It's boom time for US Concrete. The Texas-based concrete producer is enjoying a very strong North American market. According to William J. Sandbrook, chairman, president and chief executive officer of US Concrete: "We are very pleased to report record results for the second quarter, including all-time quarterly highs in volumes, revenue, adjusted EBITDA (earning before interest, taxes, depreciation and amortisation) and backlog. We believe our second quarter results reflect favorably on the underlying demand environment in each of our markets."
In a statement this week to the NASDAQ stock market, Sandbrook says: "We continue to be excited about the opportunities available to us for growth and margin expansion as we fully integrate our recent acquisitions, improve operational efficiencies and capitalize on operating leverage provided by higher volumes. Our Polaris Materials acquisition is generating significant returns and facilitating the vertical integration of our Northern California operations through just two full quarters under our ownership. Polaris's operational and financial results have exceeded our initial expectations. With Polaris and other recent acquisitions, we have more than doubled our aggregate revenue and volumes during the past 15 months. Our year-to-date total aggregate products revenue, including internally managed hauling and distribution operations, now represents more than 15% of total revenue and should represent close to 20% of revenue after these acquisitions have contributed to our results for a full 12 months. Additionally, the end market diversification provided by the growth in our aggregate products segment and the resiliency in aggregates pricing further strengthens our financial position."
In summary, the latest US Concrete numbers reveal:
- Consolidated revenue increased 18.6% to $404.2 million, an all-time quarterly high;
- Ready-mixed concrete revenue increased 12.9% to $350.0 million, an all-time quarterly high;
- Ready-mixed concrete organic volume grew by 5%;
- Aggregate products revenue increased 113.1% to $48.5 million, an all-time quarterly high;
- Polaris recorded revenue and volume of $22.5 million and 1.3 million tons, respectively, both all-time quarterly highs;
- Income from continuing operations was $16.3 million, an increase of $18.5 million;
- Total Adjusted EBITDA increased 8.9% to $57.7 million1, an all-time quarterly high;
- Net income per diluted share of $0.99 compares to a net loss per diluted share of $0.15;
- Ready-mixed concrete backlog increased 9.8% to an all-time high of 8.3 million cubic yards.
"We continued to see ready-mixed concrete price increases in most of our major markets despite a lower average sales price," Sandbrook added. "The lower average sales price reflects a shift in mix, as opposed to lower pricing. More specifically, individual customer and project level pricing on organic volumes have increased in the overwhelming majority of our regions. In New York City, we re-negotiated our union labor contracts to increase our competitiveness in the non-union market where we were previously cost disadvantaged. This market expansion, while very positive in the long-term, creates a shift in product mix reducing our average sales price. Additionally, with a full quarter contribution from our recent Golden Spread acquisition, our growth in the lower-priced Texas market exceeded that of our other regions, further reducing our average sales price. However, even after considering these regional mix dynamics, our year-to-date average sales price has still increased year-over-year."
The good news will keep on coming. Sandbrook added: "We continue to focus on executing our strategic plan. Our second quarter results represent a strong rebound from previous weather-impacted quarters, and we expect a continuing positive trend as the year progresses. The fundamentals remain strong in all of the markets that we serve, and we are very excited about the future."
