HOUSTON, Oct. 22 /PRNewswire/ --
U.S. Concrete, Inc. (Nasdaq: RMIX) today reported results for the three months and nine months ended September 30, 2001.
Revenues in the third quarter of 2001 were $138.6 million compared to revenues of $116.6 million for the third quarter of 2000. Earnings before interest, taxes, depreciation and amortization, or EBITDA, before the special charge discussed below was $17.8 million for the third quarter of 2001, compared to EBITDA of $18.2 million in last year's third quarter. Net income in the third quarter of 2001 was $5.3 million before the special charge, or $0.21 per diluted share, compared to net income of $6.7 million, or $0.31 per diluted share in the third quarter of 2000. Net income before the special charge plus after-tax goodwill amortization, or cash earnings per share (EPS), was $0.25 per share for the third quarter of 2001, compared to last year's third quarter cash EPS of $0.35 per share.
As previously reported, third quarter results were negatively affected by the continued slowdown in the U.S. economy and the terrorist attacks of September 11, 2001, which accelerated the decline in construction activity, along with the costs associated with the special charge relating to the settlement of litigation with Del Webb Corporation ("Del Webb") described below.
Revenues for the nine months ended September 30, 2001 were $364.8 million compared to revenues of $291 million for the nine months ended September 30, 2000. EBITDA, before the special charges described below, was $42.6 million for the first nine months of 2001, compared to EBITDA of $43.0 million for the corresponding nine-month period in 2000. Net income for the first nine months of 2001 was $10.0 million before special charges, or $0.42 per diluted share, compared to net income of $14.9 million, or $0.70 per diluted share, for the first nine months of 2000. Cash EPS was $0.54 per share for the first nine months of 2001, compared to last year's cash EPS of $0.80 per share in the first nine months of 2000.
OUTLOOK
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations or divestitures that may be completed after the date of this press release.
U.S. Concrete expects revenues for the fourth quarter of 2001 in the range of $120 million to $125 million and earnings per diluted share in the range of $0.09 to $0.11, as compared to revenues of $103.6 million and earnings per diluted share of $0.09 for the fourth quarter of 2000. These revenue and earnings per diluted share amounts include the results of acquisitions completed before the date of this press release.
SPECIAL CHARGES
As previously reported, the Company recorded a pre-tax special charge in the third quarter of $2.24 million relating to the settlement of litigation with Del Webb. Final effectiveness and payment of the settlement is subject to court approval, which is expected to occur early in 2002.
For the nine months ended September 30, 2001, the Company recorded pretax special charges totaling $2.85 million relating to the Del Webb litigation and also recorded a $2.1 million pretax charge for incentive compensation granted to certain key employees in recognition of the contribution made by these employees to various 2001 capital raising initiatives.
U.S. Concrete has scheduled a conference call for Tuesday, October 23, 2001 at 9:30 a.m. eastern time to review this release. Participating in the call will be Eugene P. Martineau, chief executive officer, and Michael W. Harlan, chief financial officer.
To take part in the call, dial (719) 457-2637 at least ten minutes before the conference call begins and ask for the U.S. Concrete conference call. A replay of the call will be available approximately two hours after the live broadcast ends and will be available until October 30, 2001. To access the replay, dial (719) 457-0820 and enter the pass code 406568. Investors, analysts and the general public will also have the opportunity to listen to the conference call free over the Internet by visiting the Company's web site at www.us-concrete.com . To listen to the live call online, please visit the web site at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call. For more information, please contact Karen Roan at Easterly Investor Relations at (713) 529-6600 or e-mail karen@easterly.com .
U.S. Concrete, Inc. was formed in 1998 to become a leading value-added provider of ready-mixed concrete and related products and services to the construction industry in major markets in the United States. The Company currently has 85 operating plants producing approximately 6.0 million cubic yards of concrete annually, making it the sixth largest ready-mixed concrete producer in the country. For more information on U.S. Concrete visit www.us-concrete.com .
This press release contains various forward-looking statements and information that are based on management's belief as well as assumptions made by and information currently available to management. Forward-looking information includes statements regarding expected revenues and earnings per share for the fourth quarter of 2001. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions including, among other matters, general and regional economic conditions; future growth in the construction industry; the ability of U.S. Concrete to complete acquisitions and to effectively integrate the operations of acquired companies; access to sufficient capital to fund U.S. Concrete's desired growth; development of adequate management infrastructure; departure of key personnel; access to labor; union disruption; competitive factors; government regulations; exposure to environmental liabilities; the cyclical and seasonal nature of U.S. Concrete's business; adverse weather; and general risks related to the industry and markets in which U.S. Concrete operates. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2000, and the Company's subsequent Quarterly Reports on Form 10-Q.
U.S. CONCRETE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
Three Months Nine Months
Ended September 30 Ended September 30
2001 2000 2001 2000
Sales $138,587 $116,591 $364,764 $290,987
Cost of goods sold 110,141 91,338 293,349 230,560
Gross profit 28,446 25,253 71,415 60,427
Selling, general and
administrative
expenses (A) 13,055 7,302 32,218 18,525
Special compensation
charge (B) --- --- 2,124 ---
Depreciation and
amortization 3,508 2,747 10,115 8,165
Income from operations 11,883 15,204 26,958 33,737
Interest expense, net 4,858 4,023 14,909 9,673
Other income, net 199 227 568 1,122
Income before income
tax provision 7,224 11,408 12,617 25,186
Income tax provision 3,439 4,676 5,677 10,281
Net income $3,785 $6,732 $6,940 $14,905
Net income per share:
Basic $0.15 $0.31 $0.29 $0.70
Diluted $0.15 $0.31 $0.29 $0.70
Diluted net income per
share before
special charges (C) $0.21 $0.31 $0.42 $0.70
Number of shares used in
calculating net income
per share:
Basic 25,560 22,027 23,869 21,312
Diluted 25,668 22,037 23,962 21,337
(A) Includes $608,000 in the second quarter of 2001 and $2,242,000 in
the third quarter of 2001 related to the settlement of litigation.
(B) Represents a one-time grant of incentive compensation to certain key
employees in recognition of the contribution made by these employees
to various 2001 capital raising initiatives.
(C) Reflects the exclusion of the costs described in notes (A) and (B)
and the related tax impact.
Contacts: Michael W. Harlan, CFO
U.S. Concrete, Inc.
713-499-6200
Ken Dennard / kdennard@easterly.com
Lisa Elliott / lisae@easterly.com
Easterly Investor Relations
713-529-6600
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