Summit Materials (SUM) Misses Q1 EPS by 1c, Revenues Beat; Withdraws FY20 Adj. EBITDA Outlook

Summit Materials (NYSE: SUM) reported Q1 EPS of ($0.48), $0.01 worse than the analyst estimate of ($0.47). Revenue for the quarter came in at $342.4 million versus the consensus estimate of $326.24 million.

Tom Hill, CEO of Summit Materials, commented, "We experienced strong demand and favorable pricing conditions in our East and West regions throughout the first quarter, resulting in record Q1 net revenue. More importantly, we implemented safety and distancing protocols at all of our operations in early March in response to the COVID-19 outbreak and we are committed to the continuous improvement of those safety measures. Construction has been deemed essential in all of Summit\'s markets, and the health and safety of our workforce, customers and local communities is our highest priority."

Brian Harris, CFO of Summit Materials added, "While we’ve only seen a limited impact from COVID-19 to date, we have been proactively engaging in contingency planning. We are conducting regular reviews of our capital spending, cost structure, receivables, and working capital under various demand scenarios. Summit has over $500 million in available liquidity and is in a strong financial position."

Summit is withdrawing its previously announced 2020 Adjusted EBITDA guidance of $460 million to $500 million. Hill continued, "While demand for our products and services has not yet been materially impacted by COVID-19, the near term impact to construction activity is less clear. We believe that it is prudent to withdraw guidance at this time, pending better visibility into the extent of economic disruption related to COVID-19 and the ultimate resumption of normal business conditions."

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

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