Vulcan Materials Company (NYSE:VMC) Q4 2014 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 11:00 am ET


Vulcan Materials Company (NYSE:VMC) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning. My name is Megan, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vulcan Materials 2014 Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions]

Thank you. Mr. Tom Hill, President and CEO of Vulcan Materials Company, you may begin your conference.

James Thomas Hill

Good morning. Thank you for joining us to discuss our fourth quarter 2014 results.

I'm Tom Hill, President and Chief Executive Officer of Vulcan. Joining me today is John McPherson, Executive Vice President, Chief Financial and Strategy Officer. A slide presentation will accompany this webcast. It will be posted on the company's website at the conclusion of this earnings call. Before we begin the actual results and projections, I refer you to Slide 2 of our presentation regarding forward-looking statements, which are subject to risks and uncertainties.

Descriptions of these are detailed in the company's SEC reports, including our most recent report on Form 10-K. In addition, during this call, management will refer to certain non-GAAP financial measurements. You can find the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures and other related information in our earnings release and at the end of this presentation.

Before we get into details today, I'd like to speak to you about some things that are immensely important to me and our management team. We executed well in 2014, particularly in the fourth quarter, and I am proud of our people and the job they did, but we are focused on the future. When I think about the job our people will need to do in 2015, three words come to mind: momentum, execution and discipline.

Momentum. We are seeing accelerating momentum in demand throughout our markets. Demand in the fourth quarter exceeded our expectations despite our California business being waterlogged, and recall that we are comparing against a strong fourth quarter in 2013. There is accelerating pricing momentum in many of our markets, and we are going to reap the benefits of that momentum. The momentum that we've seen thus far will carry forward through 2015 and likely well beyond, and we are going to take every advantage of it.

Execution. Our teams throughout the company are executing very well. We are pleased with the results detailed in today's press release, and these outcomes directly reflect the great efforts of our people at all levels of the business. In particular, I'm proud of how our local businesses have continued to convert incremental revenues into incremental gross profit. We are servicing our customers well and helping them grow while operating our business safely and efficiently.

Despite only modest gains in pricing so far, our people are making the most of this initial phase of recovery. They have set the stage for even stronger performance ahead. My personal focus in 2015 and the focus of our management