Page 172 - Martin Marietta - 2024 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
Discontinued Operations

Since October 1, 2021, and through their respective divestiture dates, the financial results of the California cement businesses and
certain California ready mixed concrete operations acquired as part of the Lehigh West Region acquisition were reported as
discontinued operations. The Company sold the Tehachapi,California cement plant on October 31, 2023 and the Stockton,
California cement import terminal on May 3, 2023. Additionally, the Redding cement plant, related cement terminals and 14 ready
mixed concrete plants were sold in June 2022. The collective businesses generated a loss of $30.9 million in 2023 and earnings of
$10.5 million in 2022, net of expenses associated with the divestitures and income tax (benefit) expense.

Net Earnings and Earnings Per Diluted Share From Continuing Operations Attributable to Martin Marietta

Net earningsfrom continuing operations attributable to Martin Marietta were $1.20 billion, or $19.32 per diluted share, for 2023
and $856.3 million, or $13.70 per diluted share, for 2022.

Liquidity and Cash Flows

Operating Activities
Generally, the Company’s primary source of liquidity is cash generated from operating activities. Operating cash flow is
substantially derived from consolidated net earnings, before deducting depreciation, depletion and amortization, and offset by
working capital requirements.Cash provided by operations was $1.53 billion in 2023 and $991.2 million in 2022. The primary driver
of the increase in cash provided by operations in 2023 was higher earnings and improved working capital utilization.

Investing Activities
Net cash provided by investing activities was $458.7 million in 2023 and net cash used for investing activities was $483.8 million in
2022. The 2023 amount reflected $700.0 million in proceeds from the sale of restricted investments, which the Company had
invested in during 2022 and which were used to repay discharged debt and related interest in 2023 (see Capital Structure and
Resources section).

Cash paid for property, plant and equipment additions was $650.3 million in 2023 and $481.8 million in 2022.
Pretax proceeds from divestitures and sales of assets were $426.5 million in 2023 and $687.1 million in 2022.

Financing Activities
Net cash used for financing activities was $1.06 billion in 2023 and $407.5 million in 2022. The 2023 amount reflects using $700.0
million to repay discharged debt and related interest.

Page 70 ♦ 2023 Annual Report