USCR - U.S. Concrete

anotherdevilsadvocate · Apr 27, 2016

U.S. Concrete, Inc.
Industrial Goods | General Building Materials | USA

U.S. Concrete, Inc., through its subsidiaries, produces and sells ready-mixed concrete, aggregates, and concrete-related products and services for the construction industry in the United States. It operates through two segments, Ready-Mixed Concrete and Aggregate Products. The Ready-Mixed Concrete segment is involved in the formulation, preparation, and delivery of ready-mixed concrete to customers' job sites; and the provision of various services that include the formulation of mixtures for specific design uses, on-site and lab-based product quality control, and customized delivery programs. The Aggregate Products segment offers crushed stone, sand, and gravel for use in commercial, industrial, and public works projects. The company also engages in the operation of building materials stores; provision of concrete blocks, lime slurry, and Aridus rapid-drying concrete technology; sale of brokered products; hauling and recycled aggregates operation activities; and operation of drum mixer trucks, as well as transfer trucks for transporting cement and aggregates. It primarily serves concrete sub-contractors, general contractors, governmental agencies, property owners and developers, architects, engineers, and home builders in north and west Texas, California, New Jersey, New York, Washington, D.C., and Oklahoma. U.S. Concrete, Inc. was founded in 1948 and is headquartered in Euless, Texas.

anotherdevilsadvocate · Apr 27, 2016

Notice that bearish engulfing candle today with sizable (1.2 times normal) but not real sizable volume?
After hours this news came out

http://finance.yahoo.com/news/u-concrete-announces-reversal-non-201552184.html

EULESS, TX--(Marketwired - April 27, 2016) - U. S. Concrete, Inc. (USCR) today announced that it will restate its financial statements and amend certain disclosures for the year ended December 31, 2015. The restatement is related to the Company's $24.8 million deferred tax asset (the "Deferred Tax Asset") with respect to its outstanding common stock purchase warrants (the "Warrants") and a related $6.1 million tax deduction included in its 2015 income tax expense related to the exercise of Warrants during 2015. The Warrants were issued in 2010.

Prior to the fourth quarter of 2015, the Company maintained a valuation allowance on its net deferred tax assets because the Company was still in a three year cumulative loss position. During the fourth quarter of 2015, the Company concluded that the valuation allowance on a portion of its net deferred tax assets could be reversed. The Company reflected the reversal of the valuation allowance in its consolidated statement of operations for the year ended December 31, 2015 and, therefore, the Deferred Tax Asset had no valuation allowance recorded against it as of December 31, 2015.

Joseph C. Tusa, Jr., Senior Vice President and Chief Financial Officer, stated "We are disappointed with this turn of events, but we note that the reversal of the accounting treatment of our deferred tax asset and tax deduction, which has been the Company's accounting treatment of the Warrants since 2010, has no net impact on our consolidated financial statements for any quarterly or annual period, other than the year ended December 31, 2015. In addition, the adjustments will not affect our Adjusted EBITDA, our cash flow from operations for the year ended December 31, 2015 nor our future operational prospects. And, while we believe, after reconsidering the technical merits of the accounting position, including consulting with outside advisors and our independent registered public accounting firm, that the reversal of our accounting position is prudent at this time, we intend to pursue avenues to substantiate our original tax position."

To implement these changes, the Company will:

eliminate the Deferred Tax Asset from its consolidated balance sheet as of December 31, 2015 and increase income tax expense by $24.8 million in its consolidated statement of operations for the year ended December 31, 2015; and

eliminate a $6.1 million tax deduction included in income tax benefit in its consolidated statement of operations for the year ended December 31, 2015 and increase accrued liabilities by $5.9 million and decrease prepaid expenses by $0.2 million in its consolidated balance sheet as of December 31, 2015, related to the exercise of Warrants during 2015.

The Company intends to file a Form 10-K/A for the year ended December 31, 2015 (the "Form 10-K/A") as soon as possible to implement these changes.

Management has evaluated the effect of the restatement on the Company's prior conclusions on the effectiveness of its internal control over financial reporting and disclosure controls and procedures as of December 31, 2015. In connection with management's re-evaluation of the effectiveness of the Company's internal control over financial reporting as of December 31, 2015, management determined that the Company did not maintain effective controls over the accuracy and presentation of the accounting for income taxes, including the income tax provision and related tax assets and liabilities. The Company will amend its disclosures pertaining to its evaluation of such controls and procedures in the Form 10-K/A to report a material weakness in those controls and procedures and will report that its internal control over financial reporting and its disclosure controls and procedures were not effective as of December 31, 2015.
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It's somehow up 1.1% after hours.

USCR - U.S. Concrete

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USCR - U.S. Concrete

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