SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
____________________________________
 
FORM 8-K
 
Current Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  August 3, 2009
 
VULCAN MATERIALS COMPANY
(Exact name of registrant as specified in its charter)

New Jersey
(State or other jurisdiction
of incorporation)	001-33841
(Commission File Number)	20-8579133
(IRS Employer
Identification No.)	
 
1200 Urban Center Drive
Birmingham, Alabama 35242
(Address of principal executive offices) (zip code)
 
(205) 298-3000
(Registrant's telephone number, including area code)
 	
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
 	
o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
 
Item 2.02	Results of Operations and Financial Condition.
The Registrant's earnings release dated August 3, 2009, regarding its second quarter financial results is attached hereto as Exhibit 99.1.
 	
Item 9.01	Financial Statements and Exhibits.	
 	(c)	Exhibits:	
 	 	 	
 	 	Exhibit No.
    99.1	Description
Earnings Release dated August 3, 2009.	
 
SIGNATURES
 	
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed by the undersigned, thereunto duly authorized.	
 
 	VULCAN MATERIALS COMPANY
(Registrant)	 	

Dated:   August 3, 2009	By:	/s/ Robert A. Wason IV	 	
 	 	Robert A. Wason IV	 	

 

 

 
August 3, 2009
FOR IMMEDIATE RELEASE
Investor Contact:  Mark Warren (205) 298-3220
Media Contact:  David Donaldson (205) 298-3220

VULCAN ANNOUNCES SECOND QUARTER RESULTS
Company positioned for significant participation in U.S. economic recovery

BIRMINGHAM, Ala., Aug. 3 /PRNewswire-FirstCall/ -- Vulcan Materials Company (NYSE: VMC), the nation’s largest producer of construction aggregates, announced results today for the second quarter ended June 30, 2009.

Second Quarter Summary and Comparisons with the Prior Year
 	·	Net earnings were $22 million, or $0.20 per diluted share, including $0.14 per diluted share from continuing operations.	
 	·	A change in the estimated annual effective tax rate reduced earnings $0.06 per diluted share.	
 	·	Aggregates shipments declined 31 percent, reducing earnings $0.64 per diluted share.	
 	·	Aggregates pricing increased 3 percent.	
 	·	Aggregates cash fixed costs decreased 17 percent.	
 	·	Asphalt unit margins continued to recover.	
 	·	EBITDA was $168 million versus $265 million in the prior year. Cash earnings were $118 million versus $199 million in the prior year.  Both comparisons exclude the effects in 2008 referable to the gain on sale of required divestitures as part of the Florida Rock acquisition.	
 	·	Year-to-date cash provided by operating activities was $169 million compared with $134 million in the prior year.	
 	·	Net proceeds of approximately $520 million from the public equity offering of early June were used to reduce short-term borrowing.	
 
Commenting for the Company, Don James, Vulcan’s Chairman and Chief Executive Officer, stated, “While our current results reflect the volume effect of the prolonged recession, we are encouraged by the increased level of bid activity by state transportation departments as well as the significant increase in highway construction contract awards reported in May and June. The increased level of bid activity and contracts awarded demonstrate that funding provided by the federal economic stimulus plan, or American Recovery and Reinvestment Act (ARRA), is working its way into the economy.  We expect construction activity referable to these contract awards to begin in the second half of 2009 and to provide a meaningful contribution to overall aggregates demand in 2010.

“We remain focused on managing costs and generating cash, which will enhance our ability to increase earnings as the economy recovers and construction activity improves.  In early June, we further strengthened our balance sheet and enhanced our financial flexibility by completing a successful public equity offering.  Net proceeds of $520 million from the offering were used to reduce short-term bank borrowings, thereby freeing up a like amount of liquidity under our lines of credit.”

Second Quarter Operating Results Commentary

Second quarter earnings for aggregates declined as the impact of sharply lower shipments more than offset the earnings benefit from improved prices, lower unit costs for diesel fuel and cost control measures.  Aggregates shipments declined 31 percent from the prior year due to weak demand and wet weather.  The decrease in aggregates volumes reduced second quarter EBITDA by approximately $112 million versus the prior year.  The increase in the average selling price for aggregates reflects wide variations across Vulcan-served markets.  Many major markets realized price improvement from the prior year well above the 3 percent average, while certain markets in the far West and Florida reported year-over-year declines in average selling price.

 

 
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By rationalizing production, reducing operating hours, streamlining the workforce and effectively managing spending, the Company offset some of the cost impact related to lower volumes.   Aggregates cash fixed costs were reduced 17 percent from the prior year’s second quarter.  The unit cost for diesel fuel decreased 54 percent from the prior year’s second quarter, increasing earnings $0.12 per diluted share.

Asphalt earnings in the second quarter were higher than last year’s second quarter as material margins recovered to more normal levels, reflecting moderation in the cost of liquid asphalt, which more than offset the earnings effect of a 30 percent decline in asphalt volumes.  Concrete earnings decreased from the prior year’s second quarter due primarily to lower volumes.

Cement earnings showed a slight loss in the second quarter due to the effects of weaker sales volumes, slightly offset by lower energy costs.

Selling, administrative and general expenses in the second quarter decreased $5 million from the prior year. Cost-saving actions implemented across the Company to align spending levels with weak product demand more than offset $4 million in project costs related to the replacement of legacy IT systems.  Additionally, the prior year’s second quarter included expenses of $6 million for the fair market value of donated real estate.

During the second quarter, we revised our estimated annual effective tax rate to 6.4 percent, significantly lower than the 23.2 percent estimated in the first quarter.  An adjustment to the current quarter’s income tax provision was required so that the year-to-date provision reflects the expected annual tax rate.  A substantial amount of the tax benefit recognized for the loss reported in the first quarter of 2009 was reversed during the second quarter to reflect the revised annual rate.  This adjustment reduced earnings $0.06 per diluted share, during the second quarter of 2009, resulting in an effective tax rate of 38.2 percent, as compared with 31.0 percent in the second quarter of 2008.

All results are unaudited.

Outlook Highlights and Commentary

Commenting on the Company’s outlook for 2009, Mr. James stated, “The current year remains challenging due to weak private construction activity.  Despite these challenges, we believe the cost management actions we have taken, along with our disciplined approach to pricing, and the improved liquidity and financial flexibility we have achieved, will enable us to participate fully in the economic recovery.

“Plant operating costs and overhead are being tightly managed as we continue to adjust our cost structure to match the weak demand environment.  Additionally, lower unit costs for diesel fuel and liquid asphalt should continue to benefit earnings in 2009.

 

 
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August 3, 2009
FOR IMMEDIATE RELEASE
 
“We expect higher selling prices for our products in 2009 to partially offset the earnings effects of lower volumes.  For the full year 2009, we expect aggregates pricing to improve 3 to 4 percent.  The average selling price for asphalt mix in 2009 should also increase from 2008.

“Our revised outlook for 2009 aggregates demand is due primarily to further weakness expected in private construction.  U.S. contract awards in the most recent two months for private nonresidential and private infrastructure construction have weakened, lowering our expectation for aggregates demand from this end use in the second half of the year.  Specifically, published contract awards for private nonresidential buildings reported during the second quarter declined more than 60 percent in Vulcan-served states when compared with the prior year’s second quarter.  Contract awards for private infrastructure-related projects declined more than 80 percent.  As a result, we now expect 2009 full year aggregates shipments to decline 21 to 24 percent from 2008 levels.
 
“We expect the further weakness in private construction awards to be offset somewhat by incremental demand in the second half of 2009 from highway construction activity related primarily to economic stimulus projects.  State departments of transportation and local governments continue to make good progress obligating stimulus dollars for transportation projects.  In July, the Federal Highway Administration reported that 64 percent of the $26.8 billion of ARRA highway funds has been obligated by state departments of transportation, up from $13 billion at the end of May.  Additionally, the number of transportation projects bid and the frequency of bid lettings have increased in recent months, contributing to a 61 percent increase in the value of transportation contract awards in June in Vulcan-served states.  Overall, our outlook for stimulus-related demand remains unchanged for the second half of 2009 and beyond.

“As a result, we now expect second half earnings of $0.60 to $0.85 per diluted share, including $0.55 to $0.80 per diluted share from continuing operations.  In the second half of 2008, earnings were $0.63 per share, excluding the noncash charge for impairment of the goodwill associated with the cement segment.  Full year earnings are expected to be $0.51 to $0.76 per diluted share, including $0.40 to $0.65 per diluted share from continuing operations.

“Debt reduction and achieving target debt ratios remain a priority use of cash flows. With the proceeds of the recent equity offering and the previously announced reduction in the quarterly dividend, we expect to reduce total debt by approximately $700 million during 2009.  For the full year 2009, we expect capital spending to be approximately $175 million, down sharply from the $354 million spent in 2008.

“Looking ahead to 2010, Vulcan should benefit from our aggregates-focused strategy that is complemented by our asphalt and concrete operations in certain markets.  Our preliminary estimates for growth in demand for our products from stimulus-related construction activity, as well as some improvement in residential construction, point toward growth in earnings.  Our available production capacity and improved cost structure position Vulcan to participate efficiently and effectively in the supply of material for economic stimulus projects.  Key Vulcan-served states such as California, Florida and Texas will receive the largest percentage of highway funding under the stimulus plan and are likely targets for above-average funding for other stimulus spending for infrastructure because of their high growth and large population base.”

 

 
 Page 4
August 3, 2009
FOR IMMEDIATE RELEASE
 
Conference Call

Vulcan will host a conference call at 10:00 a.m. CDT on August 4, 2009.  Investors and other interested parties in the U.S. may access the teleconference live by calling 888.680.0865 approximately 10 minutes before the scheduled start.  International participants can dial 617.213.4853.  The access code is 82537459.  A live webcast will be available via the Internet through Vulcan's home page at www.vulcanmaterials.com.  The conference call will be recorded and available for replay approximately two hours after the call through August 11, 2009.

Vulcan Materials Company, a member of the S&P 500 Index, is the nation's largest producer of construction aggregates, a major producer of asphalt mix and concrete and a leading producer of cement in Florida.
 
Certain matters discussed in this release, including expectations regarding future performance, contain forward-looking statements that are subject to assumptions, risks and uncertainties that could cause actual results to differ materially from those projected.  These assumptions, risks and uncertainties include, but are not limited to, those associated with general economic and business conditions; changes in interest rates; the timing and amount of federal, state and local funding for infrastructure; changes in the level of spending for residential and private nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions; the outcome of pending legal proceedings; pricing; weather and other natural phenomena; energy costs; costs of hydrocarbon-based raw materials; increasing healthcare costs; the amount of long-term debt and interest expense; possible increase in the cash contributions to pension plans; the timing and amount of any future payments to be received under the 5CP earn-out contained in the agreement for the divestiture of the Company's Chemicals business; the Company’s ability to secure and permit aggregates reserves in strategically located areas; the Company’s ability to manage and successfully integrate acquisitions; the impact of the global financial crisis on our business and financial condition and access to the capital markets; and other assumptions, risks and uncertainties detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year.  Forward-looking statements speak only as of the date hereof, and Vulcan assumes no obligation to publicly update such statements.

 

 
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August 3, 2009
FOR IMMEDIATE RELEASE
 
Table A
 
Vulcan Materials Company	 	 	 	 	 	 	 	 	 	 	 	 	
and Subsidiary Companies	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(Amounts and shares in thousands,	 	
 	 	except per share data)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
Consolidated Statements of Earnings	 	June 30	 	 	June 30	 	
(Condensed and unaudited)	 	2009	 	 	2008	 	 	2009	 	 	2008	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net sales	 	$	681,380	 	 	$	965,957	 	 	$	1,249,275	 	 	$	1,737,718	 	
Delivery revenues	 	 	40,479	 	 	 	55,594	 	 	 	72,878	 	 	 	101,172	 	
Total revenues	 	 	721,859	 	 	 	1,021,551	 	 	 	1,322,153	 	 	 	1,838,890	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of goods sold	 	 	535,546	 	 	 	720,731	 	 	 	1,025,834	 	 	 	1,338,042	 	
Delivery costs	 	 	40,479	 	 	 	55,594	 	 	 	72,878	 	 	 	101,172	 	
Cost of revenues	 	 	576,025	 	 	 	776,325	 	 	 	1,098,712	 	 	 	1,439,214	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	 	 	145,834	 	 	 	245,226	 	 	 	223,441	 	 	 	399,676	 	
Selling, administrative and general expenses	 	 	79,353	 	 	 	84,781	 	 	 	159,070	 	 	 	177,357	 	
Gain on sale of property, plant & equipment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
and businesses, net	 	 	654	 	 	 	80,498	 	 	 	3,157	 	 	 	84,443	 	
Other operating (income) expense, net	 	 	1,451	 	 	 	2,474	 	 	 	3,170	 	 	 	1,534	 	
Operating earnings	 	 	65,684	 	 	 	238,469	 	 	 	64,358	 	 	 	305,228	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense), net	 	 	2,895	 	 	 	3,444	 	 	 	1,820	 	 	 	792	 	
Interest income	 	 	687	 	 	 	997	 	 	 	1,482	 	 	 	1,669	 	
Interest expense	 	 	44,073	 	 	 	38,193	 	 	 	87,992	 	 	 	81,652	 	
Earnings (loss) from continuing operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
before income taxes	 	 	25,193	 	 	 	204,717	 	 	 	(20,332	)	 	 	226,037	 	
Provision (benefit) for income taxes	 	 	9,632	 	 	 	63,492	 	 	 	(3,638	)	 	 	70,327	 	
Earnings (loss) from continuing operations	 	 	15,561	 	 	 	141,225	 	 	 	(16,694	)	 	 	155,710	 	
Earnings (loss) on discontinued operations, net of tax	 	 	6,651	 	 	 	(470	)	 	 	6,125	 	 	 	(1,022	)	
Net earnings (loss)	 	$	22,212	 	 	$	140,755	 	 	$	(10,569	)	 	$	154,688	 	
Basic earnings (loss) per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.14	 	 	$	1.28	 	 	$	(0.15	)	 	$	1.42	 	
Discontinued operations	 	 	0.06	 	 	 	-	 	 	 	0.06	 	 	 	-	 	
Net earnings (loss) per share	 	$	0.20	 	 	$	1.28	 	 	$	(0.09	)	 	$	1.42	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings (loss) per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.14	 	 	$	1.27	 	 	$	(0.15	)	 	$	1.41	 	
Discontinued operations	 	 	0.06	 	 	 	-	 	 	 	0.06	 	 	 	(0.01	)	
Net earnings (loss) per share	 	$	0.20	 	 	$	1.27	 	 	$	(0.09	)	 	$	1.40	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-average common shares	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	113,477	 	 	 	109,922	 	 	 	112,045	 	 	 	109,286	 	
Assuming dilution	 	 	113,829	 	 	 	111,117	 	 	 	112,045	 	 	 	110,515	 	
Cash dividends declared per share	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
of common stock	 	$	0.49	 	 	$	0.49	 	 	$	0.98	 	 	$	0.98	 	
Depreciation, depletion, accretion and	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
amortization from continuing operations	 	$	99,600	 	 	$	96,919	 	 	$	198,915	 	 	$	192,775	 	
Effective tax rate from continuing operations	 	 	38.2	%	 	 	31.0	%	 	 	17.9	%	 	 	31.1	%	

 
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August 3, 2009
FOR IMMEDIATE RELEASE
 
Table B
 
Vulcan Materials Company	 	 	 	 	 	 	 	 	 	
and Subsidiary Companies	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
 	 	(Amounts in thousands)	 	
 	 	 	 	 	 	 	 	 	 	
Consolidated Balance Sheets	 	June 30	 	 	December 31	 	 	June 30	 	
(Condensed and unaudited)	 	2009	 	 	2008	 	 	2008	 	
 	 	 	 	 	 	 	 	 	 	
Assets	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	43,711	 	 	$	10,194	 	 	$	151,210	 	
Medium-term investments	 	 	6,755	 	 	 	36,734	 	 	 	-	 	
Accounts and notes receivable:	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts and notes receivable, gross	 	 	394,938	 	 	 	365,688	 	 	 	530,759	 	
Less: Allowance for doubtful accounts	 	 	(9,437	)	 	 	(8,711	)	 	 	(7,456	)	
Accounts and notes receivable, net	 	 	385,501	 	 	 	356,977	 	 	 	523,303	 	
Inventories:	 	 	 	 	 	 	 	 	 	 	 	 	
Finished products	 	 	290,451	 	 	 	295,525	 	 	 	309,868	 	
Raw materials	 	 	32,035	 	 	 	28,568	 	 	 	29,009	 	
Products in process	 	 	5,133	 	 	 	4,475	 	 	 	3,113	 	
Operating supplies and other	 	 	35,964	 	 	 	35,743	 	 	 	41,510	 	
Inventories	 	 	363,583	 	 	 	364,311	 	 	 	383,500	 	
Deferred income taxes	 	 	69,080	 	 	 	71,205	 	 	 	62,074	 	
Prepaid expenses	 	 	58,425	 	 	 	54,469	 	 	 	19,392	 	
Total current assets	 	 	927,055	 	 	 	893,890	 	 	 	1,139,479	 	
Investments and long-term receivables	 	 	30,614	 	 	 	27,998	 	 	 	24,265	 	
Property, plant & equipment:	 	 	 	 	 	 	 	 	 	 	 	 	
Property, plant & equipment, cost	 	 	6,672,394	 	 	 	6,635,873	 	 	 	6,047,065	 	
Less: Reserve for depr., depl. & amort.	 	 	(2,644,146	)	 	 	(2,480,061	)	 	 	(2,325,181	)	
Property, plant & equipment, net	 	 	4,028,248	 	 	 	4,155,812	 	 	 	3,721,884	 	
Goodwill	 	 	3,091,524	 	 	 	3,083,013	 	 	 	3,895,267	 	
Other intangible assets	 	 	683,092	 	 	 	673,792	 	 	 	153,094	 	
Other assets	 	 	87,339	 	 	 	79,664	 	 	 	200,493	 	
Total assets	 	$	8,847,872	 	 	$	8,914,169	 	 	$	9,134,482	 	

Liabilities and Shareholders' Equity	 	 	 	 	 	 	 	 	 	 	 	 	
Current maturities of long-term debt	 	$	60,417	 	 	$	311,685	 	 	$	330,081	 	
Short-term borrowings	 	 	412,300	 	 	 	1,082,500	 	 	 	1,209,500	 	
Trade payables and accruals	 	 	145,744	 	 	 	147,104	 	 	 	215,835	 	
Other current liabilities	 	 	130,103	 	 	 	121,777	 	 	 	178,775	 	
Total current liabilities	 	 	748,564	 	 	 	1,663,066	 	 	 	1,934,191	 	
Long-term debt	 	 	2,521,190	 	 	 	2,153,588	 	 	 	2,183,584	 	
Deferred income taxes	 	 	957,248	 	 	 	949,036	 	 	 	685,432	 	
Other noncurrent liabilities	 	 	617,651	 	 	 	625,743	 	 	 	415,506	 	
Total liabilities	 	 	4,844,653	 	 	 	5,391,433	 	 	 	5,218,713	 	
Shareholders' equity:	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock, $1 par value	 	 	124,989	 	 	 	110,270	 	 	 	109,834	 	
Capital in excess of par value	 	 	2,316,507	 	 	 	1,734,835	 	 	 	1,702,946	 	
Retained earnings	 	 	1,743,097	 	 	 	1,862,913	 	 	 	2,129,554	 	
Accumulated other comprehensive loss	 	 	(181,374	)	 	 	(185,282	)	 	 	(26,565	)	
Shareholders' equity	 	 	4,003,219	 	 	 	3,522,736	 	 	 	3,915,769	 	
Total liabilities and shareholders' equity	 	$	8,847,872	 	 	$	8,914,169	 	 	$	9,134,482	 	

 

 
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August 3, 2009
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Table C
 
Vulcan Materials Company	 	 	 	 	 	 	
and Subsidiary Companies	 	 	 	 	 	 	
 	 	 	 	 	 	 	
 	 	(Amounts in thousands)	 	
 	 	Six Months Ended	 	
Consolidated Statements of Cash Flows	 	June 30	 	
(Condensed and unaudited)	 	2009	 	 	2008	 	
 	 	 	 	 	 	 	
Operating Activities	 	 	 	 	 	 	
Net earnings (loss)	 	$	(10,569	)	 	$	154,688	 	
Adjustments to reconcile net earnings (loss) to	 	 	 	 	 	 	 	 	
net cash provided by operating activities:	 	 	 	 	 	 	 	 	
Depreciation, depletion, accretion and amortization	 	 	198,915	 	 	 	192,775	 	
Net gain on sale of property, plant & equipment and businesses	 	 	(3,880	)	 	 	(84,443	)	
Contributions to pension plans	 	 	(2,242	)	 	 	(1,593	)	
Share-based compensation	 	 	14,010	 	 	 	9,169	 	
Excess tax benefit from share-based compensation	 	 	(325	)	 	 	(3,605	)	
Deferred tax provision	 	 	5,671	 	 	 	194	 	
Changes in assets and liabilities before initial	 	 	 	 	 	 	 	 	
effects of business acquisitions and dispositions	 	 	(35,850	)	 	 	(126,566	)	
Other, net	 	 	3,672	 	 	 	(6,566	)	
Net cash provided by operating activities	 	 	169,402	 	 	 	134,053	 	
 	 	 	 	 	 	 	 	 	
Investing Activities	 	 	 	 	 	 	 	 	
Purchases of property, plant & equipment	 	 	(60,101	)	 	 	(198,658	)	
Proceeds from sale of property, plant & equipment	 	 	4,051	 	 	 	13,576	 	
Proceeds from sale of businesses	 	 	11,537	 	 	 	225,783	 	
Payment for businesses acquired, net of acquired cash	 	 	(36,980	)	 	 	(79,822	)	
Redemption of medium-term investments	 	 	30,590	 	 	 	-	 	
Proceeds from loan on life insurance policies	 	 	-	 	 	 	28,646	 	
Withdrawal from nonconsolidated companies, net	 	 	63	 	 	 	469	 	
Other, net	 	 	651	 	 	 	5,008	 	
Net cash used for investing activities	 	 	(50,189	)	 	 	(4,998	)	
 	 	 	 	 	 	 	 	 	
Financing Activities	 	 	 	 	 	 	 	 	
Net short-term payments	 	 	(672,176	)	 	 	(882,000	)	
Payment of short-term debt and current maturities	 	 	(281,461	)	 	 	(483	)	
Proceeds from issuance of long-term debt, net of discounts	 	 	397,660	 	 	 	949,078	 	
Debt issuance costs	 	 	(3,033	)	 	 	(5,633	)	
Settlements of forward starting swaps	 	 	-	 	 	 	(32,474	)	
Proceeds from issuance of common stock	 	 	578,237	 	 	 	55,072	 	
Dividends paid	 	 	(108,752	)	 	 	(106,976	)	
Proceeds from exercise of stock options	 	 	3,697	 	 	 	6,850	 	
Excess tax benefit from share-based compensation	 	 	325	 	 	 	3,605	 	
Other, net	 	 	(193	)	 	 	228	 	
Net cash used for financing activities	 	 	(85,696	)	 	 	(12,733	)	
 	 	 	 	 	 	 	 	 	
Net increase in cash and cash equivalents	 	 	33,517	 	 	 	116,322	 	
Cash and cash equivalents at beginning of year	 	 	10,194	 	 	 	34,888	 	
Cash and cash equivalents at end of period	 	$	43,711	 	 	$	151,210	 	

 

 
 Page 8
August 3, 2009
FOR IMMEDIATE RELEASE
 
Table D
 
Segment Financial Data and Unit Shipments	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(Amounts in thousands, except per unit data)	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	June 30	 	 	June 30	 	
 	 	2009	 	 	2008	 	 	2009	 	 	2008	 	
Total Revenues	 	 	 	 	 	 	 	 	 	 	 	 	
Aggregates (a)	 	$	497,605	 	 	$	679,271	 	 	$	899,417	 	 	$	1,215,309	 	
Asphalt mix and Concrete (b)	 	 	218,308	 	 	 	325,374	 	 	 	411,507	 	 	 	592,002	 	
Cement (c)	 	 	16,853	 	 	 	29,162	 	 	 	36,594	 	 	 	60,249	 	
Intersegment sales	 	 	(51,386	)	 	 	(67,850	)	 	 	(98,243	)	 	 	(129,842	)	
Total net sales	 	 	681,380	 	 	 	965,957	 	 	 	1,249,275	 	 	 	1,737,718	 	
Delivery revenues	 	 	40,479	 	 	 	55,594	 	 	 	72,878	 	 	 	101,172	 	
Total revenues	 	$	721,859	 	 	$	1,021,551	 	 	$	1,322,153	 	 	$	1,838,890	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Aggregates	 	$	126,830	 	 	$	217,866	 	 	$	190,446	 	 	$	344,773	 	
Asphalt mix and Concrete	 	 	19,511	 	 	 	23,266	 	 	 	34,828	 	 	 	43,340	 	
Cement	 	 	(507	)	 	 	4,094	 	 	 	(1,833	)	 	 	11,563	 	
Total gross profit	 	$	145,834	 	 	$	245,226	 	 	$	223,441	 	 	$	399,676	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unit Shipments	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Aggregates	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Customer tons	 	 	37,793	 	 	 	54,331	 	 	 	67,334	 	 	 	96,401	 	
Internal tons (d)	 	 	2,929	 	 	 	4,916	 	 	 	5,441	 	 	 	8,887	 	
Aggregates - tons	 	 	40,722	 	 	 	59,247	 	 	 	72,775	 	 	 	105,288	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Asphalt mix - tons	 	 	1,902	 	 	 	2,725	 	 	 	3,300	 	 	 	4,629	 	
Ready-mixed concrete - cubic yards	 	 	1,129	 	 	 	1,727	 	 	 	2,216	 	 	 	3,320	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cement	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Customer tons	 	 	57	 	 	 	174	 	 	 	124	 	 	 	347	 	
Internal tons (d)	 	 	89	 	 	 	124	 	 	 	190	 	 	 	241	 	
Cement - tons	 	 	146	 	 	 	298	 	 	 	314	 	 	 	588	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Unit Sales Price (including internal sales)	 	 	 	 	 	 	 	 	 	 	 	 	 	
Aggregates (freight-adjusted) (e)	 	$	10.35	 	 	$	10.02	 	 	$	10.31	 	 	$	10.06	 	
Asphalt mix	 	$	53.64	 	 	$	51.93	 	 	$	54.30	 	 	$	50.70	 	
Ready-mixed concrete	 	$	96.74	 	 	$	97.39	 	 	$	98.08	 	 	$	98.41	 	
Cement	 	$	98.70	 	 	$	96.50	 	 	$	97.79	 	 	$	97.32	 	
 
(a)	Includes crushed stone, sand and gravel, sand, other aggregates, as well as transportation and service revenues associated with the aggregates business.	
(b)	Includes asphalt mix, ready-mixed concrete, concrete block, precast, as well as building materials purchased for resale.	
(c)	Includes cement and calcium products.	
(d)	Represents tons shipped primarily to our downstream operations (e.g., asphalt mix and ready-mixed concrete). Sales from internal shipments are eliminated in net sales presented above and in the accompanying Condensed Consolidated Statements of Earnings.	
(e)	Freight-adjusted sales price is calculated as total sales dollars (internal and external) less freight to remote distribution sites divided by total sales units (internal and external).	

 

 
 Page 9
August 3, 2009
FOR IMMEDIATE RELEASE
 
Table E
 
Supplemental Cash Flow Information	 	 	 	 	 	 	
 	 	 	 	 	 	 	
Supplemental information referable to the Condensed Consolidated Statements of Cash Flows	 	 	 	 	
for the Six Months Ended June 30 is summarized below (amounts in thousands):	 	 	 	 	
 	 	2009	 	 	2008	 	

Supplemental Disclosure of Cash Flow Information	 	 	 	 	 	 	
Cash paid (refunded) during the period for:	 	 	 	 	 	 	
Interest, net of amount capitalized	 	$	98,871	 	 	$	89,532	 	
Income taxes	 	 	(9,468	)	 	 	37,055	 	
 	 	 	 	 	 	 	 	 	
Supplemental Schedule of Noncash Investing and Financing Activities	 	 	 	 	 	 	 	 	
Liabilities assumed in business acquisitions	 	 	-	 	 	 	1,292	 	
Accrued liabilities for purchases of property & equipment	 	 	14,684	 	 	 	24,834	 	
Carrying value of noncash assets and liabilities exchanged	 	 	-	 	 	 	42,974	 	
Debt issued for purchases of property, plant & equipment	 	 	1,982	 	 	 	8	 	
Fair value of stock issued in business acquisitions	 	 	-	 	 	 	25,023	 	
Other noncash transactions	 	 	-	 	 	 	16	 	

 
 Page 10
August 3, 2009
FOR IMMEDIATE RELEASE
 
Table F
 
EBITDA and Cash Earnings Reconciliations	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(Amounts in thousands)	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	June 30	 	 	June 30	 	
 	 	2009	 	 	2008	 	 	2009	 	 	2008	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Cash Earnings	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	 	$	64,303	 	 	$	121,135	 	 	$	169,402	 	 	$	134,053	 	
Changes in operating assets and liabilities before initial	 	 	 	 	 	 	 	 	 	 	 	 	 	
    effects of business acquisitions and dispositions	 	 	72,161	 	 	 	35,875	 	 	 	35,850	 	 	 	126,566	 	
Other net operating items (providing) using cash	 	 	(14,652	)	 	 	80,664	 	 	 	(16,906	)	 	 	86,844	 	
(Earnings) loss on discontinued operations, net of tax	 	 	(6,651	)	 	 	470	 	 	 	(6,125	)	 	 	1,022	 	
Provision for income taxes	 	 	9,632	 	 	 	63,492	 	 	 	(3,638	)	 	 	70,327	 	
Interest expense, net	 	 	43,386	 	 	 	37,196	 	 	 	86,510	 	 	 	79,983	 	
Less: Depreciation, depletion, accretion and amortization	 	 	(99,600	)	 	 	(96,919	)	 	 	(198,915	)	 	 	(192,775	)	
EBIT	 	 	68,579	 	 	 	241,913	 	 	 	66,178	 	 	 	306,020	 	
Plus: Depreciation, depletion, accretion and amortization	 	 	99,600	 	 	 	96,919	 	 	 	198,915	 	 	 	192,775	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA	 	$	168,179	 	 	$	338,832	 	 	$	265,093	 	 	$	498,795	 	
Less:  Interest expense, net	 	 	(43,386	)	 	 	(37,196	)	 	 	(86,510	)	 	 	(79,983	)	
           Current taxes	 	 	(6,379	)	 	 	(64,854	)	 	 	9,527	 	 	 	(70,006	)	
Cash earnings	 	$	118,414	 	 	$	236,782	 	 	$	188,110	 	 	$	348,806	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Operating Earnings to EBITDA and Cash Earnings	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating earnings	 	$	65,684	 	 	$	238,469	 	 	$	64,358	 	 	$	305,228	 	
Other income (expense), net	 	 	2,895	 	 	 	3,444	 	 	 	1,820	 	 	 	792	 	
EBIT	 	 	68,579	 	 	 	241,913	 	 	 	66,178	 	 	 	306,020	 	
Plus: Depreciation, depletion, accretion and amortization	 	 	99,600	 	 	 	96,919	 	 	 	198,915	 	 	 	192,775	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA	 	$	168,179	 	 	$	338,832	 	 	$	265,093	 	 	$	498,795	 	
Less:  Interest expense, net	 	 	(43,386	)	 	 	(37,196	)	 	 	(86,510	)	 	 	(79,983	)	
           Current taxes	 	 	(6,379	)	 	 	(64,854	)	 	 	9,527	 	 	 	(70,006	)	
Cash earnings	 	$	118,414	 	 	$	236,782	 	 	$	188,110	 	 	$	348,806	 	

 	 	 	 	 	 	 	 	
EBITDA and Earnings Per Share (EPS) Bridge	 	EBITDA	 	 	EPS	 	 	
 	 	(millions)	 	 	(diluted)	 	 	
Second Quarter Continuing Operations - 2008 Actual	 	$	339	 	 	$	1.27	 	 	
Increase / (Decrease) due to:	 	 	 	 	 	 	 	 	 	
Aggregates:	 	 	 	 	 	 	 	 	 	
Volumes	 	 	(112	)	 	 	(0.64	)	 	
Selling prices	 	 	14	 	 	 	0.08	 	 	
Costs	 	 	8	 	 	 	0.05	 	 	
Asphalt mix and Concrete	 	 	(3	)	 	 	(0.02	)	 	
Cement	 	 	(5	)	 	 	(0.03	)	 	
Selling, administrative and general expenses	 	 	5	 	 	 	0.03	 	 	
Gain on sale of property, plant & equipment and businesses	 	 	(74	)	 	 	(0.34	)	 	
Depreciation, depletion, accretion and amortization	 	 	n/a	 	 	 	(0.02	)	 	
Interest expense, net	 	 	n/a	 	 	 	(0.03	)	 	
Tax rate differential and discrete items	 	 	n/a	 	 	 	(0.13	)	 	
Additional shares outstanding and other	 	 	(4	)	 	 	(0.08	)	 	
 	 	 	 	 	 	 	 	 	 	
Second Quarter Continuing Operations - 2009 Actual	 	$	168	 	 	$	0.14	 	 	

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization.  Cash earnings adjusts EBITDA for net interest and current taxes.  These financial metrics are often used by the investment community as indicators of a company’s ability to incur and service debt.  They are not defined by Generally Accepted Accounting Principles (GAAP); thus, it should not be considered as an alternative to net cash provided by operating activities, operating earnings, or any other liquidity or performance measure defined by GAAP.
 
These metrics are presented for the convenience of investment professionals that use such metrics in their analysis and to provide the Company's shareholders an understanding of metrics management uses to assess performance and to monitor our cash and liquidity positions.  Due to the significant write-up of the assets acquired in the November 2007 acquisition of Florida Rock resulting from the application of SFAS 141, Business Combinations, Vulcan's management internally uses EBITDA, cash earnings and other such measures to assess the operating performance of the acquired Florida Rock assets and consolidated company.  Vulcan's management does not use these metrics as a measure to allocate resources internally.