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How U.S. Concrete fared in the third quarter

By |  November 3, 2017

U.S. Concrete released its third-quarter results for the year, noting that aggregate products revenue decreased 5.3 percent but that the average sales price of its aggregate products improved 2.7 percent.

The company’s average aggregate product sales price improved to $12.25 per ton.

U.S. Concrete estimates that inclement weather in Texas resulted in the deferral of about 90,000 tons of aggregate sales for the quarter, in addition to downward pressure in its New Jersey market from weather delays and project timing. The company’s aggregate products sales volume was 1.5 million tons, down 5.8 percent compared with the prior year third quarter.

U.S. Concrete’s overall consolidated revenue increased 7.9 percent to $354.6 million. Revenue from the ready-mixed concrete segment increased $25.7 million, or 8.6 percent, compared with the prior year’s third quarter, driven by volume and pricing.

“Despite significant weather-related challenges, we are pleased to report that U.S. Concrete reached new quarterly highs for both revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the third quarter of 2017,” says William Sandbrook, president, CEO and vice chairman of U.S. Concrete. “Our results continue to validate the strength of our market positions, the robustness of our regional construction economies and the operational excellence of our dedicated team members that helped us to produce solid growth in a quarter that was overshadowed by three devastating hurricanes and one of the wettest summers on record in Texas.”

According to Sandbrook, U.S. Concrete’s market strategy continues to prove successful and has enabled the company to achieve its 27th straight quarter of year-over-year revenue growth. The company also achieved its 26th straight quarter of ready-mixed concrete pricing growth.

“We remain very optimistic for the future as the economic fundamentals across all of our markets continue to indicate a very positive outlook,” Sandbrook says. “Our ready-mixed concrete backlog has grown 7.7 percent since the beginning of the year, and we are optimistic about the growth prospects in our markets with construction spending expected to outpace the national average for the next 12 to 18 months in the San Francisco Bay area, the Dallas-Fort Worth metroplex and the five boroughs of New York City.”

On the year, U.S. Concrete’s consolidated revenue increased 17.1 percent to $994.7 million, versus $849.4 million in the comparable prior year period. Revenue growth was driven by higher volume and pricing in both ready-mixed concrete and aggregate products, the company says.

Aggregate products revenue increased $5.2 million, or 9.1 percent, over the first nine months of 2017.

U.S. Concrete serves the construction industry in several major markets in the United States through its two business segments: ready-mixed concrete and aggregate products.  The company has 162 standard ready-mixed concrete plants, 17 volumetric ready-mixed concrete facilities and 17 producing aggregates facilities.  During 2016, U.S. Concrete sold approximately 8.1 million cubic yards of ready-mixed concrete and approximately 5.6 million tons of aggregates.

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.

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