U.S. Concrete aggregate product sales up in second quarter 2017

U.S. Concrete reported a net loss of $2.3 million in the second quarter of 2017 compared to a net loss of $3.5 million in the second quarter of 2016. According to the company, results for the second quarter of 2017 include the recognition of a $15.8 million non-cash derivative-related loss resulting from fair value changes in the company’s outstanding warrants, as well as $2.4 million in acquisition-related costs.

In addition, the company’s consolidated revenue increased 23.6 percent to $340.9 million in the second quarter of 2017, compared with $275.8 million in the second quarter of 2016.

Aggregate product sales volume was 1.5 million tons in the second quarter of 2017, an 8.3 percent increase compared with the second quarter of 2016. The average sales price of aggregate improved 7.5 percent to $12.86 per ton in the 2017 second quarter compared with the second quarter of 2016, the company adds.

In addition, U.S. Concrete’s ready-mixed concrete sales volume was 2.3 million cu. yd., which was up 19.7 percent compared with the second quarter in 2016. The average sales price per cubic yard for ready-mixed concrete increased $5.42, or 4.2 percent, to $134.43 compared with $129.01 in the second quarter of 2016.

“Our strong second quarter results demonstrate that we continue to successfully build upon our leadership positions in the major metropolitan markets in which we operate and capitalize on positive demand trends,” says William Sandbrook, president and CEO of U.S. Concrete. “Our market strategy continues to prove successful and allowed us to achieve our 26th straight quarter of year-over-year revenue growth and 25th straight quarter of ready-mixed concrete pricing growth. Additionally, we remain focused on operating excellence and capitalized on our strategic operating leverage, which drove incremental aggregate products segment and ready-mixed concrete segment adjusted EBITDA (earnings before interest, tax, depreciation and amortization) margins of 72.7 percent and 27.2 percent, respectively, through the first half of 2017.”

Consolidated revenue for the first six months of 2017 increased 22.9 percent to $640.1 million, compared with $520.8 million in the first six months of 2016. According to the company, this increase was driven by higher volume and pricing for its aggregate and ready-mixed concrete products. In the first half of 2017, aggregate products revenue increased $6.3 million, or 18.4 percent, and ready-mixed concrete revenue increased $113 million, or 23.9 percent, compared with the first half of 2016.