U.S. Concrete Announces Divestiture of Its Sacramento, California Operations

• Press Release
• Source: U.S. Concrete, Inc.
• On 12:09 pm EDT, Tuesday September 15, 2009

HOUSTON, Sept. 15 /PRNewswire-FirstCall/ -- U.S. Concrete, Inc. (Nasdaq: RMIX - News) announced today that it has sold its four ready-mixed concrete plants in Sacramento, California. The sales price was approximately $6.0 million, plus payment for certain inventory on hand at closing. During 2008 and the first six months of 2009, these operations generated revenues of $22.0 million and $3.5 million on ready-mixed concrete volumes of 219,083 and 38,419, respectively. The sales proceeds were used to pay down debt under the Company's revolving credit facility. As a result of the transaction, the Company expects to report a loss on the sale. In accordance with United States generally accepted accounting principles, the Company will be required to test the remaining goodwill, for the portion of the reporting unit that was retained, for impairment.

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 products. The Company has 129 fixed and 12 portable ready-mixed concrete plants, seven precast concrete plants and seven producing aggregates facilities. During 2008 (including acquired volumes), these plant facilities produced approximately 6.3 million cubic yards of ready-mixed concrete and 3.5 million tons of aggregates. For more information on U.S. Concrete, visit www.us-concrete.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains various forward-looking statements and information that are based on management's beliefs, 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 information includes, but is not limited to, statements regarding the projected loss on the sale of the Sacramento assets, and any resulting goodwill impairment. 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 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, 2008, and the Company's subsequently filed Quarterly Report on Form 10-Q.

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