Page 168 - Martin Marietta - 2024 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) 2023 revenues 2022 revenues
Total Revenues $ 6,777.2 100.0 $ 6,160.7 100.0
Total cost of revenues 4,754.6 70.2 4,737.4 76.9
Gross Profit 2,022.6 29.8 1,423.3 23.1
Selling, general and administrative expenses 442.8 6.5 396.7 6.4
Acquisition, divestiture and integration expenses 12.2 9.1
Other operating income, net (28.4) (189.2)
Earnings from Operations 1,596.0 23.5 1,206.7 19.6
Interest expense 165.3 169.0
Other nonoperating income, net (62.1) (53.4)
Earnings from continuing operations before income tax
expense 1,492.8 1,091.1
Income tax expense 292.5 234.8
Earnings from continuing operations 1,200.3 17.7 856.3 13.9
(Loss) Earnings from discontinued operations, net of income
tax (benefit) expense (30.9) 10.5
Consolidated net earnings 1,169.4 866.8
Less: Net earnings attributable to noncontrolling interests 0.5 —
Net Earnings Attributable to Martin Marietta $ 1,168.9 17.2 $ 866.8 14.1

Consolidated Adjusted EBITDA
Earnings from continuing operations before interest; income taxes; depreciation, depletion and amortization; earnings/loss from
nonconsolidated equity affiliates; acquisition, divestiture and integration expenses; 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 U.S. 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. 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 earningsfrom continuing operations attributable to Martin Marietta to
consolidated Adjusted EBITDA:

years ended December 31
(in millions) 2023 2022
Net earnings from continuing operations attributable to Martin Marietta $ 1,199.8 $ 856.3
Add back (subtract):
Interest expense, net of interest income 118.6 155.4
Income tax expense for controlling interests 292.3 234.8
Depreciation, depletion and amortization expense and earnings/loss from
nonconsolidated equity affiliates 504.8 496.6
Acquisition, divestiture and integration expenses 12.2 9.1
Nonrecurring gain on divestiture –– – – (151.9)
Consolidated Adjusted EBITDA $ 2,127.7 $ 1,600.3

Page 66 ♦ 2023 Annual Report