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10-Q Business segment data
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Business Segment Data Business Segment Data
The Company’s reportable segments are those that are based on the Company’s method of internal reporting and management of the business. The Company focuses on the vertical integration of its products and services by offering customers a single-source for construction materials and related contracting services. The Company operates in 14 states across the United States. Its operating segments include: Pacific, Northwest, Mountain, North Central, South and Energy Services. The operating segments are organized by geographic region in the United States due to the cyclical nature of the construction work performed. The Company’s reportable segments are Pacific, Northwest, Mountain and North Central. The South and Energy Services operating segments do not meet the criteria to be reportable segments and, as such, are combined with its corporate services in All Other. Each segment is led by a segment manager that reports to the Company’s president who is also the Company’s chief operating decision maker. The Company’s chief operating decision maker evaluates the performance of the segments and allocates resources to them based on earnings before interest, taxes, depreciation, depletion and amortization.
All of the reportable segments mine, process, and sell construction aggregates (crushed stone and sand and gravel); produce and sell asphalt; and produce and sell ready-mix concrete as well as vertically integrating its contracting services to support the aggregate based product lines including heavy-civil construction, asphalt and concrete paving, and site development and grading. Although not common to all locations, Other includes the sale of cement, production and distribution of modified liquid asphalt, merchandise and other building materials and related services.
The information below follows the same accounting policies as described in Note 3. Information on the Company’s segments as of December 31, and for the years then ended was as follows:
202220212020
(In thousands)
External operating revenues:
Pacific$468,589 $427,229 $454,318 
Northwest598,774 474,941 413,723 
Mountain541,910 479,543 450,852 
North Central607,311 561,661 567,473 
All Other318,145 285,556 291,636 
Total external operating revenues$2,534,729 $2,228,930 $2,178,002 
Intersegment operating revenues:
Pacific$— $55 $148 
Northwest1,444 3,102 2,414 
Mountain120 26 18 
North Central747 122 3,358 
All Other34,894 31,827 34,236 
Total intersegment operating revenues$37,205 $35,132 $40,174 
EBITDA:
Pacific$55,839 $67,124 $79,136 
Northwest103,885 80,624 74,360 
Mountain72,604 65,017 52,407 
North Central64,988 72,301 71,723 
All Other9,424 8,340 27,333 
Total segment EBITDA$306,740 $293,406 $304,959 
Capital expenditures:
Pacific$33,046 $26,675 $22,108 
Northwest60,697 278,946 45,963 
Mountain35,098 47,648 59,156 
North Central33,151 28,838 17,307 
All Other19,855 35,417 47,101 
Total capital expenditures*
$181,847 $417,524 $191,635 
Assets:
Pacific$441,606 $414,103 $403,023 
Northwest772,159 714,098 452,126 
Mountain293,121 278,608 248,216 
North Central420,877 414,619 408,571 
All Other366,556 360,396 311,571 
Total assets$2,294,319 $2,181,824 $1,823,507 
Property, plant and equipment:
Pacific$533,985 $505,103 $486,401 
Northwest813,513 759,482 553,632 
Mountain400,907 369,732 328,037 
North Central441,731 419,075 396,427 
All Other299,272 294,305 263,978 
Less accumulated depreciation and depletion1,174,195 1,097,387 1,038,730 
Net property, plant and equipment$1,315,213 $1,250,310 $989,745 
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*Capital expenditures for 2022, 2021 and 2020 include noncash transactions for capital expenditure-related accounts payable, the issuance of equity securities in connection with an acquisition and accrual of a holdback payment in connection with an acquisition totaling $(5,430) thousand, $(8,077) thousand and $916,000, respectively.
A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows:
202220212020
(In thousands)
Total reportable segment operating revenues$2,218,896 $1,946,679 $1,892,304 
Other revenue353,038 317,383 325,872 
Elimination of intersegment operating revenues(37,205)(35,132)(40,174)
Total consolidated operating revenues$2,534,729 $2,228,930 $2,178,002 
A reconciliation of reportable segment assets to consolidated assets is as follows:
202220212020
(In thousands)
Total assets for reportable segments$1,927,763 $1,821,428 $1,511,936 
Other assets3,731,031 3,529,536 2,854,648 
Elimination of intercompany receivables(3,364,475)(3,169,140)(2,543,077)
Total consolidated assets$2,294,319 $2,181,824 $1,823,507 
A reconciliation of segment EBITDA to consolidated income before income taxes is as follows:
202220212020
(In thousands)
Total EBITDA for reportable segments$297,316 $285,066 $277,626 
Other EBITDA9,424 8,340 27,333 
Depreciation, depletion and amortization117,798 100,974 89,626 
Interest30,121 19,218 20,577 
Total consolidated income before income taxes$158,821 $173,214 $194,756 
Business segment dataThe Company focuses on the vertical integration of its products and services by offering customers a single-source for construction materials and related contracting services. The Company operates in 14 states across the United States. Its operating segments include: Pacific, Northwest, Mountain, North Central, South and Energy Services. The operating segments are organized by geographic region in the United States due to the cyclical nature of the construction work performed. The Company’s reportable segments are those that are based on the Company’s method of internal reporting and management of the business and are Pacific, Northwest, Mountain and North Central. The South and Energy Services operating segments do not meet the criteria to be reportable segments and, as such, are combined with its corporate services in All Other. Each segment is led by a segment president that
reports to the Company’s chief executive officer who is also the Company’s chief operating decision maker. The Company’s chief operating decision maker evaluates the performance of the segments and allocates resources to them based on EBITDA.
All of the reportable segments mine, process and sell construction aggregates (crushed stone and sand and gravel); produce and sell asphalt; and produce and sell ready-mix concrete, as well as in some segments the sale of merchandise and other building materials and related services, as well as vertically integrating their contracting services to support the aggregate-based product lines including heavy-civil construction, asphalt and concrete paving, and site development and grading, and in some segments the manufacturing of prestressed concrete products. The Pacific segment and All Other also produce and sell liquid asphalt products and the Pacific segment sells cement. Although not common to all locations, within All Other is the sale of merchandise and other building materials and related services.
The information below follows the same accounting policies as described in the audited financial statements and notes included in the Company's Registration Statement on Form 10. Information on the Company's segments was as follows:
Three Months EndedSix Months Ended
June 30,June 30,
2023202220232022
(In thousands)
External operating revenues:
Pacific$142,155 $128,412 $209,941 $213,761 
Northwest178,734 150,785 294,618 255,575 
Mountain175,754 170,419 236,372 228,888 
North Central187,602 167,238 208,576 190,062 
All Other100,944 94,959 143,582 133,492 
Total external operating revenues$785,189 $711,813 $1,093,089 $1,021,778 
Intersegment operating revenues:
Pacific$26,483 $30,053 $37,779 $46,201 
Northwest35,322 27,963 48,290 42,106 
Mountain34,796 37,504 40,710 41,566 
North Central54,044 50,330 55,766 51,641 
All Other17,018 23,382 24,703 33,752 
Total intersegment operating revenues$167,663 $169,232 $207,248 $215,266 
EBITDA:
Pacific$22,041 $15,198 $18,928 $20,631 
Northwest40,706 23,196 53,844 35,976 
Mountain32,561 28,643 26,014 20,601 
North Central24,461 16,108 894 (8,160)
All Other5,346 4,173 11,328 78 
Total segment EBITDA$125,115 $87,318 $111,008 $69,126 
A reconciliation of reportable segment operating revenues to consolidated operating revenues is as follows:
Three Months EndedSix Months Ended
June 30,June 30,
2023202220232022
(In thousands)
Total reportable segment operating revenues$834,890 $762,704 $1,132,052 $1,069,800 
Other operating revenues117,962 118,341 168,285 167,244 
Elimination of intersegment operating revenues(167,663)(169,232)(207,248)(215,266)
Total consolidated operating revenues$785,189 $711,813 $1,093,089 $1,021,778 
A reconciliation of reportable segment EBITDA to consolidated income (loss) before income taxes is as follows:
Three Months EndedSix Months Ended
June 30,June 30,
2023202220232022
(In thousands)
Total EBITDA for reportable segments$119,769 $83,145 $99,680 $69,048 
Other EBITDA5,346 4,173 11,328 78 
Depreciation, depletion and amortization31,130 29,752 60,760 58,101 
Interest expense, net*
17,130 7,424 26,625 12,690 
Total consolidated income (loss) before income taxes$76,855 $50,142 $23,623 $(1,665)
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*Interest, net is interest expense net of interest income.