U.S. Concrete Inc. reported results for the quarter ended Sept. 30. Consolidated revenue increased 1.1% from last year’s third quarter to $408.9 million, an all-time quarterly high.
Ready-mixed concrete revenue increased 2.3% from last year’s third quarter to $354.1 million, an all-time quarterly high. However, aggregate products revenue declined $0.6 million in the quarter, resulting from a 3.0% decrease in sales volume that was partially offset by a 2.0% increase in average selling price.
Sales volume growth was hindered by the delay in certain Polaris Materials’s shipments due to one of the transportation carrier’s ships being temporarily taken out of service.
William J. Sandbrook, chairman and chief executive officer of U.S. Concrete, Inc. stated, “With the benefit of continued economic expansion and improved weather patterns I am pleased to announce our third quarter 2019 results, which include quarterly records of consolidated revenue, consolidated total adjusted EBITDA, ready-mixed concrete segment revenue and aggregate products segment adjusted EBITDA. Our revenue growth was driven by both higher ready-mixed concrete segment volumes and higher average sales prices in our aggregate products and ready-mixed concrete segments. The increased ready-mixed concrete volumes also enabled us to improve our adjusted EBITDA margin to 15.2% this quarter. These results validate our belief in the strength of each regional market we serve.”
Sandbrook continued, “Our margin improvement was aided by increased ready-mixed concrete volumes and solid operational improvements in our aggregate products segment. We continue to focus on enhancing our margins through cost containment and increased utilization of technology. We are increasing our technology investments with the objective of improving our customers’ experiences while increasing revenue and reducing costs.
“We will continue to work strategically and operationally on those areas of our business that will improve shareholder value. Our expectation is to continue with our strategy of building defensible, vertically-integrated positions in major metropolitan markets with an increasing emphasis on aggregate products, which lead to value-enhancing franchises that are virtually impossible to replicate,” Sandbrook concluded.