Page 168 - Martin Marietta - 2023 Proxy Statement

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) 2022 revenues 2021 revenues
Product and services revenues $ 5,730.5 $ 5,084.7
Freight revenues 430.2 329.3
Total Revenues 6,160.7 100.0 5,414.0 100.0
Cost of revenues ‐ products and services 4,304.6 3,735.7
Cost of revenues ‐ freight 432.8 329.9
Total cost of revenues 4,737.4 76.9 4,065.6 75.1
Gross Profit 1,423.3 23.1 1,348.4 24.9
Selling, general and administrative expenses 396.7 6.4 351.0 6.5
Acquisition and integration expenses 9.1 57.9
Other operating income, net (189.2) (34.3)
Earnings from Operations 1,206.7 19.6 973.8 18.0
Interest expense 169.0 142.7
Other nonoperating income, net (53.4) (24.4)
Earnings from continuing operations before income tax expense 1,091.1 855.5
Income tax expense 234.8 153.2
Earnings from continuing operations 856.3 13.9 702.3 13.0
Earnings from discontinued operations, net of income tax
expense 10.5 0.5
Consolidated net earnings 866.8 702.8
Less: Net earnings attributable to noncontrolling interests — 0.3
Net Earnings Attributable to Martin Marietta $ 866.8 14.1 $ 702.5 13.0

Consolidated Adjusted EBITDA
Earnings from continuing operations before interest; income taxes; depreciation, depletion and amortization; earnings/loss
from nonconsolidated equity affiliates; acquisition and integration expenses; the impact of selling acquired inventory after its
markup to fair value as part of acquisition accounting; and the nonrecurring gain on the divestiture of certain ready mixed
concrete operations (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 (GAAP) and,
as such, should not be construed as an alternative to net earnings attributable to Martin Marietta, 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. Since 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 from continuing operations attributable to Martin Marietta to
consolidated Adjusted EBITDA:
years ended December 31
(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
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 $ 1,600.3 $ 1,528.5

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