U.S. Concrete Inc. reported results for the quarter ended March 31, 2020. The company’s first-quarter 2020 results compared to first-quarter 2019 include:
- Consolidated revenue increased 0.4% to $334.4 million.
- Ready-mixed concrete revenue increased 0.6% to $292.2 million.
- Aggregate products revenue increased 1.6% to $43.6 million.
- Aggregate products sales volume increased 5.4% to 2.6 million tons.
- Net loss was $2.8 million compared to $2.6 million.
Aggregate products revenue increased $0.7 million in the quarter, compared to the prior-year first quarter, resulting from a 5.4% increase in sales volume and a 0.9% increase in average selling price related to the mix of products sold.
Aggregate products Adjusted EBITDA of $11.3 million in the 2020 first quarter increased 8.7% from the prior-year first quarter, primarily related to improved operating efficiencies, including the impact of the Coram Materials acquisition partially offset by inclement weather in Texas.
Ronnie Pruitt, president and chief executive officer of U.S. Concrete Inc. said, “We are very pleased with our financial results for the first quarter, which we accomplished in spite of significant rainfall in Texas and the initial impacts of COVID-19. Since early March, we have been focused non-stop on increased efforts to evaluate all areas of our business, both financially and operationally, to further drive process improvements and maximize financial flexibility. Our operations have been generally deemed to be essential, and we remain operational in each of our regions.”
Pruitt continued, “Our Coram Materials acquisition in February enhanced our vertical integrated position in the New York market. While our production volumes at Coram have decreased due to the COVID-19 related slowdown in New York City, we are starting to experience improved production volumes in recent days. We are pleased with the business and our ability to integrate their operations, which generated $1.7 million of Adjusted EBITDA during the quarter post-acquisition.
Pruitt concluded, “Due to the uncertainty surrounding the underlying impact of the operating restrictions resulting from the COVID-19 pandemic, we have elected to withdraw our previously communicated 2020 financial guidance. Even though certain of our projects in New York and San Francisco have been delayed due to the definition of ‘essential construction work’ in those local markets, the majority of our markets continue to see solid demand. We have taken swift action throughout the business to realign our cost structure with our operating volumes and will continue to reassess our costs in light of evolving market conditions. We believe we are well positioned to weather this storm and capitalize on the opportunities that will present themselves as the economy rebounds.”