XML 29 R16.htm IDEA: XBRL DOCUMENT v3.21.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Our two reportable segments consist of ready-mixed concrete and aggregate products as described below.

Our ready-mixed concrete segment produces and sells ready-mixed concrete. This segment serves the following markets: Texas, California, New York City, New Jersey, Washington, D.C., Philadelphia, Oklahoma and the U.S. Virgin Islands. Our aggregate products segment produces crushed stone, sand and gravel and serves the markets in which our ready-mixed concrete segment operates as well as the West Coast and Hawaii. Other operations and products not associated with a reportable segment include our aggregates distribution operations, building materials stores, hauling operations, ARIDUS® Rapid Drying Concrete technology, brokered product sales and recycled aggregates.

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 is 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.

Our chief operating decision maker evaluates segment performance and allocates resources based on Adjusted EBITDA. We define Adjusted EBITDA as our net income, excluding the impact of income taxes, depreciation, depletion and amortization, net interest expense and certain other non-cash, non-recurring and/or unusual, non-operating items including, but not limited to: non-cash stock compensation expense, non-cash change in value of contingent consideration, acquisition-related costs, officer transition expenses, purchase accounting adjustments for inventory, and realignment initiative costs. Acquisition-related costs consist of fees and expenses for accountants, lawyers and other professionals incurred during the negotiation and closing of strategic acquisitions. Acquisition-related costs do not include fees or expenses associated with post-closing integration of strategic acquisitions. Many of the impacts excluded to derive Adjusted EBITDA are similar to those excluded in calculating our compliance with our debt covenants.

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 (1) internally measure our operating performance and (2) 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 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 and may not be comparable to similarly titled measures used in the agreements governing our debt.

We generally account for inter-segment sales at market prices. Corporate includes executive, administrative, financial, legal, human resources, business development and risk management activities that 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 operations by reportable segment ($ in millions):

Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Revenue by Segment:  
Ready-mixed concrete
Sales to external customers
$274.3 $272.4 $515.8 $564.6 
Aggregate products
Sales to external customers25.2 26.1 47.8 

47.2 
Freight revenue on sales to external customers11.2 12.1 20.6 22.1 
Intersegment sales16.8 16.3 29.3 

28.8 
Total aggregate products53.2 54.5 97.7 98.1 
Total reportable segment revenue327.5 326.9 613.5 662.7 
Other products and eliminations(0.1)(4.2)(0.4)

(5.6)
Total revenue$327.4 $322.7 $613.1 $657.1 
Reportable Segment Adjusted EBITDA:    
Ready-mixed concrete$30.9 $38.1 $55.8 $69.8 
Aggregate products20.1 21.6 32.6 

32.9 
Total reportable segment Adjusted EBITDA$51.0 $59.7 $88.4 $102.7 
Reconciliation of Total Reportable Segment Adjusted EBITDA
 to Net Income (Loss):
Total reportable segment Adjusted EBITDA$51.0 $59.7 $88.4 $102.7 
Other products and eliminations from operations0.7 0.3 0.4 0.4 
Corporate overhead(32.6)(16.3)(46.3)(31.9)
Depreciation, depletion and amortization for reportable segments(24.2)(23.7)(47.1)(45.5)
Interest expense, net(10.3)(11.4)(20.7)(22.8)
Loss on extinguishment of debt(5.5)— (5.5)— 
Gain on sale of business— — 0.7 — 
Realignment initiative costs— (0.8)(0.4)(0.8)
Change in value of contingent consideration for reportable segments— 5.8 0.1 5.5 
Purchase accounting adjustments for inventory(0.5)(2.6)(0.6)(4.2)
Corporate, other products and eliminations other income (loss), net0.2 (0.2)0.3 (0.3)
Income (loss) before income taxes(21.2)10.8 (30.7)3.1 
Income tax benefit (expense)0.7 (4.3)5.4 0.6 
Net income (loss)$(20.5)$6.5 $(25.3)$3.7 
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Capital Expenditures:    
Ready-mixed concrete(1)
$10.4 $4.3 $11.5 $8.7 
Aggregate products(2)
2.9 2.5 34.0 5.3 
Other products and corporate0.3 0.1 0.5 0.2 
Total capital expenditures$13.6 $6.9 $46.0 $14.2 
 (1)    Includes $8.2 million for the acquisition of the rail terminal and bulk storage facility for cementitious materials in Stockton, California for the three and six months ended June 30, 2021.
 (2)    Includes $28.7 million for the acquisition of the property and the underlying royalty agreement associated with the Orca Quarry on Vancouver Island, British Columbia, Canada for the six months ended June 30, 2021.

Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Revenue by Product:    
Ready-mixed concrete$274.3 $272.4 $515.8 $564.6 
Aggregate products36.4 38.2 68.4 69.3 
Other(1)
16.7 12.1 28.9 23.2 
Total revenue$327.4 $322.7 $613.1 $657.1 
 (1) Includes building materials, aggregates distribution, hauling and other.

June 30, 2021December 31, 2020
Identifiable Property, Plant and Equipment Assets:
Ready-mixed concrete$289.5 $286.9 
Aggregate products495.6 478.1 
Other products and corporate21.7 23.2 
Total identifiable assets$806.8 $788.2