U.S. Concrete, Inc. (NASDAQ:USCR) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 10:00 am ET


U.S. Concrete, Inc. (NASDAQ:USCR) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the U.S. Concrete Inc Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. John Kunz, Senior Vice President and Chief Financial Officer. Thank you. Please go ahead.

John E. Kunz

Thank you [Indecipherable]. Good morning and welcome to US Concrete third quarter 2019 earnings call. Joining me on the call today are Bill Sandbrook, our Chairman and Chief Executive Officer and Ronnie Pruitt, our President and Chief Operating Officer. We will make some prepared remarks, after which we will open the call to questions.

Before I turn the call over to Bill, I would like to cover a few administrative items. A presentation to facilitate today's discussion is available in the Investor Relations section of our website. As detailed on page 2 of our presentation today's call will include forward-looking statements as defined by the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially.

Except as legally required, we undertake no obligation to update or conform such statements to actual results or changes in our expectations. 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. If you would 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 e-mail alert.

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 and Presentations. With that I'll now turn the call over to Bill.

William J. Sandbrook

Thank you, John. Good morning, ladies and gentlemen, and welcome to our call. In light of continued strength in each of our markets and improved weather patterns I am pleased to announce that our quarterly revenue hit a record high of $409 million. The growth in revenue was driven by higher ready-mix volumes and increased average sales prices in our aggregate and ready-mix product lines. Our total adjusted EBITDA for the quarter was $62 million, a record high as well. And our adjusted EBITDA margins came in at 15.2% with the increased volumes contributing to these improvements.

With our overall volume and revenue growth, are a bit lower than we anticipated, we did however see meaningful volume growth in our Texas markets. Our volume growth was tempered somewhat by labor shortages in Texas, the softness in the residential housing markets in Northern California and a continued erosion of the New York City Union ready-mix markets by nonunion competitors. The continued economic expansion and the overall growth of the North Texas markets has limited the availability of