U.S. Aggregates, Inc. Reports Preliminary Fourth Quarter and Full Year 2000 Results

- Restates Earnings for First Three Quarters of 2000



- Reaches Interim Agreement with Senior Secured Lenders



- Delays Filing Form 10-K for 2000



- Sells Certain Construction Materials Operations in Utah



Apr 03, 2001, 01:00 ET from U.S. Aggregates, Inc.

    SAN MATEO, Calif., April 3 /PRNewswire/ -- U.S Aggregates, Inc.
 (NYSE:   AGA) today reported preliminary financial results for the fourth
 quarter and twelve months ended December 31, 2000.
     The Company reported fourth quarter sales of $60.7 million and a net loss
 before extraordinary items of approximately $16.5 million, or $1.11 per
 diluted share.  The loss results from a number of factors, including, but not
 limited to, the negative impact of rising fuel costs and a decline in sales
 volumes, a write down of assets held for sale of approximately $8.4 million,
 or $0.37 per diluted share, and a restructuring charge of $2.2 million, or
 $0.10 per diluted share for closing certain of its operations in Nevada and
 Eastern Idaho.  The write down of assets held for sale includes a write down
 of $6.4 million for the sale of certain construction materials operations in
 Utah as discussed below.
     The Company will restate its earnings for the first three quarters of
 2000.  For the first quarter, the Company will restate its net loss of
 $2.6 million, or $0.17 per diluted share, to a net loss of $5.1 million, or
 $0.34 per diluted share.  For the second quarter, the Company will restate its
 net income of $6.8 million, or $0.45 per diluted share, to net income of
 $3.1 million, or $0.20 per diluted share.  For the third quarter, the Company
 will restate its net income of $5.5 million, or $0.36 per diluted share, to
 net income of $1.7 million, or $0.11 per diluted share.  The restatement
 relates primarily to the reclassification of certain capitalized items to
 operating expenses, the recognition of certain additional operating expenses,
 and the establishment of a reserve for self-insurance claims.
     Sales for the twelve months ended December 31, 2000, were $291.7 million.
 The net loss before extraordinary items for the twelve months ended
 December 31, 2000, totaled approximately $16.8 million, or $1.13 per diluted
 share.
     For the 1999 fourth quarter and full year, the Company reported sales of
 $80.0 million and $308.6 million, respectively, and net income before
 extraordinary item of $3.0 million, or $0.20 per diluted share, and
 $14.2 million, or $1.16 per diluted share, respectively.
     Reported sales for 2000 and 1999 include the effect of adopting
 EITF 00-10, which requires that amounts billed to customers related to
 shipping and handling be classified as revenue and that the related costs be
 included in costs of goods sold.
 
     Reaches Interim Agreement with Senior Secured Lenders
     As a result of the fiscal year 2000 financial performance, the Company is
 in default of certain financial covenants required by the terms of the senior
 secured credit facility ("Credit Facility") and the subordinate debt
 agreement.  The Company has reached an agreement with its senior secured
 lenders ("Senior Lenders") to waive all defaults under its Credit Facility
 through April 13, 2001.  The Company is in discussions with its Senior Lenders
 and subordinated debt holder to reach a longer-term solution.
 
     Delays Filing Form 10-K for 2000
     The Company intends to file the Annual Report on Form 10-K for the year
 ended December 31, 2000 and to amend its Form 10-Q filings for the fiscal
 quarters ended March 31, 2000, June 30, 2000, and September 30, 2000, on or
 before April 15, 2001. Immediately after filing the 2000 Form 10-K, U.S.
 Aggregates expects to schedule a conference call to discuss fourth quarter and
 2000 year-end results.
 
     Sells Certain Construction Materials Operations in Utah
     The Company announced that it has sold certain of its construction
 materials operations in Northern Utah to Oldcastle Materials, Inc., a
 subsidiary of CRH plc (Nasdaq:   CRHCY), one of the largest producers of
 aggregates and ready mix in the United States.  The operations sold represent
 less than 15% of the Company's 2000 revenues.
 
     Founded in 1994, U.S. Aggregates, Inc. ("USAI") is a leading producer of
 aggregates.  Aggregates consist of crushed stone, sand and gravel.  The
 Company's products are used primarily for construction and maintenance of
 highways and other infrastructure projects as well as for commercial and
 residential construction. USAI serves local markets in nine states in two fast
 growing regions of the U.S., the Mountain states and the Southeast.
     Certain matters discussed in this release contain forward-looking
 statements and information based on management's belief as well as assumptions
 made by and information currently available to management.  Such statements
 are subject to risks, uncertainties and assumptions including, among other
 matters, future growth in the construction industry; the ability of U.S.
 Aggregates to complete acquisitions and effective integration of acquired
 companies operations; successful implementation of strategic business
 alternatives; and general risks related to the markets in which U.S.
 Aggregates operates.  Should one or more of these risks materialize, or should
 underlying assumptions prove incorrect, actual results may differ materially
 from those projected.  Additional information regarding these risk factors and
 other uncertainties may be found in the Company's filings with the Securities
 and Exchange Commission.
 
 

SOURCE U.S. Aggregates, Inc.
    SAN MATEO, Calif., April 3 /PRNewswire/ -- U.S Aggregates, Inc.
 (NYSE:   AGA) today reported preliminary financial results for the fourth
 quarter and twelve months ended December 31, 2000.
     The Company reported fourth quarter sales of $60.7 million and a net loss
 before extraordinary items of approximately $16.5 million, or $1.11 per
 diluted share.  The loss results from a number of factors, including, but not
 limited to, the negative impact of rising fuel costs and a decline in sales
 volumes, a write down of assets held for sale of approximately $8.4 million,
 or $0.37 per diluted share, and a restructuring charge of $2.2 million, or
 $0.10 per diluted share for closing certain of its operations in Nevada and
 Eastern Idaho.  The write down of assets held for sale includes a write down
 of $6.4 million for the sale of certain construction materials operations in
 Utah as discussed below.
     The Company will restate its earnings for the first three quarters of
 2000.  For the first quarter, the Company will restate its net loss of
 $2.6 million, or $0.17 per diluted share, to a net loss of $5.1 million, or
 $0.34 per diluted share.  For the second quarter, the Company will restate its
 net income of $6.8 million, or $0.45 per diluted share, to net income of
 $3.1 million, or $0.20 per diluted share.  For the third quarter, the Company
 will restate its net income of $5.5 million, or $0.36 per diluted share, to
 net income of $1.7 million, or $0.11 per diluted share.  The restatement
 relates primarily to the reclassification of certain capitalized items to
 operating expenses, the recognition of certain additional operating expenses,
 and the establishment of a reserve for self-insurance claims.
     Sales for the twelve months ended December 31, 2000, were $291.7 million.
 The net loss before extraordinary items for the twelve months ended
 December 31, 2000, totaled approximately $16.8 million, or $1.13 per diluted
 share.
     For the 1999 fourth quarter and full year, the Company reported sales of
 $80.0 million and $308.6 million, respectively, and net income before
 extraordinary item of $3.0 million, or $0.20 per diluted share, and
 $14.2 million, or $1.16 per diluted share, respectively.
     Reported sales for 2000 and 1999 include the effect of adopting
 EITF 00-10, which requires that amounts billed to customers related to
 shipping and handling be classified as revenue and that the related costs be
 included in costs of goods sold.
 
     Reaches Interim Agreement with Senior Secured Lenders
     As a result of the fiscal year 2000 financial performance, the Company is
 in default of certain financial covenants required by the terms of the senior
 secured credit facility ("Credit Facility") and the subordinate debt
 agreement.  The Company has reached an agreement with its senior secured
 lenders ("Senior Lenders") to waive all defaults under its Credit Facility
 through April 13, 2001.  The Company is in discussions with its Senior Lenders
 and subordinated debt holder to reach a longer-term solution.
 
     Delays Filing Form 10-K for 2000
     The Company intends to file the Annual Report on Form 10-K for the year
 ended December 31, 2000 and to amend its Form 10-Q filings for the fiscal
 quarters ended March 31, 2000, June 30, 2000, and September 30, 2000, on or
 before April 15, 2001. Immediately after filing the 2000 Form 10-K, U.S.
 Aggregates expects to schedule a conference call to discuss fourth quarter and
 2000 year-end results.
 
     Sells Certain Construction Materials Operations in Utah
     The Company announced that it has sold certain of its construction
 materials operations in Northern Utah to Oldcastle Materials, Inc., a
 subsidiary of CRH plc (Nasdaq:   CRHCY), one of the largest producers of
 aggregates and ready mix in the United States.  The operations sold represent
 less than 15% of the Company's 2000 revenues.
 
     Founded in 1994, U.S. Aggregates, Inc. ("USAI") is a leading producer of
 aggregates.  Aggregates consist of crushed stone, sand and gravel.  The
 Company's products are used primarily for construction and maintenance of
 highways and other infrastructure projects as well as for commercial and
 residential construction. USAI serves local markets in nine states in two fast
 growing regions of the U.S., the Mountain states and the Southeast.
     Certain matters discussed in this release contain forward-looking
 statements and information based on management's belief as well as assumptions
 made by and information currently available to management.  Such statements
 are subject to risks, uncertainties and assumptions including, among other
 matters, future growth in the construction industry; the ability of U.S.
 Aggregates to complete acquisitions and effective integration of acquired
 companies operations; successful implementation of strategic business
 alternatives; and general risks related to the markets in which U.S.
 Aggregates operates.  Should one or more of these risks materialize, or should
 underlying assumptions prove incorrect, actual results may differ materially
 from those projected.  Additional information regarding these risk factors and
 other uncertainties may be found in the Company's filings with the Securities
 and Exchange Commission.
 
 SOURCE  U.S. Aggregates, Inc.