Attached files
| file | filename |
|---|---|
| 8-K - 8-K - U.S. CONCRETE, INC. | a8-kq214earningsrelease.htm |
NEWS RELEASE
Contact: Matt Brown
Senior Vice President and CFO
U.S. Concrete, Inc.
817-835-4105
FOR IMMEDIATE RELEASE
U.S. CONCRETE ANNOUNCES 2014 SECOND QUARTER RESULTS
Second Quarter Highlights
• | Adjusted EBITDA increased 32.5% year-over-year, to $22.2 million |
• | Consolidated revenue increased 14.6%, to $180.4 million |
• | Ready-mixed concrete sales volume rose 6.9%, to approximately 1.5 million cubic yards |
• | Ready-mixed concrete average sales price improved 7.4%, to $110.27 per cubic yard |
• | Aggregate products sales volume rose 20.9%, to approximately 1.2 million tons |
• | Aggregate products average sales price improved 7.3%, to $9.63 per ton |
• | Gross profit increased $5.7 million with margin improvement of 79 basis points |
EULESS, TEXAS – August 7, 2014 – U.S. Concrete, Inc. (NASDAQ: USCR) today reported adjusted EBITDA of $22.2 million in the second quarter of 2014, compared to $16.7 million in the second quarter of 2013. Adjusted EBITDA margin, which is adjusted EBITDA as a percentage of revenue, was 12.3% for the second quarter of 2014, compared to 10.6% in the second quarter of 2013. Net income was $7.9 million, or $0.57 per diluted share, for the second quarter of 2014, compared to net income of $6.7 million, or $0.50 per diluted share, in the second quarter of 2013.
William J. Sandbrook, President and Chief Executive Officer of U.S. Concrete, stated “We are very pleased with our second quarter results, while we remain confident that we have further opportunities to improve performance going forward. Although the weather in our Dallas/Ft. Worth region was the wettest since 2009, our continued focus drove strong improvements in volume, pricing and profitability in both of our business segments. Our construction markets remain robust, our acquisition pipeline is steadily growing and our healthy cash position gives us optimism for continued strong performance in the second half of the year."
SECOND QUARTER 2014 RESULTS (all comparisons, unless noted, are with the prior year quarter)
Consolidated revenue increased 14.6% to $180.4 million, compared to $157.4 million in the prior year. Revenue from the ready-mixed concrete segment increased $20.9 million, or 14.6%, driven by both volume and pricing. The Company’s
1
ready-mixed concrete sales volume was 1.5 million cubic yards, up 6.9% over prior year. Ready-mixed concrete average sales price per cubic yard increased $7.56, or 7.4%, to $110.27 compared to $102.71 in the prior year. Aggregate products segment revenue increased $3.0 million, or 29.5%, to $13.1 million on increased sales volume of 199 thousand tons, an improvement of 20.9% over prior year.
Consolidated gross profit increased $5.7 million with an 80 basis point expansion in margin year-over-year. Consolidated adjusted EBITDA of $22.2 million, increased $5.4 million with a 170 basis point expansion in margin year-over-year. Ready-mixed concrete adjusted EBITDA of $23.3 million, increased 29.0% with a 160 basis point expansion in margin and an 80 basis point improvement in raw material spread year-over-year. Aggregate products adjusted EBITDA of $3.3 million, increased 53.5% with a 390 basis point expansion in margin year-over-year.
Selling, general and administrative (“SG&A”) expenses were $14.4 million compared to $16.2 million in the prior year. As a percentage of total revenue, SG&A expenses decreased to 8.0%, compared to 10.3% in the prior year.
During the second quarter of 2014, the Company recorded a $1.7 million non-cash loss related to derivatives. This non-cash loss was comprised of fair value changes in the Company's warrants. This compares to a non-cash loss of $1.9 million during the second quarter of 2013 resulting from fair value changes in the Company's warrants and convertible notes. These changes were due to the increase in the price of the Company's stock during the second quarters of 2014 and 2013.
The Company’s free cash flow in the second quarter of 2014 was $(1.3) million, compared to $8.7 million in the prior year. The decrease in free cash flow was due to $3.5 million of increased capital expenditures over the prior year, changes in trade working capital and the timing of our new senior secured notes interest payment, which is paid semi-annually compared to interest on our previous notes which was paid quarterly. The increase in capital expenditures was due to higher spending on mixer trucks, ready-mixed plant capacity expansions in California and plant equipment and improvements, all to support the growing demand in our markets.
The Company’s net debt at June 30, 2014 was $126.4 million, up $24.9 million from December 31, 2013. The increase in net debt was due to a reduction in cash and cash equivalents during the first half of 2014, primarily due to changes in trade working capital, increased capital expenditures, the green-fielding of the Red River sand and gravel operation and the acquisition of two ready-mixed concrete plants in west Texas. Net debt at June 30, 2014 was comprised of total debt of $213.3 million, less cash and cash equivalents of $86.9 million.
Ready-mixed backlog at the end of the second quarter of 2014 was approximately 4.2 million cubic yards, up 21.7% compared to the end of the second quarter of 2013 and up 5.4% since the beginning of the year.
CONFERENCE CALL
U.S. Concrete has scheduled a conference call for Thursday, August 7, 2014 at 10:00 a.m. Eastern time, to review its second quarter 2014 results. To participate in the call, dial Toll-free: (877) 312-8806 – Conference ID: 79688921 at least ten minutes before the conference call begins and ask for the U.S. Concrete conference call. A replay of the conference call will be available after the call under the investor relations section of the Company’s website at www.us-concrete.com.
Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by accessing www.us-concrete.com. To listen to the live call on the Web, please visit the Web site at least 15 minutes early
2
to register, download and install any necessary audio software. For those who cannot listen to the live Web cast, an archive will be available shortly after the call under the investor relations section of the Company’s website at www.us-concrete.com.
USE OF NON-GAAP FINANCIAL MEASURES
This press release uses the non-GAAP financial measures “adjusted EBITDA,” “adjusted net income (loss),” “adjusted EBITDA margin,” “free cash flow” and “net debt.” The Company has included adjusted EBITDA and adjusted EBITDA margin in this press release because it is widely used by investors for valuation and comparing the Company’s financial performance with the performance of other building material companies. The Company also uses adjusted EBITDA and adjusted EBITDA margin to monitor and compare the financial performance of its operations. Adjusted EBITDA does not give effect to the cash the Company must use to service its debt or pay its income taxes, and thus does not reflect the funds actually available for capital expenditures. In addition, the Company’s presentation of adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures that other companies report. The Company considers free cash flow to be an important indicator of its ability to service debt and generate cash for acquisitions and other strategic investments. The Company believes that net debt is useful to investors as a measure of its financial position. The Company presents adjusted net income (loss) and adjusted net income (loss) per share to provide more consistent information for investors to use when comparing operating results for the second quarter of 2014 to the second quarter of 2013. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported operating results or cash flow from operations or any other measure of performance as determined in accordance with GAAP. See the attached “Additional Statistics” for reconciliation of each of these non-GAAP financial measures to the most comparable GAAP financial measures for the quarters ended June 30, 2014 and 2013.
ABOUT U.S. CONCRETE
U.S. Concrete services the construction industry in several major markets in the United States through its two business segments: ready-mixed concrete and aggregate products. The Company has 104 fixed and 10 portable ready-mixed concrete plants and nine producing aggregates facilities. During 2013, our plant facilities produced approximately 5.2 million cubic yards of ready-mixed concrete and approximately 3.6 million tons of aggregates. For more information on U.S. Concrete, visit www.us-concrete.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
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. These forward-looking statements speak only as of the date of this press release. The Company disclaims any obligation to update these statements and cautions you not to rely unduly on them. Forward-looking information includes, but is not limited to, statements regarding: the stability of the business; encouraging nature of third quarter volume and pricing increases; ready-mix backlog; ability to maintain our cost structure and the improvements achieved during our restructuring and monitor fixed costs; ability to maximize liquidity, manage variable costs, control capital spending and monitor working capital usage; and the adequacy of current liquidity. Although U.S. Concrete believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that those 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; the level of activity in the construction industry; the ability of U.S. Concrete to complete acquisitions and to effectively integrate the operations of acquired companies; development of adequate management infrastructure; departure of key personnel; access to labor; union disruption; competitive factors; government regulations; exposure to environmental and other liabilities; the cyclical and seasonal nature of U.S. Concrete's business; adverse weather conditions; the availability and pricing of raw materials; the availability of refinancing alternatives; 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 or outcomes may vary materially from those expected. These
3
risks, as well as others, are discussed in greater detail in U.S. Concrete's filings with the Securities and Exchange Commission, including U.S. Concrete's Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent Quarterly Reports on Form 10-Q.
(Tables Follow)
4
U.S. CONCRETE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | $ | 180,358 | $ | 157,390 | $ | 326,615 | $ | 282,815 | |||||||
Cost of goods sold before depreciation, depletion and amortization | 145,324 | 128,065 | 269,849 | 236,657 | |||||||||||
Selling, general and administrative expenses | 14,388 | 16,188 | 28,031 | 30,533 | |||||||||||
Depreciation, depletion and amortization | 5,484 | 4,540 | 10,382 | 9,365 | |||||||||||
Loss (gain) on sale of assets | 46 | (31 | ) | (303 | ) | (26 | ) | ||||||||
Income from operations | 15,116 | 8,628 | 18,656 | 6,286 | |||||||||||
Interest expense, net | 5,055 | 2,588 | 10,065 | 5,360 | |||||||||||
Derivative loss | (1,748 | ) | (1,916 | ) | (2,371 | ) | (20,362 | ) | |||||||
(Loss) gain on extinguishment of debt | — | (6 | ) | — | 4,304 | ||||||||||
Other income, net | 537 | 484 | 1,026 | 977 | |||||||||||
Income (loss) from continuing operations before income taxes | 8,850 | 4,602 | 7,246 | (14,155 | ) | ||||||||||
Income tax expense (benefit) | 730 | (3,069 | ) | 752 | (8,266 | ) | |||||||||
Income (loss) from continuing operations | 8,120 | 7,671 | 6,494 | (5,889 | ) | ||||||||||
(Loss) income from discontinued operations, net of taxes | (259 | ) | (996 | ) | 214 | (1,800 | ) | ||||||||
Net income (loss) | $ | 7,861 | $ | 6,675 | $ | 6,708 | $ | (7,689 | ) | ||||||
Basic income (loss) per share: | |||||||||||||||
Income (loss) from continuing operations | $ | 0.60 | $ | 0.61 | $ | 0.48 | $ | (0.47 | ) | ||||||
(Loss) income from discontinued operations, net of taxes | (0.02 | ) | (0.08 | ) | 0.01 | (0.15 | ) | ||||||||
Net income (loss) per share – basic | $ | 0.58 | $ | 0.53 | $ | 0.49 | $ | (0.62 | ) | ||||||
Diluted income (loss) per share: | |||||||||||||||
Income (loss) from continuing operations | $ | 0.59 | $ | 0.57 | $ | 0.47 | $ | (0.47 | ) | ||||||
(Loss) income from discontinued operations, net of taxes | (0.02 | ) | (0.07 | ) | 0.01 | (0.15 | ) | ||||||||
Net income (loss) per share – diluted | $ | 0.57 | $ | 0.50 | $ | 0.48 | $ | (0.62 | ) | ||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 13,557 | 12,550 | 13,562 | 12,455 | |||||||||||
Diluted | 13,872 | 13,634 | 13,874 | 12,455 | |||||||||||
5
U.S. CONCRETE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, 2014 | December 31, 2013 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 86,873 | $ | 112,667 | |||
Trade accounts receivable, net of allowances of $2,470 and $2,813 as of June 30, 2014 and December 31, 2013, respectively | 112,109 | 92,163 | |||||
Inventories | 28,069 | 27,610 | |||||
Deferred income taxes | 1,210 | 708 | |||||
Prepaid expenses | 4,304 | 3,416 | |||||
Other receivables | 3,059 | 3,205 | |||||
Assets held for sale | 4,991 | — | |||||
Other current assets | 533 | 2,457 | |||||
Total current assets | 241,148 | 242,226 | |||||
Property, plant and equipment, net of accumulated depreciation, depletion, and amortization of $61,996 and $54,694 as of June 30, 2014 and December 31, 2013, respectively | 148,552 | 138,560 | |||||
Goodwill | 14,496 | 11,646 | |||||
Intangible assets, net | 12,333 | 13,073 | |||||
Other assets | 8,486 | 8,485 | |||||
Total assets | $ | 425,015 | $ | 413,990 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 42,872 | $ | 38,518 | |||
Accrued liabilities | 45,657 | 42,950 | |||||
Current maturities of long-term debt | 3,698 | 3,990 | |||||
Liabilities held for sale | 557 | — | |||||
Derivative liabilities | 24,061 | 21,690 | |||||
Total current liabilities | 116,845 | 107,148 | |||||
Long-term debt, net of current maturities | 209,556 | 210,154 | |||||
Other long-term obligations and deferred credits | 6,086 | 7,921 | |||||
Deferred income taxes | 5,755 | 5,040 | |||||
Total liabilities | 338,242 | 330,263 | |||||
Commitments and contingencies (Note 16) | |||||||
Equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 15 | 14 | |||||
Additional paid-in capital | 154,591 | 152,695 | |||||
Accumulated deficit | (56,617 | ) | (63,325 | ) | |||
Treasury stock, at cost | (11,216 | ) | (5,657 | ) | |||
Total stockholders’ equity | 86,773 | 83,727 | |||||
Total liabilities and equity | $ | 425,015 | $ | 413,990 | |||
6
U.S. CONCRETE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Six months ended June 30, | |||||||
2014 | 2013 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 6,708 | $ | (7,689 | ) | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||
Depreciation, depletion and amortization | 10,382 | 9,440 | |||||
Debt issuance cost amortization | 819 | 1,389 | |||||
Gain on extinguishment of debt | — | (4,304 | ) | ||||
Amortization of facility exit costs | — | (106 | ) | ||||
Amortization of discount on long-term incentive plan and other accrued interest | 202 | 252 | |||||
Net loss on derivative | 2,371 | 20,362 | |||||
Net (gain) loss on sale of assets | (943 | ) | 204 | ||||
Deferred income taxes | 674 | (8,644 | ) | ||||
Deferred rent | — | 516 | |||||
Provision for doubtful accounts and customer disputes | 179 | 637 | |||||
Stock-based compensation | 1,550 | 3,545 | |||||
Changes in assets and liabilities, excluding effects of acquisitions: | |||||||
Accounts receivable | (21,075 | ) | (18,139 | ) | |||
Inventories | (844 | ) | (367 | ) | |||
Prepaid expenses and other current assets | (690 | ) | 2,313 | ||||
Other assets and liabilities | (297 | ) | (1,377 | ) | |||
Accounts payable and accrued liabilities | 7,268 | 11,379 | |||||
Net cash provided by operating activities | 6,304 | 9,411 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property, plant and equipment | (19,894 | ) | (8,116 | ) | |||
Payments for acquisitions | (4,363 | ) | — | ||||
Proceeds from disposals of property, plant and equipment | 2,487 | 173 | |||||
Payments for disposal of business units | — | (1,866 | ) | ||||
Net cash used in investing activities | (21,770 | ) | (9,809 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from revolver borrowings | 159 | 68,474 | |||||
Repayments of revolver borrowings | (159 | ) | (60,774 | ) | |||
Proceeds from exercise of stock options and warrants | 346 | 122 | |||||
Payments of other long-term obligations | (2,250 | ) | — | ||||
Payments for other financing | (2,169 | ) | (921 | ) | |||
Debt issuance costs | (696 | ) | (1,970 | ) | |||
Payments for share repurchases | (4,824 | ) | — | ||||
Other treasury share purchases | (735 | ) | (2,135 | ) | |||
Net cash (used in) provided by financing activities | (10,328 | ) | 2,796 | ||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (25,794 | ) | 2,398 | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 112,667 | 4,751 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 86,873 | 7,149 | |||||
7
U.S. CONCRETE, INC. AND SUBSIDIARIES
SELECTED REPORTABLE SEGMENT INFORMATION
(in thousands)
(Unaudited)
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
Ready-mixed concrete | ||||||||||||||||
Sales to external customers | $ | 164,175 | $ | 143,299 | $ | 298,101 | $ | 258,501 | ||||||||
Aggregate products | ||||||||||||||||
Sales to external customers | 7,327 | 5,497 | 11,944 | 8,698 | ||||||||||||
Intersegment sales | 5,797 | 4,639 | 9,425 | 7,958 | ||||||||||||
Total aggregate products | 13,124 | 10,136 | 21,369 | 16,656 | ||||||||||||
Total reportable segment revenue | 177,299 | 153,435 | 319,470 | 275,157 | ||||||||||||
Other products and eliminations | 3,059 | 3,955 | 7,145 | 7,658 | ||||||||||||
Total revenue | $ | 180,358 | $ | 157,390 | $ | 326,615 | $ | 282,815 | ||||||||
Reportable Segment Adjusted EBITDA: | ||||||||||||||||
Ready-mixed concrete | $ | 23,269 | $ | 18,033 | $ | 37,001 | $ | 27,206 | ||||||||
Aggregate products | 3,266 | 2,127 | 3,345 | 1,545 | ||||||||||||
Total reportable segment Adjusted EBITDA | $ | 26,535 | $ | 20,160 | $ | 40,346 | $ | 28,751 | ||||||||
Reconciliation of reportable segment Adjusted EBITDA to income (loss) from continuing operations before income taxes: | ||||||||||||||||
Total reportable segment Adjusted EBITDA | $ | 26,535 | $ | 20,160 | $ | 40,346 | $ | 28,751 | ||||||||
Other products and eliminations income from operations | 783 | 1,017 | 1,328 | 1,723 | ||||||||||||
Corporate overhead | (7,123 | ) | (8,560 | ) | (13,442 | ) | (15,798 | ) | ||||||||
Depreciation, depletion and amortization for reportable segments | (4,668 | ) | (3,739 | ) | (8,775 | ) | (7,793 | ) | ||||||||
Interest expense, net | (5,055 | ) | (2,588 | ) | (10,065 | ) | (5,360 | ) | ||||||||
Corporate (loss) gain on early extinguishment of debt | — | (6 | ) | — | 4,304 | |||||||||||
Corporate derivative loss | (1,748 | ) | (1,916 | ) | (2,371 | ) | (20,362 | ) | ||||||||
Corporate and other products and eliminations other income, net | 126 | 234 | 225 | 380 | ||||||||||||
Income (loss) from continuing operations before income taxes | $ | 8,850 | $ | 4,602 | $ | 7,246 | $ | (14,155 | ) | |||||||
8
U.S. CONCRETE, INC.
ADDITIONAL STATISTICS
(Unaudited)
We report our financial results in accordance with generally accepted accounting principles in the United States (“GAAP”). However, our management believes that certain non-GAAP performance measures and ratios, which our management uses in managing our business, may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. See the table below for (1) presentations of our adjusted EBITDA, adjusted EBITDA margin and Free Cash Flow for the quarters ended June 30, 2014 and 2013, and Net Debt as of June 30, 2014 and December 31, 2013 and (2) corresponding reconciliations to GAAP financial measures for the quarters ended June 30, 2014 and 2013 and as of June 30, 2014 and December 31, 2013. We have also provided below (1) the impact of non-cash stock compensation expense, derivative losses, gain (loss) on extinguishment of debt, officer severance and expenses related to the Company’s relocation of the corporate headquarters on net income (loss) and net income (loss) per share and (2) corresponding reconciliations to GAAP financial measures for the quarters ended June 30, 2014 and 2013. We have also shown below certain Ready-Mixed Concrete Statistics for the quarters ended June 30, 2014 and 2013.
We define adjusted EBITDA as our net income (loss) from continuing operations, plus the provision (benefit) for income taxes, net interest expense, depreciation, depletion and amortization, non-cash stock compensation expense, derivative loss, gain (loss) on extinguishment of debt, officer severance and expense related to the Company’s relocation of the corporate headquarters. We define adjusted EBITDA margin as the amount determined by dividing adjusted EBITDA by total revenue. We have included adjusted EBITDA and adjusted EBITDA margin in the accompanying tables 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 adjusted EBITDA and adjusted EBITDA margin to monitor and compare the financial performance of our operations. 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 adjusted EBITDA may not be comparable to similarly titled measures other companies report.
We define adjusted net income (loss) and adjusted net income (loss) per share as net income (loss) and net income (loss) per share excluding non-cash stock compensation expense, derivative loss, gain (loss) on extinguishment of debt, officer severance and expense related to the Company’s relocation of the corporate headquarters. We present adjusted net income (loss) and adjusted net income (loss) per share to provide more consistent information for investors to use when comparing operating results for the quarters ended June 30, 2014 and 2013.
We define Free Cash Flow as cash provided by (used in) operations less capital expenditures for property, plant and equipment, net of disposals. We consider Free Cash Flow to be an important indicator of our ability to service our debt and generate cash for acquisitions and other strategic investments.
We define Net Debt as total debt, including current maturities and capital lease obligations, minus cash and cash equivalents. We believe that Net Debt is useful to investors as a measure of our financial position.
Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported operating results or cash flow from operations or any other measure of performance prepared in accordance with GAAP.
9
Three months ended | |||||||
June 30, | |||||||
2014 | 2013 | ||||||
(In thousands, except average price amounts and net income (loss) per share) | |||||||
Ready-Mixed Concrete Statistics: | |||||||
Average price per cubic yard (in dollars) | $ | 110.27 | $ | 102.71 | |||
Volume in cubic yards | 1,486 | 1,390 | |||||
Aggregate Products Statistics: | |||||||
Average price per ton (in dollars) | $ | 9.63 | $ | 8.97 | |||
Sales volume in tons | 1,151 | 952 | |||||
Adjusted Net Income and EPS: | |||||||
Net Income | $ | 7,861 | $ | 6,675 | |||
Add: Derivative loss | 1,748 | 1,916 | |||||
Less: Loss on extinguishment of debt | — | 6 | |||||
Add: Non-cash stock compensation expense | 1,020 | 2,787 | |||||
Add: Expenses related to corporate headquarters’ relocation | — | 288 | |||||
Adjusted net income | $ | 10,629 | $ | 11,672 | |||
Net income per diluted share | $ | 0.57 | $ | 0.50 | |||
Impact of derivative loss | 0.13 | 0.14 | |||||
Impact of loss on extinguishment of debt | — | — | |||||
Impact of non-cash stock compensation expense | 0.07 | 0.20 | |||||
Impact of expenses related to corporate headquarters’ relocation | — | 0.02 | |||||
Adjusted net income per diluted share | $ | 0.77 | $ | 0.86 | |||
Adjusted EBITDA reconciliation: | |||||||
Net income from continuing operations | $ | 8,120 | $ | 7,671 | |||
Income tax expense (benefit) | 730 | (3,069 | ) | ||||
Interest expense, net | 5,055 | 2,588 | |||||
Derivative loss | 1,748 | 1,916 | |||||
Depreciation, depletion and amortization | 5,484 | 4,540 | |||||
Loss on extinguishment of debt | — | 6 | |||||
Non-cash stock compensation expense | 1,020 | 2,787 | |||||
Expenses related to corporate headquarters’ relocation | — | 288 | |||||
Adjusted EBITDA | $ | 22,157 | $ | 16,727 | |||
Adjusted EBITDA margin | 12.3 | % | 10.6 | % | |||
Free Cash Flow reconciliation: | |||||||
Net cash provided by operating activities | $ | 8,231 | $ | 14,888 | |||
Less: capital expenditures | (9,729 | ) | (6,268 | ) | |||
Plus: proceeds from the sale of property, plant and equipment | 164 | 62 | |||||
Free Cash Flow | $ | (1,334 | ) | $ | 8,682 | ||
As of | As of | ||||||
June 30, 2014 | December 31, 2013 | ||||||
Net Debt reconciliation: | |||||||
Total debt, including current maturities and capital lease obligations | $ | 213,254 | $ | 214,144 | |||
Less: cash and cash equivalents | 86,873 | 112,667 | |||||
Net Debt | $ | 126,381 | $ | 101,477 | |||
10
Six months ended | |||||||
June 30, | |||||||
2014 | 2013 | ||||||
(In thousands, except average price amounts and net income (loss) per share) | |||||||
Ready-Mixed Concrete Statistics: | |||||||
Average price per cubic yard (in dollars) | $ | 108.56 | $ | 102.12 | |||
Volume in cubic yards | 2,740 | 2,523 | |||||
Aggregate Products Statistics: | |||||||
Average price per ton (in dollars) | $ | 9.29 | $ | 8.70 | |||
Sales volume in tons | 1,958 | 1,647 | |||||
Adjusted Net Income and EPS: | |||||||
Net Income (loss) | $ | 6,708 | $ | (7,689 | ) | ||
Add: Derivative loss | 2,371 | 20,362 | |||||
Add: Gain on extinguishment of debt | — | (4,304 | ) | ||||
Add: Non-cash stock compensation expense | 1,550 | 3,545 | |||||
Add: Expenses related to corporate headquarters’ relocation | — | 512 | |||||
Adjusted net income | $ | 10,629 | $ | 12,426 | |||
Net income (loss) per diluted share (1) | $ | 0.48 | $ | (0.62 | ) | ||
Impact of derivative loss | 0.17 | 1.30 | |||||
Gain on extinguishment of debt | — | (0.28 | ) | ||||
Impact of non-cash stock compensation expense | 0.11 | 0.23 | |||||
Impact of expenses related to corporate headquarters’ relocation | — | 0.03 | |||||
Adjusted net income per diluted share | $ | 0.77 | $ | 0.88 | |||
Adjusted EBITDA reconciliation: | |||||||
Net income (loss) from continuing operations | $ | 6,494 | $ | (5,889 | ) | ||
Income tax expense (benefit) | 752 | (8,266 | ) | ||||
Interest expense, net | 10,065 | 5,360 | |||||
Derivative loss | 2,371 | 20,362 | |||||
Depreciation, depletion and amortization | 10,382 | 9,365 | |||||
Gain on extinguishment of debt | — | (4,304 | ) | ||||
Non-cash stock compensation expense | 1,550 | 3,545 | |||||
Expenses related to corporate headquarters’ relocation | — | 512 | |||||
Adjusted EBITDA | $ | 31,614 | $ | 20,685 | |||
Adjusted EBITDA margin | 9.7 | % | 7.3 | % | |||
Free Cash Flow reconciliation: | |||||||
Net cash provided by operations | $ | 6,304 | $ | 9,411 | |||
Less: capital expenditures | (19,894 | ) | (8,116 | ) | |||
Plus: proceeds from the sale of property, plant and equipment | 2,487 | 173 | |||||
Less: payments made in the disposal of business units | — | (1,866 | ) | ||||
Free Cash Flow | $ | (11,103 | ) | $ | (398 | ) | |
(1) Net loss per diluted share for the six months ended June 30, 2013 excludes common stock equivalents of 2.7 million shares for our Convertible Notes and 0.5 million shares from our restricted stock that are included in adjusted net income per diluted share as their impact is anti-dilutive based on the net loss for the period.
11