10-Q 1 mlm-20240930.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-12744

 

MARTIN MARIETTA MATERIALS, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

North Carolina

56-1848578

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

4123 Parklake Avenue, Raleigh, NC

27612

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (919) 781-4550

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock (Par Value $0.01)

 

MLM

 

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date.

 

Class

Outstanding as of October 25, 2024

Common Stock, $0.01 par value

61,118,057

 

 


 

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

FORM 10-Q

For the Quarter Ended September 30, 2024

 

Page

Part I. Financial Information:

 

 

 

 

 

Item 1. Financial Statements

 

 

 

 

 

Consolidated Balance Sheets – September 30, 2024 and December 31, 2023

 

3

 

 

 

Consolidated Statements of Earnings and Comprehensive Earnings –  Three and Nine Months Ended September 30, 2024 and 2023

 

4

 

 

 

Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2024 and 2023

 

5

 

 

 

Consolidated Statements of Total Equity –  Three and Nine Months Ended September 30, 2024 and 2023

 

6

 

 

 

Notes to Consolidated Financial Statements

 

7

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

25

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

37

 

 

 

Item 4. Controls and Procedures

 

37

 

 

 

Part II. Other Information:

 

 

 

 

 

Item 1. Legal Proceedings

 

38

 

 

 

Item 1A. Risk Factors

 

38

 

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

38

 

 

 

Item 4. Mine Safety Disclosures

 

38

 

 

 

Item 5. Other Information

 

38

 

 

 

Item 6. Exhibits

 

39

 

 

 

Signatures

 

40

 

 

 

 

 

Page 2 of 40


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

(UNAUDITED) CONSOLIDATED BALANCE SHEETS

 

 

 

September 30,

 

 

December 31,

 

 

 

 

2024

 

 

2023

 

 

 

 

(In Millions, Except Share and Par Value Data)

 

 

ASSETS

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

52

 

 

$

1,272

 

 

Restricted cash

 

 

 

 

 

10

 

 

Accounts receivable, net

 

 

916

 

 

 

753

 

 

Inventories, net

 

 

1,089

 

 

 

989

 

 

Current assets held for sale

 

 

10

 

 

 

807

 

 

Deposits

 

 

132

 

 

 

 

 

Other current assets

 

 

120

 

 

 

88

 

 

Total Current Assets

 

 

2,319

 

 

 

3,919

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

13,588

 

 

 

10,708

 

 

Allowances for depreciation, depletion and amortization

 

 

(4,874

)

 

 

(4,522

)

 

Net property, plant and equipment

 

 

8,714

 

 

 

6,186

 

 

Goodwill

 

 

3,768

 

 

 

3,389

 

 

Other intangibles, net

 

 

705

 

 

 

698

 

 

Operating lease right-of-use assets, net

 

 

376

 

 

 

372

 

 

Other noncurrent assets

 

 

587

 

 

 

561

 

 

Total Assets

 

$

16,469

 

 

$

15,125

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

315

 

 

$

343

 

 

Accrued salaries, benefits and payroll taxes

 

 

67

 

 

 

102

 

 

Accrued income taxes

 

 

231

 

 

 

6

 

 

Accrued other taxes

 

 

61

 

 

 

47

 

 

Accrued interest

 

 

36

 

 

 

41

 

 

Current maturities of long-term debt

 

 

95

 

 

 

400

 

 

Current operating lease liabilities

 

 

54

 

 

 

53

 

 

Other current liabilities

 

 

134

 

 

 

178

 

 

Total Current Liabilities

 

 

993

 

 

 

1,170

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

3,948

 

 

 

3,946

 

 

Deferred income taxes, net

 

 

1,127

 

 

 

874

 

 

Noncurrent operating lease liabilities

 

 

337

 

 

 

327

 

 

Noncurrent asset retirement obligations

 

 

409

 

 

 

383

 

 

Other noncurrent liabilities

 

 

484

 

 

 

389

 

 

Total Liabilities

 

 

7,298

 

 

 

7,089

 

 

 

 

 

 

 

 

 

 

Commitments and contingent liabilities - Note 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

Common stock, par value $0.01 per share (61,118,057 shares and 61,821,421 shares
   outstanding at September 30, 2024 and December 31, 2023, respectively)

 

 

1

 

 

 

1

 

 

Preferred stock, par value $0.01 per share

 

 

 

 

 

 

 

Additional paid-in capital

 

 

3,544

 

 

 

3,519

 

 

Accumulated other comprehensive loss

 

 

(46

)

 

 

(49

)

 

Retained earnings

 

 

5,670

 

 

 

4,563

 

 

Total Shareholders' Equity

 

 

9,169

 

 

 

8,034

 

 

Noncontrolling interests

 

 

2

 

 

 

2

 

 

Total Equity

 

 

9,171

 

 

 

8,036

 

 

Total Liabilities and Equity

 

$

16,469

 

 

$

15,125

 

 

 

See accompanying notes to the consolidated financial statements.

 

Page 3 of 40


 

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

(UNAUDITED) CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(In Millions, Except Per Share Data)

 

Revenues

 

$

1,889

 

 

$

1,994

 

 

$

4,905

 

 

$

5,169

 

Cost of revenues

 

 

1,290

 

 

 

1,318

 

 

 

3,517

 

 

 

3,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

599

 

 

 

676

 

 

 

1,388

 

 

 

1,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

105

 

 

 

108

 

 

 

341

 

 

 

324

 

Acquisition, divestiture and integration expenses

 

 

4

 

 

 

3

 

 

 

44

 

 

 

5

 

Other operating expense (income), net

 

 

1

 

 

 

(2

)

 

 

(1,305

)

 

 

(16

)

Earnings from Operations

 

 

489

 

 

 

567

 

 

 

2,308

 

 

 

1,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

38

 

 

 

41

 

 

 

119

 

 

 

125

 

Other nonoperating income, net

 

 

(7

)

 

 

(14

)

 

 

(54

)

 

 

(49

)

Earnings from continuing operations before income
   tax expense

 

 

458

 

 

 

540

 

 

 

2,243

 

 

 

1,150

 

Income tax expense

 

 

95

 

 

 

110

 

 

 

541

 

 

 

237

 

Earnings from continuing operations

 

 

363

 

 

 

430

 

 

 

1,702

 

 

 

913

 

Loss from discontinued operations, net of
   income tax benefit

 

 

 

 

 

(13

)

 

 

 

 

 

(26

)

Consolidated net earnings

 

 

363

 

 

 

417

 

 

 

1,702

 

 

 

887

 

Less: Net earnings attributable to noncontrolling interests

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Net Earnings Attributable to Martin Marietta

 

$

363

 

 

$

417

 

 

$

1,701

 

 

$

886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Comprehensive Earnings (See Note 1):

 

 

 

 

 

 

 

 

 

 

 

 

Earnings attributable to Martin Marietta

 

$

365

 

 

$

417

 

 

$

1,704

 

 

$

889

 

Earnings attributable to noncontrolling interests

 

 

 

 

 

 

 

 

1

 

 

 

1

 

 

$

365

 

 

$

417

 

 

$

1,705

 

 

$

890

 

Net Earnings (Loss) Attributable to Martin Marietta

 

 

 

 

 

 

 

 

 

 

 

 

Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share from continuing operations
   attributable to common shareholders

 

$

5.93

 

 

$

6.96

 

 

$

27.68

 

 

$

14.73

 

Basic loss per share from discontinued operations
   attributable to common shareholders

 

 

 

 

 

(0.22

)

 

 

 

 

 

(0.42

)

 

 

$

5.93

 

 

$

6.74

 

 

$

27.68

 

 

$

14.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations
   attributable to common shareholders

 

$

5.91

 

 

$

6.94

 

 

$

27.60

 

 

$

14.69

 

Diluted loss per share from discontinued
   operations attributable to common shareholders

 

 

 

 

 

(0.22

)

 

 

 

 

 

(0.42

)

 

 

$

5.91

 

 

$

6.72

 

 

$

27.60

 

 

$

14.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

61.1

 

 

 

61.8

 

 

 

61.5

 

 

 

61.9

 

Diluted

 

 

61.3

 

 

 

62.0

 

 

 

61.6

 

 

 

62.1

 

 

See accompanying notes to the consolidated financial statements.

 

Page 4 of 40


 

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

(UNAUDITED) CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2024

 

 

2023

 

 

 

(Dollars in Millions)

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Consolidated net earnings

 

$

1,702

 

 

$

887

 

Adjustments to reconcile consolidated net earnings to net cash
   provided by operating activities:

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

424

 

 

 

385

 

Stock-based compensation expense

 

 

48

 

 

 

39

 

(Gain) Loss on divestitures and sales of assets

 

 

(1,341

)

 

 

5

 

Deferred income taxes, net

 

 

(79

)

 

 

(2

)

Noncash asset and portfolio rationalization charge

 

 

50

 

 

 

 

Other items, net

 

 

(9

)

 

 

(8

)

Changes in operating assets and liabilities, net of effects of
   acquisitions and divestitures:

 

 

 

 

 

 

Accounts receivable, net

 

 

(153

)

 

 

(264

)

Inventories, net

 

 

(48

)

 

 

(130

)

Accounts payable

 

 

55

 

 

 

45

 

Other assets and liabilities, net

 

 

124

 

 

 

16

 

Net Cash Provided by Operating Activities

 

 

773

 

 

 

973

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

(622

)

 

 

(464

)

Acquisitions, net of cash acquired

 

 

(2,538

)

 

 

 

Proceeds from divestitures and sales of assets

 

 

2,128

 

 

 

98

 

Proceeds from sale of restricted investments related to
   discharge of long-term debt

 

 

 

 

 

700

 

Other investing activities, net

 

 

(32

)

 

 

(8

)

Net Cash (Used for) Provided by Investing Activities

 

 

(1,064

)

 

 

326

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

Borrowings of debt

 

 

490

 

 

 

 

Repayments of debt

 

 

(795

)

 

 

(700

)

Payments on finance lease obligations

 

 

(14

)

 

 

(13

)

Dividends paid

 

 

(141

)

 

 

(128

)

Repurchases of common stock

 

 

(450

)

 

 

(150

)

Distributions to owners of noncontrolling interest

 

 

(1

)

 

 

(1

)

Proceeds from exercise of stock options

 

 

 

 

 

1

 

Shares withheld for employees’ income tax obligations

 

 

(28

)

 

 

(19

)

Net Cash Used for Financing Activities

 

 

(939

)

 

 

(1,010

)

Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash

 

 

(1,230

)

 

 

289

 

Cash, Cash Equivalents and Restricted Cash, beginning of period

 

 

1,282

 

 

 

359

 

Cash, Cash Equivalents and Restricted Cash, end of period

 

$

52

 

 

$

648

 

 

See accompanying notes to the consolidated financial statements.

 

Page 5 of 40


 

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

(UNAUDITED) CONSOLIDATED STATEMENTS OF TOTAL EQUITY

 

(In Millions, Except Share and Per Share Data)

 

Shares of Common Stock

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Accumulated
Other Comprehensive
Loss

 

 

Retained Earnings

 

 

Total Shareholders' Equity

 

 

Noncontrolling Interests

 

 

Total Equity

 

Balance at June 30, 2024

 

 

61,117,053

 

 

$

1

 

 

$

3,529

 

 

$

(48

)

 

$

5,356

 

 

$

8,838

 

 

$

2

 

 

$

8,840

 

Consolidated net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

363

 

 

 

363

 

 

 

 

 

 

363

 

Other comprehensive earnings,
   net of tax

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

Dividends declared ($0.79 per common share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(49

)

 

 

(49

)

 

 

 

 

 

(49

)

Issuances of common stock for
   stock award plans

 

 

1,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation
   expense

 

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

 

15

 

 

 

 

 

 

15

 

Balance at September 30, 2024

 

 

61,118,057

 

 

$

1

 

 

$

3,544

 

 

$

(46

)

 

$

5,670

 

 

$

9,169

 

 

$

2

 

 

$

9,171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2023

 

 

61,821,421

 

 

$

1

 

 

$

3,519

 

 

$

(49

)

 

$

4,563

 

 

$

8,034

 

 

$

2

 

 

$

8,036

 

Consolidated net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,701

 

 

 

1,701

 

 

 

1

 

 

 

1,702

 

Other comprehensive earnings,
   net of tax

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

Dividends declared ($2.27 per common share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(140

)

 

 

(140

)

 

 

 

 

 

(140

)

Issuances of common stock for
   stock award plans

 

 

82,394

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

5

 

Shares withheld for employees'
   income tax obligations

 

 

 

 

 

 

 

 

(28

)

 

 

 

 

 

 

 

 

(28

)

 

 

 

 

 

(28

)

Repurchases of common stock

 

 

(785,758

)

 

 

 

 

 

 

 

 

 

 

 

(454

)

 

 

(454

)

 

 

 

 

 

(454

)

Stock-based compensation
   expense

 

 

 

 

 

 

 

 

48

 

 

 

 

 

 

 

 

 

48

 

 

 

 

 

 

48

 

Distributions to owners of
   noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

Balance at September 30, 2024

 

 

61,118,057

 

 

$

1

 

 

$

3,544

 

 

$

(46

)

 

$

5,670

 

 

$

9,169

 

 

$

2

 

 

$

9,171

 

 

 

 

 

 

(In Millions, Except Share And Per Share Data)

 

Shares of Common Stock

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Accumulated
Other Comprehensive
Loss

 

 

Retained Earnings

 

 

Total Shareholders' Equity

 

 

Noncontrolling Interests

 

 

Total Equity

 

Balance at June 30, 2023

 

 

61,803,396

 

 

$

1

 

 

$

3,501

 

 

$

(35

)

 

$

3,955

 

 

$

7,422

 

 

$

2

 

 

$

7,424

 

Consolidated net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

417

 

 

 

417

 

 

 

 

 

 

417

 

Dividends declared ($0.74 per common share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(46

)

 

 

(46

)

 

 

 

 

 

(46

)

Issuances of common stock for stock
   award plans

 

 

3,765

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld for employees'
   income tax obligations

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

11

 

Balance at September 30, 2023

 

 

61,807,161

 

 

$

1

 

 

$

3,511

 

 

$

(35

)

 

$

4,326

 

 

$

7,803

 

 

$

2

 

 

$

7,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2022

 

 

62,102,353

 

 

$

1

 

 

$

3,489

 

 

$

(38

)

 

$

3,719

 

 

$

7,171

 

$

2

 

$

7,173

 

Consolidated net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

886

 

 

 

886

 

 

 

1

 

 

 

887

 

Other comprehensive earnings,
   net of tax

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3