U.S. Concrete reports results for fourth quarter, full year

Its focus on operational, technology, and financial improvement initiatives led to strong results in 2019 for U.S. Concrete, Inc. “Our record-high EBITDA in the second half of 2019 highlights the traction that our profit improvement initiatives are gaining within our operations,” said William J. Sandbrook, chairman and CEO, in a press release.

“While our fourth quarter of 2019 results were negatively impacted by a significant increase in our self-insurance reserves, cost claims, and premiums year-over-year,” he added, “we experienced good growth in our aggregate products segment and are seeing positive momentum in ready-mixed concrete pricing to further increase profitability.”

While consolidated revenue in the fourth quarter was down 0.2 percent to $369.2 million, aggregate product revenue increased 7.5 percent to $49.9 million. Aggregate volume increased 7.1 percent to 2.9 million tons. During the quarter, the average selling price increased from $11.35 to $11.93 per ton.

For the full year, consolidated revenue fell from $1.5 billion in 2018 to $1.48 billion. Aggregate product revenues increased 6.9 percent to $195 million, and aggregate volume increased 2.5 percent to 11.4 million tons.

The company’s outlook for 2020, which incorporates its acquisition of Coram Materials, calls for consolidated revenue of $1.5 billion to $1.6 billion and total adjusted EBITDA of $195 million to $215 million.

U.S. Concrete acquires New York-based Coram Materials for $142 million

U.S. Concrete, Inc. completed the acquisition of Coram Materials Corp. for a purchase price of $142 million and significantly expanded its East Coast aggregates reserves. “The acquisition should produce a margin profile in excess of the company’s average within the first full year of ownership,” said William J. Sandbrook, chairman and CEO, in a press release. “Post synergies, which we expect to achieve within two years, the deal represents a multiple of approximately seven times EBITDA.”

The acquisition includes significant, premium sand reserves that will not only supply U.S. Concrete’s ready-mix operation in New York City, but also allow for external sales to third-party customers. “Coram’s 50 million tons of reserves, located in the quickly depleting Long Island sand market, increases the vertical integration of our New York operations, strengthens our competitive position, and advances the continuation of our strategy of expanding into higher margin aggregates businesses,” Sandbrook noted. “Following our successful Polaris acquisition, we continue to seek out accretive opportunities of coupling the pull through capabilities of our large regional footprints of ready-mixed concrete operations with attractive aggregate assets.”

Bill Sandbrook to retire as CEO of U.S. Concrete

U.S. Concrete, Inc.  announced that William J. Sandbrook notified the company’s board of directors of his decision to retire as CEO effective April 3, 2020. Sandbrook will serve as the company’s chairman of the board until the company’s annual meeting of stockholders in May 2020, when he will stand for re-election as a director at the annual meeting.

To ensure an orderly transition of his duties, Sandbrook will provide consulting services to the company pursuant to a one-year consulting agreement, which may be extended by mutual agreement.

U.S. Concrete also announced that Ronnie Pruitt, the company’s president and chief operating officer, has been named chief executive officer and president effective as of April 3, 2020.

“After 17 years in the military and 28 years in the heavy construction materials industry and in conjunction with a robust succession plan, I believe it is an opportune time for me to turn over the CEO duties to Ronnie,” said U.S. Concrete Chairman and CEO, William J. Sandbrook, in a press release. “Ronnie is well prepared to lead the company into our next phase of growth through his many years of industry experience. I am committed to working with him and the company as a strategic advisor and board member to ensure a smooth transition and continuation of our enhanced vertical integration strategy. I want to thank the board of directors for their tremendous support, insight, and encouragement over the past nine years. Together with a fantastic group of leaders and employees, we have dramatically transformed the company in the eyes of our customers, industry peers, and the investor community at large. I am humbled to have been part of this journey.” 

Sandbrook joined U.S. Concrete in August 2011 as president and chief executive officer.  He has served as a member of the board of directors since he joined the company and served as the company’s chairman since May 2018. 

“On behalf of the Board of Directors, I want to thank Bill for his significant contributions to and leadership of U.S. Concrete for the last nine years.  Under his leadership, the company evolved from a predominantly ready-mixed focused company with limited geographic footprint to a much larger company with a focus on aggregates and vertically integrated ready-mixed operations with meaningful footprints in major metropolitan areas in the United States and a large aggregates quarry in Canada servicing our West Coast operations,” said Michael D. Lundin, U.S. Concrete’s lead director. “The company’s culture is strong and reflects Bill’s pursuit of excellence and passion for the business. Bill has developed an outstanding senior leadership team to support the company and Ronnie in his new role as chief executive officer, and we are excited about the future of the company going forward.”

“I want to express my gratitude to Bill who is responsible for bringing me to U.S. Concrete as well as preparing me to lead this company during our next phase of growth and improvement,” Pruitt said. “I also want to thank the hard-working men and women of U.S. Concrete for believing in the company and working hard to deliver, manufacture, and provide quality construction materials.  I am passionate about this company, the strength of our existing assets and our ability to serve the markets we are currently in, as well as those we plan to grow in the future.  I truly look forward to this opportunity and will always appreciate the foundation that Bill built.”