U.S. Concrete Inc. announced results for the quarter ended March 31, noting consolidated revenue was $285.7 million, a decrease of $48.7 million, or 14.6%, compared to the prior year first quarter, primarily as a result of lower ready-mixed concrete volumes. Aggressive cost-containment measures, operating efficiencies and growth from the aggregate products segment helped to mitigate the impact on operating income from lower revenue.
Aggregate products revenue increased 2.1% to $44.5 million, an all-time first-quarter high. Aggregate products average selling price-per-ton increased 8.9% to $13.32, also an all-time first-quarter high.
Ronnie Pruitt, president and chief executive officer, stated, “Despite the challenges that we faced with significant winter weather during the first quarter, we are pleased with the progress we have made on our operational efficiencies and cost containment efforts. We are seeing an increase in bidding levels and project starts, which continue to point to a stronger second half of 2021. We are optimistic about the business outlook, as we see improved demand for our products with strong residential activity, diversified commercial needs and resilient infrastructure projects, which should be enhanced by a national infrastructure bill.”
Revenue from the ready-mixed concrete segment for the first quarter of 2021 was $241.5 million, a decrease of $50.7 million, or 17.4%, compared to the prior year first quarter. The revenue decline was generally consistent with what the company has experienced since the onset of the coronavirus pandemic, but was further impacted by inclement weather during the first quarter of 2021.
The decline resulted from lower volumes in the company’s coastal regions as a result of weather delays and the regional effects of the pandemic, including certain construction project delays. Business contingency actions, including labor management, concrete mix optimization, higher asset utilization and delivery efficiencies, reduced the impact from lower revenue on adjusted EBITDA in the first quarter of 2021.
U.S. Concrete subsidiaries include:
- Central Concrete Supply Co. Inc. – San Francisco Bay Area.
- Ingram Concrete LLC – West Texas.
- Redi-Mix LLC – Dallas/Fort Worth.
- Eastern Concrete Materials Inc. – New Jersey.
- Ferrara Bros. LLC – New York.
- New York Sand & Stone, LLC – New York.
- Superior Concrete Materials Inc. – Washington, D.C.
- Heavy Materials, LLC – U.S. Virgin Islands.
- U.S. Concrete On-Site Inc. – nationwide.
- Polaris Materials – British Columbia, Canada.
- Action Supply – Philadelphia.