Vulcan Materials 3 Aug 232023 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to Vulcan Materials Company's Second Quarter 2023 Earnings Call. My name is Angela, and I will be your conference call coordinator today. [Operator Instructions]

Now I will turn the call over to your host, Mr. Mark Warren, Vice President of Investor Relations for Vulcan Materials. Mr. begin. may you Warren,

Financial thank today your and are Carlisle, and Mary and Materials. CEO; in With Andrews Chief President Vice me Tom Senior you morning, interest for Vulcan and Officer. Good Hill, Chairman

earnings company's of Today's disclaimers, today's supplemental release in website. described measures posted a release in presentation These presentation risks the include may are SEC along accompanied forward-looking and call our Reconciliations other reminded are in with at risks, and that and subject by to is be filings Commission. press are and in filings. Securities supplemental any and the release, a Please reconciled detail other discussion financial our our earnings other defined legal statements, Exchange and with which uncertainties. non-GAAP

As the said, participation one of question. limit please in to time, your Q&A the operator interest

I'll And with call Tom. that, over to turn the

of Materials your and Mark, for interest you you, Vulcan in thank Thank all today.

delivered improvement. XXX each year. which the half our cash our XXXX ability both through selling EBITDA basis Gross between by the improvement is to Our execution, results expanded generated a and exceptional solid aggregates-led of with commitment adjusted This highlight and fundamentals our web we for In year-over-year delivering through of $XXX line deliver of our XX% strategic coupled trailing with confidence the execution better-than-expected to disciplines. of prior compounding EBITDA, importantly, teams million XX quarters. both another quarter, points, ton. quarter XX-month in last I'm gives billion of yet That per operating our proud XX Vulcan's profitability product gross billion business year. aggregates and environment our Vulcan and demand first over marks of the margin the $X.X attractive adjusted this in profit $X us in improvement of

across ton per gross a X% varied with year-over-year XXX modest improved year-over-year improved price basis in healthy points. we of moderating but markets. key solid And In improvement with declined profit segment, by very quarter, margin On we gross southeastern Shipments attractive were the Aggregates footprint. and one hand, saw in were in by have growth wet pleased the the Cash our the California XX% increases. Aggregates after rebound markets, a quarter. cost sales most first a where we

other wait the continued activity weather be in And markets. on hand, challenge Texas. On to remember, softer most a residential

underlying the benefited environment. geographies price strong from All continued

price should segment mix improvement price next Concrete the lower residential liquid almost New back growth Our XX%, sales In nearly of cash adjusted in year. tripled prior improvement and drive million, as progress year we profit continue in unit growth this our to cash improved unit half of quarter. from Attractive profitability the the XX% year of price to profitability Asphalt, gross ton. the $XX a is Volume into divested improved contribute quarter, all the $XX over York, through construction contribution now profitability costs volumes margin Concrete slowdown stable X% Pennsylvania points. by the to New the and despite lower impacted asphalt and year and Prior unit cash X,XXX for Gross basis improved benefited in this Concrete that in by XX% results. operations. improved were the activity. of Jersey and

residential. starting Now with

solid and along of particular the favorable reached areas feared. at bottom, impact These levels, segment, in such much showing in single-family our be this as with will growth initially market us then each suggests bottom have -- with remained as most growth fundamentals not activity as in thoughts year and residential improved. recovering that construction low about a healthy demand Let nonresidential thereafter. significant trends me end homebuilders permits In private strength the that the half and projects. employment has manufacturing To residential slowdown demand underlying the few been cinema among demographic starts industrial large the in inventories, and some market. for and starts start is provide date, Recent the the of trends second and were of

Our strong logistics us efforts innovation are choice of Southeastern making footprint on these projects. a many of and supplier

As parks. projects facilities, large an battery shipping and vehicle are to and as electric manufacturing example, we warehouse facilities currently have booked LNG such plants,

the very Jobs at public this budgets bookings and the is activity backlog the shipments unfolding we our increased Act to are largely infrastructure highway is how side, this On will converts starts quickly from and to beginning up pipeline year's this building and as flow expected, demand internally, The XX%. through over upon trailing XX-month level XXXX is Funding investment healthy of levels. reflect shipments. And state activity. increased depend with

year years. We several XX-month are over next expect into accelerating continued Trailing growth also next up infrastructure for the XX%. and growth -- over other starts

for local IIJA significant and and non-highway funding shipments, support in to state strong revenue growth investments. energy, ports addition water, In

expect Based shipment improved as X% on shipments, to X%. and private to initial decline our compared first backdrop, X% our of we the half in volumes decline and half and a XXXX expectations Aggregates now our between between first demand -- to X%

we per is exactly that Of to grow We're profit shareholders. and environment, unit value adjusted consistently and course, earnings gross XX% do improvement our deliver our ton the improve year to regardless and focus this of create cash EBITDA. in demand both approximately positioned for year-over-year that well our profitability

for turn now second to XXXX Andrews the and for additional quarter commentary over I'll And an update our Mary on call some outlook.

good Thanks, Tom, and morning.

exhibits focus months enhancing in core. through performance the our on of the benefits Our strategic our strong X year this operational first

our combination of strength investment-grade have our our by management. EBITDA margin cost points toward of resulting margin gross capital maintain capital disciplined and XXX cash SAG improved our year-to-date and to balance expansion adjusted operational and return have allowed on priorities, through to deploy basis execution each to long-standing We This of sheet. improve us invested a generation the

growth have maintenance Over million greenfields. strategic months, capital the we last XX invested including and in $XXX

deployed returned have via acquisitions, share combination and we've to shareholders million a $XXX repurchases. we of million for and dividends $XXX Additionally,

points XXX a net at basis. our June to Xx on basis XX, June to We at X.Xx we capital XXXX. XX, have debt a XX-month improved basis reduced on our on from XXXX, adjusted have leverage EBITDA return by trailing invested And

positioned well on to objectives enhancing are our strategic also We execute and reach. of further our expanding core our

Trailing and focused improved and while technology expenses of SAG Talent objectives, to SAG by leveraging a in points. percentage invest XX-month, our are on revenue our business continue both critical achieve have we costs. basis remaining as XX to further

to full shift our updates Now guidance. to let year me the

billion now a XX% XXXX, year. billion XX% EBITDA $X mentioned, As in Tom improvement we of $X.X adjusted expect generate to the to prior over between and

Our With our Tom revised our non-aggregates aggregates the from expect gross downstream outlook business. XX% to Asphalt from to volume Concrete. addition momentum generate businesses. in expected results of in expectations XX% approximately in expected to now XX% businesses of that margin profit in our our and mode, With the Asphalt total cash recovery from XX% we the to update total $XXX million to described, of the

growth $XXX spend We continue to and to and $XXX million capital. on maintenance expect between million

mining. spend securing long-term land We high-quality approach Materials. extensive for to opportunistic and our reserves, a Texas, our for reserves million for and our take a of entire the approximately manage for of of Carolina California, alternative success, expect the Because important maximum the to Vulcan on tax communities, business, which land portfolio after and our work strategic we to create our We a depends us. both X and to combination life and on is efficiency. shareholders markets often to of availability, timing North disciplined the purchases are use of strategic Additionally, cycle for land cash $XXX value reserves in critical putting before focus

to highest reclaimed and significant mined value mined Southern that and best properties often as and commercial for in million. once retail Our such XXXX sold generate over use sale and their California property was of reclaimed excess for $XXX completely the development previously can

Of or full is May of updated All course, the be can and land unchanged. strategic the in of on aspects land our remain timing of but management year the guidance, focus other buying portfolio. as reaffirmed our uneven, selling

turn over the closing Tom for to now I'll some call back remarks.

you, Vulcan for our and value half disciplines in and on so outstanding Most thank keeping we to selling focused Thank and each want remain I I closing, an and congratulate shareholders. web Andrews. first web operating to we year, performance to Vulcan that remain our drive on improvements this Mary compound committed can want them other will to In the of challenge other importantly, and continue our safe. teams each to

Andrews Mary and the glad now I be And to questions. take will

today with [Operator Trey from Instructions] The comes Stephens. question first Grooms

Nice work quarter. the in

Trey. Thanks,

maybe of side, I for balance results little I the from So outlook or full on you for you private the and made think, specifically for that on seen improvement non-res, in you've maybe year-to-date know bit year in and that the have on you've I here as high some adjustment is especially look kind based more private you of the into things increase outlook year, there, detail the a Tom, but touch to more on guide drivers what level, primary the I and res an the go the on guess the in could volume a your wanted the year?

year-over-year. only year. thought down mean, part and the a is, after of that's go of wet of looking that second days, us. at it in the out, are we're I in down volumes all Texas Volume drives Southeast last had we first recovery things first washout wet had was recovery the the these in better We faster was quarter, in start, wet. than to we quarter, wet both. also X%. It think good the in for beginning This the was quarter causing seeing great quarter, Interesting I volumes big those California, strong as in a markets. a news had say up as be the shipments pop where in was it the second so soon and I'd what quarter. But a the was

anticipated. original by been I better, have the as The up better been Both held heavy stronger side. projections. has our Nonres than multifamily said, we demand has private also and shipments driven single-family we than think

that's think, bookings got thought about negative where really negative So backlogs We low X% digit. and raised X%. to our why to single we growing. I guidance the are finishes we Highways, year

side private in we than been originally the stronger of was we'll at and end be just XXXX. really build it, stronger will has So anticipated. -- stronger the But

Capital. next with comes from question Shmois The Garik Loop

this was piggyback year. non-res in Trey's I respect trend expected speak recognizing Just question more bit there? Are to light just change heavy sounds the could been on volume like the that it are the -- side you with wanted And the players outlook. highways are has then strong. wondering, if that for you piece any to little seeing a also as

there's if visibility curious of anticipate XXXX. into we what kind Just might any to growth

first. I'll take non-res

year stronger markets markets like That maybe and next some warehouse in in starts As we've risk center. Texas warehouses we California, some better seeing geographies bit the still as you that have it's warehouse, at if some very Florida, and would been look in coming segment, driven those And by in been -- as a of say said, and starts strong which markets. in Georgia, we've projects lot would really got our I segment heavy helpful. now slow on, industrial in said, like a you than thought. Arizona, warehouses. we're growth some seen sectors I of distribution little It's expect,

So warehouses. bit bag a little mixed of

see non-res in in the is volume industrial I'd that And we carry news say big these substantial to projects growth footprint. heavy continue projects in needs. other our good the really

We of through already them won't you out were of on, XXXX. most ship we've of on booked, and projects shipping carry as top XX that, a that, know, these 'XX, already 'XX. that projects think, have, we're bidding currently I of until On big they'll number

matter. does So this really geography in sector,

we So question think originally I'm how we second your matter on of better timing. growth in sorry, non-res expected. than really was a demand. It's I

looking Highway lettings and continues seeing lot side, the funding, side backlogs is of highways the We're our side federal growth you what and to growth ship you today, and a as know, build. continue we're The state our in we're in very to know, as seeing bookings build we'll bidding the in local bidding. what 'XX. in today, we're And good. --

is for and So very again, 'XX, up and in 'XX but low in the single well digit 'XX 'XX. sector setting

with Stanley next from comes Elliott The question Stifel.

of you the pricing environment? broad-based to Could mentioned half the pretty You the talk about first guys momentum year.

You carries are how Is price mix? did to guidance that XXXX? it thinking some timing? And unchanged. even maybe Is the pricing into off maybe you what increases leave and regional that about guys level second

the that in the you quarter. 'XX XX% thought pricing would up I would. Prices we is it Yes. tell unfolding in as were

through to that be XX% up year. carry going expect the full We

in very got told more went and we different more step 'XX. the think and in and higher, We gotten between pricing it sequence I we've I 'XX you, earlier we 'XX, than remember back XXXX. much we price We've if much price 'XX, 'XX. in earlier. as did gotten In was in out

at would Slide you deck. 'XX, year, if you XX. be look above if X a went So full XX, And kind good of looked to December X we in January that the from year-over-year reference -- at up

year until for end 'XX, up the So June from the $X.XX. we're of of beginning this already

higher. So it much is faster, is much compounding, it

reason XXXX, for you The is looking we'll private they The more very you demand will Second side is -- price they're are is moment they this were increases while continue good, better. half as a I'd better. is The that. momentum. why help know, side setup tell really really public is -- mixed, and good growing. but only

all have very visibility you, quite the to us ramp picture. customers, in So confident. be continue of good would to more tell sector I And our a positive

the increases, momentum. the point we us, I X about right out higher planning January this, few up to take a that months. go quarter, What price think XXs that's second -- really expansion. out good And I the than our in earlier important now will We're And goal is bottom expect go in low that important and XXs to we're which continue low feel I would So to is though, did. quarter. again, in our line. first that ultimate margin to in the price We're we really the

really year we -- price, different, percentage-wise, is for little on get a comps but to a on And got that costs. there a We comps little expect we that the number. a continue of few the And next the second important in quarters. easier as probably tougher half

So we continue that low XXs margin expansion.

Dahl Mike from comes with RBC question Capital Markets. next The

a had question businesses. So I on downstream the

nice So mode. referencing and certainly recovery properties margin see you're it's you're good to in that

When bit You U.S. with take to year. business, like legacy I kind it back work your a took of left on up be the runway there the combined still guide step previous this Concrete be will seems look like what a at "normal" downstream. more for legacy business and or quite in

I'm how timing. about your that like get thoughts be in combined just to on about, of businesses million. or thinking your next, is we we normal not million frame that? So be year that wanted be to $XXX saying terms Should or that, to but should this could $XXX the right thinking

Yes.

I the up. for think Volumes quarter -- were up Asphalt margin lines really at all Arizona bit California Prices They were quarter for or were a battled strong and I'll growth weather we were Gross the $XX up of a this year. kind that $XX of it in million. out tough down. first in then unit really million X. because time, were margins a costs wet at Texas, spite and lines. volumes encouraged take we'd X And product said in strong Asphalt had liquid in little last were one Concrete, We Asphalt. we year we our in after in and very catch We product up X%, rain. were XX% of quarter, were second had to quarter. catch this year got we've up a

quarter So great in Asphalt.

are. we grow We told margin would you than to guys this continue we

will from Ready-mix, up really quarter, got covered had local team the So And to did plenty We funding public thought of blowing margin slow go I a unit get the really We really the IIJA in in you to job, and that. encouraged and better start driven tough year. a as was really we only first recovering by sector. with that work rapidly state, it expansion. really -- nice and weather. the there quarter, by the second see

XX%. volumes our down were a same-store basis, on actually So

rain the of of combination up single-family Prices A XX% up unit impact margins XX%. were and were Texas demand. in and

we growth ready mix. back -- mode said So we'd to get and

recovery. really are, continued of we'll product lines. we I'm think Asphalt those and ready-mixed and the that performance teams proud recovery team's think in continue But the I I

horizon, the just is low in need Mike, gross a on think we double-digit still longer-term ready-mix And to I think business, Yes. that margins sort where we of be.

look you a we if in great saw so -- second recovery And quarter. the

If you where XX. at the look we trailing are in

the a where forward some but with on long-term As think you maybe business, ahead see high environment ahead that single Asphalt. we're there right still double forward. that's the basis. XX% digit, digit, said, looking in of the still the with think And to high We've double-digit, of we sort environment similarly, the of have long still now gross pricing low hit term. can runway demand of are over as expansion trailing us, margin and we've margins we and XX-month And well, Asphalt in going would single I we low us, expansion digit long said

Anthony question Pettinari next comes with Citi. from The

on Just following up margins.

cash up XQ. this I think than wondering, costs still pointed year. fair you that bit cost in that previously more digits is a a up little expectation? And were just single I to year-over-year I'm high think

the You half. talked comps second getting in about easier

Just for from from keep XQ if in any XQ? And sort a the guys of bad of good detail especially cost second half? of any terms that in kind guys to perspective there's the we cadence further mind or should

you on of We're services. in feeling were up but high. pressures better and impact the And the X% costs, quarter. really They parts Yes. getting the they're still inflationary

and balance the throughout comps year, guidance single, kind to put As would Parts high the of said, which well. costs continue easier plague in of get as the our for is service we the year. mid us

That also challenges have delivery, better. efficiencies. So which hurts getting of is parts issue our with we

the will was of good in have guy offset I impact operating some our to around us of continue think of this. do diesel, we probably quarter and a efficiencies million. an $XX help which improve And

we we're guide the comping over to high year in single half digit, us but of a you year, of to back numbers. So -- would which the kind lot for mid put full easier the

And growth important Yes. gross a been of years ahead And good cash winner, is certainly, to in the inflationary returning We've basis, second still on see. per our Anthony, I pressure, XX-month of it expect is with price/cost and but in couple our year trailing this got think Aggregates what XX% margin earlier, a was challenging a has expansion gross that. profit to low quarter, great Tom runway on us highlighted a as ton. most

that's helpful. wage you change of maybe of helping And there, availability in this maybe you labor, year? seeing very or Okay, rate just but not labor terms are on that's dollar, or hurting in maybe you any terms of

It's tight. still

I labor better gotten has our perspective. is. think The it from market

think better that. I retention we've also how handle and we gotten

it So was years. couple still but much last the a over where from challenge, of improved

The next question Goldman Sachs. with comes from Jerry Revich

to you past versus we've XX How the that. those of the that that magnitude comp you about one level have and lessons price industry I spoke for if the learned how 'XX, of the you X% backdrop a CAGR Andrews, X% for about just seen big lower, months. the January increase about just X 'XX of the thinking about the price higher from it for over and you inflation talk that feels given industry are wonder the delivered inflation is Tom you're like historical the benefits pricing is thinking get and of

better got better side, said, that got that. this the with and feeling and this being I Construction talk And a this, Everybody's maybe on future think we've out I lot see the lot of than there momentum to side -- demand public people you of good ago. we the months as to segment go the about Materials I more the a to So demand. X helping segment, visibility were if private are can you Construction is the think and going

a better to for price. setup on the good sentiment, demand, all visibility and positive that So momentum pricing

I I would XXXX. As on out I far stream on from our as very a think to January worked thought X. well. And that now, as we're but I right wouldn't year strategy was last magnitude, that working that higher we see strategy -- to look go

The next question comes from Raymond Tyler Brown James. with

little So on the CapEx. a I'm unclear

Tom, purchases? be on acquisition missing M&A pipeline? And is on CapEx $XXX top the million, cash to those on $XXX think but any just it, land not in the I the does expected $XXX of million, include So be on flow flow will I'm sure. line Or million maybe that it? color that just, the statement. but I'm Maybe then

Yes.

an Tyler, we're right million think land. let is reserves to million clarify, as will being the $XXX about spend Tom that strategic $XXX up the strategic to on type So opportunity. terms in addition I planning thinking opportunistic of is hit I'll And M&A. it million. to acquisition PP&E show it But you're as It $XXX to more it in of

clarity private would expect I pipeline. and demand would the would but I we couple bolt-ons. we a Yes. with we're M&A But improving We've to always maybe will the acquisition -- little working the thought. got a and strategic help I that this describe the simply to picture pipeline. have on, the than think better improve probably looked it

with The Tanners Wolfe comes next from question Research. Timna

strategic Wanted to on follow up uses. cash the

Or reach would buyback ore color might property the need wondered talking of you this purchases, since just about pandemic similarly, that there? first because to opportunistic for some if this reserves, future and So comment is And availability? what plans. illustrate on the a is share just your

land piece. we'll think the question. take I'll that split I

opportunistic. selling buying and It when like also both lumpy of right. reserves is for that's by exactly You're lot times, a both and up, acquisition, land going reserves, these buying are come to A are much be they nature. bolt-on but

we 'XX, in Mary worth heard million sold think of where Andrews, was I land. $XXX You it

when -- comes, to it's So comes is hard it plan. it it

you, most the Texas very would primarily I California, got. in Sometimes reserves of They can't. you you were I'm we North with can, tell and the pleased time Carolina.

capital of effort So and good give with glad them team's pleased on use that. to the

to shareholders part through priorities. been through returning excess and business, allocation reinvesting terms appropriately believe in our of the the in long-standing CapEx, Yes. business of repurchases operating share cash dividend. maintenance repurchases, growing We through following after and returning capital the has And cash

cash slower second And allocation same quarter. the attractive follow our the year half really, just We repurchased year. disciplined our half approach. shares $XX M&A So of generation in with of the in in of million will the and decisions capital first the back

The Ng is next question from Jefferies. with Phil

when Congrats volumes on bottoming the strong your it on to calling the be of side. kind for for with quarter. down, at on down guidance momentum XXXX? want the frankly kind mindful infrastructure we Any back on XQ. building feels end you're we average and is how side of on half, should look it, My XXXX, you're X%. talking about to industrial time momentum growth think we you're be infrastructure when you those modestly look in Any comps calling and in to question And heavy call seeing that conservative. to X% good housing pretty and color And and you're it profile heavy commercial markets out X of, how to out in with the one-offs easier the about

Yes.

you the the tell our side, if shipments the to course, of downside kind at that single-family than seen. the would we've would fall you think minus guidance, off, of look to low X I have upside,

in kind that -- the for get single-family. XXXX. bottom -- we're of bottom And better it better think think gets seeing we hopefully, for I I we

to X, do. happen, got have us more he minus a our going piece the half. second to why we have we How in start some to I and range we is at that's and little side, of do -- faster. volume. have see projects that we'd little It we the heavy think the help where the could a On high

going in XXXX help the be heavy on think I more to industrial. it's

Is there growth like Infra. going year? next way single-digit that Is to year? mid- low to that single look for a high think I digits about growth story mean, to how next a profile is

infrastructure, other you On mean?

look XXXX right? year, we Just is the all infrastructure with or in growth? high growth have talked been flowing through, to when mid-single-digit out actively about single-digit like right? Tom, that lettings general, you low bidding So mean, a I single-digit this growth

extremely We talked would up it. the I is think trailing local haven't about up too XX%. the healthy, more. see in Starts were the infrastructure got to non-highway funding is to months, XX% it's and non-highway IIJA very that was that's highways, in good. call. I early probably and is looking federal we up state infrastructure and also just and it Like X X address other

So good better single 'XX, probably for again for low much digit but 'XX.

question next Thompson Research Kathryn from with Group. The Thompson comes

This Kathryn. is actually Brian Biros on for

work business, kind volume growth Just performance what bit new maybe that are the can it's it's just the specifically, Maybe more a more touch pipeline? on work, little the Asphalt there? on business in seeing of just market you to that down more projects coming repair you the or come

It's is -- as far as the paving both.

You're seeing both new and recovery.

had asphalt. Texas, the all. performance. and Flip I am a which probably a do is You much the California with quarter, very Arizona do from catch-up we I was margin volume in rain the which just lot pricing big first the and didn't of unit at that because performance had some we and side of have with growth overlays I mean, -- pleased is pleased

So growth the margin mode start think back the really and to funding line. in year a I good in product only Asphalt. for unit growth help We're going this highways to in is

Next from Thompson with comes Thalhimer question Davis. Adam

price increases hope well a ago, be and January year? Great next think might bode that as think characterized What it better, quarter. there or X you was increases does midyear that? for was month mixed. the Tom, I I

to different. the from said, went I out earlier was 'XX as XXXX. We Remember, very Yes. intentionally sequencing 'XX much in higher, much

of project pricing that is strategy shipment have and in early markets. impact and It it it's the 'XX, XXXX. will higher a good I work towards was of on some 'XX, but expected, so from timing strategy would to to some January midyear was So price in a as increases. But simply matter larger that's for market segments. 'XX. successful It from successful also expected. 'XX, some impact does It think a -- much that you impact of that kind tell that's backlogs. -- maybe I have get an as on and really timing don't Again, little of going in any we'll X momentum slows bit

The next question is from Truist. Keith Hughes with

Give to us situation sort the of all? Any Macquarie some process. in update there at on Mexico and movement the and

our on is XXXX. year. We'll same. a the claim. of should very tribunal have the position. NAFTA have about short news. We We final hearing about -- proceedings have finish on feel We answer year in good have 'XX. very We've the the evidence, -- good the in result feel we'll We but NAFTA this very the that legal feel No the our and a got case. we good So ruling final that about this won't

best be what you're in if And scenario that? would successful the case

I that, get of have check The a shutdown think our magnitude the because tribune. and of a we business. we with disclose the confidential of that agreement large we can't because

Next question comes Longbow Research. from MacGregor David with

to disruptive estimate being in your wanted just carryforward half and sort talked I the the a of quarter. quarter. Texas What's the half maybe ask second on third about nice first second the bit of quarter into you weather? the due California, to Tom, best little in the guidance tons

Arizona California, I saw the in in think you that quarter.

that some have will quarter in in of Texas. probably the third You

I'm we're I days seeing sure getting they wet work from coming firepower our said the me got of which with out that And is our better. speedy after -- that our the is of is the what it tells of all funding. earlier, I'm much lot impressed contractors As because a markets, recovery public in

carryforward pretty able maybe think Everybody I little don't in think lot you see a So of to been because a up I else, bit they've quick. catch Texas.

Research. with question next Michael Dudas Vertical comes from The

some helpful very either maybe better-than-expected second cost point the as all volume half towards you're observations but for going what pricing, the 'XX, Tom, year on we isolate if 'XX maybe in to as 'XX, of provided into you better-than-expected would or above? the better-than-expected and you expectations exit

we to from if You're saying 'XX 'XX? go

and end better your of second better better year to expectation results as execution your like get or the as the or would have be utilization pricing, high the year-end, Yes, we through, would through it volumes? half say, getting of range EBITDA cost been come

faster -- work I how obviously unless think going best would one time. we that that shot on you don't it see -- take side pick this think, tell bit a going got we because to we the through got pricing, a On res, mid-single is to a to I in end we'll midyear, at at point, we which think expected piece, happen of on got if I flip day, it to coming little slowdown of I the The you maybe get we it's is that right, have probably And I had efficiencies piece we've at that. some flow it I cost year. between would more the than at end if I the we've and at the little 'XX. one, the bigger of is about we've pick a the in slowdown on we volume there. digits of comps, guess again, be but got how the probably think

Brent with Thielman The comes from D.A. next Davidson. question

the the this going thinking forward. Tom, to and question to quarter guess gross see my improvement in nice this about quarter. Aggregates was margin I more continued

With the reported that negative to in profitability to net of some actually East those was that under your and segment? pressure, a weather some due variables,

possibly sorry, couldn't point you understand what out negative. I'm as

do East business. The very East. in margins We have our Coast attractive

of in weather and these non-res I think projects the while strength large the there private A those areas. industrial was lot in some wet

quite so And were volumes in our those healthy markets.

wet couple tell the in think weather had the you recovery that the but will impressive. time East we impressed I flow I was those also of would East, was next days thunderstorms when through, -- I with

we appears turn closing further this over remarks. I time. now no Tom to any at additional will for back questions the have program It

Materials your hope all your and thank and that interest you time stay healthy your you. and your Thank Vulcan of to We support to for families forward you and and we safe. Company. throughout the quarter, Well, look you talking

participation. program. does Thank conclude This today's for you your

You may time. disconnect any at