Page 157 - Martin Marietta - 2024 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
In line with the Company’s strategic objectives, management’s overall focus includes:
 Upholding the Company’s commitment to its Mission, Vision and Values
 Navigating effectively through construction cycles to balance investment decisions against expected product demand
 Tracking shifts in population trends, as well as local, state and national economic conditions, to ensure changing trends
are reflected against the execution of the strategic plan
 Integrating acquired businesses efficiently to maximize the return on the investment
 Allocating capital in a prudent manner consistent with the following long‐standing priorities while maintaining financial
flexibility
─ Acquisitions
─ Organic capital investment
─ Return of cash to shareholders through both meaningful and sustainable dividends as well as share repurchases

2023 Performance Highlights

Achieved Industry‐Leading Safety Performance:
 Record company‐wide Lost‐Time Incident Rate (LTIR) of 0.13, the seventh consecutive year of world‐class or better LTIR
thresholds
 Company‐wide Total Injury Incident Rate (TIIR) of 0.78, the third consecutive year of world‐class or better TIIR thresholds

Achieved Record Financial Performance:
t
he Company achieved record revenues, gross profit, diluted earnings per share and Adjusted EBITDA (defined in the Results of
t
Operations section), reflecting the efficacy ofits value‐over‐volume commercial strategy and continued focus on operational
excellence and despite lower shipments due to the effects of restrictive monetary policies and a housing slowdown. Further, 2023
marked the twelfth consecutive year of growth for Adjusted EBITDA. The Company’s commitment to safety and operational and
commercial excellence resulted in the following financial performance from continuing operations (comparisons with 2022):
 Record consolidated total revenues of $6.78 billion compared with $6.16 billion, an increase of 10.0%
 Record consolidated gross profit of $2.02 billion compared with $1.42 billion, an increase of42.1%
 Consolidated selling, general and administrative (SG&A) expenses representing 6.5% of total revenues
 Net earningsfrom continuing operations attributable to Martin Marietta of $1.20 billion compared with $856.3 million,
an increase of40.1%
 Record consolidated Adjusted EBITDA from continuing operations of $2.13 billion, an increase of 33.0%
 Operating cash flow of $1.53 billion, an increase of 54.2%

Continued Disciplined Execution Against Capital Allocation Priorities:
 Optimized portfolio with divestitures of the Company's California cement operations
 Capital investments into operations of $650.3 million
 Quarterly dividend increase of 12% in August 2023, resulting in total annual dividends paid of $174.0 million, or $2.80 per
share
 Repurchase of 0.4 million shares of common stock at a total cost of $150.0 million

2023 Annual Report ♦ Page 55