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Form 8-K Summit Materials, Inc. For: May 10

May 10, 2021 4:21 PM EDT

Exhibit 99.1
 
Summit Materials, Inc. Reports First Quarter 2021 Results
- Record First Quarter Net Revenue of $398.5 million, an increase of 16.4%
-Net loss attributable to Summit Inc. of $22.5 million
-Record First Quarter Adjusted EBITDA of $41.7 million, an increase of 166.5%
-Aggregates volumes increased 20.7%
-Cement volumes increased 13.7%

DENVER, CO. - (May 10, 2021) - 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 2021.

For the three months ended April 3, 2021, the Company reported net loss attributable to Summit Inc. of $22.5 million, or $(0.19) per basic share, compared to net loss attributable to Summit Inc. of $45.0 million, or $(0.40) per basic share in the comparable prior year period. Summit reported adjusted diluted net loss of $38.9 million, or $(0.33) per adjusted diluted share as compared to adjusted diluted net loss of $56.3 million, or $(0.48) per adjusted diluted share in the prior year period.

Summit's net revenue increased $56.1 million, or 16.4% in the first quarter of 2021 to $398.5 million, compared to $342.4 million in the first quarter of 2020, on higher aggregates, ready-mix concrete, cement, asphalt and paving revenue relative to a year ago on strong demand in most markets.

The Company reported an operating loss of $25.1 million in the first quarter 2021, an improvement of 39.9%, compared to $41.7 million in the prior year period. Net revenue gains in all lines of business exceeded increases in costs of revenue and more than offset a $10.0 million increase in general and administrative expenses, which included $3.4 million in severance related costs and professional fees associated with optimizing organizational efficiencies. Summit's operating margin percentage for the three months ended April 3, 2021 increased to (6.3)% from (12.2)%, from the comparable period a year ago, due to the factors noted above.

Adjusted EBITDA increased in the first quarter to $41.7 million as compared to $15.7 million in the first quarter 2020.

For the three months ended April 3, 2021, sales volumes increased 20.7% in aggregates, 13.7% in cement, 7.6% in ready-mix concrete and 15.9% in asphalt relative to the same period last year on strong demand in most of our markets. Average selling prices in the first quarter of 2021 decreased 1.9% in aggregates, and increased 0.4% in cement, 3.7% in ready-mix concrete and 5.5% in asphalt. While most of Summit's geographies reported higher average selling prices for aggregates in the first quarter, slight changes in product mix in our Kansas and North Texas markets resulted in a lower company-wide average selling price than the year ago quarter. Adjusted cash gross profit for aggregates expanded to $49.1 million in the first quarter 2021, an increase of 34.0% relative to $36.6 million in the year ago quarter.

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."

As of April 3, 2021, the Company had $359.7 million in cash and $1.9 billion in debt outstanding. The Company's $345 million revolving credit facility has $329 million available after outstanding letters of credit. For the quarter ended April 3, 2021, cash flow used in operations was $21.3 million and cash paid for capital expenditures was $69.8 million.

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."

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.

Beginning in the first quarter of 2021, the Company is reporting fixed overhead expenses related to production in its cost of revenue to align more closely to industry peers. Previously, the Company reported fixed overhead expenses in its general and administrative costs.

First Quarter 2021 | Results by Line of Business
Aggregates Business: Aggregates net revenues increased by $21.2 million to $117.4 million in the first quarter 2021 when compared to the prior year period. Aggregates adjusted cash gross profit margin increased to 41.8% in the first quarter 2021 as compared to 38.1% in the first quarter 2020. Aggregates sales volumes increased 20.7% in the first quarter 2021 when compared to the prior year period on organic growth in both the West and East segments. Volume increased in the Intermountain West, Virginia and British Columbia markets, partially offset by
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slight decreases in Kansas and Missouri as wind farm and flood repair volumes in the first quarter of 2020 did not repeat in 2021. Average selling prices for aggregates decreased 1.9% in the first quarter 2021, primarily due to product mix in Kansas and North Texas markets. On an organic basis, average selling prices for aggregates remained flat.

Cement Business: Cement segment net revenues increased 7.2% to $40.7 million in the first quarter 2021, when compared to the prior year period, on higher sales volume of cement. Cement adjusted cash gross profit margin increased to 1.9% in the first quarter, compared to (10.0)% in the prior year period, as higher volumes resulted in lower unit plant costs. Our Green America Recycling facility continues to ramp up production following an explosion that occurred in April 2020. Sales volume of cement increased 13.7% in the first quarter and average selling prices increased 0.4% when compared to the prior year period.
 
Products Business: Products net revenues were $198.7 million in the first quarter 2021, compared to $176.3 million in the prior year period. Products adjusted cash gross profit margin increased to 13.6% in the first quarter, versus 11.4% in the prior year period. Our organic average sales price for ready-mix concrete increased 3.7% and organic sales volumes of ready-mix concrete increased 7.6%, as volume increased in our Intermountain West and North Texas markets, and prices increased in our Intermountain West market. Our organic average sales price for asphalt increased 5.5%, with strong pricing gains across our Texas geographies, while volume increased 15.9%, on higher volumes in North Texas.

First Quarter 2021 | Results By Reporting Segment
Net revenue increased by 16.4% to $398.5 million in the first quarter 2021, versus $342.4 million in the prior year period on organic growth
in our aggregates and ready-mix concrete operations. The Company reported an operating loss of $25.1 million in the first quarter 2021, compared to $41.7 million in the prior year period.

Net loss decreased to $23.2 million in the first quarter of 2021, compared to loss of $46.7 million in the prior year period. Adjusted EBITDA increased 166.5% to $41.7 million in the first quarter of 2021, compared to $15.7 million in the prior year period on higher revenue.
 
West Segment: The West Segment reported operating income of $15.1 million in the first quarter 2021, compared to $0.4 million in the prior year period. Adjusted EBITDA increased to $40.6 million in the first quarter 2021, compared to $22.5 million in the prior year period, as we had increases in net revenue in all lines of business. Improvements in operating income reflected increased demand for aggregates and ready-mix concrete, particularly in the Houston and Salt Lake City areas. Aggregates revenue in the first quarter increased 39.8% over the prior year period, while organic volumes and average sales prices increased 13.1% and 1.1%, respectively. Ready-mix concrete revenue in the first quarter 2021 increased 19.5% over the prior year period, as organic volumes increased 14.1% and organic average sales prices increased 4.7%, reflecting favorable market conditions for residential construction. Asphalt revenue increased by 18.2% in the first quarter 2021 over the prior year period. Asphalt volumes increased 11.7%, reflecting higher demand in North Texas, and sales prices increased 8.0%.

East Segment: The East Segment reported an operating loss of $10.4 million in the first quarter 2021, compared to $11.8 million in the prior year period as net revenue increases in aggregates, asphalt and paving and related services exceeded a decrease in ready-mix concrete. Adjusted EBITDA increased to $11.7 million in the first quarter 2021, compared to $9.6 million in the prior year period. Aggregates revenue increased 2.6%, as volumes increased 2.7%, partially offset by decreased average selling prices of 0.2%. Ready-mix concrete revenue decreased 11.9% as volumes decreased by 12.4%, partially offset by organic average selling prices which increased 0.5% primarily due to lower volumes in Kansas as wind farm projects in 2020 were not fully replaced in 2021. Asphalt revenue increased 40.6% as organic volumes increased 55.0% on higher volumes in Kansas and Virginia, while organic average selling prices decreased 11.5% on lower liquid asphalt index prices in most of our markets.

Cement Segment: The Cement Segment reported an operating loss of $10.0 million in the first quarter 2021, compared to $15.5 million in the prior year period. Adjusted EBITDA increased to $2.5 million in the first quarter 2021, compared to $(7.6) million in the prior year period on higher volumes. The segment reported organic sales volumes and organic average selling prices increased 13.7% and increased 0.4%, respectively, during the first quarter 2021 as compared to the prior year period. Our Green America Recycling facility continues to ramp up production following an explosion that occurred in April 2020. As a result, revenue from that facility is below 2020 levels for the first quarter 2021.
 
Liquidity and Capital Resources
As of April 3, 2021, the Company had cash on hand of $359.7 million and borrowing capacity under its $345 million revolving credit facility of $329.1 million. The borrowing capacity on the revolving credit facility is currently fully available to the Company within the terms and covenant requirements of its credit agreement. As of April 3, 2021, the Company had $1.9 billion in debt outstanding.
 
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.
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Webcast and Conference Call Information
Summit Materials will conduct a conference call on Tuesday, May 11, 2021, at 11:00 a.m. eastern time (9:00 a.m. mountain time) to review the Company’s first quarter 2021 financial results, discuss recent events and conduct a question-and-answer session.

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 on May 11, 2021:

Domestic Live: 1-877-823-8690
International Live: 1-825-312-2236
Conference ID:     2395906
Password:     Summit

To listen to a replay of the teleconference, which will be available through May 18, 2021:

Domestic Replay: 1-800-585-8367
International Replay: 1-416-621-4642
Conference ID:     2395906

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.
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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 2, 2021, 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, 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 commodities, labor and other production and delivery inputs as a result of inflation 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;
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-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.

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SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
($ in thousands, except share and per share amounts)
 
 Three months ended
 April 3,March 28,
 20212020
Revenue:  
Product$354,234 $305,307 
Service44,247 37,099 
Net revenue398,481 342,406 
Delivery and subcontract revenue29,363 24,784 
Total revenue427,844 367,190 
Cost of revenue (excluding items shown separately below):  
Product277,134 254,055 
Service40,197 38,524 
Net cost of revenue317,331 292,579 
Delivery and subcontract cost29,363 24,784 
Total cost of revenue346,694 317,363 
General and administrative expenses51,642 41,686 
Depreciation, depletion, amortization and accretion56,336 51,778 
Gain on sale of property, plant and equipment (1,769)(1,917)
Operating loss(25,059)(41,720)
Interest expense24,186 27,818 
Gain on sale of business(15,668)— 
Other (income) loss, net(4,889)89 
Loss from operations before taxes(28,688)(69,627)
Income tax benefit(5,443)(22,901)
Net loss(23,245)(46,726)
Net loss attributable to Summit Holdings (1)(728)(1,747)
Net loss attributable to Summit Inc.$(22,517)$(44,979)
Loss per share of Class A common stock:
Basic$(0.19)$(0.40)
Diluted$(0.20)$(0.40)
Weighted average shares of Class A common stock:
Basic115,664,725 113,602,110 
Diluted115,411,204 113,602,110 
________________________________________________________
(1) Represents portion of business owned by pre-IPO investors rather than by Summit.
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SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ in thousands, except share and per share amounts)
 April 3,January 2,
 20212021
 (unaudited)(audited)
Assets  
Current assets:  
Cash and cash equivalents$359,741 $418,181 
Accounts receivable, net250,058 254,696 
Costs and estimated earnings in excess of billings17,124 8,666 
Inventories210,934 200,308 
Other current assets20,578 11,428 
Total current assets858,435 893,279 
Property, plant and equipment, less accumulated depreciation, depletion and amortization (April 3, 2021 - $1,170,071 and January 2, 2021 - $1,132,925)1,897,117 1,850,169 
Goodwill1,201,426 1,201,291 
Intangible assets, less accumulated amortization (April 3, 2021 - $12,502 and January 2, 2021 - $11,864)71,486 47,852 
Deferred tax assets, less valuation allowance (April 3, 2021 - $1,675 and January 2, 2021 - $1,675)240,565 231,877 
Operating lease right-of-use assets28,796 28,543 
Other assets53,432 55,000 
Total assets$4,351,257 $4,308,011 
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of debt$6,354 $6,354 
Current portion of acquisition-related liabilities13,372 10,265 
Accounts payable150,243 120,813 
Accrued expenses130,338 160,570 
Current operating lease liabilities7,480 8,188 
Billings in excess of costs and estimated earnings13,930 16,499 
Total current liabilities321,717 322,689 
Long-term debt1,891,522 1,892,347 
Acquisition-related liabilities31,015 12,246 
Tax receivable agreement liability325,832 321,680 
Noncurrent operating lease liabilities22,246 21,500 
Other noncurrent liabilities144,365 121,281 
Total liabilities2,736,697 2,691,743 
Stockholders’ equity:  
Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 116,644,332 and 114,390,595 shares issued and outstanding as of April 3, 2021 and January 2, 2021, respectively1,167 1,145 
Class B common stock, par value $0.01 per share; 250,000,000 shares authorized, 99 shares issued and outstanding as of April 3, 2021 and January 2, 2021— — 
Additional paid-in capital1,289,267 1,264,681 
Accumulated earnings304,255 326,772 
Accumulated other comprehensive income6,838 5,203 
Stockholders’ equity1,601,527 1,597,801 
Noncontrolling interest in Summit Holdings13,033 18,467 
Total stockholders’ equity1,614,560 1,616,268 
Total liabilities and stockholders’ equity$4,351,257 $4,308,011 

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SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Cash Flows
($ in thousands)
 Three months ended
 April 3,March 28,
 20212020
Cash flow from operating activities:  
Net loss$(23,245)$(46,726)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion, amortization and accretion59,107 55,278 
Share-based compensation expense5,363 4,905 
Net gain on asset and business disposals(15,964)(1,933)
Change in deferred tax asset, net(10,145)(24,194)
Other483 1,611 
Decrease (increase) in operating assets, net of acquisitions and dispositions:
Accounts receivable, net4,946 19,939 
Inventories(15,412)(26,979)
Costs and estimated earnings in excess of billings(8,442)1,710 
Other current assets(9,209)(2,519)
Other assets2,504 5,543 
(Decrease) increase in operating liabilities, net of acquisitions and dispositions:
Accounts payable14,518 (2,712)
Accrued expenses(24,130)(20,776)
Billings in excess of costs and estimated earnings(2,578)245 
Tax receivable agreement liability4,152 993 
Other liabilities(3,266)(3,316)
Net cash used in operating activities(21,318)(38,931)
Cash flow from investing activities:
Purchases of property, plant and equipment(69,757)(61,829)
Proceeds from the sale of property, plant and equipment2,663 3,160 
Proceeds from sale of business33,077 — 
Other(483)1,801 
Net cash used in investing activities(34,500)(56,868)
Cash flow from financing activities:
Payments on debt(10,170)(5,493)
Payments on acquisition-related liabilities(8,096)(9,515)
Proceeds from stock option exercises15,920 310 
Other(416)(908)
Net cash used in financing activities(2,762)(15,606)
Impact of foreign currency on cash140 (800)
Net decrease in cash(58,440)(112,205)
Cash and cash equivalents—beginning of period418,181 311,319 
Cash and cash equivalents—end of period$359,741 $199,114 
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SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Unaudited Revenue Data by Segment and Line of Business
($ in thousands)
 Three months endedTwelve Months Ended
 April 3,March 28,April 3,March 28,
 2021202020212020
Segment Net Revenue:    
West$234,744 $184,492 $1,198,173 $1,038,993 
East123,068 119,989 719,290 736,787 
Cement40,669 37,925 273,366 291,323 
Net Revenue$398,481 $342,406 $2,190,829 $2,067,103 
Line of Business - Net Revenue:    
Materials    
Aggregates$117,388 $96,161 $519,234 $477,959 
Cement (1)38,139 32,863 262,905 266,599 
Products198,707 176,283 1,091,467 1,013,570 
Total Materials and Products354,234 305,307 1,873,606 1,758,128 
Services44,247 37,099 317,223 308,975 
Net Revenue$398,481 $342,406 $2,190,829 $2,067,103 
Line of Business - Net Cost of Revenue:    
Materials    
Aggregates$68,297 $59,523 $250,856 $224,015 
Cement37,360 36,655 151,238 154,467 
Products171,620 156,217 879,444 830,480 
Total Materials and Products277,277 252,395 1,281,538 1,208,962 
Services40,054 40,184 256,171 268,378 
Net Cost of Revenue$317,331 $292,579 $1,537,709 $1,477,340 
Line of Business - Adjusted Cash Gross Profit (2):    
Materials    
Aggregates$49,091 $36,638 $268,378 $253,944 
Cement (3)779 (3,792)111,667 112,132 
Products27,087 20,066 212,023 183,090 
Total Materials and Products76,957 52,912 592,068 549,166 
Services4,193 (3,085)61,052 40,597 
Adjusted Cash Gross Profit$81,150 $49,827 $653,120 $589,763 
Adjusted Cash Gross Profit Margin (2)    
Materials    
Aggregates41.8 %38.1 %51.7 %53.1 %
Cement (3)1.9 %(10.0)%40.8 %38.5 %
Products13.6 %11.4 %19.4 %18.1 %
Services9.5 %(8.3)%19.2 %13.1 %
Total Adjusted Cash Gross Profit Margin20.4 %14.6 %29.8 %28.5 %
________________________________________________________
(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.

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SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Unaudited Volume and Price Statistics
(Units in thousands)
 
 Three months ended
Total VolumeApril 3, 2021March 28, 2020
Aggregates (tons)13,509 11,193 
Cement (tons)340 299 
Ready-mix concrete (cubic yards)1,338 1,244 
Asphalt (tons)474 409 
 Three months ended
PricingApril 3, 2021March 28, 2020
Aggregates (per ton)$10.64 $10.85 
Cement (per ton)116.69 116.21 
Ready-mix concrete (per cubic yards)118.31 114.04 
Asphalt (per ton)60.01 56.86 
Three months ended
Percentage Change in
Year over Year ComparisonVolumePricing
Aggregates (per ton)20.7 %(1.9)%
Cement (per ton)13.7 %0.4 %
Ready-mix concrete (per cubic yards)7.6 %3.7 %
Asphalt (per ton)15.9 %5.5 %
Three months ended
Percentage Change in
Year over Year Comparison (Excluding acquisitions)VolumePricing
Aggregates (per ton)7.1 %— %
Cement (per ton)13.7 %0.4 %
Ready-mix concrete (per cubic yards)7.6 %3.7 %
Asphalt (per ton)15.9 %5.5 %


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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 3, 2021
   Gross RevenueIntercompanyNet
 VolumesPricing
by Product 
Elimination/Delivery 
Revenue 
Aggregates13,509 $10.64 $143,794 $(26,406)$117,388 
Cement340 116.69 39,703 (1,564)38,139 
Materials$183,497 $(27,970)$155,527 
Ready-mix concrete1,338 118.31 158,336 (103)158,233 
Asphalt474 60.01 28,421 (58)28,363 
Other Products  73,882 (61,771)12,111 
Products  $260,639 $(61,932)$198,707 

11


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 3, 2021 and March 28, 2020.
Reconciliation of Net Income (Loss) to Adjusted EBITDAThree months ended April 3, 2021
by SegmentWestEastCementCorporateConsolidated
($ in thousands)     
Net income (loss)$17,436$6,969$(1,605)$(46,045)$(23,245)
Interest (income) expense(2,032)(1,720)(4,045)31,98324,186
Income tax expense (benefit)186(66)(5,563)(5,443)
Depreciation, depletion and amortization24,92421,4748,0681,10455,570
EBITDA$40,514$26,657$2,418$(18,521)$51,068
Accretion21646981766
Gain on sale of business(15,668)(15,668)
Non-cash compensation5,3635,363
Other(82)287205
Adjusted EBITDA$40,648$11,745$2,499$(13,158)$41,734
Adjusted EBITDA Margin (1)17.3 %9.5 %6.1 %10.5 %
Reconciliation of Net Income (Loss) to Adjusted EBITDAThree months ended March 28, 2020
by SegmentWestEastCementCorporateConsolidated
($ in thousands)     
Net income (loss)$498 $(11,067)$(12,278)$(23,879)$(46,726)
Interest (income) expense(578)(569)(3,176)32,141 27,818 
Income tax benefit(467)(129)— (22,305)(22,901)
Depreciation, depletion and amortization21,684 20,720 7,808 989 51,201 
EBITDA$21,137 $8,955 $(7,646)$(13,054)$9,392 
Accretion116 376 85 — 577 
Non-cash compensation— — — 4,905 4,905 
Other1,215 242 — (670)787 
Adjusted EBITDA$22,468 $9,573 $(7,561)$(8,819)$15,661 
Adjusted EBITDA Margin (1)12.2 %8.0 %(19.9)%4.6 %
________________________________________________
(1) Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue.

12


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 3, 2021 and March 28, 2020. 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 3, 2021March 28, 2020
Reconciliation of Net Loss Per Share to Adjusted Diluted EPSNet LossPer Equity UnitNet LossPer Equity Unit
Net loss attributable to Summit Materials, Inc.$(22,517)$(0.19)$(44,979)$(0.39)
Adjustments:
Net loss attributable to noncontrolling interest(728)(0.01)(1,747)(0.01)
Gain on sale of business(15,668)(0.13)— — 
Adjusted diluted net loss before tax related adjustments(38,913)(0.33)(46,726)(0.40)
Changes in unrecognized tax expense (benefit)— — (9,537)(0.08)
Adjusted diluted net loss$(38,913)$(0.33)$(56,263)$(0.48)
Weighted-average shares:  
Basic Class A common stock115,411,204  113,602,110  
LP Units outstanding2,613,210  3,154,228  
Total equity units118,024,414  116,756,338  
 
The following table reconciles operating loss to Adjusted Cash Gross Profit and Adjusted Cash Gross Profit Margin for the three months ended April 3, 2021 and March 28, 2020.  
 Three months ended
 April 3,March 28,
Reconciliation of Operating Loss to Adjusted Cash Gross Profit20212020
($ in thousands)  
Operating loss$(25,059)$(41,720)
General and administrative expenses51,642 41,686 
Depreciation, depletion, amortization and accretion56,336 51,778 
Gain on sale of property, plant and equipment (1,769)(1,917)
Adjusted Cash Gross Profit (exclusive of items shown separately)$81,150 $49,827 
Adjusted Cash Gross Profit Margin (exclusive of items shown separately) (1)20.4 %14.6 %
_______________________________________________________
(1) Adjusted Cash Gross Profit Margin is defined as Adjusted Cash Gross Profit as a percentage of net revenue.
13


The following table reconciles net cash used in operating activities to free cash flow for the three months ended April 3, 2021 and March 28, 2020. 
 Three months ended
 April 3,March 28,
($ in thousands)20212020
Net loss$(23,245)$(46,726)
Non-cash items38,844 35,667 
Net loss adjusted for non-cash items15,599 (11,059)
Change in working capital accounts(36,917)(27,872)
Net cash used in operating activities(21,318)(38,931)
Capital expenditures, net of asset sales(67,094)(58,669)
Free cash flow$(88,412)$(97,600)

Contact:
 
Karli Anderson
EVP, Chief Environmental, Social & Governance Officer and Head of Investor Relations
karli.anderson@summit-materials.com
303-515-5152


14


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