U.S. Concrete Inc. reported results for the quarter ended Sept. 30. Consolidated revenue was $374.2 million. Net income was $24.1 million.
Aggregate products revenue increased $10.7 million in the third quarter of 2020 to an all-time high of $63.6 million, resulting from a 17.6% increase in sales volume and a 12.7% increase in average selling price related to the favorable mix of products sold compared to the third quarter of 2019.
Aggregate products Adjusted EBITDA of $26.8 million in the third quarter of 2020 increased 64.4% from the third quarter of 2019, primarily related to improved operating efficiencies, increased production volume at the company’s Texas aggregates operations, and the profitability from the Coram Materials business acquired earlier this year.
Aggregate products average selling price per ton, $13.37, and volumes sold, 3.7 million, were both all-time quarterly highs.
Revenue from the ready-mixed concrete segment for the third quarter of 2020 decreased $40.8 million, or 11.5%,compared to the prior year third quarter, as the business continued to be impacted by regional effects of the pandemic, including certain construction project delays and cement supply shortages.
Partially offsetting the impact of the volume decline on revenue, overall ASP increased due to changes in the product and geographical mix of revenue compared to the third quarter of 2019. Despite the volume decline, business contingency actions, including labor management, concrete mix optimization, higher asset utilization and delivery efficiencies, which included lower fuel expenses, reduced the impact to Adjusted EBITDA in the third quarter of 2020.
Ronnie Pruitt, president and chief executive officer of U.S. Concrete Inc. stated, “We believe our business is well positioned to continue to deliver strong results, both in the short and long term. We are very proud to announce record results for the quarter, and record six-month results when combining the second and third quarters of 2020, all in the context of lower revenues amid the pandemic. The transformation we have undertaken over the past several years to reshape our portfolio and capabilities for growth and better margins has proven critical in enabling us to respond to the changing dynamics in the current environment. Our diversified portfolio of operating assets, commitment to innovate, and agile culture have allowed us to respond to the construction demand in the markets that we serve and positions us to deliver meaningful financial results into the future.”