Summit Materials (SUM) Misses Q2 EPS by 33c, Sales Miss

Summit Materials (NYSE: SUM) reported Q2 EPS of ($0.01), $0.33 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $329 million versus the consensus estimate of $371.64 million.

Tom Hill, the President and CEO of Summit, stated, “During the second quarter we produced significant growth in net revenues and margins across all of our lines of business. This strong improvement reflects the steady demand improvement in all of our regions, despite some weather-related challenges, mainly in Texas and Kansas, and our disciplined focus on price optimization across our vertically integrated lines of businesses. We achieved this while also expanding our Further Adjusted EBITDA margin by 300 basis points and generating incremental margins in excess of 50%. The success of our acquisition strategy was also evident in our results with more than half of our profit growth contributed by our accretive acquisitions, including the recent strategic bolt on addition of Lewis & Lewis, a vertically integrated aggregates-based business, in our West region.”

Mr. Hill continued, “We believe our sustained progress is a direct result of the steps we have taken to expand our business into attractive markets and establish leadership positions throughout our diversified footprint. Our completion of the Davenport Assets acquisition was an exciting milestone for our company and significantly advanced our position as a leading cement producer in the Midwest. We are now better positioned to continue enhancing our materials earnings exposure and overall profitability as we integrate these assets onto our platform. As we look to the back half of 2015, we plan to capitalize on the improving demand environment to improve our profitability while also remaining opportunistic with our capital to further expand our businesses in select target markets.”

For earnings history and earnings-related data on Summit Materials (SUM) click here.

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