U.S. Concrete Inc. reported results for the quarter ended June 30, 2017. In the second quarter of 2017, the company reported a net loss of $2.3 million compared to a net loss of $3.5 million in the second quarter of 2016.
Results for the second quarter of 2017 include $2.4 million in acquisition-related costs compared to $0.4 million in the second quarter of 2016 as the company has begun to significantly elevate the scale of its acquisition target profile resulting in increased diligence costs.
Consolidated revenue increased 23.6 percent to $340.9 million, compared to $275.8 million in the prior year second quarter. Revenue from the ready-mixed concrete segment increased $61.6 million, or 24.8 percent, compared to the prior year second quarter, driven by volume and pricing. The company’s ready-mixed concrete sales volume was 2.3 million cu. yd., up 19.7 percent compared to the prior year second quarter.
Aggregate products sales volume was 1.5 million tons, up 8.3 percent compared to the prior year second quarter. Aggregate products average sales price improved 7.5 percent to $12.86 per ton in the 2017 second quarter compared to the prior year second quarter.
William J. Sandbrook, president and chief executive officer of U.S. Concrete, stated, “Our strong second quarter results demonstrate that we continue to successfully build upon our leadership positions in the major metropolitan markets in which we operate and capitalize on positive demand trends. We drove these superior results with our development of market leading positions in high growth urban areas with difficult operating environments and lack of reliance on external stimulus or local government funding. Our market strategy continues to prove successful and allowed us to achieve our 26th straight quarter of year-over-year revenue growth and 25th straight quarter of ready-mixed concrete pricing growth.”
Sandbrook continued, “We are very optimistic for the balance of the year because we produced these results despite weather-related challenges in some of our major markets, including the Dallas/Fort Worth metroplex, which recorded the fifth wettest June on record and the wettest June in the past decade. Underlying market demand remains strong with the Architectural Billing Index at its highest point in three years and recently announced gross domestic product growth in the United States of 2.6 percent driven by solid growth in personal spending, nonresidential investment and federal government spending. These underlying positive trends continue to support the growth in our backlog and drive increased bidding activity in our markets. We have good visibility into the next 12 to 18 months and expect the current growth in our volume and pricing and margin expansion to continue.”
Sandbrook concluded, “We remain active in the acquisition market with a very robust pipeline, which continues to improve in number and profile, and expect to continue to supplement our organic growth with strategic expansion within our existing markets and potential further vertical integration. Our acquisition pipeline continues to provide opportunities for selective, accretive growth in both our ready-mixed concrete and aggregate products platforms, and we are very focused on the potential to enter into new major metropolitan areas.”