Investor Relations
Press Release
U.S. Concrete Announces First Quarter 2017 Results
First Quarter 2017 Highlights Compared to First Quarter 2016
- Consolidated revenue increased 22.1% to
$299.1 million - Ready-mixed concrete revenue increased 22.9% to
$275.5 million - Ready-mixed concrete average sales price improved 6.2% to
$134.28 per cubic yard - Aggregate products revenue increased 17.7% to
$17.8 million - Aggregate products average sales price improved 10.6% to
$12.59 per ton - Net income per diluted share of
$0.42 compared to net loss per diluted share of$0.68 - Adjusted Net Income from Continuing Operations per Diluted Share of
$0.55 compared to$0.31 1 - Income from continuing operations of
$7.0 million compared to loss from continuing operations of$9.8 million - Income from continuing operations margin of 2.3% compared to loss from continuing operations margin of 4.0%
- Total Adjusted EBITDA increased 60.2% to
$41.1 million 1 - Total Adjusted EBITDA margin of 13.7% compared to 10.5%1
- Generated net cash provided by operating activities of
$29.5 million and Adjusted Free Cash Flow of$19.6 million - In
April 2017 , acquired a fine aggregates operation inNew Jersey and access to an additional export dock, which expanded the Company's aggregates reserves and transportation options
1 Adjusted Net Income from Continuing Operations per Diluted Share, Total Adjusted EBITDA, Total Adjusted EBITDA Margin and Adjusted Free Cash Flow are non-GAAP financial measures. Please refer to the reconciliations and other information at the end of this press release.
FIRST QUARTER 2017 RESULTS COMPARED TO FIRST QUARTER 2016 RESULTS
Consolidated revenue increased 22.1% to
During the 2017 first quarter, operating income increased
Selling, general and administrative ("SG&A") expenses were
During the 2017 first quarter, income from continuing operations was
For the first quarter of 2017, net income was
BALANCE SHEET AND LIQUIDITY
Net cash provided by operating activities in the first quarter of 2017 was
At
ACQUISITIONS
In
CONFERENCE CALL AND WEBCAST DETAILS
A live webcast will be available on the Investor Relations section of the Company's website at www.us-concrete.com. Please visit the website at least 15 minutes before the call begins to register, download and install any necessary audio software. A replay of the conference call and archive of the webcast will be available shortly after the call on the Investor Relations section of the Company's website at www.us-concrete.com.
ABOUT
For more information on
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains various forward-looking statements and information that are based on management's beliefs, as well as assumptions made by and information currently available to management. These forward-looking statements speak only as of the date of this press release. The Company disclaims any obligation to update these statements and cautions you not to rely unduly on them. Forward-looking information includes, but is not limited to, statements regarding: the expansion of the business; the opportunities and results of our acquisitions; the prospects for growth in new and existing markets; encouraging nature of volume and pricing increases; the business levels of our existing markets; ready-mixed concrete backlog; ability to maintain our cost structure and monitor fixed costs; ability to maximize liquidity, manage variable costs, control capital spending and
monitor working capital usage; and the adequacy of current liquidity. Although
(Tables Follow)
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(Unaudited) | |||||||||
(in thousands, except per share amounts) | |||||||||
Three Months Ended |
|||||||||
2017 | 2016 | ||||||||
Revenue | $ | 299,133 | $ | 245,045 | |||||
Cost of goods sold before depreciation, depletion and amortization | 235,759 | 198,758 | |||||||
Selling, general and administrative expenses | 25,817 | 23,163 | |||||||
Depreciation, depletion and amortization | 15,859 | 11,641 | |||||||
Loss on revaluation of contingent consideration | 608 | 1,247 | |||||||
(Gain) loss on sale of assets | (192 | ) | 101 | ||||||
Operating income | 21,282 | 10,135 | |||||||
Interest expense, net | (10,142 | ) | (5,700 | ) | |||||
Derivative gain (loss) | 1,856 | (12,780 | ) | ||||||
Other income, net | 708 | 497 | |||||||
Income (loss) from continuing operations before income taxes | 13,704 | (7,848 | ) | ||||||
Income tax expense | 6,702 | 1,991 | |||||||
Income (loss) from continuing operations | 7,002 | (9,839 | ) | ||||||
Loss from discontinued operations, net of taxes | (122 | ) | (188 | ) | |||||
Net income (loss) | $ | 6,880 | $ | (10,027 | ) | ||||
Basic income (loss) per share: | |||||||||
Income (loss) from continuing operations | $ | 0.45 | $ | (0.67 | ) | ||||
Loss from discontinued operations, net of taxes | (0.01 | ) | (0.01 | ) | |||||
Net income (loss) per share - basic | $ | 0.44 | $ | (0.68 | ) | ||||
Diluted income (loss) per share: | |||||||||
Income (loss) from continuing operations | $ | 0.43 | $ | (0.67 | ) | ||||
Loss from discontinued operations, net of taxes | (0.01 | ) | (0.01 | ) | |||||
Net income (loss) per share - diluted | $ | 0.42 | $ | (0.68 | ) | ||||
Weighted average shares outstanding: | |||||||||
Basic | 15,498 | 14,789 | |||||||
Diluted | 16,483 | 14,789 | |||||||
|
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(in thousands) | ||||||||||
|
|
|||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 291,824 | $ | 75,774 | ||||||
Trade accounts receivable, net | 199,826 | 207,292 | ||||||||
Inventories | 41,797 | 41,979 | ||||||||
Prepaid expenses | 10,027 | 5,534 | ||||||||
Other receivables | 6,011 | 8,691 | ||||||||
Other current assets | 1,858 | 2,019 | ||||||||
Total current assets | 551,343 | 341,289 | ||||||||
Property, plant and equipment, net | 341,493 | 337,412 | ||||||||
133,372 | 133,271 | |||||||||
Intangible assets, net | 125,685 | 130,973 | ||||||||
Other assets | 2,249 | 2,457 | ||||||||
Total assets | $ | 1,154,142 | $ | 945,402 | ||||||
LIABILITIES AND EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 104,033 | $ | 110,694 | ||||||
Accrued liabilities | 86,798 | 85,243 | ||||||||
Current maturities of long-term debt | 17,429 | 16,654 | ||||||||
Derivative liabilities | 45,815 | 57,415 | ||||||||
Total current liabilities | 254,075 | 270,006 | ||||||||
Long-term debt, net of current maturities | 641,206 | 432,644 | ||||||||
Other long-term obligations and deferred credits | 42,025 | 46,267 | ||||||||
Deferred income taxes | 10,173 | 7,656 | ||||||||
Total liabilities | 947,479 | 756,573 | ||||||||
Commitments and contingencies | ||||||||||
Equity: | ||||||||||
Preferred stock | - | - | ||||||||
Common stock | 17 | 17 | ||||||||
Additional paid-in capital | 261,521 | 249,832 | ||||||||
Accumulated deficit | (32,416 | ) | (39,296 | ) | ||||||
Treasury stock, at cost | (22,459 | ) | (21,724 | ) | ||||||
Total stockholders' equity | 206,663 | 188,829 | ||||||||
Total liabilities and stockholders' equity | $ | 1,154,142 | $ | 945,402 | ||||||
|
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(Unaudited) | ||||||||||
(in thousands) | ||||||||||
Three Months Ended |
||||||||||
2017 | 2016 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income (loss) | $ | 6,880 | $ | (10,027 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||
Depreciation, depletion and amortization | 15,859 | 11,641 | ||||||||
Debt issuance cost amortization | 519 | 538 | ||||||||
Amortization of discount on long-term incentive plan and other accrued interest | 185 | 118 | ||||||||
Amortization of premium on long-term debt | (388 | ) | - | |||||||
Net (gain) loss on derivative | (1,856 | ) | 12,780 | |||||||
Net loss on revaluation of contingent consideration | 608 | 1,247 | ||||||||
Net gain (loss) on sale of assets | (192 | ) | 101 | |||||||
Deferred income taxes | 2,761 | 499 | ||||||||
Provision for doubtful accounts and customer disputes | 718 | 335 | ||||||||
Stock-based compensation | 1,619 | 1,377 | ||||||||
Changes in assets and liabilities, excluding effects of acquisitions: | ||||||||||
Accounts receivable | 6,749 | 13,233 | ||||||||
Inventories | 182 | (1,244 | ) | |||||||
Prepaid expenses and other current assets | (2,246 | ) | (3,385 | ) | ||||||
Other assets and liabilities | (77 | ) | (72 | ) | ||||||
Accounts payable and accrued liabilities | (1,777 | ) | (7,101 | ) | ||||||
Net cash provided by operating activities(1) | 29,544 | 20,040 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Purchases of property, plant and equipment | (10,718 | ) | (11,220 | ) | ||||||
Payments for acquisitions, net of cash acquired | (2,731 | ) | (18,681 | ) | ||||||
Proceeds from disposals of property, plant and equipment | 485 | 37 | ||||||||
Proceeds from disposal of businesses | 294 | 125 | ||||||||
Net cash used in investing activities | (12,670 | ) | (29,739 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Proceeds from revolver borrowings | - | 84,956 | ||||||||
Repayments of revolver borrowings | - | (64,956 | ) | |||||||
Proceeds from issuance of debt | 211,500 | - | ||||||||
Proceeds from exercise of stock options and warrants | 327 | 57 | ||||||||
Payments of other long-term obligations | (4,500 | ) | (2,943 | ) | ||||||
Payments for other financing | (4,246 | ) | (2,324 | ) | ||||||
Debt issuance costs | (3,170 | ) | (119 | ) | ||||||
Other treasury share purchases | (735 | ) | (62 | ) | ||||||
Net cash provided by financing activities(1) | 199,176 | 14,609 | ||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 216,050 | 4,910 | ||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 75,774 | 3,925 | ||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 291,824 | $ | 8,835 |
(1) For the three months ended |
SEGMENT FINANCIAL INFORMATION
Our two reportable segments consist of ready-mixed concrete and aggregate products. Our chief operating decision maker evaluates segment performance and allocates resources based on Adjusted EBITDA. The following tables set forth certain unaudited financial information relating to our continuing operations by reportable segment (in thousands, except average sales price amounts):
Three Months Ended |
|||||||||||
2017 | 2016 | ||||||||||
Revenue: | |||||||||||
Ready-mixed concrete | |||||||||||
Sales to external customers | $ | 275,456 | $ | 224,089 | |||||||
Aggregate products | |||||||||||
Sales to external customers | 9,297 | 7,859 | |||||||||
Intersegment sales | 8,527 | 7,286 | |||||||||
Total aggregate products | 17,824 | 15,145 | |||||||||
Total reportable segment revenue | 293,280 | 239,234 | |||||||||
Other products and eliminations | 5,853 | 5,811 | |||||||||
Total revenue | $ | 299,133 | $ | 245,045 | |||||||
Reportable Segment Adjusted EBITDA | |||||||||||
Ready-mixed concrete Adjusted EBITDA | $ | 41,504 | $ | 27,755 | |||||||
Aggregate products Adjusted EBITDA | $ | 3,997 | $ | 2,924 | |||||||
Three Months Ended |
Year-Over-Year % Change | |||||||
2017 | 2016 | |||||||
Ready-Mixed Concrete | ||||||||
Average sales price per cubic yard | $ | 134.28 | $ | 126.44 | 6.2 % | |||
Sales volume in cubic yards | 2,049 | 1,764 | 16.2 % | |||||
Aggregate Products | ||||||||
Average sales price per ton | $ | 12.59 | $ | 11.38 | 10.6 % | |||
Sales volume in tons | 1,246 | 1,198 | 4.0 % | |||||
NON-GAAP FINANCIAL MEASURES |
Total Adjusted EBITDA and Total Adjusted EBITDA Margin |
We define Total Adjusted EBITDA as our income (loss) from continuing operations plus income tax expense (benefit), depreciation, depletion and amortization, net interest expense, derivative (gain) loss, non-cash gain (loss) on revaluation of contingent consideration, non-cash stock compensation expense, acquisition-related professional fees, and officer severance. Acquisition-related professional fees consists of fees and expenses for accountants, lawyers and other professionals incurred during the negotiation and closing of strategic acquisitions and does not include fees or expenses associated with post-closing integration of strategic acquisitions. We define Total Adjusted EBITDA Margin as the amount determined by dividing Total Adjusted EBITDA by total revenue. We have included Total Adjusted EBITDA and Total Adjusted EBITDA Margin herein because they are widely used by investors for valuation and comparing our financial performance with the performance of other building material companies. We also use Total Adjusted EBITDA and Total Adjusted EBITDA Margin to monitor and compare the financial performance of our operations. Total Adjusted EBITDA does not give effect to the cash we must use to service our debt or pay our income taxes and thus does not reflect the funds actually available for capital expenditures. In addition, our presentation of Total Adjusted EBITDA may not be comparable to similarly titled measures other companies report. Total Adjusted EBITDA and Total Adjusted EBITDA Margin are not intended to be used as an alternative to any measure of our performance in accordance with GAAP. The following table reconciles Total Adjusted EBITDA to the most directly comparable GAAP financial measure, which is income (loss) from continuing operations (in thousands).
Three Months Ended |
||||||||||
2017 | 2016 | |||||||||
Total Adjusted EBITDA Reconciliation | ||||||||||
Income (loss) from continuing operations | $ | 7,002 | $ | (9,839 | ) | |||||
Add: Income tax expense | 6,702 | 1,991 | ||||||||
Income (loss) from continuing operations before income taxes | 13,704 | (7,848 | ) | |||||||
Add: Depreciation, depletion and amortization | 15,859 | 11,641 | ||||||||
Add: Interest expense, net | 10,142 | 5,700 | ||||||||
Add: Derivative (gain) loss | (1,856 | ) | 12,780 | |||||||
Add: Non-cash loss on revaluation of contingent consideration | 608 | 1,247 | ||||||||
Add: Non-cash stock compensation expense | 1,619 | 1,377 | ||||||||
Add: Acquisition-related professional fees | 413 | 747 | ||||||||
Add: Officer severance | 584 | - | ||||||||
Total Adjusted EBITDA (non-GAAP) | $ | 41,073 | $ | 25,644 | ||||||
Income (loss) from continuing operations margin | 2.3 | % | (4.0 | )% | ||||||
Total Adjusted EBITDA Margin (non-GAAP) | 13.7 | % | 10.5 | % | ||||||
Adjusted Gross Profit and Adjusted Gross Margin |
We define Adjusted Gross Profit as our operating income, plus depreciation, depletion and amortization, selling, general and administrative expenses, loss (gain) on revaluation of contingent consideration, and (gain) loss on sale of assets. We define Adjusted Gross Margin as the amount determined by dividing Adjusted Gross Profit by total revenue. We have included Adjusted Gross Profit and Adjusted Gross Margin herein because they are widely used by investors for valuing and comparing our financial performance from period to period. We also use Adjusted Gross Profit and Adjusted Gross Margin to monitor and compare the financial performance of our operations. The following table reconciles Adjusted Gross Profit to the most directly comparable GAAP financial measure, which is operating income (in thousands).
Three Months Ended | ||||||||
|
||||||||
2017 | 2016 | |||||||
Adjusted Gross Profit Reconciliation | ||||||||
Operating income | $ | 21,282 | $ | 10,135 | ||||
Add: Depreciation, depletion and amortization | 15,859 | 11,641 | ||||||
Add: Selling, general and administrative expenses | 25,817 | 23,163 | ||||||
Add: Loss on revaluation of contingent consideration | 608 | 1,247 | ||||||
Add: (Gain) loss on sale of assets | (192 | ) | 101 | |||||
Adjusted Gross Profit (non-GAAP) | $ | 63,374 | $ | 46,287 | ||||
Operating income margin | 7.1 | % | 4.1 | % | ||||
Adjusted Gross Margin (non-GAAP) | 21.2 | % | 18.9 | % | ||||
Adjusted Net Income from Continuing Operations and Adjusted Net Income from Continuing Operations per Diluted Share |
We define Adjusted Net Income from Continuing Operations as net income, plus loss from discontinued operations, net of taxes, income tax expense (benefit), derivative (gain) loss, non-cash stock compensation expense, acquisition-related professional fees, officer severance and non-cash loss (gain) on revaluation of contingent consideration. We also adjust Adjusted Net Income from Continuing Operations for a normalized effective income tax rate of 40%. We define Adjusted Net Income from Continuing Operations per Diluted Share as Adjusted Net Income from Continuing Operations on a diluted per share basis. Acquisition-related professional fees consists of fees and expenses for accountants, lawyers and other professionals incurred during the negotiation and closing of strategic acquisitions and does not include fees or expenses associated with post-closing integration of strategic acquisitions.
We have included Adjusted Net Income from Continuing Operations and Adjusted Net Income from Continuing Operations per Diluted Share herein because they are used by investors for valuation and comparing our financial performance with the performance of other building material companies. We use Adjusted Net Income from Continuing Operations and Adjusted Net Income from Continuing Operations per Diluted Share to monitor and compare the financial performance of our operations.
The following tables reconcile (i) Adjusted Net Income from Continuing Operations to the most directly comparable GAAP financial measure, which is net income and (ii) Adjusted Net Income from Continuing Operations per Diluted Share to the most directly comparable GAAP financial measure, which is net income per diluted share (in thousands, except per share amounts).
Three Months Ended |
||||||||
2017 | 2016 | |||||||
Adjusted Net Income from Continuing Operations Reconciliation | ||||||||
Net income (loss) | $ | 6,880 | $ | (10,027 | ) | |||
Add: Loss from discontinued operations, net of taxes | 122 | 188 | ||||||
Add: Income tax expense | 6,702 | 1,991 | ||||||
Income (loss) from continuing operations before income taxes | 13,704 | (7,848 | ) | |||||
Add: Derivative (gain) loss | (1,856 | ) | 12,780 | |||||
Add: Non-cash stock compensation expense | 1,619 | 1,377 | ||||||
Add: Acquisition-related professional fees | 413 | 747 | ||||||
Add: Officer severance | 584 | - | ||||||
Add: Non-cash loss on revaluation of contingent consideration | 608 | 1,247 | ||||||
Adjusted income from continuing operations before income taxes | 15,072 | 8,303 | ||||||
Less: Normalized income tax expense(1) | 6,029 | 3,321 | ||||||
Adjusted Net Income from Continuing Operations (non-GAAP) | $ | 9,043 | $ | 4,982 |
(1) Assumes a normalized effective tax rate of 40% in both periods. |
Three Months Ended |
||||||||
2017 | 2016 (1) | |||||||
Adjusted Net Income from Continuing Operations per Diluted Share Reconciliation | ||||||||
Net income (loss) per diluted share | $ | 0.42 | $ | (0.68 | ) | |||
Add: Loss from discontinued operations, net of taxes per diluted share | 0.01 | 0.01 | ||||||
Add: Income tax expense per diluted share | 0.40 | 0.14 | ||||||
Income (loss) from continuing operations before income taxes per diluted share | 0.83 | (0.53 | ) | |||||
Add: Impact of derivative (gain) loss | (0.11 | ) | 0.80 | |||||
Add: Impact of non-cash stock compensation expense | 0.10 | 0.09 | ||||||
Add: Impact of acquisition-related professional fees | 0.02 | 0.05 | ||||||
Add: Impact of officer severance | 0.03 | - | ||||||
Add: Impact of non-cash loss on revaluation of contingent consideration | 0.04 | 0.08 | ||||||
Adjusted income from continuing operations before income taxes | 0.91 | 0.52 | ||||||
Less: Normalized income tax expense(2) | 0.36 | 0.21 | ||||||
Adjusted Net Income from Continuing Operations per Diluted Share (non-GAAP) | $ | 0.55 | $ | 0.31 |
(1) Net loss per diluted share for the three months ended |
(2) Assumes a normalized effective tax rate of 40% in both periods. |
Adjusted Free Cash Flow |
We define Adjusted Free Cash Flow as net cash provided by operating activities less capital expenditures, plus proceeds from the sale of property, plant and equipment, plus proceeds from disposals of business units. We consider Adjusted Free Cash Flow to be an important indicator of our ability to service our debt and generate cash for acquisitions and other strategic investments. However, Adjusted Free Cash Flow is not intended to be used as an alternative to any measure of our liquidity in accordance with GAAP. The following table reconciles Adjusted Free Cash Flow to the most directly comparable GAAP financial measure, which is net cash provided by operating activities (in thousands).
Three Months Ended |
||||||||
2017 | 2016 | |||||||
Adjusted Free Cash Flow Reconciliation | ||||||||
Net cash provided by operating activities(1) | $ | 29,544 | $ | 20,040 | ||||
Less: Purchases of property, plant and equipment | (10,718 | ) | (11,220 | ) | ||||
Add: Proceeds from disposals of property, plant and equipment | 485 | 37 | ||||||
Add: Proceeds from the disposal of business units | 294 | 125 | ||||||
Adjusted Free Cash Flow (non-GAAP) | $ | 19,605 | $ | 8,982 |
(1) For the three months ended |
Net Debt |
We define Net Debt as total debt, including current maturities and capital lease obligations, less cash and cash equivalents. We believe that Net Debt is useful to investors as a measure of our financial position. We use Net Debt to monitor and compare our financial position. However, Net Debt is not intended to be used as an alternative to any measure of our financial position in accordance with GAAP. The following table reconciles Net Debt to the most directly comparable GAAP financial measure, which is total debt, including current maturities and capital lease obligations (in thousands).
As of
2017 |
As of
2016 |
|||||
Net Debt Reconciliation | ||||||
Total debt, including current maturities and capital lease obligations | $ | 658,635 | $ | 449,298 | ||
Less: Cash and cash equivalents | 291,824 | 75,774 | ||||
Net Debt (non-GAAP) | $ | 366,811 | $ | 373,524 | ||
Net Debt to Total Adjusted EBITDA |
We define Net Debt to Total Adjusted EBITDA as Net Debt divided by Total Adjusted EBITDA for the applicable last twelve month period. We believe that Net Debt to Total Adjusted EBITDA is useful to investors as a measure of our financial position. We use this measure to monitor and compare our financial position from period to period. However, Net Debt to Total Adjusted EBITDA is not intended to be used as an alternative to any measure of our financial position in accordance with GAAP. The following table presents our calculation of Net Debt to Total Adjusted EBITDA and the most directly comparable GAAP ratio, which is total debt to LTM income from continuing operations (in thousands).
Twelve Month Period
|
|||
Total Adjusted EBITDA Reconciliation | |||
Income from continuing operations | $ | 26,419 | |
Add: Income tax expense | 25,862 | ||
Income from continuing operations before income taxes | 52,281 | ||
Add: Depreciation, depletion and amortization | 59,070 | ||
Add: Interest expense, net | 32,151 | ||
Add: Loss on extinguishment of debt | 12,003 | ||
Add: Derivative loss | 5,302 | ||
Add: Non-cash loss on revaluation of contingent consideration | 4,586 | ||
Add: Non-cash stock compensation expense | 7,341 | ||
Add: Acquisition-related professional fees | 1,916 | ||
Add: Officer severance | 584 | ||
Total Adjusted EBITDA (non-GAAP) | $ | 175,234 | |
Net Debt | $ | 366,811 | |
Total debt to LTM income from continuing operations | 24.93x | ||
Net Debt to LTM Total Adjusted EBITDA as of |
2.09x | ||
Source: USCR-E
Contact:
844-828-4774
IR@us-concrete.com
Source:
News Provided by Acquire Media