Page 79 - Proxy Statement - 2020

Appendix B

NON-GAAP MEASURES

Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them
with an alternative method for assessing our financial condition and operating results, and are often requested by investors. These
measures are not in accordance with, or a substitute for, GAAP and may be different from or inconsistent with non-GAAP financial
measures used by other companies. Adjusted EBITDA is an indicator used by the Company and investors to evaluate the Company’s
operating performance period to period.

EBITDA is a widely accepted financial indicator of a company’s ability to service and/or incur indebtedness. EBITDA is not defined by
GAAP and, as such, should not be construed as an alternative to earnings from operations, net earnings or operating cash flow.
Consolidated adjusted EBITDA excludes the impact of selling acquired inventory after its markup to fair value as part of acquisition
accounting; acquisition-related expenses, net; and asset and portfolio rationalization charge.

The following presents a reconciliation of net earnings attributable to Martin Marietta to consolidated adjusted EBITDA for the years
ended December 31, 2019, 2018, and 2010.
Consolidated adjusted EBITDA for year ended December 31:

(dollars in millions) 2019 2018 2010
Net Earnings Attributable to Martin Marietta $ 611.9 $ 470.0 $ 97.0
Add back (deduct):
Interest expense 128.9 137.1 68.5
Income tax expense (benefit) for controlling interests 136.3 105.6 29.3
Depreciation, depletion and amortization expense and earnings/loss from nonconsolidated equity affiliates 377.4 328.4 182.3
Impact of selling acquired inventory after markup to fair value — 18.7 —

Acquisition-related expenses, net — 13.5 —
Asset and portfolio rationalization charges — 18.8 —
Consolidated Adjusted EBITDA $1,254.5 $1,092.1 $377.1

Consolidated Total Revenues $4,739.1 $4,244.3
Adjusted EBITDA Margin 26.5% 25.7%

2020 PROXY STATEMENT B-1