EULESS, Texas, May 6, 2021
/PRNewswire/ -- U.S. Concrete, Inc. (NASDAQ: USCR), a leading
supplier of aggregates and ready-mixed concrete in active
construction markets across the country, today announced results
for the quarter ended March 31, 2021.
FIRST QUARTER 2021 HIGHLIGHTS1
- Consolidated revenue was $285.7
million
- Aggregate products revenue increased 2.1% to $44.5 million, an all-time first quarter
high
- Aggregate products average selling price per ton increased 8.9%
to $13.32, an all-time first quarter
high
- Aggregate products adjusted EBITDA was $12.5 million, an all-time first quarter high and
a 10.6% increase compared to the prior year first quarter
- Aggregate products adjusted EBITDA margin increased 220 basis
points to 28.1%, an all-time first quarter high
- Net loss was $4.8 million
- Total Adjusted EBITDA2 was $28.2 million
- Net loss margin was 1.7% and Total Adjusted EBITDA
Margin2 was 9.9%
- Invested $28.7 million to
purchase fee simple property and the underlying royalty agreement
associated with the Orca Quarry on Vancouver Island, British Columbia, Canada ("Orca"), improving
aggregate products profitability
(1)
|
Certain
computations within this press release may reflect rounding
adjustments.
|
(2)
|
Total Adjusted
EBITDA and Total Adjusted EBITDA Margin are non-GAAP financial
measures. Please refer to the reconciliations and other
information at the end of this press release.
|
Ronnie Pruitt, President and
Chief Executive Officer of U.S. Concrete, Inc. stated, "Despite the
challenges that we faced with significant winter weather during the
first quarter, we are pleased with the progress we have made on our
operational efficiencies and cost containment efforts. We are
seeing an increase in bidding levels and project starts, which
continue to point to a stronger second half of 2021. We
are optimistic about the business outlook, as we see improved
demand for our products with strong residential activity,
diversified commercial needs and resilient infrastructure projects,
which should be enhanced by a national infrastructure bill."
OPERATING RESULTS
AGGREGATE PRODUCTS SEGMENT
|
|
Three Months
Ended
March 31,
|
($ in millions
except selling prices)
|
|
2021
|
|
2020
|
Sales to external
customers
|
|
$
|
22.6
|
|
|
$
|
21.1
|
|
Freight revenue on
sales to external customers
|
|
9.4
|
|
|
10.0
|
|
Intersegment
sales
|
|
12.5
|
|
|
12.5
|
|
Total aggregate
products revenue
|
|
$
|
44.5
|
|
|
$
|
43.6
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
12.5
|
|
|
$
|
11.3
|
|
|
|
|
|
|
Average selling price
("ASP") per ton(1)
|
|
$
|
13.32
|
|
|
$
|
12.23
|
|
Sales volume in
thousand tons
|
|
2,586
|
|
|
2,632
|
|
|
|
(1)
|
The Company's
calculation of aggregate products segment ASP excludes freight and
certain other ancillary revenue. The Company's definition and
calculation of ASP may differ from other companies in the
construction materials industry.
|
Aggregate products segment revenue increased $0.9 million in the first quarter of 2021 to an
all-time first quarter high of $44.5
million, resulting from an 8.9% increase in average selling
price related to the mix of products sold compared to the first
quarter of 2020, the effect of which more than offset the 1.7%
decrease in sales volume. Aggregate products adjusted EBITDA
of $12.5 million in the first quarter
of 2021 increased 10.6% from the first quarter of 2020, primarily
related to the impact of cost-saving measures initiated in 2020 and
the full quarter impact of Coram Materials, which was acquired in
February 2020.
READY-MIXED CONCRETE SEGMENT
|
|
Three Months
Ended
March 31,
|
($ in millions
except selling prices)
|
|
2021
|
|
2020
|
Revenue
|
|
$
|
241.5
|
|
|
$
|
292.2
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
24.9
|
|
|
$
|
31.7
|
|
|
|
|
|
|
ASP per cubic
yard
|
|
$
|
141.49
|
|
|
$
|
144.30
|
|
Sales volume in
thousand cubic yards
|
|
1,704
|
|
|
2,022
|
|
Revenue from the ready-mixed concrete segment for the first
quarter of 2021 was $241.5 million, a
decrease of $50.7 million, or 17.4%,
compared to the prior year first quarter. The revenue decline was
generally consistent with what the Company has experienced since
the onset of the coronavirus pandemic, but was further impacted by
inclement weather during the first quarter of 2021. The
decline resulted from lower volumes in the Company's coastal
regions as a result of weather delays and the regional effects of
the pandemic, including certain construction project delays.
Business contingency actions, including labor management, concrete
mix optimization, higher asset utilization and delivery
efficiencies, reduced the impact from lower revenue on adjusted
EBITDA in the first quarter of 2021.
CONSOLIDATED FIRST QUARTER 2021 RESULTS COMPARED TO FIRST
QUARTER 2020
Consolidated revenue was $285.7
million, a decrease of $48.7
million, or 14.6%, compared to the prior year first quarter,
primarily as a result of lower ready-mixed concrete volumes. During
the first quarter of 2021, operating income was $0.5 million, with an operating income margin of
0.2%, compared to $3.1 million in the
first quarter of 2020, with an operating income margin of
0.9%. Aggressive cost containment measures, operating
efficiencies and growth from the aggregate products segment helped
to mitigate the impact on operating income from lower revenue.
Selling, general and administrative expenses ("SG&A") were
$29.3 million in the first quarter of
2021 compared to $33.7 million in the
first quarter of 2020. SG&A as a percentage of revenue
was 10.3% in the first quarter of 2021 compared to 10.1% in
the prior year first quarter. On a non-GAAP basis, Adjusted
SG&A, which excludes non-cash stock compensation,
acquisition-related costs, and realignment initiative costs, was
9.0% of revenue in the first quarter of 2021 compared to 8.5% in
the prior year first quarter. Adjusted SG&A as a
percentage of revenue is a non-GAAP financial measure. Please
refer to the definitions, reconciliations, and other information at
the end of this press release.
BALANCE SHEET AND LIQUIDITY
Net cash provided by operating activities in the first quarter
of 2021 was $12.5 million compared to
$44.0 million in the prior year first
quarter due to lower sales and higher payments of incentive
compensation and interest on bonds. The Company's Adjusted
Free Cash Flow excluding the purchase of the Orca land and royalty
agreement in the first quarter of 2021 was $11.6 million compared to $36.9 million in the prior year first
quarter. Adjusted Free Cash Flow is a non-GAAP financial
measure. Please refer to the definitions, reconciliations,
and other information at the end of this press release.
At March 31, 2021, the Company had available borrowing
capacity of $154.7 million under its
revolving credit facility and $178.7 million under its delayed draw term
loan facility, resulting in total liquidity of $356.2 million when combined with its cash
balances. At March 31, 2021, U.S. Concrete had cash and
cash equivalents of $22.8 million and
total debt of $743.7 million,
resulting in Net Debt of $720.9
million. Net Debt as of March 31, 2021 increased
$29.6 million from December 31,
2020 due primarily to the acquisition of the Orca land and royalty
agreement in March 2021. Net Debt is a non-GAAP financial
measure. Please refer to the definitions, reconciliations,
and other information at the end of this press release.
OUTLOOK FOR 2021
The Company is continuing to target 2021 Total Adjusted EBITDA
to be around $200 million for the
full year, or a 2% to 5% increase from 2020. Total Adjusted
EBITDA is a non-GAAP financial measure. Please refer to the
definition and other information at the end of this press
release. Because certain GAAP financial measures on a
forward-looking basis are not accessible and not available without
unreasonable effort, reconciliations are not provided for
forward-looking non-GAAP measures.
CONFERENCE CALL AND WEBCAST DETAILS
U.S. Concrete will host a conference call on Thursday,
May 6, 2021, at 12:00 p.m. Eastern
Time (11:00 a.m. Central Time)
to review its first quarter 2021 results. To participate in
the call, please dial (877) 312-8806 – Conference ID: 4478966 at
least 20 minutes before the conference call begins and ask for the
U.S. Concrete conference call.
A live webcast will be available on the Investor Relations
section of the Company's website at www.us-concrete.com.
Please visit the website at least 20 minutes before the call begins
to register, download and install any necessary audio
software. A replay of the conference call and archive of the
webcast will be available shortly after the call on the Investor
Relations section of the Company's website at www.us-concrete.com.
ABOUT U.S. CONCRETE
U.S. Concrete, Inc. (NASDAQ: USCR) is a leading
supplier of aggregates and concrete for infrastructure, residential
and commercial projects across the country. The Company holds
leading market positions in the high-growth metropolitan markets
of Dallas/Fort Worth, San
Francisco, New York
City, Philadelphia, and Washington, D.C., and its
materials have been used in some of the most complex and highly
specialized construction projects of the last decade. U.S.
Concrete has continued to grow organically and through a
series of strategic acquisitions of independent producers in its
target markets.
For more information on U.S. Concrete, visit
www.us-concrete.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements and information provided in this press
release are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These forward-looking
statements include, without limitation, statements concerning
plans, objectives, goals, projections, outlook, strategies, future
events or performance, and underlying assumptions and other
statements, which are not statements of historical facts. In
some cases, you can identify forward-looking statements by
terminology such as "may," "will," "intend," "should," "expect,"
"plan," "target," "anticipate," "believe," "estimate," "outlook,"
"predict," "potential" or "continue," the negative of such terms or
other comparable terminology. These forward-looking
statements, which are subject to risks, uncertainties and
assumptions about us, may include projections of our future
financial performance, our anticipated growth strategies and
anticipated trends in our business. These statements are
predictions based on our current expectations and projections about
future events which we believe are reasonable. Actual events or
results may differ materially.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. We
believe that these risks and uncertainties include, but are not
limited to: general economic and business conditions, which will,
among other things, affect demand for new residential and
commercial construction; our ability to successfully identify,
manage, and integrate acquisitions; the cyclical nature of, and
changes in, the real estate and construction markets, including
pricing changes by our competitors; governmental requirements and
initiatives, including those related to mortgage lending, financing
or deductions, funding for public or infrastructure construction,
land usage, and environmental, health, and safety matters;
disruptions, uncertainties or volatility in the credit markets that
may limit our, our suppliers' and our customers' access to capital;
our ability to successfully implement our operating strategy;
weather conditions; our substantial indebtedness and the
restrictions imposed on us by the terms of our indebtedness; the
effects of currency fluctuations on our results of operations and
financial condition; our ability to maintain favorable
relationships with third parties who supply us with equipment and
essential supplies; our ability to retain key personnel and
maintain satisfactory labor relations; and product liability,
property damage, results of litigation and other claims and
insurance coverage issues. These risks and uncertainties also
include the effects of COVID-19; the length and severity of the
COVID-19 pandemic; the pace of recovery following the COVID-19
pandemic; our ability to implement cost containment strategies; and
the adverse effects of the COVID-19 pandemic on our business, the
economy and the markets we serve.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or
achievements. Moreover, neither we nor any other person
assumes responsibility for the accuracy and completeness of the
forward-looking statements. All written and oral
forward-looking statements made in connection with this press
release that are attributable to us or persons acting on our behalf
are expressly qualified in their entirety by the "Risk Factors" in
our Annual Report on Form 10-K and our Quarterly Reports on Form
10-Q filed with the Securities and Exchange Commission. We
are under no duty to update any of the forward-looking statements
after the date of this press release to conform such statements to
actual results or to changes in our expectations, except as
required by federal securities laws. There can be no
assurance that other factors will not affect the accuracy of these
forward-looking statements or that our actual results will not
differ materially from the results anticipated in such
forward-looking statements. Unpredictable or unknown factors
we have not discussed in this press release also could have
material effects on actual results or matters that are the subject
of our forward-looking statements. We undertake no obligation
to, and do not intend to, update our description of important
factors each time a potential important factor arises.
Non-GAAP Financial Measures
Included in this press
release are certain non-GAAP financial measures that we believe are
useful for investors. These non-GAAP financial measures may
not be comparable to similarly titled measures other companies
report and are not intended to be used as an alternative to any
measure of our performance in accordance with GAAP.
Reconciliations and definitions of the non-GAAP financial
measures used in this press release are included at the end of this
press release. Because certain GAAP financial measures on a
forward-looking basis are not accessible, and reconciling
information is not available without unreasonable effort, we have
not provided reconciliations for forward-looking non-GAAP financial
measures.
(Tables Follow)
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(in millions
except per share amounts)
|
|
|
Three Months
Ended
March
31,
|
|
2021
|
|
2020
|
Revenue
|
$
|
285.7
|
|
|
$
|
334.4
|
|
Cost of goods sold
excluding depreciation, depletion and amortization
|
233.1
|
|
|
273.9
|
|
Selling, general and
administrative expenses
|
29.3
|
|
|
33.7
|
|
Depreciation,
depletion and amortization
|
24.4
|
|
|
23.4
|
|
Change in value of
contingent consideration
|
(0.1)
|
|
|
0.3
|
|
Gain on sale/disposal
of assets and business, net
|
(1.5)
|
|
|
—
|
|
Operating
income
|
0.5
|
|
|
3.1
|
|
Interest expense,
net
|
10.4
|
|
|
11.4
|
|
Other income,
net
|
(0.4)
|
|
|
(0.6)
|
|
Income (loss) before
income taxes
|
(9.5)
|
|
|
(7.7)
|
|
Income tax expense
(benefit)
|
(4.7)
|
|
|
(4.9)
|
|
Net income
(loss)
|
(4.8)
|
|
|
(2.8)
|
|
Amounts attributable
to non-controlling interest
|
—
|
|
|
0.3
|
|
Net income (loss)
attributable to U.S. Concrete
|
$
|
(4.8)
|
|
|
$
|
(3.1)
|
|
|
|
|
|
Earnings (loss) per
share attributable to U.S. Concrete:
|
|
|
|
Basic and
diluted
|
$
|
(0.28)
|
|
|
$
|
(0.19)
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
Basic and
diluted
|
16.8
|
|
|
16.5
|
|
Note: Certain
computations within this press release may reflect rounding
adjustments.
|
U.S. CONCRETE,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
millions)
|
|
|
March 31,
2021
|
|
December 31,
2020
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
22.8
|
|
|
$
|
11.1
|
|
Trade accounts
receivable, net
|
189.8
|
|
|
212.5
|
|
Inventories
|
73.2
|
|
|
70.3
|
|
Other receivables,
net
|
22.1
|
|
|
13.2
|
|
Prepaid expenses and
other
|
10.5
|
|
|
11.1
|
|
Total current
assets
|
318.4
|
|
|
318.2
|
|
Property, plant and
equipment, net
|
802.5
|
|
|
788.2
|
|
Operating lease
assets
|
74.2
|
|
|
76.1
|
|
Goodwill
|
237.9
|
|
|
238.2
|
|
Intangible assets,
net
|
65.3
|
|
|
70.9
|
|
Other
assets
|
13.7
|
|
|
14.7
|
|
Total
assets
|
$
|
1,512.0
|
|
|
$
|
1,506.3
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
113.6
|
|
|
$
|
127.8
|
|
Accrued
liabilities
|
75.0
|
|
|
86.1
|
|
Current maturities of
long-term debt
|
34.0
|
|
|
33.7
|
|
Current operating
lease liabilities
|
14.8
|
|
|
14.3
|
|
Total current
liabilities
|
237.4
|
|
|
261.9
|
|
Long-term debt, net
of current maturities
|
709.7
|
|
|
668.7
|
|
Long-term operating
lease liabilities
|
63.3
|
|
|
65.5
|
|
Other long-term
obligations and deferred credits
|
50.2
|
|
|
51.9
|
|
Deferred income
taxes
|
61.3
|
|
|
56.6
|
|
Total
liabilities
|
1,121.9
|
|
|
1,104.6
|
|
|
|
|
|
Equity:
|
|
|
|
Additional paid-in
capital
|
366.7
|
|
|
363.8
|
|
Retained
earnings
|
48.5
|
|
|
53.3
|
|
Treasury stock, at
cost
|
(47.6)
|
|
|
(37.9)
|
|
Total shareholders'
equity
|
367.6
|
|
|
379.2
|
|
Non-controlling
interest
|
22.5
|
|
|
22.5
|
|
Total
equity
|
390.1
|
|
|
401.7
|
|
Total liabilities and
equity
|
$
|
1,512.0
|
|
|
$
|
1,506.3
|
|
U.S. CONCRETE,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
millions)
|
|
Three months ended
March 31,
|
|
2021
|
|
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net income
(loss)
|
$
|
(4.8)
|
|
|
$
|
(2.8)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating
activities:
|
|
|
|
Depreciation,
depletion and amortization
|
24.4
|
|
|
23.4
|
|
Amortization of debt
issuance costs
|
0.5
|
|
|
0.4
|
|
Change in value of
contingent consideration
|
(0.1)
|
|
|
0.3
|
|
Deferred income
taxes
|
5.9
|
|
|
2.2
|
|
Provision for doubtful
accounts and customer disputes
|
0.7
|
|
|
0.3
|
|
Stock-based
compensation
|
2.9
|
|
|
3.7
|
|
Other, net
|
(0.8)
|
|
|
(0.8)
|
|
Changes in assets and
liabilities, excluding effects of acquisitions:
|
|
|
|
Accounts
receivable
|
22.1
|
|
|
15.1
|
|
Inventories
|
(3.0)
|
|
|
(0.2)
|
|
Prepaid expenses and
other current assets
|
(8.4)
|
|
|
(5.2)
|
|
Other assets and
liabilities
|
(1.4)
|
|
|
0.3
|
|
Accounts payable and
accrued liabilities
|
(25.5)
|
|
|
7.3
|
|
Net cash provided by
operating activities
|
12.5
|
|
|
44.0
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Purchases of property,
plant and equipment
|
(32.4)
|
|
|
(7.3)
|
|
Proceeds from sale of
business and property, plant and equipment
|
2.8
|
|
|
0.2
|
|
Payment for
acquisition of business
|
—
|
|
|
(140.2)
|
|
Net cash used in
investing activities
|
(29.6)
|
|
|
(147.3)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from revolver
borrowings
|
139.7
|
|
|
170.2
|
|
Repayments of revolver
borrowings
|
(91.2)
|
|
|
(79.9)
|
|
Payments for
acquisition-related liabilities
|
(1.2)
|
|
|
(2.9)
|
|
Payments for finance
leases, promissory notes and other
|
(8.8)
|
|
|
(8.4)
|
|
Shares redeemed for
employee income tax obligations
|
(9.7)
|
|
|
(1.1)
|
|
Proceeds from finance
leases and other
|
—
|
|
|
12.2
|
|
Debt issuance
costs
|
—
|
|
|
(1.0)
|
|
Net cash provided by
financing activities
|
28.8
|
|
|
89.1
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
—
|
|
|
—
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
11.7
|
|
|
(14.2)
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
11.1
|
|
|
40.6
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
$
|
22.8
|
|
|
$
|
26.4
|
|
NON-GAAP FINANCIAL
MEASURES
(Unaudited)
Total Adjusted EBITDA and Total Adjusted
EBITDA Margin
Total Adjusted EBITDA and Total Adjusted EBITDA Margin are
non-GAAP financial measures. We define Total Adjusted EBITDA
as our net income (loss), excluding the impact of income taxes,
depreciation, depletion and amortization, net interest expense and
certain other non-cash, non-recurring and/or unusual, non-operating
items including, but not limited to: non-cash stock compensation
expense, non-cash change in value of contingent consideration,
acquisition-related costs, officer transition expenses, purchase
accounting adjustments for inventory, and realignment initiative
costs. Acquisition-related costs consist of fees and expenses
for accountants, lawyers and other professionals incurred during
the negotiation and closing of strategic acquisitions.
Acquisition-related costs do not include fees or expenses
associated with post-closing integration of strategic
acquisitions. We define Total Adjusted EBITDA Margin as the
amount determined by dividing Total Adjusted EBITDA by total
revenue. We have included Total Adjusted EBITDA and Total
Adjusted EBITDA Margin herein because they are widely used by
investors for valuation and comparing our financial performance
with the performance of other building material companies. We
also use Total Adjusted EBITDA and Total Adjusted EBITDA Margin to
monitor and compare the financial performance of our
operations. Total Adjusted EBITDA does not give effect to the
cash we must use to service our debt or pay our income taxes and
thus does not reflect the funds actually available for capital
expenditures. In addition, our presentation of Total Adjusted
EBITDA may not be comparable to similarly titled measures other
companies report. Total Adjusted EBITDA and Total Adjusted
EBITDA Margin are not intended to be used as an alternative to any
measure of our performance in accordance with GAAP. The
following table reconciles Total Adjusted EBITDA to the most
directly comparable GAAP financial measure, which is net income
(loss).
($ in
millions)
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
Total Adjusted
EBITDA Reconciliation
|
|
|
|
|
Net income
(loss)
|
|
$
|
(4.8)
|
|
|
$
|
(2.8)
|
|
Income tax expense
(benefit)
|
|
(4.7)
|
|
|
(4.9)
|
|
Income (loss) before
income taxes
|
|
(9.5)
|
|
|
(7.7)
|
|
Depreciation,
depletion and amortization
|
|
24.4
|
|
|
23.4
|
|
Interest expense,
net
|
|
10.4
|
|
|
11.4
|
|
Non-cash stock
compensation expense
|
|
2.9
|
|
|
3.7
|
|
Gain on sale of
business
|
|
(0.7)
|
|
|
—
|
|
Realignment initiative
costs
|
|
0.4
|
|
|
—
|
|
Acquisition-related
costs
|
|
0.3
|
|
|
1.3
|
|
Purchase accounting
adjustments for inventory
|
|
0.1
|
|
|
1.6
|
|
Non-cash change in
value of contingent consideration
|
|
(0.1)
|
|
|
0.3
|
|
Officer transition
expenses
|
|
—
|
|
|
0.2
|
|
Total Adjusted
EBITDA
|
|
$
|
28.2
|
|
|
$
|
34.2
|
|
|
|
|
|
|
Net income (loss)
margin
|
|
(1.7)
|
%
|
|
(0.8)
|
%
|
Total Adjusted EBITDA
Margin
|
|
9.9
|
%
|
|
10.2
|
%
|
Adjusted Gross Profit and Adjusted Gross
Margin
Adjusted Gross Profit and Adjusted Gross Margin are non-GAAP
financial measures. We define Adjusted Gross Profit as our
operating income, excluding the impact of depreciation, depletion
and amortization, selling, general and administrative expenses,
change in value of contingent consideration, purchase accounting
adjustments for inventory, and gain on sale/disposal of
assets/business, net. We define Adjusted Gross Margin as the
amount determined by dividing Adjusted Gross Profit by total
revenue. We have included Adjusted Gross Profit and Adjusted
Gross Margin herein because they are widely used by investors for
valuing and comparing our financial performance from period to
period. We also use Adjusted Gross Profit and Adjusted Gross
Margin to monitor and compare the financial performance of our
operations. Adjusted Gross Profit and Adjusted Gross Margin
are not intended to be used as an alternative to any measure of our
performance in accordance with GAAP. The following table
reconciles Adjusted Gross Profit to the most directly comparable
GAAP financial measure, which is operating income.
($ in
millions)
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Adjusted Gross
Profit Reconciliation
|
|
|
|
Operating
income
|
$
|
0.5
|
|
|
$
|
3.1
|
|
Depreciation,
depletion and amortization
|
24.4
|
|
|
23.4
|
|
Selling, general and
administrative expenses
|
29.3
|
|
|
33.7
|
|
Gain on sale/disposal
of assets/business, net
|
(1.5)
|
|
|
—
|
|
Purchase accounting
adjustments for inventory
|
0.1
|
|
|
1.6
|
|
Change in value of
contingent consideration
|
(0.1)
|
|
|
0.3
|
|
Adjusted Gross
Profit
|
$
|
52.7
|
|
|
$
|
62.1
|
|
|
|
|
|
Operating income
margin
|
0.2
|
%
|
|
0.9
|
%
|
Adjusted Gross Profit
Margin
|
18.4
|
%
|
|
18.6
|
%
|
Adjusted SG&A and Adjusted SG&A as a
Percentage of Revenue
Adjusted selling, general and administrative expenses
("SG&A") and Adjusted SG&A as a percentage of revenue are
non-GAAP financial measures. We define Adjusted SG&A as
selling, general and administrative expenses, excluding the impact
of non-cash stock compensation expense, acquisition-related costs,
officer transition costs, and realignment initiative costs.
We define Adjusted SG&A as a percentage of revenue as Adjusted
SG&A divided by total revenue. We have included Adjusted
SG&A and Adjusted SG&A as a percentage of revenue herein
because they are used by investors to compare our SG&A leverage
with the performance of other building materials companies.
We use Adjusted SG&A and Adjusted SG&A as a percentage of
revenue to monitor and compare the financial performance of our
operations. Adjusted SG&A and Adjusted SG&A as a
percentage of revenue are not intended to be used as an alternative
to any measure of our performance under GAAP. The following
table reconciles Adjusted SG&A to the most directly comparable
GAAP financial measure, which is SG&A.
($ in
millions)
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Adjusted SG&A
Reconciliation
|
|
|
|
Selling, general and
administrative expenses
|
$
|
29.3
|
|
|
$
|
33.7
|
|
Non-cash stock
compensation expense
|
(2.9)
|
|
|
(3.7)
|
|
Realignment
initiative costs
|
(0.4)
|
|
|
—
|
|
Acquisition-related
costs
|
(0.3)
|
|
|
(1.3)
|
|
Officer transition
expenses
|
—
|
|
|
(0.2)
|
|
Adjusted
SG&A
|
$
|
25.7
|
|
|
$
|
28.5
|
|
|
|
|
|
SG&A as a
percentage of revenue
|
10.3
|
%
|
|
10.1
|
%
|
Adjusted SG&A as
a percentage of revenue
|
9.0
|
%
|
|
8.5
|
%
|
Adjusted Net Income Attributable to U.S.
Concrete and Adjusted Net Income Attributable to U.S. Concrete per
Diluted Share
Adjusted Net Income Attributable to U.S. Concrete and Adjusted
Net Income Attributable to U.S. Concrete per Diluted Share are
non-GAAP financial measures. We define Adjusted Net Income
Attributable to U.S. Concrete as net income attributable to U.S.
Concrete, net of income taxes and certain other non-cash,
non-recurring and/or unusual, non-operating items including, but
not limited to: non-cash stock compensation expense, non-cash
change in value of contingent consideration, acquisition-related
costs, officer transition expenses, purchase accounting adjustments
for inventory, and realignment initiative costs. We also
adjust Adjusted Net Income Attributable to U.S. Concrete for a
normalized effective income tax rate of 27%. We define
Adjusted Net Income Attributable to U.S. Concrete per Diluted Share
as Adjusted Net Income Attributable to U.S. Concrete on a diluted
per share basis. Acquisition-related costs consist of fees
and expenses for accountants, lawyers and other professionals
incurred during the negotiation and closing of strategic
acquisitions. Acquisition-related costs do not include fees
or expenses associated with post-closing integration of strategic
acquisitions.
We have included Adjusted Net Income Attributable to U.S.
Concrete and Adjusted Net Income Attributable to U.S. Concrete per
Diluted Share herein because they are used by investors for
valuation and comparing our financial performance with the
performance of other building material companies. We use
Adjusted Net Income Attributable to U.S. Concrete and Adjusted Net
Income Attributable to U.S. Concrete per Diluted Share to monitor
and compare the financial performance of our operations.
Adjusted Net Income Attributable to U.S. Concrete and Adjusted Net
Income Attributable to U.S. Concrete per Diluted Share are not
intended to be used as an alternative to any measure of our
performance in accordance with GAAP.
The following tables reconcile (i) Adjusted Net Income
Attributable to U.S. Concrete to the most directly comparable GAAP
financial measure, which is net income attributable to U.S.
Concrete and (ii) Adjusted Net Income Attributable to U.S. Concrete
per Diluted Share to the most directly comparable GAAP financial
measure, which is net income attributable to U.S. Concrete
per diluted share.
($ in
millions)
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Adjusted Net
Income Attributable to U.S. Concrete Reconciliation
|
|
|
|
Net income (loss)
attributable to U.S. Concrete
|
$
|
(4.8)
|
|
|
$
|
(3.1)
|
|
Income tax expense
(benefit)
|
(4.7)
|
|
|
(4.9)
|
|
Adjusted income
(loss) before income taxes
|
(9.5)
|
|
|
(8.0)
|
|
Non-cash stock
compensation expense
|
2.9
|
|
|
3.7
|
|
Gain on sale of
business
|
(0.7)
|
|
|
—
|
|
Realignment
initiative costs
|
0.4
|
|
|
—
|
|
Acquisition-related
costs
|
0.3
|
|
|
1.3
|
|
Purchase accounting
adjustments for inventory
|
0.1
|
|
|
1.6
|
|
Non-cash change in
value of contingent consideration
|
(0.1)
|
|
|
0.3
|
|
Officer transition
expenses
|
—
|
|
|
0.2
|
|
Adjusted income
(loss) before income taxes
|
(6.6)
|
|
|
(0.9)
|
|
Normalized income tax
expense (benefit)(1)
|
(1.8)
|
|
|
(0.2)
|
|
Adjusted Net Income
(Loss) Attributable to U.S. Concrete
|
$
|
(4.8)
|
|
|
$
|
(0.7)
|
|
|
|
|
|
(1) Assumes a
normalized effective tax rate of 27% in all periods.
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Adjusted Net
Income Attributable to U.S. Concrete per Diluted Share
Reconciliation
|
|
|
|
Net income (loss)
attributable to U.S. Concrete per share
|
$
|
(0.28)
|
|
|
$
|
(0.19)
|
|
Income tax expense
(benefit)
|
(0.28)
|
|
|
(0.30)
|
|
Adjusted income
(loss) before income taxes per share
|
(0.56)
|
|
|
(0.49)
|
|
Impact of non-cash
stock compensation expense
|
0.16
|
|
|
0.22
|
|
Impact of gain on
sale of business
|
(0.04)
|
|
|
—
|
|
Impact of realignment
initiative costs
|
0.02
|
|
|
—
|
|
Impact of
acquisition-related costs
|
0.02
|
|
|
0.09
|
|
Impact of purchase
accounting adjustments for inventory
|
0.01
|
|
|
0.10
|
|
Impact of non-cash
change in value of contingent consideration
|
(0.01)
|
|
|
0.02
|
|
Impact of officer
transition expenses
|
—
|
|
|
0.01
|
|
Adjusted income
(loss) before income taxes per share
|
(0.40)
|
|
|
(0.05)
|
|
Normalized income tax
expense (benefit)(1)
|
(0.11)
|
|
|
(0.01)
|
|
Adjusted Net Income
(Loss) Attributable to U.S. Concrete per Diluted Share
|
$
|
(0.29)
|
|
|
$
|
(0.04)
|
|
|
|
|
|
(1) Assumes a
normalized effective tax rate of 27% in all periods.
|
Adjusted Free Cash Flow
Adjusted Free Cash Flow is a non-GAAP financial measure.
We define Adjusted Free Cash Flow as net cash provided by operating
activities less purchases of property, plant and equipment plus
proceeds from the sale of business and property, plant and
equipment. We consider Adjusted Free Cash Flow to be an
important indicator of our ability to service our debt and generate
cash for acquisitions and other strategic investments.
However, Adjusted Free Cash Flow is not intended to be used as an
alternative to any measure of our liquidity in accordance with
GAAP. The following table reconciles Adjusted Free Cash Flow
to the most directly comparable GAAP financial measure, which is
net cash provided by operating activities.
($ in
millions)
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Adjusted Free Cash
Flow Reconciliation
|
|
|
|
Net cash provided by
operating activities
|
$
|
12.5
|
|
|
44.0
|
|
Purchases of
property, plant and equipment
|
(32.4)
|
|
|
(7.3)
|
|
Proceeds from sale of
business and property, plant and equipment
|
2.8
|
|
|
0.2
|
|
Adjusted Free Cash
Flow
|
(17.1)
|
|
|
36.9
|
|
Orca land and royalty
agreement
|
28.7
|
|
|
—
|
|
Adjusted Free Cash
Flow excluding Orca land and royalty agreement
|
$
|
11.6
|
|
|
$
|
36.9
|
|
|
|
|
|
|
|
|
|
Net Debt
Net Debt is a non-GAAP financial measure. We define Net
Debt as total debt, including current maturities and finance lease
obligations, less cash and cash equivalents. We believe that
Net Debt is useful to investors as a measure of our financial
position. We use Net Debt to monitor and compare our
financial position from period to period. However, Net Debt
is not intended to be used as an alternative to any measure of our
financial position in accordance with GAAP. The following
table reconciles Net Debt to the most directly comparable GAAP
financial measure, which is total debt, including current
maturities and finance lease obligations.
($ in
millions)
|
|
As
of
|
|
As
of
|
|
|
March 31,
2021
|
|
December 31,
2020
|
Net Debt
Reconciliation
|
|
|
|
|
Total debt, including
current maturities and finance lease
obligations
|
|
$
|
743.7
|
|
|
$
|
702.4
|
|
Cash and cash
equivalents
|
|
(22.8)
|
|
|
(11.1)
|
|
Net Debt
|
|
$
|
720.9
|
|
|
$
|
691.3
|
|
Net Debt to Total Adjusted EBITDA
Net Debt to Total Adjusted EBITDA is a non-GAAP financial
measure. We define Net Debt to Total Adjusted EBITDA as Net
Debt divided by Total Adjusted EBITDA for the applicable last
twelve-month period. We define Total Adjusted EBITDA as our
net income, excluding the impact of income taxes, depreciation,
depletion and amortization, net interest expense and certain other
non-cash, non-recurring and/or unusual, non-operating items
including, but not limited to: non-cash stock compensation expense,
non-cash change in value of contingent consideration,
acquisition-related costs, officer transition expenses, purchase
accounting adjustments for inventory, pension withdrawal liability,
and realignment initiative costs. We believe that Net Debt to
Total Adjusted EBITDA is useful to investors as a measure of our
financial position. We use this measure to monitor and
compare our financial position from period to period.
However, Net Debt to Total Adjusted EBITDA is not intended to be
used as an alternative to any measure of our financial position in
accordance with GAAP. The following table presents our
calculation of Net Debt to Total Adjusted EBITDA and the most
directly comparable GAAP ratio, which is total debt to last twelve
months ("LTM") net income.
|
|
Twelve
Months
|
($ in
millions)
|
|
Ended
|
|
|
March 31,
2021
|
Total LTM Adjusted
EBITDA Reconciliation
|
|
|
Net income
|
|
$
|
22.5
|
|
Income tax expense
(benefit)
|
|
(4.8)
|
|
Income before income
taxes
|
|
17.7
|
|
Depreciation,
depletion and amortization
|
|
100.7
|
|
Interest expense,
net
|
|
44.9
|
|
Loss on
extinguishment of debt
|
|
12.4
|
|
Non-cash stock
compensation expense
|
|
10.8
|
|
Non-cash change in
value of contingent consideration
|
|
(7.7)
|
|
Purchase accounting
adjustments for inventory
|
|
3.4
|
|
Realignment
initiative costs
|
|
2.1
|
|
Acquisition-related
costs, net
|
|
1.8
|
|
Pension withdrawal
liability
|
|
1.5
|
|
Gain on sale of
business
|
|
(0.7)
|
|
Total LTM Adjusted
EBITDA
|
|
$
|
186.9
|
|
|
|
|
Net Debt
|
|
$
|
720.9
|
|
|
|
|
Total debt to LTM net
income
|
|
33.1x
|
|
Net Debt to Total LTM
Adjusted EBITDA as of March 31, 2021
|
|
3.9x
|
|
Source: USCR-E
Contact:
|
U.S. Concrete, Inc.
Investor Relations
|
|
844-828-4774
|
|
IR@us-concrete.com
|
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SOURCE U.S. Concrete, Inc.