Revenue during the quarter went down marginally by 2.92 percent to $1,008.14 million from $1,038.46 million in the previous year period. Gross margin for the quarter expanded 213 basis points over the previous year period to 30.18 percent. Total expenses were 77.48 percent of quarterly revenues, down from 79.57 percent for the same period last year. This has led to an improvement of 209 basis points in operating margin to 22.52 percent.

However, the adjusted EBITDA for the quarter stood at $300.97 million compared with $283.66 million in the prior year period. At the same time, adjusted EBITDA margin improved 254 basis points in the quarter to 29.85 percent from 27.32 percent in the last year period.

Tom Hill, chairman and chief executive officer, said, "Core profitability in our business continues to strengthen, despite recent volume headwinds in certain markets. So far this year, weather patterns and the timing of large project activity have led to higher month-to-month and state-to-state variability in our shipments, somewhat masking the continuing recovery in demand for construction materials across our footprint. However, our unit margins continue to improve. Per-ton gross profit in our Aggregates segment grew by 9 percent in the third quarter despite lower shipments and uneven production schedules. Year-to-date per-ton gross profit has improved by 22 percent. As a result, we remain on track to reach the low end of our 2016 profit plan despite shipments well below beginning-of-year expectations. Consistent with communications during our late September investor event in Atlanta, we expect full year 2016 Adjusted EBITDA of $1 billion, a 20 percent increase over the prior year. Longer-term project pipelines are healthy, and the foundations for sustained, multi-year volume and pricing growth remain in place."

The company has spent $279.55 million cash to meet investing activities during the nine month period as against cash outgo of $231.45 million in the last year period. It has incurred net capital expenditure of $281.58 million on net basis during the nine month period, up 33.86 percent or $71.22 million from year ago period.

The company has spent $214.60 million cash to carry out financing activities during the nine month period as against cash outgo of $22.48 million in the last year period.

Cash and cash equivalents stood at $135.36 million as on Sep. 30, 2016, down 19.75 percent or $33.32 million from $168.68 million on Sep. 30, 2015.

Working capital decreases marginally
Vulcan Materials Company has witnessed a decline in the working capital over the last year. It stood at $715.85 million as at Sep. 30, 2016, down 2.15 percent or $15.77 million from $731.61 million on Sep. 30, 2015. Current ratio was at 2.98 as on Sep. 30, 2016, up from 2.78 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 58 days for the quarter from 75 days for the last year period. Days sales outstanding were almost stable at 47 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 22 days for the quarter compared with 41 days for the previous year period. At the same time, days payable outstanding went down to 11 days for the quarter from 12 for the same period last year.