Martin Marietta Materials, Inc. (NYSE:MLM) Q4 2018 Earnings Conference Call Transcript

Feb 12, 2019 • 11:00 am ET


Martin Marietta Materials, Inc. (NYSE:MLM) Q4 2018 Earnings Conference Call Transcript


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Good morning, ladies and gentlemen, and welcome to the Martin Marietta's Fourth Quarter and Full Year 2018 Earnings Conference Call. My name is Sonia, and I will be your coordinator today. At this time all participants have been placed in a listen-only mode. A question-and-answer session will follow the Company's prepared remarks. As a reminder, today's call is being recorded.

I will now turn the call over to your host, Ms. Suzanne Osberg, Vice President of Investor Relations for Martin Marietta. Ms. Osberg, you may begin.

Suzanne Osberg

Good morning, and thank you for joining Martin Marietta's fourth quarter and full year 2018 earnings call. With me today are Ward Nye, Chairman and Chief Executive Officer and Jim Nickolas, Senior Vice President and Chief Financial Officer.

To facilitate today's discussion, we have made available during this webcast and on the Investor Relations section of our website, 2018 supplemental information that summarizes our financial results and trends. As detailed on slide two, this conference call may include forward-looking statements as defined by securities laws in connection with future events, future operating results or financial performance. Like other businesses, we are subject to risks and uncertainties that 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 today's earnings release and other filings with the Securities and Exchange Commission, which are available on both our own and the SEC websites.

Please note that all financial and operating results discussed today are for full year 2018. Any comparisons are versus the prior year, unless otherwise noted, and all margin references are based on revenues. Furthermore, non-GAAP measures are defined and reconciled to the nearest GAAP measure in our 2018 supplemental information and SEC filings.

We will begin today's earnings call with Ward Nye, who will discuss our operating performance, as well as market trends and expectations for 2019. Jim Nickolas will review our 2018 financial results. A question-and-answer session will follow.

I will now turn the call over to Ward.

Ward Nye

Thank you, Suzanne, and thank you all for joining today's teleconference. Martin Marietta's success is rooted in our commitment to our core values and the disciplined execution of our strategic operating analysis and review, or SOAR process. Today's reported results clearly demonstrate the benefits of our approach as we once again delivered record financial and safety performance, and did so without the benefit of meaningful shipment growth across our heritage Building Materials business.

For the full year, consolidated revenues increased 7% to a record $4.2 billion and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, increased 9% to a record $1.1 billion. These outstanding results were driven largely by solid pricing gains across-the-Building Materials business and the Bluegrass Materials acquisition, the second largest transaction in our Company's history. We also established new records for net earnings and earnings per diluted share, excluding the