U.S. Concrete Inc. announced a strategic acquisition as well as results for the full year and quarter ended Dec. 31, 2019.
William J. Sandbrook, chairman and chief executive officer of U.S. Concrete Inc., stated, “Today we are excited to announce the completion of our most recent aggregates acquisition, Coram Materials Corp., for a purchase price of $142 million, which significantly expands our East Coast aggregates portfolio. The acquisition should produce a margin profile in excess of the Company’s average within the first full year of ownership. Post synergies, which we expect to achieve within two years, the deal represents a multiple of approximately 7 times EBITDA. This acquisition possesses significant, premium sand reserves that will provide us with self-sufficiency in meeting our sand supply needs to our ready-mixed concrete operations in New York City as well as providing external sales to third-party customers. Coram’s 50 million tons of reserves, located in the quickly depleting Long Island sand market, increases the vertical integration of our New York operations, strengthens our competitive position and advances the continuation of our strategy of expanding into higher margin aggregates businesses. Following our successful Polaris acquisition, we continue to seek out accretive opportunities of coupling the pull through capabilities of our large regional footprints of ready-mixed concrete operations with attractive aggregate assets.”
Sandbrook concluded, “Alongside the acquisition, we continue to focus on previously discussed operational, technology and financial improvement initiatives. Through re-engineering certain of our processes and technology investments, we expect to generate enhanced margins. Our record high adjusted EBITDA in the second half of 2019 highlights the traction that our profit improvement initiatives are gaining within our operations. While our fourth quarter of 2019 results were negatively impacted by a significant increase in our self-insurance reserves, claim costs and premiums year-over-year, we experienced good growth in our aggregate products segment and are seeing positive momentum in ready-mixed concrete pricing to further enhance profitability.”
Aggregate products revenue increased $12.6 million, or 6.9%, for the full-year 2019 compared to the prior year. In 2019, aggregate products segment Adjusted EBITDA increased by $12.2 million to $53.8 million compared to the prior year.
During the fourth quarter, aggregate products sales volume increased 7.1% compared to the prior year fourth quarter. Aggregate products Adjusted EBITDA of $14.9 million in the 2019 fourth quarter increased $2.4 million compared to the prior year fourth quarter. The growth in its aggregate products segment was primarily the result of increased demand from its existing operations along with less down-time at quarries.
Consolidated revenue for 2019 decreased 1.8% to $1,478.7 million, versus $1,506.4 million in 2018. For 2019, net income attributable to U.S. Concrete was $14.9 million compared to $30.0 million for 2018. For 2019, net income was $16.3 million compared to $31.3 million for 2018. For 2019, total Adjusted EBITDA of $184.1 million was $9.4 million less than the $193.5 million in 2018.