Investor Relations
Press Release
U.S. Concrete Announces Its Fourth Quarter and Full Year 2016 Results
- Consolidated revenue increased 20.9% to
$318.8 million - Ready-mixed concrete average sales price improved 5.5% to
$132.25 per cubic yard - Aggregate products average sales price improved 14.8% to
$12.57 per ton - Net loss per diluted share of
$1.01 compared to$0.43 - Loss from continuing operations of
$15.4 million compared to$6.3 million - Adjusted Net Income from Continuing Operations per Diluted Share1 of
$0.82 compared to$0.55 - Total Adjusted EBITDA1 increased 41.1% to
$46.1 million - Generated net cash provided by operating activities of
$23.6 million and Adjusted Free Cash Flow1 of$17.6 million
Full Year 2016 Highlights Compared to Full Year 2015
- Consolidated revenue increased 19.8% to
$1.17 billion - Ready-mixed concrete average sales price improved 5.1% to
$130.35 per cubic yard - Aggregate products average sales price improved 13.6% to
$11.97 per ton - Net income per diluted share of
$0.55 compared to net loss per diluted share of$0.38 - Income from continuing operations of
$9.6 million compared to loss from continuing operations of$5.1 million - Adjusted Net Income from Continuing Operations per Diluted Share1 of
$2.86 compared to$2.57 - Total Adjusted EBITDA1 increased 21.2% to
$159.8 million - Generated net cash provided by operating activities of
$112.1 million and Adjusted Free Cash Flow1 of$77.4 million
1 Adjusted Net Income from Continuing Operations per Diluted Share, Total Adjusted EBITDA, 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.
FOURTH QUARTER 2016 RESULTS COMPARED TO FOURTH QUARTER 2015 RESULTS
Consolidated revenue increased 20.9% to
For the 2016 fourth quarter, income from operations increased
Selling, general and administrative ("SG&A") expenses were
For the 2016 fourth quarter, loss from continuing operations was
For the fourth quarter of 2016, net loss was
FULL YEAR 2016 RESULTS COMPARED TO FULL YEAR 2015 RESULTS
Consolidated revenue for 2016 increased 19.8% to
For 2016, net income was
BALANCE SHEET AND LIQUIDITY
Net cash provided by operating activities in the fourth quarter of 2016 was
At
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 and 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 belief, 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)
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| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||||||||||
| 2016 | 2015(1) | 2016 | 2015(1) | ||||||||||||||
| (Unaudited) | |||||||||||||||||
| Revenue | $ | 318,777 | $ | 263,573 | $ | 1,168,160 | $ | 974,717 | |||||||||
| Cost of goods sold before depreciation, depletion and amortization | 247,887 | 209,737 | 922,338 | 768,439 | |||||||||||||
| Selling, general and administrative expenses | 28,572 | 23,773 | 100,019 | 86,873 | |||||||||||||
| Depreciation, depletion and amortization | 16,057 | 12,159 | 54,852 | 43,570 | |||||||||||||
| Loss on revaluation of contingent consideration, net | 2,900 | 2,319 | 5,225 | 932 | |||||||||||||
| Gain on sale of assets, net | (400 | ) | (473 | ) | (1,416 | ) | (468 | ) | |||||||||
| Income from operations | 23,761 | 16,058 | 87,142 | 75,371 | |||||||||||||
| Interest expense, net | (7,776 | ) | (5,768 | ) | (27,709 | ) | (21,734 | ) | |||||||||
| Derivative loss | (26,368 | ) | (13,615 | ) | (19,938 | ) | (60,016 | ) | |||||||||
| Loss on early extinguishment of debt | -- | -- | (12,003 | ) | -- | ||||||||||||
| Other income, net | 1,825 | 586 | 3,237 | 2,064 | |||||||||||||
| (Loss) income from continuing operations before income taxes | (8,558 | ) | (2,739 | ) | 30,729 | (4,315 | ) | ||||||||||
| Income tax expense | 6,834 | 3,584 | 21,151 | 779 | |||||||||||||
| (Loss) income from continuing operations | (15,392 | ) | (6,323 | ) | 9,578 | (5,094 | ) | ||||||||||
| (Loss) income from discontinued operations, net of taxes | (199 | ) | 71 | (717 | ) | (320 | ) | ||||||||||
| Net (loss) income | $ | (15,591 | ) | $ | (6,252 | ) | $ | 8,861 | $ | (5,414 | ) | ||||||
| Basic (loss) income per share: | |||||||||||||||||
| (Loss) income from continuing operations | $ | (1.00 | ) | $ | (0.44 | ) | $ | 0.63 | $ | (0.36 | ) | ||||||
| (Loss) income from discontinued operations, net of income tax | (0.01 | ) | 0.01 | (0.04 | ) | (0.02 | ) | ||||||||||
| Net (loss) income per share - basic | $ | (1.01 | ) | $ | (0.43 | ) | $ | 0.59 | $ | (0.38 | ) | ||||||
| Diluted (loss) income per share: | |||||||||||||||||
| (Loss) income from continuing operations | $ | (1.00 | ) | $ | (0.44 | ) | $ | 0.59 | $ | (0.36 | ) | ||||||
| (Loss) income from discontinued operations, net of taxes | (0.01 | ) | 0.01 | (0.04 | ) | (0.02 | ) | ||||||||||
| Net (loss) income per share - diluted | $ | (1.01 | ) | $ | (0.43 | ) | $ | 0.55 | $ | (0.38 | ) | ||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic | 15,457 | 14,475 | 15,098 | 14,080 | |||||||||||||
| Diluted | 15,457 | 14,475 | 16,226 | 14,080 | |||||||||||||
(1) Certain reclassifications have been made to conform with the current year presentation.
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| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (in thousands) | ||||||||||
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| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 75,774 | $ | 3,925 | ||||||
| Trade accounts receivable, net | 207,292 | 171,256 | ||||||||
| Inventories | 41,979 | 36,726 | ||||||||
| Prepaid expenses | 5,534 | 4,243 | ||||||||
| Other receivables | 8,691 | 7,765 | ||||||||
| Other current assets | 2,019 | 2,374 | ||||||||
| Total current assets | 341,289 | 226,289 | ||||||||
| Property, plant and equipment, net | 337,412 | 248,123 | ||||||||
| 133,271 | 100,204 | |||||||||
| Intangible assets, net | 130,973 | 95,754 | ||||||||
| Deferred income taxes | -- | 6,026 | ||||||||
| Other assets | 2,457 | 5,301 | ||||||||
| Total assets | $ | 945,402 | $ | 681,697 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 110,694 | $ | 80,419 | ||||||
| Accrued liabilities | 85,243 | 85,854 | ||||||||
| Current maturities of long-term debt | 16,654 | 9,386 | ||||||||
| Derivative liabilities | 57,415 | 67,401 | ||||||||
| Total current liabilities | 270,006 | 243,060 | ||||||||
| Long-term debt, net of current maturities | 432,644 | 266,214 | ||||||||
| Other long-term obligations and deferred credits | 46,267 | 38,416 | ||||||||
| Deferred income taxes | 7,656 | -- | ||||||||
| Total liabilities | 756,573 | 547,690 | ||||||||
| Commitments and contingencies | ||||||||||
| Equity: | ||||||||||
| Preferred stock | -- | -- | ||||||||
| Common stock | 17 | 16 | ||||||||
| Additional paid-in capital | 249,832 | 201,015 | ||||||||
| Accumulated deficit | (39,296 | ) | (48,157 | ) | ||||||
| Treasury stock, at cost | (21,724 | ) | (18,867 | ) | ||||||
| Total stockholders' equity | 188,829 | 134,007 | ||||||||
| Total liabilities and equity | $ | 945,402 | $ | 681,697 | ||||||
(1) Certain reclassifications have been made to conform with the current year presentation.
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| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| (in thousands) | ||||||||||||
|
Twelve Months Ended |
||||||||||||
| 2016 | 2015 | |||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net income (loss) | $ | 8,861 | $ | (5,414 | ) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
| Depreciation, depletion and amortization | 54,852 | 43,570 | ||||||||||
| Debt issuance cost amortization | 1,845 | 1,795 | ||||||||||
| Loss on extinguishment of debt | 12,003 | -- | ||||||||||
| Amortization of discount on long-term incentive plan and other accrued interest | 593 | 427 | ||||||||||
| Net loss on revaluation of contingent consideration | 5,225 | 932 | ||||||||||
| Net loss on derivative | 19,938 | 60,016 | ||||||||||
| Net gain on sale of assets | (1,416 | ) | (275 | ) | ||||||||
| Excess tax benefits from stock-based compensation | (3,787 | ) | -- | |||||||||
| Deferred income taxes | 16,786 | (12,579 | ) | |||||||||
| Provision for doubtful accounts and customer disputes | 2,966 | 4,198 | ||||||||||
| Stock-based compensation | 7,099 | 5,824 | ||||||||||
| Changes in assets and liabilities, excluding effects of acquisitions: | ||||||||||||
| Accounts receivable | (25,588 | ) | (37,766 | ) | ||||||||
| Inventories | (3,749 | ) | (383 | ) | ||||||||
| Prepaid expenses and other current assets | (2,342 | ) | (886 | ) | ||||||||
| Other assets and liabilities, net | 2,171 | (1,341 | ) | |||||||||
| Accounts payable and accrued liabilities | 16,667 | 46,143 | ||||||||||
| Net cash provided by operating activities | 112,124 | 104,261 | ||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Purchases of property, plant and equipment | (40,425 | ) | (24,977 | ) | ||||||||
| Payments for acquisitions, net of cash acquired | (127,927 | ) | (135,347 | ) | ||||||||
| Proceeds from disposals of property, plant and equipment | 2,744 | 1,312 | ||||||||||
| Proceeds from disposal of acquired businesses | 1,565 | 1,177 | ||||||||||
| Insurance proceeds from property loss claim | 1,348 | -- | ||||||||||
| Net cash used in investing activities | (162,695 | ) | (157,835 | ) | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Proceeds from revolver borrowings | 128,904 | 206,809 | ||||||||||
| Repayments of revolver borrowings | (173,904 | ) | (161,809 | ) | ||||||||
| Proceeds from issuance of debt | 400,000 | -- | ||||||||||
| Repayments of debt | (200,000 | ) | (117 | ) | ||||||||
| Premium paid on early retirement of debt | (8,500 | ) | -- | |||||||||
| Proceeds from exercise of stock options and warrants | 348 | 546 | ||||||||||
| Payments of other long-term obligations | (4,679 | ) | (2,298 | ) | ||||||||
| Payments for other financing | (13,433 | ) | (8,611 | ) | ||||||||
| Excess tax benefits from stock-based compensation | 3,787 | -- | ||||||||||
| Debt issuance costs | (7,824 | ) | (893 | ) | ||||||||
| Payments for share repurchases | -- | -- | ||||||||||
| Other treasury share purchases | (2,857 | ) | (6,330 | ) | ||||||||
| Other proceeds | 578 | -- | ||||||||||
| Net cash provided by financing activities | 122,420 | 27,297 | ||||||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 71,849 | (26,277 | ) | |||||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 3,925 | 30,202 | ||||||||||
| 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):
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Three Months Ended |
Twelve Months Ended |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenue: | ||||||||||||||||
| Ready-mixed concrete | ||||||||||||||||
| Sales to external customers | $ | 290,512 | $ | 238,142 | $ | 1,060,991 | $ | 876,633 | ||||||||
| Aggregate products | ||||||||||||||||
| Sales to external customers | 10,909 | 9,128 | 41,665 | 34,191 | ||||||||||||
| Intersegment sales | 9,028 | 7,812 | 34,669 | 26,248 | ||||||||||||
| Total aggregate products | 19,937 | 16,940 | 76,334 | 60,439 | ||||||||||||
| Total reportable segment revenue | 310,449 | 255,082 | 1,137,325 | 937,072 | ||||||||||||
| Other products and eliminations | 8,328 | 8,491 | 30,835 | 37,645 | ||||||||||||
| Total revenue | $ | 318,777 | $ | 263,573 | $ | 1,168,160 | $ | 974,717 | ||||||||
| Reportable Segment Adjusted EBITDA | ||||||||||||||||
| Ready-mixed concrete Adjusted EBITDA | $ | 45,725 | $ | 31,678 | $ | 157,534 | $ | 131,940 | ||||||||
| Aggregate products Adjusted EBITDA | $ | 6,651 | $ | 4,624 | $ | 21,731 | $ | 14,996 | ||||||||
| Three Months Ended | Year-Over- | Twelve Months Ended | Year-Over- | |||||||||||||||
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Year % |
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Year % | |||||||||||||||
| 2016 | 2015 | Change | 2016 | 2015 | Change | |||||||||||||
| Ready-Mixed Concrete | ||||||||||||||||||
| Average sales price per cubic yard | $ | 132.25 | $ | 125.41 | 5.5 | % | $ | 130.35 | $ | 123.98 | 5.1 | % | ||||||
| Sales volume in cubic yards | 2,193 | 1,893 | 15.8 | % | 8,122 | 7,038 | 15.4 | % | ||||||||||
| Aggregate Products | ||||||||||||||||||
| Average sales price per ton | $ | 12.57 | $ | 10.95 | 14.8 | % | $ | 11.97 | $ | 10.54 | 13.6 | % | ||||||
| Sales volume in tons | 1,358 | 1,380 | (1.6 | )% | 5,563 | 4,919 | 13.1 | % | ||||||||||
| NON-GAAP FINANCIAL MEASURES |
| (Unaudited) |
| Total Adjusted EBITDA and Total Adjusted EBITDA Margin |
Total Adjusted EBITDA and Total Adjusted EBITDA Margin are non-GAAP financial measures. We define Total Adjusted EBITDA as our income (loss) from continuing operations plus income tax expense (benefit), depreciation, depletion and amortization, net interest expense, loss on extinguishment of debt, 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 |
Twelve Months Ended |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| Total Adjusted EBITDA Reconciliation | ||||||||||||||||||
| (Loss) income from continuing operations | $ | (15,392 | ) | $ | (6,323 | ) | $ | 9,578 | $ | (5,094 | ) | |||||||
| Add: Income tax expense | 6,834 | 3,584 | 21,151 | 779 | ||||||||||||||
| (Loss) income from continuing operations before income taxes | (8,558 | ) | (2,739 | ) | 30,729 | (4,315 | ) | |||||||||||
| Add: Depreciation, depletion and amortization | 16,057 | 12,159 | 54,852 | 43,570 | ||||||||||||||
| Add: Interest expense, net | 7,776 | 5,768 | 27,709 | 21,734 | ||||||||||||||
| Add: Loss on extinguishment of debt | -- | -- | 12,003 | -- | ||||||||||||||
| Add: Derivative loss | 26,368 | 13,615 | 19,938 | 60,016 | ||||||||||||||
| Add: Non-cash loss on revaluation of contingent consideration | 2,900 | 2,319 | 5,225 | 932 | ||||||||||||||
| Add: Non-cash stock compensation expense | 1,421 | 830 | 7,099 | 5,824 | ||||||||||||||
| Add: Acquisition-related professional fees | 121 | 703 | 2,250 | 3,760 | ||||||||||||||
| Add: Officer severance | -- | -- | -- | 357 | ||||||||||||||
| Total Adjusted EBITDA | $ | 46,085 | $ | 32,655 | $ | 159,805 | $ | 131,878 | ||||||||||
| (Loss) income from continuing operations margin | (4.8 | )% | (2.4 | )% | 0.8 | % | (0.5 | )% | ||||||||||
| Total Adjusted EBITDA Margin | 14.5 | % | 12.4 | % | 13.7 | % | 13.5 | % | ||||||||||
| Adjusted Gross Profit and Adjusted Gross Margin |
Adjusted Gross Profit and Adjusted Gross Margin are non-GAAP financial measures. We define Adjusted Gross Profit as our income from operations, plus depreciation, depletion and amortization, selling, general and administrative expenses, (gain) loss 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. Adjusted Gross Profit and Adjusted Gross Margin are not intended to be used as an alternative to any measure of our performance in accordance with GAAP. The following table reconciles Adjusted Gross Profit to the most directly comparable GAAP financial measure, which is income from operations (in thousands).
| Three Months Ended | Twelve Months Ended | |||||||||||||||
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Adjusted Gross Profit Reconciliation | ||||||||||||||||
| Income from operations | $ | 23,761 | $ | 16,058 | $ | 87,142 | $ | 75,371 | ||||||||
| Add: Depreciation, depletion and amortization | 16,057 | 12,159 | 54,852 | 43,570 | ||||||||||||
| Add: Selling, general and administrative expenses | 28,572 | 23,773 | 100,019 | 86,873 | ||||||||||||
| Add: Loss on revaluation of contingent consideration | 2,900 | 2,319 | 5,225 | 932 | ||||||||||||
| Add: Gain on sale of assets | (400 | ) | (473 | ) | (1,416 | ) | (468 | ) | ||||||||
| Adjusted Gross Profit | $ | 70,890 | $ | 53,836 | $ | 245,822 | $ | 206,278 | ||||||||
| Income from operations margin | 7.5 | % | 6.1 | % | 7.5 | % | 7.7 | % | ||||||||
| Adjusted Gross Margin | 22.2 | % | 20.4 | % | 21.0 | % | 21.2 | % | ||||||||
| Adjusted Net Income from Continuing Operations and Adjusted Net Income from Continuing Operations per Diluted Share |
Adjusted Net Income from Continuing Operations and Adjusted Net Income from Continuing Operations per Diluted Share are non-GAAP financial measures. We define Adjusted Net Income from Continuing Operations as net (loss) income, plus loss (income) from discontinued operations, net of taxes, income tax expense (benefit), derivative (gain) loss, loss on extinguishment of debt, non-cash stock compensation expense, acquisition-related professional fees, officer severance and non-cash (gain) loss 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. Adjusted Net Income from Continuing Operations and Adjusted Net Income from Continuing Operations per Diluted Share are not intended to be used as an alternative to any measure of our performance in accordance with GAAP.
The following tables reconcile (i) Adjusted Net Income from Continuing Operations to the most directly comparable GAAP financial measure, which is net (loss) income and (ii) Adjusted Net Income from Continuing Operations per Diluted Share to the most directly comparable GAAP financial measure, which is net (loss) income per diluted share (in thousands, except per share amounts).
|
Three Months Ended |
Twelve Months Ended |
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Adjusted Net Income from Continuing Operations Reconciliation | |||||||||||||||
| Net (loss) income | $ | (15,591 | ) | $ | (6,252 | ) | $ | 8,861 | $ | (5,414 | ) | ||||
| Add: Loss (income) from discontinued operations, net of taxes | 199 | (71 | ) | 717 | 320 | ||||||||||
| Add: Income tax expense | 6,834 | 3,584 | 21,151 | 779 | |||||||||||
| (Loss) income from continuing operations before income taxes | (8,558 | ) | (2,739 | ) | 30,729 | (4,315 | ) | ||||||||
| Add: Derivative loss | 26,368 | 13,615 | 19,938 | 60,016 | |||||||||||
| Add: Loss on extinguishment of debt | -- | -- | 12,003 | -- | |||||||||||
| Add: Non-cash stock compensation expense | 1,421 | 830 | 7,099 | 5,824 | |||||||||||
| Add: Acquisition-related professional fees | 121 | 703 | 2,250 | 3,760 | |||||||||||
| Add: Officer severance | -- | -- | -- | 357 | |||||||||||
| Add: Non-cash loss on revaluation of contingent consideration | 2,900 | 2,319 | 5,225 | 932 | |||||||||||
| Adjusted income from continuing operations before income taxes | 22,252 | 14,728 | 77,244 | 66,574 | |||||||||||
| Normalized income tax expense(1) | 8,901 | 5,891 | 30,898 | 26,630 | |||||||||||
| Adjusted Net Income from Continuing Operations | $ | 13,351 | $ | 8,837 | $ | 46,346 | $ | 39,944 | |||||||
(1) Assumes a normalized effective tax rate of 40% in all periods.
|
Three Months Ended |
Twelve Months Ended |
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Adjusted Net Income from Continuing Operations per Diluted Share Reconciliation | |||||||||||||||
| Net (loss) income per diluted share(1) | $ | (1.01 | ) | $ | (0.43 | ) | $ | 0.55 | $ | (0.38 | ) | ||||
| Add: Loss (income) from discontinued operations, net of taxes per diluted share | 0.01 | (0.01 | ) | 0.04 | 0.02 | ||||||||||
| Add: Income tax expense per diluted share | 0.45 | 0.25 | 1.30 | 0.05 | |||||||||||
| (Loss) income from continuing operations before income taxes per diluted share | (0.55 | ) | (0.19 | ) | 1.89 | (0.31 | ) | ||||||||
| Add: Impact of derivative loss | 1.61 | 0.85 | 1.23 | 3.86 | |||||||||||
| Add: Impact of loss on extinguishment of debt | -- | -- | 0.74 | -- | |||||||||||
| Add: Impact of non-cash stock compensation expense | 0.09 | 0.05 | 0.44 | 0.37 | |||||||||||
| Add: Impact of acquisition-related professional fees | 0.01 | 0.04 | 0.14 | 0.24 | |||||||||||
| Add: Impact of officer severance | -- | -- | -- | 0.02 | |||||||||||
| Add: Impact of non-cash loss on revaluation of contingent consideration | 0.18 | 0.14 | 0.32 | 0.06 | |||||||||||
| Adjusted income from continuing operations before income taxes per diluted share | 1.36 | 0.92 | 4.76 | 4.28 | |||||||||||
| Less: Normalized income tax expense(2) | 0.54 | 0.37 | 1.90 | 1.71 | |||||||||||
| Adjusted Net Income from Continuing Operations per Diluted Share | $ | 0.82 | $ | 0.55 | $ | 2.86 | $ | 2.57 | |||||||
(1) Net loss per diluted share for the three months ended
(2) Assumes a normalized effective tax rate of 40% in all periods.
| Adjusted Free Cash Flow |
Adjusted Free Cash Flow is a non-GAAP financial measure. 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, proceeds from disposals of acquired businesses and insurance proceeds from property loss claim. 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 |
Twelve Months Ended |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Adjusted Free Cash Flow Reconciliation | ||||||||||||||||
| Net cash provided by operating activities | $ | 23,619 | $ | 47,535 | $ | 112,124 | $ | 104,261 | ||||||||
| Less: Capital expenditures | (9,384 | ) | (12,214 | ) | (40,425 | ) | (24,977 | ) | ||||||||
| Plus: Proceeds from the sale of property, plant and equipment | 824 | 649 | 2,744 | 1,312 | ||||||||||||
| Plus: Proceeds from the disposal of acquired businesses | 1,190 | 125 | 1,565 | 1,177 | ||||||||||||
| Plus: Insurance proceeds from property loss claim | 1,348 | -- | 1,348 | -- | ||||||||||||
| Adjusted Free Cash Flow | $ | 17,597 | $ | 36,095 | $ | 77,356 | $ | 81,773 | ||||||||
| Net Debt |
Net Debt is a non-GAAP financial measure. 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 from period to period. 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 | As of | |||||
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|
|
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| Net Debt Reconciliation | ||||||
| Total debt, including current maturities and capital lease obligations | $ | 449,298 | $ | 275,600 | ||
| Less: cash and cash equivalents | 75,774 | 3,925 | ||||
| Net Debt | $ | 373,524 | $ | 271,675 | ||
Net Debt to Total Adjusted EBITDA
Net Debt to Total Adjusted EBITDA is a non-GAAP financial measure. 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 income from continuing operations (in thousands). For an explanation and reconciliation of Total Adjusted EBITDA, see page 10 of this release.
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Twelve Month Period |
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| Total Adjusted EBITDA | $ | 159,805 | |
| Net Debt | $ | 373,524 | |
| Total debt to income from continuing operations | 46.91x | ||
| Net Debt to Total Adjusted EBITDA as of |
2.34x | ||
Source: USCR-E
Contact:
844-828-4774
IR@us-concrete.com
Source:
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