U.S. Concrete Inc. reported adjusted EBITDA of $22.2 million in the second quarter of 2014, compared to $16.7 million in the second quarter of 2013. Adjusted EBITDA margin, which is adjusted EBITDA as a percentage of revenue, was 12.3 percent for the second quarter of 2014, compared to 10.6 percent in the second quarter of 2013. Net income was $7.9 million, or $0.57 per diluted share, for the second quarter of 2014, compared to net income of $6.7 million, or $0.50 per diluted share, in the second quarter of 2013.
William J. Sandbrook, president and chief executive officer of U.S. Concrete, stated “We are very pleased with our second quarter results, while we remain confident that we have further opportunities to improve performance going forward. Although the weather in our Dallas/Ft. Worth region was the wettest since 2009, our continued focus drove strong improvements in volume, pricing and profitability in both of our business segments. Our construction markets remain robust, our acquisition pipeline is steadily growing and our healthy cash position gives us optimism for continued strong performance in the second half of the year.”
Consolidated revenue increased 14.6 percent to $180.4 million, compared to $157.4 million in the prior year. Revenue from the ready-mixed concrete segment increased $20.9 million, or 14.6 percent, driven by both volume and pricing.
The company’s ready-mixed concrete sales volume was 1.5 million cu. yd., up 6.9 percent over prior year. Ready-mixed concrete average sales price per cu. yd. increased $7.56, or 7.4 percent, to $110.27 compared to $102.71 in the prior year.
Aggregate products segment revenue increased $3.0 million, or 29.5 percent, to $13.1 million on increased sales volume of 199,000 tons, an improvement of 20.9 percent over prior year.
Consolidated gross profit increased $5.7 million with an 80 basis point expansion in margin year-over-year. Consolidated adjusted EBITDA of $22.2 million, increased $5.4 million with a 170 basis point expansion in margin year-over-year. Ready-mixed concrete adjusted EBITDA of $23.3 million, increased 29.0 percent with a 160 basis point expansion in margin and an 80 basis point improvement in raw material spread year-over-year. Aggregate products adjusted EBITDA of $3.3 million, increased 53.5 percent with a 390 basis point expansion in margin year-over-year.