Summit Materials (NYSE: SUM) reported Q2 EPS of $0.50, $0.26 better than the analyst estimate of $0.24. Revenue for the quarter came in at $575.2 million versus the consensus estimate of $544.73 million.

Tom Hill, CEO of Summit Materials, commented, "Despite economic uncertainty, Summit experienced resilient demand and favorable weather conditions, particularly in Utah and Kansas, which led to record 2Q net revenue, net income, and adjusted EBITDA. While our average selling price for aggregates declined relative to the second quarter of 2019, our aggregates adjusted cash gross profit margin expanded by 250 basis points, reflecting a different sales mix, particularly for levee repair work, than a year ago. Most importantly, we have been vigilant in practicing safety and distancing protocols in response to the COVID-19 outbreak. Construction is essential in all of Summit's markets, and the health and safety of our workforce, customers and local communities continues to remain our highest priority."

As of June 27, 2020, the Company had $253.4 million in cash and $1.9 billion in debt outstanding. The Company's $345 million revolving credit facility has $329 million available after consideration of committed letters of credit. For the six months ended June 27, 2020, cash flow provided by operations was $61.7 million while cash paid for capital equipment was $105.7 million. Brian Harris, CFO of Summit Materials added, "While we’ve only seen a limited impact from COVID-19 thus far, the North American economic outlook remains uncertain. We continue to engage in contingency planning and proactive reviews of capital spending, receivables and working capital under various demand scenarios. Summit reported over $580 million in available liquidity at quarter end, and is in a strong financial position."

Financial Outlook

Summit is not providing Adjusted EBITDA 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. The Company is maintaining its previously announced 2020 capital expenditure guidance to $145 million to $160 million, which the Company expects will include $50 million to $60 million for greenfield projects.

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