On Feb. 26, U.S. Concrete
- Gross margins stayed flat at 18.5%, while quarterly revenues increased 33.6% year over year.
- Shares appear to be under pressure, thanks to a weak first-quarter outlook caused by cold weather, which slows down construction projects and hurts demand.
- Management believes the stock is undervalued, noting that potential acquisitions of Florida Rock
(NYSE:FRK) and Rinker(NYSE:RIN) -- by Vulcan Materials(NYSE:VMC) and Cemex(NYSE:CX) , respectively -- would be at valuations "significantly greater" than U.S. Concrete's valuation. - The full-year 2007 outlook was solid, at $900 million to $950 million in expected revenues and $90 million to $100 million in EBITDA.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$210,548 |
$157,645 |
33.6% |
Net Profit |
($23,817)* |
$4,056 |
N/A |
EPS |
($0.63)* |
$0.14 |
N/A |
Diluted Shares |
37,891 |
29,495 |
28.5% |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
18.51% |
18.52% |
(0.01) |
Operating Margin |
(12.52%) |
6.16% |
(18.68) |
Net Margin |
(11.31%) |
2.57% |
(13.88) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$8,804 |
$23,654 |
(62.8%) |
Accounts Rec. |
$109,161 |
$87,654 |
24.5% |
Inventory |
$33,777 |
$23,677 |
42.7% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$102,671 |
$86,613 |
18.5% |
Long-Term Debt |
$299,528 |
$200,445 |
49.4% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$39,851 |
$41,229 |
(3.3%) |
Capital Expenditures |
$38,232 |
$17,253 |
121.6% |
Free Cash Flow |
$1,619 |
$23,976 |
(93.2%) |
Find out why Fools always follow the money.
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Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.