U.S. Concrete, Inc. (USCR) saw its loss widen to $15.59 million, or $1.01 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $6.25 million, or $0.43 a share. On the other hand, adjusted net income for the quarter stood at $13.35 million, or $0.82 a share compared with $8.84 million or $0.55 a share, a year ago. Revenue during the quarter grew 20.94 percent to $318.78 million from $263.57 million in the previous year period. Gross margin for the quarter expanded 181 basis points over the previous year period to 22.24 percent. Total expenses were 92.55 percent of quarterly revenues, down from 93.91 percent for the same period last year. This has led to an improvement of 136 basis points in operating margin to 7.45 percent.
Operating income for the quarter was $23.76 million, compared with $16.06 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $46.08 million compared with $32.66 million in the prior year period. At the same time, adjusted EBITDA margin improved 207 basis points in the quarter to 14.46 percent from 12.39 percent in the last year period.
William J. Sandbrook, president and chief executive officer of U.S. Concrete, stated, "We continue to successfully build strong leadership positions in our major metropolitan markets and strengthen our footprint through accretive acquisitions, which led to record revenue for full year 2016 of $1.17 billion. We are extremely pleased with our results for the fourth quarter of 2016, with ready-mixed concrete year-over-year volume and average sales price growth of 15.8% and 5.5%, respectively. We also continue to improve average selling prices for our aggregate products, achieving a 14.8% year-over-year increase in the fourth quarter of 2016. The underlying fundamentals for continued improvements in volumes and pricing remain very strong for our business. Also, our gross margins and Adjusted EBITDA margins demonstrate the successful steps we have taken over the last four years to establish our leadership position in our major markets and to vertically integrate into aggregates. Our leadership position in our markets enabled us to achieve our 23rd straight quarter of year-over-year ready-mixed concrete price increases to $132.25 per cubic yard."
Operating cash flow improves
U.S. Concrete, Inc. has generated cash of $112.12 million from operating activities during the year, up 7.54 percent or $7.86 million, when compared with the last year. The company has spent $162.70 million cash to meet investing activities during the year as against cash outgo of $157.84 million in the last year. It has incurred net capital expenditure of $36.33 million on net basis during the year, up 53.53 percent or $12.67 million from year ago.
Cash flow from financing activities was $122.42 million for the year, up 348.47 percent or $95.12 million, when compared with the last year.
Debt increases substantially
U.S. Concrete, Inc. has witnessed an increase in total debt over the last one year. It stood at $449.30 million as on Dec. 31, 2016, up 63.03 percent or $173.70 million from $275.60 million on Dec. 31, 2015. Total debt was 47.52 percent of total assets as on Dec. 31, 2016, compared with 38.66 percent on Dec. 31, 2015. Debt to equity ratio was at 2.38 as on Dec. 31, 2016, up from 1.67 as on Dec. 31, 2015. Interest coverage ratio improved to 3.06 for the quarter from 2.78 for the same period last year.
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