U.S. Concrete (USCR) Beats on Earnings, Revenue, Shares Soar
Shares of U.S. Concrete Inc. were trading up +5.42 or +9.93 percent to $60.00 per share in Thursday’s premarket after the company announced earnings and revenue that beat analyst expectations by a wide margin early this morning. U.S. Concrete stock closed at $54.58, up +2.08 or +3.96 percent in Wednesday’s regular trading session.
Founded in 1948, Euless, Texas based U.S. Concrete Inc. is the product of the acquisition of a more than 25 different domestic concrete and building materials companies since 1999.
U.S. Concrete reported adjusted EBITDA of $49.3 million, an increase of +83.3 percent over the same period one year ago. Adjusted income was $31.2 million or $1.97per adjusted diluted share, an increase of +85.8 percent over 2014’s third quarter. Consolidated revenue increased to $295.1 million, an improvement of +49.4 percent over last year. The analyst consensus was for the company to report earnings of $1.07 on revenue of $280.1 million.
Ready mixed concrete revenue rose +50.3 to $264.4 million with the average sale price increasing +12.6 percent to $125.10 per cubic yard. Aggregate products revenue increased +10.6 percent to $19.0 million with aggregate products average sale price rose to $10.56 per ton, an increase of +12.5 percent.
William J. Sandbrook, President and Chief Executive Officer of U.S. Concrete said in this morning’s press release that, “In October, we completed an aggregates-based acquisition of two strategically integrated companies in the U.S. Virgin Islands. This was a major step for our Company and aligns with our long-term expansion plans. With the addition of these companies we gained entry into very defensible markets with strong share positions which are well suited for our unique operating capabilities. With these transactions complete, we now have a sturdy platform to enhance our regional economies of scale as we capitalize on additional expansion opportunities within the Southeast U.S. and Caribbean basin.”
In addition to the two U.S. Virgin Islands acquisitions, U.S. Concrete acquired three strategically positioned aggregate operations in the United States. The three acquisitions will enhance the company’s vertically integrated operations in existing markets, which include the greater New York City metropolitan area, southern Oklahoma and Texas.
U.S. Concrete shares have more than doubled since trading a little over $25 per share in early February. With this morning’s action, the stock is set to open about a point and a half above its previous yearly high of $58.45. As prices for concrete and aggregate materials keep increasing, the company’s bottom line will probably continue improving in the near term.
Other News About USCR
U.S. Concrete Adds Chief Operating Officer
Company hired Ronnie Pruitt from Martin Marietta Materials Inc. as the new COO.
U.S. Concrete Acquires Two Vertically Integrated Construction Material Operations in the U.S. Virgin Islands
Company acquired Heavy Materials LLC and assets of Spartan Concrete Products LLC.
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