U.S. Concrete reported increased revenue, aggregate products revenue and gross profit in the first quarter of 2019.
According to the company, its consolidated revenue increased 1.6 percent to $333.1 million; its aggregate products revenue increased 25.4 percent to $42.9 million; and its aggregate products volume increased 17 percent to 2.5 million tons. In addition, its adjusted gross profit increased 4.8 percent to $64.7 million while its adjusted gross profit margin increased to 19.4 percent.
“While faced with negative weather patterns, which seemingly have become routine, we are pleased to report multiple financial accomplishments, including our 33rd consecutive quarter of year-over-year revenue growth and an improved adjusted gross profit,” says William Sandbrook, chairman and CEO of U.S. Concrete. “We continue to believe these trends, including the solid runway of demand in all of our regions, reflect the strong fundamentals in the markets we serve.”
The company’s aggregate product sales volume also increased 17 percent compared with the first quarter of 2018. This increase was mainly due to U.S. Concrete’s Polaris and West Texas quarries, the company says. In addition, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for this segment increased to $10.4 million in the first quarter of 2019 from $4.7 million in last year’s first quarter.
“A significant driver of the positive momentum in our adjusted gross profit is the significant growth in our higher margin aggregate products segment, once again led by Polaris,” Sandbrook says. “We sold 2.5 million tons of aggregates during the 2019 first quarter, generating more than $10 million of adjusted EBITDA, which is more than double last year’s first quarter.”
Earlier this year, U.S. Concrete also released its 2018 results, which showed record-high aggregate products revenue.
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