Summit Materials (SUM) Tops Q1 EPS by 14c, Revenues Beat

Summit Materials (NYSE: SUM) reported Q1 EPS of ($0.33), $0.14 better than the analyst estimate of ($0.47). Revenue for the quarter came in at $398.5 million versus the consensus estimate of $355 million.

Anne Noonan, CEO of Summit Materials, commented, "After a strong finish to 2020, Summit has accelerated into 2021 with record first quarter Adjusted EBITDA. Migration activity continues to favor our rural and exurban markets and most of the state Departments of Transportation that we serve are on solid financial footing. We are in full implementation mode on our Elevate Summit strategy, and we are seeing early signs of success. In the first quarter we completed one strategic divestiture and made progress on others. We remain focused on sustainable growth with investments in greenfields and end markets that are underpinned by strong growth fundamentals."

Brian Harris, CFO of Summit Materials added, "Our Q1 2021 leverage ratio was steady from the prior quarter, which is the lowest first quarter leverage ratio in Summit's history, and a significant improvement from a year ago. Our leverage ratio typically increases in the first quarter, as Q1 typically has the lowest EBITDA contribution of the year, but that did not happen in Q1 2021 due to our excellent financial performance. Our Elevate Summit goal is less than 3x leverage, and we believe that is within our sights in 2021."

Financial Outlook

For the full year 2021, Summit has not made any changes to its outlook for Adjusted EBITDA of approximately $490 million to $520 million, but expects to revisit this forecast as the year progresses. The Company continues to expect 2021 capital expenditure guidance of approximately $200 million to $220 million including approximately $25 million to $35 million for greenfield projects.

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

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