EULESS, Texas, Feb. 26, 2019 /PRNewswire/ -- U.S. Concrete,
Inc. (NASDAQ: USCR), a leading producer of construction materials
in select major markets across the United
States, today reported results for the full year and quarter
ended December 31, 2018.
FULL YEAR 2018 HIGHLIGHTS INCLUDE THE FOLLOWING ALL-TIME
ANNUAL HIGHS COMPARED TO FULL YEAR 20171
- Consolidated revenue increased 12.8% to $1.5 billion
- Ready-mixed concrete revenue increased 7.7% to $1.3 billion
- Aggregate products revenue increased 101.3% to $182.6 million
- Aggregate products volume increased 79.3% to 11.1 million
tons
- Polaris Materials contributed revenue of $92.0 million and volume of 5.0 million tons
- Income from continuing operations was $31.3 million, an increase of $5.1 million
- Total Adjusted EBITDA2 increased 0.7% to
$193.5 million
- Net cash provided by operating activities increased
$28.0 million to $122.8 million
- Adjusted Free Cash Flow2 increased $47.8 million to $103.4
million
FOURTH QUARTER 2018 HIGHLIGHTS COMPARED TO FOURTH QUARTER
20171
- Consolidated revenue increased 8.4% to $370.1 million
- Ready-mixed concrete revenue increased 5.6% to $321.0 million
- Ready-mixed concrete volume grew by 2.6%
- Aggregate products revenue increased 59.5% to $46.4 million
- Aggregate products volume increased 41.0% to 2.7 million
tons
- Polaris Materials contributed revenue of $24.3 million and volume of 1.3 million tons
- Income from continuing operations was $3.1 million, an increase of $6.0 million
- Total Adjusted EBITDA2 increased 6.0% to
$46.2 million
- Net cash provided by operating activities increased
$22.0 million to $32.6 million
- Adjusted Free Cash Flow2 increased $24.4 million to $27.5
million
___________
|
1
|
Certain computations
within this press release may reflect rounding
adjustments.
|
2
|
Total Adjusted EBITDA
and Adjusted Free Cash Flow are non-GAAP financial measures.
Please refer to the reconciliation and other information at the end
of this press release.
|
William J. Sandbrook, Chairman,
President and Chief Executive Officer of U.S. Concrete, Inc.
stated, "With the backdrop of an extremely weather challenged
operating environment, we are pleased to report record revenue and
record Adjusted EBITDA for the full year 2018. Our full year
results include record highs in aggregate products and ready-mixed
concrete volumes and revenues. This growth was aided by
contributions from our recent acquisitions, most notably Polaris
Materials Corporation. As we have indicated, Polaris continues to
provide the performance we expected, although on a much more
accelerated pace than we originally expected, and is contributing
meaningfully to the increases in our aggregates segment. As a
result, our aggregates segment is now becoming a more significant
part of our results. Our continued growth is a testament to our
strategy where we build defensible, integrated positions in major
metropolitan markets, leading to value-enhancing franchises that
are virtually impossible to replicate.
"Despite what can be characterized as a disappointing year
because of the weather-related disruptions, there are many
positives to note. Our 2018 fourth quarter was our 32nd consecutive
quarter of year-over-year increased revenue. Additionally, we
delivered an outstanding cash performance through our consistent
focus on operations and working capital management, with net cash
provided by operating activities exceeding $120 million for 2018."
Mr. Sandbrook concluded, "Our bullishness on the positive
economic outlook in 2019 is only tempered by the uncertainties of
the past two years of disruptive long-term weather patterns. All
segments of the construction markets in our regions are vibrant and
there is a distinct possibility of acceleration in publicly-funded
infrastructure projects. Our optimism is supported by our backlog
of 7.8 million cubic yards of concrete that we entered 2019 with,
which represents almost ten months of production of future
work."
OPERATING RESULTS
READY-MIXED
CONCRETE SEGMENT
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(in millions,
except average sales price)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
321.0
|
|
|
$
|
303.9
|
|
|
$
|
1,306.5
|
|
|
$
|
1,213.0
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
38.9
|
|
|
$
|
41.0
|
|
|
$
|
179.2
|
|
|
$
|
185.8
|
|
|
|
|
|
|
|
|
|
Average sales price
per cubic yard
|
$
|
137.94
|
|
|
$
|
133.96
|
|
|
$
|
136.42
|
|
|
$
|
134.86
|
|
Sales volume in cubic
yards
|
2.3
|
|
|
2.3
|
|
|
9.5
|
|
|
9.0
|
|
Revenue from the ready-mixed concrete segment increased
$93.5 million, or 7.7%, for 2018
compared to the prior year. Revenue from the
ready-mixed concrete segment for the 2018 fourth quarter increased
$17.1 million, or 5.6%, compared to
the prior year fourth quarter. The increases for both the
fourth quarter and full year were aided by contributions from our
acquisitions. The Company's ready-mixed concrete sales volume
for the 2018 fourth quarter increased 2.6% compared to the prior
year fourth quarter. Multiple weather events throughout the
country during 2018, combined with driver shortages and increasing
raw material costs hindered further revenue and profitability
growth.
AGGREGATE PRODUCTS
SEGMENT
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(in millions,
except average sales price)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Sales to external
customers (1)
|
$
|
35.6
|
|
|
$
|
17.5
|
|
|
$
|
136.5
|
|
|
$
|
49.8
|
|
Intersegment sales
(1)
|
10.8
|
|
|
11.6
|
|
|
46.1
|
|
|
40.9
|
|
Total aggregate
products revenue (1)
|
$
|
46.4
|
|
|
$
|
29.1
|
|
|
$
|
182.6
|
|
|
$
|
90.7
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
$
|
12.5
|
|
|
$
|
8.3
|
|
|
$
|
41.6
|
|
|
$
|
27.2
|
|
|
|
|
|
|
|
|
|
Average sales price
per ton (2)
|
$
|
11.35
|
|
|
$
|
13.73
|
|
|
$
|
11.28
|
|
|
$
|
12.92
|
|
Sales volume in
tons
|
2.7
|
|
|
1.9
|
|
|
11.1
|
|
|
6.2
|
|
|
|
(1)
|
During the quarter
ended June 30, 2018, the Company re-characterized the results of
its Polaris (defined below) distribution operations, which include
shipping and terminal operations, to the aggregate products segment
from other products and eliminations. This change was made to
better reflect how the Polaris business is viewed and operated by
management and more closely aligns the reporting with how the
Company manages and reports its other aggregate products
operations. As a result of this change, certain first quarter
amounts were reclassified from those previously
reported.
|
|
|
(2)
|
The Company's
calculation of the aggregate products segment ASP (defined below)
excludes certain other ancillary revenue and Polaris's freight
revenue. The Company defines revenue for its aggregate
products ASP calculation as amounts billed to external and internal
customers for coarse and fine aggregate products, excluding
delivery charges. The Company's definition and calculation of
ASP may differ from other companies in the construction materials
industry.
|
Aggregate products revenue increased $91.9 million, or 101.3%, for 2018 compared to
the prior year. In 2018, aggregate products segment Adjusted
EBITDA increased by $14.4 million to
$41.6 million compared to the prior
year. During the fourth quarter, aggregate products sales
volume increased 41.0% compared to the prior year fourth
quarter. Aggregate products Adjusted EBITDA of $12.5 million in the 2018 fourth quarter
increased $4.2 million compared to
the prior year fourth quarter. The growth in our aggregate
products segment was primarily the result of the acquisition of
Polaris Materials ("Polaris"). The acquisitions of Corbett
Sand & Gravel and Polaris in 2017 resulted in a change in
product mix, which has resulted in an overall lower average sales
price ("ASP") for the segment.
FULL YEAR 2018 RESULTS COMPARED TO FULL YEAR 2017
RESULTS
Consolidated revenue for 2018 increased 12.8% to $1.5 billion, versus $1.3
billion in the prior year, driven by higher volume both
organically and from recent acquisitions in both ready-mixed
concrete and aggregate products. For 2018, net income
attributable to U.S. Concrete was $30.0
million compared to $25.5
million for 2017. For 2018, income from continuing
operations was $31.3 million compared
to $26.2 million for 2017. For
2018, Total Adjusted EBITDA of $193.5
million was $1.3 million
greater than the $192.2 million in
2017.
CONSOLIDATED FOURTH QUARTER 2018 RESULTS
COMPARED TO FOURTH QUARTER 2017
Fourth quarter 2018 consolidated revenue increased 8.4% compared
to the prior year fourth quarter, primarily resulting from
acquisition-related growth. During the fourth quarter of
2018, operating income was $16.7
million compared to a loss of $0.3
million in the fourth quarter of 2017, with an operating
income margin of 4.5% compared to an operating loss margin of 0.1%
in the fourth quarter of 2017.
Selling, general and administrative expenses ("SG&A") as a
percentage of revenue was 8.1% in the 2018 fourth quarter compared
to 9.7% in the prior year fourth quarter. SG&A decreased
$2.9 million, or 8.8%, for the
quarter ended December 31, 2018, in comparison to the
corresponding 2017 quarter. The decrease resulted from lower
acquisition-related costs, self-insurance reserves and certain
personnel-related costs, partially offset by the impact of
additional SG&A from acquisitions, marketing expenses and
litigation settlement costs. On a non-GAAP basis, our Adjusted
SG&A, which excludes non-cash stock compensation,
acquisition-related costs and litigation settlement costs, was 6.9%
in the 2018 fourth quarter compared to 7.4% in the prior year
fourth quarter. The reduction of Adjusted SG&A as a
percentage of revenue in the 2018 fourth quarter also reflects the
benefit of improved operating leverage. 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 2018 fourth
quarter was $122.8 million, compared
to $94.8 million in the prior year
fourth quarter. The increase in net cash provided by
operating activities in the fourth quarter of 2018 was primarily
driven by our results of operations. The Company's Adjusted
Free Cash Flow in the 2018 fourth quarter was $27.5 million, as compared to $3.1 million in the prior year fourth
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 December 31, 2018, the Company had cash and cash
equivalents of $20.0 million and
total debt of $714.1 million,
resulting in Net Debt of $694.1
million. Net Debt increased by $23.3 million from December 31, 2017,
largely as a result of the successful deployment of capital for the
continued execution of our acquisition strategy, capital
expenditures for plant equipment to support growing demand in our
markets and the impact of our share repurchase program. The
Company had $243.7 million of unused
availability under its revolving credit facility at
December 31, 2018, resulting in total liquidity of
$263.7 million. 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 2019
U.S. Concrete is currently targeting the following results for
2019:
|
|
2019
Guidance
|
Category
|
|
Low
|
|
High
|
|
|
|
|
|
Consolidated
revenue
|
|
$1.51
billion
|
|
$1.65
billion
|
Total Adjusted EBITDA
(1)
|
|
$205
million
|
|
$225
million
|
|
|
(1)
|
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 measures.
|
CONFERENCE CALL AND WEBCAST DETAILS
U.S. Concrete will host a conference call on Tuesday,
February 26, 2019 at 10:00 a.m. Eastern
Time (9:00 a.m. Central Time),
to review its fourth quarter 2018 results. To participate in
the call, please dial (877) 312-8806 – Conference ID: 1679287 at
least ten 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 15 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 concrete and aggregates for large-scale commercial,
residential and infrastructure projects across the country.
The Company holds leading market positions in the high-growth
metropolitan markets of New York, Philadelphia, San
Francisco, Dallas/Fort Worth 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 our
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,"
"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.
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 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
measures.
(Tables Follow)
U.S. CONCRETE,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(in millions
except per share amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue
|
$
|
370.1
|
|
|
$
|
341.3
|
|
|
$
|
1,506.4
|
|
|
$
|
1,336.0
|
|
Cost of goods sold
before depreciation, depletion and amortization
|
299.5
|
|
|
278.3
|
|
|
1,212.2
|
|
|
1,056.6
|
|
Selling, general and
administrative expenses
|
30.1
|
|
|
33.0
|
|
|
126.5
|
|
|
119.2
|
|
Depreciation,
depletion and amortization
|
23.6
|
|
|
19.0
|
|
|
91.8
|
|
|
67.8
|
|
Change in value of
contingent consideration
|
0.9
|
|
|
5.9
|
|
|
—
|
|
|
7.9
|
|
Impairment of
goodwill and other assets
|
—
|
|
|
5.6
|
|
|
1.3
|
|
|
6.2
|
|
Gain on sale of
business and assets, net
|
(0.7)
|
|
|
(0.2)
|
|
|
(15.3)
|
|
|
(0.7)
|
|
Operating income
(loss)
|
16.7
|
|
|
(0.3)
|
|
|
89.9
|
|
|
79.0
|
|
Interest expense,
net
|
11.8
|
|
|
11.0
|
|
|
46.4
|
|
|
42.0
|
|
Derivative
loss
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
Other expense
(income), net
|
(0.5)
|
|
|
—
|
|
|
(4.6)
|
|
|
(2.4)
|
|
Income from
continuing operations before income taxes
|
5.4
|
|
|
(11.3)
|
|
|
48.1
|
|
|
38.6
|
|
Income tax expense
(benefit)
|
2.3
|
|
|
(8.4)
|
|
|
16.8
|
|
|
12.4
|
|
Income (loss) from
continuing operations
|
3.1
|
|
|
(2.9)
|
|
|
31.3
|
|
|
26.2
|
|
Loss from
discontinued operations, net of taxes
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.6)
|
|
Net income
(loss)
|
3.1
|
|
|
(3.0)
|
|
|
31.3
|
|
|
25.6
|
|
Less: Net income
attributable to non-controlling interest
|
(1.1)
|
|
|
(0.1)
|
|
|
(1.3)
|
|
|
(0.1)
|
|
Net income (loss)
attributable to U.S. Concrete
|
$
|
2.0
|
|
|
$
|
(3.1)
|
|
|
$
|
30.0
|
|
|
$
|
25.5
|
|
|
|
|
|
|
|
|
|
Basic income (loss)
per share attributable to U.S. Concrete:
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
0.12
|
|
|
$
|
(0.18)
|
|
|
$
|
1.82
|
|
|
$
|
1.64
|
|
Loss from
discontinued operations, net of taxes
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.04)
|
|
Net income (loss) per
share attributable to U.S. Concrete - basic
|
$
|
0.12
|
|
|
$
|
(0.19)
|
|
|
$
|
1.82
|
|
|
$
|
1.60
|
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per share attributable to U.S. Concrete:
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
0.12
|
|
|
$
|
(0.18)
|
|
|
$
|
1.82
|
|
|
$
|
1.57
|
|
Loss from
discontinued operations, net of taxes
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.04)
|
|
Net income (loss) per
share attributable to U.S. Concrete - diluted
|
$
|
0.12
|
|
|
$
|
(0.19)
|
|
|
$
|
1.82
|
|
|
$
|
1.53
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
16.4
|
|
|
16.4
|
|
|
16.5
|
|
|
15.9
|
|
Diluted
|
16.5
|
|
|
16.4
|
|
|
16.5
|
|
|
16.6
|
|
|
Note:
Certain computations within this press release may reflect rounding
adjustments.
|
U.S. CONCRETE,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in
millions)
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
20.0
|
|
|
$
|
22.6
|
|
Trade accounts
receivable, net
|
|
226.6
|
|
|
214.2
|
|
Inventories
|
|
51.2
|
|
|
48.1
|
|
Other
receivables
|
|
18.4
|
|
|
19.2
|
|
Prepaid expenses and
other
|
|
7.9
|
|
|
7.6
|
|
Total current
assets
|
|
324.1
|
|
|
311.7
|
|
Property, plant and
equipment, net
|
|
680.2
|
|
|
636.3
|
|
Goodwill
|
|
239.3
|
|
|
204.7
|
|
Intangible assets,
net
|
|
116.6
|
|
|
118.1
|
|
Other
assets
|
|
11.1
|
|
|
5.3
|
|
Total
assets
|
|
$
|
1,371.3
|
|
|
$
|
1,276.1
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
125.8
|
|
|
$
|
117.1
|
|
Accrued
liabilities
|
|
96.3
|
|
|
65.4
|
|
Current maturities of
long-term debt
|
|
30.8
|
|
|
26.0
|
|
Total current
liabilities
|
|
252.9
|
|
|
208.5
|
|
Long-term debt, net
of current maturities
|
|
683.3
|
|
|
667.4
|
|
Other long-term
obligations and deferred credits
|
|
54.8
|
|
|
93.3
|
|
Deferred income
taxes
|
|
43.1
|
|
|
4.8
|
|
Total
liabilities
|
|
1,034.1
|
|
|
974.0
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
Preferred
stock
|
|
—
|
|
|
—
|
|
Common
stock
|
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
|
329.6
|
|
|
319.0
|
|
Retained earnings
(accumulated deficit)
|
|
16.2
|
|
|
(13.8)
|
|
Treasury stock, at
cost
|
|
(33.4)
|
|
|
(24.8)
|
|
Total shareholders'
equity
|
|
312.4
|
|
|
280.4
|
|
Non-controlling
interest
|
|
24.8
|
|
|
21.7
|
|
Total
equity
|
|
337.2
|
|
|
302.1
|
|
Total liabilities and
equity
|
|
$
|
1,371.3
|
|
|
$
|
1,276.1
|
|
U.S. CONCRETE,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
millions)
|
|
|
Twelve Months
Ended December 31,
|
|
2018
|
|
2017
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net income
|
$
|
31.3
|
|
|
$
|
25.6
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation,
depletion and amortization
|
91.8
|
|
|
67.8
|
|
Amortization of debt
issuance costs
|
1.8
|
|
|
2.0
|
|
Derivative
loss
|
—
|
|
|
0.8
|
|
Change in value of
contingent consideration
|
—
|
|
|
7.9
|
|
Net gain on disposal
of businesses and assets
|
(15.3)
|
|
|
(0.7)
|
|
Impairments of
goodwill and other assets
|
1.3
|
|
|
6.2
|
|
Deferred income
taxes
|
14.6
|
|
|
(3.4)
|
|
Provision for
doubtful accounts and customer disputes
|
4.6
|
|
|
4.6
|
|
Stock-based
compensation
|
10.4
|
|
|
8.3
|
|
Other, net
|
(1.3)
|
|
|
(0.5)
|
|
Changes in assets and
liabilities, excluding effects of acquisitions:
|
|
|
|
Accounts
receivable
|
(16.9)
|
|
|
(5.7)
|
|
Inventories
|
(2.1)
|
|
|
0.6
|
|
Prepaid expenses and
other current assets
|
(2.0)
|
|
|
(2.8)
|
|
Other assets and
liabilities
|
(3.0)
|
|
|
2.6
|
|
Accounts payable and
accrued liabilities
|
7.6
|
|
|
(18.5)
|
|
Net cash provided by
operating activities
|
122.8
|
|
|
94.8
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Purchases of
property, plant and equipment
|
(39.9)
|
|
|
(42.7)
|
|
Payments related to
acquisitions, net of cash acquired
|
(72.3)
|
|
|
(295.1)
|
|
Proceeds from
disposals of businesses and property, plant and
equipment
|
20.7
|
|
|
3.5
|
|
Purchases of
environmental credits
|
(2.8)
|
|
|
—
|
|
Insurance proceeds
from property loss claims
|
2.6
|
|
|
—
|
|
Net cash used in
investing activities
|
(91.7)
|
|
|
(334.3)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from
revolver borrowings
|
431.2
|
|
|
54.4
|
|
Repayments of
revolver borrowings
|
(425.2)
|
|
|
(45.4)
|
|
Proceeds from
issuance of debt
|
—
|
|
|
211.5
|
|
Proceeds from
exercise of warrants and stock options
|
0.1
|
|
|
2.7
|
|
Payments of other
long-term obligations
|
(5.9)
|
|
|
(9.0)
|
|
Payments for other
financing
|
(29.6)
|
|
|
(20.3)
|
|
Debt issuance
costs
|
—
|
|
|
(4.5)
|
|
Payments for share
repurchases
|
(6.7)
|
|
|
—
|
|
Other treasury share
purchases
|
(1.9)
|
|
|
(3.1)
|
|
Other
proceeds
|
4.6
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
(33.4)
|
|
|
186.3
|
|
EFFECT OF EXCHANGE
RATES ON CASH AND CASH EQUIVALENTS
|
(0.3)
|
|
|
—
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(2.6)
|
|
|
(53.2)
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
22.6
|
|
|
75.8
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
$
|
20.0
|
|
|
$
|
22.6
|
|
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 income (loss) from continuing operations, excluding the
impact of income tax expense (benefit), 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, impairment of assets,
acquisition-related costs, officer transition expenses, quarry
dredge costs for specific event, hurricane-related losses, net of
recoveries and derivative loss (income). Acquisition-related
costs consist of fees and expenses for accountants, lawyers and
other professionals incurred during the negotiation and closing of
strategic acquisitions and certain acquired entities' management
severance costs. 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 income (loss)
from continuing operations (in millions).
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Total Adjusted
EBITDA Reconciliation
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
3.1
|
|
|
$
|
(2.9)
|
|
|
$
|
31.3
|
|
|
$
|
26.2
|
|
Add/subtract:
Income tax expense (benefit)
|
2.3
|
|
|
(8.4)
|
|
|
16.8
|
|
|
12.4
|
|
Income (loss) from
continuing operations before income taxes
|
5.4
|
|
|
(11.3)
|
|
|
48.1
|
|
|
38.6
|
|
Add:
Depreciation, depletion and amortization
|
23.6
|
|
|
19.0
|
|
|
91.8
|
|
|
67.8
|
|
Add: Interest
expense, net
|
11.8
|
|
|
10.9
|
|
|
46.4
|
|
|
42.0
|
|
Add: Non-cash
stock compensation expense
|
2.4
|
|
|
1.8
|
|
|
10.4
|
|
|
8.3
|
|
Add: Non-cash
change in value of contingent consideration
|
0.9
|
|
|
5.9
|
|
|
—
|
|
|
7.9
|
|
Add: Impairment
of assets
|
—
|
|
|
5.6
|
|
|
1.3
|
|
|
6.2
|
|
Add:
Acquisition-related costs
|
1.0
|
|
|
5.3
|
|
|
6.2
|
|
|
10.1
|
|
Add: Officer
transition expenses
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.8
|
|
Add: Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Add: Quarry
dredge costs for specific event
|
0.3
|
|
|
1.2
|
|
|
1.1
|
|
|
3.4
|
|
Add: Eminent
domain costs
|
0.1
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
Add: Litigation
settlement costs
|
1.2
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
Add/subtract:
Hurricane-related losses, net of recoveries
|
(0.6)
|
|
|
1.8
|
|
|
(0.8)
|
|
|
3.0
|
|
Add: Purchase
accounting adjustments for inventory
|
0.1
|
|
|
1.3
|
|
|
0.8
|
|
|
1.3
|
|
Add: Foreign
currency losses resulting from Polaris
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
Add: Derivative
loss
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
Subtract: Gain
on sale of business
|
—
|
|
|
—
|
|
|
(14.6)
|
|
|
—
|
|
Total Adjusted
EBITDA
|
$
|
46.2
|
|
|
$
|
43.6
|
|
|
$
|
193.5
|
|
|
$
|
192.2
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations margin
|
0.8
|
%
|
|
(0.8)
|
%
|
|
2.1
|
%
|
|
2.0
|
%
|
Total Adjusted EBITDA
Margin
|
12.5
|
%
|
|
12.8
|
%
|
|
12.8
|
%
|
|
14.4
|
%
|
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 (loss), excluding the impact of depreciation,
depletion and amortization ("DD&A"), selling, general and
administrative expenses, and certain other non-cash, non-recurring
and/or unusual, non-operating items, including change in value of
contingent consideration, impairment of assets, quarry dredge costs
for specific event, eminent domain costs, hurricane-related losses
in COGS before DD&A, purchase accounting adjustments for
inventory and loss (gain) on disposal of assets, 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
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Adjusted Gross
Profit Reconciliation
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
16.7
|
|
|
$
|
(0.3)
|
|
|
$
|
89.9
|
|
|
$
|
79.0
|
|
Add: Depreciation,
depletion and amortization
|
23.6
|
|
|
19.0
|
|
|
91.8
|
|
|
67.8
|
|
Add: Selling, general
and administrative expenses
|
30.1
|
|
|
33.0
|
|
|
126.5
|
|
|
119.2
|
|
Add: Change in value
of contingent consideration
|
0.9
|
|
|
5.9
|
|
|
—
|
|
|
7.9
|
|
Add: Impairment of
assets
|
—
|
|
|
5.6
|
|
|
1.3
|
|
|
6.2
|
|
Add: Quarry dredge
costs for specific event
|
0.3
|
|
|
1.2
|
|
|
1.1
|
|
|
3.4
|
|
Add: Eminent domain
costs
|
0.1
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
Add:
Hurricane-related losses in COGS before DD&A
|
—
|
|
|
1.5
|
|
|
0.3
|
|
|
2.4
|
|
Add: Purchase
accounting adjustments for inventory
|
0.1
|
|
|
1.3
|
|
|
0.8
|
|
|
1.3
|
|
Subtract: Gain on
disposal of assets, net
|
(0.7)
|
|
|
(0.2)
|
|
|
(15.3)
|
|
|
(0.7)
|
|
Adjusted Gross
Profit
|
$
|
71.1
|
|
|
$
|
67.0
|
|
|
$
|
297.1
|
|
|
$
|
286.5
|
|
|
|
|
|
|
|
|
|
Operating income
margin
|
4.5
|
%
|
|
(0.1)
|
%
|
|
6.0
|
%
|
|
5.9
|
%
|
Adjusted Gross
Margin
|
19.2
|
%
|
|
19.6
|
%
|
|
19.7
|
%
|
|
21.4
|
%
|
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 certain non-cash, non-recurring an/or unusual, non-operating
items, including stock compensation expense, acquisition-related
costs, officer transition expenses, litigation settlement costs and
hurricane-related losses. 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
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Adjusted
SG&A
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
$
|
30.1
|
|
|
$
|
33.0
|
|
|
$
|
126.5
|
|
|
$
|
119.2
|
|
Subtract: Non-cash
stock compensation expense
|
(2.4)
|
|
|
(1.8)
|
|
|
(10.4)
|
|
|
(8.3)
|
|
Subtract:
Acquisition-related costs
|
(1.0)
|
|
|
(5.3)
|
|
|
(6.2)
|
|
|
(10.1)
|
|
Subtract: Officer
transition expenses
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.8)
|
|
Subtract: Litigation
settlement costs
|
(1.2)
|
|
|
—
|
|
|
(2.1)
|
|
|
—
|
|
Subtract:
Hurricane-related losses
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
|
Adjusted
SG&A
|
$
|
25.5
|
|
|
$
|
25.4
|
|
|
$
|
107.8
|
|
|
$
|
99.7
|
|
|
|
|
|
|
|
|
|
SG&A as a
percentage of revenues
|
8.1
|
%
|
|
9.7
|
%
|
|
8.4
|
%
|
|
8.9
|
%
|
Adjusted SG&A as
a percentage of revenues
|
6.9
|
%
|
|
7.4
|
%
|
|
7.2
|
%
|
|
7.5
|
%
|
Adjusted Net Income from Continuing Operations
Attributable to U.S. Concrete and Adjusted Net Income from
Continuing Operations Attributable to U.S. Concrete per Diluted
Share
Adjusted Net Income from Continuing Operations Attributable to
U.S. Concrete and Adjusted Net Income from Continuing Operations
Attributable to U.S. Concrete per Diluted Share are non-GAAP
financial measures. We define Adjusted Net Income from
Continuing Operations Attributable to U.S. Concrete as net income
(loss) attributable to U.S. Concrete, excluding the impact of loss
(income) from discontinued operations, net of taxes, income tax
expense (benefit) 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, impairment of assets, acquisition-related
costs, officer transition expenses, quarry dredge costs for
specific event, hurricane-related losses, net of recoveries and
derivative loss (income). We also adjust Adjusted Net Income
from Continuing Operations Attributable to U.S. Concrete for a
normalized effective income tax rate of 27%. We define Adjusted Net
Income from Continuing Operations Attributable to U.S. Concrete per
Diluted Share as Adjusted Net Income from Continuing Operations
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 and certain
acquired entities' management severance costs.
Acquisition-related costs do not include fees or expenses
associated with post-closing integration of strategic
acquisitions.
We have included Adjusted Net Income from Continuing Operations
Attributable to U.S. Concrete and Adjusted Net Income from
Continuing Operations 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 from
Continuing Operations Attributable to U.S. Concrete and Adjusted
Net Income from Continuing Operations Attributable to U.S. Concrete
per Diluted Share to monitor and compare the financial performance
of our operations. Adjusted Net Income from Continuing
Operations Attributable to U.S. Concrete and Adjusted Net Income
from Continuing Operations 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 from
Continuing Operations Attributable to U.S. Concrete to the most
directly comparable GAAP financial measure, which is net income
(loss) attributable to U.S. Concrete and (ii) Adjusted Net Income
from Continuing Operations Attributable to U.S. Concrete per
Diluted Share to the most directly comparable GAAP financial
measure, which is net income (loss) attributable to U.S. Concrete
per diluted share (in millions except per share amounts).
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Adjusted Net
Income from Continuing Operations Attributable to U.S. Concrete
Reconciliation
|
|
|
|
|
|
|
|
Net income (loss)
attributable to U.S. Concrete
|
$
|
2.0
|
|
|
$
|
(3.1)
|
|
|
$
|
30.0
|
|
|
$
|
25.5
|
|
Add: Loss from
discontinued operations, net of taxes
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.6
|
|
Add/subtract:
Income tax expense (benefit)
|
2.3
|
|
|
(8.4)
|
|
|
16.8
|
|
|
12.4
|
|
Adjusted income
(loss) from continuing operations before income taxes
|
4.3
|
|
|
(11.4)
|
|
|
46.8
|
|
|
38.5
|
|
Add: Non-cash stock
compensation expense
|
2.4
|
|
|
1.8
|
|
|
10.4
|
|
|
8.3
|
|
Add: Non-cash change
in value of contingent consideration
|
0.9
|
|
|
5.9
|
|
|
—
|
|
|
7.9
|
|
Add: Impairment of
assets
|
—
|
|
|
5.6
|
|
|
1.3
|
|
|
6.2
|
|
Add:
Acquisition-related costs
|
1.0
|
|
|
5.3
|
|
|
6.2
|
|
|
10.1
|
|
Add: Officer
transition expenses
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.8
|
|
Add: Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Add: Quarry dredge
costs for specific event
|
0.3
|
|
|
1.2
|
|
|
1.1
|
|
|
3.4
|
|
Add: Eminent domain
costs
|
0.1
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
Add: Litigation
settlement costs
|
1.2
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
Add/subtract:
Hurricane-related losses, net of recoveries
|
(0.6)
|
|
|
1.8
|
|
|
(0.8)
|
|
|
3.0
|
|
Add: Purchase
accounting adjustments for inventory
|
0.1
|
|
|
1.3
|
|
|
0.8
|
|
|
1.3
|
|
Add: Foreign currency
losses resulting from Polaris
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
Add: Derivative
loss
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
Subtract: Gain on
sale of business
|
—
|
|
|
—
|
|
|
(14.6)
|
|
|
—
|
|
Adjusted income from
continuing operations before income taxes
|
9.7
|
|
|
13.6
|
|
|
54.0
|
|
|
82.3
|
|
Subtract:
Normalized income tax expense(1)
|
2.6
|
|
|
3.7
|
|
|
14.6
|
|
|
22.2
|
|
Adjusted Net Income
from Continuing Operations Attributable to U.S. Concrete
|
$
|
7.1
|
|
|
$
|
9.9
|
|
|
$
|
39.4
|
|
|
$
|
60.1
|
|
|
(1) Assumes a
normalized effective tax rate of 27% in all periods.
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Adjusted Net
Income from Continuing Operations Attributable to U.S. Concrete per
Diluted Share Reconciliation
|
|
|
|
|
|
|
|
Net income (loss)
attributable to U.S. Concrete per diluted share
|
$
|
0.12
|
|
|
$
|
(0.19)
|
|
|
$
|
1.82
|
|
|
$
|
1.53
|
|
Add: Loss from
discontinued operations, net of taxes per diluted share
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.04
|
|
Add/subtract:
Income tax expense (benefit) per diluted share
|
0.14
|
|
|
(0.52)
|
|
|
1.01
|
|
|
0.75
|
|
Adjusted income
(loss) from continuing operations before income taxes per diluted
share
|
0.26
|
|
|
(0.70)
|
|
|
2.83
|
|
|
2.32
|
|
Add: Impact of
non-cash stock compensation expense
|
0.15
|
|
|
0.11
|
|
|
0.63
|
|
|
0.50
|
|
Add: Impact of
non-cash change in value of contingent consideration
|
0.05
|
|
|
0.36
|
|
|
—
|
|
|
0.47
|
|
Add: Impact of
impairment of assets
|
—
|
|
|
0.34
|
|
|
0.08
|
|
|
0.37
|
|
Add: Impact of
acquisition-related costs
|
0.06
|
|
|
0.32
|
|
|
0.38
|
|
|
0.61
|
|
Add: Impact of
officer transition expenses
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.05
|
|
Add: Impact of
loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Add: Impact of
quarry dredge costs for specific event
|
0.02
|
|
|
0.07
|
|
|
0.06
|
|
|
0.20
|
|
Add: Impact of
eminent domain costs
|
0.01
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
Add: Impact of
litigation settlement costs
|
0.07
|
|
|
—
|
|
|
0.13
|
|
|
—
|
|
Add/subtract:
Impact of hurricane-related losses, net of recoveries
|
(0.04)
|
|
|
0.11
|
|
|
(0.05)
|
|
|
0.18
|
|
Add: Impact of
purchase accounting adjustments for inventory
|
0.01
|
|
|
0.08
|
|
|
0.05
|
|
|
0.08
|
|
Add: Impact of
foreign currency losses resulting from Polaris
|
—
|
|
|
0.12
|
|
|
—
|
|
|
0.12
|
|
Add: Impact of
derivative loss
|
—
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
Subtract:
Impact of gain on sale of business
|
—
|
|
|
—
|
|
|
(0.88)
|
|
|
—
|
|
Adjusted income from
continuing operations before income taxes
|
0.59
|
|
|
0.82
|
|
|
3.27
|
|
|
4.95
|
|
Subtract:
Normalized income tax expense(1)
|
0.16
|
|
|
0.22
|
|
|
0.88
|
|
|
1.34
|
|
Adjusted Net Income
from Continuing Operations Attributable to U.S. Concrete per
Diluted Share
|
$
|
0.43
|
|
|
$
|
0.60
|
|
|
$
|
2.39
|
|
|
$
|
3.61
|
|
|
(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 and
purchases of environmental credits plus proceeds from the disposal
of businesses and property, plant and equipment and insurance
proceeds from property loss claims. 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
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Adjusted Free Cash
Flow Reconciliation
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
32.6
|
|
|
$
|
10.6
|
|
|
$
|
122.8
|
|
|
$
|
94.8
|
|
Subtract: Purchases
of property, plant and equipment
|
(7.7)
|
|
|
(8.7)
|
|
|
(39.9)
|
|
|
(42.7)
|
|
Subtract: Purchases
of environmental credits
|
—
|
|
|
—
|
|
|
(2.8)
|
|
|
—
|
|
Add: Proceeds from
disposals of businesses and property, plant and
equipment
|
2.1
|
|
|
1.2
|
|
|
20.7
|
|
|
3.5
|
|
Add: Insurance
proceeds from property loss claims
|
0.5
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
Adjusted Free Cash
Flow
|
$
|
27.5
|
|
|
$
|
3.1
|
|
|
$
|
103.4
|
|
|
$
|
55.6
|
|
Net Debt
Net Debt is a non-GAAP financial measure. We define Net
Debt as total debt, including current maturities and capital 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 capital lease obligations (in millions).
|
As
of
|
|
As
of
|
|
December 31,
2018
|
|
December 31,
2017
|
Net Debt
Reconciliation
|
|
|
|
Total debt, including
current maturities and capital lease obligations
|
$
|
714.1
|
|
|
$
|
693.4
|
|
Subtract: cash and
cash equivalents
|
20.0
|
|
|
22.6
|
|
Net Debt
|
$
|
694.1
|
|
|
$
|
670.8
|
|
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
income (loss) from continuing operations, excluding the impact of
income tax expense (benefit), 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, impairment of assets,
acquisition-related costs, officer transition expenses, quarry
dredge costs for specific event, hurricane-related losses, net of
recoveries and derivative loss (income). 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") income from continuing operations (in millions). For
an explanation and reconciliation of Total Adjusted EBITDA, see
page 10 of this release.
|
|
Twelve Month
Period
|
|
|
January 1, 2018
to
|
|
|
December 31,
2018
|
|
|
|
Total Adjusted
EBITDA
|
|
$
|
193.5
|
|
|
|
Net Debt
|
|
$
|
694.1
|
|
|
|
Total debt to LTM
income from continuing operations
|
|
22.8x
|
Net Debt to Total
Adjusted EBITDA
|
|
3.6x
|
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.