So, I've taken all of the numbers from the Vulcan exhibit and then I
have computed growth rates, here are your growth rates for each of the line items.
So net sales, gross profit, net income, total assets,
total liabilities, total share homes equity.
And the, the results are really influenced by a couple big trends.
Vulcan made large acquisitions in 1999 and 2007.
So we can see that here by a 56.3% growth in sales,
99 versus 98, which I, I calculated but didn't show here.
So big increase in assets and liabilities over the prior year.
And then for 2007, you can not see the sales impact, but here you can definitely
see the total assets and total liabilities go up dramatically with the acquisition.
So, so why don't we see the same sales boost for the acquisition?
Well, the subprime crisis started in 2006,
and what that did in the US is it brought to a halt
residential housing starts, it hurt the non-residential housing construction and
eventually highways and we went into a big recession.
So if you look at their growth patterns and revenues over time.
What you see is starting in 04 but
then 05, 06, there were big increases in revenue.
And a lot of that was driven by the boom fueled by the subprime market.
So there were all these easily available loans, housing starts were way up, and
then what happened is that crashed right here.
So, in 2007 when Florida Rock gets added, we have the core business going down,
which is sort of overcoming the increase in sales from Florida Rock.
Now you can see in 2008, we really get the, the sales boost from Florida Rock,
which probably means the acquisition happened later in the year.
But then [LAUGH] the sales growth was down substantially as
we hit the recession after the financial crisis.
And look in 2009 even after making this huge acquisition,