First Quarter 2018 Results Compared to First Quarter 2017

Consolidated revenue increased 9.6% to $327.8 million, compared to $299.1 million in the prior year first quarter. Revenue from the ready-mixed concrete segment increased $13.8 million, or 5.0%, compared to the prior year first quarter, driven by acquisition volume and pricing. The Company's ready-mixed concrete sales volume was 2.1 million cubic yards, up 2.2% compared to the prior year first quarter. Ready-mixed concrete average sales price per cubic yard increased $2.71, or 2.0%, to $136.99 compared to $134.28 in the prior year first quarter. Ready-mixed concrete material spread increased to $67.34 per cubic yard, compared to $66.70 per cubic yard in the prior year first quarter. Ready-mixed concrete backlog at the end of the 2018 first quarter was approximately 8.2 million cubic yards, up 11.0% compared to the end of the prior year first quarter and up 4.0% compared to 2017 year end. Aggregate products sales volume was 2.1 million tons, up 71.3% compared to the prior year first quarter, including the benefit of 2017 acquisitions. Aggregate products average sales price increased 14.1% to $14.36 per ton in the 2018 first quarter compared to the prior year first quarter.

During the 2018 first quarter, operating income was $7.5 million compared to $21.3 million in the first quarter of 2017, with an operating income margin of 2.3% compared to 7.1% in the first quarter of 2017. The first quarter of 2018 included the negative impact of weather-related challenges as we experienced the wettest February on record in the Dallas/Ft. Worth metroplex and four nor'easters impacted our Atlantic region during March. These weather delays did not result in the cancellation of work, only deferring it into future quarters. On a non-GAAP basis, our consolidated Adjusted Gross Profit was $61.7 million in the 2018 first quarter compared to $63.4 million in the prior year first quarter, with an Adjusted Gross Margin of 18.8% compared to 21.2% in the prior year first quarter. Adjusted Gross Margin declined as a result of a change in overall product mix and the negative impact of weather-related delays in some of our major markets. Adjusted Gross Profit and Adjusted Gross Margin are non-GAAP financial measures. Please refer to the definitions, reconciliations and other information at the end of this press release.

Selling, general and administrative ("SG&A") expenses were $32.3 million in the 2018 first quarter compared to $25.8 million in the prior year first quarter. SG&A as a percentage of revenue was 9.8% in the 2018 first quarter compared to 8.6% in the prior year first quarter. We incurred $2.5 million in acquisition-related costs during the first quarter of 2018 compared to $0.4 million in the first quarter of 2017. We also incurred $2.2 million in non-cash stock compensation expense during the first quarter of 2018 compared to $1.6 million in the first quarter of 2017. On a non-GAAP basis, our Adjusted SG&A, which excludes acquisition-related costs and non-cash stock compensation expense, was $27.5 millionfor the 2018 first quarter compared to $23.2 million in the prior year first quarter, reflecting increased personnel-related costs to support our growth initiatives and acquisition strategy as well as the impact of SG&A from recent acquisitions. Adjusted SG&A as a percentage of revenue was 8.4% in the 2018 first quarter, compared to 7.8% in the prior year first quarter. Adjusted SG&A and Adjusted SG&A as a percentage of revenue are non-GAAP financial measures. Please refer to the definitions, reconciliations and other information at the end of this press release.

During the 2018 first quarter, our loss from continuing operations was $3.8 million, as compared to income from continuing operations of $7.0 million in the 2017 first quarter. Total Adjusted EBITDA was $36.0 million in the 2018 first quarter. Ready-mixed concrete segment Adjusted EBITDA was $41.0 million in the 2018 first quarter, which was adversely impacted by weather compared to the prior year. Aggregate products Adjusted EBITDA of $5.0 million in the 2018 first quarter increased $1.0 million compared to the prior year first quarter primarily related to higher sales volumes, including the benefit of 2017 acquisitions, despite significant weather-related delays during the quarter. Total Adjusted EBITDA is a non-GAAP financial measure. Please refer to the definitions, reconciliations and other information at the end of this press release.

For the first quarter of 2018, the net loss attributable to U.S. Concrete was $3.9 million, or $0.23 per diluted share, compared to net income attributable to U.S. Concrete of $6.9 million, or $0.42 per diluted share, in the first quarter of 2017. Adjusted Net Income from Continuing Operations was $3.0 million, or $0.18 per diluted share in the first quarter of 2018, compared to $11.2 million, or $0.68 per diluted share, in the prior year first quarter, including the impact of a normalized tax rate of 26% in both periods. Adjusted Net Income from Continuing Operations and Adjusted Net Income from Continuing Operations per Diluted Share are non-GAAP financial measures. Please refer to the definitions, reconciliations and other information at the end of this press release.

First Quarter 2018 Highlights Compared to First Quarter 2017

  • Consolidated revenue increased 9.6% to $327.8 million
  • Ready-mixed concrete revenue increased 5.0% to $289.2 million
  • Ready-mixed concrete average sales price improved 2.0% to $136.99 per cubic yard
  • Aggregate products revenue increased 83.3% to $32.7 million
  • Aggregate products average sales price increased 14.1% to $14.36 per ton
  • Completed three acquisitions, including ready-mixed concrete plants in key growth markets enhancing the Company's established presence in the New York metro and Philadelphia regions, and ready-mixed concrete plants and aggregate reserves within Texas, which increased vertical integration
  • Ready-mixed concrete backlog increased 11.0% to an all-time high of 8.2 million cubic yards