U.S. Concrete sells operations in Memphis, Tenn.

U.S. Concrete Inc. announced February 5 that it has sold its Memphis, Tenn., operations to Memphis Ready Mix. The sales price was approximately $7.2 million, plus payment for certain inventory on hand at closing. During 2006 and 2007, these operations generated revenues of $24.4 million and $14.5 million on ready-mixed concrete volumes of 302,000 and 179,000, respectively. During 2006 and 2007, the Memphis operations generated pre-tax losses of $1.3 million and $2.8 million, respectively.

"The sale of our Memphis operations represents another step in our strategy of exiting markets that do not meet our performance and return criteria nor fit our strategic objectives. Based on its historical performance and our outlook for 2008, this transaction will be accretive to our 2008 earnings per share, operating margins and cash flow," said Michael W. Harlan, U.S. Concrete's president and chief executive officer. "Not only does this transaction allow us to improve our earnings going forward, it adds cash to our balance sheet and further strengthens our liquidity and capital structure."

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 126 fixed and eight portable ready-mixed concrete plants, eight pre-cast concrete plants, two concrete block plants and eight aggregates facilities. During 2007, these facilities produced approximately 7.2 million cubic yards of ready-mixed concrete, 1.8 million 8-inch equivalent block units and 4.6 million tons of aggregates.