US Concrete reported reported net income of $6.9m compared to a net loss of $10m in the first quarter of 2016 in its results for the quarter ended March 2017.
Results for the first quarter of 2017 include the recognition of a $1.9m non-cash derivative related gain compared to a $12.8m non-cash derivative related loss in the first quarter of 2016.
During the 2017 first quarter, income from continuing operations was $7m, as compared to a loss from continuing operations of $9.8m in the 2016 first quarter. Income from continuing operations as a percentage of revenue was 2.3% in the first quarter of 2017, compared to a loss from continuing operations as a percentage of revenue of 4.0% in the first quarter of 2016.
Total adjusted Ebitda increased to $41.1m in the first quarter of 2017, compared to $25.6m in the prior year first quarter. Total Adjusted Ebitda as a percentage of revenue was 13.7% in the first quarter of 2017, compared to 10.5% in the first quarter of 2016.
William J Sandbrook, chief executive, US Concrete, said in a statement: "Our extremely strong first quarter results demonstrate that we continue to capitalize on the strong demand trends and our leadership positions that we have created in our major metropolitan markets.
“Our results for the quarter are even more satisfying in light of near record rainfall in California which negatively affected our operations in the Bay Area. On a year-over-year basis, we achieved our 24th straight quarter of ready-mixed price increases, a 16.2% increase in ready-mixed concrete sales volume, an improvement in income from continuing operations margin of 630 basis points and a 320 basis point expansion in our total adjusted Ebitda margin.
“Our market leading positions in high growth urban areas with difficult operating environments provide us significant competitive advantages to drive these impressive results. We continue to benefit from the strong demand in our major metropolitan markets and strengthen our leadership position in the markets where we operate which has once again led to the solid quarterly results we are reporting today."
"The underlying demand trends in metropolitan New York, the San Francisco Bay area, the Dallas/Fort Worth Metroplex and Washington, DC continue to be extremely robust and we have strategically positioned ourselves in each of these markets to deliver solid earnings growth irrespective of fluctuating levels of federal stimulus or underlying infrastructure funding. However, I am optimistic that additional federal and state resources will be available in the coming years which will only enhance the underlying demand for our aggregates and ready-mixed concrete."
"In April, we acquired the assets of a sand and gravel operation in Southern New Jersey which furthers our strategy of vertical integration and increases our self-sufficiency of internal aggregate products in a market where natural sand is rapidly depleting. We remain active in the acquisition market and expect to continue to supplement our organic growth with strategic expansion within our existing markets including further vertical integration. Our acquisition pipeline continues to provide opportunities for selective, accretive growth in both our ready-mixed concrete and aggregate products platforms, and we are very focused on the potential to enter into new major metropolitan areas this year."
