EX-99.1 2 ex99-1.htm

Longbow Research
Construction Materials Conference
February 21, 2008

Certain statements provided in this presentation, including those that express a belief, expectation or
intention and those that are not of historical fact, are “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
statements involve a number of risks and uncertainties and are intended to qualify for the safe harbors
from liability established by the Private Securities Litigation Reform Act of 1995. These risks and
uncertainties may cause actual results to differ materially from expected results and are described in detail
in filings made by U.S. Concrete, Inc. (the “Company”) with the Securities and Exchange Commission,
including the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 and
subsequent Quarterly Reports on Form 10-Q.

The forward-looking statements speak only as of the date of this presentation. Investors are cautioned not
to rely unduly on them. Many of these forward-looking statements are based on expectations and
assumptions about future events that may prove to be inaccurate. The Company’s management considers
these expectations and assumptions to be reasonable, but they are inherently subject to significant
business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of
which are difficult to predict and many of which are beyond the Company’s control. The Company
undertakes no obligation to update these statements unless required by applicable securities laws.

Also, this presentation will contain various financial measures not in conformity with generally accepted
accounting principles (“GAAP”). A reconciliation to the most comparable GAAP financial measure can be
found at the end of this presentation.

Forward-Looking Statement

Company Overview

Ready mixed concrete

7.2 million cubic yards

$660 million in revenue

Leading market position in 5 regions

Aggregate business

8 aggregate facilities

88 million tons of proven reserves

Strategic focus to pursue vertically

integrated growth opportunities

Precast products

$73 million in revenue

Strong operating margins

Internal and external growth
opportunities

Top 10 Producer of ready-mixed concrete in the U.S.

Broad Geographic Footprint

Precast Plant

Block Plant

Aggregates Quarry

Ready-Mixed Plant

Helps Provide Insulation From Local and Regional Economic Conditions

Geographic Distribution

Based on revenues for the12-month period ended

12/31/07 on a continuing operation basis

Santa Rosa

San
Francisco

Sacramento

San Jose

Source: Company filings and press releases

Aggressively manage through current economic cycle

Implement cost controls throughout organization

Control capital spending

Manage balance sheet and capital structure

Maintain maximum liquidity

Evaluate existing asset base

Ensure assets are delivering appropriate returns

Conservatively evaluate internal and external growth

Aggregate operations

Precast operations

Select in-market ready-mixed operations

Our Strategy Today

Industry Overview

Large, Fragmented Industry

Over $60 billion in annual revenue

More than 2,300 independent
ready-mixed concrete producers

More than 3,600 precast concrete
manufacturers

Increasing vertical integration
among cement, aggregates and
concrete producers

Cemex / Rinker

Hanson / Heidelberg

Vulcan / Florida Rock

$27 billion

$26 billion

Source: National Ready-Mixed Concrete Association and National Precast Concrete Association

Concrete Products Market Size

($ in billions)

Ready-Mixed Concrete End Use Markets

Source: F.W. Dodge Q32007.

U.S. Concrete

Source: Company filings.

Total U.S. Market

Commercial and industrial sectors represent higher margin business for
U.S. Concrete

Streets and highways often self- performed by construction companies

Other Public

Works

30%

Street &

Highway

29%

Residential

30%

Commercial &

Industrial

20%

Commercial &

Industrial

44%

Residential

39%

Street &

Highway

Other Public

Works

Consumption Trends and Demand Forecast

Forecasted Cement Demand

CAGR: (.3)%

Sources:

Portland Cement Association, Fall 2007 Update.

USGS

(Thousands of metric
tons)

121,817

113,924

111,839

115,171

120,506

(6.5)%

(1.8)%

3.0%

4.6%

PCA Cement Demand Forecast Trend

Dodge Ready-Mix Demand Forecast for 2008

Forecast Trend by Quarter

Millions of CYDs

(our markets only)

Represents 8.5%

Decline from 1Q06

Nonresidential Construction/Outlook

2007 Overview:

Nonresidential construction
activity increased 7.3% in 2007

Commercial construction peaked in
2007 after record increases of
27.0% in 2006 and 7.0% in 2007

2007 office construction reached
highest level over the past 6 years

2008 Forecast:

2008 nonresidential construction is
expected to slow

Tighter lending standards

Pull back in store construction

slower absorption of space

AIA Architecture Billings Index
indicates a build-up of
nonresidential construction in 2008

Nonresidential Construction Starts % Change

Source: McGraw Hill

Nonbuilding Construction/Outlook

2007 Overview:

2007 nonbuilding construction
starts increased 4.2%

SAFETEA-LU provided a $3.4 billion
increase in federal highway
investment in 2007

2008 Forecast:

Nonbuilding construction starts
expected to slow in 2008, up 2%

Highways and bridges likely to
receive greater federal funding in
2008 appropriations

State and local budgets are
expected to maintain 2007 financing
levels for highway and bridge
construction

Nonbuilding Construction Starts % Change

Source: McGraw Hill

NAHB forecasts the slowdown in new home construction to last through the first
half of 2008 as homebuilders try to shed inventory and the market absorbs
capacity

Current excess inventories are forecast to clear the market by 2010

NAR expects new home prices to decline by 3% - 6% in 2008

Housing* Starts Forecast

Forecast (units in millions)

2005

2006

2007E

2008E

2009E

NAHB

2.1

1.8

1.35

1.08

1.19

Year-Over-Year % Change

5.8%

-12.9%

-25.0%

-20.0%

10.2%

NAR

1.36

1.09

1.10

Year-Over-Year % Change

-24.7%

-19.7%

1.0%

Fitch Ratings

1.37

1.18

N/A

Year-Over-Year % Change

-23.9%

-13.9%

N/A

Fannie Mae

1.35

1.17

1.22

Year-Over-Year % Change

-24.9%

-13.6%

4.7%

*Includes single family and multifamily starts

Housing Market Outlook

Company End Use Markets

Historical Revenue – Consolidated

Revenues by Major Market

Highest Job Growth by State

As of December 2007

U.S. Concrete operates in Texas, California,
New York and Virginia

Highest Job Growth by MSA

U.S. Concrete has operations in 6 of 20 top growth cities

Company Growth Target

Growth Initiatives

Promotional activities and value
added marketing and sales

Select ready-mixed

markets

Strategic fit to existing

footprint

Contiguous new markets

Return investment criteria

Ability to integrate and

manage assets

Ready-Mix

Precast

Aggregates/
Developmental

Further vertical integration

into aggregates

On-Site Concrete

operations

New Plant expansions in

contiguous markets

EF Technology – green

building program

Build out precast

operating segment

Target niche high

margin businesses

Broaden product

offerings in select

Segments

Leverage management

experience and contacts

Financial Highlights

Historical Financial Review

RMC Volume

Revenue

EBITDA

Capex (excl. acquisitions)

(Dollars in millions)

EBITDA

EBITDA Margin

(Dollars in millions)

CAGR = 19.8%

(Cubic yards in thousands)

CAGR = 17.0%

(Dollars in millions)

CAGR = 12.9%

5,026

5,053

5,298

7,336

7,624

3,000

6,000

9,000

12,000

2003A

2004A

2005A

2006A

2007E

$473.1

$500.6

$575.7

$789.5

$847.4

0.0

400.0

800.0

$1,200.0

2003A

2004A

2005A

2006A

$13.3

$10.5

$18.0

$42.2

$28.8

0.0

25.0

$50.0

2003A

2004A

2005A

2006A

$44.9

$41.6

$51.6

$75.6

$75.4

9.5%

8.3%

9.0%

9.6%

9.4%

0.0

35.0

70.0

105.0

$140.0

2003A

2004A

2005A

2006A

2.0

7.0

12.0%

2007E

Fourth Quarter 2007 Update

Revenue was $198 million from continuing operations on
ready-mixed concrete volumes of 1.76 million, down 3.9%
from 4Q06

EBITDA estimated at $14.7 million, down $5.2 million from
4Q06 on a continuing operations basis

Goodwill impairment charge of $78 million, net of tax, or
$2.03 per share

Positive free cash flow of $14 to $17 million in Q407

Divested 2 business units, proceeds were $16.5 million,
year end cash-on-hand is $15 million

Company Ready Mix Average Selling Prices

% Change

4Q07

4Q06

3Q07

4Q07 vs 4Q06

4Q07 vs 3Q07

DFW

76.96

67.19

76.74

14.5%

0.3%

West Texas

81.29

76.22

79.72

6.7%

2.0%

New Jersey

110.85

112.70

112.03

-1.6%

-1.1%

Northern California

118.87

111.27

120.29

6.8%

-1.2%

Michigan

79.27

79.70

78.43

-0.5%

1.1%

Consolidated

92.49

86.76

91.36

6.6%

1.2%

2008 Outlook

First quarter revenue from continuing operations is expected to be in the
range of $150 million to $160 million

Flat with1Q07revenues on a same-store-sales basis

Ready-Mixed concrete volumes from continuing operations are expected to
be 1.3 million cubic yards

Flat compared to 1Q07 on a same-store-sales basis

EPS is expected to be a loss of $0.13 to $0.19 per share from continuing
operations

1Q07 EPS loss was $0.15 per share

January and February volumes on target

Level of construction activity for the 2^nd half of 2008 is somewhat uncertain

Ready-mixed concrete average selling prices are stable

Expect to maintain material spread margin

Focused on controlling raw material input costs

Managing Through Cycle Downturn

Reviewing and divesting of noncore asset

Cost control initiatives continue

Headcount reductions

Reducing discretionary spending

Disposing of excess equipment

Downsizing plants

Controlling capital expenditures

Authorized share repurchase program

Up to 3 million shares

Key Company Strengths

Leading market share positions

5 regional markets

Effectively managing through economic
cycle

Exposure to residential sector reduced
significantly

Strong balance sheet with solid liquidity

$15 million of cash at year-end

$113 million of credit available

No significant financial covenants

Credit facility matures in 2011 and
Subordinated Notes due in 2014

Internal and external growth
opportunities available

Longbow Research
Construction Materials Conference
February 21, 2008

Disclosure of Non-GAAP Financial Measures

U.S. CONCRETE, INC.
ADDITIONAL STATISTICS
(In thousands, unless otherwise noted; unaudited)

We report our financial results in accordance with generally accepted accounting principles in the United States (“GAAP”).
However, our management believes that certain non-GAAP performance measures and ratios, which our management uses in
managing our business, may provide users of this financial information additional meaningful comparisons between current results
and results in prior operating periods. See the table below for (1) presentations of our EBITDA, EBITDA margin, Net Debt and Free
Cash Flow for the three months ended December 31, 2006 and December 31, 2007 and the year ended December 31, 2007 and (2)
corresponding reconciliations to GAAP financial measures for the three months ended December 31, 2006 and December 31, 2007 and
the year ended December 31, 2007.

We define EBITDA as our net income (loss) from continuing operations plus the provision (benefit) for income taxes, net
interest expense and noncash goodwill and asset impairments, depreciation, depletion and amortization. We define EBITDA margin as
the amount determined by dividing EBITDA by total sales. We have included EBITDA and EBITDA margin in the accompanying
tables because they are widely used by investors for valuation and comparing our financial performance with the performance of other
building material companies. We also use EBITDA to monitor and compare the financial performance of our operations. EBITDA
does not give effect to the cash we must use to service our debt or pay our income taxes and thus does not reflect the funds actually
available for capital expenditures. In addition, our presentation of EBITDA may not be comparable to similarly titled measures other
companies report.

We define Free Cash Flow as cash provided by (used in) operations less capital expenditures for property, plant and
equipment, net of disposals. We consider Free Cash Flow to be an important indicator of our ability to service our debt and generate
cash for acquisitions and other strategic investments. We define Net Debt as total debt, including current maturities and capital lease
obligations, minus cash and cash equivalents. We believe that Net Debt is useful to investors as a measure of our financial position.
Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported operating results or cash
flow from operations or any other measure of performance prepared in accordance with GAAP.

Disclosure of Non-GAAP Financial Measures

U.S. Concrete, Inc. and Subsidaries

Reconciliation of Net Income Loss to EBITDA

(amounts in thousands)

Quarter Ended

December 31, 2006

December 31, 2007

Loss from continuing operations

(23,309)

(77,031)

Addback:

Interest Expense, net

6,994

6,956

Income Tax Provision (Benefit)

(8,751)

(4,802)

Asset and Goodwill Impairments

38,964

82,242

Depreciation, Depletion, and Amortization Expense

6,196

7,394

EBITDA

20,094

14,759

EBITDA margin

10.2%

7.4%

Disclosure Non-GAAP Financial Measures

Reconciliation of Net Income (Loss) to EBITDA

(unaudited)

(amounts in thousands)

2006

2005

2004

2003

Net Income (Loss)

(8,090)

12,612

(10,539)

10,303

Cumulative Effect of Change in Accounting Principle

Income (Loss) before Cumulative Effect of Change in

Accounting Principle

(8,090)

12,612

(10,539)

10,303

Addback:

Interest Expense, net

21,585

17,315

16,523

16,855

Income Tax Expense (Benefit)

810

8,121

(6,377)

5,274

Loss on early extinguishment of debt

28,781

Asset and Goodwill Impairments

38,964

541

Depreciation, Depletion, and Amortization Expense

22,322

13,591

12,669

12,441

EBITDA

75,591

51,639

41,598

44,873

EBITDA margin

9.6%

9.0%

8.3%

9.5%

Disclosure Non-GAAP Financial Measures

Reconciliation of Net Loss to EBITDA

(unaudited)

(amounts in thousands)

2007

Net Loss from continuing operations

(65,148)

Addback:

Interest Expense, net

28,092

Income Tax

1,399

Asset and Goodwill Impairments

82,242

Depreciation, Depletion, and Amortization Expense

28,882

EBITDA

75,467

EBITDA margin from continuing operations

9.4%

Disclosure Non-GAAP Financial Measures

U.S. Concrete, Inc. and Subsidaries

Reconciliation of Net Cash Provided (Used) by Operating Activities to Free Cash Flow

(unaudited)

(amounts in thousands)

Estimate

Quarter Ended

Full Year Ended

March 31, 2007

June 30, 2007

September 30, 2007

December 31, 2007

Net Cash Provided (Used) by Operating Activities

(972)

(1,418)

19,869

27,231

44,710

Purchases of property, plant and equipment, net

(7,374)

(4,526)

(5,213)

(10,815)

(27,928)

Free Cash Flow

(8,346)

(5,944)

14,656

16,416

16,782

Longbow Research
Construction Materials Conference
February 21, 2008