LIQUIDITY AND CAPITAL RESOURCES
“Cash provided by operating activities for the nine months ended September 30, 2012, was $122.0 million. Excluding the impact of business development expenses, cash provided by operating activities for the nine months ended September 30, 2012, was $160.0 million compared with $179.9 million for the same period in 2011. During the nine months ended September 30, 2012, we invested $105.9 million of capital into our business, including $32 million related to the new kiln. Days sales outstanding was 45 days, comparable with 2011.
“At September 30, 2012, our ratio of consolidated debt to consolidated EBITDA, as defined, for the trailing twelve months was 3.58 times. At September 30, 2012, the maximum ratio is 3.75 times per our covenant, which we recently amended to provide incremental liquidity cushion. The amendment maintains the maximum ratio at 3.75 times through June 30, 2013, before returning to a maximum of 3.50 times on September 30, 2013.
FULL-YEAR 2012 AND PRELIMINARY 2013 OUTLOOK“As discussed, we are encouraged by various positive trends in our markets. For full year 2012, we anticipate high-single-digit volume growth in our nonresidential end-use market, driven primarily by increased energy shipments; some energy-sector activity will continue to be affected by natural gas prices, the timing of lease commitments for oil and natural gas companies, geographic transitions and weather conditions. We expect the rate of improvement in our residential end-use market to accelerate over the rate of improvement in 2011. Our infrastructure end-use market volume is expected to be down slightly, and ChemRock/Rail shipments are expected to be down in the high-single digits. “As such, we anticipate that heritage aggregates product line shipments for the full year will increase 1% to 2%, and pricing will increase 2% to 4%. A variety of factors beyond our direct control may continue to exert pressure on our volumes and our forecasted pricing increase is not expected to be uniform across the company. Heritage aggregates product line direct production costs per ton are expected to be up slightly compared with 2011.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts