U.S. Concrete, Inc. (NASDAQ:USCR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 08:30 am ET


U.S. Concrete, Inc. (NASDAQ:USCR) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. And welcome to the U.S. Concrete Second Quarter 2020 Earnings Conference Call. [Operator Instructions] I would like to turn the call to John Kunz, Senior Vice President and Chief Financial Officer.

John E. Kunz

Thank you. Good morning and welcome to U.S. Concrete's second quarter 2020 earnings call. Joining me on the call today is Ronnie Pruitt, our President and Chief Executive Officer. We will make some prepared remarks, after which we will open the call to questions. As detailed on Page 2 of our accompanying presentation to facilitate today's discussion, 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 to 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 which was filed earlier today. Our presentation to facilitate today's discussion is available on the Investor Relations section of our website.

Before I turn the call over to Ronnie, to offer his comments, I will review our financial performance and business' results. Today, we are pleased to present our results for the second quarter. The volume disruptions that began in March, continued into April, especially in the coastal markets we serve. These disruptions resulted in a significant reduction in revenue during the quarter.

As the quarter progressed, we experienced a steady rebound in demand. We achieved substantially higher margins and adjusted EBITDA in the quarter versus the second quarter of 2019, primarily as a result of aggressive cost containment, more efficient utilization of our plants and equipment and the increased use of our proprietary technology. The improvement in our plant and equipment utilization and overall efficiency was achieved through the use of data analytics, greater use of where's my Concrete technology and reductions in cycle times. Our performance since the inception of the pandemic, including the strength of our second quarter result, is a direct result of our team's rapid response to this challenging environment and is testament to the strength of our business model. Our focus on building defensible, vertically integrated market positions with an increasing concentration in aggregates helped us produce the robust second quarter results and demonstrates the strength of our business model during difficult times and market conditions. Our significant investments in aggregates, most notably Polaris and Coram led to record-setting performance of our aggregates business in the second quarter.

During the quarter, the impact of the pandemic, the related shelter-in-place requirements and other restrictions were most acutely felt in our coastal regions. Even though, we were deemed an essential business, many