U.S. Concrete Inc. reported results for the quarter ended March 31, including:
- Consolidated revenue increased 1.6% to $333.1 million.
- Ready-mixed concrete revenue increased 0.4% to $290.4 million.
- Aggregate products revenue increased 25.4% to $42.9 million.
- Aggregate products volume increased 17.0% to 2.5 million tons.
- Operating income increased to $7.9 million and operating income margin increased to 2.4%.
- Adjusted Gross Profit increased 4.8% to $64.7 million and Adjusted Gross Profit Margin increased to 19.4%.
Aggregate product sales volume increased 17.0% compared to the prior-year first quarter, predominantly driven by the company’s Polaris and west Texas quarries. Adjusted EBITDA for this segment increased to $10.4 million in the first quarter of 2019 from $4.7 million in last year’s first quarter, primarily reflecting the higher sales volume partially offset by the related higher production costs associated with the increased volume.
William J. Sandbrook, chairman and chief executive officer stated, “While faced with negative weather patterns, which seemingly have become routine, we are pleased to report multiple financial accomplishments, including our 33rd consecutive quarter of year-over-year revenue growth and an improved adjusted gross profit. We continue to believe these trends, including the solid runway of demand in all of our regions, reflect the strong fundamentals in the markets we serve.”
Sandbrook continued, “A significant driver of the positive momentum in our Adjusted Gross Profit is the significant growth in our higher margin aggregate products segment, once again led by Polaris. We sold 2.5 million tons of aggregates during the 2019 first quarter, generating more than $10 million of Adjusted EBITDA, which is more than double last year’s first quarter.
“There are numerous positive indicators that fuel our positive outlook for continued growth and reaffirm our position in the construction market,” he concluded. “We are focused on continuous improvement in the face of the negative weather patterns with the intent to fortify our market positions and related operating leverage. We have several internal strategic initiatives in place to help us capitalize on the robust demand within all of our regions. These initiatives are designed to improve our operating leverage, customer service, internal processes, and most importantly our ability to operate more efficiently in our seasonal and cyclical business.”