EULESS, Texas (AP) _ U.S. Concrete Inc. (USCR) on Tuesday reported fourth-quarter net income of $3.9 million.
On a per-share basis, the Euless-based company said it had net income of 23 cents. Earnings, adjusted for stock option expense and non-recurring costs, came to 47 cents per share.
The company also announced a strategic acquisition.
“Today we are excited to announce the completion of our most recent aggregates acquisition, Coram Materials Corp., for a purchase price of $142 million, which significantly expands our East Coast aggregates portfolio,” said William J. Sandbrook, chairman and CEO. “The acquisition should produce a margin profile in excess of the company’s average within the first full year of ownership. Post synergies, which we expect to achieve within two years, the deal represents a multiple of approximately 7 times EBITDA. This acquisition possesses significant, premium sand reserves that will provide us with self-sufficiency in meeting our sand supply needs to our ready-mixed concrete operations in New York City as well as providing external sales to third party customers. Coram’s 50 million tons of reserves, located in the quickly depleting Long Island sand market, increases the vertical integration of our New York operations, strengthens our competitive position and advances the continuation of our strategy of expanding into higher margin aggregates businesses. Following our successful Polaris acquisition, we continue to seek out accretive opportunities of coupling the pull through capabilities of our large regional footprints of ready-mixed concrete operations with attractive aggregate assets.”
On Feb.13, the company announced that Sandbrook would retire as CEO effective April 3, 2020. Sandbrook will continue to serve as the company’s Chairman of the Board until the company’s annual meeting of stockholders in May 2020. The company also announced that Ronnie Pruitt, the company’s president and chief operating officer, has been named CEO and president effective as of April 3, 2020.
The concrete and aggregates producer posted revenue of $369.2 million in the period.
For the year, the company reported profit of $14.9 million, or 91 cents per share. Revenue was reported as $1.48 billion.
U.S. Concrete expects full-year revenue in the range of $1.5 billion to $1.6 billion.
U.S. Concrete shares have declined 12% since the beginning of the year. The stock has decreased nearly 10% in the last 12 months.
This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on USCR at https://www.zacks.com/ap/USCR
FWBP Staff also contributed to the report.