Page 110 - Martin Marietta - 2023 Proxy Statement

APPENDIX B /

Leverage Ratio

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 calculations as of
December 31, 2022 and 2021 are not intended to be a substitute for the Company’s leverage covenant under its credit facility:

(dollars in millions) 2022 2021
Net earnings from continuing operations attributable to Martin Marietta $ 856.3 $ 702.0
Add back:
Interest expense, net of interest income 155.4 142.4
Income tax expense for controlling interests 234.8 153.1
Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity
affiliates 496.6 442.5
Acquisition and integration expenses 9.1 57.9
Nonrecurring gain on divestiture (151.9) –
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 $ 1,600.3 $ 1,528.5
Consolidated debt at December 31, (2022 excludes the discharged $700 million Notes that mature in
2023) $ 4,340.9 $ 5,100.9
Less: Unrestricted cash at December 31 (358.0) (258.4)
Consolidated net debt at December 31 $ 3,982.9 $ 4,842.5
Consolidated net debt-to-consolidated EBITDA at December 31 for trailing-twelve months Consolidated
Adjusted EBTIDA from continuing operations 2.5 times 3.2 times

Adjusted Earnings Per Diluted Share from Continuing Operations
Adjusted earnings per diluted share from continuing operations (Adjusted EPS) for the year ended December 31, 2022
excludes the impacts of the nonrecurring gain on divestiture and acquisition and integration expenses.
Management presents this non-GAAP measure to more accurately report the performance of the Company excluding
these nonrecurring items.
The following reconciles reported earnings per diluted share from continuing operations to Adjusted EPS from continuing
operations for the year ended December 31, 2022.

(dollars in millions, except per share) Pretax Income Tax After-Tax Per Share
Earnings per diluted share from continuing operations in accordance with
GAAP $13.70
Impact of nonrecurring gain on divestiture $(151.9) $43.1 $(108.8) (1.74)
Acquisition and integration expenses $ 9.1 $ (2.2) $ 6.9 0.11
Adjusted earnings per diluted share from continuing operations $12.07

B-2 2023 PROXY STATEMENT