Third-quarter 2020 agg business shines at U.S. Concrete

Aggregate products revenue increased $10.7 million in the third quarter at U.S. Concrete to an all-time high of $63.6 million.

According to the company, the result stems from a 17.6 percent increase in sales volume and a 12.7 percent increase in average selling price related to the favorable mix of products sold compared to the third quarter of 2019.

U.S. Concrete’s aggregate products adjusted EBITDA (earnings before interest, tax, depreciation and amortization) came in at $26.8 million in the third quarter, increasing 64.4 percent from the prior year’s quarter. The increase was primarily related to improved operating efficiencies, increased production volume at the company’s Texas aggregate operations, and the profitability from the Coram Materials business acquired earlier this year, the company says.

“We believe our business is well positioned to continue to deliver strong results, both in the short and long term,” says Ronnie Pruitt, president and CEO of U.S. Concrete. “We are very proud to announce record results for the quarter, and record six-month results when combining the second and third quarters of 2020 – all in the context of lower revenues amid the pandemic.

“The transformation we have undertaken over the past several years to reshape our portfolio and capabilities for growth and better margins has proven critical in enabling us to respond to the changing dynamics in the current environment,” Pruitt adds. “Our diversified portfolio of operating assets, commitment to innovate, and agile culture have allowed us to respond to the construction demand in the markets that we serve and positions us to deliver meaningful financial results into the future.”

Ready-mix results

Revenue from U.S. Concrete’s ready-mixed concrete segment for the third quarter, however, decreased $40.8 million – or 11.5 percent compared to the prior-year third quarter.

According to the company, the business continued to be impacted by regional effects of the pandemic, including certain construction project delays and cement supply shortages.

Companywide takeaways

Additionally, U.S. Concrete’s consolidated revenue decreased $34.7 million, or 8.5 percent, compared to the prior-year third quarter. According to the company, the decrease was primarily the result of lower ready-mixed concrete volumes, which were partially offset by record revenue from aggregate products.