Industry Notes

U.S. Concrete, Inc., a leading national supplier of ready-mixed concrete and aggregates, has announced the acquisition of Leon River Aggregate Materials, a sand and gravel producer based in Proctor, Texas.

The acquisition includes 400 acres of land and reserves, and a state-of-the-art processing plant.

U.S. Concrete has also announced that it has completed the divestiture of its Dallas/Fort Worth area lime operations to Lhoist North America, which includes two fixed plants, lime tankers and raw material tankers.

“We are excited to strengthen our aggregate operations in West Texas and to use the processing facility to produce high-quality materials that will be used in many of the market’s ongoing and planned construction projects,” says Bill Sandbrook, chairman, president and CEO of U.S. Concrete. “The lime divestiture gives us the ability to further our strategic focus of optimizing our portfolio of assets and allocating money directly to growing our aggregates business while concurrently improving our balance sheet by reducing debt.”

Read for more on the acquisition:

Select Sands Corp. has announced record operational and financial results for the second quarter of 2018. Select Sands’ financial statements are presented in U.S. dollars to better reflect their operations and to improve investors’ ability to compare the company’s financial results with other publicly traded silica sand businesses in the U.S.

Second Quarter 2018 Operational and Financial Highlights:

  • Sold a record 164,872 tons of frac and industrial sand during Q2 of 2018, which was significantly higher than Select Sands’ original outlook for the sale of 120,000 to 140,000 tons;
  • Increased sales volumes and pricing drove revenue to $9.5 million – 68% higher than Q1 2018 revenue of $5.7 million;
  • Enhanced production-related and logistics efficiencies pushed gross profit up 130% to $3.0 million from $1.3 million in the Q1 2018, with the related margin increasing to 32.1% from 23.4% in the preceding quarter;
  • Reported record net income of $1.6 million in Q2 2018, or $0.02 per basic and diluted common share, versus Q1 2018 net income of $0.6 million, or $0.01 per basic and diluted common share;
  • Generated a 31.0% margin of on adjusted EBITDA(1) of $2.9 million in Q2 2018, which was 255% higher than $0.8 million reported for the first quarter of 2018

Zig Vitols, President and CEO, commented, “We are clearly pleased with our record results for the second quarter. Over the past months, we have put significant effort into further improving the efficiency of our production, shipping and inter-plant transportation capabilities. During the second quarter, this allowed our current scope of operations to fully benefit from the strong customer demand for our products. As in the past, I want to thank all of our employees and supporting contract personnel for their hard-work and dedication. Along with the rest of executive leadership, I look forward to continued close collaboration with our outstanding team as we further position Select Sands for long-term success.” 

Read for more highlights on second quarter 2018:


LafargeHolcim, a leading global building materials and solutions company serving masons, builders, architects and engineers all over the world, has announced second quarter 2018 results. Highlights for second quarter 2018 include:

  • Strong revenue growth of 6.2% in Q2 and 4.8% in first half on a like-for-like basis
  • Recurring EBITDA up 1.5% for Q2, -1.4% for first half on a like-for-like basis
  • Full year 2018 targets confirmed
  • On track to deliver Strategy 2022 – “Building for Growth”

Earnings improved with volumes in the United States accelerating throughout the first half of 2018 supported by positive market conditions as well as successful commercial initiatives, the company said.

Jan Jenisch, CEO of LafargeHolcim, said, “I am very satisfied with the sales growth we achieved in the first half of the year, especially as we gained momentum in the second quarter. Increasing energy prices and cost inflation have been challenging. Operational issues in some markets have been addressed and we expect to deliver increasing margins as we capture the upward trend in demand through the second half of 2018.”

“We remain focused on delivering Strategy 2022 – ‘Building for Growth.’ Recent bolt-on acquisitions in the United States and France demonstrate our focus on capturing the growth opportunities in our most attractive markets,” he continued. “The beneficial effects of simplification and cost reduction are also becoming more visible. We continue to focus on delivering our 2018 targets.”

Read for more highlights of second quarter 2018:

Martin Marietta has announced record results for the second quarter ended June, 30 2018. The company’s gross revenues climbed to $1.20 billion, up from $1.06 billion in the second quarter of 2017. The company’s gross profit reached $316 million, compared to $274 million in the second quarter of 2017.

Aggregates product revenues increased 15.1 percent for the quarter, reflecting volume growth of 11.3 percent and pricing growth of 3.5 percent (includes all acquired operations). Heritage volume and pricing improved 3.4 percent and 4.4 percent, respectively.

Chairman, President and CEO of Martin Marietta Ward Nye stated, “Our record-setting second-quarter results, which were driven by increased shipments, pricing improvements and growth initiatives, extend Martin Marietta’s lengthy track record of operational excellence, disciplined execution of our strategic plan and shareholder value creation. Underlying product demand and customer backlogs remain strong across our markets, with notable growth in Texas, North Carolina, Georgia and Iowa. In addition, our cement operations benefited from the combination of strong demand and a tight supply environment, resulting in double-digit volume growth and a 680-basis-point improvement in product gross margin for the quarter.

Read for more highlights of second quarter 2018:

LafargeHolcim has announced the acquisition of Tarrant Concrete, a ready mix concrete maker in the United States. This acquisition expands LafargeHolcim’s presence in the United States, and is expected to strengthen the company’s existing operations in the Dallas/Fort Worth area of Texas.

“The acquisition of Tarrant Concrete follows our Strategy 2022 – ‘Building for Growth’ by capturing growth opportunities in our most attractive markets,” says LafargeHolcim CEO Jan Jenisch in a press release. “By being highly complementary to our existing business, Tarrant Concrete will allow us to expand our ability to serve customers in a high growth area of Texas. I very much welcome all employees of Tarrant Concrete to our company.”

Tarrant Concrete currently operates three ready-mix concrete plants with net sales of more than $40 million and employs 90 employees. Over the past decade, the Dallas/Fort-Worth metropolitan area has been one of the fastest growing regions in the nation.

Read for more on the acquisition:

Shale Support, a leading provider of frac-sand and logistical solutions to the oil and gas proppant market, has expanded its presence in the southeastern United States with the purchase of two new mines in Kinder and Central Louisiana. This acquisition adds 2.0 million tons of nameplate capacity to Shale Support, increasing total capacity to 5.0 million tons annually.

“We’ve been an ‘in-basin’ provider of sand since 2014,” said Jeffrey B. Bartlam, President and Co-Founder. “Shale Support’s geographic proximity to the Haynesville, Austin Chalk and Eagle Ford Shale areas, in addition to our ability to use Norfolk Southern as a single haul carrier to the Northeast, has always allowed us to provide a superior product at a lower price point than our competition. This expansion allows us to continue our strategy of being the high-quality, low-cost proppant supplier to the Haynesville, Austin Chalk, Marcellus/Utica and Eagle Ford shale plays.”

Kevin Bowen, Co-Founder and CEO, added, “It’s been difficult for Shale Support to find acquisition opportunities which maintain the clean, single digit turbidity product quality requirements of our organization. These two mines produce a clay-free, white sand that will maintain the stringent product standards of our brand, Delta Pearl, and will be a perfect solution for the huge demand increase that we see coming from increased Austin Chalk activity.”

Read for more on the acquisition:

Smart Sand, Inc., producer of high-quality Northern White raw frac sand, has announced first quarter 2018 results. Highlights for the first quarter include:

  • 1Q 2018 revenue of $42.6 million
  • 1Q 2018 total tons sold of 723,000, the highest in Company history and an increase of 2% sequentially
  • 1Q 2018 net income of $1.0 million
  • 1Q 2018 Adjusted EBITDA of $5.9 million
  • Acquisition of Quickthree Solutions expected to close by the end of May 2018

“The demand for frac sand, and in particular Northern White, continues to be strong. We sold record quarterly volumes from our Oakdale facility in the first quarter and we anticipate strong demand for our expanded nameplate capacity, which is currently ramping up and is expected to be fully operational in the second quarter,” stated Charles Young, CEO. “We continue to take steps towards becoming a fully integrated ‘mine to the wellhead’ supplier of frac sand. During the first quarter we partnered with Canadian Pacific to offer our customers competitive, efficient rail services, acquired rights to operate a unit train capable transloading terminal in the Bakken, and signed a new long-term take-or-pay contract with a large exploration and production company for delivery of frac sand at our terminal in the Bakken. Additionally, we entered into a definitive agreement to acquire Quickthree Solutions, Inc., a manufacturer of portable vertical frac sand storage solutions at the wellsite. This deal is expected to close by the end of May.”

There was a slight decrease in revenue compared to fourth quarter 2017, primarily due to higher production costs and lower freight revenue, offset by higher sales volumes and a higher average price per ton sold.

Read for more highlights of first quarter 2018:

U.S. Concrete, Inc., a leading producer of construction materials in select major markets across the United States, has reported results for first quarter 2018.

First quarter 2018 highlights compared to first quarter 2017 include:

  • Consolidated revenue increased 9.6% to $327.8 million
  • Ready-mixed concrete revenue increased 5.0% to $289.2 million
  • Ready-mixed concrete average sales price improved 2.0% to $136.99 per cubic yard
  • Aggregate products revenue increased 83.3% to $32.7 million
  • Aggregate products average sales price increased 14.1% to $14.36 per ton
  • Ready-mixed concrete backlog increased 11.0% to an all-time high of 8.2 million cubic yards

U.S. Concrete also completed three acquisitions during the first quarter, including ready-mixed concrete plants in key growth markets enhancing the Company’s established presence in the New York metro and Philadelphia regions, and ready-mixed concrete plants and aggregate reserves within Texas, which increased vertical integration.

William J. Sandbrook, President, CEO and Vice Chairman of U.S. Concrete stated, “Despite yet another challenging quarter due to weather, we are pleased to report multiple financial accomplishments, including our 29th straight quarter of year-over-year revenue growth, our 28th straight quarter of ready-mixed concrete pricing growth as well as a new first quarter revenue high of $328 million. We continue to maintain our focus on operating excellence and push forward with accelerated efforts on integrating our recent acquisitions, which were strong contributors for the quarter.”

Read for more highlights on the first quarter 2018:

U.S. Concrete, Inc. has announced the acquisition of a new, state-of-the-art ready-mixed concrete plant located north of downtown Philadelphia. U.S. Concrete will integrate all of the acquired assets into its existing Philadelphia operation, Action Supply Co., Inc., previously acquired in October 2017.

“In the Philadelphia market, demand for ready-mixed concrete across all of our market segments is quite strong, so we are very pleased to have completed this acquisition,” said U.S. Concrete President, CEO and Vice Chairman, William J. Sandbrook. “This acquisition, coupled with the recent acquisitions of Action Supply and Corbett Aggregates Companies, greatly enhances our ability to serve the Greater Philadelphia area. We will continue to look for opportunistic ways in which we can grow our market share and strengthen our geographic footprint in this region.”

U.S. Concrete now has three ready-mixed concrete plants in the city and over 30 trucks.

Read for more on the acquisition:

Preferred Sands announced that it opened its Atascosa sand mine and facility at the end of February. This marks another milestone as Preferred Sands continues its national in-basin sand strategy aimed at reducing the cost of sand and associated logistics for customers in the region.

“This opening represents a significant event within our continued, multi-year localization strategy,” says Michael O’Neill, founder and CEO of Preferred Sands, according to the news agency. “The Atascosa facility, coupled with our second local plant opening in the near term in Monahans, Texas, will ultimately add over 6 million tons of capacity available to our customers in both the Permian Basin and Eagle Ford Shale. We’re excited to continue our record as an innovative first mover and remain committed to being the lowest CLAW (cost-landed-at-well) and highest production-enhancing partner to our customer base in all the areas in which we operate.”

The Atascosa facility has a wet and dry plant and storage silos, as well as automated, multi-lane, drive-in, drive-out trucking capabilities. The plant produces high quality 40/70 and 100 mesh local sand for Eagle Ford operators and will produce approximately 3 million tons of finished goods product per year.

Read for more detail on the opening:

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