Rock Products

JUN 2019

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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www.rockproducts.com ROCKproducts • June 2019 • 13 IN THE KNOW improvements in prices within both the West and East segments during the period. Cement segment net revenues declined 0.7% to $37.3 million in the first quarter 2019, when compared to the prior-year period. Cement adjusted cash gross profit margin decreased to 3.1% in the first quarter, compared to 19.5% in the prior-year period, as margins were impacted by lower production levels in 2019. Organic sales volume of cement increased 1.0% in the first quarter, when compared to the prior-year period. Organic average selling prices on cement decreased 1.5% in the first quarter, when compared to the pri- or-year period due to changes of the customer mix across its geographies. • The West Segment reported oper- ating loss of $11.6 million in the first quarter 2019, compared to a loss of $6.1 million in the prior-year period. Aggregates revenue in the first quarter increased 12.3% over the prior-year period as a result of contributions from acquisitions, resulting in a 4.2% increase in organic volumes and a 4.7% increase in organic average sales prices. • The East Segment reported oper- ating loss of $17.3 million in the first quarter 2019, compared to a loss of $20.9 million in the pri- or-year period. Aggregates revenue increased 36.8%, primarily due to increases resulting from its acqui- sition program as well as a 9.1% and 7.6% increase in organic vol- umes and average sales prices, respectively. U.S. Concrete Inc. reported results for the quarter ended March 31, including: • Consolidated revenue increased 1.6% to $333.1 million. • Ready-mixed concrete revenue increased 0.4% to $290.4 million. • Aggregate products revenue increased 25.4% to $42.9 million. • Aggregate products volume increased 17.0% to 2.5 million tons. • Operating income increased to $7.9 million and operating income margin increased to 2.4%. • Adjusted Gross Profit increased 4.8% to $64.7 million and Adjusted Gross Profit Margin increased to 19.4%. Aggregate product sales volume increased 17.0% compared to the pri- or-year first quarter, predominantly driven by the company's Polaris and west Texas quarries. Adjusted EBITDA for this segment increased to $10.4 million in the first quarter of 2019 from $4.7 million in last year's first quarter, primarily reflecting the higher sales volume partially offset by the related higher production costs associated with the increased volume. William J. Sandbrook, chairman and chief executive officer, stated, "While faced with negative weather patterns, which seemingly have become rou- tine, we are pleased to report multiple financial accomplishments, includ- ing our 33rd consecutive quarter of U.S. Concrete Aggregates Volume Rises 17% William J.Sandbrook

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