SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
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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
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification Number) |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code
Former name, former address and former fiscal year, if changes since last report: None
Securities registered pursuant to Section 12(b) of the Act:
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Title of Each Class |
Trading Symbol(s) |
Name of each exchange on |
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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.
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).
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.
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Large accelerated filer |
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☑ |
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Accelerated filer |
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☐ |
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Non-accelerated filer |
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☐ |
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Smaller reporting company |
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Emerging growth company |
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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 Securities Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date.
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Class |
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Outstanding as of April 29, 2020 |
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Common Stock, $0.01 par value |
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MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
Page 2 of 41
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
(UNAUDITED) CONSOLIDATED BALANCE SHEETS
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March 31, |
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December 31, |
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2020 |
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2019 |
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(Dollars in Millions, Except Par Value Data) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Accounts receivable, net |
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Inventories, net |
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Other current assets |
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Total Current Assets |
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Property, plant and equipment |
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Allowances for depreciation, depletion and amortization |
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Net property, plant and equipment |
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Goodwill |
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Other intangibles, net |
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Operating lease right-of-use assets, net |
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Other noncurrent assets |
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Total Assets |
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$ |
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$ |
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LIABILITIES AND EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
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$ |
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Accrued salaries, benefits and payroll taxes |
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Accrued insurance and other taxes |
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Current maturities of long-term debt and short-term facilities |
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Operating lease liabilities |
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Other current liabilities |
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Total Current Liabilities |
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Long-term debt |
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Deferred income taxes, net |
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Noncurrent operating lease liabilities |
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Other noncurrent liabilities |
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Total Liabilities |
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Equity: |
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Common stock, par value $ |
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Preferred stock, par value $ |
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Additional paid-in capital |
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Accumulated other comprehensive loss |
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Retained earnings |
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Total Shareholders' Equity |
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Noncontrolling interests |
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Total Equity |
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Total Liabilities and Equity |
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$ |
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$ |
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See accompanying notes to the consolidated financial statements.
Page 3 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
(UNAUDITED) CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS
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Three Months Ended |
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March 31, |
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2020 |
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2019 |
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(In Millions, Except Per Share Data) |
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Products and services revenues |
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$ |
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$ |
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Freight revenues |
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Total Revenues |
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Cost of revenues - products and services |
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Cost of revenues - freight |
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Total Cost of Revenues |
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Gross Profit |
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Selling, general & administrative expenses |
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Acquisition-related expenses |
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Other operating expenses and (income), net |
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Earnings from Operations |
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Interest expense |
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Other nonoperating expenses and (income), net |
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Earnings before income tax expense (benefit) |
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Income tax expense (benefit) |
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Consolidated net earnings |
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Less: Net earnings attributable to noncontrolling interests |
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— |
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— |
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Net Earnings Attributable to Martin Marietta Materials, Inc. |
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$ |
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$ |
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Consolidated Comprehensive Earnings: |
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Earnings attributable to Martin Marietta Materials, Inc. |
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$ |
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$ |
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Earnings attributable to noncontrolling interests |
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— |
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— |
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$ |
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$ |
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Net Earnings Attributable to Martin Marietta Materials, Inc. |
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Per Common Share: |
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Basic attributable to common shareholders |
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$ |
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$ |
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Diluted attributable to common shareholders |
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$ |
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$ |
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Weighted-Average Common Shares Outstanding: |
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Basic |
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Diluted |
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See accompanying notes to the consolidated financial statements.
Page 4 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
(UNAUDITED) CONSOLIDATED STATEMENTS OF CASH FLOWS
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Three Months Ended |
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March 31, |
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2020 |
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2019 |
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(Dollars in Millions) |
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Cash Flows from Operating Activities: |
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Consolidated net earnings |
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$ |
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$ |
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Adjustments to reconcile consolidated net earnings to net cash provided by operating activities: |
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Depreciation, depletion and amortization |
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Stock-based compensation expense |
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Gain on divestitures and sales of assets |
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( |
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Deferred income taxes |
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Other items, net |
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( |
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Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: |
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Accounts receivable, net |
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( |
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Inventories, net |
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( |
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Accounts payable |
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Other assets and liabilities, net |
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( |
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( |
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Net Cash Provided by Operating Activities |
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Cash Flows from Investing Activities: |
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Additions to property, plant and equipment |
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( |
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( |
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Proceeds from divestitures and sales of assets |
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Investments in life insurance contracts, net |
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( |
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Other investing activities, net |
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( |
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( |
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Net Cash Used for Investing Activities |
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( |
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( |
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Cash Flows from Financing Activities: |
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Borrowings of debt |
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Repayments of debt |
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( |
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( |
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Payments on financing leases |
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( |
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( |
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Debt issuance costs |
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( |
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— |
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Repurchases of common stock |
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( |
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— |
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Dividends paid |
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( |
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( |
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Proceeds from exercise of stock options |
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Shares withheld for employees' income tax obligations |
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( |
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( |
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Net Cash Provided by Financing Activities |
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Net Increase (Decrease) in Cash and Cash Equivalents |
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Cash and Cash Equivalents, beginning of period |
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Cash and Cash Equivalents, end of period |
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$ |
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$ |
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See accompanying notes to the consolidated financial statements.
Page 5 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
(UNAUDITED) CONSOLIDATED STATEMENTS OF TOTAL EQUITY
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(In Millions, Except Per Share Data) |
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Shares of Common Stock |
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Common Stock |
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Additional Paid-in Capital |
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Accumulated Other Comprehensive Loss |
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Retained Earnings |
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Total Shareholders' Equity |
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Noncontrolling Interests |
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Total Equity |
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Balance at December 31, 2018 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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Consolidated net earnings |
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— |
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— |
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— |
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— |
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— |
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Other comprehensive earnings, net of tax |
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— |
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— |
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— |
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— |
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— |
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Dividends declared ($ |
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— |
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— |
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— |
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— |
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( |
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( |
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— |
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Issuances of common stock for stock award plans |
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— |
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— |
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— |
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— |
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Shares withheld for employees' income tax obligations |
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— |
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— |
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( |
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— |
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— |
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( |
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— |
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( |
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Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Balance at March 31, 2019 |
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$ |
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$ |
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$ |
( |
) |
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$ |
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$ |
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$ |
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$ |
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Balance at December 31, 2019 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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Consolidated net earnings |
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— |
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— |
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— |
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— |
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— |
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Other comprehensive earnings, net of tax |
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— |
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— |
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— |
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— |
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— |
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Dividends declared ($ |
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— |
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— |
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— |
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— |
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( |
) |
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( |
) |
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— |
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( |
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Issuances of common stock for stock award plans |
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— |
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— |
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— |
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— |
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— |
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Shares withheld for employees' income tax obligations |
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— |
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— |
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( |
) |
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— |
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— |
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( |
) |
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— |
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( |
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Repurchases of common stock |
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( |
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— |
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( |
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( |
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— |
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( |
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Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Balance at March 31, 2020 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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See accompanying notes to the consolidated financial statements.
Page 6 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
1. |
Significant Accounting Policies |
Organization
Martin Marietta Materials, Inc. (the Company or Martin Marietta) is a natural resource-based building materials company. The Company supplies aggregates (crushed stone, sand and gravel) through its network of approximately
Effective January 1, 2020, the Company moved the management of its one quarry in the state of Washington from the Mid-America Group to the West Group, resulting in an immaterial change to its reportable segments. The Company’s Building Materials business includes
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BUILDING MATERIALS BUSINESS |
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Reportable Segments |
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Mid-America Group |
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Southeast Group |
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West Group |
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Operating Locations |
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Indiana, Iowa, northern Kansas, Kentucky, Maryland, Minnesota, Missouri, eastern Nebraska, North Carolina, Ohio, Pennsylvania, |
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Alabama, Florida, Georgia, southwestern South Carolina, Tennessee, Nova Scotia and The Bahamas |
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Arkansas, Colorado, southern Kansas, Louisiana, western Nebraska, Nevada, Oklahoma, Texas, Utah, Wyoming
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Product Lines |
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Aggregates |
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Aggregates |
|
Aggregates, Cement, Ready Mixed Concrete, Asphalt and Paving |
The Company has a Magnesia Specialties business with manufacturing facilities in Manistee, Michigan, and Woodville, Ohio. The Magnesia Specialties business produces magnesia-based chemicals products used in industrial, agricultural and environmental applications, and dolomitic lime sold primarily to customers in the steel and mining industries.
Basis of Presentation
The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and in Article 10 of Regulation S-X. The Company has continued to follow the accounting policies set forth in the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, the interim consolidated financial information provided herein reflects all adjustments, consisting of normal recurring accruals, necessary for a fair statement of the results of operations, financial position and cash flows for the interim periods. The consolidated results of operations for the three months ended March 31, 2020 are not indicative of the results expected for other interim periods or the full year. The consolidated balance
Page 7 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
sheet at December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
The preparation of the Company’s consolidated financial statements requires management to make certain estimates and assumptions about future events. As future events and their effects, including the impact of the coronavirus (COVID-19) pandemic and the related societal response, cannot be fully determined with precision, actual results could differ significantly from estimates. Changes in estimates are reflected in the consolidated financial statements in the period in which the change in estimate occurs.
New Accounting Pronouncement
Credit Losses
Effective January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (ASU 2016-13), which includes a current expected credit loss (CECL) model that requires an entity to estimate credit losses expected over the life of an exposure or pool of exposures based on historical information, current information and reasonable and supportable forecasts at the time the asset is recognized and is remeasured at each reporting period. ASU 2016-13 primarily relates to the Company’s receivables, but the scope also includes retainage and contract assets related to its paving business. The adoption of ASU 2016-13 did not have a material impact on the Company’s financial position or statement of earnings and comprehensive earnings. The Company amended its allowance for credit losses policy, which follows, for the implementation of ASU 2016-13.
The Company records an allowance for credit losses, which includes a provision for probable losses based on historical write-offs and a specific reserve for accounts deemed at risk. The allowance is the Company’s estimate for receivables as of the balance sheet date that ultimately will not be collected. Any changes in the allowance are reflected in earnings in the period in which the change occurs. The Company writes-off accounts receivable when it becomes probable, based upon customer facts and circumstances, that such amounts will not be collected.
Consolidated Comprehensive Earnings/Loss and Accumulated Other Comprehensive Loss
Consolidated comprehensive earnings/loss and accumulated other comprehensive loss consist of consolidated net earnings or loss; adjustments for the funded status of pension and postretirement benefit plans; and foreign currency translation adjustments; and are presented in the Company’s consolidated statements of earnings and comprehensive earnings.
Comprehensive earnings attributable to Martin Marietta is as follows:
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(Dollars in Millions) |
|
|||||
|
Net earnings attributable to Martin Marietta Materials, Inc. |
|
$ |
|
|
|
$ |
|
|
|
Other comprehensive earnings, net of tax |
|
|
|
|
|
|
|
|
|
Comprehensive earnings attributable to Martin Marietta Materials, Inc. |
|
$ |
|
|
|
$ |
|
|
Page 8 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Changes in accumulated other comprehensive loss, net of tax, are as follows:
|
|
|
(Dollars in Millions) |
|
|||||||||
|
|
|
Pension and Postretirement Benefit Plans |
|
|
Foreign Currency |
|
|
Accumulated Other Comprehensive Loss |
|
|||
|
|
|
Three Months Ended March 31, 2020 |
|
|||||||||
|
Balance at beginning of period |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
Other comprehensive loss before reclassifications, net of tax |
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
Amounts reclassified from accumulated other comprehensive loss, net of tax |
|
|
|
|
|
|
— |
|
|
|
|
|
|
Other comprehensive earnings (loss), net of tax |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
Balance at end of period |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
|||||||||
|
Balance at beginning of period |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
Other comprehensive earnings before reclassifications, net of tax |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Amounts reclassified from accumulated other comprehensive loss, net of tax |
|
|
|
|
|
|
— |
|
|
|
|
|
|
Other comprehensive earnings, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of period |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in net noncurrent deferred tax assets recorded in accumulated other comprehensive loss are as follows:
|
|
|
(Dollars in Millions) |
|
|
|
|
|
Pension and Postretirement Benefit Plans |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020 |
|
|
|
Balance at beginning of period |
|
$ |
|
|
|
Tax effect of other comprehensive earnings |
|
|
( |
) |
|
Balance at end of period |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
|
|
Balance at beginning of period |
|
$ |
|
|
|
Tax effect of other comprehensive earnings |
|
|
( |
) |
|
Balance at end of period |
|
$ |
|
|
|
|
|
|
|
|
Page 9 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Reclassifications out of accumulated other comprehensive loss are as follows:
|
|
|
Three Months Ended |
|
|
Affected line items in the consolidated |
|||||
|
|
|
March 31, |
|
|
statements of earnings and |
|||||
|
|
|
2020 |
|
|
2019 |
|
|
comprehensive earnings |
||
|
|
|
(Dollars in Millions) |
|
|||||||
|
Pension and postretirement benefit plans |
|
|
|
|
|
|
|
|
|
|
|
Amortization of: |
|
|
|
|
|
|
|
|
|
|
|
Prior service credit |
|
$ |
— |
|
|
$ |
( |
) |
|
|
|
Actuarial loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other nonoperating expenses and (income), net |
|
Tax benefit |
|
|
( |
) |
|
|
( |
) |
|
Income tax expense (benefit) |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
Earnings per Common Share
The numerator for basic and diluted earnings per common share is net earnings attributable to Martin Marietta Materials, Inc. reduced by dividends and undistributed earnings attributable to certain of the Company’s stock-based compensation. If there is a net loss, no amount of the undistributed loss is attributed to unvested participating securities. The denominator for basic earnings per common share is the weighted-average number of common shares outstanding during the period. Diluted earnings per common share are computed assuming that the weighted-average number of common shares is increased by the conversion, using the treasury stock method, of awards to be issued to employees and nonemployee members of the Company’s Board of Directors under certain stock-based compensation arrangements if the conversion is dilutive. For the three months ended March 31, 2020 and 2019, the diluted per-share computations reflect the number of common shares outstanding to include the number of additional shares that would have been outstanding if the potentially dilutive common shares had been issued.
The following table reconciles the numerator and denominator for basic and diluted earnings per common share:
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(In Millions) |
|
|||||
|
Net earnings attributable to Martin Marietta Materials, Inc. |
|
$ |
|
|
|
$ |
|
|
|
Less: Distributed and undistributed earnings attributable to unvested awards |
|
|
— |
|
|
|
|
|
|
Basic and diluted net earnings available to common shareholders attributable to Martin Marietta Materials, Inc. |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
Effect of dilutive employee and director awards |
|
|
|
|
|
|
|
|
|
Diluted weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
Page 10 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
|
2. |
Revenue Recognition |
Total revenues include sales of products and services to customers, net of any discounts or allowances, and freight revenues. Product revenues are recognized when control of the promised good is transferred to the customer, typically when finished products are shipped. Intersegment and interproduct revenues are eliminated in consolidation. Service revenues are derived from the paving business and recognized using the percentage-of-completion method under the revenue-cost approach. Freight revenues reflect delivery arranged by the Company using a third party on behalf of the customer and are recognized consistently with the timing of the product revenues.
Performance Obligations. Performance obligations are contractual promises to transfer or provide a distinct good or service for a stated price. The Company’s product sales agreements are single-performance obligations that are satisfied at a point in time.
Future revenues from unsatisfied performance obligations at March 31, 2020 and 2019 were $
Revenue by Category.
|
|
|
Three Months Ended |
|
|||||||||
|
|
|
March 31, 2020 |
|
|||||||||
|
|
|
Products and Services |
|
|
Freight |
|
|
Total |
|
|||
|
|
|
(Dollars in Millions) |
|
|||||||||
|
Mid-America Group |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
Southeast Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
West Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Building Materials Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Magnesia Specialties |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|||||||||
|
|
|
March 31, 2019 |
|
|||||||||
|
|
|
Products and Services |
|
|
Freight |
|
|
Total |
|
|||
|
|
|
(Dollars in Millions) |
|
|||||||||
|
Mid-America Group |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
Southeast Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
West Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Building Materials Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Magnesia Specialties |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Page 11 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Service revenues, which include paving operations located in Colorado, were $
Contract Balances. Costs in excess of billings relate to the conditional right to consideration for completed contractual performance and are contract assets on the consolidated balance sheets. Costs in excess of billings are reclassified to accounts receivable when the right to consideration becomes unconditional. Billings in excess of costs relate to customers invoiced in advance of contractual performance and are contract liabilities on the consolidated balance sheets.
|
(Dollars in Millions) |
|
March 31, 2020 |
|
|
December 31, 2019 |
|
||
|
Costs in excess of billings |
|
$ |
|
|
|
$ |
|
|
|
Billings in excess of costs |
|
$ |
|
|
|
$ |
|
|
Revenues recognized from the beginning balance of contract liabilities for the three months ended March 31, 2020 and 2019 were $
Retainage, which primarily relates to the paving services, represents amounts that have been billed to customers but payment withheld until final acceptance by the customer of the performance obligation. Included in other current assets on the Company’s consolidated balance sheets, retainage was $
Warranties. The Company’s construction contracts generally contain warranty provisions typically for a period of
Policy Elections. When the Company arranges third-party freight to deliver products to customers, the Company has elected the delivery to be a fulfillment activity rather than a separate performance obligation. Further, the Company acts as a principal in the delivery arrangements and, as required by the accounting standard, the related revenues and costs are presented gross and are included in the consolidated statements of earnings.
|
3. |
Inventories, Net |
|
|
|
March 31, |
|
|
December 31, |
|
||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(Dollars in Millions) |
|
|||||
|
Finished products |
|
$ |
|
|
|
$ |
|
|
|
Products in process |
|
|
|
|
|
|
|
|
|
Raw materials |
|
|
|
|
|
|
|
|
|
Supplies and expendable parts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Allowances |
|
|
( |
) |
|
|
( |
) |
|
Total |
|
$ |
|
|
|
$ |
|
|
Page 12 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
|
4. |
Long-Term Debt |
|
|
|
March 31, |
|
|
December 31, |
|
||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(Dollars in Millions) |
|
|||||
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating Rate Senior Notes, due at March 31, 2020 and December 31, 2019, respectively |
|
|
|
|
|
|
|
|
|
Trade Receivable Facility, interest rate of March 31, 2020 and December 31, 2019, respectively |
|
|
|
|
|
|
|
|
|
Other notes |
|
|
|
|
|
|
|
|
|
Total debt |
|
|
|
|
|
|
|
|
|
Less: Current maturities of long-term debt and short-term facilities |
|
|
( |
) |
|
|
( |
) |
|
Long-term debt |
|
$ |
|
|
|
$ |
|
|
On March 5, 2020, the Company issued $
The Company, through a wholly-owned special-purpose subsidiary, has a $
Page 13 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
The Company has a $
The Revolving Facility expires on
|
5. |
Financial Instruments |
The Company’s financial instruments include cash equivalents, accounts receivable, notes receivable, accounts payable, publicly-registered long-term notes, debentures and other long-term debt.
Cash equivalents are placed primarily in money market funds, money market demand deposit accounts and Eurodollar time deposits. The Company’s cash equivalents have original maturities of less than three months. Due to the short maturity of these investments, they are carried on the consolidated balance sheets at cost, which approximates fair value.
Accounts receivable are due from a large number of customers, primarily in the construction industry, and are dispersed across wide geographic and economic regions.
Notes receivable are not publicly traded. Management estimates that the fair value of notes receivable approximates the carrying amount due to the short-term nature of the receivables.
Accounts payable represent amounts owed to suppliers and vendors. The estimated fair value of accounts payable approximates the carrying amount due to the short-term nature of the payables.
The carrying values and fair values of the Company’s long-term debt were $
Page 14 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
|
6. |
Income Taxes |
The effective income tax rate reflects the effect of federal and state income taxes on earnings and the impact of differences in book and tax accounting arising from the permanent tax benefits associated with the statutory depletion deduction for mineral reserves. For the three months ended March 31, 2020, the low effective income tax rate of
The Company records interest accrued in relation to unrecognized tax benefits as income tax expense. Penalties, if incurred, are recorded as operating expenses in the consolidated statements of earnings and comprehensive earnings.
|
7. |
Pension and Postretirement Benefits |
The estimated components of the recorded net periodic benefit cost (credit) for pension and postretirement benefits are as follows:
|
|
|
Pension |
|
|
Postretirement Benefits |
|
||||||||||
|
|
|
Three Months Ended March 31, |
|
|||||||||||||
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
|
|
|
(Dollars in Millions) |
|
|||||||||||||
|
Service cost |
|
$ |
|
|
|
$ |
|
|
|
$ |
— |
|
|
$ |
— |
|
|
Interest cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected return on assets |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
Amortization of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior service cost (credit) |
|
|
|
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
Actuarial loss (gain) |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
( |
) |
|
Net periodic benefit cost (credit) |
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
( |
) |
The service cost component of net periodic benefit cost (credit) is included in cost of revenues – products and services and selling, general and administrative expenses. All other components are included in other nonoperating expenses and (income), net, in the consolidated statements of earnings and comprehensive earnings.
|
8. |
Commitments and Contingencies |
Legal and Administrative Proceedings
The Company is engaged in certain legal and administrative proceedings incidental to its normal business activities, including matters relating to the protection of the environment. The Company considers various factors in assessing the probable outcome of each matter, including but not limited to the nature of existing legal proceedings and claims, the asserted or possible damages, which court the case is in and whether it is a jury trial, the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, the Company’s experience in similar cases and the experience of other companies, the facts available to the Company at the time of assessment, and how the Company intends to respond to the proceeding or claim. The Company’s assessment of these factors may change over time as proceedings or claims progress. The Company believes the probability is remote that the outcome of any currently pending legal or administrative proceeding will result in a material loss to the Company as a whole, based on currently available facts.
Page 15 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
Borrowing Arrangements with Affiliate
The Company is a co-borrower with an unconsolidated affiliate for a $
In addition, the Company has a $
Letters of Credit
In the normal course of business, the Company provides certain third parties with standby letter of credit agreements guaranteeing its payment for certain insurance claims, contract performance and permit requirements. At March 31, 2020, the Company was contingently liable for $
|
9. |
Business Segments |
The Building Materials business contains
The following table displays selected financial data for the Company’s reportable business segments. Total revenues, as presented on the consolidated statements of earnings and comprehensive earnings, exclude intersegment revenues which represent sales from one segment to another segment, which are eliminated. Prior-year segment information has been reclassified to conform to the reporting structure change described in Note 1.
Page 16 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(Dollars in Millions) |
|
|||||
|
Total revenues: |
|
|
|
|
|
|
|
|
|
Mid-America Group |
|
$ |
|
|
|
$ |
|
|
|
Southeast Group |
|
|
|
|
|
|
|
|
|
West Group |
|
|
|
|
|
|
|
|
|
Total Building Materials Business |
|
|
|
|
|
|
|
|
|
Magnesia Specialties |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services revenues: |
|
|
|
|
|
|
|
|
|
Mid-America Group |
|
$ |
|
|
|
$ |
|
|
|
Southeast Group |
|
|
|
|
|
|
|
|
|
West Group |
|
|
|
|
|
|
|
|
|
Total Building Materials Business |
|
|
|
|
|
|
|
|
|
Magnesia Specialties |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from operations: |
|
|
|
|
|
|
|
|
|
Mid-America Group |
|
$ |
|
|
|
$ |
|
|
|
Southeast Group |
|
|
|
|
|
|
|
|
|
West Group |
|
|
|
|
|
|
|
|
|
Total Building Materials Business |
|
|
|
|
|
|
|
|
|
Magnesia Specialties |
|
|
|
|
|
|
|
|
|
Corporate |
|
|
( |
) |
|
|
( |
) |
|
Total |
|
$ |
|
|
|
$ |
|
|
Page 17 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
|
10. |
Revenues and Gross Profit |
The Building Materials business includes the aggregates, cement, ready mixed concrete and asphalt and paving product lines. All cement, ready mixed concrete and asphalt and paving product lines reside in the West Group.
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(Dollars in Millions) |
|
|||||
|
Total revenues: |
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
|
|
|
$ |
|
|
|
Cement |
|
|
|
|
|
|
|
|
|
Ready mixed concrete |
|
|
|
|
|
|
|
|
|
Asphalt and paving services |
|
|
|
|
|
|
|
|
|
Less: interproduct revenues |
|
|
( |
) |
|
|
( |
) |
|
Products and services |
|
|
|
|
|
|
|
|
|
Freight |
|
|
|
|
|
|
|
|
|
Total Building Materials Business |
|
|
|
|
|
|
|
|
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
Products and services |
|
|
|
|
|
|
|
|
|
Freight |
|
|
|
|
|
|
|
|
|
Total Magnesia Specialties |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
Products and services: |
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
|
|
|
$ |
|
|
|
Cement |
|
|
|
|
|
|
|
|
|
Ready mixed concrete |
|
|
|
|
|
|
|
|
|
Asphalt and paving services |
|
|
( |
) |
|
|
( |
) |
|
Products and services |
|
|
|
|
|
|
|
|
|
Freight |
|
|
( |
) |
|
|
( |
) |
|
Total Building Materials Business |
|
|
|
|
|
|
|
|
|
Magnesia Specialties: |
|
|
|
|
|
|
|
|
|
Products and services |
|
|
|
|
|
|
|
|
|
Freight |
|
|
( |
) |
|
|
( |
) |
|
Total Magnesia Specialties |
|
|
|
|
|
|
|
|
|
Corporate |
|
|
( |
) |
|
|
( |
) |
|
Total |
|
$ |
|
|
|
$ |
|
|
Page 18 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
|
11. |
Supplemental Cash Flow Information |
Noncash investing and financing activities are as follows:
|
|
|
March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(Dollars in Millions) |
|
|||||
|
Noncash investing and financing activities: |
|
|
|
|
|
|
|
|
|
Accrued liabilities for purchases of property, plant and equipment |
|
$ |
|
|
|
$ |
|
|
|
Accrued proceeds from company-owned life insurance benefits |
|
$ |
|
|
|
$ |
— |
|
|
Acquisition of assets through swap |
|
$ |
— |
|
|
$ |
|
|
|
Receivable issued in connection with sale of property, plant and equipment |
|
$ |
— |
|
|
$ |
|
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities |
|
$ |
|
|
|
$ |
|
|
|
Right-of-use assets obtained in exchange for new finance lease liabilities |
|
$ |
— |
|
|
$ |
|
|
Supplemental disclosures of cash flow information are as follows:
|
|
|
March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(Dollars in Millions) |
|
|||||
|
Cash paid for interest |
|
$ |
|
|
|
$ |
|
|
|
Cash paid for income taxes |
|
$ |
|
|
|
$ |
|
|
During the quarter ended March 31, 2020, the Company repaid $
|
12. |
Other Operating Expenses and (Income), Net |
Other operating expenses and (income), net, for the quarter ended March 31, 2020, reflects higher bad debt expense and lower gains on sales of assets compared with the prior-year period. Additionally, other operating expenses and (income), net, for the three months ended March 31, 2019, reflects the reversal of $
Page 19 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
OVERVIEW
Martin Marietta Materials, Inc. (the Company or Martin Marietta) is a natural resource-based building materials company. The Company supplies aggregates (crushed stone, sand and gravel) through its network of approximately 300 quarries, mines and distribution yards in 27 states, Canada and the Bahamas. In the southwestern and western United States, Martin Marietta also provides cement and downstream products, namely, ready mixed concrete, asphalt and paving services, in vertically-integrated structured markets where the Company has a leading aggregates position. The Company’s heavy-side building materials are used in infrastructure, nonresidential and residential construction projects. Aggregates are also used in agricultural, utility and environmental applications and as railroad ballast. The aggregates, cement, ready mixed concrete and asphalt and paving product lines are reported collectively as the “Building Materials” business.
Effective January 1, 2020, the Company moved the management of its one quarry in the state of Washington from the Mid-America Group to the West Group, resulting in an immaterial change to its reportable segments. The Company conducts its Building Materials business through three reportable business segments: Mid-America Group, Southeast Group and West Group.
|
BUILDING MATERIALS BUSINESS |
||||||
|
Reportable Segments |
|
Mid-America Group |
|
Southeast Group |
|
West Group |
|
Operating Locations |
|
Indiana, Iowa, northern Kansas, Kentucky, Maryland, Minnesota, Missouri, eastern Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia |
|
Alabama, Florida, Georgia, southwestern South Carolina, Tennessee, Nova Scotia and The Bahamas |
|
Arkansas, Colorado, southern Kansas, Louisiana, western Nebraska, Nevada, Oklahoma, Texas, Utah, Wyoming and Washington |
|
|
|
|
|
|||
|
Product Lines |
|
Aggregates |
|
Aggregates |
|
Aggregates, Cement, Ready Mixed Concrete, Asphalt and Paving |
|
|
|
|
|
|||
|
Plant Types |
|
Quarries, Mines and Distribution Facilities |
|
Quarries, Mines and Distribution Facilities |
|
Quarries, Mines, Plants and Distribution Facilities |
|
|
|
|
|
|||
|
Modes of Transportation |
|
Truck and Railcar |
|
Truck, Railcar and Ship |
|
Truck and Railcar |
The Company also has a Magnesia Specialties business that produces magnesia-based chemicals products used in industrial, agricultural and environmental applications and dolomitic lime sold primarily to customers in the steel and mining industries.
CRITICAL ACCOUNTING POLICIES
The Company outlined its critical accounting policies in its Annual Report on Form 10-K for the year ended December 31, 2019. There were no changes to the Company’s critical accounting policies during the three months ended March 31, 2020.
Page 20 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
RESULTS OF OPERATIONS
The Building Materials business is significantly affected by weather patterns and seasonal changes. Production and shipment levels for aggregates, cement, ready mixed concrete and asphalt and paving materials correlate with general construction activity levels, most of which occur in the spring, summer and fall. Thus, production and shipment levels vary by quarter. Operations concentrated in the northern and midwestern United States generally experience more severe winter weather conditions than operations in the southeast and southwest. Excessive rainfall, and conversely excessive drought, can also jeopardize production, shipments and profitability in all markets served by the Company. Due to the potentially significant impact on the Company’s operations of weather and the coronavirus (COVID-19) pandemic, including governmental responses to prevent further outbreak of COVID-19 and other matters, current period results are not indicative of expected performance for other interim periods or the full year.
Earnings before interest; income taxes; depreciation, depletion and amortization; and the earnings/loss from nonconsolidated equity affiliates (Adjusted EBITDA) is an indicator used by the Company and investors to evaluate the Company’s operating performance from period to period. Adjusted EBITDA is not defined by accounting principles generally accepted in the United States and, as such, should not be construed as an alternative to net earnings, operating earnings or operating cash flow. However, the Company’s management believes that Adjusted EBITDA may provide additional information with respect to the Company’s performance and is a measure used by management to evaluate the Company’s performance. Because Adjusted EBITDA excludes some, but not all, items that affect net earnings and may vary among companies, Adjusted EBITDA as presented by the Company may not be comparable with similarly titled measures of other companies.
A reconciliation of net earnings attributable to Martin Marietta Materials, Inc. to consolidated Adjusted EBITDA is as follows:
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2020 |
|
|
2019(1) |
|
||
|
|
|
(Dollars in Millions) |
|
|||||
|
Net Earnings Attributable to Martin Marietta Materials, Inc. |
|
$ |
25.9 |
|
|
$ |
42.9 |
|
|
Add back (deduct): |
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
|
29.6 |
|
|
|
32.8 |
|
|
Income tax expense (benefit) for controlling interests |
|
|
0.1 |
|
|
|
(5.0 |
) |
|
Depreciation, depletion and amortization and earnings/loss from nonconsolidated equity affiliates |
|
|
93.4 |
|
|
|
87.5 |
|
|
Consolidated Adjusted EBITDA |
|
$ |
149.0 |
|
|
$ |
158.2 |
|
(1) 2019 EBITDA, when compared with the amount presented in the first quarter 2019 earnings release, has been restated to conform to the 2020 calculation methodology.
Page 21 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
Financial highlights for the quarter ended March 31, 2020 (unless noted, all comparisons are versus the prior-year quarter):
|
|
♦ |
Consolidated total revenues of $958.2 million compared with $939.0 million, an increase of 2% |
|
|
♦ |
Building Materials business products and services revenues of $831.1 million compared with $809.1 million, and Magnesia Specialties products revenues of $59.9 million compared with $69.2 million |
|
|
♦ |
Consolidated gross profit of $142.4 million compared with $142.9 million |
|
|
♦ |
Consolidated earnings from operations of $57.8 million compared with $69.2 million |
|
|
♦ |
Net earnings attributable to Martin Marietta of $25.9 million compared with $42.9 million |
|
|
♦ |
Consolidated Adjusted EBITDA of $149.0 million compared with $158.2 million |
|
|
♦ |
Earnings per diluted share of $0.41 compared with $0.68 |
The following tables present total revenues, gross profit (loss), selling, general and administrative (SG&A) expenses and earnings (loss) from operations data for the Company and its reportable segments by product line for the three months ended March 31, 2020 and 2019. In each case, the data is stated as a percentage of revenues of the Company or the relevant segment or product line, as the case may be. The Company’s two cold mix asphalt plants have been reclassified from the asphalt and paving product line to the aggregates product line. These operations did not represent a material amount of product revenues and gross profit. Prior-year information has been reclassified to conform to the presentation of the Company’s current reportable product lines. Additionally, prior-year segment information has been reclassified to conform to the operations and management reporting structure change effective January 1, 2020 (see Note 1 to financial statements).
Page 22 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
|
|
|
Three Months Ended March 31, |
|
|||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||
|
|
|
Amount |
|
|
% of Revenues |
|
|
Amount |
|
|
% of Revenues |
|
||||
|
|
|
(Dollars in Millions) |
|
|||||||||||||
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-America Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
241.0 |
|
|
|
|
|
|
$ |
229.6 |
|
|
|
|
|
|
Southeast Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
|
116.9 |
|
|
|
|
|
|
|
115.3 |
|
|
|
|
|
|
West Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
|
212.4 |
|
|
|
|
|
|
|
200.0 |
|
|
|
|
|
|
Cement |
|
|
106.6 |
|
|
|
|
|
|
|
99.0 |
|
|
|
|
|
|
Ready mixed concrete |
|
|
189.7 |
|
|
|
|
|
|
|
211.2 |
|
|
|
|
|
|
Asphalt and paving |
|
|
18.1 |
|
|
|
|
|
|
|
12.4 |
|
|
|
|
|
|
Less: Interproduct revenues |
|
|
(53.6 |
) |
|
|
|
|
|
|
(58.4 |
) |
|
|
|
|
|
West Group Total |
|
|
473.2 |
|
|
|
|
|
|
|
464.2 |
|
|
|
|
|
|
Products and services |
|
|
831.1 |
|
|
|
|
|
|
|
809.1 |
|
|
|
|
|
|
Freight |
|
|
61.4 |
|
|
|
|
|
|
|
55.8 |
|
|
|
|
|
|
Total Building Materials Business |
|
|
892.5 |
|
|
|
|
|
|
|
864.9 |
|
|
|
|
|
|
Magnesia Specialties Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
59.9 |
|
|
|
|
|
|
|
69.2 |
|
|
|
|
|
|
Freight |
|
|
5.8 |
|
|
|
|
|
|
|
4.9 |
|
|
|
|
|
|
Total Magnesia Specialties Business |
|
|
65.7 |
|
|
|
|
|
|
|
74.1 |
|
|
|
|
|
|
Total |
|
$ |
958.2 |
|
|
|
|
|
|
$ |
939.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 23 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
|
|
|
Three Months Ended March 31, |
|
|||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||
|
|
|
Amount |
|
|
% of Revenues |
|
|
Amount |
|
|
% of Revenues |
|
||||
|
|
|
(Dollars in Millions) |
|
|||||||||||||
|
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-America Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
$ |
38.0 |
|
|
|
15.8 |
|
|
$ |
45.0 |
|
|
|
19.6 |
|
|
Southeast Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
|
21.9 |
|
|
|
18.7 |
|
|
|
26.5 |
|
|
|
23.0 |
|
|
West Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregates |
|
|
33.5 |
|
|
|
15.8 |
|
|
|
26.5 |
|
|
|
13.3 |
|
|
Cement |
|
|
27.3 |
|
|
|
25.6 |
|
|
|
13.8 |
|
|
|
13.9 |
|
|
Ready mixed concrete |
|
|
5.9 |
|
|
|
3.1 |
|
|
|
14.5 |
|
|
|
6.9 |
|
|
Asphalt and paving |
|
|
(8.1 |
) |
|
|
|
|
|
|
(8.3 |
) |
|
|
|
|
|
West Group Total |
|
|
58.6 |
|
|
|
12.4 |
|
|
|
46.5 |
|
|
|
10.0 |
|
|
Products and services |
|
|
118.5 |
|
|
|
14.3 |
|
|
|
118.0 |
|
|
|
14.6 |
|
|
Freight |
|
|
(0.3 |
) |
|
|
|
|
|
|
(0.2 |
) |
|
|
|
|
|
Total Building Materials Business |
|
|
118.2 |
|
|
|
13.2 |
|
|
|
117.8 |
|
|
|
13.6 |
|
|
Magnesia Specialties Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
26.1 |
|
|
|
43.5 |
|
|
|
26.5 |
|
|
|
38.5 |
|
|
Freight |
|
|
(0.9 |
) |
|
|
|
|
|
|
(1.0 |
) |
|
|
|
|
|
Total Magnesia Specialties Business |
|
|
25.2 |
|
|
|
38.4 |
|
|
|
25.5 |
|
|
|
34.5 |
|
|
Corporate |
|
|
(1.0 |
) |
|
|
|
|
|
|
(0.4 |
) |
|
|
|
|
|
Total |
|
$ |
142.4 |
|
|
|
14.9 |
|
|
$ |
142.9 |
|
|
|
15.2 |
|
Aggregates Products Gross Profit Rollforward
The following presents a rollforward of aggregates products gross profit (dollars in millions):
|
Aggregates products gross profit, quarter ended March 31, 2019 |
|
$ |
98.0 |
|
|
Volume |
|
|
2.6 |
|
|
Pricing |
|
|
14.8 |
|
|
Operational performance (1) |
|
|
(22.0 |
) |
|
Change in aggregates products gross profit |
|
|
(4.6 |
) |
|
Aggregates products gross profit, quarter ended March 31, 2020 |
|
$ |
93.4 |
|
|
(1) |
Inclusive of cost increases/decreases, product and geographic mix and other operating impacts |
Page 24 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
|
|
|
Three Months Ended March 31, |
|
|||||||||||||
|
|
|
2020 |
|
|
2019 |
|
||||||||||
|
|
|
Amount |
|
|
% of Revenues |
|
|
Amount |
|
|
% of Revenues |
|
||||
|
|
|
(Dollars in Millions) |
|
|||||||||||||
|
Selling, general & administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-America Group |
|
$ |
17.8 |
|
|
|
|
|
|
$ |
15.6 |
|
|
|
|
|
|
Southeast Group |
|
|
6.9 |
|
|
|
|
|
|
|
5.3 |
|
|
|
|
|
|
West Group |
|
|
33.4 |
|
|
|
|
|
|
|
29.3 |
|
|
|
|
|
|
Total Building Materials Business |
|
|
58.1 |
|
|
|
|
|
|
|
50.2 |
|
|
|
|
|
|
Magnesia Specialties |
|
|
3.5 |
|
|
|
|
|
|
|
2.9 |
|
|
|
|
|
|
Corporate |
|
|
17.1 |
|
|
|
|
|
|
|
25.2 |
|
|
|
|
|
|
Total |
|
$ |
78.7 |
|
|
|
8.2 |
|
|
$ |
78.3 |
|
|
|
8.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Materials Business: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-America Group |
|
$ |
20.8 |
|
|
|
|
|
|
$ |
30.6 |
|
|
|
|
|
|
Southeast Group |
|
|
14.0 |
|
|
|
|
|
|
|
21.1 |
|
|
|
|
|
|
West Group |
|
|
22.7 |
|
|
|
|
|
|
|
20.3 |
|
|
|
|
|
|
Total Building Materials Business |
|
|
57.5 |
|
|
|
|
|
|
|
72.0 |
|
|
|
|
|
|
Magnesia Specialties |
|
|
21.7 |
|
|
|
|
|
|
|
22.6 |
|
|
|
|
|
|
Corporate |
|
|
(21.4 |
) |
|
|
|
|
|
|
(25.4 |
) |
|
|
|
|
|
Total |
|
$ |
57.8 |
|
|
|
6.0 |
|
|
$ |
69.2 |
|
|
|
7.4 |
|
Page 25 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
Building Materials Business
The following tables present aggregates products volume and pricing variance data and shipments data by segment:
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, 2020 |
|
|||||
|
|
|
Volume |
|
|
Pricing |
|
||
|
Volume/Pricing variance (1) |
|
|
|
|
|
|
|
|
|
Mid-America Group |
|
|
4.3 |
% |
|
|
1.4 |
% |
|
Southeast Group |
|
|
(3.2 |
)% |
|
|
4.7 |
% |
|
West Group |
|
|
2.5 |
% |
|
|
3.7 |
% |
|
Total Aggregates Operations(2) |
|
|
2.3 |
% |
|
|
2.7 |
% |
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(Tons in Millions) |
|
|||||
|
Shipments |
|
|
|
|
|
|
|
|
|
Mid-America Group |
|
|
16.5 |
|
|
|
15.8 |
|
|
Southeast Group |
|
|
6.2 |
|
|
|
6.4 |
|
|
West Group |
|
|
15.6 |
|
|
|
15.2 |
|
|
Total Aggregates Operations(2) |
|
|
38.3 |
|
|
|
37.4 |
|
(1) Volume/pricing variances reflect the percentage increase/(decrease) from the comparable period in the prior year.
(2) Total aggregates operations include acquisitions from the date of acquisition and divestitures through the date of disposal.
Shipments for the Mid-America Group increased 4.3%. Robust warehouse and data center construction activity in Iowa and Indiana more than offset the anticipated lower infrastructure shipments in North Carolina. Geographic mix limited pricing growth to 1.4%. Shipments for the Southeast Group decreased 3.2% as significant rainfall hindered otherwise robust construction activity. Pricing growth of 4.7% reflected the underlying strength of the North Georgia and Florida markets. West Group shipments increased 2.5%, with double-digit growth in Colorado partially offset by weather-impacted construction delays in Texas. Pricing improved 3.7%.
Page 26 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
The following table presents shipments data for the Building Materials business by product line.
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
Shipments |
|
|
|
|
|
|
|
|
|
Aggregates (in millions): |
|
|
|
|
|
|
|
|
|
Tons to external customers |
|
|
36.0 |
|
|
|
35.4 |
|
|
Internal tons used in other product lines |
|
|
2.3 |
|
|
|
2.0 |
|
|
Total aggregates tons |
|
|
38.3 |
|
|
|
37.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Cement (in millions): |
|
|
|
|
|
|
|
|
|
Tons to external customers |
|
|
0.7 |
|
|
|
0.6 |
|
|
Internal tons used in ready mixed concrete |
|
|
0.2 |
|
|
|
0.3 |
|
|
Total cement tons |
|
|
0.9 |
|
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Ready Mixed Concrete (in millions of cubic yards) |
|
|
1.7 |
|
|
|
1.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Asphalt (in millions): |
|
|
|
|
|
|
|
|
|
Tons to external customers |
|
|
0.1 |
|
|
|
— |
|
|
Internal tons used in paving business |
|
|
0.1 |
|
|
|
0.1 |
|
|
Total asphalt tons |
|
|
0.2 |
|
|
|
0.1 |
|
The average selling price by product line for the Building Materials business is as follows:
|
|
|
Three Months Ended |
|
|||||||||
|
|
|
March 31, |
|
|||||||||
|
|
|
2020 |
|
|
2019 |
|
|
% Change |
|
|||
|
Aggregates (per ton) |
|
$ |
14.80 |
|
|
$ |
14.42 |
|
|
|
2.7 |
% |
|
Cement (per ton) |
|
$ |
113.77 |
|
|
$ |
110.93 |
|
|
|
2.6 |
% |
|
Ready Mixed Concrete (per cubic yard) |
|
$ |
114.35 |
|
|
$ |
109.28 |
|
|
|
4.6 |
% |
|
Asphalt (per ton) |
|
$ |
45.43 |
|
|
$ |
45.92 |
|
|
|
(1.1 |
)% |
Aggregates End-Use Markets
Aggregates shipments to the infrastructure market increased, driven by large projects in Texas, Colorado, Iowa and Indiana. The infrastructure market accounted for 32% of first-quarter aggregates shipments, which is below the Company’s most recent ten-year annual average of 45% but consistent with historical first-quarter trends.
Aggregates shipments to the nonresidential market increased modestly following double-digit growth in commercial and heavy industrial construction activity in the prior-year quarter. The Company continued to benefit from distribution center, warehouse and data center projects in key geographies, including Texas, Colorado, Georgia, Florida and Iowa, as well as the early phases of several large energy-sector projects along the Gulf Coast. The nonresidential market represented 36% of first-quarter aggregates shipments.
Page 27 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
Aggregates shipments to the residential market declined slightly when compared with the robust growth in homebuilding activity in the prior-year quarter. Ongoing homebuilding activity in Texas and Georgia was hindered by significant rainfall during first-quarter 2020. The residential market accounted for 25% of first-quarter aggregates shipments.
The ChemRock/Rail market accounted for the remaining 7% of first-quarter aggregates shipments. Volumes to this end use increased, driven by improved ballast shipments to the Class I western railroads and higher agricultural lime shipments.
Building Materials Business Product Lines
First-quarter aggregates shipments and pricing increased 2.3% and 2.7%, respectively, compared with the prior-year period. Aggregates product gross margin declined 160 basis points to 16.4%, despite improved operating leverage, largely driven by a $15.2 million, or 260 basis points, year-over-year impact of lower unit production costs on aggregates inventory standards.
First-quarter cement shipments increased 5.2% and pricing improved 2.6% compared with the prior-year period. Pricing gains and production efficiencies from increased shipment and production levels, coupled with lower maintenance costs, contributed to the 1,170-basis-point expansion in cement product gross margin to 25.6%.
Ready mixed concrete pricing improved 4.6% while shipments declined 14.1% in the first quarter as compared with the prior-year period, primarily attributable to weather-impacted project delays in Texas that more than offset double-digit growth in Colorado. Asphalt volume increased 80.6% attributable to favorable weather compared with the prior-year period. Asphalt pricing decreased 1.1% due to unfavorable product mix.
Magnesia Specialties Business
Magnesia Specialties product revenues decreased 13.4% to $59.9 million, consistent with expectations and driven by continued declines in chemicals products as international customers rationalize inventory levels. Lime shipments to the steel industry were flat. Product gross profit was $26.1 million compared with $26.6 million. Product gross margin improved 500 basis points to 43.5% due to lower energy costs and effective cost control measures. Earnings from operations were $21.7 million compared with $22.6 million.
Consolidated Operating Results
Consolidated SG&A was 8.2% of total revenues compared with 8.3% in the prior-year quarter. Earnings from operations for the quarter were $57.8 million in 2020 compared with $69.2 million in 2019.
Among other items, other operating income and expenses, net, includes gains and losses on the sale of assets; recoveries and write-offs related to customer accounts receivable; rental, royalty and services income; accretion expense, depreciation expense and gains and losses related to asset retirement obligations. For the first quarter, consolidated other operating expenses and income, net, was an expense of $5.6 million in 2020 and income of $4.7 million in 2019. The expense in 2020 included higher bad debt expense and lower gains on sales of assets compared with the prior year. The income in 2019 reflected the reversal of $4.2 million of accruals for unclaimed property contingencies.
Page 28 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
Other nonoperating income and expenses, net, includes interest income; pension and postretirement benefit cost, excluding service cost; foreign currency transaction gains and losses; equity in earnings or losses of nonconsolidated affiliates and other miscellaneous income and expenses. For the first quarter, other nonoperating expenses and income, net, was expense of $2.0 million and income of $1.6 million in 2020 and 2019, respectively. The 2020 expense included $5.6 million to finance third-party railroad maintenance.
Income Tax Expense (Benefit)
For the three months ended March 31, 2020, the effective income tax rate included a $6.9 million discrete benefit from financing third-party railroad maintenance. In exchange, the Company received a federal income tax credit and deduction. For the three months ended March 31, 2019, the effective income tax rate included a $13.2 million discrete benefit from a change in the tax status of a subsidiary from a partnership to a corporation, contributing to an overall income tax benefit of $5.0 million.
LIQUIDITY AND CAPITAL RESOURCES
For the three months ended March 31, cash provided by operating activities was $106.7 million in 2020 compared with $117.9 million in 2019. Operating cash flow is primarily derived from consolidated net earnings before deducting depreciation, depletion and amortization, and the impact of changes in working capital. Depreciation, depletion and amortization were as follows:
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(Dollars in Millions) |
|
|||||
|
Depreciation |
|
$ |
83.1 |
|
|
$ |
78.1 |
|
|
Depletion |
|
|
7.0 |
|
|
|
5.9 |
|
|
Amortization |
|
|
4.9 |
|
|
|
5.2 |
|
|
Total |
|
$ |
95.0 |
|
|
$ |
89.2 |
|
The seasonal nature of construction activity impacts the Company’s quarterly operating cash flow when compared with the full year. Full-year 2019 net cash provided by operating activities was $966.1 million.
During the three months ended March 31, 2020, the Company paid $104.1 million for capital investments.
The Company can repurchase its common stock through open-market purchases pursuant to authority granted by its Board of Directors or through private transactions at such prices and upon such terms as the Chief Executive Officer deems appropriate. The Company repurchased 210,616 shares of common stock during the first three months of 2020, at an aggregate cost of $50.0 million. At March 31, 2020, 13,520,952 shares of common stock were remaining under the Company’s repurchase authorization. Future share repurchases are at the discretion of management and have been temporarily suspended as of March 2020 in light of the COVID-19 pandemic subject to management’s determination to resume repurchases.
Page 29 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
On March 5, 2020, the Company issued $500 million aggregate principal amount of 2.500% Senior Notes due 2030 (the 2.500% Senior Notes). The 2.500% Senior Notes are carried net of original issue discount, which is being amortized by the effective interest method over the life of the issue. The 2.500% Senior Notes are redeemable prior to December 15, 2029 at their make-whole redemption price at a discount rate of the U.S. Treasury Rate plus 30 basis points, or on or after December 15, 2029 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest to the date of redemption. The Company intends to use the net proceeds for general corporate purposes, including the repayment at maturity of $300 million of existing floating rate notes due May 2020.
The Company has a $700 million five-year senior unsecured revolving facility (the Revolving Facility), which expires on December 5, 2024. The Revolving Facility requires the Company’s ratio of consolidated debt-to-consolidated EBITDA, as defined, for the trailing-twelve-month period (the Ratio) to not exceed 3.50x as of the end of any fiscal quarter, provided that the Company may exclude from the Ratio debt incurred in connection with certain acquisitions during the quarter or the three preceding quarters so long as the Ratio calculated without such exclusion does not exceed 3.75x. Additionally, if there are no amounts outstanding under the Revolving Facility and the $400 million trade receivable securitization facility (the Trade Receivable Facility) held by the Company’s wholly-owned special-purpose subsidiary, consolidated debt, including debt for which the Company is a co-borrower, may be reduced by the Company’s unrestricted cash and cash equivalents in excess of $50 million, such reduction not to exceed $200 million, for purposes of the covenant calculation.
The Ratio is calculated as debt, including debt for which the Company is a co-borrower, divided by consolidated EBITDA, as defined by the Company’s Revolving Facility, for the trailing-twelve months. Consolidated EBITDA is generally defined as earnings before interest expense, income tax expense, and depreciation and amortization expense. Additionally, stock-based compensation expense is added back and interest income is deducted in the calculation of consolidated EBITDA. During periods that include an acquisition, pre-acquisition adjusted EBITDA of the acquired company is added to consolidated EBITDA as if the acquisition occurred on the first day of the calculation period. Certain other nonrecurring items, if they occur, can affect the calculation of consolidated EBITDA.
Page 30 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
At March 31, 2020, the Company’s ratio of consolidated debt-to-consolidated EBITDA, as defined by the Company’s Revolving Facility, for the trailing-twelve months was 2.56 times and was calculated as follows:
|
|
|
April 1, 2019 to |
|
|
|
|
|
March 31, 2020 |
|
|
|
|
|
(Dollars in Millions) |
|
|
|
Earnings from continuing operations attributable to Martin Marietta |
|
$ |
595.0 |
|
|
Add back: |
|
|
|
|
|
Income tax expense |
|
|
141.4 |
|
|
Interest expense |
|
|
126.2 |
|
|
Depreciation, depletion and amortization expense and noncash nonconsolidated equity affiliate adjustment |
|
|
389.2 |
|
|
Stock-based compensation expense |
|
|
33.1 |
|
|
|
|
|
|
|
|
Deduct: |
|
|
|
|
|
Interest income |
|
|
(0.5 |
) |
|
Consolidated EBITDA, as defined by the Company’s Revolving Facility |
|
$ |
1,284.4 |
|
|
Consolidated net debt, as defined and including debt for which the Company is a co-borrower, at March 31, 2020 |
|
$ |
3,283.0 |
|
|
Consolidated debt-to-consolidated EBITDA, as defined by the Company’s Revolving Facility, at March 31, 2020 for the trailing-twelve months EBITDA |
|
2.56 times |
|
|
The Trade Receivable Facility contains a cross-default provision to the Company’s other debt agreements. In the event of a default on the Ratio, the lenders can terminate the Revolving Facility and Trade Receivable Facility and declare any outstanding balances as immediately due. Outstanding amounts on the Trade Receivable Facility have been classified as a current liability on the Company’s consolidated balance sheet.
Cash on hand, along with the Company’s projected internal cash flows and availability of financing resources, including its access to debt and equity capital markets, is expected to continue to be sufficient to provide the capital resources necessary to support anticipated operating needs, cover debt service requirements, address near-term debt maturities, meet capital expenditures and discretionary investment needs, fund certain acquisition opportunities that may arise, allow the repurchase of shares of the Company’s common stock when the repurchase program is resumed and allow for payment of dividends for the foreseeable future. Any future significant strategic acquisition for cash would likely require an appropriate balance of newly-issued equity with debt in order to maintain a composite investment-grade credit rating. At March 31, 2020, the Company had $757.7 million of unused borrowing capacity under its Revolving Facility and Trade Receivable Facility, subject to complying with the related leverage covenant. The Revolving Facility matures on December 5, 2024 and the Trade Receivable Facility expires September 23, 2020. The Company has $300 million of floating rate senior notes due in May 2020. Historically, the Company has successfully extended the maturity dates of these credit facilities. Further, other than the $300 million Floating Rate Senior Notes that mature in May 2020, for which the Company issued new 10-year notes in March 2020 to fund their repayment, the Company does not have any publicly-traded debt that matures prior to 2024. While the future impact of the COVID-19 pandemic is not currently quantifiable, management believes the Company’s liquidity is sufficient to meet its cash flow needs through the foreseeable future.
Page 31 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law in March 2020 and provides liquidity support for businesses. The CARES Act allows the Company to defer the payment of the 6.2% employer share of Social Security taxes for the period from March 27, 2020 through December 31, 2020. Half of the deferred obligation will be due December 31, 2021 and the remaining half will be due December 31, 2022. There will be no interest assessed on amounts deferred. The Company estimates it will defer payment of approximately $25 million under this provision.
The CARES Act also provides a quarterly refundable employee retention credit if companies suspend operations due to government restrictions or experience a 50% or more decline in quarterly revenues compared with the prior-year quarter. The credit is equal to 50% of qualified wages, up to $10,000 per employee who is not performing services to the Company. While the Company has had minimal short-term shutdowns related to the COVID-19 pandemic such that the Company has not utilized this aid, if future shutdowns are mandated and more extensive, the Company would be eligible to claim this credit.
The CARES Act also includes other provisions, including increasing the interest expense deduction limitation to 50% of adjusted taxable income and providing a credit facility for investment-grade companies. The Company does not currently expect the interest expense deduction provision to result in a change in its ability to take a full income tax deduction. The Company also believes it has adequate liquidity and does not currently expect to utilize the credit facility.
Additionally, the Internal Revenue Service and many of the state revenue departments have issued guidance allowing companies to defer tax payments normally due on or after April 1, 2020 but before July 15, 2020 to July 15, 2020. As such, the Company has elected to defer the majority of its 2020 estimated income tax payments that were due April 15, 2020 until July 15, 2020, and plans to defer its second quarter 2020 estimated tax payments from June 15, 2020 to July 15, 2020.
TRENDS AND RISKS
The Company outlined the risks associated with its business in its Annual Report on Form 10-K for the year ended December 31, 2019. Management continues to evaluate its exposure to all operating risks on an ongoing basis. A discussion of risks and uncertainties related to the COVID-19 pandemic are included in Part II, Item 1A Risk Factors of this report.
OUTLOOK
Of the Company’s three primary end uses, the outlook for infrastructure construction, particularly for aggregates-intensive highways and streets, is expected to be the most near-term resilient. While the majority of the United States has currently been ordered to shelter in place, most state Departments of Transportation (DOTs) are currently operational and continue to advance current and planned transportation projects, capitalizing on the reduction of vehicles on the road and related traffic congestion. Florida, for example, recently announced plans to accelerate $2.1 billion of critical transportation projects. That said, state DOTs are experiencing lower tax revenue collections and states may have other short-term funding needs relating to the COVID-19 impact that may impact decrease the scale and/or postpone the timing of future construction.
Page 32 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
OTHER MATTERS
If you are interested in Martin Marietta stock, management recommends that, at a minimum, you read the Company’s current annual report and Forms 10-K, 10-Q and 8-K reports to the Securities and Exchange Commission (SEC) over the past year. The Company’s recent proxy statement for the annual meeting of shareholders also contains important information. These and other materials that have been filed with the SEC are accessible through the Company’s website at www.martinmarietta.com and are also available at the SEC’s website at www.sec.gov. You may also write or call the Company’s Corporate Secretary, who will provide copies of such reports.
Investors are cautioned that all statements in this Form 10-Q that relate to the future involve risks and uncertainties, and are based on assumptions that the Company believes in good faith are reasonable but which may be materially different from actual results. These statements, which are forward-looking statements under the Private Securities Litigation Reform Act of 1995, give the investor the Company’s expectations or forecasts of future events. You can identify these statements by the fact that they do not relate only to historical or current facts. They may use words such as “anticipate,” “expect,” “should be,” “believe,” “will,” and other words of similar meaning in connection with future events or future operating or financial performance. Any or all of management’s forward-looking statements here and in other publications may turn out to be wrong.
The Company’s outlook is subject to various risks and uncertainties, and is based on assumptions that the Company believes in good faith are reasonable but which may be materially different from actual results. Factors that the Company currently believes could cause actual results to differ materially from the forward-looking statements in this Form 10-Q (including the outlook) include, but are not limited to: the ability of the Company to face challenges, including those posed by the COVID-19 pandemic and implementation of any such related response plans; the resiliency and potential declines of the Company’s various construction end-use markets; the potential negative impact of the COVID-19 pandemic on the Company’s ability to continue supplying heavy-side building materials and related services at normal levels or at all in the Company’s key regions; the duration, impact and severity of the impact of the COVID-19 pandemic on the Company, including the markets in which the Company does business, its suppliers, customers or other business partners as well as the Company’s employees; the economic impact of government responses to the pandemic; the performance of the United States economy, including the impact on the economy of the COVID-19 pandemic and governmental orders restricting activities imposed to prevent further outbreak of COVID-19; shipment declines resulting from economic events beyond the Company’s control; a widespread decline in aggregates pricing, including a decline in aggregates shipment volume negatively affecting aggregates price; the history of both cement and ready mixed concrete being subject to significant changes in supply, demand and price fluctuations; the termination, capping and/or reduction or suspension of the federal and/or state gasoline tax(es) or other revenue related to public construction; the level and timing of federal, state or local transportation or infrastructure or public projects funding, most particularly in Texas, Colorado, North Carolina, Georgia, Iowa and Maryland; the impact of governmental orders restricting activities imposed to prevent further outbreak of COVID-19 on travel, potentially reducing state fuel tax revenues used to fund highway projects; the United States Congress’ inability to reach agreement among themselves or with the Administration on policy issues that impact the federal budget; the ability of states and/or other entities to finance approved projects either with tax revenues or alternative financing structures; levels of construction spending in the markets the Company serves; a reduction in defense spending and the subsequent impact on construction activity on or near military bases; a decline in the commercial component of the nonresidential construction market, notably office and retail space, including a decline resulting from economic distress related to the COVID-19 pandemic; a decline in energy-related construction activity resulting from a sustained period of low global oil prices or changes in oil production patterns or capital spending in response to this decline, particularly in Texas; increasing residential mortgage rates and other factors
Page 33 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
that could result in a slowdown in residential construction; unfavorable weather conditions, particularly Atlantic Ocean and Gulf of Mexico hurricane activity, the late start to spring or the early onset of winter and the impact of a drought or excessive rainfall in the markets served by the Company, any of which can significantly affect production schedules, volumes, product and/or geographic mix and profitability; whether the Company’s operations will continue to be treated as “essential” operations under applicable government orders restricting business activities imposed to prevent further outbreak of COVID-19 or, even if so treated, whether site-specific health and safety concerns might otherwise require certain of the Company’s operations to be halted for some period of time; the volatility of fuel costs, particularly diesel fuel, and the impact on the cost, or the availability generally, of other consumables, namely steel, explosives, tires and conveyor belts, and with respect to the Company’s Magnesia Specialties business, natural gas; continued increases in the cost of other repair and supply parts; construction labor shortages and/or supply‐chain challenges; unexpected equipment failures, unscheduled maintenance, industrial accident or other prolonged and/or significant disruption to production facilities; increasing governmental regulation, including environmental laws; the failure of relevant government agencies to implement expected regulatory reductions; transportation availability or a sustained reduction in capital investment by the railroads, notably the availability of railcars, locomotive power and the condition of rail infrastructure to move trains to supply the Company’s Texas, Colorado, Florida, Carolinas and the Gulf Coast markets, including the movement of essential dolomitic lime for magnesia chemicals to the Company’s plant in Manistee, Michigan and its customers; increased transportation costs, including increases from higher or fluctuating passed-through energy costs or fuel surcharges, and other costs to comply with tightening regulations, as well as higher volumes of rail and water shipments; availability of trucks and licensed drivers for transport of the Company’s materials; availability and cost of construction equipment in the United States; weakening in the steel industry markets served by the Company’s dolomitic lime products; trade disputes with one or more nations impacting the U.S. economy, including the impact of tariffs on the steel industry; unplanned changes in costs or realignment of customers that introduce volatility to earnings, including that of the Magnesia Specialties business that is running at capacity; proper functioning of information technology and automated operating systems to manage or support operations; inflation and its effect on both production and interest costs; the concentration of customers in construction markets and the increased risk of potential losses on customer receivables; the impact of the level of demand in the Company’s end-use markets, production levels and management of production costs on the operating leverage and therefore profitability of the Company; the possibility that the expected synergies from acquisitions will not be realized or will not be realized within the expected time period, including achieving anticipated profitability to maintain compliance with the Company’s leverage ratio debt covenant; changes in tax laws, the interpretation of such laws and/or administrative practices that would increase the Company’s tax rate; violation of the Company’s debt covenant if price and/or volumes return to previous levels of instability; downward pressure on the Company’s common stock price and its impact on goodwill impairment evaluations; the possibility of a reduction of the Company’s credit rating to non-investment grade; and other risk factors listed from time to time found in the Company’s filings with the SEC.
You should consider these forward-looking statements in light of risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and other periodic filings made with the SEC. All of the Company’s forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to the Company or that the Company considers immaterial could affect the accuracy of its forward-looking statements, or adversely affect or be material to the Company. The Company assumes no obligation to update any such forward-looking statements.
Page 34 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter March 31, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
First Quarter Ended March 31, 2020
(Continued)
INVESTOR ACCESS TO COMPANY FILINGS
Shareholders may obtain, without charge, a copy of Martin Marietta’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2019, by writing to:
Martin Marietta
Attn: Corporate Secretary
2710 Wycliff Road
Raleigh, North Carolina 27607-3033
Additionally, Martin Marietta’s Annual Report, press releases and filings with the Securities and Exchange Commission, including Forms 10-K, 10-Q, 8-K and 11-K, can generally be accessed via the Company’s website. Filings with the Securities and Exchange Commission accessed via the website are available through a link with the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system. Accordingly, access to such filings is available upon EDGAR placing the related document in its database. Investor relations contact information is as follows:
Telephone: (919) 510-4776
Website address: www.martinmarietta.com
Information included on the Company’s website is not incorporated into, or otherwise create a part of, this report.
Page 35 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
The impact of the COVID-19 pandemic on the global and domestic economy is currently not fully known. The Company’s operations have to date been considered “essential” operations under applicable governmental orders that restrict activities in an effort to prevent further outbreak of COVID-19. As such, the Company is conducting business with certain modifications, including having non-operational personnel working remotely; limiting site access to necessary employees and critical third parties; engaging medical experts to screen those who may have had COVID-19 exposure before allowing access to sites; enhancing the cleaning and disinfection of equipment and common areas, including engaging third-party specialists to disinfect work spaces; and issuing a quarantine policy requiring employees with COVID-19 symptoms to stay home for at least 14 days, among other things. The Company continues to actively monitor the situation and may take further actions that alter its business operations including any that may be required by federal, state or local authorities or that the Company determines are in the best interests of its employees, customers, suppliers, vendors, communities and other stakeholders.
Demand for aggregates products, particularly in the infrastructure construction market, is affected by federal, state and local budget and deficit issues. Remote working and stay-at-home orders and other guidelines are reducing miles driven, which is having a negative impact on various revenue streams that fund roadway projects. Further, delays or cancellations of projects in the nonresidential and residential construction markets could occur if companies and consumers are unable to obtain financing for construction projects or if consumer confidence continues to be eroded by economic uncertainty. Additionally, homebuilders may be reluctant to commence new housing development projects until there is greater clarity on the overall economic impact of COVID-19. The residential construction market accounted for 22% of the Company’s aggregates shipments in 2019 and 25% in the first quarter of 2020.
The Company’s operations are highly dependent upon the interest rate-sensitive construction and steelmaking industries. Consequently, these marketplaces could experience lower levels of economic activity in an environment of rising interest rates or escalating costs.
Aside from these inherent risks from within its operations, the Company’s earnings are also affected by changes in short-term interest rates.
Variable-Rate Borrowing Facilities. At March 31, 2020, the Company had a $700 million Revolving Facility and a $400 million Trade Receivable Facility. The Company also has $300 million variable-rate senior notes which matures May 2020. Borrowings under these facilities bear interest at a variable interest rate. A hypothetical 100-basis-point increase in interest rates on borrowings of $640 million, which was the collective outstanding balance at March 31, 2020, would increase interest expense by $6.4 million on an annual basis.
Pension Expense. The Company’s results of operations are affected by its pension expense. Assumptions that affect pension expense include the discount rate and, for the qualified defined benefit pension plan only, the expected long-term rate of return on assets. Therefore, the Company has interest rate risk associated with these factors. The impact of hypothetical changes in these assumptions on the Company’s annual pension expense is discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. While U.S Treasury yields declined in March 2020 due to the economic impact of COVID-19, high-quality corporate bond yields did not fluctuate as significantly as U.S. Treasury yields during the quarter ended March 31, 2020. However, the fair value of the Company’s pension assets has declined during the first quarter. Unless an event requires an interim remeasurement, the Company will next remeasure its pension obligation and funded status as of December 31, 2020. Any decrease in pension asset values will negatively impact 2021 pension expense.
Page 36 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
(Continued)
Energy Costs. Energy costs, including diesel fuel, natural gas, coal and liquid asphalt, represent significant production costs of the Company. The cement operations and Magnesia Specialties business have fixed price agreements covering a majority of its 2020 coal requirements. Energy costs for the three months ended March 31, 2020 decreased approximately 2.9% compared with the prior-year period due to the devaluation of crude oil starting in 2020; however, any future energy prices cannot be reliably predicted. A hypothetical 2.9% change in the Company’s energy prices for the full year 2020 as compared with 2019, assuming constant volumes, would change full year 2020 energy expense by $8.1 million.
Commodity Risk. Cement is a commodity, and competition is based principally on price, which is highly sensitive to changes in supply and demand. Prices are often subject to material changes in response to relatively minor fluctuations in supply and demand, general economic conditions and other market conditions beyond the Company’s control. Increases in the production capacity of industry participants or increases in cement imports tend to create an oversupply of such products leading to an imbalance between supply and demand, which can have a negative impact on product prices. There can be no assurance that prices for products sold will not decline in the future or that such declines will not have a material adverse effect on the Company’s business, financial condition and results of operations. Assuming full year 2019 total product revenues for cement of $439 million, a hypothetical 10% change in sales price would impact total revenues by $43.9 million.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures. As of March 31, 2020, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and the operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Company’s management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2020. There were no changes in the Company’s internal control over financial reporting during the most recently completed fiscal quarter that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
Page 37 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
PART II- OTHER INFORMATION
Item 1. Legal Proceedings.
Certain legal proceedings in which the Company is involved are discussed in Note O to the consolidated financial statements and Part I, Item 3 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. See also Note 8 Commitments and Contingencies, Legal and Administrative Proceedings, of this Form 10-Q.
Item 1A. Risk Factors.
The Company’s businesses could be adversely affected by the ongoing COVID-19 pandemic, or any other outbreak of disease, epidemic or pandemic, or similar public health threat, or fear of such an event and its related economic and societal response.
The Company could be negatively impacted by the widespread outbreak of an illness or any other communicable disease, or any other public health crisis that results in economic and trade disruptions. In or around December 2019, a novel strain of coronavirus (COVID-19) was initially reported and in March 2020, the World Health Organization declared COVID-19 a global pandemic. The spreading of COVID-19 and the related governmental orders limiting individuals’ movements and social gatherings as well as requiring many businesses to close for an undetermined period of time are negatively impacting economic activity, consumer confidence and discretionary spending, and market conditions. Further, COVID-19 could continue to negatively affect the health of the Company’s employees, employee productivity, customer purchasing patterns and fulfillment of purchase orders, availability of supplies, pricing for raw materials, and the ability to transport materials via the Company’s distribution network. While the Company’s operations have been treated as “essential” operations under applicable government orders restricting business activities imposed to prevent further outbreak of COVID-19, and accordingly have been permitted to continue to operate, it is possible that they may not continue to be so treated under future government orders, or, even if so treated, site-specific health and safety concerns might otherwise require certain of the Company’s operations to be halted for some period of time. The Company is monitoring the impact of COVID-19 on its operations and on the demand for its products. Due to economic uncertainty related to COVID-19, contractors and customers may delay advancing, or ultimately cancel, building projects. In addition, reduced travel due to remote working and stay-at-home practices, including as a result of governmental orders restricting activity, may continue to negatively impact fuel tax revenues that fund highway projects. While the Company does not currently expect that the virus will have a material adverse effect on its liquidity, it is unable to accurately and fully predict the impact that the COVID-19 will have on its results of operations due to various uncertainties, including the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, actions that may be taken by governmental authorities and other third-parties in response to COVID-19 and the timing and pace of any economic recovery as COVID-19 impacts ultimately abate.
Other than the item listed above, there have been no material changes in the risk factors disclosed in Part I. Item 1A. Risk Factors and Forward-Looking Statements of the Martin Marietta Annual Report on Form 10-K for the year ended December 31, 2019.
Page 38 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
PART II- OTHER INFORMATION
(Continued)
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
ISSUER PURCHASES OF EQUITY SECURITIES
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Total Number of Shares |
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Maximum Number of |
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||
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Purchased as Part of |
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Shares that May Yet |
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Total Number of |
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Average Price |
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Publicly Announced |
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be Purchased Under |
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Period |
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Shares Purchased |
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Paid per Share |
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Plans or Programs |
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the Plans or Programs |
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January 1, 2020 - January 31, 2020 |
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— |
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$ |
— |
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— |
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13,731,568 |
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February 1, 2020 - February 28, 2020 |
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88,600 |
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$ |
234.48 |
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88,600 |
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13,642,968 |
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March 1, 2020 - March 31, 2020 |
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122,016 |
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$ |
239.52 |
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122,016 |
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13,520,952 |
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Total |
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210,616 |
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210,616 |
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Reference is made to the press release dated February 10, 2015 for the December 31, 2014 fourth-quarter and full-year results and announcement of the share repurchase program. The Company’s Board of Directors authorized a maximum of 20 million shares to be repurchased under the program. The program does not have an expiration date but has been temporarily suspended in light of the COVID-19 pandemic.
Item 4. Mine Safety Disclosures.
The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95 to this Quarterly Report on Form 10-Q.
Page 39 of 41
MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES
FORM 10-Q
For the Quarter Ended March 31, 2020
PART II- OTHER INFORMATION
(Continued)
Item 6. Exhibits.
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Exhibit No. |
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Document |
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Third Supplemental Indenture, dated as of March 16, 2020, between Martin Marietta Materials, Inc. and Regions Bank, as trustee, governing the Senior Notes issued by the Company on March 16, 2020, in the form of $500 million aggregate principal amount of 2.500% Senior Notes due 2030 (incorporated by reference to Exhibit 4.2 to the Martin Marietta Materials, Inc. Current Report on Form 8-K, filed on March 16, 2020 (Commission File No. 1-12744)) |
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Form of 2.500% Senior Notes due 2030 (contained in Exhibit 4.1) |
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Certification dated May 5, 2020 of Chief Executive Officer pursuant to Securities and Exchange Act of 1934 rule 13a-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
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Certification dated May 5, 2020 of Chief Financial Officer pursuant to Securities and Exchange Act of 1934 rule 13a-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
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Written Statement dated May 5, 2020 of Chief Executive Officer required by 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
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Written Statement dated May 5, 2020 of Chief Financial Officer required by 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
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Mine Safety Disclosures |
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101.INS |
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Inline XBRL Instance Document – The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
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101.SCH |
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Inline XBRL Taxonomy Extension Schema Document |
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101.CAL |
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Inline XBRL Taxonomy Extension Calculation Linkbase Document |
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101.LAB |
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Inline XBRL Taxonomy Extension Label Linkbase Document |
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101.PRE |
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Inline XBRL Taxonomy Extension Presentation Linkbase Document |
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101.DEF |
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Inline XBRL Taxonomy Extension Definition Linkbase |
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104 |
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Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
Page 40 of 41
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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MARTIN MARIETTA MATERIALS, INC. |
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(Registrant) |
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Date: May 5, 2020 |
By: |
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/s/ James A. J. Nickolas |
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James A. J. Nickolas |
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Sr. Vice President and |
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Chief Financial Officer |
Page 41 of 41
EXHIBIT 31.01
CERTIFICATION PURSUANT TO SECURITIES AND EXCHANGE ACT OF 1934 RULE 13a-14 AS ADOPTED PURSUANT TO SECTION 302 OF SARBANES-OXLEY ACT OF 2002
I, C. Howard Nye, certify that:
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1. |
I have reviewed this Form 10-Q of Martin Marietta Materials, Inc.; |
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2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
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3. |
Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the consolidated financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
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4. |
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
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a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles; |
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c. |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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d. |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
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5. |
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
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a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
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b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
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Date: May 5, 2020 |
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By: |
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/s/ C. Howard Nye |
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C. Howard Nye |
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Chairman, President and |
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Chief Executive Officer |
EXHIBIT 31.02
CERTIFICATION PURSUANT TO SECURITIES AND EXCHANGE ACT OF 1934 RULE 13a-14 AS ADOPTED PURSUANT TO SECTION 302 OF SARBANES-OXLEY ACT OF 2002
I, James A. J. Nickolas, certify that:
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1. |
I have reviewed this Form 10-Q of Martin Marietta Materials, Inc.; |
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2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
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3. |
Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the consolidated financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
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4. |
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
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a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles; |
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c. |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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d. |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
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5. |
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
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a. |
all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
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b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
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Date: May 5, 2020 |
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By: |
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/s/ James A. J. Nickolas |
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James A. J. Nickolas |
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|
|
|
Sr. Vice President and |
|
|
|
|
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Chief Financial Officer |
EXHIBIT 32.01
Written Statement Pursuant to 18 U.S.C. 1350,
As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the Quarterly Report on Form 10-Q for the period ended March 31, 2020 (the “Report”) of Martin Marietta Materials, Inc. (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof, I, C. Howard Nye, the Chief Executive Officer of the Registrant, certify, to the best of my knowledge, that:
|
|
(1) |
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
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(2) |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
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/s/ C. Howard Nye |
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C. Howard Nye |
|
Chairman, President and |
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Chief Executive Officer |
Dated: May 5, 2020
A signed original of this written statement required by Section 906 has been provided to Martin Marietta Materials, Inc. and will be retained by Martin Marietta Materials, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
EXHIBIT 32.02
Written Statement Pursuant to 18 U.S.C. 1350,
As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the Quarterly Report on Form 10-Q for the period ended March 31, 2020 (the “Report”) of Martin Marietta Materials, Inc. (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof, I, James A. J. Nickolas, the Chief Financial Officer of the Registrant, certify, to the best of my knowledge, that:
|
|
(1) |
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
|
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(2) |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
|
/s/ James A. J. Nickolas |
|
James A. J. Nickolas |
|
Sr. Vice President and |
|
Chief Financial Officer |
Dated: May 5, 2020
A signed original of this written statement required by Section 906 has been provided to Martin Marietta Materials, Inc. and will be retained by Martin Marietta Materials, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
EXHIBIT 95
MINE SAFETY DISCLOSURES
The operation of the Corporation’s domestic aggregates quarries and mines is subject to regulation by the federal Mine Safety and Health Administration (MSHA) under the Federal Mine Safety and Health Act of 1977 (the Mine Act). MSHA inspects the Corporation’s quarries and mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders may be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed.
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the Corporation is required to present information regarding certain mining safety and health citations which MSHA has issued with respect to its aggregates mining operations in its periodic reports filed with the Securities and Exchange Commission (SEC). In evaluating this information, consideration should be given to factors such as: (i) the number of citations and orders will vary depending on the size of the quarry or mine and types of operations (underground or surface), (ii) the number of citations issued will vary from inspector to inspector and location to location, and (iii) citations and orders can be contested and appealed, and in that process, may be reduced in severity and amount, and are sometimes dismissed.
The Corporation has provided the information below in response to the SEC’s rules and regulations issued under the provisions of the Dodd-Frank Act. The disclosures reflect U.S. mining operations only, as the requirements of the Dodd-Frank Act and the SEC rules and regulations thereunder do not apply to the Corporation’s quarries and mines operated outside the United States.
The Corporation presents the following items regarding certain mining safety and health matters for the three months ended March 31, 2020:
|
• |
Total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard under section 104 of the Mine Act for which the Corporation has received a citation from MSHA (hereinafter, “Section 104 S&S Citations”). If MSHA determines that a violation of a mandatory health or safety standard is likely to result in a reasonably serious injury or illness under the unique circumstance contributed to by the violation, MSHA will classify the violation as a “significant and substantial” violation (commonly referred to as an S&S violation). MSHA inspectors will classify each citation or order written as an S&S violation or not. |
|
• |
Total number of orders issued under section 104(b) of the Mine Act (hereinafter, “Section 104(b) Orders”). These orders are issued for situations in which MSHA determines a previous violation covered by a Section 104(a) citation has not been totally abated within the prescribed time period, so a further order is needed to require the mine operator to immediately withdraw all persons (except authorized persons) from the affected area of a quarry or mine. |
|
or health hazard, but the conditions do not cause imminent danger, and the MSHA inspector finds that the violation is caused by an unwarranted failure of the operator to comply with the health and safety standards. |
|
• |
Total number of flagrant violations under section 110(b)(2) of the Mine Act (hereinafter, “Section 110(b)(2) Violations”). These violations are penalty violations issued if MSHA determines that violations are “flagrant”, for which civil penalties may be assessed. A “flagrant” violation means a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury. |
|
• |
Total number of imminent danger orders issued under section 107(a) of the Mine Act (hereinafter, “Section 107(a) Orders”). These orders are issued for situations in which MSHA determines an imminent danger exists in the quarry or mine and results in orders of immediate withdrawal of all persons (except certain authorized persons) from the area of the quarry or mine affected by its condition until the imminent danger and the underlying conditions causing the imminent danger no longer exist. |
|
• |
Total dollar value of proposed assessments from MSHA under the Mine Act. These are the amounts of proposed assessments issued by MSHA with each citation or order for the time period covered by the reports. Penalties are assessed by MSHA according to a formula that considers a number of factors, including the mine operator’s history, size, negligence, gravity of the violation, good faith in trying to correct the violation promptly, and the effect of the penalty on the operator’s ability to continue in business. |
|
• |
Total number of mining-related fatalities. Mines subject to the Mine Act are required to report all fatalities occurring at their facilities unless the fatality is determined to be “non-chargeable” to the mining industry. The final rules of the SEC require disclosure of mining-related fatalities at mines subject to the Mine Act. Only fatalities determined by MSHA not to be mining-related may be excluded. |
|
• |
Receipt of written notice from MSHA of a pattern (or a potential to have such a pattern) of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of other mine health or safety hazards under Section 104(e) of the Mine Act. If MSHA determines that a mine has a “pattern” of these types of violations, or the potential to have such a pattern, MSHA is required to notify the mine operator of the existence of such a thing. |
|
• |
Legal actions before the Federal Mine Safety and Health Review Commissions pending as of the last day of period. |
|
• |
Legal actions before the Federal Mine Safety and Health Review Commissions initiated during period. |
|
• |
Legal actions before the Federal Mine Safety and Health Review Commissions resolved during period. |
The Federal Mine Safety and Health Review Commission (the Commission) is an independent adjudicative agency that provides administrative trial and appellate review of legal disputes arising under the Mine Act. The cases may involve, among other questions, challenges by operators to citations, orders and
penalties they have received from MSHA, or complaints of discrimination by miners under Section 105 of the Mine Act. Appendix 1 shows, for each of the Corporation’s quarries and mines identified, as of March 31, 2020, the number of legal actions pending before the Commission, along with the number of legal actions initiated before the Commission during the quarter as well as resolved during the quarter. In addition, Appendix 1 includes a footnote to the column for legal actions before the Commission pending as of the last day of the period, which footnote breaks down that total number of legal actions pending by categories according to the type of proceeding in accordance with various categories established by the Procedural Rules of the Commission.
Appendix 1
|
Location |
MSHA ID |
Section 104 S&S Citations (#) |
Section 104(b) Orders (#) |
Section 104(d) Citations and Orders (#) |
Section 110(b)(2) Violations (#) |
Section 107(a) Orders (#) |
|
Total Dollar Value of MSHA Assessment/ $Proposed |
|
Total Number of Mining Related Fatalities (#) |
Received Notice of Pattern of Violation Under Section 104(e) (yes/no) |
Received Notice of Potential to have Pattern under Section 104(e) (yes/no) |
Legal Actions Pending as of Last Day of Period (#)* |
Legal Actions Instituted During Period (#) |
Legal Actions Resolved During Period (#) |
||
|
Alexander Quarry |
3101636 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Amelia Quarry |
4407372 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
American Stone |
3100189 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Anderson Creek Quarry |
4402963 |
0 |
0 |
0 |
0 |
0 |
|
$ |
246 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Arrowood Quarry |
3100059 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Asheboro Quarry |
3100066 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Bakers Quarry |
3100071 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Belgrade Quarry |
3100064 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Benson Quarry |
3101979 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Berkeley Quarry |
3800072 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Bessemer City Quarry |
3101105 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Black Ankle Quarry |
3102220 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Bonds Quarry |
3101963 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Boonesboro Quarry |
1800024 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Burlington Quarry |
3100042 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Caldwell Quarry |
3101869 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Calhoun Sand |
3800716 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
1 |
0 |
0 |
|
|
Castle Hayne Quarry |
3100063 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Cayce |
3800016 |
0 |
0 |
0 |
0 |
0 |
|
$ |
258 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Central Rock Quarry |
3100050 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Charlotte Quarry |
3100057 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Churchville Quarry |
1800012 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Clarks Quarry |
3102009 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Cumberland Quarry |
3102237 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Denver Quarry |
3101971 |
0 |
0 |
0 |
0 |
0 |
|
$ |
123 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Doswell Quarry VA |
4400045 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Appendix 1
|
3102021 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
||
|
Edmund Sand |
3800662 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Fountain Quarry |
3100065 |
0 |
0 |
0 |
0 |
0 |
|
$ |
647 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Franklin Quarry |
3102130 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Frederick Quarry |
1800013 |
0 |
0 |
0 |
0 |
0 |
|
$ |
123 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Fuquay Quarry |
3102055 |
1 |
0 |
0 |
0 |
0 |
|
$ |
289 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Garner Quarry |
3100072 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Georgetown II Quarry |
3800525 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Greensboro Portable Plt |
3102336 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Greensboro Portable Plt II |
3102335 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Hickory Quarry |
3100043 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Hicone |
3102088 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Jamestown Quarry |
3100051 |
0 |
0 |
0 |
0 |
0 |
|
$ |
121 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Kannapolis Quarry |
3100070 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Kent Sand & Gravel |
1800745 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Kings Mountain Quarry |
3100047 |
0 |
0 |
0 |
0 |
0 |
|
$ |
121 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Lemon Springs Quarry |
3101104 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Loamy Sand Gravel |
3800721 |
0 |
0 |
0 |
0 |
0 |
|
$ |
181 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Maiden Quarry |
3102125 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Mallard Creek Quarry |
3102006 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Matthews Quarry |
3102084 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Medford Quarry |
1800035 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Midlothian Quarry |
4403767 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Misc Greensboro District |
B8611 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
North Columbia |
3800146 |
0 |
0 |
0 |
0 |
0 |
|
$ |
521 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
North East Quarry |
1800417 |
0 |
0 |
0 |
0 |
0 |
|
$ |
246 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Old Charleston Sand |
3800702 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Onslow Quarry |
3102120 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Pinesburg Quarry |
1800021 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Pomona Quarry |
3100052 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Raleigh Durham Quarry |
3101941 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Red Hill Quarry |
4400072 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Reidsville Quarry |
3100068 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Rock Hill Quarry |
3800026 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Appendix 1
|
3102038 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
||
|
Statesville Quarry |
3100055 |
0 |
0 |
0 |
0 |
0 |
|
$ |
185 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Texas Quarry |
1800009 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Thomasville Quarry |
3101475 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Warfordsburg Quarry |
3600168 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Wilmington Sand |
3101308 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Wilson Quarry |
3102230 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Woodleaf Quarry |
3100069 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
(45) North Indianapolis SURFACE |
1200002 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Apple Grove S G |
3301676 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Belmont Sand |
1201911 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Bowling Green North Quarry |
1500065 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Bowling Green South Quarry |
1500025 |
1 |
0 |
0 |
0 |
0 |
|
$ |
377 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Burning Springs Mine |
4608862 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Carmel Sand |
1202124 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Cedarville Quarry |
3304072 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Cloverdale Quarry |
1201744 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Cumberland Quarry |
1500037 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
E Town Sand Gravel |
3304279 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Fairfield Quarry |
3301396 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Harlan Quarry |
1500071 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Hartford Quarry |
1500095 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Kentucky Ave Mine |
1201762 |
1 |
0 |
0 |
0 |
0 |
|
$ |
1,209 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Kokomo Mine |
1202105 |
0 |
0 |
0 |
0 |
0 |
|
$ |
246 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Kokomo Sand |
1202203 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Kokomo Stone |
1200142 |
0 |
0 |
0 |
0 |
0 |
|
$ |
363 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Noblesville Sand |
1201994 |
0 |
0 |
0 |
0 |
0 |
|
$ |
250 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Noblesville Stone |
1202176 |
0 |
0 |
0 |
0 |
0 |
|
$ |
4,194 |
|
0 |
no |
no |
1 |
0 |
0 |
|
|
North Indianapolis Quarry |
1201993 |
2 |
0 |
0 |
0 |
0 |
|
$ |
2,149 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Petersburg, Ky Gravel |
1516895 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Phillipsburg Quarry |
3300006 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Shamrock SG |
3304011 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Spring Valley Cook Rd SG |
3304534 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Appendix 1
|
3301678 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
||
|
Waverly Sand |
1202038 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Xenia Gravel |
3301393 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Appling Quarry |
901083 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Auburn Al Quarry |
100006 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Auburn, GA Quarry |
900436 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Augusta, GA Quarry |
900065 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Ball Ground Quarry |
900955 |
0 |
0 |
0 |
0 |
0 |
|
$ |
298 |
|
0 |
no |
no |
1 |
0 |
0 |
|
|
Calhoun Quarry |
4003395 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Chattanooga Quarry |
4003159 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Cumming Quarry |
900460 |
0 |
0 |
0 |
0 |
0 |
|
$ |
1,309 |
|
0 |
no |
no |
3 |
0 |
1 |
|
|
Douglasville Quarry |
900024 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Edgefield Quarry |
3800738 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Jefferson Quarry |
901106 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Junction City Quarry |
901029 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Lithonia Quarry |
900023 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Maylene Quarry |
100634 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Morgan County |
901126 |
1 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Newton Quarry |
900899 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
O'Neal Plant Co 19 |
103076 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Paulding Quarry |
901107 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Perry Quarry |
801083 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Red Oak Quarry |
900069 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Ruby Quarry |
900074 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Six Mile Quarry |
901144 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
St. Marys Sand Company |
901199 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Tyrone Quarry |
900306 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Vance Quarry Co 19 |
103022 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Warrenton Quarry |
900580 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Alden Portable Plant #2 |
1302033 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Alden Portable Sand |
1302037 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Alden Quarry |
1300228 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Ames Mine |
1300014 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Cedar Rapids Quarry |
1300122 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Appendix 1
|
1300150 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
||
|
Des Moines Portable #2 |
1300932 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Dubois Quarry |
2501046 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Durham Mine |
1301225 |
1 |
0 |
0 |
0 |
0 |
|
$ |
946 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Earlham Quarry |
1302123 |
0 |
0 |
0 |
0 |
0 |
|
$ |
246 |
|
0 |
no |
no |
1 |
0 |
1 |
|
|
Ferguson Quarry |
1300124 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Fort Calhoun UG |
2501300 |
1 |
0 |
0 |
0 |
0 |
|
$ |
512 |
|
0 |
no |
no |
2 |
2 |
0 |
|
|
Fort Dodge Mine |
1300032 |
0 |
0 |
0 |
0 |
0 |
|
$ |
809 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Greenwood Quarry New |
2300141 |
1 |
0 |
0 |
0 |
0 |
|
$ |
121 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Iowa Grading 2 |
1302316 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Linn County Sand |
1302208 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Malcom Mine |
1300112 |
0 |
0 |
0 |
0 |
0 |
|
$ |
363 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Marshalltown Sand |
1300718 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Midwest Division OH |
A2354 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Moore Quarry |
1302188 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
New Harvey Sand |
1301778 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
North Valley Sand |
2501271 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Ottawa Quarry New |
1401590 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Pedersen Quarry |
1302192 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Plant 854 |
1302126 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Portland Quarry |
1302122 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Raccoon River Sand |
1302315 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Randolph Mine |
2302308 |
2 |
0 |
0 |
0 |
0 |
|
$ |
217 |
|
0 |
no |
no |
1 |
1 |
1 |
|
|
Reasnor Sand |
1300814 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Saylorville Sand |
1302290 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
St Cloud Quarry |
2100081 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Stamper Mine |
2302232 |
2 |
0 |
0 |
0 |
0 |
|
$ |
1,852 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Sully Mine |
1300063 |
0 |
0 |
0 |
0 |
0 |
|
$ |
123 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Sunflower Qy Co 61 |
1401556 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Weeping Water Mine |
2500998 |
3 |
0 |
0 |
0 |
0 |
|
$ |
20,959 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
West Center Sand |
2501231 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Yellow Medicine Quarry |
2100033 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Beckmann Quarry |
4101335 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Bedrock Sand Gravel |
4103283 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Appendix 1
|
4104019 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
||
|
Black Rock Quarry |
300011 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Black Spur Quarry |
4104159 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Blake Quarry |
1401584 |
1 |
0 |
0 |
0 |
0 |
|
$ |
1,140 |
|
0 |
no |
no |
0 |
1 |
0 |
|
|
Bridgeport Stone |
4100007 |
1 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Broken Bow SG |
3400460 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Chico Quarry |
4103360 |
0 |
0 |
0 |
0 |
0 |
|
$ |
123 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Davis Quarry |
3401299 |
0 |
0 |
0 |
0 |
0 |
|
$ |
322 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Garfield SG |
4103909 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Garwood Gravel |
4102886 |
1 |
0 |
0 |
0 |
0 |
|
$ |
1,486 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
GMS TXI |
C335 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Hatton Quarry |
301614 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Helotes |
4103137 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Highway 211 Quarry |
4103829 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Hondo |
4104708 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Hondo West |
4104090 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Hugo Quarry |
3400061 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Hunter Stone |
4105230 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Idabel Quarry |
3400507 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Jones Mill Quarry |
301586 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Koontz McCombs Pit |
4105048 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Medina Rock Rail |
4105170 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Mill Creek Limestone |
3401859 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Mill Creek Quarry |
3401285 |
1 |
0 |
0 |
0 |
0 |
|
$ |
482 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Perryville Aggregates |
1601417 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Poteet Sand |
4101342 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Rio Medina |
4103594 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
San Pedro Quarry |
4101337 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Sawyer Quarry |
3401634 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Smithson Valley Quarry |
4104108 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Snyder Quarry |
3401651 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
South Texas Port #2 |
4104204 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Tin Top SG |
4102852 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Washita Quarry |
3402049 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Appendix 1
|
4104363 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
||
|
Woodworth Aggregates |
1601070 |
0 |
0 |
0 |
0 |
0 |
|
$ |
123 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Granite Canyon Quarry |
4800018 |
2 |
0 |
0 |
0 |
0 |
|
$ |
3,984 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Greeley 35th Ready Mix |
503215 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Greeley 35th Sand Gravel |
504613 |
0 |
0 |
0 |
0 |
0 |
|
$ |
288 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Guernsey Quarry |
4800004 |
0 |
0 |
0 |
0 |
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Milford Quarry Utah |
4202177 |
1 |
0 |
0 |
0 |
0 |
|
$ |
535 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Parkdale Quarry |
504635 |
0 |
0 |
0 |
0 |
0 |
|
$ |
1,562 |
|
0 |
no |
no |
0 |
0 |
0 |
|
|
Parsons Sand Gravel |
504382 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Pacific Quarry |
4500844 |
1 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
PC Portable Plant 4 |
4801565 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Penrose Sand and Gravel |
504509 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
123 |
|
0 |
no |
no |
0 |
0 |
0 |
|
Platte Sand & Gravel |
504418 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Portable Crushing |
503984 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
246 |
|
0 |
no |
no |
0 |
0 |
0 |
|
Portable Plant 1 |
504359 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Portable Plant 21 |
504520 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Red Canyon Quarry |
504136 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Riverbend Sand Gravel |
504841 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
246 |
|
0 |
no |
no |
0 |
0 |
0 |
|
Spanish Springs Quarry Co 2 |
2600803 |
2 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Spec Agg Quarry |
500860 |
1 |
0 |
0 |
0 |
|
0 |
|
$ |
1,486 |
|
0 |
no |
no |
0 |
0 |
0 |
|
Taft Sand Gravel |
504526 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Taft Shop |
504735 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Hunter Cement |
4102820 |
4 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Midlothian Cement |
4100071 |
1 |
0 |
0 |
0 |
|
0 |
|
$ |
3,099 |
|
0 |
no |
no |
1 |
0 |
0 |
|
Geology and Exploration |
B7127 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Salisbury Shop |
3101235 |
0 |
0 |
0 |
0 |
|
0 |
|
$ |
- |
|
0 |
no |
no |
0 |
0 |
0 |
|
Woodville Stone |
3300156 |
1 |
0 |
0 |
0 |
|
0 |
|
$ |
4,149 |
|
0 |
no |
no |
0 |
0 |
0 |
|
TOTAL |
|
33 |
0 |
0 |
0 |
|
0 |
|
$ |
58,998 |
|
0 |
|
|
11 |
4 |
3 |
* Of the 11 legal actions pending on March 31, 2020, six were contests of citations or orders referenced in Subpart B of CFR Part 2700, which includes contests of citations and orders issued under Section 104 of the Mine Act and contests of imminent danger orders under Section 107 of the Mine Act and five were a contest of proposed penalties referenced in Subpart C of 29 CFR Part 2700, which are administrative proceedings before the Commission challenging a civil penalty that MSHA has proposed for the violation contained in a citation or order.
Significant Accounting Policies |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Significant Accounting Policies |
Organization Martin Marietta Materials, Inc. (the Company or Martin Marietta) is a natural resource-based building materials company. The Company supplies aggregates (crushed stone, sand and gravel) through its network of approximately 300 quarries, mines and distribution yards in 27 states, Canada and the Bahamas. In the southwestern and western United States, Martin Marietta also provides cement and downstream products, namely, ready mixed concrete, asphalt and paving services, in vertically-integrated structured markets where the Company has a leading aggregates position. The Company’s heavy-side building materials are used in infrastructure, nonresidential and residential construction projects. Aggregates are also used in agricultural, utility and environmental applications and as railroad ballast. The aggregates, cement, ready mixed concrete and asphalt and paving product lines are reported collectively as the “Building Materials” business. Effective January 1, 2020, the Company moved the management of its one quarry in the state of Washington from the Mid-America Group to the West Group, resulting in an immaterial change to its reportable segments. The Company’s Building Materials business includes three reportable segments: the Mid-America Group, the Southeast Group and the West Group.
The Company has a Magnesia Specialties business with manufacturing facilities in Manistee, Michigan, and Woodville, Ohio. The Magnesia Specialties business produces magnesia-based chemicals products used in industrial, agricultural and environmental applications, and dolomitic lime sold primarily to customers in the steel and mining industries. Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and in Article 10 of Regulation S-X. The Company has continued to follow the accounting policies set forth in the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, the interim consolidated financial information provided herein reflects all adjustments, consisting of normal recurring accruals, necessary for a fair statement of the results of operations, financial position and cash flows for the interim periods. The consolidated results of operations for the three months ended March 31, 2020 are not indicative of the results expected for other interim periods or the full year. The consolidated balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The preparation of the Company’s consolidated financial statements requires management to make certain estimates and assumptions about future events. As future events and their effects, including the impact of the coronavirus (COVID-19) pandemic and the related societal response, cannot be fully determined with precision, actual results could differ significantly from estimates. Changes in estimates are reflected in the consolidated financial statements in the period in which the change in estimate occurs. New Accounting Pronouncement Credit Losses Effective January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (ASU 2016-13), which includes a current expected credit loss (CECL) model that requires an entity to estimate credit losses expected over the life of an exposure or pool of exposures based on historical information, current information and reasonable and supportable forecasts at the time the asset is recognized and is remeasured at each reporting period. ASU 2016-13 primarily relates to the Company’s receivables, but the scope also includes retainage and contract assets related to its paving business. The adoption of ASU 2016-13 did not have a material impact on the Company’s financial position or statement of earnings and comprehensive earnings. The Company amended its allowance for credit losses policy, which follows, for the implementation of ASU 2016-13. The Company records an allowance for credit losses, which includes a provision for probable losses based on historical write-offs and a specific reserve for accounts deemed at risk. The allowance is the Company’s estimate for receivables as of the balance sheet date that ultimately will not be collected. Any changes in the allowance are reflected in earnings in the period in which the change occurs. The Company writes-off accounts receivable when it becomes probable, based upon customer facts and circumstances, that such amounts will not be collected. Consolidated Comprehensive Earnings/Loss and Accumulated Other Comprehensive Loss Consolidated comprehensive earnings/loss and accumulated other comprehensive loss consist of consolidated net earnings or loss; adjustments for the funded status of pension and postretirement benefit plans; and foreign currency translation adjustments; and are presented in the Company’s consolidated statements of earnings and comprehensive earnings. Comprehensive earnings attributable to Martin Marietta is as follows:
Changes in accumulated other comprehensive loss, net of tax, are as follows:
Changes in net noncurrent deferred tax assets recorded in accumulated other comprehensive loss are as follows:
Reclassifications out of accumulated other comprehensive loss are as follows:
Earnings per Common Share The numerator for basic and diluted earnings per common share is net earnings attributable to Martin Marietta Materials, Inc. reduced by dividends and undistributed earnings attributable to certain of the Company’s stock-based compensation. If there is a net loss, no amount of the undistributed loss is attributed to unvested participating securities. The denominator for basic earnings per common share is the weighted-average number of common shares outstanding during the period. Diluted earnings per common share are computed assuming that the weighted-average number of common shares is increased by the conversion, using the treasury stock method, of awards to be issued to employees and nonemployee members of the Company’s Board of Directors under certain stock-based compensation arrangements if the conversion is dilutive. For the three months ended March 31, 2020 and 2019, the diluted per-share computations reflect the number of common shares outstanding to include the number of additional shares that would have been outstanding if the potentially dilutive common shares had been issued. The following table reconciles the numerator and denominator for basic and diluted earnings per common share:
|
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Supplemental Cash Flow Information - Narrative (Detail) $ in Millions |
3 Months Ended |
|---|---|
|
Mar. 31, 2020
USD ($)
| |
| Supplemental Cash Flow Elements [Abstract] | |
| Repayment of loans related to life insurance policies | $ 7.2 |
Supplemental Cash Flow Information |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Cash Flow Information |
Noncash investing and financing activities are as follows:
Supplemental disclosures of cash flow information are as follows:
During the quarter ended March 31, 2020, the Company repaid $7.2 million of loans related to its company-owned life insurance policies. The repayment is included in the ‘Investments in life insurance contracts, net’ in the investing activities of the consolidated statement of cash flows. |
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Inventories, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventories, Net |
|
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Pension and Postretirement Benefits |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Compensation And Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension and Postretirement Benefits |
The estimated components of the recorded net periodic benefit cost (credit) for pension and postretirement benefits are as follows:
The service cost component of net periodic benefit cost (credit) is included in cost of revenues – products and services and selling, general and administrative expenses. All other components are included in other nonoperating expenses and (income), net, in the consolidated statements of earnings and comprehensive earnings. |
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Revenue Recognition (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue From Contract With Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Company's Total Revenues by Category for each Reportable Segment | The following table presents the Company’s total revenues by category for each reportable segment. Prior-year segment information has been reclassified to conform to the reporting structure change described in Note 1.
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| Summary of Information About the Company's Contract Balances | The following table presents information about the Company’s contract balances:
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Business Segments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Data for Continuing Operation for Company's Reportable Business Segments |
The following table displays selected financial data for the Company’s reportable business segments. Total revenues, as presented on the consolidated statements of earnings and comprehensive earnings, exclude intersegment revenues which represent sales from one segment to another segment, which are eliminated. Prior-year segment information has been reclassified to conform to the reporting structure change described in Note 1.
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Business Segments - Additional Information (Detail) |
3 Months Ended |
|---|---|
|
Mar. 31, 2020
Segment
| |
| Segment Reporting [Abstract] | |
| Reportable business segments | 3 |
Financial Instruments - Additional Information (Detail) $ in Millions |
3 Months Ended | |
|---|---|---|
|
Mar. 31, 2020
USD ($)
Customer
|
Dec. 31, 2019
USD ($)
|
|
| Debt Instrument [Line Items] | ||
| Long-term debt, carrying values | $ 3,263.8 | $ 2,773.6 |
| Long-term debt, fair values | $ 3,230.0 | $ 2,940.0 |
| Customer Concentration Risk | Total Revenues | ||
| Debt Instrument [Line Items] | ||
| Number of customer accounted for 10% or more of consolidated total revenues | Customer | 0 | |
| Customer Concentration Risk | Total Revenues | Minimum | ||
| Debt Instrument [Line Items] | ||
| Percentage of concentration risk | 10.00% |
Inventories, Net (Tables) |
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Inventories Net |
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Revenues and Gross Profit (Tables) |
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| Revenues And Gross Profit [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Revenues and Gross Profit by Product Line | The following table, which is reconciled to consolidated amounts, provides total revenues and gross profit by product line.
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Commitments and Contingencies - Additional Information (Detail) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Dec. 31, 2019 |
|
| Commitments and Contingencies [Line Items] | ||
| Guarantee of affiliate's obligations | $ 12,500,000 | |
| Due from affiliate | 11,200,000 | |
| Outstanding letters of credit | 32,900,000 | |
| Revolving Facility | ||
| Commitments and Contingencies [Line Items] | ||
| Outstanding letters of credit | 2,300,000 | $ 2,300,000 |
| Interest-only loan | ||
| Commitments and Contingencies [Line Items] | ||
| Due from affiliate | $ 6,000,000.0 | $ 6,000,000.0 |
| Maturity date | Dec. 31, 2022 | |
| Interest-only loan | London Interbank Offered Rate(LIBOR) | ||
| Commitments and Contingencies [Line Items] | ||
| Basis spread on variable rate | 1.75% | |
| Revolving Line Of Credit Expires In August 2015 | ||
| Commitments and Contingencies [Line Items] | ||
| Line of credit maturity period | 2022-03 |
Revenue Recognition |
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| Revenue From Contract With Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition |
Total revenues include sales of products and services to customers, net of any discounts or allowances, and freight revenues. Product revenues are recognized when control of the promised good is transferred to the customer, typically when finished products are shipped. Intersegment and interproduct revenues are eliminated in consolidation. Service revenues are derived from the paving business and recognized using the percentage-of-completion method under the revenue-cost approach. Freight revenues reflect delivery arranged by the Company using a third party on behalf of the customer and are recognized consistently with the timing of the product revenues. Performance Obligations. Performance obligations are contractual promises to transfer or provide a distinct good or service for a stated price. The Company’s product sales agreements are single-performance obligations that are satisfied at a point in time. Performance obligations within paving service agreements are satisfied over time, primarily ranging from one day to 21 months. For product revenues and freight revenues, customer payment terms are generally 30 days from invoice date. Customer payments for the paving operations are based on a contractual billing schedule and are due 30 days from invoice date. Future revenues from unsatisfied performance obligations at March 31, 2020 and 2019 were $212.7 million and $149.4 million, respectively, where the remaining periods to complete these obligations ranged from one month to 21 months for both periods. Revenue by Category. The following table presents the Company’s total revenues by category for each reportable segment. Prior-year segment information has been reclassified to conform to the reporting structure change described in Note 1.
Service revenues, which include paving operations located in Colorado, were $14.5 million and $9.9 million for the three months ended March 31, 2020 and 2019, respectively. Contract Balances. Costs in excess of billings relate to the conditional right to consideration for completed contractual performance and are contract assets on the consolidated balance sheets. Costs in excess of billings are reclassified to accounts receivable when the right to consideration becomes unconditional. Billings in excess of costs relate to customers invoiced in advance of contractual performance and are contract liabilities on the consolidated balance sheets. The following table presents information about the Company’s contract balances:
Revenues recognized from the beginning balance of contract liabilities for the three months ended March 31, 2020 and 2019 were $4.4 million and $3.8 million, respectively. Retainage, which primarily relates to the paving services, represents amounts that have been billed to customers but payment withheld until final acceptance by the customer of the performance obligation. Included in other current assets on the Company’s consolidated balance sheets, retainage was $8.5 million and $10.2 million at March 31, 2020 and December 31, 2019, respectively. Warranties. The Company’s construction contracts generally contain warranty provisions typically for a period of nine months to one year after project completion and cover materials, design or workmanship defects. Historically, the Company has not experienced material costs for warranties. The ready mixed concrete product line carries longer warranty periods, for which the Company has accrued an estimate of warranty cost based on experience with the type of work and any known risks relative to the project. In total, warranty costs were not material to the Company’s consolidated results of operations for the three months ended March 31, 2020 and 2019. Policy Elections. When the Company arranges third-party freight to deliver products to customers, the Company has elected the delivery to be a fulfillment activity rather than a separate performance obligation. Further, the Company acts as a principal in the delivery arrangements and, as required by the accounting standard, the related revenues and costs are presented gross and are included in the consolidated statements of earnings. |
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Other Operating Expenses and (Income), Net - Additional Information (Detail) $ in Millions |
3 Months Ended |
|---|---|
|
Mar. 31, 2019
USD ($)
| |
| Other Income And Expenses [Abstract] | |
| Reversal of accruals for unclaimed property contingencies | $ 4.2 |
Significant Accounting Policies - Noncurrent Deferred Tax Assets Recorded in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
| Equity [Abstract] | ||
| Balance at beginning of period, Pension and Postretirement Benefit Plans | $ 85.2 | $ 84.2 |
| Tax effect of other comprehensive earnings, Pension and Postretirement Benefit Plans | (0.8) | (0.9) |
| Balance at end of period, Pension and Postretirement Benefit Plans | $ 84.4 | $ 83.3 |
Long-Term Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt |
On March 5, 2020, the Company issued $500 million aggregate principal amount of 2.500% Senior Notes due 2030 (the 2.500% Senior Notes). The 2.500% Senior Notes are carried net of original issue discount, which is being amortized by the effective interest method over the life of the issue. The 2.500% Senior Notes are redeemable prior to December 15, 2029 at their make-whole redemption price at a discount rate of the U.S. Treasury Rate plus 30 basis points, or on or after December 15, 2029 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest to the date of redemption. The Company intends to use the net proceeds for general corporate purposes, including the repayment at maturity of $300 million of existing Floating Rate Notes due May 2020, which was classified as current long-term debt on the consolidated balance sheet at March 31, 2020. At December 31, 2019, the Floating Rate Senior Notes due May 2020 were classified as noncurrent long-term debt on the consolidated balance sheet as the Company had the intent and ability to refinance the notes on a long-term basis. The Company, through a wholly-owned special-purpose subsidiary, has a $400 million trade receivable securitization facility (the Trade Receivable Facility) which matures on September 23, 2020. The Trade Receivable Facility, with Truist Bank, Regions Bank, PNC Bank, N.A., The Bank of Tokyo-Mitsubishi UFJ, LTD. (New York Branch), and certain other lenders that may become a party to the facility from time to time, is backed by eligible trade receivables, as defined, and is limited to the lesser of the facility limit or the borrowing base, as defined. These receivables are originated by the Company and then sold to the wholly-owned special-purpose subsidiary by the Company. The Company continues to be responsible for the servicing and administration of the receivables purchased by the wholly-owned special-purpose subsidiary. Borrowings under the Trade Receivable Facility bear interest at a rate equal to one-month London Interbank Offered Rate, or LIBOR, plus 0.725%, subject to change in the event that this rate no longer reflects the lender’s cost of lending. The Trade Receivable Facility contains a cross-default provision to the Company’s other debt agreements. The Company has a $700 million senior unsecured revolving facility (the Revolving Facility) with JPMorgan Chase Bank, N.A., as Administrative Agent, Truist Bank, Deutsche Bank Securities, Inc., and Wells Fargo Bank, N.A., as Co-Syndication Agents, and the lenders party thereto. Borrowings under the Revolving Facility bear interest, at the Company’s option, at rates based upon LIBOR or a base rate, plus, for each rate, a margin determined in accordance with a ratings-based pricing grid. There were no borrowings outstanding under the Revolving Facility at March 31, 2020 or December 31, 2019. The Revolving Facility requires the Company’s ratio of consolidated debt-to-consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), as defined by the Revolving Facility, for the trailing-twelve months (the Ratio) to not exceed 3.50x as of the end of any fiscal quarter, provided that the Company may exclude from the Ratio debt incurred in connection with certain acquisitions during such quarter or the three preceding quarters so long as the Ratio calculated without such exclusion does not exceed 3.75x. Additionally, if there are no amounts outstanding under the Revolving Facility and the Trade Receivable Facility, consolidated debt, including debt for which the Company is a co-borrower, may be reduced by the Company’s unrestricted cash and cash equivalents in excess of $50 million, such reduction not to exceed $200 million, for purposes of the covenant calculation. The Company was in compliance with this covenant at March 31, 2020. The Revolving Facility expires on December 5, 2024, with any outstanding principal amounts, together with interest accrued thereon, due in full on that date. Available borrowings under the Revolving Facility are reduced by any outstanding letters of credit issued by the Company under the Revolving Facility. The Company had $2.3 million of outstanding letters of credit issued under the Revolving Facility at March 31, 2020 and December 31, 2019. |
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Commitments and Contingencies |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2020 | |||
| Commitments And Contingencies Disclosure [Abstract] | |||
| Commitments and Contingencies |
Legal and Administrative Proceedings The Company is engaged in certain legal and administrative proceedings incidental to its normal business activities, including matters relating to the protection of the environment. The Company considers various factors in assessing the probable outcome of each matter, including but not limited to the nature of existing legal proceedings and claims, the asserted or possible damages, which court the case is in and whether it is a jury trial, the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, the Company’s experience in similar cases and the experience of other companies, the facts available to the Company at the time of assessment, and how the Company intends to respond to the proceeding or claim. The Company’s assessment of these factors may change over time as proceedings or claims progress. The Company believes the probability is remote that the outcome of any currently pending legal or administrative proceeding will result in a material loss to the Company as a whole, based on currently available facts. Borrowing Arrangements with Affiliate The Company is a co-borrower with an unconsolidated affiliate for a $12.5 million revolving line of credit agreement with Truist Bank, of which $11.2 million was outstanding as of March 31, 2020 and has a maturity date of March 2022. The affiliate has agreed to reimburse and indemnify the Company for any payments and expenses the Company may incur from this agreement. The Company holds a lien on the affiliate’s membership interest in a joint venture as collateral for payment under the revolving line of credit. In addition, the Company has a $6.0 million interest-only loan, due December 31, 2022, outstanding from this unconsolidated affiliate as of March 31, 2020 and December 31, 2019. The interest rate is one-month LIBOR plus a current spread of 1.75%. Letters of Credit In the normal course of business, the Company provides certain third parties with standby letter of credit agreements guaranteeing its payment for certain insurance claims, contract performance and permit requirements. At March 31, 2020, the Company was contingently liable for $32.9 million in letters of credit, of which $2.3 million were issued under the Company’s Revolving Facility. |
Other Operating Expenses and (Income), Net |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2020 | |||
| Other Income And Expenses [Abstract] | |||
| Other Operating Expenses and (Income), Net |
Other operating expenses and (income), net, for the quarter ended March 31, 2020, reflects higher bad debt expense and lower gains on sales of assets compared with the prior-year period. Additionally, other operating expenses and (income), net, for the three months ended March 31, 2019, reflects the reversal of $4.2 million of accruals for unclaimed property contingencies. |
Significant Accounting Policies - Additional Information (Detail) |
3 Months Ended |
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Mar. 31, 2020
Facility
State
Segment
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| Accounting Policies [Abstract] | |
| Number of quarries and yards | Facility | 300 |
| Number of states with aggregates business sales by destination | State | 27 |
| Reportable business segments | Segment | 3 |
Significant Accounting Policies (Tables) |
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| Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in Accumulated Other Comprehensive Loss Net of Tax |
Changes in accumulated other comprehensive loss, net of tax, are as follows:
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| Noncurrent Deferred Tax Assets Recorded In Accumulated Other Comprehensive Loss |
Changes in net noncurrent deferred tax assets recorded in accumulated other comprehensive loss are as follows:
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| Reclassification Out of Accumulated Other Comprehensive Loss |
Reclassifications out of accumulated other comprehensive loss are as follows:
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| Basic and Diluted Earnings Per Common Share |
The following table reconciles the numerator and denominator for basic and diluted earnings per common share:
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| Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive Earnings |
Comprehensive earnings attributable to Martin Marietta is as follows:
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Pension and Postretirement Benefits (Tables) |
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| Compensation And Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Components of Net Periodic Benefit Cost (Credit) |
The estimated components of the recorded net periodic benefit cost (credit) for pension and postretirement benefits are as follows:
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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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| Income Tax Disclosure [Abstract] | ||
| Effective change in income tax rate | 0.60% | |
| Discrete benefit from change in tax status of subsidiary from partnership to corporation | $ 6.9 | $ 13.2 |
| Income tax expense (benefit) | $ 0.1 | $ (5.0) |
Supplemental Cash Flow Information -Supplemental Disclosures of Cash Flow Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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| Supplemental Cash Flow Elements [Abstract] | ||
| Cash paid for interest | $ 11.9 | $ 17.8 |
| Cash paid for income taxes | $ 1.4 | $ 3.9 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Statement Of Financial Position [Abstract] | ||
| Common stock, par value | $ 0.01 | $ 0.01 |
| Preferred stock, par value | $ 0.01 | $ 0.01 |
Consolidated Statements of Total Equity (Parenthetical) (Unaudited) - $ / shares |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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| Statement Of Stockholders Equity [Abstract] | ||
| Dividends declared | $ 0.55 | $ 0.48 |
Income Taxes |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2020 | |||
| Income Tax Disclosure [Abstract] | |||
| Income Taxes |
The effective income tax rate reflects the effect of federal and state income taxes on earnings and the impact of differences in book and tax accounting arising from the permanent tax benefits associated with the statutory depletion deduction for mineral reserves. For the three months ended March 31, 2020, the low effective income tax rate of 0.6% was primarily attributable to a $6.9 million discrete benefit from financing third-party railroad maintenance. In exchange, the Company received a federal income tax credit and deduction. For the three months ended March 31, 2019, the effective income tax rate included a $13.2 million discrete benefit from a change in the tax status of a subsidiary from a partnership to a corporation, contributing to an overall income tax benefit of $5.0 million. The Company records interest accrued in relation to unrecognized tax benefits as income tax expense. Penalties, if incurred, are recorded as operating expenses in the consolidated statements of earnings and comprehensive earnings. |
Revenues and Gross Profit |
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| Revenues And Gross Profit [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues and Gross Profit |
The Building Materials business includes the aggregates, cement, ready mixed concrete and asphalt and paving product lines. All cement, ready mixed concrete and asphalt and paving product lines reside in the West Group. The following table, which is reconciled to consolidated amounts, provides total revenues and gross profit by product line. The Company’s two cold mix asphalt plants have been reclassified from the asphalt and paving product line to the aggregates product line. These operations did not represent a material amount of product revenues and gross profit. Prior-year information has been reclassified to conform to the presentation of the Company’s current reportable product lines.
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Significant Accounting Policies - Basic and Diluted Earnings Per Common Share (Detail) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
| Earnings Per Share [Abstract] | ||
| Net earnings attributable to Martin Marietta Materials, Inc. | $ 25.9 | $ 42.9 |
| Less: Distributed and undistributed earnings attributable to unvested awards | 0.1 | |
| Basic and diluted net earnings available to common shareholders attributable to Martin Marietta Materials, Inc. | $ 25.9 | $ 42.8 |
| Basic weighted-average common shares outstanding | 62.3 | 62.6 |
| Effect of dilutive employee and director awards | 0.2 | 0.2 |
| Diluted weighted-average common shares outstanding | 62.5 | 62.8 |
Significant Accounting Policies - Comprehensive Earnings Attributable to Martin Marietta Materials Incorporated (Detail) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
| Statement Of Income And Comprehensive Income [Abstract] | ||
| Net earnings attributable to Martin Marietta Materials, Inc. | $ 25.9 | $ 42.9 |
| Other comprehensive earnings, net of tax | 0.4 | 3.2 |
| Earnings attributable to Martin Marietta Materials, Inc. | $ 26.3 | $ 46.1 |
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