U.S. Concrete Announces 2013 First Quarter Results

U.S. Concrete Announces 2013 First Quarter Results

  *Consolidated Revenue Increased 15.2% to $127.7 Million
  *Ready-Mixed Concrete Volume Rose 11.7% to 1.1 Million Cubic Yards
  *Ready-Mixed Concrete Average Sales Price Improved 4.1%
  *Adjusted EBITDA Increased 130.2% to $3.5 Million
  *Net Loss of $14.4 Million (Includes Loss From Derivative Fair Value of
    $18.4 Million)

EULESS, Texas, May 9, 2013 (GLOBE NEWSWIRE) -- U.S. Concrete, Inc.
(Nasdaq:USCR) today reported adjusted net income of $0.8 million, or $0.06 per
diluted share, for the first quarter of 2013, compared to adjusted net loss of
$5.0 million, or $(0.41) per diluted share, in the first quarter of 2013.
First quarter 2013 adjusted net income excludes a non-cash loss related to the
fair value change in the Company's derivatives of $18.4 million, gain on
extinguishment of debt of $4.3 million, $0.2 million of expense related to the
relocation of the corporate headquarters and $0.8 million of non-cash stock
compensation expense. First quarter 2012 adjusted net loss excludes a non-cash
loss related to the fair value change in the Company's derivatives of $3.4
million, $1.1 million of expense related to the relocation of the corporate
headquarters and $0.7 million of non-cash stock compensation expense.
Including the loss on derivatives, expense related to the relocation of the
corporate headquarters and non-cash stock compensation expense, net loss for
the first quarter of 2013 was $14.4 million compared to a net loss of $10.2
million in the first quarter of 2012.

The Company defines adjusted net income (loss) and adjusted net income (loss)
per share as net loss and net loss per share excluding non-cash stock
compensation expense, derivative loss, gain on extinguishment of debt and
expense related to the Company's relocation of the corporate headquarters.
Adjusted net income (loss) and adjusted net income (loss) per share are
non-GAAP financial measures.For a reconciliation of adjusted net income
(loss) and adjusted net income (loss) per share to the most directly
comparable GAAP financial measures, please see the attached "Additional
Statistics" schedule.

William J. Sandbrook, President and Chief Executive Officer of U.S. Concrete,
stated, "We are extremely pleased with our improved performance to start the
year in light of the generally unfavorable winter weather patterns faced in
some of our regional markets.The level of bidding activity and backlog has
increased in the majority of our operations with particular strength exhibited
in Texas and California.I continue to be impressed with the tireless work,
dedication and innovativeness of the entire U.S. Concrete team and look
forward to reporting on our future successes."

FIRST QUARTER 2013 RESULTS

Consolidated revenue in the first quarter of 2013 increased 15.2% to $127.7
million, compared to $110.9 million in the first quarter of 2012.Revenue from
the ready-mixed concrete segment increased $16.0 million, or 16.1%, to $115.2
million for the first quarter of 2013, compared to $99.2 million in the first
quarter of 2012. The Company's ready-mixed sales volume for the first quarter
of 2013 was approximately 1.13 million cubic yards, up 11.7% from the 1.01
million cubic yards of ready-mixed concrete sold in the first quarter of 2012.
The Company's consolidated average sales price per cubic yard of ready-mixed
concrete increased 4.1% during the first quarter of 2013, as compared to the
first quarter of 2012.Aggregate products segment revenue increased $0.7
million, or 13.0%, to $6.5 million in the first quarter of 2013 compared to
$5.8 million in the first quarter of 2012.

The Company's adjusted earnings before interest, income taxes, depreciation
and amortization ("EBITDA") was $3.5 million in the first quarter of 2013,
compared to adjusted EBITDA of $1.5 million in the first quarter of
2012.Adjusted EBITDA margin, which is adjusted EBITDA as a percentage of
revenue, for the first quarter of 2013 was 2.8 percent, compared to 1.4
percent in the first quarter of 2012.

The Company defines adjusted EBITDA as net 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, gain on extinguishment of debt and expense related to the
Company's relocation of the corporate headquarters. 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 $14.5
million in the first quarter of 2013 compared to $13.6 million in the first
quarter of 2012. The higher costs for the first quarter of 2013 were primarily
due to increased incentive compensation accruals.

During the first quarter of 2013, the Company recorded an $18.4 million
non-cash loss on derivatives. This non-cash loss was comprised of $12.7
million from fair value changes in the embedded derivative related to the
Company's Convertible Notes and $5.7 million from fair value changes in the
Company's warrants. This is compared to a non-cash loss of $3.4 million during
the first quarter of 2012, also from such fair value changes. These changes
were due primarily to the increase in the price of the Company's common stock
during the first quarters of 2013 and 2012.

The Company used cash in operations of $5.5 million for the first quarter of
2013, compared to $4.4 million for the first quarter of 2012. The increase in
the first quarter of 2013 was primarily the result of timing in working
capital changes. The Company's free cash flow for the first quarter of 2013
was $(9.1) million, compared to $(3.5) million for the first quarter of
2012.We define "free cash flow" as cash used in operations less capital
expenditures for property, plant and equipment, net of proceeds from
disposals. Capital expenditures increased $1.3 million to $1.8 million for the
first quarter of 2013, as compared to $0.5 million for the first quarter of
2012.

The Company's net debt at March 31, 2013 was approximately $90.9 million, up
$32.2 million from December 31, 2012. We define net debt as total debt,
including current maturities and capital lease obligations, minus cash and
cash equivalents.The increase in net debt was due to the Company's recently
executed exchange offer for its Convertible Secured Notes and a $12.1 million
increase in the balance of our revolving credit facility.In March, the
Company closed on the exchange of $48.5 million aggregate principal amount of
its outstanding 9.5% Convertible Notes due 2015 for $61.1 million aggregate
principal amount of new 9.5% Senior Secured Notes due 2015. In connection with
the exchange, a $7.3 million discount associated with the tendered Convertible
Notes was written off. Net debt at March 31, 2013 was comprised of total debt
of $95.6 million, less cash and cash equivalents of $4.7 million.

Ready-mix backlog at the end of the first quarter of 2013 was 3.5 million
yards, up 8.6% compared to the end of the first quarter of 2012 and up 14.3%
since the beginning of the year.

CONFERENCE CALL

U.S. Concrete has scheduled a conference call for Thursday, May 9, 2013 at
10:00 a.m., Eastern Time, to review its first quarter 2013 results.To
participate in the call, dial Toll-free: 877-312-8806 – Conference ID:
59422997 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 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 first quarter of 2013 to the first quarter
of 2012. 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 March 31, 2013 and
2012.

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.

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
first 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, 2012 and
subsequent Quarterly Reports on Form 10-Q.

U.S. CONCRETE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
                                                               
                                                 Three months ended March 31,
                                                 2013           2012
Revenue                                           $ 127,741      $ 110,915
Cost of goods sold before depreciation, depletion 111,157        98,665
and amortization
Selling, general and administrative expenses      14,522         13,643
Depreciation, depletion and amortization          4,854          3,622
Loss (gain) on sale of assets                     5              (591)
Loss from operations                              (2,797)       (4,424)
Interest expense, net                             (2,772)       (2,869)
Derivative loss                                   (18,446)      (3,391)
Gain on extinguishment of debt                    4,310          —
Other income, net                                 498            531
Loss from continuing operations before income     (19,207)      (10,153)
taxes
Income tax benefit (expense)                      5,197          (188)
Loss from continuing operations                   (14,010)      (10,341)
(Loss) income from discontinued operations, net   (354)         111
of taxes
Net loss                                          $(14,364)    $(10,230)
                                                               
(Loss) income per share:                                        
Loss from continuing operations                   $(1.13)      $(0.85)
(Loss) income from discontinued operations, net   (0.03)        0.01
of taxes
Net loss per share – basic and diluted            $(1.16)      $(0.84)
                                                               
Weighted average shares outstanding:                            
Basic and diluted                                 12,359         12,140


U.S. CONCRETE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
                                                           
                                             March31, 2013 December31, 2012
                                                           
ASSETS                                                      
Current assets:                                             
Cash and cash equivalents                     $4,663       $4,751
Trade accounts receivable, net of allowances
of $2,521 and $2,368 as of March 31, 2013 and 84,333         84,034
December 31, 2012, respectively
Inventories                                   24,989         25,001
Deferred income taxes                         2,694          2,835
Prepaid expenses                              4,827          3,651
Other receivables                             7,503          4,414
Other current assets                          2,173          3,080
Total current assets                          131,182        127,766
Property, plant and equipment, net of
accumulated depreciation, depletion, and
amortization of $42,260 and $38,273 as of     119,082        120,871
March 31, 2013 and December 31, 2012,
respectively
Goodwill                                      10,521         10,717
Purchased intangible assets, net              14,183         15,033
Other assets                                  4,290          5,337
Total assets                                  $279,258     $279,724
LIABILITIES AND EQUITY                                      
Current liabilities:                                        
Current maturities of long-term debt          $1,879       $1,861
Accounts payable                              41,873         48,880
Accrued liabilities                           35,324         36,430
Derivative liabilities                        13,835         22,030
Total current liabilities                     92,911         109,201
Long-term debt, net of current maturities     93,691         61,598
Other long-term obligations and deferred      11,872         13,114
credits
Deferred income taxes                         3,146          3,287
Total liabilities                             201,620        187,200
Commitments and contingencies                               
Equity:                                                     
Preferred stock                               —              —
Common stock                                  13             13
Additional paid-in capital                    137,209        136,451
Accumulated deficit                           (57,560)      (43,196)
Treasury stock, at cost                       (2,024)       (744)
Total stockholders' equity                    77,638         92,524
Total liabilities and equity                  $279,258     $279,724


U.S. CONCRETE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
                                                               
                                                 Three months ended March 31,
                                                 2013           2012
CASH FLOWS FROM OPERATING ACTIVITIES:                           
Net loss                                          $(14,364)    $(10,230)
Adjustments to reconcile net loss to net cash                   
used in operating activities:
Depreciation, depletion and amortization          4,862          3,848
Debt issuance cost amortization                   927            1,038
Gain on extinguishment of debt                    (4,310)       —
Amortization of facility exit costs               (53)          —
Amortization of discount on long-term incentive   125            —
plan and other accrued interest
Net loss on derivative                            18,446         3,391
Net loss (gain) on sale of assets                 231            (597)
Deferred income taxes                             (5,215)       (21)
Provision for doubtful accounts                   204            236
Stock-based compensation                          758            680
Changes in assets and liabilities:                              
Accounts receivable                               (503)         2,576
Inventories                                       12             349
Prepaid expenses and other current assets         2,619          (2,010)
Other assets and liabilities                      (1,300)       (128)
Accounts payable and accrued liabilities          (7,916)       (3,535)
Net cash used in operating activities             (5,477)       (4,403)
CASH FLOWS FROM INVESTING ACTIVITIES:                           
Purchases of property, plant and equipment        (1,848)       (520)
Proceeds from disposals of property, plant and    111            1,411
equipment
Payments related to disposals of business units   (1,866)       —
Net cash (used in) provided by investing          (3,603)       891
activities
CASH FLOWS FROM FINANCING ACTIVITIES:                           
Proceeds from borrowings                          38,030         39,584
Repayments of borrowings                          (25,959)      (34,069)
Payments for seller-financed debt and joint       (458)         (849)
venture
Debt issuance costs                               (1,341)       —
Purchase of treasury shares                       (1,280)       (14)
Net cash provided by financing activities         8,992          4,652
NET (DECREASE) INCREASEIN CASH AND CASH          (88)          1,140
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD  4,751          4,229
CASH AND CASH EQUIVALENTS AT END OF PERIOD        $4,663       $5,369


U.S. CONCRETE, INC. AND SUBSIDIARIES
SELECTED REPORTABLE SEGMENT INFORMATION
(in thousands)
(Unaudited)
                                                               
                                                 Three months ended March 31,
                                                 2013           2012
Revenue:                                                        
Ready-mixed concrete                                            
Sales to external customers                       115,202        99,188
Aggregate products                                              
Sales to external customers                       3,201          3,289
Intersegment sales                                3,319          2,480
Total reportable segment revenue                  121,722        104,957
Other products and eliminations                   6,019          5,958
Total revenue                                     $127,741     $110,915
                                                               
Adjusted EBITDA:                                                
Ready-mixed concrete                              $9,173       $7,080
Aggregate products                                (582)         (862)
Total reportable segment Adjusted EBITDA          8,591          6,218
                                                               
Reconciliation to loss from continuing                          
operations:
Other products and eliminations income (loss)     442            (517)
from operations
Corporate overhead, net of insurance allocations  (7,429)       (6,957)
Depreciation, depletion and amortization for      (4,054)       (2,845)
reportable segments
Interest expense, net                             (2,772)       (2,869)
Corporate gain on early extinguishment of debt    4,310          —
Corporate derivative loss                         (18,446)      (3,391)
Corporate, other products and eliminations other  151            208
income, net
Loss from continuing operations before income     $(19,207)    $(10,153)
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
quarters ended March 31, 2013 and 2012, and Net Debt as of March 31, 2013 and
December 31, 2012 and (2)corresponding reconciliations to GAAP financial
measures for the quarters ended March 31, 2013 and 2012 and as of March 31,
2013 and December 31, 2012.We have also provided below (1) the impact of
non-cash stock compensation expense, derivative losses, gain on extinguishment
of debt and expenses related to the Company's relocation of the corporate
headquarters on net loss and net loss per share and (2) corresponding
reconciliations to GAAP financial measures for the quarters ended March 31,
2013 and 2012. We have also shown below certain Ready-Mixed Concrete
Statistics for the quarters ended March 31, 2013 and 2012.

We define adjusted EBITDA as our net 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 on extinguishment of debt 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 loss and net loss per share excluding non-cash stock compensation
expense, derivative loss, gain on extinguishment of debt 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 March 31, 2013 and 2012.

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
                                  March 31
                                  2013                 2012
                                  (In thousands, except average price amounts
                                   and net loss per share)
Ready-Mixed Concrete Statistics:                       
Average price per cubic yard (in   101.40               97.44
dollars)
Volume in cubic yards              1,133                1,014
                                                      
Adjusted Net Income and EPS:                           
Net Loss                           $(14,364)          $(10,230)
Add: Derivative loss               18,446               3,391
Less: Gain on extinguishment of    (4,310)             —
debt
Add: Non-cash stock compensation   758                  680
expense
Add: Expenses related to corporate 224                  1,127
headquarters' relocation
Adjusted net income (loss)         $754               $(5,032)
                                                      
Net loss per diluted share         $ (1.16)             $(0.84)
Impact of derivative loss          1.49                 0.28
Gain on extinguishment of debt     (0.35)              —
Impact of non-cash stock           0.06                 0.06
compensation expense
Impact of expenses related to      0.02                 0.09
corporate headquarters' relocation
Adjusted net income (loss) per     $0.06              $(0.41)
diluted share
                                                      
Adjusted EBITDA reconciliation:                        
Net loss from continuing           $(14,010)          $(10,341)
operations
Income tax (benefit) expense       (5,197)             188
Interest expense, net              2,772                2,869
Derivative loss                    18,446               3,391
Depreciation, depletion and        4,854                3,622
amortization
Gain on extinguishment of debt     (4,310)             —
Non-cash stock compensation        758                  680
expense
Expenses related to corporate      224                  1,127
headquarters' relocation
Adjusted EBITDA                    $3,537             $1,536
Adjusted EBITDA margin             2.8%                 1.4%
                                                      
Free Cash Flow reconciliation:                         
Net cash used in operations        $(5,477)           $(4,403)
Less: capital expenditures         (1,848)             (520)
Plus: proceeds from the sale of    111                  1,411
property, plant and equipment
Less: payments related to          (1,866)             —
disposals of business units
Free Cash Flow                     $(9,080)           $(3,512)
                                                      
                                  As of                As of
                                  March 31, 2013       December 31, 2012
Net Debt reconciliation:                               
Total debt, including current
maturities and capital lease       $95,570            $63,459
obligations
Less: cash and cash equivalents    4,663                4,751
Net Debt                           $90,907            $58,708

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

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