Aggregate become greater driver of U.S. Concrete’s business

By |  February 28, 2019
Headshot: William Sandbrook

Sandbrook

U.S. Concrete reported records in revenue and adjusted EBITDA (earnings before interest tax, depreciation and amortization) upon releasing its full-year 2018 results.

The records were established with the backdrop of an extremely weather-challenged operating environment, says Bill Sandbrook, chairman, president and CEO of U.S. Concrete.

“Our full-year results include record highs in aggregate products and ready-mixed concrete volumes and revenues,” Sandbrook says.

Contributions from recent acquisitions, including Polaris Materials Corp., aided U.S. Concrete’s growth.

“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,” Sandbrook says. “As a result, our aggregates segment is now becoming a more significant part of our results.”

According to U.S. Concrete, aggregate products revenue increased 101.3 percent to $182.6 million while aggregate products volume jumped 79.3 percent to 11.1 million tons. Polaris contributed revenue of $92 million and 5.0 million tons to U.S. Concrete.

While the weather put somewhat of a damper on 2018 for U.S. Concrete and other construction materials producers, Sandbrook details several other positives from last year.

“Our 2018 fourth quarter was our 32nd consecutive quarter of year-over-year increased revenue,” he says. “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 is optimistic about the months ahead, as well.

“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,” he says. “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.”

Kevin Yanik

About the Author:

Kevin Yanik is the editor-in-chief of Pit & Quarry magazine. Yanik can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

Comments are closed