U.S. Concrete, Inc. (USCR) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $6.88 million, or $ 0.42 a share in the quarter, against a net loss of $10.03 million, or $0.68 a share in the last year period. On the other hand, adjusted net income from continuing operations for the quarter stood at $9.04 million, or $0.55 a share compared with $4.98 million or $0.31 a share, a year ago.
Revenue during the quarter grew 22.07 percent to $299.13 million from $245.04 million in the previous year period. Gross margin for the quarter expanded 230 basis points over the previous year period to 21.19 percent. Total expenses were 92.89 percent of quarterly revenues, down from 95.86 percent for the same period last year. This has led to an improvement of 298 basis points in operating margin to 7.11 percent.
Operating income for the quarter was $21.28 million, compared with $10.14 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $41.07 million compared with $25.64 million in the prior year period. At the same time, adjusted EBITDA margin improved 327 basis points in the quarter to 13.73 percent from 10.47 percent in the last year period.
William J. Sandbrook, President and Chief Executive Officer of U.S. Concrete, stated, "Our extremely strong first quarter results demonstrate that we continue to capitalize on the strong demand trends and our leadership positions that we have created in our major metropolitan markets. Our results for the quarter are even more satisfying in light of near record rainfall in California which negatively affected our operations in the Bay Area."
Operating cash flow improves significantly
U.S. Concrete, Inc. has generated cash of $29.54 million from operating activities during the quarter, up 47.43 percent or $9.50 million, when compared with the last year period.
The company has spent $12.67 million cash to meet investing activities during the quarter as against cash outgo of $29.74 million in the last year period. It has incurred net capital expenditure of $10.23 million on net basis during the quarter, down 8.50 percent or $0.95 million from year ago period.
Cash flow from financing activities was $199.18 million for the quarter, up 1,263.38 percent or $184.57 million, when compared with the last year period.
Cash and cash equivalents stood at $291.82 million as on Mar. 31, 2017, up 3,203.04 percent or $282.99 million from $8.84 million on Mar. 31, 2016.
Working capital turns positive
Working capital of U.S. Concrete, Inc. has turned positive to $297.27 million on Mar. 31, 2017 from negative $15.25 million on Mar. 31, 2016. Current ratio was at 2.17 as on Mar. 31, 2017, up from 0.94 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 44 days for the last year period. Days sales outstanding went down to 58 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 8 days for the quarter compared with 17 days for the previous year period. At the same time, days payable outstanding went down to 35 days for the quarter from 37 for the same period last year.
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