SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The sale of our California and Arizona precast operations during 2012 represented a disposal of a significant majority of our previously reported precast operating segment. These disposals were part of our strategy to become the premier focused domestic supplier of ready-mixed concrete in the United States. As such, during the fourth quarter of 2012, we made changes to better align our operating and reportable segments with our overall strategy and the manner in which we organize and manage our business. Our two reportable segments now consist of ready-mixed concrete and aggregate products as described below. Historical segment results have been recast to conform with these changes.

Our ready-mixed concrete segment produces and sells ready-mixed concrete. This segment serves the following principal markets: north and west Texas, California, New Jersey, New York, Washington, D.C. and Oklahoma. Our aggregate products segment includes crushed stone, sand and gravel products and serves the north and west Texas, New Jersey, and New York markets in which our ready-mixed concrete segment operates. Other products not associated with a reportable segment include our building materials stores, hauling operations, lime slurry, Aridus^® rapid-drying concrete technology, brokered product sales, a recycled aggregates operation, and one remaining precast concrete plant in Pennsylvania.

Our customers are generally involved in the construction industry, which is a cyclical business and is subject to general and more localized economic conditions.  In addition, our business is impacted by seasonal variations in weather conditions, which vary by regional market.  Accordingly, demand for our products and services during the winter months are typically lower than in other months of the year because of inclement weather.  Also, sustained periods of inclement weather and other adverse weather conditions could cause the delay of construction projects during other times of the year.

In the fourth quarter of 2012, we changed the income measure used to evaluate performance of our segments to more closely align our reporting with the measure used to calculate the Company's compliance with debt covenants. Historical segment reporting has been recast to conform with this change.

Our chief operating decision maker evaluates segment performance and allocates resources based on Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) from continuing operations excluding interest, income taxes, depreciation, depletion and amortization, derivative gain (loss), and gain or loss on extinguishment of debt. Additionally, we adjust Adjusted EBITDA for items similar to certain of those used in calculating the Company’s compliance with debt covenants. The additional items that are adjusted to determine our Adjusted EBITDA are:

• Non-cash stock compensation expense;

• Corporate officer severance expense;

• Expenses associated with the relocation of our corporate headquarters; and

• Expenses associated with the departure of our former President and Chief Executive Officer and hiring of our new President and Chief Executive Officer.

We consider Adjusted EBITDA to be an indicator of the operational strength and performance of our business. We have included Adjusted EBITDA because it is a key financial measure used by our management to (i) internally measure our operating performance and (ii) assess our ability to service our debt, incur additional debt and meet our capital expenditure requirements.

Adjusted EBITDA should not be construed as an alternative to, or a better indicator of, operating income or loss, is not based on U.S. GAAP, and is not necessarily a measure of our cash flows or ability to fund our cash needs. Our measurements of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

We account for inter-segment sales at market prices. Corporate includes executive, administrative, financial, legal, human resources, business development and risk management activities which are not allocated to reportable segments and are excluded from segment Adjusted EBITDA. Eliminations include transactions to account for intercompany activity.

The following tables set forth certain financial information relating to our continuing operations by reportable segment (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Revenue:
Ready-mixed concrete
Sales to external customers	$	151,545		$	130,527		$	410,046		$	352,437
Aggregate products
Sales to external customers	6,903			5,701			15,601			13,309
Intersegment sales	4,604			4,114			12,562			9,953
Total reportable segment revenue	163,052			140,342			438,209			375,699
Other products and eliminations	10,515			6,704			25,619			20,440
Total revenue	$	173,567		$	147,046		$	463,828		$	396,139
Reportable Segment Adjusted EBITDA:
Ready-mixed concrete	$	19,418		$	12,099		$	46,624		$	30,253
Aggregate products	3,122			2,215			4,667			3,508
Total reportable segment Adjusted EBITDA	22,540			14,314			51,291			33,761
Reconciliation of reportable segment Adjusted EBITDA to income (loss) from continuing operations before income taxes:
Total reportable segment Adjusted EBITDA	22,540			14,314			51,291			33,761
Other products and eliminations income (loss) from operations	1,072			569			2,573			(356		)
Corporate overhead, net of insurance allocations	(7,301		)	(8,323		)	(23,099		)	(21,581		)
Depreciation, depletion and amortization for reportable segments	(3,975		)	(2,905		)	(11,768		)	(8,744		)
Interest expense, net	(2,477		)	(2,842		)	(7,837		)	(8,616		)
Corporate (loss) gain on early extinguishment of debt	(1,673		)	(2,630		)	2,631			(2,630		)
Corporate derivative loss	(5,467		)	(2,576		)	(25,829		)	(6,544		)
Corporate and other products and eliminations other income, net	96			61			496			375
Income (loss) from continuing operations before income taxes	$	2,815		$	(4,332	)	$	(11,542	)	$	(14,335	)
Capital Expenditures:
Ready-mixed concrete	$	3,677		$	232		$	8,496		$	2,423
Aggregate products	837			562			2,987			942
Other products and corporate	735			687			1,882			876
Total capital expenditures	$	5,249		$	1,481		$	13,365		$	4,241
Revenue by Product:
Ready-mixed concrete	$	151,545		$	130,527		$	410,046		$	352,437
Aggregate products	6,903			5,701			15,601			13,309
Precast concrete products	6,372			3,683			13,817			10,755
Building materials	4,328			3,510			10,943			8,942
Lime	2,021			1,930			6,192			4,957
Hauling	1,137			1,200			3,714			3,971
Other	1,261			495			3,515			1,768
Total revenue	$	173,567		$	147,046		$	463,828		$	396,139

Identifiable Property, Plant and Equipment Assets:	As of September 30, 2013		As of December 31, 2012
Ready-mixed concrete	$	81,064	$	75,469
Aggregate products	35,005		34,316
Other products and corporate	11,863		11,086
Total identifiable assets	$	127,932	$	120,871