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U.S. Concrete Announces 2012 Fourth Quarter and Full Year Results



U.S. Concrete Announces 2012 Fourth Quarter and Full Year Results

Full Year Highlights

  * Consolidated revenue increased 19.1% to $531.0 million
  * Ready-mixed concrete volume rose 19.6% to 4.8 million cubic yards
  * Ready-mixed concrete average sales price improved 3.3%
  * Adjusted EBITDA increased 225.5% to $24.9 million

Fourth Quarter 2012 Year-over-Year Highlights

  * Consolidated revenue increased 14.5% to $134.9 million
  * Ready-mixed concrete volume rose 15.7% to 1.2 million cubic yards
  * Ready-mixed concrete average sales price improved 1.1%
  * Adjusted EBITDA increased 24.3% to $5.7 million

EULESS, Texas, March 7, 2013 (GLOBE NEWSWIRE) -- U.S. Concrete, Inc.
(Nasdaq:USCR) today reported a net loss of $12.0 million, or $(0.98) per
diluted share, for the fourth quarter of 2012, compared to net income of $0.9
million, or $0.07 per diluted share, in the fourth quarter of 2011. Included
in the fourth quarter 2012 net loss amount was a non-cash loss related to the
fair value change in the Company's derivatives of $13.2 million, $0.2 million
of expense related to the recently completed relocation of the corporate
headquarters to Euless, Texas and $0.2 million of non-cash stock compensation
expense. Included in fourth quarter 2011 net income was a non-cash gain
related to the fair value change in the Company's derivatives of $3.6 million,
$0.4 million of expense related to the departure of our former President and
Chief Executive Officer as well as the hiring of our new President and Chief
Executive Officer in August 2011, and $0.7 million of non-cash stock
compensation expense. Excluding the loss on derivatives, relocation related
expenses, and non-cash stock compensation expense, net income and net earnings
per diluted share for the fourth quarter of 2012 would have been $1.6 million,
or $0.13 per diluted share. Excluding the gain on derivatives, expenses
related to the departure of the Company's former President and Chief Executive
Officer and the hiring of our new President and Chief Executive Officer, and
non-cash stock compensation expense, net loss and net loss per diluted share
for the fourth quarter of 2011 would have been $1.6 million, or $0.14 per
diluted share.

William J. Sandbrook, President and Chief Executive Officer of U.S. Concrete,
stated, "We are pleased with our improved performance in 2012. While much
credit goes to generally benign weather patterns and improved construction
activity in our markets, our favorable results arose from the hard work,
professionalism and commitment of our U.S. Concrete team of dedicated
employees."

CHANGE IN SEGMENT REPORTING

During the 4th quarter of 2012 the Company made changes to better align its
operating and reportable segments with the overall strategy and the manner in
which the business is organized and managed. The Company will report its
results across the following segments: (1) ready-mixed concrete and (2)
aggregate products.

The previously reported Precast concrete products segment was eliminated when
six of the Company's seven precast plants were sold during 2012. The remaining
precast plant, as well as other products and services that were previously
associated with the "ready-mixed concrete and concrete-related products"
segment, are no longer associated with a reportable segment. These other
products and services include the Company's building materials stores, hauling
operations, lime slurry, Aridus® rapid-drying concrete technology, brokered
product sales and recycled aggregates operations.

All historical segment results have been reclassified to conform with these
changes and segment results for the quarters and full years ended December 31,
2011 and December 31, 2012 are shown in the included tables below.

FOURTH QUARTER 2012 RESULTS

Consolidated revenue in the fourth quarter of 2012 increased 14.5% to $134.9
million, compared to $117.8 million in the fourth quarter of 2011. Revenue
from the ready-mixed concrete segment increased $17.5 million, or 16.8%, to
$121.4 million for the fourth quarter of 2012, compared to $103.9 million in
the fourth quarter of 2011. The Company's ready-mixed sales volume for the
fourth quarter of 2012 was approximately 1.23 million cubic yards, up 15.7%
from the 1.06 million cubic yards of ready-mixed concrete we sold in the
fourth quarter of 2011. The Company's consolidated average sales price per
cubic yard of ready-mixed concrete increased 1.1% during the fourth quarter of
2012, as compared to the fourth quarter of 2011. Aggregate products segment
revenue increased $2.2 million, or 34.2%, to $8.7 million for the fourth
quarter of 2012 compared to $6.5 million during the fourth quarter of 2011.

The Company's adjusted earnings before interest, income taxes, depreciation
and amortization ("EBITDA") was $5.7 million in the fourth quarter of 2012,
compared to adjusted EBITDA of $4.6 million in the fourth quarter of 2011.
Adjusted EBITDA margin, which is adjusted EBITDA as a percentage of revenue,
for the fourth quarter of 2012 was 4.3 percent, compared to 3.9 percent in the
fourth quarter of 2011.

The Company defines adjusted EBITDA as net income (loss) from continuing
operations plus expense (benefit) for income taxes, net interest expense,
depreciation, depletion and amortization, and excludes non-cash stock
compensation expense, derivative loss (income), loss on extinguishment of
debt, expense related to the Company's relocation of the corporate
headquarters, and expenses related to the departure of the Company's former
President and Chief Executive Officer and the hiring of the new President and
CEO. Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation of
adjusted EBITDA, free cash flow and net debt (which are other non-GAAP
financial measures used in this earnings release) to the most directly
comparable GAAP financial measures, please see the attached "Additional
Statistics" schedule.

Selling, general and administrative expenses ("SG&A") were approximately $16.7
million in the fourth quarter of 2012 compared to $12.1 million in the fourth
quarter of 2011. The higher costs for the fourth quarter of 2012 were
primarily due to expenses related to the recently completed relocation of the
corporate headquarters, incentive compensation accruals, professional fees
related to acquisition and divestiture activities and medical insurance costs.

During the fourth quarter of 2012, the Company recorded a $13.2 million
non-cash loss on derivatives. This non-cash loss was comprised of $10.9
million from fair value changes in the embedded derivative related to the
Company's Convertible Notes and $2.3 million from fair value changes in the
Company's warrants. This is compared to a non-cash gain of $3.6 million during
the fourth quarter of 2011. These changes are due primarily to the increase in
the price of the Company's common stock during the fourth quarter of 2012 and
the decrease in the price of the Company's common stock during the fourth
quarter of 2011.

The Company provided cash from operations of $18.7 million for the fourth
quarter of 2012, compared to $8.2 million for the fourth quarter of 2011. The
increase in the fourth quarter of 2012 was primarily the result of timing in
working capital changes. The Company's free cash flow for the fourth quarter
of 2012 was $22.4 million, compared to $9.5 million for the fourth quarter of
2011. We define "free cash flow" as cash provided by (used in) operations less
capital expenditures for property, plant and equipment, net of proceeds from
disposals. Free cash flow for the fourth quarter of 2012 includes $4.3 million
in proceeds from the sale of our Arizona pre-cast operations. Capital
expenditures increased $3.5 million to $3.9 million for the fourth quarter of
2012, as compared to $0.4 million for the fourth quarter of 2011.  

The Company's net debt at December 31, 2012 was approximately $58.7 million,
up $1.8 million from December 31, 2011. We define net debt as total debt,
including current maturities and capital lease obligations, minus cash and
cash equivalents. The increase in the Company's net debt was due primarily to
an increase in the balance of the Convertible Notes from amortization of the
discount on the notes and the addition of seller financed debt from
acquisitions, partially offset by a decrease in the balance of our revolving
credit facility at December 31, 2012. Net debt at December 31, 2012 was
comprised of total debt of $63.5 million, less cash and cash equivalents of
$4.8 million. 

Ready-mix backlog at the end of the fourth quarter of 2012 was 3.1 million
yards, up approximately 5.7% compared to the end of the fourth quarter of
2011.

CONFERENCE CALL

U.S. Concrete has scheduled a conference call for Thursday, March 7, 2013 at
10:00 a.m., Eastern Time, to review its fourth quarter and full year 2012
results. To participate in the call, dial Toll-free: 877-312-8806 – Conference
ID: 15780570 at least ten minutes before the conference call begins and ask
for the U.S. Concrete conference call. A replay of the conference call 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 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 EBITDA margin," "free cash flow" and "net debt." The impact of
non-cash stock compensation expense, derivative income and losses, loss on
extinguishment of debt, expenses related to the Company's relocation of the
corporate headquarters and expenses related to the departure of the former
President and CEO and hiring of new President and CEO on net loss and net loss
per share also represent non-GAAP financial measures. 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 the impact of non-cash stock compensation expense, derivative
income and losses, loss on extinguishment of debt, expenses related to the
Company's relocation of the corporate headquarters and expenses related to the
departure of the former President and CEO and hiring of new President and CEO
on net loss and net loss per share to provide more consistent information for
investors to use when comparing operating results for the fourth quarter of
2012 to the fourth quarter of 2011. 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 and
full years ended December 31, 2012 and 2011.

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 101 fixed and 11 portable ready-mixed
concrete plants and seven producing aggregates facilities. During 2012, these
plant facilities produced approximately 4.8 million cubic yards of ready-mixed
concrete and 3.3 million tons of aggregates. For more information on U.S.
Concrete, visit www.us-concrete.com.

The U.S. Concrete logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=17026

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
fourth 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 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, 2011 and
subsequent Quarterly Reports on Form 10-Q.

                               (Tables Follow)

 
U.S. CONCRETE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
 
                        Three months   Three months  Year Ended   Year Ended
                        ended December ended         December 31, December 31,
                        31,            December 31,  2012         2011
                        2012           2011
Revenue                  $ 134,908      $ 117,788     $ 531,047    $ 445,804
Cost of goods sold
before depreciation,     113,982        103,529       455,825      393,719
depletion and
amortization
Selling, general and     16,691         12,107        58,978       49,152
administrative expenses
Depreciation, depletion  4,606          3,929         15,676       18,586
and amortization
Gain on sale of assets   (117)          (1,100)       (649)        (1,221)
(Loss) income from       (254)          (677)         1,217        (14,432)
operations
Interest expense, net    (2,728)        (2,860)       (11,344)     (11,057)
Loss on early            —              —             (2,630)      —
extinguishment of debt
Derivative (loss)        (13,181)       3,564         (19,725)     13,422
income
Other income, net        990            302           2,973        1,138
(Loss) income from
continuing operations    (15,173)       329           (29,509)     (10,929)
before income taxes
Income tax benefit       (3,458)        (1,278)       (3,760)      (779)
Net (loss) income from   (11,715)       1,607         (25,749)     (10,150)
continuing operations
(Loss) income from
discontinued             (275)          (753)         10           (1,553)
operations, net of
taxes
Net (loss) income        $ (11,990)     $ 854         $ (25,739)   $ (11,703)
                                                                   
(Loss) income per                                                  
share:
Net (loss) income from   $ (0.96)       $ 0.13        $ (2.11)     $ (0.84)
continuing operations
(Loss) income from
discontinued             (0.02)         (0.06)        0.00         (0.13)
operations, net of
taxes
Net (loss) income        $ (0.98)       $ 0.07        $ (2.11)     $ (0.97)
                                                                   
Weighted average shares                                            
outstanding:
Basic and diluted        12,288         12,117        12,203       12,029

 
 
U.S. CONCRETE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, including share amounts)
(Unaudited)
 
 
                                                             December 31,
                                                             2012     2011
ASSETS                                                                 
Current assets:                                                        
Cash and cash equivalents                                    $4,751   $4,229
Trade accounts receivable, net                               84,034   82,195
Inventories                                                  25,001   33,156
Deferred income taxes                                        2,835    4,573
Prepaid expenses                                             3,651    3,785
Other receivables                                            4,414    3,224
Other current assets                                         3,080    2,738
Total current assets                                         127,766  133,900
Property, plant and equipment, net                           120,871  126,225
Goodwill                                                     10,717   1,481
Purchased intangible assets, net                             15,033   —
Other assets                                                 5,337    8,048
Total assets                                                 $279,724 $269,654
LIABILITIES AND EQUITY                                                 
Current liabilities:                                                   
Current maturities of long-term debt                         $1,861   $615
Accounts payable                                             48,880   46,749
Accrued liabilities                                          36,430   31,233
Derivative liabilities                                       22,030   2,305
Total current liabilities                                    109,201  80,902
Long-term debt, net of current maturities                    61,598   60,471
Other long-term obligations and deferred credits             13,114   6,547
Deferred income taxes                                        3,287    5,654
Total liabilities                                            187,200  153,574
Commitments and contingencies (Note 23)                                
Equity:                                                                
Preferred stock, $0.001 par value per share (10,000 shares   —        —
authorized; none issued)
Common stock, $0.001 par value per share (100,000 shares
authorized; 13,358 and 12,867 shares issued and outstanding  13       13
as of December 31, 2012 and 2011, respectively)
Additional paid-in capital                                   136,451  133,939
Accumulated deficit                                          (43,196) (17,457)
Cost of treasury stock (118 and 60 common shares as of       (744)    (415)
December 31, 2012 and 2011, respectively)
Total equity                                                 92,524   116,080
Total liabilities and equity                                 $279,724 $269,654

 
 
U.S. CONCRETE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
                                                                   
                                                     Year Ended   Year Ended
                                                     December 31, December 31,
                                                     2012         2011
CASH FLOWS FROM OPERATING ACTIVITIES:                              
Net loss                                             $ (25,739)   $ (11,703)
Adjustments to reconcile net loss to net cash                        
provided by (used in) operating activities:
Depreciation, depletion and amortization              16,328       19,662
Debt issuance cost amortization                       4,089        3,723
Amortization of discount on long-term incentive plan  104          — 
and other accrued interest
Loss on extinguishment of debt                        2,630        — 
Amortization of facility exit costs                   (89)         — 
Net gain on sale of assets                            (2,803)      (1,221)
Net loss (gain) on derivative                         19,725       (13,422)
Deferred income taxes                                 (4,014)      374
Provision for doubtful accounts                       1,304        1,970
Facility exit costs                                   358          — 
Stock-based compensation                              2,512        2,065
Changes in assets and liabilities, excluding effects                 
of acquisitions:
Accounts receivable                                   (4,858)      (9,631)
Inventories                                           (209)        (3,460)
Prepaid expenses and other current assets             (2,405)      879
Other assets and liabilities, net                     (338)        (152)
Accounts payable and accrued liabilities              4,127        9,372
Net cash provided by (used in) operating activities   10,722       (1,544)
CASH FLOWS FROM INVESTING ACTIVITIES:                                
Purchases of property, plant and equipment            (8,405)      (6,361)
Payments for acquisitions                             (28,578)     (250)
Proceeds from disposals of property, plant and        5,155        2,682
equipment
Proceeds from disposals of business units             27,022       — 
Net cash used in investing activities                 (4,806)      (3,929)
CASH FLOWS FROM FINANCING ACTIVITIES:                                
Proceeds from borrowings                              172,546      150,239
Repayments of borrowings                              (174,509)    (143,442)
Debt issuance costs                                   (1,825)      (375)
Payments for seller financed debt and joint venture   (1,277)      (1,595)
Purchase of treasury shares                           (329)        (415)
Net cash (used in) provided by financing activities   (5,394)      4,412
                                                                   
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  522          (1,061)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD      4,229        5,290
CASH AND CASH EQUIVALENTS AT END OF PERIOD           $ 4,751      $ 4,229

 
 
U.S. CONCRETE, INC. AND SUBSIDIARIES
SELECTED REPORTABLE SEGMENT INFORMATION
(in thousands)
(Unaudited)
                                                                   
                        Three months   Three months  Year Ended   Year Ended
                        ended December ended         December 31, December 31,
                        31,            December 31,  2012         2011
                        2012           2011
Revenue:                                                           
Ready-mixed concrete                                               
Sales to external        $ 121,364      $ 103,872     $ 473,767    $ 387,979
customers
Intersegment sales       6              6             40           77
Aggregate products                                                 
Sales to external        4,952          3,930         18,261       13,419
customers
Intersegment sales       3,783          2,579         13,736       10,458
Total Reportable         130,105        110,387       505,804      411,933
Segment Revenue
Other products and       4,803          7,401         25,243       33,871
eliminations
Total revenue            $ 134,908      $ 117,788     $ 531,047    $ 445,804
                                                                   
Adjusted EBITDA:                                                   
Ready-mixed concrete     $ 11,234       $ 7,555       $ 41,486     $ 22,205
Aggregate products       633            1,044         4,142        3,203
Total reportable         11,867         8,599         45,628       25,408
segment adjusted EBITDA
                                                                   
Reconciliation to loss
from continuing                                                    
operations:
Other products and
eliminations income      130            (1,485)       116          (2,054)
(loss) from operations
Corporate overhead, net
of insurance             (8,134)        (4,419)       (30,057)     (22,274)
allocations
Depreciation, depletion
and amortization for     (3,804)        (3,117)       (12,549)     (14,610)
reportable segments
Interest expense, net    (2,728)        (2,860)       (11,344)     (11,057)
Corporate loss on early  —              —             (2,630)      —
extinguishment of debt
Corporate derivative     (13,181)       3,564         (19,725)     13,422
(loss) income
Corporate, other
products and             677            47            1,052        236
eliminations other
income, net
Income (loss) from
continuing operations    $ (15,173)     $ 329         $ (29,509)   $ (10,929)
before income taxes

                             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
quarter and full year ended December 31, 2012 and 2011, and Net Debt as of
December 31, 2012 and December 31, 2011 and (2) corresponding reconciliations
to GAAP financial measures for the quarter and full year ended December 31,
2012 and 2011 and as of December 31, 2012 and December 31, 2011. We have also
provided below (1) the impact of non-cash stock compensation expense,
derivative income and losses, loss on extinguishment of debt, expenses related
to the Company's relocation of the corporate headquarters and expenses related
to the departure of our former President and CEO and hiring of new President
and CEO on net loss and net loss per share and (2) corresponding
reconciliations to GAAP financial measures for the quarter and full year ended
December 31, 2012 and 2011. We have also shown below certain Ready-Mixed
Concrete Statistics for the quarter and full year ended December 31, 2012 and
2011.

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 (income) loss, loss on extinguishment of debt, expense related to
the Company's relocation of the corporate headquarters and expense related to
the departure of our former President and CEO and hiring of our new President
and CEO. 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 have included the impact of non-cash stock compensation expense, derivative
income and losses, loss on extinguishment of debt, expenses related to the
Company's relocation of the corporate headquarters and expenses related to the
departure of our former President and CEO and hiring of our new President and
CEO on net loss and net loss per share to provide more consistent information
for investors to use when comparing operating results for the quarter and full
year ended December 31, 2012 and 2011.

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.

                                           Three months ended
                                           December 31,
                                           2012              2011
                                           (In thousands, except average price
                                           amounts and net loss per share)
 
Ready-Mixed Concrete Statistics:                              
Average price per cubic yard (in dollars)   98.81             97.70
Volume in cubic yards                       1,225             1,059
                                                              
Adjusted Net Income and EPS:                                  
Net Income (Loss)                          ($11,990)         $854
Add: Derivative loss (income)               13,181            (3,564)
Add: Loss on extinguishment of debt         --                -- 
Add: Non-cash stock compensation expense    241               683
Add: Expenses related to the departure of   --                381
former President and CEO
Add: Expenses related to corporate          157               -- 
headquarters' relocation 
Adjusted net income (loss)                 $1,589            ($1,646)
                                                              
Net income (loss) per diluted share        ($0.98)           $0.07
Impact of derivative loss (income)          1.07              (0.29)
Loss on extinguishment of debt              --                -- 
Impact of non-cash stock compensation       0.02              0.06
expense
Impact of expenses related to the           --                0.03
departure of former President and CEO
Impact of expenses related to corporate     0.01              -- 
headquarters' relocation 
Adjusted net income (loss) per diluted     $0.13             ($0.14)
share 
                                                              
Adjusted EBITDA reconciliation:                               
Net income (loss) from continuing          ($11,715)         $1,607
operations 
Income tax benefit                          (3,458)           (1,278)
Interest expense, net                       2,728             2,860
Derivative loss (income)                    13,181            (3,564)
Depreciation, depletion and amortization    4,606             3,929
Loss on extinguishment of debt              --                -- 
Non-cash stock compensation expense         241               683
Expenses related to the departure of        --                381
former President and CEO
Expenses related to corporate               157               -- 
headquarters' relocation 
Adjusted EBITDA                            $5,740            $4,618
Adjusted EBITDA margin                     4.3%              3.9%
                                                              
Free Cash Flow reconciliation:                                
Net cash provided by (used in) operations  $18,664           $8,162
Less: capital expenditures                  (3,880)           (411)
Plus: proceeds from the sale of property,   3,303             1,709
plant and equipment 
Plus: proceeds from the sale of business    4,271             -- 
units 
Free Cash Flow                             $22,358           $9,460
                                                              
                                           As of             As of
                                           December 31,      December 31,
                                           2012              2011
Net Debt reconciliation:                                      
Total debt, including current maturities   $63,459           $61,086
and capital lease obligations 
Less: cash and cash equivalents             4,751             4,229
Net Debt                                   $58,708           $56,857

                                            
                                            
                                           Year ended
                                           December 31,
                                           2012              2011
                                           (In thousands, except average price
                                           amounts and net loss per share)
 
Ready-Mixed Concrete Statistics:                              
Average price per cubic yard (in dollars)   97.59             94.48
Volume in cubic yards                       4,839             4,047
                                                              
Adjusted Net Income and EPS:                                  
Net Income (Loss)                          ($25,739)         ($11,703)
Add: Derivative loss (income)               19,725            (13,422)
Add: Loss on extinguishment of debt         2,630             -- 
Add: Non-cash stock compensation expense    2,512             2,065
Add: Expenses related to the departure of   --                281
former President and CEO
Add: Expenses related to corporate          2,482             -- 
headquarters' relocation 
Adjusted net income (loss)                 $1,610            ($22,779)
                                                              
Net income (loss) per diluted share        ($2.11)           ($0.97)
Impact of derivative loss (income)          1.62              (1.12)
Loss on extinguishment of debt              0.22              -- 
Impact of non-cash stock compensation       0.21              0.17
expense
Impact of expenses related to the           --                0.02
departure of former President and CEO
Impact of expenses related to corporate     0.20              -- 
headquarters' relocation 
Adjusted net income (loss) per diluted     $0.13             ($1.89)
share 
                                                              
Adjusted EBITDA reconciliation:                               
Net income (loss) from continuing          ($25,749)         ($10,150)
operations 
Income tax benefit                          (3,760)           (779)
Interest expense, net                       11,344            11,057
Derivative loss (income)                    19,725            (13,422)
Depreciation, depletion and amortization    15,676            18,586
Loss on extinguishment of debt              2,630             -- 
Non-cash stock compensation expense         2,512             2,065
Expenses related to the departure of        --                281
former President and CEO
Expenses related to corporate               2,482             -- 
headquarters' relocation 
Adjusted EBITDA                            $24,860           $7,638
Adjusted EBITDA margin                     4.7%              1.7%
                                                              
Free Cash Flow reconciliation:                                
Net cash provided by (used in) operations  $10,722           ($1,544)
Less: capital expenditures                  (8,405)           (6,361)
Plus: proceeds from the sale of property,   5,155             2,682
plant and equipment 
Plus: proceeds from the sale of business    27,022            -- 
units 
Free Cash Flow                             $34,494           ($5,223)

CONTACT: Matt Brown
         Senior Vice President and CFO
         U.S. Concrete, Inc.
         817-835-4105

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