Strong pricing and demand conditions
continue
Results in line with expectations
Net Leverage Ratio remains below Elevate Summit
target
Summit Materials, Inc. (NYSE: SUM) (“Summit,” “Summit
Materials,” "Summit Inc." or the “Company”), a leading vertically
integrated construction materials company, today announced results
for the first quarter ended April 2, 2022 (“first quarter”). All
comparisons are versus the quarter ended April 3, 2021 unless noted
otherwise.
Three months ended
($ in thousands)
April 2, 2022
April 3, 2021
% Chg vs. PY
Net revenue
$
392,495
$
398,481
(1.5
)%
Operating loss
(34,295
)
(25,059
)
(36.9
)%
Net loss
(34,800
)
(23,245
)
(49.7
)%
Basic EPS
$
(0.29
)
$
(0.19
)
(52.6
)%
Adjusted Cash Gross Profit
67,567
81,150
(16.7
)%
Adjusted EBITDA
23,263
41,734
(44.3
)%
"Our first quarter 2022 results demonstrate that we have
sustained the momentum we built in 2021 and are on solid footing as
we head into the prime construction season," said Summit Materials
CEO Anne Noonan. "Our unwavering focus is squarely on our strategic
execution and controlling what we can control to make further
progress towards our Horizon One financial objectives of driving
margin expansion, controlling leverage, and increasing ROIC. Price
increases were communicated across all markets and lines of
business with effective dates varying from January 1 to April 1,
2022, depending upon seasonality. We expect those increases will be
fully reflected in the second quarter of 2022. We would
characterize current market conditions as favorable towards the
potential for additional price increases this year in all lines of
business. We are diligently moving forward with portfolio
optimization moves, implementing our Value Pricing principles, and
pulling all available self-help margin levers to improve
performance, offset inflation, and upgrade our quality of earnings.
We are updating our 2022 Adjusted EBITDA guidance to reflect the
impact of a divestiture and we remain confident that Summit
Materials is on track for another year of solid growth."
Brian Harris, CFO of Summit Materials, added, "Sound strategic
execution has put Summit in a position to pursue a broader range of
high return capital allocation priorities. As part of our Elevate
Summit strategy, we have closed nine strategic divestitures with
line of sight to completing the ten to twelve as part of our
Horizon One goal. We believe these divestitures advance our market
leadership and asset light priorities and together with continued
organic growth, provides Summit the financial flexibility to invest
in greenfields, pursue attractive M&A opportunities, and
opportunistically buy back our shares when they present compelling
value."
In the three months ended April 2, 2022, Summit Materials sold
one business in the East segment, resulting in cash proceeds of
$47.8 million and a total gain on disposition of $14.2 million. To
date, as part of its Elevate Summit Strategy, the Company has
received $176.1 million in proceeds from a total of nine
divestitures. As of April 2, 2022, Summit reclassified an operating
unit in its East segment as held for sale, and expects to close the
transaction in the second quarter of 2022.
In March 2022, the Company repurchased 1.5 million shares of
Class A common stock for $47.5 million. As of April 2, 2022,
approximately $202.5 million remained available for share
repurchases under the share repurchase program.
2022 Guidance
For the full year 2022, Summit is updating its Adjusted EBITDA
guidance to approximately $529 million to $557 million, from $535
million to $565 million previously, and continues to expect 2022
capital expenditures of approximately $270 million to $290 million,
including greenfield projects.
First Quarter 2022 | Total Company
Results
Net Revenue decreased $6.0 million, or 1.5% in the first
quarter to $392.5 million, primarily resulting from divestitures
completed in 2021, partially offset by increases in average sales
prices.
Operating loss increased $9.2 million, or 36.9% in the
first quarter to $34.3 million, as timing of price increases
temporarily lagged increased costs from inflation, timing of repair
and maintenance expenditures and certain stripping activities,
unplanned downtime at a few of our locations, mitigated by a $5.1
million decrease in depreciation, depletion, amortization and
accretion expenses. Summit's operating margin percentage for the
three months ended April 2, 2022 decreased to (8.7)% from (6.3)%,
from the comparable period a year ago.
Net loss attributable to Summit Inc. increased to $34.3
million, or $(0.29) per basic share, compared to $22.5 million, or
$(0.19) per basic share in the comparable prior year period. Summit
reported adjusted diluted net loss of $49.0 million, or $(0.41) per
adjusted diluted share as compared to $38.9 million, or $(0.33) per
adjusted diluted share in the prior year period.
Adjusted EBITDA decreased $18.5 million, or 44.3% to
$23.3 million.
First Quarter 2022 | Results by Line of
Business
Aggregates Business: Aggregates net revenues increased by
$6.0 million to $123.4 million in the first quarter. Aggregates
adjusted cash gross profit margin decreased to 36.3% in the first
quarter as compared to 41.8% in the first quarter 2021. Aggregates
sales volume decreased 0.8% in the first quarter as solid organic
volume growth in several markets was more than offset by volume
decreases in certain markets due to divestitures. Average selling
prices for aggregates increased 4.8% in the first quarter with
growth across both reporting segments.
Cement Business: Cement segment net revenues increased
13.7% to $46.2 million in the first quarter. Cement segment
adjusted cash gross profit margin decreased to (2.0)% in the first
quarter, compared to 1.9% in the prior year period, reflecting the
impact of an annual maintenance shutdown and slightly slower than
expected resumption of operations. Sales volume of cement increased
0.3% and average selling prices increased 10.1% in the first
quarter.
Products Business: Products net revenues were $189.7
million in the first quarter, compared to $198.7 million in the
prior year period. Products adjusted cash gross profit margin
decreased to 11.6% in the first quarter, versus 13.6% in the prior
year period. Average sales price for ready-mix concrete increased
7.3% driven by pricing growth in all markets, with strong,
double-digit growth in the Intermountain West. Sales volumes of
ready-mix concrete decreased 7.2% due to lower volumes in Kansas
and north Texas due to weather. Average selling prices for asphalt
increased 10.2%, driven by strong pricing gains in Virginia and the
Intermountain West market. Asphalt volume decreased 45.1% due
primarily to the impact of divestitures.
First Quarter 2022 | Results By
Reporting Segment
West Segment: The West Segment operating income decreased
46.9% to $8.0 million and Adjusted EBITDA decreased 19.6% to $32.7
million in the first quarter primarily due to higher sub contractor
costs, as well as increased repair and maintenance and fuel costs
that were realized ahead of price increases broadly going into
effect. Aggregates revenue in the first quarter increased 7.8% on
3.7% pricing growth and 3.9% volume growth, which was driven by
strong demand in Texas and the Intermountain West geography, as
well as increased projects in British Columbia. Ready-mix concrete
revenue in the first quarter increased 6.0% as 7.0% pricing growth
was partially offset by lower volumes. Asphalt revenue decreased
50.9% in the first quarter as volumes decreased 50.7%, due to a
divestiture made in the second quarter of 2021. Asphalt sales
prices increased 10.3% in the period.
East Segment: The East Segment operating loss increased
3.4% to $10.7 million and Adjusted EBITDA decreased 30.7% to $8.1
million in the first quarter. Lower operating income and Adjusted
EBITDA reflects increased cost of revenue that exceeded pricing
growth. Aggregates revenue was flat to prior year. Aggregates
volumes decreased 6.5% primarily due to divestitures and partially
offset by growth in Georgia. Average selling prices for aggregates
increased 7.0%. Ready-mix concrete revenue decreased 26.6% as
volumes decreased by 32.5%, partially offset by average selling
price growth of 8.9%. Asphalt revenue increased 10.3% as lower
volumes were more than offset by pricing growth. Asphalt average
selling prices increased 14.5% due to product mix and asphalt mix
design.
Cement Segment: The Cement Segment operating loss
increased 34.4% to $13.5 million in the first quarter. Adjusted
EBITDA decreased $8.3 million as our repair and maintenance costs
associated our annual shutdown were elevated relative to the
comparable prior period. In first quarter, the Cement Segment
reported volume growth of 0.3% and average selling price growth of
10.1%.
Liquidity and Capital
Resources
As of April 2, 2022, the Company had $287.4 million in cash and
$1.6 billion in debt outstanding. The Company's $345 million
revolving credit facility has $324.6 million available after
outstanding letters of credit. For the quarter ended April 2, 2022,
cash flow used in operations was $16.7 million and cash paid for
capital expenditures was $57.8 million.
In March 2022, the Company repurchased 1.5 million shares of
Class A common stock for $47.5 million. As of April 2, 2022,
approximately $202.5 million remained available for share
repurchases under the share repurchase program.
Webcast and Conference Call
Information
Summit Materials will conduct a conference call on Thursday, May
5, 2022, at 11:00 a.m. eastern time (9:00 a.m. mountain time) to
review the Company’s first quarter 2022 financial results, discuss
recent events and conduct a question-and-answer session.
A webcast of the first quarter results conference call and
accompanying presentation materials will be available in the
Investors section of Summit’s website at
investors.summit-materials.com or at the following link:
https://events.q4inc.com/attendee/420213312. 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 for first quarter 2022
financial results:
Domestic Live:
1-888-330-3416
International Live:
1-646-960-0820
Conference ID:
1542153
Password:
Summit
To listen to a replay of the teleconference, which will be
available through May 12, 2022:
Domestic Replay:
1-800-770-2030
International Replay:
1-647-362-9199
Conference ID:
1542153
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 Net Income, 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 Net Income, 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 Net Income,
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 January 1, 2022, as filed with the SEC,
and any factors discussed in the section entitled “Risk Factors” in
any of our subsequently filed SEC filings.
- the impact of the COVID-19 pandemic, and responses to it,
including vaccine mandates, or any similar crisis, on our
business;
- 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;
- our reliance on private investment in infrastructure, which may
be adversely affected by periods of economic stagnation and
recession;
- environmental, health, safety and climate change laws or
governmental requirements or policies concerning zoning and land
use;
- costs associated with pending and future litigation;
- rising prices for, or more limited availability of,
commodities, labor and other production and delivery inputs as a
result of inflation, supply chain challenges or otherwise;
- 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;
- unexpected factors affecting self-insurance claims and reserve
estimates;
- 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
Unaudited Consolidated Statements
of Operations
($ in thousands, except share and
per share amounts)
Three months ended
April 2,
April 3,
2022
2021
Revenue:
Product
$
355,669
$
354,234
Service
36,826
44,247
Net revenue
392,495
398,481
Delivery and subcontract revenue
28,452
29,363
Total revenue
420,947
427,844
Cost of revenue (excluding items shown
separately below):
Product
290,345
277,134
Service
34,583
40,197
Net cost of revenue
324,928
317,331
Delivery and subcontract cost
28,452
29,363
Total cost of revenue
353,380
346,694
General and administrative expenses
51,924
51,642
Depreciation, depletion, amortization and
accretion
51,193
56,336
Gain on sale of property, plant and
equipment
(1,255
)
(1,769
)
Operating loss
(34,295
)
(25,059
)
Interest expense
20,149
24,186
Gain on sale of businesses
(14,205
)
(15,668
)
Other income, net
(696
)
(4,889
)
Loss from operations before taxes
(39,543
)
(28,688
)
Income tax benefit
(4,743
)
(5,443
)
Net loss
(34,800
)
(23,245
)
Net loss attributable to Summit Holdings
(1)
(508
)
(728
)
Net loss attributable to Summit Inc.
$
(34,292
)
$
(22,517
)
Loss per share of Class A common
stock:
Basic
$
(0.29
)
$
(0.19
)
Diluted
$
(0.29
)
$
(0.20
)
Weighted average shares of Class A common
stock:
Basic
118,937,466
115,664,725
Diluted
118,937,466
115,411,204
_______________
(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)
April 2,
January 1,
2022
2022
(unaudited)
(audited)
Assets
Current assets:
Cash and cash equivalents
$
287,392
$
380,961
Accounts receivable, net
239,839
287,226
Costs and estimated earnings in excess of
billings
12,723
7,600
Inventories
187,009
180,760
Other current assets
14,305
11,827
Current assets held for sale
36,572
1,236
Total current assets
777,840
869,610
Property, plant and equipment, less
accumulated depreciation, depletion and amortization (April 2, 2022
- $1,290,560 and January 1, 2022 - $1,266,513)
1,766,594
1,842,908
Goodwill
1,146,276
1,163,750
Intangible assets, less accumulated
amortization (April 2, 2022 - $16,218 and January 1, 2022 -
$15,269)
67,015
69,396
Deferred tax assets, less valuation
allowance (April 2, 2022 - $1,675 and January 1, 2022 - $1,675)
211,372
204,566
Operating lease right-of-use assets
28,766
30,150
Other assets
43,200
58,745
Noncurrent assets held for sale
$
102,182
$
—
Total assets
$
4,143,245
$
4,239,125
Liabilities and Stockholders’
Equity
Current liabilities:
Current portion of debt
$
6,354
$
6,354
Current portion of acquisition-related
liabilities
13,078
13,110
Accounts payable
146,292
128,232
Accrued expenses
113,569
147,476
Current operating lease liabilities
5,934
6,497
Billings in excess of costs and estimated
earnings
6,734
7,401
Current liabilities held for sale
13,110
—
Total current liabilities
305,071
309,070
Long-term debt
1,590,050
1,591,019
Acquisition-related liabilities
22,928
33,369
Tax receivable agreement liability
326,548
326,548
Noncurrent operating lease liabilities
28,017
28,880
Other noncurrent liabilities
121,103
127,027
Noncurrent liabilities held for sale
3,031
—
Total liabilities
2,396,748
2,415,913
Stockholders’ equity:
Class A common stock, par value $0.01 per
share; 1,000,000,000 shares authorized, 118,041,848 and 118,705,108
shares issued and outstanding as of April 2, 2022 and January 1,
2022, respectively
1,181
1,188
Class B common stock, par value $0.01 per
share; 250,000,000 shares authorized, 99 shares issued and
outstanding as of April 2, 2022 and January 1, 2022
—
—
Additional paid-in capital
1,330,548
1,326,340
Accumulated earnings
397,170
478,956
Accumulated other comprehensive income
8,389
7,083
Stockholders’ equity
1,737,288
1,813,567
Noncontrolling interest in Summit
Holdings
9,209
9,645
Total stockholders’ equity
1,746,497
1,823,212
Total liabilities and stockholders’
equity
$
4,143,245
$
4,239,125
SUMMIT MATERIALS, INC. AND
SUBSIDIARIES
Unaudited Consolidated Statements
of Cash Flows
($ in thousands)
Three months ended
April 2,
April 3,
2022
2021
Cash flows from operating activities:
Net loss
$
(34,800
)
$
(23,245
)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, amortization and
accretion
54,838
59,107
Share-based compensation expense
5,422
5,363
Net gain on asset and business
disposals
(15,660
)
(15,964
)
Change in deferred tax asset, net
(7,770
)
(10,145
)
Other
(221
)
483
Decrease (increase) in operating assets,
net of acquisitions and dispositions:
Accounts receivable, net
35,836
4,946
Inventories
(36,752
)
(15,412
)
Costs and estimated earnings in excess of
billings
(6,449
)
(8,442
)
Other current assets
(1,891
)
(9,209
)
Other assets
1,183
2,504
(Decrease) increase in operating
liabilities, net of acquisitions and dispositions:
Accounts payable
16,744
14,518
Accrued expenses
(25,946
)
(24,130
)
Billings in excess of costs and estimated
earnings
317
(2,578
)
Tax receivable agreement liability
—
4,152
Other liabilities
(1,564
)
(3,266
)
Net cash used in operating activities
(16,713
)
(21,318
)
Cash flows from investing activities:
Purchases of property, plant and
equipment
(57,774
)
(69,757
)
Proceeds from the sale of property, plant
and equipment
1,439
2,663
Proceeds from sale of businesses
47,821
33,077
Other
(857
)
(483
)
Net cash used in investing activities
(9,371
)
(34,500
)
Cash flows from financing activities:
Payments on debt
(7,603
)
(10,170
)
Payments on acquisition-related
liabilities
(11,397
)
(8,096
)
Repurchases of common stock
(47,509
)
—
Proceeds from stock option exercises
27
15,920
Other
(1,180
)
(416
)
Net cash used in financing activities
(67,662
)
(2,762
)
Impact of foreign currency on cash
177
140
Net decrease in cash
(93,569
)
(58,440
)
Cash and cash equivalents—beginning of
period
380,961
418,181
Cash and cash equivalents—end of
period
$
287,392
$
359,741
SUMMIT MATERIALS, INC. AND
SUBSIDIARIES
Unaudited Revenue Data by Segment
and Line of Business
($ in thousands)
Three months ended
Twelve months ended
April 2,
April 3,
April 2,
April 3,
2022
2021
2022
2021
Segment Net Revenue:
West
$
236,002
$
234,744
$
1,170,724
$
1,198,173
East
110,268
123,068
752,196
719,290
Cement
46,225
40,669
303,790
273,366
Net Revenue
$
392,495
$
398,481
$
2,226,710
$
2,190,829
Line of Business - Net Revenue:
Materials
Aggregates
$
123,393
$
117,388
$
579,162
$
519,234
Cement (1)
42,554
38,139
286,496
262,905
Products
189,722
198,707
1,059,062
1,091,467
Total Materials and Products
355,669
354,234
1,924,720
1,873,606
Services
36,826
44,247
301,990
317,223
Net Revenue
$
392,495
$
398,481
$
2,226,710
$
2,190,829
Line of Business - Net Cost of
Revenue:
Materials
Aggregates
$
78,609
$
68,297
$
287,068
$
250,856
Cement
43,485
37,360
169,233
151,238
Products
167,653
171,620
868,165
879,444
Total Materials and Products
289,747
277,277
1,324,466
1,281,538
Services
35,181
40,054
242,568
256,171
Net Cost of Revenue
$
324,928
$
317,331
$
1,567,034
$
1,537,709
Line of Business - Adjusted Cash Gross
Profit (2):
Materials
Aggregates
$
44,784
$
49,091
$
292,094
$
268,378
Cement (3)
(931
)
779
117,263
111,667
Products
22,069
27,087
190,897
212,023
Total Materials and Products
65,922
76,957
600,254
592,068
Services
1,645
4,193
59,422
61,052
Adjusted Cash Gross Profit
$
67,567
$
81,150
$
659,676
$
653,120
Adjusted Cash Gross Profit Margin (2)
Materials
Aggregates
36.3
%
41.8
%
50.4
%
51.7
%
Cement (3)
(2.0
)%
1.9
%
38.6
%
40.8
%
Products
11.6
%
13.6
%
18.0
%
19.4
%
Services
4.5
%
9.5
%
19.7
%
19.2
%
Total Adjusted Cash Gross Profit
Margin
17.2
%
20.4
%
29.6
%
29.8
%
_______________
(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
Total Volume
April 2, 2022
April 3, 2021
Aggregates (tons)
13,402
13,509
Cement (tons)
341
340
Ready-mix concrete (cubic yards)
1,241
1,338
Asphalt (tons)
260
474
Three months ended
Pricing
April 2, 2022
April 3, 2021
Aggregates (per ton)
$
11.15
$
10.64
Cement (per ton)
128.42
116.69
Ready-mix concrete (per cubic yards)
127.00
118.31
Asphalt (per ton)
66.15
60.01
Three months ended
Percentage Change in
Year over Year Comparison
Volume
Pricing
Aggregates (per ton)
(0.8
)%
4.8
%
Cement (per ton)
0.3
%
10.1
%
Ready-mix concrete (per cubic yards)
(7.2
)%
7.3
%
Asphalt (per ton)
(45.1
)%
10.2
%
Three months ended
Percentage Change in
Year over Year Comparison (Excluding
acquisitions)
Volume
Pricing
Aggregates (per ton)
(1.5
)%
5.0
%
Cement (per ton)
0.3
%
10.1
%
Ready-mix concrete (per cubic yards)
(7.2
)%
7.3
%
Asphalt (per ton)
(45.1
)%
10.2
%
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 April 2,
2022
Gross Revenue
Intercompany
Net
Volumes
Pricing
by Product
Elimination/Delivery
Revenue
Aggregates
13,402
$
11.15
$
149,426
$
(26,033
)
$
123,393
Cement
341
128.42
43,806
(1,252
)
42,554
Materials
$
193,232
$
(27,285
)
$
165,947
Ready-mix concrete
1,241
127.00
157,602
(39
)
157,563
Asphalt
260
66.15
17,217
(80
)
17,137
Other Products
75,965
(60,943
)
15,022
Products
$
250,784
$
(61,062
)
$
189,722
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 loss to
Adjusted EBITDA by segment for the three months ended April 2, 2022
and April 3, 2021.
Reconciliation of Net Income (Loss) to
Adjusted EBITDA
Three months ended April 2,
2022
by Segment
West
East
Cement
Corporate
Consolidated
($ in thousands)
Net income (loss)
$
11,901
$
7,366
$
(8,431
)
$
(45,636
)
$
(34,800
)
Interest (income) expense
(3,970
)
(3,451
)
(4,962
)
32,532
20,149
Income tax expense (benefit)
176
(106
)
—
(4,813
)
(4,743
)
Depreciation, depletion and
amortization
24,348
17,884
7,498
749
50,479
EBITDA
$
32,455
$
21,693
$
(5,895
)
$
(17,168
)
$
31,085
Accretion
227
411
76
—
714
Gain on sale of businesses
—
(14,205
)
—
—
(14,205
)
Non-cash compensation
—
—
—
5,422
5,422
Other
10
237
—
—
247
Adjusted EBITDA
$
32,692
$
8,136
$
(5,819
)
$
(11,746
)
$
23,263
Adjusted EBITDA Margin (1)
13.9
%
7.4
%
(12.6
)%
5.9
%
Reconciliation of Net Income (Loss) to
Adjusted EBITDA
Three months ended April 3,
2021
by Segment
West
East
Cement
Corporate
Consolidated
($ in thousands)
Net income (loss)
$
17,436
$
6,969
$
(1,605
)
$
(46,045
)
$
(23,245
)
Interest (income) expense
(2,032
)
(1,720
)
(4,045
)
31,983
24,186
Income tax expense (benefit)
186
(66
)
—
(5,563
)
(5,443
)
Depreciation, depletion and
amortization
24,924
21,474
8,068
1,104
55,570
EBITDA
$
40,514
$
26,657
$
2,418
$
(18,521
)
$
51,068
Accretion
216
469
81
—
766
Gain on sale of business
—
(15,668
)
—
—
(15,668
)
Non-cash compensation
—
—
—
5,363
5,363
Other
(82
)
287
—
—
205
Adjusted EBITDA
$
40,648
$
11,745
$
2,499
$
(13,158
)
$
41,734
Adjusted EBITDA Margin (1)
17.3
%
9.5
%
6.1
%
10.5
%
_______________
(1) Adjusted EBITDA Margin is defined as
Adjusted EBITDA as a percentage of net revenue.
The table below reconciles our net loss
attributable to Summit Materials, Inc. to adjusted diluted net loss
per share for the three months ended April 2, 2022 and April 3,
2021. The per share amount of the net 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 loss per share.
Three months ended
April 2, 2022
April 3, 2021
Reconciliation of Net Loss Per Share to
Adjusted Diluted EPS
Net Loss
Per Equity
Unit
Net Loss
Per Equity
Unit
Net loss attributable to Summit Materials,
Inc.
$
(34,292
)
$
(0.29
)
$
(22,517
)
$
(0.19
)
Adjustments:
Net loss attributable to noncontrolling
interest
(508
)
—
(728
)
(0.01
)
Gain on sale of businesses
(14,205
)
(0.12
)
(15,668
)
(0.13
)
Adjusted diluted net loss
$
(49,005
)
$
(0.41
)
$
(38,913
)
$
(0.33
)
Weighted-average shares:
Basic Class A common stock
118,777,341
115,411,204
LP Units outstanding
1,314,006
2,613,210
Total equity units
120,091,347
118,024,414
The following table reconciles operating
loss to Adjusted Cash Gross Profit and Adjusted Cash Gross Profit
Margin for the three months ended April 2, 2022 and April 3,
2021.
Three months ended
April 2,
April 3,
Reconciliation of Operating Loss to
Adjusted Cash Gross Profit
2022
2021
($ in thousands)
Operating loss
$
(34,295
)
$
(25,059
)
General and administrative expenses
51,924
51,642
Depreciation, depletion, amortization and
accretion
51,193
56,336
Gain on sale of property, plant and
equipment
(1,255
)
(1,769
)
Adjusted Cash Gross Profit (exclusive of
items shown separately)
$
67,567
$
81,150
Adjusted Cash Gross Profit Margin
(exclusive of items shown separately) (1)
17.2
%
20.4
%
_______________
(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
used in operating activities to free cash flow for the three months
ended April 2, 2022 and April 3, 2021.
Three months ended
April 2,
April 3,
($ in thousands)
2022
2021
Net loss
$
(34,800
)
$
(23,245
)
Non-cash items
36,609
38,844
Net loss adjusted for non-cash items
1,809
15,599
Change in working capital accounts
(18,522
)
(36,917
)
Net cash used in operating activities
(16,713
)
(21,318
)
Capital expenditures, net of asset
sales
(56,335
)
(67,094
)
Free cash flow
$
(73,048
)
$
(88,412
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220504005771/en/
Andy Larkin VP, Investor Relations
andy.larkin@summit-materials.com 720-618-6013
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