US Concrete (USCR) Misses Q4 EPS by 14c, Revenues Miss; Offers FY19 EPS Mid-Point Guidance Below Consensus

US Concrete (NASDAQ: USCR) reported Q4 EPS of $0.43, $0.14 worse than the analyst estimate of $0.57. Revenue for the quarter came in at $370.1 million versus the consensus estimate of $376.95 million.

• Consolidated revenue increased 8.4% to $370.1 million
• Ready-mixed concrete revenue increased 5.6% to $321.0 million
• Ready-mixed concrete volume grew by 2.6%
• Aggregate products revenue increased 59.5% to $46.4 million
• Aggregate products volume increased 41.0% to 2.7 million tons
• Polaris Materials contributed revenue of $24.3 million and volume of 1.3 million tons
• Income from continuing operations was $3.1 million, an increase of $6.0 million
• Total Adjusted EBITDA2 increased 6.0% to $46.2 million
• Net cash provided by operating activities increased $22.0 million to $32.6 million
• Adjusted Free Cash Flow2 increased $24.4 million to $27.5 million

William J. Sandbrook, Chairman, President and Chief Executive Officer of U.S. Concrete, Inc. stated, "With the backdrop of an extremely weather challenged operating environment, we are pleased to report record revenue and record Adjusted EBITDA for the full year 2018. Our full year results include record highs in aggregate products and ready-mixed concrete volumes and revenues. This growth was aided by contributions from our recent acquisitions, most notably Polaris Materials Corporation. As we have indicated, Polaris continues to provide the performance we expected, although on a much more accelerated pace than we originally expected, and is contributing meaningfully to the increases in our aggregates segment. As a result, our aggregates segment is now becoming a more significant part of our results. Our continued growth is a testament to our strategy where we build defensible, integrated positions in major metropolitan markets, leading to value-enhancing franchises that are virtually impossible to replicate.

"Despite what can be characterized as a disappointing year because of the weather-related disruptions, there are many positives to note. Our 2018 fourth quarter was our 32nd consecutive quarter of year-over-year increased revenue. Additionally, we delivered an outstanding cash performance through our consistent focus on operations and working capital management, with net cash provided by operating activities exceeding $120 million for 2018."

Mr. Sandbrook concluded, "Our bullishness on the positive economic outlook in 2019 is only tempered by the uncertainties of the past two years of disruptive long-term weather patterns. All segments of the construction markets in our regions are vibrant and there is a distinct possibility of acceleration in publicly-funded infrastructure projects. Our optimism is supported by our backlog of 7.8 million cubic yards of concrete that we entered 2019 with, which represents almost ten months of production of future work."

GUIDANCE:

US Concrete sees FY2019 revenue of $1.51-1.65 billion, versus the consensus of $1.64 billion.

For earnings history and earnings-related data on US Concrete (USCR) click here.

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