Page 106 - Martin Marietta - 2024 Proxy Statement

APPENDIX B /

The Company Selected Measure of Adjusted EBITDA for Pay Versus Performance on page 85 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, 2023, 2022, 2021
and 2020.
(dollars in millions) 2023 2022 2021 2020
Net (loss) earnings from discontinued operations $ (30.9) $ 10.5 $ 0.5 $
Add back (deduct):
Interest expense 0.2 0.2
Income tax (benefit) expense (9.4) 5.0 0.1
Depreciation, depletion and amortization expense 0.3 0.8
Nonrecurring loss on divestitures 24.0 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 (16.3) 16.7 4.7
Consolidated Adjusted EBITDA from continuing operations 2,127.7 1,600.3 1,528.5 1,392.8
Adjusted EBITDA for Pay for Performance $2,111.4 $1,617.0 $1,533.2 $1,392.8

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
calculation as of December 31, 2023 is not intended to be a substitute for the Company’s leverage covenant under its
credit facility:

(dollars in millions) 2023
Net earnings from continuing operations attributable to Martin Marietta $ 1,119.8
Add back:
Interest expense, net of interest income 118.6
Income tax expense for controlling interests 292.3
Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates 504.8
Acquisition and integration expenses 12.2
Consolidated Adjusted EBITDA from continuing operations for the twelve months ended December 31 $ 2,127.7
Consolidated debt at December 31 $ 4,345.2
Less: Unrestricted cash at December 31 (1,271.8)
Consolidated net debt at December 31 $ 3,073.4
Consolidated net debt-to-consolidated EBITDA at December 31 for trailing-twelve months Consolidated Adjusted
EBTIDA from continuing operations 1.44 times

B-2 2024 PROXY STATEMENT