HOUSTON, Nov. 19 /PRNewswire-FirstCall/ -- U.S. Concrete, Inc. announced today that it has sold its Knoxville, Tennessee and Wyoming, Delaware operations to Oldcastle Materials, Inc. The sales price was $16.5 million, plus certain adjustments for working capital. During 2006, and for the twelve months ended September 30, 2007, these units generated combined revenues of $36.6 million and $34.1 million, respectively. The Company used the sales proceeds to pay down its revolving credit facility and for general corporate purposes.
"As we discussed on our third quarter investor call, we anticipate the transaction will be slightly accretive to our 2008 earnings per share and operating margins," said Michael W. Harlan, President and Chief Executive Officer. "We will continue to evaluate the performance of our business units to ensure they provide adequate returns for our shareholders and fit our strategic objectives."
U.S. Concrete services the construction industry in several major markets in the United States through its two business segments: ready-mixed concrete and concrete-related products; and precast concrete. The Company has 138 fixed and nine portable ready-mixed concrete plants, eight pre-cast concrete plants, two concrete block plants and eight aggregates facilities. During 2006, these facilities produced approximately 8.8 million cubic yards of ready-mixed concrete, 1.8 million eight-inch equivalent block units and 4.6 million tons of aggregates. For more information on U.S. Concrete, visit http://www.us-concrete.com/.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains various forward-looking statements 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 statements in this press release include but are not limited to, statements regarding: expectations of transaction being slightly accretive to our 2008 earnings per share and operating margins. 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; 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, 2006 and the Company's subsequently filed Quarterly Reports on Form 10-Q.
