First-quarter 2020 agg revenue up at U.S. Concrete

U.S. Concrete‘s first-quarter 2020 aggregate products revenue increased 1.6 percent to $43.6 million, compared to the first quarter of 2019, the company reports.

Aggregate products sales volumes improved 5.4 percent in the first quarter to 2.6 million tons.

“We are very pleased with our financial results for the first quarter, which we accomplished in spite of significant rainfall in Texas and the initial impacts of COVID-19,” says Ronnie Pruitt, president and CEO at U.S. Concrete. “Since early March, we have been focused non-stop on increased efforts to evaluate all areas of our business, both financially and operationally, to further drive process improvements and maximize financial flexibility. Our operations have been generally deemed to be essential, and we remain operational in each our regions.”

According to the company, the increase in aggregate products revenue results from a 5.4 percent increase in sales volume and 0.9 percent increase in average selling price related to the mix of products sold.

“Our Coram Materials acquisition in February enhanced our vertical integrated position in the New York market,” Pruitt says. “While our production volumes at Coram have decreased due to COVID-19 related slowdown in New York City, we are starting to experience improved production volumes in recent days. We are pleased with the business and our ability to integrate their operations, which generated $1.7 million of adjusted EBITDA (earnings before interest, tax, depreciation and amortization) during the quarter post-acquisition.”

In regard to the coronavirus pandemic’s effects on U.S. Concrete’s first-quarter results, the company is withdrawing its previous 2020 financial guidance, Pruitt says.

“Even though certain of our projects in New York and San Francisco have been delayed due to the definition of ‘essential construction work’ in those local markets, the majority of our markets continue to see solid demand,” Pruitt says. “We have taken swift action throughout the business to realign our cost structure with our operating volumes and will continue to reassess our costs in light of evolving market conditions. We believe we are well positioned to weather this storm and capitalize on the opportunities that will present themselves as the economy rebounds.”

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