Martin Marietta Materials, Inc. (NYSE:MLM) Q4 2014 Earnings Conference Call - Final Transcript
Feb 10, 2015 • 02:00 pm ET
Good day, ladies and gentlemen and welcome to the Martin Marietta Q4 2014 and Full Year Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, today's call is being recorded.
I would now like to introduce your host for today's conference, Mr. Ward Nye, Chairman and CEO. Sir, you may begin.
C. Howard Nye
Good afternoon. And thank you for joining Martin Marietta's quarterly earnings Call. With me today is Anne Lloyd, our Executive Vice President and Chief Financial Officer. As announced in this morning's release, we were pleased to complete a transformation year in 2014 from Martin Marietta culminating with the 77% increase in fourth quarter net earnings over the prior year quarter.
Our results reflect growth in the Heritage aggregates business, the expanding contribution from the acquired TXI operations and the consistently strong performance by our Magnesia Specialties business. Additionally, we also announced a $20 million share repurchase program on which I'll further elaborate later in the teleconference.
In addition to earnings growth, we were pleased to announce positive developments related to TXI synergies. First, we exceeded our previously announced guidance for 2014 by 53% or nearly $10 million. Second, based on our integration progress to date, we now expect to achieve annual synergies of $100 million by 2016 more than 40% over our previous guidance. This rate of synergy realization made the TXI acquisition modestly accretive to 2014 earnings, excluding of course the one-time costs related to the transaction. This accretion should continue into 2015 and beyond based on incremental synergy realization coupled with continued growth in the underlying business. These developments confirm our ability to deliver on our objectives and create additional shareholder value.
Before further discussing the quarterly and full year results, as a reminder, today's teleconference may include forward-looking statements as defined by securities laws in connection with future events or future operating or financial performance. Like other businesses, we are subject to risks and uncertainties which could cause actual results to differ materially. Except as legally required we undertake no obligation to publicly update or revise any forward-looking statements whether resulting from new information, future developments or otherwise.
We refer you to the legal disclaimers contained in our fourth quarter and full year earnings release and our other filings with the Securities and Exchange Commission, which are available on both our own and the SEC websites. Also, any margin references in our discussion are based on net sales and exclude freight and delivery revenues. These and other non-GAAP measures are also explained in our SEC filings and on our website.
To continue to provide transparency into our fourth quarter results, we will again discuss the results for the heritage business separately from those of acquired operations. To facilitate this discussion, we have made available during this webcast and on our website, supplemental financial information that is consistent with how management analyzes the business.