U.S. Concrete Inc. reported results for the full year and quarter ended Dec. 31, 2018. For 2018, the company is reporting:
- Consolidated revenue increased 12.8 percent to $1.5 billion.
- Ready-mixed concrete revenue increased 7.7 percent to $1.3 billion.
- Aggregate products revenue increased 101.3 percent to $182.6 million.
- Aggregate products volume increased 79.3 percent to 11.1million tons.
- Polaris Materials contributed revenue of $92.0 million and volume of 5.0 million tons.
- Income from continuing operations was $31.3million, an increase of $5.1 million.
- Total Adjusted EBITDA increased 0.7 percent to $193.5 million.
- Net cash provided by operating activities increased $28.0 million to $122.8 million.
- Adjusted Free Cash Flow increased $47.8 million to $103.4 million.
For the fourth quarter of 2018, versus fourth quarter of 2017, the company is reporting:
- Consolidated revenue increased 8.4 percent to $370.1 million.
- Ready-mixed concrete revenue increased 5.6 percent to $321.0 million.
- Ready-mixed concrete volume grew by 2.6 percent.
- Aggregate products revenue increased 59.5 percent to $46.4 million.
- Aggregate products volume increased 41.0 percent to 2.7 million tons.
- Polaris Materials contributed revenue of $24.3 million and volume of 1.3 million tons.
- Income from continuing operations was $3.1 million, an increase of $6.0 million.
- Total Adjusted EBITDA increased 6.0 percent to $46.2 million.
- Net cash provided by operating activities increased $22.0 million to $32.6 million.
- Adjusted Free Cash Flow increased $24.4 million to $27.5 million.
Aggregate products revenue increased $91.9 million, or 101.3 percent, for 2018 compared to the prior year. In 2018, aggregate products segment Adjusted EBITDA increased by $14.4 million to $41.6 million compared to the prior year.
During the fourth quarter, aggregate products sales volume increased 41.0 percent compared to the prior-year fourth quarter. Aggregate products Adjusted EBITDA of $12.5 million in the 2018 fourth quarter increased $4.2 million compared to the prior-year fourth quarter.
The growth in its aggregate products segment was primarily the result of the acquisition of Polaris Materials. The acquisitions of Corbett Sand & Gravel and Polaris in 2017 resulted in a change in product mix, which has resulted in an overall lower average sales price for the segment.
William J. Sandbrook, chairman, president and chief executive officer of U.S. Concrete Inc. stated, “With the backdrop of an extremely weather challenged operating environment, we are pleased to report record revenue and record Adjusted EBITDA for the full year 2018. Our full-year results include record highs in aggregate products and ready-mixed concrete volumes and revenues. This growth was aided by contributions from our recent acquisitions, most notably Polaris Materials Corp. As we have indicated, Polaris continues to provide the performance we expected, although on a much more accelerated pace than we originally expected, and is contributing meaningfully to the increases in our aggregates segment. As a result, our aggregates segment is now becoming a more significant part of our results. Our continued growth is a testament to our strategy where we build defensible, integrated positions in major metropolitan markets, leading to value-enhancing franchises that are virtually impossible to replicate.
“Despite what can be characterized as a disappointing year because of the weather-related disruptions, there are many positives to note,” Sandbrook said. “Our 2018 fourth quarter was our 32nd consecutive quarter of year-over-year increased revenue. Additionally, we delivered an outstanding cash performance through our consistent focus on operations and working capital management, with net cash provided by operating activities exceeding $120 million for 2018.”
Sandbrook concluded, “Our bullishness on the positive economic outlook in 2019 is only tempered by the uncertainties of the past two years of disruptive long-term weather patterns. All segments of the construction markets in our regions are vibrant and there is a distinct possibility of acceleration in publicly-funded infrastructure projects. Our optimism is supported by our backlog of 7.8 million cu. yd. of concrete that we entered 2019 with, which represents almost 10 months of production of future work.”