Vulcan Announces First Quarter 2019 Results
BIRMINGHAM, Ala., May 2, 2019 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's largest producer of construction aggregates, today announced results for the quarter ended March 31, 2019.
Net earnings were $63 million and Adjusted EBITDA was $193 million in the first quarter. The 15 percent growth in Adjusted EBITDA was driven by strong aggregates shipments, up 13 percent year-over-year, and a 5.4 percent increase in aggregates pricing.
Tom Hill, Chairman and Chief Executive Officer, said, "Our first quarter results represent a good start to the year and are consistent with our full-year expectations. Broad-based shipment growth, compounding price improvements and solid operating efficiencies in our aggregates business contributed to 17 percent growth in total revenues and 29 percent growth in operating earnings. These results demonstrate the strength of our unique aggregates-centric business model.
"Aggregates segment gross profit increased from $3.66 per ton to $4.07 per ton. This double-digit improvement in first quarter unit profitability builds on last year's results, and we are well positioned for further gains in our industry-leading unit profitability.
"Our key markets are benefitting from both robust growth in public construction demand and continued growth in private demand. Leading indicators, such as construction award activity, signal broad-based shipment growth across our footprint. Aggregates pricing momentum continues to improve - consistent with our full-year expectations. As a result, we reiterate our full-year expectations for 2019 earnings from continuing operations of between $4.55 and $5.05 per diluted share and Adjusted EBITDA of between $1.250 and $1.330 billion."
First quarter and trailing twelve month highlights include:
First Quarter Trailing Twelve Months
Amounts in millions, except per unit data 2019 2018 2019 2018
---
Total revenues $996.5 $854.5 $4,524.9 $3,957.4
Gross profit $191.7 $159.3 $1,133.3 $994.6
Aggregates segment
Segment sales $835.0 $699.7 $3,649.0 $3,145.5
Freight-adjusted revenue $628.6 $529.4 $2,766.5 $2,425.3
Gross profit $185.7 $148.2 $1,029.4 $864.0
Shipments (tons) 45.6 40.5 206.5 185.5
Freight-adjusted sales price per ton $13.77 $13.06 $13.40 $13.08
Gross profit per ton $4.07 $3.66 $4.99 $4.66
Asphalt, Concrete & Calcium segments gross profit $6.0 $11.1 $103.9 $130.7
Selling, Administrative and General (SAG) $90.3 $78.3 $345.3 $320.9
SAG as % of Total revenues 9.1% 9.2% 7.6% 8.1%
Earnings from continuing operations before income taxes $74.6 $48.5 $649.4 $369.5
Net earnings $63.3 $53.0 $526.1 $609.2
Adjusted EBIT $103.5 $86.4 $802.6 $684.6
Adjusted EBITDA $192.7 $167.8 $1,156.6 $1,000.5
Earnings from continuing operations per diluted share $0.48 $0.40 $3.95 $4.48
Adjusted earnings from continuing operations per diluted share $0.46 $0.44 $4.07 $3.14
Segment Results
Aggregates
First quarter segment gross profit increased 25 percent to $186 million, or $4.07 per ton. As a percentage of segment sales, gross profit margin expanded 100 basis points due to strong growth in shipments and price improvements.
Trailing-twelve month same-store incremental gross profit flow-through rate was 57 percent, which is in line with longer-term expectations of 60 percent. As a reminder, quarterly gross profit flow-through rates can vary widely from quarter to quarter; therefore, the Company evaluates this metric on a trailing-twelve month basis.
First quarter aggregates shipments increased 13 percent (11 percent on a same-store basis) versus the prior year quarter. Solid underlying fundamentals and pent-up demand carried over from last year helped drive shipment growth across most of the Company's footprint. In California, shipments decreased by double-digits due to record rainfall throughout most of the quarter. A strong demand environment, driven by transportation-related construction as well as growth in the Company's project-related bookings, support our expectations for shipment growth in California in 2019.
Price growth was positive across all markets served by the Company. For the quarter, freight-adjusted average sales price for aggregates increased 5.4 percent versus the prior year's quarter. Excluding mix impact, aggregates price increased 5.8 percent compared to the prior year first quarter. Pricing was particularly strong in Arizona, California, Georgia, Tennessee and Texas. Positive trends in backlogged project work along with demand visibility and customer confidence support continued upward pricing movements throughout 2019.
First quarter same-store unit cost of sales (freight-adjusted) increased 3 percent compared to the prior year quarter due in part to planned higher repair and maintenance costs in advance of the construction season. Unit cost of sales in California was negatively impacted by record rainfall. The Company remains focused on compounding improvements in unit margins throughout the cycle through fixed cost leverage, price growth and operating efficiencies.
Asphalt, Concrete and Calcium
Asphalt segment gross profit was a loss of $3 million for the first quarter, in line with expectations. Asphalt shipments increased 11 percent (5 percent same-store) and asphalt mix selling prices increased 5 percent in the first quarter, or $2.73 per ton. The average unit cost for liquid asphalt was 29 percent higher than the prior year quarter but remained relatively stable throughout the quarter on a monthly basis. Pricing gains are beginning to offset higher liquid asphalt costs, but their impact will be gradual during 2019. The full-year earnings outlook for our Asphalt segment remains unchanged.
Concrete segment gross profit was $9 million versus $10 million in the prior year quarter. Same-store shipments decreased 10 percent year-over-year driven by inclement weather in Virginia. Same-store average price increases of 1 percent led to a modest gain in same-store material margin.
Calcium segment gross profit was $0.7 million, a slight increase versus the prior year quarter.
Capital Allocation and Financial Position
Capital expenditures in the first quarter were $122 million. This amount included $67 million of core operating and maintenance capital investments to improve or replace existing property, plant and equipment. In addition, the Company invested $55 million in internal growth projects to secure new aggregates reserves, develop new production sites, enhance the Company's distribution capabilities, and support the targeted growth of its asphalt operations. The Company's full-year expectations for 2019 remain the same - approximately $250 million on maintenance capital and $200 million for internal growth projects that are largely underway.
During the quarter, the Company returned $41 million to shareholders through dividends, a 10 percent increase versus the prior year quarter. No shares were repurchased during the quarter. At quarter-end, total debt was $3.0 billion, or 2.6 times trailing-twelve month Adjusted EBITDA.
Selling, Administrative and General (SAG) Expenses and Taxes
SAG expense in the quarter was $90 million versus $78 million in the prior year quarter. Full-year expectations for total SAG expense remain unchanged at $355 million. On a trailing-twelve month basis, SAG expense as a percentage of total revenues was 7.6 percent, 50 basis points lower than the prior year period. The Company remains focused on further leveraging its overhead cost structure.
In the first quarter, the Company reported income tax expense of $11 million versus income tax benefit of $5 million in the prior year quarter. The first quarter tax provision includes $9 million less of discrete adjustments related to stock-based incentive compensation compared to the prior year quarter. The Company continues to project an effective tax rate for the full year of 20 percent.
Demand and Earnings Outlook
Regarding the Company's full-year outlook for 2019, Mr. Hill stated, "We delivered good incremental earnings in the first quarter, and we are well positioned to carry that momentum forward through the remainder of the year. Above-average demand growth in Vulcan markets compared to the rest of the United States further supports our positive outlook for shipment growth. The underlying direction of unit profitability remains clear, supported by our strategic and tactical focus on compounding pricing improvements and operating disciplines. We expect earnings from continuing operations of between $4.55 and $5.05 per diluted share and Adjusted EBITDA of between $1.250 and $1.330 billion. All other aspects of our expectations are consistent with our outlook provided in February."
Conference Call
Vulcan will host a conference call at 10:00 a.m. CT on May 2, 2019. A webcast will be available via the Company's website at www.vulcanmaterials.com. Investors and other interested parties may access the teleconference live by calling 888-221-3881, or 720-452-9217 if outside the U.S. approximately 10 minutes before the scheduled start. The conference ID is 8961757. The conference call will be recorded and available for replay at the Company's website approximately two hours after the call.
Vulcan Materials Company, a member of the S&P 500 Index with headquarters in Birmingham, Alabama, is the nation's largest producer of construction aggregates - primarily crushed stone, sand and gravel - and a major producer of aggregates-based construction materials, including asphalt mix and ready-mixed concrete. For additional information about Vulcan, go to www.vulcanmaterials.com.
FORWARD-LOOKING STATEMENT DISCLAIMER
This document contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, business plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned divestitures and asset sales. These forward-looking statements are sometimes identified by the use of terms and phrases such as "believe," "should," "would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," "may" or similar expressions elsewhere in this document. These statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitive factors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.
Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may vary significantly from those expressed in or implied by the forward-looking statements. The following risks related to Vulcan's business, among others, could cause actual results to differ materially from those described in the forward-looking statements: those associated with general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; changes in Vulcan's effective tax rate; the increasing reliance on information technology infrastructure for Vulcan's ticketing, procurement, financial statements and other processes could adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; the impact of the state of the global economy on Vulcan's businesses and financial condition and access to capital markets; changes in the level of spending for private residential and private nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions, including those relating to climate change, wetlands, greenhouse gas emissions, the definition of minerals, tax policy or international trade; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena, including the impact of climate change; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by Vulcan; changes in interest rates; volatility in pension plan asset values and liabilities, which may require cash contributions to the pension plans; the impact of environmental cleanup costs and other liabilities relating to existing and/or divested businesses; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully integrate acquisitions; significant downturn in the construction industry may result in the impairment of goodwill or long-lived assets; changes in technologies, which could disrupt the way we do business and how our products are distributed; the effect of changes in tax laws, guidance and interpretations; and other assumptions, risks and uncertainties detailed from time to time in the reports filed by Vulcan with the SEC. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement. Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document except as required by law.
Table A
Vulcan Materials
Company
and Subsidiary
Companies
(in thousands, except per
share data)
Three Months Ended
Consolidated
Statements of
Earnings March 31
(Condensed and
unaudited) 2019 2018
---
Total revenues $996,511 $854,474
Cost of revenues 804,836 695,140
---
Gross profit 191,675 159,334
Selling,
administrative
and general
expenses 90,268 78,340
Gain on sale of
property, plant &
equipment
and businesses 7,297 4,164
Other operating
expense, net (4,271) (3,963)
---
Operating earnings 104,433 81,195
Other nonoperating
income, net 3,129 5,071
Interest expense,
net 32,934 37,774
---
Earnings from
continuing
operations
before income
taxes 74,628 48,492
Income tax expense
(benefit) 10,693 (4,903)
---
Earnings from
continuing
operations 63,935 53,395
Earnings (loss) on
discontinued
operations, net
of tax (636) (416)
---
Net earnings $63,299 $52,979
---
Basic earnings
(loss) per share
Continuing
operations $0.48 $0.40
Discontinued
operations 0.00 0.00
Net earnings $0.48 $0.40
Diluted earnings
(loss) per share
Continuing
operations $0.48 $0.40
Discontinued
operations 0.00 (0.01)
Net earnings $0.48 $0.39
Weighted-average
common shares
outstanding
Basic 132,043 132,690
Assuming dilution 133,054 134,359
Depreciation,
depletion,
accretion and
amortization $89,181 $81,439
Effective tax rate
from continuing
operations 14.3% -10.1%
---
Table B
Vulcan Materials
Company
and Subsidiary
Companies
(in thousands)
Consolidated Balance
Sheets March 31 December 31 March 31
(Condensed and
unaudited) 2019 2018 2018
---
Assets
Cash and cash
equivalents $30,838 $40,037 $38,141
Restricted cash 270 4,367 8,373
Accounts and notes
receivable
Accounts and notes
receivable, gross 563,084 542,868 492,103
Allowance for doubtful
accounts (2,554) (2,090) (2,667)
---
Accounts and notes
receivable, net 560,530 540,778 489,436
Inventories
Finished products 369,743 372,604 340,666
Raw materials 27,951 27,942 29,393
Products in process 4,976 3,064 1,303
Operating supplies and
other 26,727 25,720 28,392
---
Inventories 429,397 429,330 399,754
Other current assets 62,816 64,633 75,495
Total current assets 1,083,851 1,079,145 1,011,199
Investments and long-
term receivables 50,952 44,615 35,056
Property, plant &
equipment
Property, plant &
equipment, cost 8,559,549 8,457,619 8,116,439
Allowances for
depreciation,
depletion &
amortization (4,284,211) (4,220,312) (4,090,574)
---
Property, plant &
equipment, net 4,275,338 4,237,307 4,025,865
Operating lease right-
of-use assets, net 426,381 0 0
Goodwill 3,161,842 3,165,396 3,130,161
Other intangible
assets, net 1,085,398 1,095,378 1,060,831
Other noncurrent
assets 213,090 210,289 190,099
Total assets $10,296,852 $9,832,130 $9,453,211
---
Liabilities
Current maturities of
long-term debt 24 23 22
Short-term debt 178,500 133,000 200,000
Trade payables and
accruals 248,119 216,473 188,163
Other current
liabilities 232,964 253,054 195,122
Total current
liabilities 659,607 602,550 583,307
Long-term debt 2,780,589 2,779,357 2,775,687
Deferred income taxes,
net 568,229 567,283 479,430
Deferred revenue 184,744 186,397 190,731
Operating lease
liabilities 403,426 0 0
Other noncurrent
liabilities 483,048 493,640 510,846
Total liabilities $5,079,643 $4,629,227 $4,540,001
---
Equity
Common stock, $1 par
value 132,069 131,762 132,290
Capital in excess of
par value 2,789,864 2,798,486 2,787,848
Retained earnings 2,467,201 2,444,870 2,138,885
Accumulated other
comprehensive loss (171,925) (172,215) (145,813)
Total equity $5,217,209 $5,202,903 $4,913,210
Total liabilities and
equity $10,296,852 $9,832,130 $9,453,211
---
Table C
Vulcan Materials Company
and Subsidiary Companies
(in thousands)
Three Months Ended
Consolidated Statements of
Cash Flows March 31
(Condensed and unaudited) 2019 2018
---
Operating Activities
Net
earnings $63,299 $52,979
Adjustments to reconcile
net earnings to net cash
provided by operating
activities
Depreciation, depletion,
accretion and
amortization 89,181 81,439
Net gain on sale of
property, plant &
equipment and businesses (7,297) (4,164)
Contributions to pension
plans (2,320) (102,443)
Share-based compensation
expense 5,724 6,794
Deferred tax expense
(benefit) 774 7,968
Cost of debt purchase 0 6,922
Changes in assets and
liabilities before
initial
effects of business
acquisitions and
dispositions (45,765) 39,832
Other,
net 12,568 3,641
Net cash provided by
operating activities $116,164 $92,968
---
Investing Activities
Purchases of property,
plant & equipment (122,019) (128,688)
Proceeds from sale of
property, plant &
equipment 6,512 1,701
Proceeds from sale of
businesses 1,744 11,256
Payment for businesses
acquired, net of acquired
cash 1,122 (76,259)
Other,
net (7,237) (34)
Net cash used for
investing activities ($119,878) ($192,024)
---
Financing Activities
Proceeds from short-term
debt 196,200 252,000
Payment of short-term
debt (150,700) (52,000)
Payment of current
maturities and long-term
debt (6) (892,038)
Proceeds from issuance of
long-term debt 0 850,000
Debt issuance and exchange
costs 0 (45,513)
Settlements of interest
rate derivatives 0 3,378
Purchases of common stock 0 (55,568)
Dividends
paid (40,939) (37,176)
Share-based compensation,
shares withheld for taxes (14,137) (24,159)
Net cash used for
financing activities ($9,582) ($1,076)
---
Net decrease in cash and
cash equivalents and
restricted cash (13,296) (100,132)
Cash and cash equivalents
and restricted cash at
beginning of year 44,404 146,646
Cash and cash equivalents
and restricted cash at
end of period $31,108 $46,514
---
Table D
Segment Financial Data and Unit Shipments
(in thousands, except per unit data)
Three Months Ended
March 31
2019 2018
Total Revenues
Aggregates (1) $834,965 $699,657
Asphalt (2) 132,090 103,835
Concrete 83,637 100,962
Calcium 1,951 1,942
---
Segment sales $1,052,643 $906,396
Aggregates intersegment sales (56,132) (51,922)
Total revenues $996,511 $854,474
---
Gross Profit
Aggregates $185,716 $148,221
Asphalt (3,272) 246
Concrete 8,563 10,320
Calcium 668 547
---
Total $191,675 $159,334
---
Depreciation, Depletion, Accretion and Amortization
Aggregates $72,521 $65,953
Asphalt 8,550 7,002
Concrete 2,964 3,414
Calcium 60 69
Other 5,086 5,001
Total $89,181 $81,439
---
Average Unit Sales Price and Unit Shipments
Aggregates
Freight-adjusted revenues (3) $628,607 $529,414
Aggregates - tons 45,637 40,532
Freight-adjusted sales price 4 $13.77 $13.06
Other Products
Asphalt Mix - tons 2,022 1,820
Asphalt Mix - sales price $55.91 $53.18
Ready-mixed concrete - cubic yards 670 816
Ready-mixed concrete - sales price $123.94 $122.47
Calcium - tons 68 67
Calcium - sales price $28.32 $28.96
---
(1)Includes product sales (crushed stone, sand and gravel, sand, other aggregates), as well as freight & delivery
costs that we pass along to our customers, and service revenues related to aggregates.
(2)Includes product sales, as well as service revenues from our asphalt construction paving business.
(3)Freight-adjusted revenues are Aggregates segment sales excluding freight & delivery revenues, and other
revenues related to services, such as landfill tipping fees that are derived from our aggregates business.
4Freight-adjusted sales price is calculated as freight-adjusted revenues divided by aggregates unit shipments.
Appendix 1
1. Reconciliation of Non-GAAP Measures
Aggregates segment freight-adjusted revenues is not a Generally Accepted Accounting Principle (GAAP) measure. We present this metric as it is consistent with the basis by which we review our operating results. We believe that this presentation is
consistent with our competitors and meaningful to our investors as it excludes revenues associated with freight & delivery, which are pass-through activities. It also excludes immaterial other revenues related to services, such as landfill tipping fees,
that are derived from our aggregates business. Additionally, we use this metric as the basis for calculating the average sales price of our aggregates products. Reconciliation of this metric to its nearest GAAP measure is presented below:
Aggregates Segment Freight-Adjusted Revenues
(in thousands, except per ton
data)
Three Months Ended
March 31
2019 2018
Aggregates segment
Segment sales $834,965 $699,657
Less:
Freight & delivery revenues (1) 195,153 158,944
Other revenues 11,205 11,299
Freight-adjusted revenues $628,607 $529,414
---
Unit shipment - tons 45,637 40,532
Freight-adjusted sales price $13.77 $13.06
---
(1)At the segment level, freight & delivery revenues include intersegment freight & delivery (which are eliminated at the consolidated level) and freight to remote distribution sites.
Aggregates segment incremental gross profit flow-through rate is not a GAAP measure and represents the year-over-year change in gross profit divided by the year-over-year change in segment sales excluding freight & delivery (revenues and costs). We
present this metric as it is consistent with the basis by which we review our operating results. We believe that this presentation is consistent with our competitors and meaningful to our investors as it excludes revenues associated with freight &
delivery, which are pass-through activities (we do not generate a profit associated with the transportation component of the selling price of the product). Reconciliations of these metrics to their nearest GAAP measures are presented below:
Aggregates Segment Incremental Gross Profit Margin in Accordance with GAAP
(dollars in thousands)
Three Months Ended
March 31
2019 2018
Aggregates segment
Gross profit $185,716 $148,221
Segment sales $834,965 $699,657
Gross profit margin 22.2% 21.2%
---
Incremental gross profit margin 27.7%
---
Aggregates Segment Incremental Gross Profit Flow-through Rate (Non-GAAP)
(dollars in thousands)
Three Months Ended
March 31
2019 2018
Aggregates segment
Gross profit $185,716 $148,221
---
Segment sales $834,965 $699,657
Less: Freight & delivery revenues (1) 195,153 158,944
Segment sales excluding freight & delivery $639,812 $540,713
---
Gross profit flow-through rate 29.0% 27.4%
---
Incremental gross profit flow-through rate 37.8%
---
(1)At the segment level, freight & delivery revenues include intersegment freight & delivery (which are eliminated at the consolidated level) and freight to remote distribution sites.
GAAP does not define "Aggregates segment cash gross profit" and it should not be considered as an alternative to earnings measures defined by GAAP. We and the investment community use this metric to assess the operating performance of our business.
Additionally, we present this metric as we believe that it closely correlates to long-term shareholder value. We do not use this metric as a measure to allocate resources. Aggregates segment cash gross profit per ton is computed by dividing Aggregates
segment cash gross profit by tons shipped. Reconciliation of this metric to its nearest GAAP measure is presented below:
Aggregates Segment Cash Gross Profit
(in thousands, except per ton
data)
Three Months Ended
March 31
2019 2018
Aggregates segment
Gross profit $185,716 $148,221
Depreciation, depletion, accretion and amortization 72,521 65,953
Aggregates segment cash gross profit $258,237 $214,174
---
Unit shipments - tons 45,637 40,532
---
Aggregates segment cash gross profit per ton $5.66 $5.28
---
Appendix 2
Reconciliation of Non-GAAP Measures (Continued)
GAAP does not define "Earnings Before Interest, Taxes, Depreciation and Amortization" (EBITDA) and it should not be considered as an alternative to earnings measures defined by GAAP. We use this metric to assess the operating performance of our
business and as a basis for strategic planning and forecasting as we believe that it closely correlates to long-term shareholder value. We do not use this metric as a measure to allocate resources. We adjust EBITDA for certain items to provide a more
consistent comparison of earnings performance from period to period. Reconciliation of this metric to its nearest GAAP measure is presented below:
EBITDA and Adjusted EBITDA
(in thousands)
TTM
Three Months Ended
March 31 March 31
2019 2018 2019 2018
Net earnings $63,299 $52,979 $526,125 $609,243
Income tax expense (benefit) 10,693 (4,903) 121,045 (233,803)
Interest expense, net 32,934 37,774 132,583 294,783
(Earnings) loss on discontinued operations, net of tax 636 416 2,256 (5,980)
EBIT $107,562 $86,266 $782,009 $664,243
Depreciation, depletion, accretion and amortization 89,181 81,439 353,988 315,841
EBITDA $196,743 $167,705 $1,135,997 $980,084
---
Gain on sale of businesses (4,064) (2,929) (4,064) (13,437)
Property donation 0 0 0 4,290
Business interruption claims
recovery 0 (1,694) (559) (1,694)
Charges associated with divested
operations 0 0 18,545 16,683
Business development (1) 0 516 4,686 3,580
One-time employee bonuses 0 0 0 6,716
Restructuring charges 0 4,245 1,974 4,245
Adjusted EBITDA $192,679 $167,843 $1,156,579 $1,000,467
---
Depreciation, depletion, accretion
and amortization (89,181) (81,439) (353,988) (315,841)
Adjusted EBIT $103,498 $86,404 $802,591 $684,626
---
(1)Represents non-routine charges associated with acquisitions including the cost impact of purchase accounting inventory valuations.
Similar to our presentation of Adjusted EBITDA, we present Adjusted Diluted EPS from continuing operations to provide a more consistent comparison of earnings performance from period to period.
Adjusted Diluted EPS from Continuing Operations (Adjusted Diluted EPS)
TTM
Three Months Ended
March 31 March 31
2019 2018 2019 2018
Diluted EPS from continuing operations $0.48 $0.40 $3.95 $4.48
Items included in Adjusted EBITDA
above (0.02) 0.00 0.11 0.09
Interest charges associated with
debt purchase 0.00 0.00 0.00 0.02
Debt refinancing costs 0.00 0.04 0.00 0.75
Tax reform income tax savings 0.00 0.00 0.01 (1.99)
Alabama NOL carryforward valuation
allowance 0.00 0.00 0.00 (0.21)
Adjusted Diluted EPS $0.46 $0.44 $4.07 $3.14
---
The following reconciliation to the mid-point of the range of 2019 Projected EBITDA excludes adjustments (as noted in Adjusted EBITDA above) as they are difficult to forecast (timing or amount). Due to the difficulty in forecasting such adjustments,
we are unable to estimate their significance. This metric is not defined by GAAP and should not be considered as an alternative to earnings measures defined by GAAP. Reconciliation of this metric to its nearest GAAP measure is presented below:
2019 Projected EBITDA
(in millions)
Mid-point
Net earnings $640
Income tax expense 160
Interest expense, net 130
Discontinued operations, net of tax 0
Depreciation, depletion, accretion and amortization 360
Projected EBITDA $1,290
---
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