EX-99.2 4 g82379exv99w2.htm ADDITIONAL INFO ABOUT NON-GAAP FINANCIAL MEASURES Additional Info about Non-GAAP Financial Measures
 

Exhibit 99.2

Additional Information about Non-GAAP Financial Measures Available on the
Corporation’s Web site

From time to time management may publicly disclose certain “non-GAAP financial measures” in the course of our financial presentations, earnings releases, earnings conference calls, and otherwise. For these purposes, the SEC defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial positions, or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with GAAP in financial statements, and vice versa for measures that include amounts, or is subject to adjustments that effectively include amounts, that are excluded from the most directly comparable measure so calculated and presented. For these purposes, “GAAP” refers to generally accepted accounting principles in the United States.

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. 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.

One such non-GAAP financial measure we may present from time to time is Earnings before Interest, Income Taxes, Depreciation, Depletion and Amortization (“EBITDA”). EBITDA is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net earnings (loss), operating earnings (loss), cash flow provided by operating activities or other income or cash flow data prepared in accordance with GAAP. However, the Corporation’s management believes that EBITDA may provide additional information with respect to the Corporation’s ability to meet its future debt service, capital expenditures and working capital requirements. Because EBITDA excludes some, but not all, items that affect net earnings and may vary among companies, the EBITDA presented by Martin Marietta Materials may not be comparable to similarly titled measures of other companies. Martin Marietta Materials calculates EBITDA as:

      Net earnings (loss) before interest expense, income tax expense (benefit) and depreciation, depletion and amortization expense. EBITDA is also before the cumulative effect of a change in accounting principle, if applicable.

The following tables present Martin Marietta Materials’ calculations of EBITDA for the years 1994 to 2002, quarterly and year-to-date periods in 2002 and 2003 (all dollars in thousands):

 


 

Calculation of EBITDA

(amounts in thousands)

                                                                           
      2002   2001   2000   1999   1998   1997   1996   1995   1994
     
 
 
 
 
 
 
 
 
Net Earnings
  $ 86,305     $ 105,362     $ 112,027     $ 125,781     $ 115,613     $ 98,529     $ 78,628     $ 67,551     $ 53,704  
Cumulative Effect of Change in Accounting Principle
    11,510                                                  
Extraordinary Loss
                                                    4,641  
 
   
     
     
     
     
     
     
     
     
 
Earnings before Cumulative Effect of Change in Accounting Principle and Extraordinary Loss
    97,815       105,362       112,027       125,781       115,613       98,529       78,628       67,551       58,345  
Addback:
                                                                       
 
Interest Expense
    44,028       46,792       41,895       39,411       23,759       16,899       10,121       9,733       6,865  
 
Income Tax Expense
    46,455       53,077       56,794       68,532       58,529       52,683       40,325       36,240       32,075  
 
Depreciation, Depletion, and Amortization Expense
    138,696       154,635       136,373       124,754       98,765       79,720       61,210       55,674       42,828  
 
   
     
     
     
     
     
     
     
     
 
EBITDA
  $ 326,994     $ 359,866     $ 347,089     $ 358,478     $ 296,666     $ 247,831     $ 190,284     $ 169,198     $ 140,113  
 
   
     
     
     
     
     
     
     
     
 

 


 

Calculation of EBITDA

(amounts in thousands)

                                           
      Quarter Ended   Quarter Ended   Quarter Ended   Six Months Ended   Nine Months Ended
      March 31, 2002   June 30, 2002   September 30, 2002   June 30, 2002   September 30, 2002
     
 
 
 
 
Net Earnings (Loss)
  $ (22,059 )   $ 53,362     $ 38,925     $ 31,303     $ 70,228  
Cumulative Effect of Change in Accounting Principle
    11,510                   11,510       11,510  
 
   
     
     
     
     
 
Earnings (Loss) before Cumulative Effect of Change in Accounting Principle
    (10,549 )     53,362       38,925       42,813       81,738  
Addback:
                                       
 
Interest Expense
    11,133       11,213       11,179       22,346       33,525  
 
Income Tax Expense (Benefit)
    (5,314 )     31,001       18,326       25,687       44,013  
 
Depreciation, Depletion, and Amortization Expense
    33,939       34,390       34,646       68,329       102,975  
 
   
     
     
     
     
 
EBITDA
  $ 29,209     $ 129,966     $ 103,076     $ 159,175     $ 262,251  
 
   
     
     
     
     
 

 


 

Calculation of EBITDA

(amounts in thousands)

           
      Quarter Ended
      March 31, 2003
     
Net Earnings (Loss)
  $ (20,892 )
Cumulative Effect of Change in Accounting Principle
    6,874  
 
   
 
Earnings (Loss) before Cumulative Effect of Change in Accounting Principle
    (14,018 )
Addback:
       
 
Interest Expense
    10,121  
 
Income Tax Expense (Benefit)
    (6,579 )
 
Depreciation, Depletion, and Amortization Expense
    33,443  
 
   
 
EBITDA
  $ 22,967