Page 89 - Martin Marietta - 2022 Proxy Statement

Appendix B

Non-GAAP Measures
Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to
provide them with an alternative method for assessing our financial condition and operating results, and are often
requested by investors. These measures are not in accordance with, or a substitute for, generally accepted accounting
principles (GAAP) and may be different from or inconsistent with non-GAAP financial measures used by other companies.
Adjusted EBITDA is an indicator used by the Company and investors to evaluate the Company’s operating performance
period to period.
EBITDA is a widely accepted financial indicator of a company’s ability to service and/or incur indebtedness. EBITDA is not
defined by GAAP and, as such, should not be construed as an alternative to earnings from operations, net earnings or
operating cash flow.
The following presents a reconciliation of net earnings from continuing operations attributable to Martin Marietta to
consolidated Adjusted EBITDA for continuing operations for the years ended December 31, 2021, 2020, 2015 and 2010.
Consolidated Adjusted EBITDA for year ended December 31:
(dollars in millions) 2021 2020 2015 2010
Net Earnings from continuing operations Attributable to Martin Marietta $ 702.0 $ 721.0 $288.8 $ 96.8
Add back:
Interest expense, net of interest income 142.4 117.6 75.9 67.4
Income tax expense for controlling interests 153.1 168.2 124.8 29.2
Depreciation, depletion and amortization expense and earnings/loss from
nonconsolidated equity affiliates 442.5 386.0 253.8 179.0
Acquisition-related expenses 57.9 – – –
Impact of selling acquired inventory after markup to fair value as part of
acquisition accounting 30.6 – – –
Consolidated Adjusted EBITDA from continuing operations $1,528.5 $1,392.8 $743.3 $372.4

The leverage ratio is our consolidated net debt-to-consolidated Adjusted EBITDA from continuing operations for the
trailing twelve months. Management uses this ratio to assess its capacity for additional borrowings. The following
calculation as of December 31, 2021 is not intended to be a substitute for the Company’s leverage covenant under its
credit facility:
(dollars in millions)
Net Earnings from continuing operations Attributable to Martin Marietta $ 702.0
Add back:
Interest expense, net of interest income 142.4
Income tax expense for controlling interests 153.1
Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates 442.5
Acquisition-related expenses 57.9
Impact of selling acquired inventory after markup to fair value as part of acquisition accounting 30.6
Consolidated Adjusted EBITDA from continuing operations for the twelve months ended December 31, 2021 $1,528.5
Consolidated debt at December 31, 2021 $5,100.9
Less: Unrestricted cash at December 31, 2021 (258.4)
Consolidated net debt at December 31, 2021 $4,842.5
Consolidated net debt-to-consolidated EBITDA at December 31, 2021 for trailing-twelve months Consolidated Adjusted
EBTIDA from continuing operations 3.2x

2022 PROXY STATEMENT B-1