US Concrete (USCR) Tops Q1 EPS by 22c

US Concrete (NASDAQ: USCR) reported Q1 EPS of ($0.04), $0.22 better than the analyst estimate of ($0.26). Revenue for the quarter came in at $334.4 million versus the consensus estimate of $334 million.

FIRST QUARTER 2020 RESULTS COMPARED TO FIRST QUARTER 2019(1)

• Consolidated revenue increased 0.4% to $334.4 million
• Ready-mixed concrete revenue increased 0.6% to $292.2 million
• Aggregate products revenue increased 1.6% to $43.6 million
• Aggregate products sales volume increased 5.4% to 2.6 million tons
• Net loss was $2.8 million compared to $2.6 million
• Total Adjusted EBITDA(2) was $34.2 million compared to $34.5 million
• Net cash provided by operating activities more than doubled to $44.0 million
• Adjusted Free Cash Flow(2) more than doubled to $36.9 million
• Available liquidity of $152.6 million as of March 31, 2020, which does not include the additional $180 million of available liquidity from the delayed draw term loan credit facility entered into on April 17, 2020

Ronnie Pruitt, President and Chief Executive Officer of U.S. Concrete, Inc. highlighted, "We are very pleased with our financial results for the first quarter, which we accomplished in spite of significant rainfall in Texas and the initial impacts of COVID-19. Since early March, we have been focused non-stop on increased efforts to evaluate all areas of our business, both financially and operationally, to further drive process improvements and maximize financial flexibility. Our operations have been generally deemed to be essential, and we remain operational in each of our regions."

Mr. Pruitt continued, "Our Coram Materials acquisition in February enhanced our vertical integrated position in the New York market. While our production volumes at Coram have decreased due to the COVID-19 related slowdown in New York City, we are starting to experience improved production volumes in recent days. We are pleased with the business and our ability to integrate their operations, which generated $1.7 million of Adjusted EBITDA during the quarter post-acquisition.

"We ended the quarter with $153 million in cash and available borrowing capacity under our asset-based credit facility. Having financial security to proactively manage our business while we navigate through these unprecedented times is critical. U.S. Concrete has a strong liquidity position with no near-term debt maturities and was enhanced by the recent addition of our new $180 million delayed draw term loan entered into in April."

Mr. Pruitt concluded, "Due to the uncertainty surrounding the underlying impact of the operating restrictions resulting from the COVID-19 pandemic, we have elected to withdraw our previously communicated 2020 financial guidance. Even though certain of our projects in New York and San Francisco have been delayed due to the definition of 'essential construction work' in those local markets, the majority of our markets continue to see solid demand. We have taken swift action throughout the business to realign our cost structure with our operating volumes and will continue to reassess our costs in light of evolving market conditions. We believe we are well positioned to weather this storm and capitalize on the opportunities that will present themselves as the economy rebounds."

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

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