated Adjusted EBITDA $ 1,254.5 $ 1,092.1
Annual Report ♦ Page 68 Celebrating 25 Years as a Public Company