RESULTS OF THE 2017 INDUSTRY DATA SURVEY

Transcription

1 RESULTS OF THE 2017 INDUSTRY DATA SURVEY

2 2017 Survey (2016 DATA) 187 Companies 2017 Survey 36% of US Ready Mixed (2016 Concrete DATA) Production 187 Companies 36% of US Ready Mixed Concrete Production

3 Member participation has been steady # of Participants Millions of Yards covered in survey Previous Previous Previous Prior Latest Previous Previous Previous Prior Latest # of firms participating increased from 156 producers in 2012 to 187 producers in 2016

4 Price drove improvement Better (Worse) $ % Revenues $98.21 $ $ $5.06 5% Materials Cost (2.29) -4% Material Margin % as a percent of revenue 44% 45% 45% 0% Operating Costs Plant % Delivery (0.11) 0% Total Operating Costs % + $ $0.54 Operating profit % Selling (0.08) -5% Administrative (0.26) -6% S,G & A (0.34) -6% Interest % Other Income / (Expense) % Profit Before Tax % + $ $3.13 Price (margin) improvement of $2.76 accounted for nearly 90% of improvement in profitability

5 Not everyone is average $25.00 $20.00 $ Profit Before Tax The gap in profitability between the bottom and top quartiles in the survey decreased $2.54 per yard versus the prior year from $22.07 in 2015 to $19.53 in 2016 $10.00 $ $19.53 / cyd. gap $0.00 ($5.00) (1.34) NRMCA Bottom Upper Average Quartile Quartile The gap in profitability from average to top quartile was $9.05 per yard A wide gap in profitability remains

6 Trends top line revenues $ Revenue per yard $ $ $ $95.00 $90.00 $85.00 $80.00 $90.10 $93.42 $ % $ % +1.9% +5.1% +3.7% $ % Revenue per yard is up 5% year over year $ Revenue per yard up 20% over since 2012

7 Trends profit before tax Profit Before Tax per yard $10.00 $7.71 $5.00 $4.58 $2.22 $0.00 ($2.18) ($1.03) ($5.00) ($7.23) ($10.00) Previous Previous Previous Previous Prior Latest Record profits per yard

8 COMPONENTS OF A CUBIC YARD OF READY MIX CONCRETE, CO/UT PACIFIC COMBINED NORTHWEST VS. VS. UPPER, LOWER QUARTILES AND AND AVERAGE MEMBER PACIFIC CO/UT NORTHWEST COMBINED Avg Selling Price $ $ cyd $60.57 $ % 56% $19.57 $ % 17.6% $ % $8.49 $ % 10.3% $14.76$17.32 $ % 15% 6.7% LOWER QUARTILE Avg Selling Price $ cyd $ % $ % $ % $ % -$ % UPPER QUARTILE Avg Selling Price $ cyd $ % $ % $ % $ % $ % AVERAGE MEMBER Avg Selling Price $ cyd $ % $ % $ % $ % $ % $0 $0 $10 $10 $20 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 MATERIAL COSTS DELIVERYCOSTS PLANT COSTS FIXED COSTS PRE-TAX PROFIT/LOSS 2012 year data

9 $ $ $ $ Pacific Northwest vs. Average Member and $ Upper and Lower Quartiles $ $ $ $ $ $ $ $ $ $80.00 $80.00 $60.00 $60.00 $40.00 $40.00 $55.36 $50.86 $55.45 $48.70 $48.70 $42.39 $42.39 $55.79 $55.79 $20.00 $- $- $18.19 $18.19 $21.38 $21.38 $20.16 $20.09 $17.32 $18.92 $17.11 $16.33 $18.92 $13.14 $16.33 $13.14 $11.99 $14.76 $12.23 $11.81 $(1.34) $10.61 $11.81 $7.71 $(1.34) $7.76 $7.71 $4.10 $4.10 CO/UT Combined Rocky Mountain Region Average Member Lowest Quartile Upper Quartile Pacific Northwest Region Average Member Lowest Quartile Upper Quartile $(20.00) $(20.00) Average Selling Price Materials Margin Fixed Costs Pretax Profit EBITDA Average Selling Price Materials Margin Fixed Costs Pretax Profit EBITDA

10 $19.00 $16.00 Profit per yard by Region $13.00 $10.00 $7.00 $17.11 $4.00 $1.00 $7.62 $5.44 $6.68 $7.64 $9.76 $7.76 $4.40 $7.71 Average Member Pacific SW Pacific NW Rocky Mountain Great Lakes South Central North Central South Eastern NE MidAtlantic Rocky Mountain region outperformed again

11 Pacific Northwest vs. the Average Member Average Pacific NRMCA Better (Worse) than NRMCA Avge Member Northwest Member $ % Revenues % Materials Costs (5.17) -9% Material Margin % as a percent of revenue 44% 45% 1% Operating Costs Plant (3.19) -28% Delivery (1.90) -8% (*) Total operating Costs (5.09) -15% Operating Profit (2.93) -21% S, G & A % Interest Expense % Other Income (Expense) % Profit Before Tax % Pacific Northwest beats on price but the Average Member has lower operating costs. Higher S, G & A reduces the average member s profit.

12 PRODUCTION TO PER CAPITA USAGE U.S. Thousands 500, , , , , , ,000 RMC PRODUCTION PER CAPITA USAGE

13 Ready Mixed Production ,290, ,768, ,000,000 30,000, ,091, ,614, ,333, ,498, ,301, ,644,000 25,000, ,000,000 23,133,000 21,839,000 20,105,000 19,774,000 18,970,000 20,000,000 20,063,000 19,958,000 19,504, ,000, ,673,000 13,441,000 15,898, ,784,000 11,093,000 10,812,000 11,790,000 13,465,000 14,063,000 12,767,000 14,197,000 13,175,000 13,396,000 14,408, ,767, ,991,000 15,000, ,000,000 10,799,000 10,684,000 10,901,000 7,094, ,781, ,444,000 9,262,000 10,000,000 7,719, ,039,000 7,188,000 8,120,000 8,739,000 9,472, ,000, ,551, ,423,000 7,386,000 5,000,000 US Production (cyd) Pacific Northwest Production OR/WA Combined Production 200,000,

14 Pacific Northwest - Comparison of CYD Produced to Sales Price per CYD 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 $ $ $ ,189,000 $ ,839,000 24,566,000 $ $ $ ,063,000 19,504,000 $ $ ,133,000 $ $ ,970,000 $ ,105,000 19,774,000 19,958,000 13,396,000 13,175,000 $96.20 $ ,898,000 $71.92 $ ,053,000 $68.76 $68.62 $ ,408,000 14,197,000 13,441,000 $60.00 $ ,000,000 $52.66 $ $20.00 Pacific Northwest CYD Produced PN - Price per CYD

15 30,000,000 25,000,000 PRODUCTION TO PER CAPITA USAGE OREGON/WASHINGTON COMBINED ,000, ,000, ,000,000 5,000, PN Production - CYD PN Per Capita

16 16,000, ,000,000 15,000,000 23,000, ,000,000 14,805,000 21,000,000 11,000,000 15,000,000 10,000,000 13,000,000 9,000,000 11,000,000 8,000,000 9,000,000 7,000,000 PRODUCTION TO PER CAPITA USAGE PACIFIC NORTHWEST REGION 14,540, ,867,000 23,133, ,000,000 13,881,000 19,000,000 20,105,000 20,063,000 12,823,000 14,011,000 21,839,000 12,000,000 19,958,000 17,000,000 19,504, ,774,000 12,744,000 15,939,000 24,566,000 15,041,000 24,189,000 14,197,000 9,043, ,396,000 10,472,000 14,408,000 9,148,000 9,400,000 12,198, ,209,000 15,898,000 16,771, ,003, ,386, ,175,000 Pacific Northwest Production 13,441,000 CO/UT Production Pacific Northwest (cyd) Per CO/UT CapitaPer Capita 15,053,

17 OR/WA vs. PACIFIC NORTHWEST & AVERAGE MEMBER Average OR & WA Pacific NRMCA Combined Northwest Member Revenues Materials Costs Material Margin as a percent of revenue 49% 44% 45% Operating Costs Plant Delivery Total operating Costs Operating Profit S, G & A Interest Expense Other Income (Expense) (0.02) Profit Before Tax

18 100% % of Ready Mixed Produced, OR/WA Combined vs. Pacific Northwest Region 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Pacific Northwest OR/WA Combined

19 Ready Mixed