U.S. Concrete, Inc. (USCR) has reported a 2,244.41 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $37.96 million, or $2.34 a share in the quarter, compared with $1.62 million, or $0.10 a share for the same period last year. On the other hand, adjusted income from continuing operartion for the quarter stood at $19.32 million, or $1.19 a share compared with $18.74 million or $1.18 a share, a year ago.
Revenue during the quarter grew 11.34 percent to $328.59 million from $295.11 million in the previous year period. Gross margin for the quarter contracted 35 basis points over the previous year period to 22.86 percent. Total expenses were 89 percent of quarterly revenues, up from 88.68 percent for the same period last year. That has resulted in a contraction of 32 basis points in operating margin to 11 percent.
Operating income for the quarter was $36.16 million, compared with $33.41 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $53.98 million compared with $49.25 million in the prior year period. At the same time, adjusted EBITDA margin contracted 26 basis points in the quarter to 16.43 percent from 16.69 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 has led to the record results we are reporting this quarter. During the third quarter, consolidated revenue increased 11.3% to $328.6 million on both higher volume and selling prices in both ready-mixed concrete and aggregates. Our leadership position in our markets enabled us to achieve our 22nd straight quarter of year-over-year ready-mixed concrete price increases and a 6.6% increase in our year-over-year ready-mixed concrete volume this quarter."
Operating cash flow improves significantly
U.S. Concrete, Inc. has generated cash of $88.50 million from operating activities during the nine month period, up 56.02 percent or $31.78 million, when compared with the last year period.
The company has spent $153.23 million cash to meet investing activities during the nine month period as against cash outgo of $120.39 million in the last year period. It has incurred net capital expenditure of $29.12 million on net basis during the nine month period, up 140.67 percent or $17.02 million from year ago period.
Cash flow from financing activities was $126.82 million for the nine month period, up 201.47 percent or $84.75 million, when compared with the last year period.
Cash and cash equivalents stood at $66.02 million as on Sep. 30, 2016, up 666.96 percent or $57.41 million from $8.61 million on Sep. 30, 2015.
Working capital increases sharply
U.S. Concrete, Inc. has recorded an increase in the working capital over the last year. It stood at $74.33 million as at Sep. 30, 2016, up 127.81 percent or $41.70 million from $32.63 million on Sep. 30, 2015. Current ratio was at 1.29 as on Sep. 30, 2016, up from 1.15 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 25 days for the quarter from 39 days for the last year period. Days sales outstanding went down to 54 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 8 days for the quarter compared with 14 days for the previous year period. At the same time, days payable outstanding went up to 36 days for the quarter from 34 for the same period last year.
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