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U.S. Concrete Inc. reports operating results (10-Q)

May, 14 2012

U.S. Concrete Inc. (RMIX) filed Quarterly Report for the period ended 2012-03-31.

U.S. Concrete Inc. has a market cap of $191.16 million; its shares were traded at around $0 .

This is the annual revenues and earnings per share of RMIX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of RMIX.

Highlight of Business Operations:
Since the middle of 2006, the United States building materials construction market has been challenging. The construction industry, particularly the ready-mixed concrete industry, has been characterized by significant overcapacity and fierce competitive activity. For the three months ended March 31, 2012, our ready-mix concrete sales volume increased 39.7% to 1,014,000 cubic yards from 726,000 cubic yards during the first quarter of 2011. This is partially attributable to more favorable weather conditions during the first quarter of 2012 compared to unfavorable weather conditions during the first quarter of 2011. We also experienced a 6.4% increase in consolidated average ready-mix sales prices during the first quarter of 2012 and have experienced increases in these prices on a consolidated basis over the last four consecutive fiscal quarters. We saw increases in our ready-mix concrete sales volume and our average ready-mix sales prices in all of our major markets during the first quarter of 2012 when compared to the first quarter of 2011. As a result of this higher sales volume and higher ready-mix sales prices, we experienced increases in our revenue period-over-period. The higher volumes have allowed us to spread our fixed costs over more cubic yards and we have experienced improvement in our driver productivity during the first quarter of 2012 when compared to the same period of 2011. However, we have also experienced higher fuel and aggregate costs which have partially offset these improvements. While our average sales prices have improved, the recessionary conditions affecting our industry continue to put a strain on sales prices and our operating results. As a result of these conditions, we continue to closely monitor our operating costs and capital expenditures.

Under the Credit Agreement, our capital expenditures may not exceed 7.0% of our consolidated annual revenue for the trailing twelve-month period ending on the last day of each fiscal quarter thereafter. Our capital expenditures were $5.1 million for the trailing twelve-month period ended March 31, 2012, which was below the $37.2 million representing 7% of our consolidated annual revenue for the same period. The Revolving Facility requires us to comply with certain other customary affirmative and negative covenants, and contains customary events of default.

Ready-mixed concrete and concrete-related products. Revenue from our ready-mixed concrete and concrete-related products segment increased $33.8 million, or 43.3%, to $111.9 million for the three months ended March 31, 2012, from $78.1 million in the corresponding period of 2011. Our ready-mixed sales volumes for the first quarter of 2012 were approximately 1,014,000 cubic yards, up 39.7% from the approximately 726,000 cubic yards of ready-mixed concrete we sold in the first quarter of 2011. Some of this volume increase was due to better than average weather in our markets during the first quarter of 2012 compared to worse than average weather during the first quarter of 2011. We also experienced an approximate 6.4% increase in the ready-mix average sales price per cubic yard during the first quarter of 2012, as compared to the first quarter of 2011. Our volume and average sales prices were higher in all of our major markets.

Ready-mixed concrete and concrete-related products. Cost of goods sold before depreciation, depletion and amortization for our ready-mixed concrete and concrete-related products segment increased $23.6 million, or 32.9%, to $95.3 million for the three months ended March 31, 2012 from $71.7 million for the three months ended March 31, 2011. This increase was primarily due to a 39.7% increase in sales volumes and higher fuel costs during the three months ended March 31, 2012 partially offset by fixed costs being spread over higher volumes and greater efficiencies achieved. As a percentage of ready-mixed concrete and concrete-related products revenue, cost of goods sold before depreciation, depletion and amortization was 85.2% for the three months ended March 31, 2012, as compared to 91.9% for the corresponding period of 2011. The decrease in this percentage was primarily due to fixed costs being spread over higher volumes and greater efficiencies achieved in driver productivity.

Precast concrete products. Cost of goods sold before depreciation, depletion and amortization for our precast concrete products segment increased $2.4 million, or 21.7%, to $13.5 million for the three months ended March 31, 2012 from $11.1 million for the corresponding period of 2011. As a percentage of precast concrete products revenue, cost of goods sold before depreciation, depletion and amortization for precast concrete products was 90.1% for the three months ended March 31, 2012 compared to 92.7% during the three months ended March 31, 2011. This percentage decreased primarily due to increased plant efficiency, which was partially offset by lower margin projects in our Mid-Atlantic region.

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