Agg business shines in second quarter 2020 at U.S. Concrete

U.S. Concrete set some high marks within its aggregate business in the second quarter. Photo: P&Q Staff

Aggregate products revenue at U.S. Concrete increased by $5 million in the second quarter to an all-time high of $54.5 million, the company reports.

According to U.S. Concrete, the improvement is the result of a 10.8 percent increase in sales volume and an 8.5 percent increase in average selling price related to the favorable mix of products sold compared to the second quarter of 2019.

The company’s aggregate products adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of $21.6 million in the second quarter increased 77 percent from the second quarter of 2019, U.S. Concrete adds. The increase can be attributed primarily to improved operating efficiencies, increased production volume at Texas aggregate operations, and profitability from the Coram Materials acquisition, the company says.

“We continue to realize the strategic value of the Coram Materials acquisition, and I’m pleased by the successful integration of that important operation,” says Ronnie Pruitt, president and CEO of U.S. Concrete. “Our growing presence as a third-party provider of critical aggregate products supports the underlying demand trends in all major markets where we operate. This was evident as we achieved [an] all-time quarterly high revenue and adjusted EBITDA in our aggregate products segment during the second quarter of 2020.”

In terms of tons, U.S. Concrete sold about 3.19 million tons of aggregate in the second quarter. That’s up from about 2.88 million tons in the second quarter of 2019. The company’s tonnages are up through the first half of the year, as well, at 12.56 million tons versus 11.96 million tons in the first half of 2019.

Ready-mixed concrete

Revenue from U.S. Concrete’s ready-mixed concrete segment for the second quarter of 2020, meanwhile, decreased $41.6 million – or 13.2 percent compared to the prior year’s second quarter. According to U.S. Concrete, the New York City and California markets were impacted by temporary restrictions and delays in certain construction activity related to the pandemic.