EX-99 2 pr4thqtr.htm SECURITIES AND EXCHANGE COMMISSION

Exhibit 99

March 6, 2001
FOR IMMEDIATE RELEASE
Investment Analysts: Charles R. Brown
Media: Joy C. Phillips
Legal: William F. Denson, III
(205) 298-3220

VULCAN ESTABLISHES ADDITIONAL PROVISION
FOR ARBITRATION DETERMINATION

        Birmingham, Alabama, March 6, 2001 - Vulcan Materials Company (NYSE:VMC) announced today that it will establish an additional provision for the fourth quarter of 2000 related to the $23 million arbitration determination in California against its subsidiary, which was discussed in the Company's March 1st press release. This provision will affect 2000 earnings per share rather than first quarter 2001. As a result, diluted earnings per share for 2000 are $2.16, as compared to the $2.29 preliminary results announced on January 22, 2001. As previously announced, the Company is vigorously pursuing all legal options with respect to this matter, since the Company believes the magnitude of this arbitration award was greatly in excess of any actual damages suffered by the claimant.

        Vulcan Materials Company, an S&P 500 company, is a producer of industrial materials with significant positions in two industries. It is the nation's foremost producer of construction aggregates, a major producer of other construction materials, and a leading chemicals manufacturer, supplying chloralkali and other industrial chemicals.

Table A

Vulcan Materials Company
and Subsidiary Companies
 

(Thousands of Dollars)


Consolidated Statements of Earnings
(Condensed and unaudited)                

Three Months Ended   
        December 31            
2000                      1999    

Twelve Months Ended   
        December 31            
2000                      1999    

Net sales
Cost of goods sold
Gross profit on sales
Selling, administrative and
    general expenses
Other operating costs
Minority interest in (earnings) losses
Other income (charges), net
Earnings before interest
    and income taxes
Interest income
Interest expense
Earnings before income taxes
Provision for income taxes

$  630,398 
   500,836 
129,562 

54,261 
7,561 
1,510 
   (14,790)

54,460 
1,095 
     15,376 
40,179 
      5,558 

$  605,590 
   454,705 
150,885 

50,864 
7,840 
16 
     8,588 

100,785 
1,326 
     9,626 
92,485 
     27,668 

$ 2,491,744 
 1,908,057 
583,687 

216,978 
26,220 
7,843 
      7,315 

355,647 
4,678 
     48,087 
312,238 
     92,345 

$ 2,355,778 
 1,769,327 
586,451 

205,643 
22,714 
(54)
     37,767 

395,807 
4,330 
     48,576 
351,561 
     111,868 

Net earnings

 $   34,621 

 $   64,817 

 $ 219,893 

 $ 239,693 


Basic net earnings per share
Diluted net earnings per share


$  0.34 
$  0.34 


$  0.64 
$  0.64 


$  2.18 
$  2.16 


$  2.38 
$  2.35 


Average common shares outstanding
     (thousands)



101,272 



100,799 



101,037 



100,895 

Average common shares outstanding,
    assuming dilution (thousands)


102,081 


101,904 


102,012 


102,190 

Cash dividends per share
    of common stock


$ 0.210 


$ 0.195 


$ 0.840 


$ 0.780 

Depreciation, depletion and
    amortization deducted above


$ 67,108 


$ 54,645 


$ 232,365 


$ 207,108 


Effective tax rate


13.8% 


29.9% 


29.6% 


31.8% 


See accompanying Notes to Financial Statements

      

Table B

Vulcan Materials Company
and Subsidiary Companies
 

(Thousands of Dollars)

  



Operating Results by Reportable
Segment (Unaudited)                        


Three Months Ended   
        December 31            
2000                      1999    


Twelve Months Ended   
        December 31            
2000                      1999    

Variance
Fav/(Unfav)
2000 YTD vs
   1999 YTD 

Net sales
Construction Materials
Chemicals
     Total

Earnings Before Interest
     and Income Taxes
Construction Materials
Chemicals
     Segment* earnings

Earnings Before Interest,
     Income Taxes, Depreciation
     and Amortization (EBITDA)**
Construction Materials
Chemicals
     Segment* EBITDA**


 $  473,870 
   156,528 
 $  630,398 



 $   86,968 
   (32,508)
 $   54,460 




 $  134,977 
    (13,409)
 $  121,568 


 $  461,023 
   144,567 
 $  605,590 



 $   86,367 
    14,418 
 $  100,785 




 $  129,358 
     26,072 
 $  155,430 


 $1,885,987 
   605,757 
 $2,491,744 



 $  375,734 
    (20,087)
 $  355,647 




 $  553,331 
     34,681 
 $  588,012 


 $1,810,544 
   545,234 
 $2,355,778 



 $  369,996 
     25,811 
 $  395,807 




 $  530,682 
     72,233 
 $  602,915 


 $    75,443 
     60,523 
 $  135,966 



 $       5,738 
    (45,898)
 $   (40,160)




 $     22,649 
    (37,552)
 $    (14,903) 

* After allocation of corporate expenses and income, other than interest, and after assignment of equity income to the segments with which it is related in terms of products and services. Allocations are based on average capital employed and customer sales.

** EBITDA is presented because it is a widely accepted financial indicator of a company's ability to service and/or incur indebtedness. However, EBITDA should not be construed as an alternative to net income as a measure of a company's operating results or to operating cash flow as a measure of liquidity.


See accompanying Notes to Financial Statements

Table C

Vulcan Materials Company
and Subsidiary Companies
 

(Thousands of Dollars)

Consolidated Balance Sheets
(Condensed and unaudited)

    December 31
2000    

    December 31
1999    


Assets
Cash and cash equivalents
Accounts and notes receivable:
     Accounts and notes receivable, gross
     Less: Allowance for doubtful accounts
          Accounts and notes receivable, net
Inventories:
     Finished products
     Raw materials
     Products in process
     Operating supplies and other
          Inventories
Deferred income taxes
Prepaid expenses
          Total current assets
Investments and long-term receivables
Property, plant and equipment:
     Property, plant and equipment, cost
     Less: Reserve for depr., depl., & amort.
          Property, plant and equipment, net
Goodwill
Deferred charges and other assets
          Total



$     55,276 

390,849 
      (8,982)
381,867 

155,258 
15,578 
1,020 
      27,188 
199,044 
44,657 
      13,660 
694,504 
72,558 

3,496,204 
 (1,647,570)
1,848,634 
562,044 
      50,834 
$  3,228,574 



$     52,834 

339,413 
      (9,722)
329,691 

131,032 
13,735 
933 
      33,034 
178,734 
52,931 
      10,534 
624,724 
77,064 

3,149,897 
 (1,510,182)
1,639,715 
454,783 
      43,207 
$  2,839,493 


Liabilities and Shareholders' Equity
Current maturities of long-term debt
Notes payable
Trade payables and accruals
Other current liabilities
          Total current liabilities
Long-term debt
Deferred income taxes
Minority interest
Other noncurrent liabilities
Shareholders' equity
          Total



$         6,756 
270,331 
181,317 
     113,827 
572,231 
685,361 
268,797 
103,626 
127,063 
  1,471,496 
$  3,228,574 



$         6,175 
101,695 
136,056 
   142,716 
386,642 
698,862 
250,833 
67,979 
111,524 
  1,323,653 
$  2,839,493 


Current ratio


1.2 


1.6


See accompanying Notes to Financial Statements

    

Table D

Vulcan Materials Company
and Subsidiary Companies
 

(Thousands of Dollars)    


Consolidated Statements of Cash Flows
(Condensed and unaudited)                                    

 Twelve Months Ended      
         December 31            
   2000                     1999    


Operating Activities
Net earnings
Adjustments to reconcile net earnings to
     net cash provided by operating activities:
          Depreciation, depletion and amortization
          Increase in assets before
               effects of business acquisitions
          Increase (decrease) in liabilities before
               effects of business acquisitions
          Other, net
               Net cash provided by operating activities

Investing Activities
Purchases of property, plant and equipment
Payment for business acquisitions, net of acquired cash
Proceeds from sale of property, plant and equipment
Withdrawal of earnings from nonconsolidated companies
               Net cash used for investing activities

Financing Activities
Net borrowings - commercial paper and bank lines of credit
Payment of short-term debt
Payment of long-term debt
Proceeds from issuance of long-term debt
Purchases of common stock
Dividends paid
Contributions from minority interest of consolidated subsidiary
Other, net
               Net cash provided by financing activities

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year



$  219,893 


232,365 

(55,606)

30,613 
     (9,108)
   418,157 


(340,409)
(265,081)
62,349 
      13,227 
   (529,914)


168,635 
(6,075)
(8,000)
- 
- 
(84,765)
35,648 
      8,756 
  114,199 

2,442 
    52,834 
$   55,276 



$  239,693 


207,108 

(34,468)

(6,610)
     (2,754)
   402,969 


(314,650)
(780,440)
103,067 
      16,134 
  (975,889)


91,342 
(96,276)
(1,180)
496,875 
(12,508)
(78,730)
36,064 
      9,607 
  445,194 

(127,726)
   180,560 
$   52,834 


See accompanying Notes to Financial Statements

    

Table E

Notes to Financial Statements


1. Supplemental Cash Flow Information

Supplemental information referable to the Consolidated Statements of Cash Flows
for the twelve months ended December 31 is summarized below (amounts in thousands):
 

2000   

1999  

Supplemental Disclosure Of Cash Flow Information
Cash paid during the period for:
     Interest, net of amount capitalized
     Income taxes

Supplemental Schedule Of Noncash Investing and Financing Activities
Liabilities and long-term debt assumed in business acquisitions
Fair value of stock issued in business acquisitions
Debt issued in purchase of assets, net of assumed liabilities



$  49,253 
70,615 


16,742 
1,300 
3,421 



$  39,079 
85,756 


480,087 
10,580 
8,645