Summit Materials, Inc. Reports Fourth Quarter and Full Year 2019 Results

Company Release - 2/5/2020 6:00 AM ET

- Annual operating income increased 31.4% to $213.6 million

-Annual net income attributable to Summit Inc. increased 74.2% to $59.1 million

-Aggregates volumes increased 13.3%

- Adjusted EBITDA increased 13.6% to $461.5 million

DENVER--(BUSINESS WIRE)-- Summit Materials, Inc. (NYSE: SUM, “Summit,” "Summit Inc." or the “Company”), a leading vertically integrated construction materials company, today announced results for the fourth quarter and full year 2019.

For the three months ended December 28, 2019, the Company reported net income attributable to Summit Inc. of $35.7 million, or $0.32 per basic share, compared to a net loss attributable to Summit Inc. of $19.2 million, or $(0.17) per basic share in the comparable prior year period. Summit reported adjusted diluted net income of $71.5 million, or $0.62 per adjusted diluted share as compared to adjusted diluted net loss of $18.6 million, or $(0.16) per adjusted diluted share in the prior year period. The increase in adjusted diluted net income in the fourth quarter 2019 was partially due to an annual re-measurement of the Company's Tax Receivable Agreement.

For the year ended December 28, 2019, the Company reported net income attributable to Summit Inc. of $59.1 million, or $0.53 per basic share, compared to net income attributable to Summit Inc. of $33.9 million, or $0.30 per basic share in the comparable prior year period. Summit reported adjusted diluted net income of $108.8 million, or $0.94 per adjusted diluted share as compared to adjusted diluted net income of $17.4 million, or $0.15 per adjusted diluted share in the prior year period. The increase in 2019 adjusted diluted net income was partially due to an annual re-measurement of the Company's Tax Receivable Agreement.

Summit's net revenue increased 13.7% in the fourth quarter and 6.4% in full year 2019 compared to the fourth quarter and full year 2018, respectively. While volume and price increased in all lines of business in 2019 relative to the prior year, aggregates contributed the largest proportion of incremental net revenue. The Company reported operating income of $213.6 million in 2019, compared to $162.5 million in the prior year. Summit's operating margin expanded to 10.5% in 2019 from 8.5% in 2018 on net revenue gains in excess of our cost of revenue, partially offset by increases in general and administrative, depreciation, depletion, amortization and accretion expenses. Adjusted EBITDA increased 29.6% in the fourth quarter to $121.1 million as compared to $93.4 million in 2018. For the full year 2019, Adjusted EBITDA was $461.5 million, an increase of 13.6% compared to 2018.

Tom Hill, CEO of Summit Materials, commented, "Sustained public sector demand coupled with improved pricing contributed to margin expansion in our aggregates and products lines of business late in the quarter, resulting in the highest fourth quarter Adjusted EBITDA in the Company's history. For the full year 2019, our aggregates business delivered strong results due in part to strong performance from our East Segment."

As of December 28, 2019, the Company had $311.3 million in cash and $1.9 billion in debt outstanding. For the year ended December 28, 2019, cash flow from operations was $337.2 million while cash paid for capital equipment was $177.5 million. Brian Harris, CFO of Summit Materials, added, "We were disciplined and selective on acquisitions while generating increased cash flow from operations, which combined with lower capital expenditures enabled us to lower our leverage ratio."

For the year ended December 28, 2019, organic sales volumes increased 9.5% in aggregates, 2.8% in cement, 0.1% in ready-mix concrete, and 2.6% in asphalt relative to the same period last year. Full year 2019 organic average selling prices increased 6.5% in aggregates, 1.7% in cement, 3.3% in ready-mix concrete, and 6.2% in asphalt relative to the prior year period.

Summit provided 2020 full year Adjusted EBITDA guidance of $460 million to $500 million. Hill continued, "In 2020 we anticipate continued growth in public markets, as many states enact new fuel taxes, in residential markets where entry-level housing demand continues to exceed supply, and in non-residential markets where low rise commercial development and windfarm work present opportunities."

The Company provided 2020 capital expenditure guidance of approximately $185 million to $205 million, which include $65 million to $80 million estimated for greenfield projects.

Full-Year 2019 | Results by Line of Business

Aggregates Business: Aggregates net revenues increased by 25.6% to $469.7 million during 2019, when compared to the prior year due to higher organic volume and selling price, and to a lesser extent, our acquisition program. Aggregates adjusted cash gross profit margin increased to 60.2% in 2019, compared to 59.4% in 2018 primarily due to higher average selling prices. Organic aggregates sales volumes increased 9.5% in 2019 as compared to 2018 led by higher volumes in our Missouri, Kansas and Texas markets. Organic aggregates pricing increased 6.5% as compared to 2018, primarily due to higher pricing in Missouri, and to a lesser extent, higher prices in many of our other markets.

Cement Business: Cement net revenues increased 3.5% to $290.7 million during 2019, when compared to 2018. Cement adjusted cash gross profit margin decreased to 40.3% in 2019, compared to 44.3% in 2018 due to higher distribution costs related to flooding and unplanned maintenance. Sales volume of cement increased 2.8% in 2019 when compared to 2018 on higher sales in northern markets relative to the prior year. Cement average selling prices increased 1.7% in 2019 relative to 2018.

Products Business: Products net revenues increased to $988.6 million during 2019 compared to $967.5 million in 2018. Products adjusted cash gross profit margin increased to 22.1% in 2019, versus 21.1% in 2018. Organic sales volumes of ready-mix concrete increased 0.1% in 2019, while organic average selling prices increased 3.3% as compared to 2018, led by pricing gains in Texas as well as in a number of our other markets. Organic sales volumes of asphalt increased 2.6% in 2019, while organic average selling prices increased 6.2% during 2019 as higher volume and pricing were reported in our Utah, Texas, and Kentucky markets.

Fourth Quarter 2019 | Results by Line of Business

Aggregates Business: Aggregates net revenues increased by 24.2% to $115.6 million in the fourth quarter 2019, when compared to the prior year period. Aggregates adjusted cash gross profit margin increased to 61.9% in the fourth quarter 2019 compared to 54.8% on higher volumes, increased average selling prices and product mix. Aggregates sales volumes increased 15.4% in the fourth quarter 2019, when compared to the prior-year period on higher organic volume growth, particularly in Missouri, Kansas, and Texas. Average selling prices for aggregates increased 4.3% in the fourth quarter 2019 when compared to the prior year period.

Cement Business: Cement net revenues increased 3.6% to $69.9 million in the fourth quarter 2019, when compared to the prior-year period. Cement adjusted cash gross profit margin decreased to 45.4% in the fourth quarter, compared to 46.4% in the prior year period, as the Company incurred some unplanned maintenance and winter storage costs. Organic sales volume of cement increased 2.7% in the fourth quarter, when compared to the prior year period, on higher sales in certain southern markets along the Mississippi River versus a year ago. Organic average selling prices on cement increased 2.6% in the fourth quarter when compared to the prior year period.

Products Business: Products net revenues were $251.4 million in the fourth quarter 2019, compared to $216.1 million in the prior year period. Products adjusted cash gross profit margin increased to 23.9% in the fourth quarter, versus 21.6% in the prior year period. Our organic average sales price for ready-mix concrete increased 6.5%, coupled with a 12.6% increase in organic sales volumes of ready-mix concrete, led by higher volumes in Utah and Texas. Our organic average sales price for asphalt increased 4.3% while we had a 4.6% increase in asphalt organic sales volumes, driven in part by volume growth in Utah, Texas, and Kentucky.

Full-Year 2019 | Results By Reporting Segment

Net revenue increased by 6.4% to $2.0 billion in 2019, versus $1.9 billion in 2018. The increase in consolidated net revenue relative to 2019 was primarily attributable to a 16.2% increase in East Segment net revenue, combined with a 3.5% increase in Cement Segment net revenue and a 1.1% increase in West Segment net revenue. The Company reported operating income of $213.6 million in 2019, compared to $162.5 million in the prior year. Adjusted EBITDA was $461.5 million in 2019 compared to $406.3 million in 2018.

West Segment: The West Segment reported operating income of $109.2 million in 2019, compared to $92.1 million in 2018, due in part to higher revenue from aggregates and asphalt. Adjusted EBITDA increased to $205.0 million in 2019, compared to $189.0 million in 2018. Aggregates revenue in 2019 increased 11.4% over 2018 as a result of a 5.8% increase in organic volumes, led by volume growth in Texas, and a 2.7% increase in organic average selling prices, led by pricing gains in Utah and Colorado. Ready-mix concrete revenue in 2019 increased 2.9% over 2018, reflecting improved weather conditions in Utah and the Intermountain geographies relative to a year ago. A 1.5% decrease in organic ready-mix concrete volumes was offset by a 3.6% increase in organic average sales prices. Asphalt revenue increased by 14.7% in 2019, as organic volumes increased 2.8% and average sales prices increased 5.7% compared to 2018, when the Company's liquid asphalt terminal did not operate for the full year 2018 due to hurricane-related repairs.

East Segment: The East Segment reported operating income of $101.8 million in 2019, compared to $59.6 million in 2018. The increase in East Segment operating income was mainly attributable to higher net revenue from aggregates. Adjusted EBITDA increased to $187.6 million in 2019, compared to $138.0 million in 2018. Aggregates net revenue increased 29.2%, primarily due to a 12.9% increase in organic volume as well as an increase in organic average sales prices of 9.1%, mainly related to public repair work. Organic ready-mix concrete revenue increased 7.7% due to a 5.4% increase in volume and a 2.2% increase in price. Organic asphalt revenue increased 16.0%, reflecting a 2.1% increase in volume, led by our Kentucky markets, combined with a 7.5% increase in price, led by our Kansas markets.

Cement Segment: The Cement Segment reported operating income of $64.7 million in 2019, compared to $75.8 million in 2018. Adjusted EBITDA declined to $103.4 million in 2019, compared to $111.4 million in 2018. Cement Segment revenue increased 3.5%, reflecting a 2.8% increase in volume and a 1.7% increase in price. Cement segment operating income declined as higher revenue was more than offset by additional distribution costs incurred as a result of shipping challenges on the Mississippi River due to flooding, as well as incremental plant downtime.

Fourth Quarter 2019 | Results By Reporting Segment

Net revenue increased by 13.7% to $506.3 million in the fourth quarter 2019, versus $445.1 million in the prior year period. The improvement in net revenue was primarily attributable to organic volume and price growth in aggregates and ready-mix concrete. The Company reported operating income of $59.9 million in the fourth quarter 2019, compared to $28.5 million in the prior year period. Net income increased to $36.4 million in the fourth quarter of 2019, compared to a loss of $18.6 million in the prior year period. Adjusted EBITDA increased 29.6% to $121.1 million in the fourth quarter of 2019, compared to $93.4 million in the prior year period.

West Segment: The West Segment reported operating income of $30.7 million in the fourth quarter 2019, compared to $11.6 million in the prior year period. Adjusted EBITDA increased to $53.9 million in the fourth quarter 2019, compared to $37.7 million in the prior year period. Improvements in operating income reflected increased demand for aggregates across the Segment as well as more favorable weather conditions than a year ago. Aggregates revenue in the fourth quarter increased 8.9% over the prior year period including a 11.4% increase in organic volumes despite a 2.2% decrease in organic average sales prices as higher pricing in Utah and British Columbia was offset by lower pricing in Texas. Ready-mix concrete revenue in the fourth quarter 2019 increased 15.5% over the prior year period, as a 7.1% increase in organic volumes and a 7.7% increase in organic average sales prices reflected favorable weather and market conditions in Utah and in parts of Texas. Asphalt revenue increased by 19.8% in the fourth quarter 2019 over the prior year period on a 10.7% increase in volume and a 5.9% increase in price, led by our Utah, Texas, and British Columbia operations.

East Segment: The East Segment reported operating income of $29.8 million in the fourth quarter 2019, compared to $15.5 million in the prior year period. Adjusted EBITDA increased to $53.1 million in the fourth quarter 2019, compared to $37.5 million in the prior year period. Adjusted EBITDA was favorably impacted by a higher than expected contribution related to public repair work. Aggregates revenue increased 29.4% due to increases resulting from a 19.0% and 8.7% increase in organic volumes and average sales prices, respectively, driven by growth in Missouri and Kansas. Ready-mix concrete revenue increased 34.6% due to an increase in organic volumes while average selling prices increased 3.0%. Asphalt revenue increased 1.9% despite a 4.5% decrease in organic volumes slightly offset by a 1.4% increase in organic average sales prices reflecting strength in Kentucky and parts of Kansas.

Cement Segment: The Cement Segment reported operating income of $20.6 million in the fourth quarter 2019, an increase from $19.3 million in the prior year period. Adjusted EBITDA decreased to $27.9 million in the fourth quarter 2019, compared to $28.8 million in the prior year period, due primarily to the lingering effects of shipping constraints on the Mississippi River. Despite these challenges, the segment reported increases of 2.7% and 2.6% in organic sales volumes and organic average selling prices, respectively, during the fourth quarter 2019 as compared to the prior year period.

Liquidity and Capital Resources

As of December 28, 2019, the Company had cash on hand of $311.3 million and borrowing capacity under its revolving credit facility of $329.8 million. The borrowing capacity on the revolving credit facility is fully available to the Company within the terms and covenant requirements of its credit agreement. As of December 28, 2019, the Company had $1.9 billion in debt outstanding.

Financial Outlook

For full-year 2020, the Company estimates its Adjusted EBITDA to be in the range of $460 million to $500 million. For full-year 2020, the Company estimates its capital expenditures to be in the range of $185 million to $205 million, including approximately $65 million to $80 million estimated for greenfield opportunities.

Webcast and Conference Call Information

Summit Materials will conduct a conference call on Wednesday, February 5, 2020, at 11:00 a.m. eastern time (9:00 a.m. mountain time) to review the Company’s fourth quarter and full year 2019 financial results. A webcast of the conference call and accompanying presentation materials will be available in the Investors section of Summit’s website at investors.summit-materials.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference:

Domestic Live:

1-877-823-8690

International Live:

1-825-312-2236

Conference ID:

7192995

Password:

Summit

To listen to a replay of the teleconference, which will be available through February 12, 2020:

Domestic Replay:

1-800-585-8367

International Replay:

1-416-621-4642

Conference ID:

7192995

About Summit Materials

Summit Materials is a leading vertically integrated materials-based company that supplies aggregates, cement, ready-mix concrete and asphalt in the United States and British Columbia, Canada. Summit is a geographically diverse, materials-based business of scale that offers customers a single-source provider of construction materials and related downstream products in the public infrastructure, residential and nonresidential end markets. Summit has a strong track record of successful acquisitions since its founding and continues to pursue growth opportunities in new and existing markets. For more information about Summit Materials, please visit www.summit-materials.com.

Non-GAAP Financial Measures

The Securities and Exchange Commission (“SEC”) regulates the use of “non-GAAP financial measures,” such as Adjusted Net Income (Loss), Adjusted Diluted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Free Cash Flow, Net Leverage and Net Debt which are derived on the basis of methodologies other than in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). We have provided these measures because, among other things, we believe that they provide investors with additional information to measure our performance, evaluate our ability to service our debt and evaluate certain flexibility under our restrictive covenants. Our Adjusted Net Income (Loss), Adjusted Diluted EPS, Adjusted EBITDA, Further Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Free Cash Flow, Net Leverage and Net Debt may vary from the use of such terms by others and should not be considered as alternatives to or more important than net income (loss), operating income (loss), revenue or any other performance measures derived in accordance with U.S. GAAP as measures of operating performance or to cash flows as measures of liquidity.

Adjusted EBITDA, Adjusted EBITDA Margin, and other non-GAAP measures have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of the limitations of Adjusted EBITDA are that these measures do not reflect: (i) our cash expenditures or future requirements for capital expenditures or contractual commitments; (ii) changes in, or cash requirements for, our working capital needs; (iii) interest expense or cash requirements necessary to service interest and principal payments on our debt; and (iv) income tax payments we are required to make. Because of these limitations, we rely primarily on our U.S. GAAP results and use Adjusted EBITDA, Adjusted EBITDA Margin and other non-GAAP measures on a supplemental basis.

Adjusted EBITDA, Further Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Adjusted Net Income (Loss), Adjusted Diluted EPS, Free Cash Flow, Net Leverage and Net Debt reflect additional ways of viewing aspects of our business that, when viewed with our GAAP results and the accompanying reconciliations to U.S. GAAP financial measures included in the tables attached to this press release, may provide a more complete understanding of factors and trends affecting our business. We strongly encourage investors to review our consolidated financial statements in their entirety and not rely on any single financial measure. Reconciliations of the non-GAAP measures used in this press release are included in the attached tables. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to historical or current facts, and you can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “trends,” “plans,” “estimates,” “projects” or “anticipates” or similar expressions that concern our strategy, plans, expectations or intentions. All statements made relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, it is very difficult to predict the effect of known factors, and, of course, it is impossible to anticipate all factors that could affect our actual results. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be realized. Important factors could affect our results and could cause results to differ materially from those expressed in our forward-looking statements, including but not limited to the factors discussed in the section entitled “Risk Factors” in Summit Inc.’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018 as filed with the Securities and Exchange Commission (the “SEC”), any factors discussed in the section entitled “Risk Factors” in any of our subsequently filed SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 28, 2019, which is expected to be filed on or about the date of this press release, and the following:

  • our dependence on the construction industry and the strength of the local economies in which we operate;
  • the cyclical nature of our business;
  • risks related to weather and seasonality;
  • risks associated with our capital-intensive business;
  • competition within our local markets;
  • our ability to execute on our acquisition strategy, successfully integrate acquisitions with our existing operations and retain key employees of acquired businesses;
  • our dependence on securing and permitting aggregate reserves in strategically located areas;
  • declines in public infrastructure construction and delays or reductions in governmental funding, including the funding by transportation authorities and other state agencies;
  • environmental, health, safety and climate change laws or governmental requirements or policies concerning zoning and land use;
  • costs associated with pending and future litigation;
  • shortages of, or increases in prices for commodities, labor and other production and delivery inputs;
  • conditions in the credit markets;
  • our ability to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us;
  • material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual specifications;
  • cancellation of a significant number of contracts or our disqualification from bidding for new contracts;
  • special hazards related to our operations that may cause personal injury or property damage not covered by insurance;
  • our substantial current level of indebtedness, including our exposure to variable interest rate risk;
  • our dependence on senior management and other key personnel, and our ability to retain and attract qualified personnel;
  • supply constraints or significant price fluctuations in the electricity and petroleum-based resources that we use, including diesel and liquid asphalt;
  • climate change and climate change legislation or regulations;
  • unexpected operational difficulties;
  • interruptions in our information technology systems and infrastructure; including cybersecurity and data leakage risks; and
  • potential labor disputes, strikes, other forms of work stoppage or other union activities.

All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements. Any forward-looking statement that we make herein speaks only as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

($ in thousands, except share and per share amounts)

 

 

 

Three months ended

 

Year ended

 

 

December 28,

 

December 29,

 

December 28,

 

December 29,

 

 

2019

 

2018

 

2019

 

2018

Revenue:

 

 

 

 

 

 

 

 

Product

 

$

430,463

 

 

$

370,563

 

 

$

1,724,462

 

 

$

1,600,159

 

Service

 

75,796

 

 

74,527

 

 

306,185

 

 

309,099

 

Net revenue

 

506,259

 

 

445,090

 

 

2,030,647

 

 

1,909,258

 

Delivery and subcontract revenue

 

50,269

 

 

45,940

 

 

191,493

 

 

191,744

 

Total revenue

 

556,528

 

 

491,030

 

 

2,222,140

 

 

2,101,002

 

Cost of revenue (excluding items shown separately below):

 

 

 

 

 

 

 

 

Product

 

269,960

 

 

244,378

 

 

1,116,662

 

 

1,058,544

 

Service

 

50,627

 

 

54,865

 

 

218,177

 

 

225,491

 

Net cost of revenue

 

320,587

 

 

299,243

 

 

1,334,839

 

 

1,284,035

 

Delivery and subcontract cost

 

50,269

 

 

45,940

 

 

191,493

 

 

191,744

 

Total cost of revenue

 

370,856

 

 

345,183

 

 

1,526,332

 

 

1,475,779

 

General and administrative expenses

 

72,011

 

 

62,634

 

 

262,926

 

 

253,609

 

Depreciation, depletion, amortization and accretion

 

52,962

 

 

54,247

 

 

217,102

 

 

204,910

 

Transaction costs

 

773

 

 

421

 

 

2,222

 

 

4,238

 

Operating income

 

59,926

 

 

28,545

 

 

213,558

 

 

162,466

 

Interest expense

 

28,086

 

 

29,932

 

 

116,509

 

 

116,548

 

Loss on debt financings

 

 

 

 

 

14,565

 

 

149

 

Tax receivable agreement expense (benefit)

 

16,237

 

 

(22,684

)

 

16,237

 

 

(22,684

)

Gain on sale of business

 

 

 

 

 

 

 

(12,108

)

Other income, net

 

(3,623

)

 

(3,574

)

 

(11,977

)

 

(15,516

)

Income from operations before taxes

 

19,226

 

 

24,871

 

 

78,224

 

 

96,077

 

Income tax (benefit) expense

 

(17,171

)

 

43,498

 

 

17,101

 

 

59,747

 

Net income (loss)

 

36,397

 

 

(18,627

)

 

61,123

 

 

36,330

 

Net income attributable to Summit Holdings (1)

 

726

 

 

536

 

 

2,057

 

 

2,424

 

Net income (loss) attributable to Summit Inc.

 

$

35,671

 

 

$

(19,163

)

 

$

59,066

 

 

$

33,906

 

Earnings (Loss) per share of Class A common stock:

 

 

 

 

 

 

 

 

Basic

 

$

0.32

 

 

$

(0.17

)

 

$

0.53

 

 

$

0.30

 

Diluted

 

$

0.31

 

 

$

(0.17

)

 

$

0.52

 

 

$

0.30

 

Weighted average shares of Class A common stock:

 

 

 

 

 

 

 

 

Basic

 

112,755,444

 

 

111,656,069

 

 

112,204,067

 

 

111,380,175

 

Diluted

 

114,036,924

 

 

111,656,069

 

 

112,684,718

 

 

112,316,646

 

________________________________________________________

(1)

Represents portion of business owned by pre-IPO investors rather than by Summit.

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

($ in thousands, except share and per share amounts)

 

 

 

December 28,

 

December 29,

 

 

2019

 

2018

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

311,319

 

 

$

128,508

 

Accounts receivable, net

 

253,256

 

 

214,518

 

Costs and estimated earnings in excess of billings

 

13,088

 

 

18,602

 

Inventories

 

204,787

 

 

213,851

 

Other current assets

 

13,831

 

 

16,061

 

Total current assets

 

796,281

 

 

591,540

 

Property, plant and equipment

 

1,747,449

 

 

1,780,132

 

Goodwill

 

1,199,699

 

 

1,192,028

 

Intangible assets

 

23,498

 

 

18,460

 

Deferred tax assets

 

212,333

 

 

225,397

 

Operating lease right-of-use assets

 

32,777

 

 

 

Other assets

 

55,519

 

 

50,084

 

Total assets

 

$

4,067,556

 

 

$

3,857,641

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Current portion of debt

 

$

7,942

 

 

$

6,354

 

Current portion of acquisition-related liabilities

 

32,700

 

 

34,270

 

Accounts payable

 

116,359

 

 

107,702

 

Accrued expenses

 

120,005

 

 

100,491

 

Current operating lease liabilities

 

8,427

 

 

 

Billings in excess of costs and estimated earnings

 

13,864

 

 

11,840

 

Total current liabilities

 

299,297

 

 

260,657

 

Long-term debt

 

1,851,057

 

 

1,807,502

 

Acquisition-related liabilities

 

19,801

 

 

49,468

 

Tax receivable agreement liability

 

326,965

 

 

309,674

 

Noncurrent operating lease liabilities

 

25,381

 

 

 

Other noncurrent liabilities

 

100,282

 

 

88,195

 

Total liabilities

 

2,622,783

 

 

2,515,496

 

Stockholders’ equity:

 

 

 

 

Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 113,309,385 and 111,658,927 shares issued and outstanding as of December 28, 2019 and December 29, 2018, respectively

 

1,134

 

 

1,117

 

Class B common stock, par value $0.01 per share; 250,000,000 shares authorized, 99 shares issued and outstanding as of December 28, 2019 and December 29, 2018

 

 

 

 

Additional paid-in capital

 

1,234,020

 

 

1,194,204

 

Accumulated earnings

 

188,805

 

 

129,739

 

Accumulated other comprehensive income

 

3,448

 

 

2,681

 

Stockholders’ equity

 

1,427,407

 

 

1,327,741

 

Noncontrolling interest in Summit Holdings

 

17,366

 

 

14,404

 

Total stockholders’ equity

 

1,444,773

 

 

1,342,145

 

Total liabilities and stockholders’ equity

 

$

4,067,556

 

 

$

3,857,641

 

 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

($ in thousands)

 

 

 

Year ended

 

 

December 28,

 

December 29,

 

 

2019

 

2018

Cash flow from operating activities:

 

 

 

 

Net income

 

$

61,123

 

 

$

36,330

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation, depletion, amortization and accretion

 

222,862

 

 

208,772

 

Share-based compensation expense

 

20,403

 

 

25,378

 

Net gain on asset disposals

 

(10,294

)

 

(30,093

)

Non-cash loss on debt financings

 

2,850

 

 

 

Change in deferred tax asset, net

 

16,012

 

 

57,490

 

Other

 

(2,135

)

 

2,018

 

(Increase) decrease in operating assets, net of acquisitions and dispositions:

 

 

 

 

Accounts receivable, net

 

(37,049

)

 

(5,796

)

Inventories

 

8,582

 

 

(11,598

)

Costs and estimated earnings in excess of billings

 

5,558

 

 

(8,702

)

Other current assets

 

5,465

 

 

(7,159

)

Other assets

 

5,085

 

 

(106

)

(Decrease) increase in operating liabilities, net of acquisitions and dispositions:

 

 

 

 

Accounts payable

 

18,903

 

 

(13,403

)

Accrued expenses

 

7,640

 

 

(16,544

)

Billings in excess of costs and estimated earnings

 

1,988

 

 

(5,052

)

Tax receivable agreement liability

 

17,291

 

 

(21,666

)

Other liabilities

 

(7,100

)

 

(501

)

Net cash provided by operating activities

 

337,184

 

 

209,368

 

Cash flow from investing activities:

 

 

 

 

Acquisitions, net of cash acquired

 

(5,392

)

 

(246,017

)

Purchases of property, plant and equipment

 

(177,495

)

 

(220,685

)

Proceeds from the sale of property, plant and equipment

 

21,173

 

 

21,635

 

Proceeds from sale of business

 

 

 

21,564

 

Other

 

(1,095

)

 

3,804

 

Net cash used for investing activities

 

(162,809

)

 

(419,699

)

Cash flow from financing activities:

 

 

 

 

Proceeds from debt issuances

 

300,000

 

 

64,500

 

Debt issuance costs

 

(6,312

)

 

(550

)

Payments on debt

 

(270,229

)

 

(85,042

)

Payments on acquisition-related liabilities

 

(33,883

)

 

(36,504

)

Distributions from partnership

 

 

 

(69

)

Proceeds from stock option exercises

 

19,076

 

 

15,615

 

Other

 

(502

)

 

(1,943

)

Net cash provided by (used in) financing activities

 

8,150

 

 

(43,993

)

Impact of foreign currency on cash

 

286

 

 

(724

)

Net increase (decrease) in cash

 

182,811

 

 

(255,048

)

Cash and cash equivalents—beginning of period

 

128,508

 

 

383,556

 

Cash and cash equivalents—end of period

 

$

311,319

 

 

$

128,508

 

 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Revenue Data by Segment and Line of Business

($ in thousands)

 

 

 

Three months ended

 

Year ended

 

 

December 28,

 

December 29,

 

December 28,

 

December 29,

 

 

2019

 

2018

 

2019

 

2018

Segment Net Revenue:

 

 

 

 

 

 

 

 

West

 

$

249,694

 

 

$

219,180

 

 

$

1,022,730

 

 

$

1,011,155

 

East

 

186,705

 

 

158,485

 

 

717,213

 

 

617,314

 

Cement

 

69,860

 

 

67,425

 

 

290,704

 

 

280,789

 

Net Revenue

 

$

506,259

 

 

$

445,090

 

 

$

2,030,647

 

 

$

1,909,258

 

 

 

 

 

 

 

 

 

 

Line of Business - Net Revenue:

 

 

 

 

 

 

 

 

Materials

 

 

 

 

 

 

 

 

Aggregates

 

$

115,620

 

 

$

93,063

 

 

$

469,670

 

 

$

373,824

 

Cement (1)

 

63,455

 

 

61,437

 

 

266,235

 

 

258,876

 

Products

 

251,388

 

 

216,063

 

 

988,557

 

 

967,459

 

Total Materials and Products

 

430,463

 

 

370,563

 

 

1,724,462

 

 

1,600,159

 

Services

 

75,796

 

 

74,527

 

 

306,185

 

 

309,099

 

Net Revenue

 

$

506,259

 

 

$

445,090

 

 

$

2,030,647

 

 

$

1,909,258

 

 

 

 

 

 

 

 

 

 

Line of Business - Net Cost of Revenue:

 

 

 

 

 

 

 

 

Materials

 

 

 

 

 

 

 

 

Aggregates

 

$

44,026

 

 

$

42,091

 

 

$

186,724

 

 

$

151,838

 

Cement

 

31,726

 

 

30,156

 

 

149,149

 

 

134,597

 

Products

 

191,247

 

 

169,457

 

 

770,533

 

 

763,319

 

Total Materials and Products

 

266,999

 

 

241,704

 

 

1,106,406

 

 

1,049,754

 

Services

 

53,588

 

 

57,539

 

 

228,433

 

 

234,281

 

Net Cost of Revenue

 

$

320,587

 

 

$

299,243

 

 

$

1,334,839

 

 

$

1,284,035

 

 

 

 

 

 

 

 

 

 

Line of Business - Adjusted Cash Gross Profit (2):

 

 

 

 

 

 

 

 

Materials

 

 

 

 

 

 

 

 

Aggregates

 

$

71,594

 

 

$

50,972

 

 

$

282,946

 

 

$

221,986

 

Cement (3)

 

31,729

 

 

31,281

 

 

117,086

 

 

124,279

 

Products

 

60,141

 

 

46,606

 

 

218,024

 

 

204,140

 

Total Materials and Products

 

163,464

 

 

128,859

 

 

618,056

 

 

550,405

 

Services

 

22,208

 

 

16,988

 

 

77,752

 

 

74,818

 

Adjusted Cash Gross Profit

 

$

185,672

 

 

$

145,847

 

 

$

695,808

 

 

$

625,223

 

 

 

 

 

 

 

 

 

 

Adjusted Cash Gross Profit Margin (2)

 

 

 

 

 

 

 

 

Materials

 

 

 

 

 

 

 

 

Aggregates

 

61.9

%

 

54.8

%

 

60.2

%

 

59.4

%

Cement (3)

 

45.4

%

 

46.4

%

 

40.3

%

 

44.3

%

Products

 

23.9

%

 

21.6

%

 

22.1

%

 

21.1

%

Services

 

29.3

%

 

22.8

%

 

25.4

%

 

24.2

%

Total Adjusted Cash Gross Profit Margin

 

36.7

%

 

32.8

%

 

34.3

%

 

32.7

%

________________________________________________________

(1)

 

 

Net revenue for the cement line of business excludes revenue associated with hazardous and non-hazardous waste, which is processed into fuel and used in the cement plants and is included in services net revenue. Additionally, net revenue from cement swaps and other cement-related products are included in products net revenue.

(2)

 

Adjusted cash gross profit is calculated as net revenue by line of business less net cost of revenue by line of business. Adjusted cash gross profit margin is defined as adjusted cash gross profit divided by net revenue.

(3)

 

The cement adjusted cash gross profit includes the earnings from the waste processing operations, cement swaps and other products. Cement line of business adjusted cash gross profit margin is defined as cement adjusted cash gross profit divided by cement segment net revenue.

 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Volume and Price Statistics

(Units in thousands)

 

 

 

Three months ended

 

Year ended

Total Volume

 

December 28,
2019

 

December 29,
2018

 

December 28,
2019

 

December 29,
2018

Aggregates (tons)

 

13,325

 

 

11,543

 

 

53,954

 

 

47,624

 

Cement (tons)

 

574

 

 

559

 

 

2,395

 

 

2,329

 

Ready-mix concrete (cubic yards)

 

1,431

 

 

1,269

 

 

5,466

 

 

5,433

 

Asphalt (tons)

 

1,288

 

 

1,231

 

 

5,568

 

 

5,404

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year ended

Pricing

 

December 28,
2019

 

December 29,
2018

 

December 28,
2019

 

December 29,
2018

Aggregates (per ton)

 

$

10.95

 

 

$

10.50

 

 

$

10.99

 

 

$

10.27

 

Cement (per ton)

 

115.27

 

 

112.40

 

 

115.03

 

 

113.14

 

Ready-mix concrete (per cubic yards)

 

114.21

 

 

107.34

 

 

111.27

 

 

107.61

 

Asphalt (per ton)

 

58.73

 

 

56.32

 

 

58.93

 

 

55.57

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year ended

 

 

Percentage Change in

 

Percentage Change in

Year over Year Comparison

 

Volume

 

Pricing

 

Volume

 

Pricing

Aggregates (per ton)

 

15.4

%

 

4.3

%

 

13.3

%

 

7.0

%

Cement (per ton)

 

2.7

%

 

2.6

%

 

2.8

%

 

1.7

%

Ready-mix concrete (per cubic yards)

 

12.8

%

 

6.4

%

 

0.6

%

 

3.4

%

Asphalt (per ton)

 

4.6

%

 

4.3

%

 

3.0

%

 

6.0

%

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year ended

 

 

Percentage Change in

 

Percentage Change in

Year over Year Comparison (Excluding acquisitions)

 

Volume

 

Pricing

 

Volume

 

Pricing

Aggregates (per ton)

 

15.4

%

 

4.3

%

 

9.5

%

 

6.5

%

Cement (per ton)

 

2.7

%

 

2.6

%

 

2.8

%

 

1.7

%

Ready-mix concrete (per cubic yards)

 

12.6

%

 

6.5

%

 

0.1

%

 

3.3

%

Asphalt (per ton)

 

4.6

%

 

4.3

%

 

2.6

%

 

6.2

%

 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Reconciliations of Gross Revenue to Net Revenue by Line of Business

($ and Units in thousands, except pricing information)

 

 

 

Three months ended December 28, 2019

 

 

 

 

 

 

Gross Revenue

 

Intercompany

 

Net

 

 

Volumes

 

Pricing

 

by Product

 

Elimination/Delivery

 

Revenue

Aggregates

 

13,325

 

 

$

10.95

 

 

$

145,868

 

 

$

(30,248

)

 

$

115,620

 

Cement

 

574

 

 

115.27

 

 

66,196

 

 

(2,741

)

 

63,455

 

Materials

 

 

 

 

 

$

212,064

 

 

$

(32,989

)

 

$

179,075

 

Ready-mix concrete

 

1,431

 

 

114.21

 

 

163,466

 

 

(102

)

 

163,364

 

Asphalt

 

1,288

 

 

58.73

 

 

75,654

 

 

(68

)

 

75,586

 

Other Products

 

 

 

 

 

91,295

 

 

(78,857

)

 

12,438

 

Products

 

 

 

 

 

$

330,415

 

 

$

(79,027

)

 

$

251,388

 

 

 

Year ended December 28, 2019

 

 

 

 

 

 

Gross Revenue

 

Intercompany

 

Net

 

 

Volumes

 

Pricing

 

by Product

 

Elimination/Delivery

 

Revenue

Aggregates

 

53,954

 

 

$

10.99

 

 

$

593,027

 

 

$

(123,357

)

 

$

469,670

 

Cement

 

2,395

 

 

115.03

 

 

275,530

 

 

(9,295

)

 

266,235

 

Materials

 

 

 

 

 

$

868,557

 

 

$

(132,652

)

 

$

735,905

 

Ready-mix concrete

 

5,466

 

 

111.27

 

 

608,168

 

 

(546

)

 

607,622

 

Asphalt

 

5,568

 

 

58.93

 

 

328,165

 

 

(213

)

 

327,952

 

Other Products

 

 

 

 

 

377,900

 

 

(324,917

)

 

52,983

 

Products

 

 

 

 

 

$

1,314,233

 

 

$

(325,676

)

 

$

988,557

 

 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Unaudited Reconciliations of Non-GAAP Financial Measures
($ in thousands, except share and per share amounts)

The tables below reconcile our net income (loss) to Adjusted EBITDA by segment for the three months and years ended December 28, 2019 and December 29, 2018.

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

Three months ended December 28, 2019

by Segment

 

West

 

East

 

Cement

 

Corporate

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

30,735

 

 

$

32,859

 

 

$

23,828

 

 

$

(51,025

)

 

$

36,397

 

Interest expense (income)

 

(171

)

 

(463

)

 

(3,094

)

 

31,814

 

 

28,086

 

Income tax expense

 

440

 

 

(411

)

 

 

 

(17,200

)

 

(17,171

)

Depreciation, depletion and amortization

 

22,986

 

 

21,411

 

 

7,061

 

 

1,011

 

 

52,469

 

EBITDA

 

$

53,990

 

 

$

53,396

 

 

$

27,795

 

 

$

(35,400

)

 

$

99,781

 

Accretion

 

114

 

 

273

 

 

106

 

 

 

 

493

 

Tax receivable agreement expense

 

 

 

 

 

 

 

16,237

 

 

16,237

 

Transaction costs

 

84

 

 

 

 

 

 

689

 

 

773

 

Non-cash compensation

 

 

 

 

 

 

 

4,979

 

 

4,979

 

Other

 

(278

)

 

(523

)

 

 

 

(371

)

 

(1,172

)

Adjusted EBITDA (1)

 

$

53,910

 

 

$

53,146

 

 

$

27,901

 

 

$

(13,866

)

 

$

121,091

 

Adjusted EBITDA Margin (1)

 

21.6

%

 

28.5

%

 

39.9

%

 

 

 

23.9

%

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

Three months ended December 29, 2018

by Segment

 

West

 

East

 

Cement

 

Corporate

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

11,738

 

 

$

16,451

 

 

$

21,461

 

 

$

(68,277

)

 

$

(18,627

)

Interest expense (income)

 

950

 

 

1,094

 

 

(2,021

)

 

29,909

 

 

29,932

 

Income tax (benefit) expense

 

(81

)

 

27

 

 

 

 

43,552

 

 

43,498

 

Depreciation, depletion and amortization

 

23,627

 

 

20,191

 

 

9,345

 

 

703

 

 

53,866

 

EBITDA

 

$

36,234

 

 

$

37,763

 

 

$

28,785

 

 

$

5,887

 

 

$

108,669

 

Accretion

 

138

 

 

260

 

 

(17

)

 

 

 

381

 

Tax receivable agreement benefit

 

 

 

 

 

 

 

(22,684

)

 

(22,684

)

Transaction costs

 

1

 

 

 

 

 

 

420

 

 

421

 

Non-cash compensation

 

 

 

 

 

 

 

5,545

 

 

5,545

 

Other

 

1,310

 

 

(488

)

 

 

 

247

 

 

1,069

 

Adjusted EBITDA (1)

 

$

37,683

 

 

$

37,535

 

 

$

28,768

 

 

$

(10,585

)

 

$

93,401

 

Adjusted EBITDA Margin (1)

 

17.2

%

 

23.7

%

 

42.7

%

 

 

 

21.0

%

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

Year ended December 28, 2019

by Segment

 

West

 

East

 

Cement

 

Corporate

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

108,751

 

 

$

106,307

 

 

$

75,480

 

 

$

(229,415

)

 

$

61,123

 

Interest expense (income)

 

1,734

 

 

1,774

 

 

(10,489

)

 

123,490

 

 

116,509

 

Income tax expense (benefit)

 

1,918

 

 

(267

)

 

 

 

15,450

 

 

17,101

 

Depreciation, depletion and amortization

 

92,737

 

 

80,262

 

 

37,891

 

 

3,996

 

 

214,886

 

EBITDA

 

$

205,140

 

 

$

188,076

 

 

$

102,882

 

 

$

(86,479

)

 

$

409,619

 

Accretion

 

519

 

 

1,141

 

 

556

 

 

 

 

2,216

 

Loss on debt financings

 

 

 

 

 

 

 

14,565

 

 

14,565

 

Tax receivable agreement expense

 

 

 

 

 

 

 

16,237

 

 

16,237

 

Transaction costs

 

96

 

 

 

 

 

 

2,126

 

 

2,222

 

Non-cash compensation

 

 

 

 

 

 

 

20,403

 

 

20,403

 

Other (2)

 

(791

)

 

(1,592

)

 

 

 

(1,417

)

 

(3,800

)

Adjusted EBITDA

 

$

204,964

 

 

$

187,625

 

 

$

103,438

 

 

$

(34,565

)

 

$

461,462

 

Adjusted EBITDA Margin (1)

 

20.0

%

 

26.2

%

 

35.6

%

 

 

 

22.7

%

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

Year ended December 29, 2018

by Segment

 

West

 

East

 

Cement

 

Corporate

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

109,363

 

 

$

58,579

 

 

$

83,148

 

 

$

(214,760

)

 

$

36,330

 

Interest expense (income)

 

5,064

 

 

3,491

 

 

(6,815

)

 

114,808

 

 

116,548

 

Income tax expense

 

535

 

 

32

 

 

 

 

59,180

 

 

59,747

 

Depreciation, depletion and amortization

 

91,224

 

 

74,463

 

 

34,996

 

 

2,622

 

 

203,305

 

EBITDA

 

$

206,186

 

 

$

136,565

 

 

$

111,329

 

 

$

(38,150

)

 

$

415,930

 

Accretion

 

570

 

 

970

 

 

65

 

 

 

 

1,605

 

Loss on debt financings

 

 

 

 

 

 

 

149

 

 

149

 

Tax receivable agreement benefit

 

 

 

 

 

 

 

(22,684

)

 

(22,684

)

Gain on sale of business

 

(12,108

)

 

 

 

 

 

 

 

(12,108

)

Transaction costs

 

(3

)

 

 

 

 

 

4,241

 

 

4,238

 

Non-cash compensation

 

 

 

 

 

 

 

25,378

 

 

25,378

 

Other (2)

 

(5,646

)

 

497

 

 

 

 

(1,098

)

 

(6,247

)

Adjusted EBITDA

 

$

188,999

 

 

$

138,032

 

 

$

111,394

 

 

$

(32,164

)

 

$

406,261

 

Adjusted EBITDA Margin (1)

 

18.7

%

 

22.4

%

 

39.7

%

 

 

 

21.3

%

________________________________________________________

(1)

Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue.

(2)

In the year ended December 28, 2019, we negotiated a $2.0 million reduction in the amount of a contingent liability from one of our acquisitions. In the year ended December 29, 2018, we negotiated a $6.9 million reduction in the amount of a contingent liability from one of our acquisitions. As we had passed the period to revise the opening balance sheet for this acquisition, the adjustment was recorded in the respective period as other income.

 

The table below reconciles our net income (loss) per share attributable to Summit Materials, Inc. to adjusted diluted net income (loss) per share for the three months and years ended December 28, 2019 and December 29, 2018. The per share amount of the net income (loss) attributable to Summit Materials, Inc. presented in the table is calculated using the total equity interests for the purpose of reconciling to adjusted diluted net income (loss) per share.

 

 

Three months ended

 

Year ended

 

 

December 28, 2019

 

December 29, 2018

 

December 28, 2019

 

December 29, 2018

Reconciliation of Net Income (Loss) Per Share to Adjusted Diluted EPS

 

Net Income

 

Per Equity
Unit

 

Net Loss

 

Per Equity
Unit

 

Net Income

 

Per Equity
Unit

 

Net Income

 

Per Equity
Unit

Net income (loss) attributable to Summit Materials, Inc.

 

$

35,671

 

 

$

0.31

 

 

$

(19,163

)

 

$

(0.17

)

 

$

59,066

 

 

$

0.51

 

 

$

33,906

 

 

$

0.30

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interest

 

726

 

 

0.01

 

 

536

 

 

0.01

 

 

2,057

 

 

0.02

 

 

2,424

 

 

0.02

 

Adjustment to acquisition deferred liability

 

 

 

 

 

 

 

 

 

(2,000

)

 

(0.02

)

 

(6,947

)

 

(0.06

)

Gain on sale of business

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,108

)

 

(0.11

)

Loss on debt financings

 

 

 

 

 

 

 

 

 

14,565

 

 

0.13

 

 

149

 

 

 

Adjusted diluted net (loss) income before tax related adjustments

 

36,397

 

 

0.32

 

 

(18,627

)

 

(0.16

)

 

73,688

 

 

0.64

 

 

17,424

 

 

0.15

 

Tax receivable agreement (benefit) expense

 

16,237

 

 

0.14

 

 

(22,684

)

 

(0.20

)

 

16,237

 

 

0.14

 

 

(22,684

)

 

(0.20

)

Unrecognized tax benefits

 

18,885

 

 

0.16

 

 

22,663

 

 

0.20

 

 

18,885

 

 

0.16

 

 

22,663

 

 

0.20

 

Adjusted diluted net income (loss)

 

$

71,519

 

 

$

0.62

 

 

$

(18,648

)

 

$

(0.16

)

 

$

108,810

 

 

$

0.94

 

 

$

17,403

 

 

$

0.15

 

Weighted-average shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Class A common stock

 

112,755,444

 

 

 

 

111,656,069

 

 

 

 

112,204,067

 

 

 

 

111,380,175

 

 

 

LP Units outstanding

 

3,278,133

 

 

 

 

3,435,518

 

 

 

 

3,372,707

 

 

 

 

3,512,669

 

 

 

Total equity units

 

116,033,577

 

 

 

 

115,091,587

 

 

 

 

115,576,774

 

 

 

 

114,892,844

 

 

 

 

The following table reconciles operating income to Adjusted Cash Gross Profit and Adjusted Cash Gross Profit Margin for the three months and years ended December 28, 2019 and December 29, 2018.

 

 

Three months ended

 

Year ended

 

 

December 28,

 

December 29,

 

December 28,

 

December 29,

Reconciliation of Operating Income to Adjusted Cash Gross Profit

 

2019

 

2018

 

2019

 

2018

($ in thousands)

 

 

 

 

 

 

 

 

Operating income

 

$

59,926

 

 

$

28,545

 

 

$

213,558

 

 

$

162,466

 

General and administrative expenses

 

72,011

 

 

62,634

 

 

262,926

 

 

253,609

 

Depreciation, depletion, amortization and accretion

 

52,962

 

 

54,247

 

 

217,102

 

 

204,910

 

Transaction costs

 

773

 

 

421

 

 

2,222

 

 

4,238

 

Adjusted Cash Gross Profit (exclusive of items shown separately)

 

$

185,672

 

 

$

145,847

 

 

$

695,808

 

 

$

625,223

 

Adjusted Cash Gross Profit Margin (exclusive of items shown separately) (1)

 

36.7

%

 

32.8

%

 

34.3

%

 

32.7

%

________________________________________________________

(1)

Adjusted Cash Gross Profit Margin is defined as Adjusted Cash Gross Profit as a percentage of net revenue.

The following table reconciles net cash provided by operating activities to free cash flow for the three months and years ended December 28, 2019 and December 29, 2018.

 

 

Three months ended

 

Year ended

 

 

December 28,

 

December 29,

 

December 28,

 

December 29,

($ in thousands)

 

2019

 

2018

 

2019

 

2018

Net income

 

$

36,397

 

 

$

(18,627

)

 

$

61,123

 

 

$

36,330

 

Non-cash items

 

41,330

 

 

104,714

 

 

249,698

 

 

263,565

 

Net income adjusted for non-cash items

 

77,727

 

 

86,087

 

 

310,821

 

 

299,895

 

Change in working capital accounts

 

95,614

 

 

52,724

 

 

26,363

 

 

(90,527

)

Net cash provided by operating activities

 

173,341

 

 

138,811

 

 

337,184

 

 

209,368

 

Capital expenditures, net of asset sales

 

(29,595

)

 

(33,724

)

 

(156,322

)

 

(199,050

)

Free cash flow

 

$

143,746

 

 

$

105,087

 

 

$

180,862

 

 

$

10,318

 

 

Karli Anderson
Vice President, Investor Relations
karli.anderson@summit-materials.com
303-515-5152

Source: Summit Materials, Inc.

NYSE: SUM
Stock Quote ($)
14.84
Market Cap ($M)
1,693.39
Change
$0.86
6.15%
As of April 8, 2020 Close- Minimum 20 minute delay by Sunguard.

Contact Information

Investor Relations Karli Anderson
Vice President of Investor Relations
Karli.Anderson@summit-materials.com