CRH plc (NYSE:CRH) (LSE:CRH):
Key Highlights
Summary Financials
Q1 2024
Change
Total revenues
$6.5bn
+2%
Net income
$114m
n/m1
Net income margin
1.7%
+220bps
Adjusted EBITDA*
$445m
+15%
Adjusted EBITDA margin*
6.8%
+80bps
EPS
$0.16
n/m1
- 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/m1
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. 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 method
investments
99
(39)
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 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
1
1
1
Common stock, €0.32 par value,
1,250,000,000 shares authorized; 729,477,337, 734,519,598 and
752,140,338 issued and outstanding, as of March 31, 2024, December
31, 2023, and March 31, 2023 respectively
294
296
302
Treasury stock, at cost (41,897,429,
42,419,281 and 11,596,581 shares as of March 31, 2024, December 31,
2023 and March 31, 2023 respectively)
(2,166)
(2,199)
(487)
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 Sheets
3,308
4,650
Cash and cash equivalents included in
assets held for sale
1
–
Total cash and cash equivalents
presented in the Condensed Consolidated Statements of Cash
Flows
3,309
4,650
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509417404/en/
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
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