U.S. Concrete, Inc. (NASDAQ:USCR) Q2 2017 Earnings Conference Call - Final Transcript

Aug 08, 2017 • 10:00 am ET


U.S. Concrete, Inc. (NASDAQ:USCR) Q2 2017 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the US Concrete, Inc. Second Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen only mode. [Operator Instructions]

I would now like to introduce your host for today's conference, Kevin Kohutek, Vice President and Chief Accounting Officer. You may begin.

Kevin Kohutek

Thank you, Israh. Good morning, and welcome to US Concrete's Second Quarter 2017 Earnings Conference Call. Joining me on the call today is Bill Sandbrook, our President and Chief Executive Officer; Bill and I will make some prepared remarks, after which we will open the call to your questions.

Before I turn the call over to Bill, I would like to cover a few administrative items. US Concrete would like to take advantage of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Certain statements in this conference call may be considered forward-looking statements within the meaning of that act.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially. For a list of these factors, please refer to the legal disclaimers and risk factors contained in our filings with the SEC. Please note that you can find the reconciliations and other information regarding the non-GAAP financial measures that we will discuss on this call in the Form 8-K filed earlier today and under the Investor Relations section of our website.

If you'd like to be on an e-mail distribution list to receive future news releases, please sign up in the Investor Relations section of our website under Email Alerts. If you would like to listen to a replay of today's call, it will be available in the Investor Relations section of our website under Events & Presentations.

Now I would like to turn the call over to Bill to discuss the highlights for the quarter.

Bill Sandbrook

Thank you, Kevin, and welcome, everyone, to our call this morning. I'm very pleased to announce that US Concrete once again, reported strong growth in revenue, profitability and margins from increased volumes and pricing in both our ready-mixed concrete and aggregate products segments for the second quarter of 2017.

Total revenue, as compared to the same period last year, increased 24% to $341 million. Income from continuing operations improved from a loss of $3 million to a loss of $2 million, and total adjusted EBITDA increased 55% to $53 million. We had loss from continuing operations margin of 0.6% and total adjusted EBITDA margin of 15.5% for the quarter. We continue to drive these trends with focused execution of our fundamental strategy.

We shape selective markets to meet our growth objectives, irrespective of any underlying need for external government stimulus. Rather, our markets have been selected and developed in Metropolitan areas of the country with higher than average mid- and long-term underlying economic growth drivers and government-funded activities simply supplement our growth rates.

Our market development activities in the high-end spectrum of the ready-mixed concrete product set, allow