Martin Marietta Materials, Inc. (NYSE:MLM) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 11:00 am ET


Martin Marietta Materials, Inc. (NYSE:MLM) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Martin Marietta Second Quarter 2020 Earnings Conference Call. My name is Kevin, and I'll be your coordinator today. All participants are currently 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 and will be available for replay on the Company's website. I will now turn the call over to your host, Ms. Suzanne Osberg, Martin Marietta's Vice President of Investor Relations. Suzanne, you may begin.

Suzanne Osberg

Good morning, and thank you for joining Martin Marietta's second quarter 2020 earnings call. With me today are Ward Nye, Chairman and Chief Executive Officer; and Jim Nickolas, Senior Vice President and Chief Financial Officer.

As a reminder, today's discussion may include forward-looking statements as defined by the United States 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. Please refer 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's website.

We have made available, during this webcast and on the Investor Relations section of our website, Q2 2020 supplemental information that summarizes our financial results and trends. In addition, any non-GAAP measures discussed today are defined and reconciled to the most directly comparable GAAP measure in our earnings release and SEC filings.

Today's earnings call will begin with Ward Nye, whose remarks will focus on our second quarter operating performance, as well as current and emerging market trends. Jim Nickolas will then review our financial results and liquidity position, and Ward will then provide some closing comments. A question-and-answer session will follow our prepared remarks.

I will now turn the call over to Ward.

C. Howard Nye

Thank you, Suzanne, and thank you all for joining today's teleconference. We sincerely hope that you and your families are remaining safe and healthy as we continue to manage through these unprecedented times. As highlighted in this morning's release, Martin Marietta delivered outstanding operational, financial and safety performance, notwithstanding some localized weather headwinds in the quarter and the broader uncertainties presented by the COVID-19 pandemic. This performance is a testament to our company's commitment to our values, the world-class attributes of our business and the disciplined execution of our strategic plan.

Martin Marietta established new profitability records for both the second quarter and the first half of the year, driven by favorable pricing and proactive cost management across the Building Materials business. For the second quarter specifically, consolidated gross margin expanded 200 basis points despite slightly lower revenues as compared with the prior year period. Selling, general and administrative, or SG&A, expenses as a percentage of total revenues improved 10 basis points to 5.6%.