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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

(Mark One)

þ

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


For the quarterly period ended September 30, 2021


OR

o

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 001-33841


VULCAN MATERIALS COMPANY
(Exact name of registrant as specified in its charter)


 New Jersey 
(State or other jurisdiction of incorporation)


20-8579133
(I.R.S. Employer Identification No.)


1200 Urban Center Drive, Birmingham, Alabama
(Address of principal executive offices)  


35242
(zip code)


(205) 298-3000
(Registrant's telephone number including area code)


Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:


Title of each class


Trading Symbol

Name of each exchange on
which registered

 Common Stock, $1 par value 

VMC

 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 þ No o

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 during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 þ


Accelerated filer o


Smaller reporting company o


Non-accelerated filer o


Emerging growth company o


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. o


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


Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:


                    Class                    

Shares outstanding
      at October 22, 2021      

Common Stock, $1 Par Value

132,705,028

 


9

VULCAN MATERIALS COMPANY

FORM 10-Q

QUARTER ENDED SEPTEMBER 30, 2021

Contents

Page

PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets

Condensed Consolidated Statements of Comprehensive Income

Condensed Consolidated Statements of Cash Flows

Notes to Condensed Consolidated Financial Statements

 2

 3

 4

 5

Item 2.

Management’s Discussion and Analysis of Financial

   Condition and Results of Operations

28

Item 3.

Quantitative and Qualitative Disclosures About

   Market Risk

49

Item 4.

Controls and Procedures

49

PART II

OTHER INFORMATION

Item 1.

Legal Proceedings

50

Item 1A.

Risk Factors

50

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

50

Item 4.

Mine Safety Disclosures

50

Item 6.

Exhibits

51

Signatures

52

Unless otherwise stated or the context otherwise requires, references in this report to “Vulcan,” the “Company,” “we,” “our,” or “us” refer to Vulcan Materials Company and its consolidated subsidiaries.

 

 


1


part I financial information

  ITEM 1

FINANCIAL STATEMENTS

VULCAN MATERIALS COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

September 30

December 31

September 30

in thousands

2021

2020

2020

Assets

Cash and cash equivalents

$       135,683 

$    1,197,068 

$    1,084,100 

Restricted cash

747 

945 

630 

Accounts and notes receivable

Accounts and notes receivable, gross

948,347 

558,848 

647,362 

Allowance for credit losses

(10,158)

(2,551)

(3,155)

Accounts and notes receivable, net

938,189 

556,297 

644,207 

Inventories

Finished products

411,872 

378,389 

384,575 

Raw materials

58,223 

33,780 

34,562 

Products in process

3,815 

4,555 

5,098 

Operating supplies and other

38,320 

31,861 

31,226 

Inventories

512,230 

448,585 

455,461 

Other current assets

131,567 

74,270 

80,935 

Total current assets

1,718,416 

2,277,165 

2,265,333 

Investments and long-term receivables

34,108 

34,301 

41,778 

Property, plant & equipment

Property, plant & equipment, cost

10,362,862 

9,102,086 

8,958,342 

Allowances for depreciation, depletion & amortization

(4,815,913)

(4,676,087)

(4,614,543)

Property, plant & equipment, net

5,546,949 

4,425,999 

4,343,799 

Operating lease right-of-use assets, net

656,881 

423,128 

431,227 

Goodwill

3,674,763 

3,172,112 

3,172,112 

Other intangible assets, net

1,819,778 

1,123,544 

1,107,091 

Other noncurrent assets

237,107 

230,656 

229,193 

Total assets

$  13,688,002 

$  11,686,905 

$  11,590,533 

Liabilities

Current maturities of long-term debt

12,228 

515,435 

509,435 

Trade payables and accruals

410,340 

273,080 

263,296 

Other current liabilities

454,125 

259,368 

297,162 

Total current liabilities

876,693 

1,047,883 

1,069,893 

Long-term debt

3,874,116 

2,772,240 

2,777,072 

Deferred income taxes, net

1,053,415 

706,050 

685,520 

Deferred revenue

168,138 

174,045 

174,488 

Noncurrent operating lease liabilities

622,275 

399,582 

407,336 

Other noncurrent liabilities

644,226 

559,775 

547,872 

Total liabilities

$    7,238,863 

$    5,659,575 

$    5,662,181 

Other commitments and contingencies (Note 8)

 

 

 

Equity

Common stock, $1 par value, Authorized 480,000 shares,

Outstanding 132,704, 132,516 and 132,454 shares, respectively

132,704 

132,516 

132,454 

Capital in excess of par value

2,810,257 

2,802,012 

2,797,222 

Retained earnings

3,659,657 

3,274,107 

3,204,671 

Accumulated other comprehensive loss

(176,520)

(181,305)

(205,995)

Total shareholders' equity

6,426,098 

6,027,330 

5,928,352 

Noncontrolling interest

23,041 

0 

0 

Total equity

$    6,449,139 

$    6,027,330 

$    5,928,352 

Total liabilities and equity

$  13,688,002 

$  11,686,905 

$  11,590,533 

The accompanying Notes to the Condensed Consolidated Financial Statements are an integral part of these statements.


2


VULCAN MATERIALS COMPANY AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME

Three Months Ended

Nine Months Ended

Unaudited

September 30

September 30

in thousands, except per share data

2021

2020

2021

2020

Total revenues

$    1,516,506 

$    1,309,890 

$    3,945,897 

$    3,681,707 

Cost of revenues

1,122,445 

929,392 

2,924,206 

2,702,967 

Gross profit

394,061 

380,498 

1,021,691 

978,740 

Selling, administrative and general expenses

103,792 

83,511 

293,052 

261,146 

Gain on sale of property, plant & equipment

and businesses

2,940 

1,576 

120,316 

2,317 

Other operating expense, net

(30,843)

(10,459)

(49,541)

(20,610)

Operating earnings

262,366 

288,104 

799,414 

699,301 

Other nonoperating income, net

3,152 

5,787 

17,288 

3,818 

Interest expense, net

36,776 

35,782 

111,589 

100,509 

Earnings from continuing operations

before income taxes

228,742 

258,109 

705,113 

602,610 

Income tax expense

51,770 

56,984 

169,692 

130,530 

Earnings from continuing operations

176,972 

201,125 

535,421 

472,080 

Loss on discontinued operations, net of tax

(212)

(1,337)

(2,702)

(2,118)

Net earnings

176,760 

199,788 

532,719 

469,962 

Loss attributable to noncontrolling interest

146 

0 

146 

0 

Net earnings attributable to Vulcan

$       176,906 

$       199,788 

$       532,865 

$       469,962 

Other comprehensive income (loss), net of tax

Deferred loss on interest rate derivative

0 

0 

0 

(14,679)

Amortization of prior interest rate derivative loss

364 

350 

1,080 

1,338 

Amortization of actuarial loss and prior service

cost for benefit plans

1,235 

1,695 

3,705 

5,085 

Other comprehensive income (loss)

1,599 

2,045 

4,785 

(8,256)

Comprehensive income

178,359 

201,833 

537,504 

461,706 

Comprehensive loss attributable to

noncontrolling interest

146 

0 

146 

0 

Comprehensive income attributable to Vulcan

$       178,505 

$       201,833 

$       537,650 

$       461,706 

Basic earnings (loss) per share attributable to Vulcan

Continuing operations

$             1.33 

$             1.52 

$             4.03 

$             3.56 

Discontinued operations

0.00 

(0.01)

(0.02)

(0.01)

Net earnings

$             1.33 

$             1.51 

$             4.01 

$             3.55 

Diluted earnings (loss) per share attributable to Vulcan