Page 109 - Martin Marietta - 2023 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 from continuing operations for the years ended December 31, 2022, 2021, 2020, 2015 and
2010.
Consolidated Adjusted EBITDA for year ended December 31:
(dollars in millions) 2022 2021 2020 2015 2010
Net earnings from continuing operations attributable to Martin
Marietta $ 856.3 $ 702.0 721.0 $ 288.8 $ 96.8
Add back:
Interest expense, net of interest income 155.4 142.4 117.6 75.9 67.4
Income tax expense for controlling interests 234.8 153.1 168.2 124.8 29.2
Depreciation, depletion and amortization expense and
earnings/loss from nonconsolidated equity affiliates 496.6 442.5 386.0 253.8 179.0
Acquisition and integration expenses 9.1 57.9 – – –
Impact of selling acquired inventory after markup to fair value
as part of acquisition accounting – 30.6 – – –
Nonrecurring gain on divestiture (151.9) – – – –
Consolidated Adjusted EBITDA from continuing operations $1,600.3 $1,528.5 $1,392.8 $ 743.3 $ 372.4
Total revenues $6,160.7 $5,414.0 $4,729.0 $3,539.6 $1,782.9
Adjusted EBITDA margin 26.0% 28.2% 29.4% 21.0% 20.9%
The Company Selected Measure of Adjusted EBITDA for Pay Versus Performance on page 83 includes continuing operations
and discontinued operations. The following presents a reconciliation of Consolidated Adjusted EBITDA from continuing
operations to Adjusted EBITDA for Pay for Performance for the years ended December 31, 2022, 2021 and 2020.
(dollars in millions) 2022 2021 2020
Net earnings from discontinued operations $ 10.5 $ 0.5 $ –
Add back:
Interest expense 0.2 0.2 –
Income tax expense 5.0 0.1 –
Depreciation, depletion and amortization expense 0.3 0.8 –
Nonrecurring loss on divestiture 0.7 – –
Impact of selling acquired inventory after mark up to fair value as part of acquisition
accounting – 3.1 –
Adjusted EBITDA from discontinued operations 16.7 4.7 –
Consolidated Adjusted EBITDA from continuing operations 1,600.3 1,528.5 1,392.8
Adjusted EBITDA for Pay for Performance $1,617.0 $1,533.2 $1,392.8

2023 PROXY STATEMENT B-1