US Concrete has reported an 18.6% increase in consolidated revenue for the second quarter of 2018, to a record quarterly high of US$404.2million.
The company, which produces construction materials for major markets across the US, also saw aggregate products revenue rise by 113.1% to US$48.5mn compared with Q2 2017.
Revenue from the ready-mixed concrete segment increased by US$39.9mn (12.9%) from Q2 last year, which US Concrete says was driven by 5% organic volume growth and contributions from its recent acquisitions.
The company increased its presence in the aggregates sector with the acquisition of Canada-based aggregates quarry operator Polaris Materials in November last year.
US Concrete says the acquisition is generating significant returns, and that Polaris' operational and financial results have exceeded its initial expectations. The company added in a statement: "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 October 2017 US Concrete also bought Action Supply, which supplies the Philadelphia metropolitan market with high-strength ready-mixed concrete.
US Concrete’s ready-mixed concrete sales volume increased by 13.9% compared with Q2 2017. Ready-mixed concrete backlog at the end of the 2018 second quarter was a record 8.3 million cubic yards, up 9.8% compared to the end of the prior year second quarter and up 5.5% compared to 2017 year-end.
William Sandbrook, chairman, president and CEO of US Concrete, commented: "We believe our second quarter results reflect favourably on the underlying demand environment in each of our markets.
"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."
Sandbrook added that the company expects "a continuing positive trend" as 2018 progresses.
