For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240510:nBw8SrMf8a&default-theme=true
CRH Q1 2024 Results
CRH plc (NYSE:CRH) (LSE:CRH):
Key Highlights
Summary Financials Q1 2024 Change
Total revenues $6.5bn +2%
Net income $114m n/m(1)
Net income margin 1.7% +220bps
Adjusted EBITDA* $445m +15%
Adjusted EBITDA margin* 6.8% +80bps
EPS $0.16 n/m(1)
*Solid start to the year in the seasonally least significant quarter
*Performance driven by positive pricing, early-season activity & benign
weather in key markets
*Integrated solutions strategy delivering further growth in key financial
metrics
*$2.1bn materials acquisition in Texas complete; $60m run-rate synergies
identified
*Seven other strategic bolt-on acquisitions completed in the first three months
for $0.1bn
*$0.7bn agreement to acquire majority stake in Adbri in Australia
*Proceeds from divestitures of $0.7bn primarily related to the initial phases
of the Lime disposal
*Ongoing share buyback; $0.6bn completed to date in 2024; commencing new $0.3bn
quarterly tranche
*Declaring new quarterly dividend of $0.35 (+5% annualized) payable on June 26
*Reaffirming FY24 guidance; Net income $3.55bn to $3.80bn; Adjusted EBITDA*
$6.55bn to $6.85bn
Albert Manifold, Chief Executive, said:
"We are pleased to report a good first quarter performance in what is the
seasonally least significant period for our business. That performance was
supported by positive pricing momentum, early-season project activity,
favorable weather in certain regions and the contribution from acquisitions.
We believe the strength of our balance sheet together with our relentless
focus on the efficient allocation of our capital enables us to capitalize on
the opportunities we see for further growth and value creation in 2024 and
beyond. Given this backdrop, we are pleased to reaffirm our previous guidance
for 2024."
Announced Friday, May 10, 2024
__________________________________
(*Represents non-GAAP measure. See 'Non-GAAP Reconciliation and Supplementary
Information' on pages 12 to 13.)
(1 n/m - Not meaningful.)
Q1 2024 Results
Performance Overview
CRH delivered a solid start to the year as early-season project activity and
favorable weather in certain regions of North America were further supported
by pricing progress and contributions from acquisitions offsetting lower
volumes in Europe in the seasonally least significant quarter for the Company.
Total revenues of $6.5 billion (Q1 2023: $6.4 billion) were 2% ahead of the
prior year while organic revenues* were 1% ahead. Net income of $114 million
(Q1 2023 net loss: $31 million) was ahead of the prior year reflecting good
operating performance and a gain on the completion of phases one and two of
the European Lime divestiture. Adjusted EBITDA* of $445 million (Q1 2023: $386
million) was 15% ahead as a result of the continued delivery of our integrated
solutions strategy, strong commercial progress, ongoing cost control and
further operational efficiencies. Organic Adjusted EBITDA* was 12% ahead of Q1
2023. CRH’s net income margin of 1.7% (Q1 2023 net loss margin: 0.5%) and
Adjusted EBITDA margin* of 6.8% (Q1 2023: 6.0%) were both ahead of the
comparable prior year period.
* Americas Materials Solutions' total revenues were 16% ahead of Q1 2023, as
early-season project activity and favorable weather in key markets supported
activity along with price increases across all lines of business and good
contributions from acquisitions. Adjusted EBITDA was well ahead in this
seasonally small quarter, as pricing progress and operational efficiencies
offset the impact of higher input costs.
* Americas Building Solutions delivered a positive performance with total
revenues 2% ahead of Q1 2023, led by price improvements as well as
contributions from acquisitions. Adjusted EBITDA was 2% ahead supported by
pricing progress and operational efficiencies along with good performances
from recent acquisitions.
* Europe Materials Solutions' total revenues were 8% behind Q1 2023 as positive
price momentum was offset by lower activity levels due to unfavorable winter
weather and the divestiture of the Lime operations. Adjusted EBITDA was 32%
ahead, driven by good commercial management and lower energy costs along with
a continued focus on cost management and operational efficiencies.
* Europe Building Solutions' total revenues were 10% behind Q1 2023, as
favorable pricing was offset by subdued demand in new-build residential
markets as well as adverse winter weather conditions. Adjusted EBITDA was 38%
behind as a result of lower activity levels, partially offset by cost saving
actions.
CRH's earnings per share was higher than Q1 2023 at $0.16 (Q1 2023 loss per
share: $0.05).
Acquisitions and Divestitures
In the first three months of 2024, CRH completed eight acquisitions for a
total consideration of $2.2 billion, compared with $0.2 billion in the first
quarter of 2023. The largest acquisition in Q1 2024 was in Americas Materials
Solutions where the Company completed the acquisition of a portfolio of cement
and readymixed concrete assets and operations in Texas for a total
consideration of $2.1 billion. The integration of the business is well
underway and we expect to realize run-rate synergies of $60 million by year
three. In addition, Americas Materials Solutions completed a further two
acquisitions, Americas Building Solutions completed three acquisitions and
Europe Materials Solutions completed two acquisitions. On April 5, 2024, the
Company also acquired a materials solutions business, including two hard rock
quarries, in California. The acquisition represents an attractive entry point
into California for Americas Materials Solutions, particularly due to its
long-lived hard rock reserves and vertically integrated asphalt and readymixed
concrete operations.
With respect to divestitures, CRH realized proceeds from divestitures and
disposals of long-lived assets of $0.7 billion, primarily related to the
divestiture of its European Lime operations. The Lime transaction was
structured in three phases with two phases of the divestiture, comprising
CRH’s Lime operations in Germany, Czech Republic, Ireland and the United
Kingdom now complete. The remaining phase, consisting of operations in Poland,
is expected to complete in the second half of 2024. In December 2023, the
Company entered into a sales agreement to dispose of certain of its cement and
materials assets in Canada, which closed on April 1, 2024.
In February 2024, CRH entered into a binding agreement to acquire a majority
stake in Adbri Ltd (Adbri), a materials business in Australia. The proposed
transaction will result in CRH acquiring approximately 53% of the issued share
capital for $0.7 billion, increasing CRH’s total shareholding to
approximately 57%. Adbri has high-quality assets and leading market positions
in Australia that complement CRH’s core competencies in cement, concrete and
aggregates while creating additional opportunities for growth and development
for our existing Australian business. The proposed transaction is subject to
customary terms and conditions and is expected to complete in 2024.
Capital Allocation
As previously announced, CRH has transitioned to quarterly dividend payments.
In line with the Company's policy of consistent long-term dividend growth, the
Board has declared a new quarterly dividend of $0.35 per share, representing
an annualized increase of 5% on the prior year. The dividend will be paid
wholly in cash on June 26, 2024, to shareholders registered at the close of
business on May 24, 2024. The ex-dividend date will be May 23, 2024.
As part of its ongoing share buyback program, CRH repurchased approximately
five million ordinary shares in Q1 2024 for a total consideration of $0.4
billion. On May 9, 2024, the latest tranche of the share buyback program was
completed, bringing the year-to-date cash returned to shareholders to $0.6
billion. We are pleased to announce that we are commencing an additional $0.3
billion tranche to be completed no later than August 7, 2024. We will continue
to assess our share buyback program for the remainder of 2024 with further
updates on a quarterly basis.
Innovation and Sustainability
We believe the transition to a more sustainable built environment represents a
significant commercial opportunity for CRH. We continue to accelerate
investment in innovation to deliver on our sustainable solutions strategy and
address three global challenges of water, circularity and decarbonization. By
continuing to meet the changing needs of our customers and society, we aim to
drive further growth and value creation.
2024 Full Year Outlook
Notwithstanding the positive start to the year, it is still early in the
construction season and we are pleased to reaffirm our previous guidance for
2024. Overall, we expect a favorable market backdrop and continued positive
pricing momentum in 2024. Our operations in North America are expected to
benefit from significant infrastructure activity in our markets and increased
investment in key non-residential segments, while in Europe, we expect good
underlying demand in infrastructure and key non-residential markets, further
supported by disciplined cost control. Residential construction, particularly
new-build activity, is expected to remain subdued across our markets in the
near-term. Assuming normal seasonal weather patterns and no major dislocations
in the macroeconomic environment, CRH remains well positioned for another year
of growth in 2024.
2024 Guidance
(in $ billions, except per share data) Low High
Net income (i) 3.55 3.80
Adjusted EBITDA* 6.55 6.85
EPS (i) $5.15 $5.45
Capital expenditure 2.2 2.4
((i) 2024 Net income and EPS are based on approximately $0.4 billion interest
expense, net, effective tax rate of approximately 23% and a year-to-date
average of approximately 690 million of common shares outstanding.)
Americas Materials Solutions
Analysis of Change
in $ millions Q1 2023 Currency Acquisitions Divestitures Organic Q1 2024 % change
Total revenues 1,895 — +69 — +238 2,202 +16%
Adjusted EBITDA (35) — +25 — +25 15 n/m(1)
Adjusted EBITDA margin (1.8)% 0.7%
Americas Materials Solutions’ total revenues were 16% ahead of the first
quarter of 2023 in a seasonally small quarter, driven primarily by price
increases, higher volumes across all lines of business and a positive
contribution from acquisitions, including the acquisition of cement and
readymixed concrete assets in Texas which closed in early February 2024.
Organic total revenues* were 13% ahead.
In Essential Materials, total revenues increased by 12%. This reflects an 8%
increase in aggregates pricing which was adversely impacted by geographic mix
and a 9% increase in cement pricing. Aggregates volumes increased by 8% and
cement volumes increased by 6%, due to favorable weather in the West and Great
Lakes regions which enabled early commencement of projects, together with the
positive impact from acquisitions.
In Road Solutions, total revenues increased by 19% driven by higher pricing
and increased activity levels through continued funding support relating to
the Infrastructure Investment and Jobs Act. Asphalt prices increased by 5%
while volumes were 11% ahead of the comparable period in 2023 due to favorable
weather in key regions and early-season project activity. Paving and
construction revenues for the first quarter of 2024 increased by 20%.
Readymixed concrete pricing was 8% higher than the first quarter of 2023,
while volumes were 9% ahead. We have seen continued positive momentum in
bidding activity, with construction backlogs ahead of the prior year
comparable period.
First quarter 2024 Adjusted EBITDA for Americas Materials Solutions of $15
million was ahead of the first quarter of 2023 as increased pricing and
operational efficiencies mitigated the impact of higher labor, subcontractor
and raw materials costs. Organic Adjusted EBITDA* was ahead of the first
quarter of 2023. Adjusted EBITDA margin increased by 250bps.
Americas Building Solutions
Analysis of Change
in $ millions Q1 2023 Currency Acquisitions Divestitures Organic Q1 2024 % change
Total revenues 1,661 — +38 — (6) 1,693 +2%
Adjusted EBITDA 301 — +5 — +2 308 +2%
Adjusted EBITDA margin 18.1% 18.2%
Americas Building Solutions recorded total revenues growth of 2%, driven by
positive acquisition performance and increased pricing. Organic total
revenues* were in line with the first quarter of 2023.
In Building & Infrastructure Solutions, total revenues declined by 4% due
to unfavorable weather in certain markets as well as the impact of subdued
residential demand which negatively impacted activity levels. The
non-residential and infrastructure construction backdrop remains supported
through increased funding for critical water, energy and telecommunications
infrastructure.
In Outdoor Living Solutions, total revenues increased by 5%, with growth
across most regions, driven by strong sales into the retail channel,
particularly in lawn and garden products, along with increased demand in the
professional business channel.
First quarter 2024 Adjusted EBITDA for Americas Building Solutions was 2%
ahead of the comparable period in 2023, 1% ahead on an organic* basis, driven
by higher pricing and cost containment initiatives which offset the impact of
lower volumes and cost inflation, particularly in labor. As a result, Adjusted
EBITDA margin was 10bps ahead of the first quarter of 2023.
Europe Materials Solutions
Analysis of Change
in $ millions Q1 2023 Currency Acquisitions Divestitures Organic Q1 2024 % change
Total revenues 2,178 +40 +26 (117) (114) 2,013 (8)%
Adjusted EBITDA 68 +1 +4 (24) 41 90 +32%
Adjusted EBITDA margin 3.1% 4.5%
Total revenues in Europe Materials Solutions declined by 8%, or 5% on an
organic* basis, driven by lower volumes across Western Europe, partly offset
by volume growth in Central and Eastern Europe and continued pricing progress.
In Essential Materials, total revenues were 10% behind the comparable period
in 2023 due to the completed divestiture of phases one and two of our European
Lime operations and lower volumes. Aggregates pricing was 3% ahead and overall
cement pricing, which was adversely impacted by geographic mix, was in line
with the first quarter of 2023, or 2% ahead excluding the Philippines.
Aggregates volumes declined by 6% while cement volumes were 2% behind due to
lower activity levels, particularly in Western Europe which was impacted by
unfavorable weather in several key markets. This was partly offset by volume
growth in Central and Eastern Europe.
In Road Solutions, pricing progress was offset by reduced volumes due to
adverse weather which resulted in total revenues being 5% behind the 2023
comparable period. Asphalt pricing increased by 1%, while volumes declined by
9%. Paving and construction revenues decreased by 3%. Readymixed concrete
pricing was in line with the first quarter of 2023, while volumes decreased by
13%.
Adjusted EBITDA in Europe Materials Solutions was $90 million, 32% ahead of
the comparable period in 2023, and 59% ahead on an organic* basis, primarily
driven by increased pricing, lower energy costs and operational efficiencies.
Adjusted EBITDA margin increased by 140bps compared with the first quarter of
2023.
Europe Building Solutions
Analysis of Change
in $ millions Q1 2023 Currency Acquisitions Divestitures Organic Q1 2024 % change
Total revenues 693 +6 +7 — (81) 625 (10)%
Adjusted EBITDA 52 — +1 — (21) 32 (38)%
Adjusted EBITDA margin 7.5% 5.1%
Total revenues in Europe Building Solutions declined by 10%, or 12% on an
organic* basis, versus the first quarter of 2023, with subdued new-build
residential activity continuing in the first quarter of 2024.
Within Building & Infrastructure Solutions, total revenues declined by 12%
compared with the first quarter of 2023. Infrastructure Products revenues
increased, benefiting from acquisitions offsetting lower activity levels and
project delays in key markets. Revenues in Precast and Construction
Accessories were negatively impacted by adverse weather conditions and muted
new-build residential activity in several markets.
Revenues in Outdoor Living Solutions were 2% ahead of the comparable period in
2023 through pricing increases, however volumes were impacted by prolonged
winter weather in certain key markets.
Adjusted EBITDA in Europe Building Solutions declined by 38% versus the
comparable prior year period, a 40% decrease on an organic* basis. Organic
volume declines were partially offset by disciplined commercial management,
cost saving initiatives and lower raw materials costs. Adjusted EBITDA margin
decreased by 240bps compared with the first quarter of 2023.
Other Financial Items
Depreciation, depletion and amortization charges of $0.4 billion were in line
with the first quarter of the prior year (Q1 2023: $0.4 billion).
Interest income of $43 million (Q1 2023: $40 million) was in line with Q1
2023. Interest expense of $133 million (Q1 2023: $81 million) was higher than
the comparable period in 2023, primarily due to an increase in gross debt
balances and higher interest rates on new debt issued.
Other nonoperating income, net was $161 million (Q1 2023: $nil) primarily
related to the gain on the divestiture of phases one and two of the Company's
European Lime operations and unrealized gains on certain investments.
Earnings per share was higher than Q1 2023 at $0.16 (Q1 2023 loss per share:
$0.05) due to a positive operating performance and the gain on the divestiture
of the Lime operations.
Balance Sheet and Liquidity
Total short and long-term debt was $12.7 billion at March 31, 2024, compared
with $11.6 billion at year-end 2023 and $9.8 billion at March 31, 2023. In the
three months ended March 31, 2024, $1.8 billion of commercial paper was issued
across the U.S. Dollar and Euro Commercial Paper Programs. In January 2024,
€600 million of euro-denominated notes were repaid on maturity. Net Debt* at
March 31, 2024, was $9.6 billion, compared with $5.4 billion at December 31,
2023, and $5.3 billion at March 31, 2023. The increase in Net Debt* compared
with December 31, 2023, reflects outflows from operating activities, the
significant acquisition of a portfolio of cement and readymixed concrete
assets and operations in Texas, cash returns to shareholders through dividends
and continued share buybacks, and the purchase of property, plant and
equipment, partially offset by proceeds from the completed divestiture of
phases one and two of the European Lime operations.
CRH ended Q1 2024 with $3.3 billion of cash and cash equivalents on hand (Q1
2023: $4.7 billion) and $3.8 billion of undrawn committed facilities. During
April 2024, the Company completed a one-year extension option on the undrawn
committed facilities extending the maturity date to May 2029. At the end of Q1
2024, CRH had sufficient cash balances to meet all maturing debt obligations
for the next 1.3 years and the weighted average maturity of the remaining term
debt was 7.8 years. As at March 31, 2024, the Company had a $2.0 billion U.S.
Dollar Commercial Paper Program and a €1.5 billion Euro Commercial Paper
Program. In April 2024, the Company increased the size of its existing U.S.
Dollar Commercial Paper Program to $4.0 billion, providing added flexibility
to support the Company's short-term liquidity needs. As at March 31, 2024
there was $1.9 billion of outstanding issued notes on the U.S. Dollar
Commercial Paper Program and $0.9 billion of outstanding issued notes on the
Euro Commercial Paper Program. CRH remains committed to maintaining its robust
balance sheet and expects to maintain a strong investment-grade credit rating
with a BBB+ or equivalent rating with each of the three main rating agencies.
Q1 2024 Conference Call
CRH will host an analysts’ conference call and webcast presentation at 8:00
a.m. (New York)/1:00 p.m. (Dublin) on Friday, May 10, 2024, to discuss the Q1
2024 results and 2024 outlook. Registration details are available on
www.crh.com/investors
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.crh.com%2Finvestors&esheet=53983257&newsitemid=20240509957577&lan=en-US&anchor=www.crh.com%2Finvestors&index=1&md5=b537f08fd8478bcb70e2b1ee158480eb)
. Upon registration a link to join the call and dial-in details will be made
available. The accompanying investor presentation will be available on the
investor section of the CRH website in advance of the conference call, while a
recording of the conference call will be made available afterwards.
Dividend Timetable
The timetable for payment of the quarterly dividend of $0.35 per share is as
follows:
Ex-dividend Date: May 23, 2024
Record Date: May 24, 2024
Payment Date: June 26, 2024
The default payment currency is U.S. Dollar for shareholders who hold their
Ordinary Shares through a Depository Trust Company (DTC) participant. It is
also U.S. Dollar for shareholders holding their Ordinary Shares in registered
form, unless a currency election has been registered with CRH’s Transfer
Agent, Computershare Trust Company N.A. by 5:00 p.m. (New York)/10:00 p.m.
(Dublin) on May 23, 2024.
The default payment currency for shareholders holding their Ordinary Shares in
the form of Depository Interests is euro. Such shareholders can elect to
receive the dividend in U.S. Dollar or Pounds Sterling by providing their
instructions to the Company’s Depositary Interest provider, Computershare
Investor Services plc, by 12:00 p.m. (New York)/5:00 p.m. (Dublin) on May 28,
2024.
Appendices
Appendix 1 - Primary Statements
The following financial statements are an extract of the Company’s
Consolidated Financial Statements prepared in accordance with U.S. GAAP for
the period ended March 31, 2024, and do not present all necessary information
for a complete understanding of the Company's financial condition as of March
31, 2024. The full Consolidated Financial Statements prepared in accordance
with U.S. GAAP for the period ended March 31, 2024, including notes thereto,
will be included as a part of the Company’s Quarterly Report on Form 10-Q
filed with the U.S. Securities and Exchange Commission (SEC).
Condensed Consolidated Statements of Income (Unaudited)
(in $ millions, except share and per share data)
Three months ended
March 31
2024 2023
Product revenues 5,368 5,338
Service revenues 1,165 1,089
Total revenues 6,533 6,427
Cost of product revenues (3,577) (3,744)
Cost of service revenues (1,149) (1,064)
Total cost of revenues (4,726) (4,808)
Gross profit 1,807 1,619
Selling, general and administrative expenses (1,787) (1,622)
Gain on disposal of long-lived assets 8 5
Operating income 28 2
Interest income 43 40
Interest expense (133) (81)
Other nonoperating income, net 161 –
Income (loss) from operations before income tax expense and income from equity 99 (39)
method investments
Income tax benefit 19 14
Loss from equity method investments (4) (6)
Net income (loss) 114 (31)
Net (income) attributable to redeemable noncontrolling interests (2) (2)
Net loss attributable to noncontrolling interests 4 5
Net income (loss) attributable to CRH plc 116 (28)
Earnings (loss) per share attributable to CRH plc
Basic $0.16 ($0.05)
Diluted $0.16 ($0.05)
Weighted average common shares outstanding
Basic 687.8 742.9
Diluted 693.4 742.9
Condensed Consolidated Balance Sheets (Unaudited)
(in $ millions, except share data)
March 31 December 31 March 31
2024 2023 2023
Assets
Current assets:
Cash and cash equivalents 3,308 6,341 4,650
Accounts receivable, net 4,798 4,507 4,706
Inventories 4,619 4,291 4,458
Assets held for sale 236 1,268 –
Other current assets 748 478 416
Total current assets 13,709 16,885 14,230
Property, plant and equipment, net 18,878 17,841 17,997
Equity method investments 609 620 655
Goodwill 10,125 9,158 9,308
Intangible assets, net 1,093 1,041 1,094
Operating lease right-of-use assets, net 1,285 1,292 1,192
Other noncurrent assets 634 632 631
Total assets 46,333 47,469 45,107
Liabilities, redeemable noncontrolling interests and shareholders’ equity
Current liabilities:
Accounts payable 2,730 3,149 2,627
Accrued expenses 2,241 2,296 2,079
Current portion of long-term debt 2,992 1,866 2,251
Operating lease liabilities 255 255 235
Liabilities held for sale 44 375 –
Other current liabilities 1,735 2,072 2,063
Total current liabilities 9,997 10,013 9,255
Long-term debt 9,680 9,776 7,583
Deferred income tax liabilities 2,684 2,738 2,972
Noncurrent operating lease liabilities 1,120 1,125 1,021
Other noncurrent liabilities 2,110 2,196 2,132
Total liabilities 25,591 25,848 22,963
Commitments and contingencies
Redeemable noncontrolling interests 326 333 307
Shareholders’ equity
Preferred stock, €1.27 par value, 150,000 shares authorized and 50,000 1 1 1
shares issued and outstanding for 5% preferred stock and 872,000 shares
authorized, issued and outstanding for 7% 'A' preferred stock, as of March 31,
2024, December 31, 2023, and March 31, 2023
Common stock, €0.32 par value, 1,250,000,000 shares authorized; 729,477,337, 294 296 302
734,519,598 and 752,140,338 issued and outstanding, as of March 31, 2024,
December 31, 2023, and March 31, 2023 respectively
Treasury stock, at cost (41,897,429, 42,419,281 and 11,596,581 shares as of (2,166) (2,199) (487)
March 31, 2024, December 31, 2023 and March 31, 2023 respectively)
Additional paid-in capital 337 454 420
Accumulated other comprehensive loss (797) (616) (673)
Retained earnings 22,346 22,918 21,692
Total shareholders’ equity attributable to CRH plc shareholders 20,015 20,854 21,255
Noncontrolling interests 401 434 582
Total equity 20,416 21,288 21,837
Total liabilities, redeemable noncontrolling interests and equity 46,333 47,469 45,107
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in $ millions)
Three months ended
March 31
2024 2023
Cash Flows from Operating Activities:
Net income (loss) 114 (31)
Adjustments to reconcile net income (loss) to net cash used in operating
activities:
Depreciation, depletion and amortization 397 384
Share-based compensation 30 31
Gains on disposals from businesses and long-lived assets, net (123) (5)
Deferred tax (benefit) expense (36) 49
Loss from equity method investments 4 6
Pension and other postretirement benefits net periodic benefit cost 9 8
Non-cash operating lease costs 75 69
Other items, net (25) (3)
Changes in operating assets and liabilities, net of effects of acquisitions
and divestitures:
Accounts receivable, net (326) (356)
Inventories (270) (217)
Accounts payable (396) (339)
Operating lease liabilities (75) (70)
Other assets (77) (21)
Other liabilities 1 (164)
Pension and other postretirement benefits contributions (14) (12)
Net cash used in operating activities (712) (671)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment (506) (332)
Acquisitions, net of cash acquired (2,206) (155)
Proceeds from divestitures and disposals of long-lived assets 739 6
Dividends received from equity method investments 6 8
Settlements of derivatives (13) (2)
Other investing activities, net (116) (17)
Net cash used in investing activities (2,096) (492)
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in $ millions)
Three months ended
March 31
2024 2023
Cash Flows from Financing Activities:
Proceeds from debt issuances 1,818 71
Payments on debt (651) –
Settlements of derivatives (1) 6
Payments of finance lease obligations (9) (6)
Deferred and contingent acquisition consideration paid (7) (4)
Dividends paid (750) –
Distributions to noncontrolling and redeemable noncontrolling interests (17) (13)
Repurchases of common stock (559) (246)
Proceeds from exercise of stock options – 1
Net cash used in financing activities (176) (191)
Effect of exchange rate changes on cash and cash equivalents (97) 68
Decrease in cash and cash equivalents (3,081) (1,286)
Cash and cash equivalents at the beginning of period 6,390 5,936
Cash and cash equivalents at the end of period 3,309 4,650
Supplemental cash flow information:
Cash paid for interest (including finance leases) 45 54
Cash paid for income taxes 159 104
Reconciliation of cash and cash equivalents
Cash and cash equivalents presented in the Condensed Consolidated Balance 3,308 4,650
Sheets
Cash and cash equivalents included in assets held for sale 1 –
Total cash and cash equivalents presented in the Condensed Consolidated 3,309 4,650
Statements of Cash Flows
Appendix 2 - Non-GAAP Reconciliation and Supplementary Information
CRH uses a number of non-GAAP performance measures to monitor financial
performance. These measures are referred to throughout the discussion of our
reported financial position and operating performance on a continuing
operations basis unless otherwise defined and are measures which are regularly
reviewed by CRH management. These performance measures may not be uniformly
defined by all companies and accordingly may not be directly comparable with
similarly titled measures and disclosures by other companies.
Certain information presented is derived from amounts calculated in accordance
with U.S. GAAP but is not itself an expressly permitted GAAP measure. The
non-GAAP performance measures as summarized below should not be viewed in
isolation or as an alternative to the equivalent GAAP measure.
Adjusted EBITDA: Adjusted EBITDA is defined as earnings from continuing
operations before interest, taxes, depreciation, depletion, amortization, loss
on impairments, gain/loss on divestitures and unrealized gain/loss on
investments, income/loss from equity method investments, substantial
acquisition-related costs and pension expense/income excluding current service
cost component. It is quoted by management in conjunction with other GAAP and
non-GAAP financial measures to aid investors in their analysis of the
performance of the Company. Adjusted EBITDA by segment is monitored by
management in order to allocate resources between segments and to assess
performance. Adjusted EBITDA margin is calculated by expressing Adjusted
EBITDA as a percentage of total revenues.
Reconciliation to its nearest GAAP measure is presented below:
Three months ended
March 31
in $ millions 2024 2023
Net income (loss) 114 (31)
Loss from equity method investments 4 6
Income tax benefit (19) (14)
Gain on divestitures and unrealized gains on investments (i) (160) –
Pension income excluding current service cost component (i) (1) –
Interest expense 133 81
Interest income (43) (40)
Depreciation, depletion and amortization 397 384
Substantial acquisition-related costs (ii) 20 –
Adjusted EBITDA 445 386
Total revenues 6,533 6,427
Net income (loss) margin 1.7% (0.5)%
Adjusted EBITDA margin 6.8% 6.0%
((i) Gain on divestitures and unrealized gains on investments and pension
income excluding current service cost component have been included in Other
nonoperating income, net in the Condensed Consolidated Statements of Income.)
((ii) Represents expenses associated with non-routine substantial
acquisitions, which are not bolt-on in nature and are separately reported in
Note 4 “Acquisitions” of the unaudited financial statements in the
Quarterly Report on Form 10-Q. Expenses in the first quarter of 2024 include
legal and consulting expenses related to the acquisition of the portfolio of
cement and readymixed concrete assets and operations in Texas.)
Adjusted EBITDA is not defined by GAAP and should not be considered as an
alternative to earnings measures defined by GAAP. Reconciliation to its
nearest GAAP measure for the mid-point of the 2024 Adjusted EBITDA guidance is
presented below:
in $ billions 2024
Mid-Point
Net income 3.7
Income tax expense 1.1
Interest expense, net 0.4
Depreciation, depletion, amortization and impairment 1.7
Other (i) (0.2)
Adjusted EBITDA 6.7
((i) Other primarily relates to loss (income) from equity method investments
and loss (gain) on divestitures and unrealized loss (gain) on investments.)
Net Debt: Net Debt is used by management as it gives additional insight into
the Company’s current debt position less available cash. Net Debt is
provided to enable investors to see the economic effect of gross debt, related
hedges and cash and cash equivalents in total. Net Debt comprises short and
long-term debt, finance lease liabilities, cash and cash equivalents and
current and noncurrent derivative financial instruments (net).
Reconciliation to its nearest GAAP measure is presented below:
March 31 December 31 March 31
in $ millions 2024 2023 2023
Short and long-term debt (12,672) (11,642) (9,834)
Cash and cash equivalents (i) 3,309 6,390 4,650
Finance lease liabilities (145) (117) (85)
Derivative financial instruments (net) (92) (37) (32)
Net Debt (9,600) (5,406) (5,301)
((i) Cash and cash equivalents at March 31, 2024, includes $1 million cash and
cash equivalents reclassified as held for sale. Cash and cash equivalents at
December 31, 2023, includes $49 million cash and cash equivalents reclassified
as held for sale.)
Organic Revenue and Organic Adjusted EBITDA: Because of the impact of
acquisitions, divestitures, currency exchange translation and other
non-recurring items on reported results each reporting period, CRH uses
organic revenue and organic Adjusted EBITDA as additional performance
indicators to assess performance of pre-existing (also referred to as
underlying, heritage, like-for-like or ongoing) operations each reporting
period.
Organic revenue and organic Adjusted EBITDA are arrived at by excluding the
incremental revenue and Adjusted EBITDA contributions from current and prior
year acquisitions and divestitures, the impact of exchange translation, and
the impact of any one-off items. Changes in organic revenue and organic
Adjusted EBITDA are presented as additional measures of revenue and Adjusted
EBITDA to provide a greater understanding of the performance of the Company.
Organic change % is calculated by expressing the organic movement as a
percentage of the prior year reporting period (adjusted for currency exchange
effects). A reconciliation of the changes in organic revenue and organic
Adjusted EBITDA to the changes in total revenues and Adjusted EBITDA by
segment, is presented with the discussion within each segment’s performance
in tables contained in the segment discussion commencing on page 4.
Earnings Per Share (EPS): The calculation of basic earnings per share is as
follows:
Three months ended
March 31
2024 2023
Numerator
Net income (loss) 114 (31)
Net (income) attributable to redeemable noncontrolling interests (2) (2)
Net loss attributable to noncontrolling interests 4 5
Adjustment of redeemable noncontrolling interests to redemption value (4) (10)
Net income (loss) attributable to CRH plc for EPS - basic 112 (38)
Denominator
Weighted average common shares outstanding – basic (i) 687.8 742.9
Earnings (loss) per share attributable to CRH plc
Basic $0.16 $(0.05)
((i) The weighted average number of common shares included in the computation
of basic earnings per share has been adjusted to exclude shares repurchased
and held by the Company as Treasury Stock given that these shares do not rank
for dividend.)
Appendix 3 - Disclaimer/Forward-Looking Statements
In order to utilize the “Safe Harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995, CRH is providing the
following cautionary statement.
This document contains statements that are, or may be deemed to be,
forward-looking statements with respect to the financial condition, results of
operations, business, viability and future performance of CRH and certain of
the plans and objectives of CRH. These forward-looking statements may
generally, but not always, be identified by the use of words such as
“will”, “anticipates”, “should”, “could”, “would”,
“targets”, “aims”, “may”, “continues”, “expects”, “is
expected to”, “estimates”, “believes”, “intends” or similar
expressions. These forward-looking statements include all matters that are not
historical facts or matters of fact at the date of this document.
In particular, the following, among other statements, are all forward looking
in nature: plans and expectations regarding customer demand; pricing, costs,
trends in residential and non-residential markets; macroeconomic and other
market trends in regions where CRH operates, and investments in innovation and
sustainability; plans and expectations regarding acquisitions, including the
proposed acquisition of a majority stake in Adbri, and resulting synergies and
growth opportunities; plans and expectations regarding return of cash to
shareholders, including the timing and amount of share buybacks and dividends;
and plans and expectations regarding CRH’s 2024 full year performance,
including net income, Adjusted EBITDA, earnings per share and capital
expenditure.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to events and depend on circumstances that may or may not
occur in the future and reflect the Company’s current expectations and
assumptions as to such future events and circumstances that may not prove
accurate. You are cautioned not to place undue reliance on any forward-looking
statements. These forward-looking statements are made as of the date of this
document. The Company expressly disclaims any obligation or undertaking to
publicly update or revise these forward-looking statements other than as
required by applicable law.
A number of material factors could cause actual results and developments to
differ materially from those expressed or implied by these forward-looking
statements, certain of which are beyond our control, and which include, among
other factors: economic and financial conditions, including changes in
interest rates, inflation, price volatility and/or labor and materials
shortages; demand for infrastructure, residential and non-residential
construction and our products in geographic markets in which we operate;
increased competition and its impact on prices and market position; increases
in energy, labor and/or other raw materials costs; adverse changes to laws and
regulations, including in relation to climate change; the impact of
unfavorable weather; investor and/or consumer sentiment regarding the
importance of sustainable practices and products; availability of public
sector funding for infrastructure programs; political uncertainty, including
as a result of political and social conditions in the jurisdictions CRH
operates in, or adverse political developments, including the ongoing
geopolitical conflicts in Ukraine and the Middle East; failure to complete or
successfully integrate acquisitions or make timely divestments; cyber-attacks
and exposure of associates, contractors, customers, suppliers and other
individuals to health and safety risks, including due to product failures.
Additional factors, risks and uncertainties that could cause actual outcomes
and results to be materially different from those expressed by the
forward-looking statements in this report include the risks and uncertainties
described under “Risk Factors” in Part 1, Item 1A of the Annual Report on
Form 10-K “Risk Factors” in CRH’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2023 as filed with the SEC and in CRH's other
filings with the SEC.
Contact CRH at +353 1 404 1000
Albert Manifold, Chief Executive
Jim Mintern, Chief Financial Officer
Frank Heisterkamp, Director of Capital Markets & ESG
Tom Holmes, Head of Investor Relations
View source version on businesswire.com:
https://www.businesswire.com/news/home/20240509957577/en/
(https://www.businesswire.com/news/home/20240509957577/en/)
CRH plc
Copyright Business Wire 2024