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North / South America
RMIX wearing concrete shoes
Mar, 11 2010
U.S. Concrete Inc. today announced 4th quarter and year end 2009 financial results. The
company was able to shrink their net losses; however, RMIX is still in
serious financial trouble.
Financial Highlights:
- Revenues in both the 4th quarter and year end were down from 2008; 30.9% and 29.1% respectively
- Net debt of $292.3M
- Cash and cash equivalents of $4.2M
RMIX faced shrinking sales in 2009 due to the tough economic environment, intense pricing pressure and lack of demand. Nonetheless, this company still does over $535M in revenue for the year, seems a little high for a company trading at $0.43 a share.
The company’s real problem is not the economy or constriction that the industry faced in 2009, but it’s extremely high levels of debt. When your own CFO is making comments like, "Absent a successful restructuring, there is substantial doubt about our ability to continue to operate as a going concern," investors should be scared.
It seems almost sad to think a once prominent, American business which still generates over half a billion in revenue a year has fallen into such severe debt.
U.S. Concrete decided they were not going to answer any questions during the conference call. It will be interesting to see if the company will make it through 2010 or if they opt to move back into the private sector. One thing is certain; the outlook for these guys isn’t so concrete.
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