1073429--3/16/2006--US_CONCRETE

related topics

{acquisition, growth, future}

{condition, economic, financial}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{personnel, key, retain}

{cost, operation, labor}

{competitive, industry, competition}

{operation, natural, condition}

{system, service, information}

{tax, income, asset}

{product, liability, claim}

There are risks related to our internal growth and operating strategy. Our operating results may vary significantly from one reporting period to another and may be adversely affected by the seasonal and cyclical nature of the markets we serve. We may be unsuccessful in continuing to carry out our strategy of growth through acquisitions. We may lose business to competitors who underbid us, and we may be otherwise unable to compete favorably in our highly competitive industry. We depend on third parties for concrete equipment and supplies essential to operate our business. Governmental regulations, including environmental regulations, may result in increases in our operating costs and capital expenditures and decreases in our earnings. Our operations are subject to various hazards that may cause personal injury or property damage and increase our operating costs. The departure of key personnel could disrupt our business, and our business growth will necessitate the successful hiring of new senior managers and executive officers. We may be unable to attract and retain qualified employees. Collective bargaining agreements, work stoppages and other labor relations matters may result in increases in our operating costs, disruptions in our business and decreases in our earnings. Our overall profitability is sensitive to price changes and minor variations in sales volumes. We may incur material costs and losses as a result of claims our products do not meet regulatory requirements or contractual specifications. Our net sales attributable to infrastructure projects could be negatively impacted by a decrease or delay in governmental spending. Some of our plants are susceptible to damage from earthquakes, for which we have a limited amount of insurance. Our results of operations could be adversely affected as a result of goodwill impairments. As a result of capital constraints and other factors, we may not be able to grow as rapidly as we may desire through acquiring additional businesses. Our substantial debt could adversely affect our financial condition. We will require a significant amount of cash to service all our debt. Our existing debt arrangements impose restrictions on us that may adversely affect our ability to operate our business.

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1073429--3/16/2006--US_CONCRETE_INC