Second Quarter Records established
for Revenue and Profitability
Achieved Elevate Summit target for
ROIC
Raises 2023 Guidance
DENVER, Aug. 2, 2023
/PRNewswire/ -- 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 second quarter ended July 1, 2023. All comparisons are versus the
quarter-ended July 2, 2022 unless
noted otherwise.
|
|
Three months
ended
|
($ in thousands, except
per share amounts)
|
|
July 1,
2023
|
|
July 2,
2022
|
|
% Chg vs.
PY
|
Net revenue
|
|
$ 680,373
|
|
$ 631,918
|
|
7.7 %
|
Operating
income
|
|
129,633
|
|
111,236
|
|
16.5 %
|
Net income
|
|
84,728
|
|
192,766
|
|
(56.0) %
|
Basic EPS
|
|
$
0.70
|
|
$
1.58
|
|
(55.7) %
|
|
|
|
|
|
|
|
Adjusted Cash Gross
Profit
|
|
236,747
|
|
202,349
|
|
17.0 %
|
Adjusted
EBITDA
|
|
191,745
|
|
164,034
|
|
16.9 %
|
Adjusted Diluted
EPS
|
|
$
0.71
|
|
$
0.59
|
|
20.3 %
|
"Sustained pricing momentum across the portfolio, together with
solid demand fundamentals and very strong operational execution
resulted in remarkable second quarter performance and several
financial records for our business," commented Anne Noonan,
Summit Materials President and CEO. Importantly, we are delivering
against our Elevate Summit goals, setting high-water marks for
Adjusted EBITDA margin and surpassing our ROIC target minimum.
Given these first half tailwinds, more favorable second half
operating conditions, and contributions from recently completed
acquisitions, we are on solid footing to again raise our financial
commitments for this year. Underpinning these upgraded expectations
is better-than-anticipated traction on recent pricing actions and a
more robust demand environment, especially concerning residential
demand resiliency. Bottom line is that the teams across our Summit
footprint are capitalizing on market opportunities, raising the bar
operationally, and delivering significant growth in 2023 for the
organization and our shareholders."
Scott Anderson, Executive Vice
President and CFO of Summit Materials added, "Our financial
progress is complemented by aggressive, yet purposeful efforts to
draw on the Company's fortified balance sheet for growth. In the
second quarter, we completed three acquisitions that each fit
nicely within our M&A framework, strengthen the overall
portfolio, and will immediately be accretive to Adjusted EBITDA.
These acquisitions further our materials-led portfolio strategy
while, at the same time, enter Summit into the prioritized market
of Phoenix, Arizona. With the
purchase of Arizona Materials, we establish an integrated
leadership position in one of the fastest growing markets in the
country with the opportunity and intentions to build out a more
extensive, materials-oriented growth platform in that geography.
Collectively, we believe ongoing portfolio additions like these
alongside existing organic opportunities is a powerful algorithm
for Summit's profitable
growth."
2023 Guidance
For the full year 2023, Summit is raising its Adjusted EBITDA
guidance to incorporate performance over the first six months,
recent acquisitions, and improved assumptions for operating
conditions. The Company is now projecting Adjusted EBITDA of
approximately $550 million to
$570 million, up from the previous
outlook of $490 million to
$530 million. Summit currently
projects 2023 capital expenditures of approximately $240 million to $260
million including greenfield projects.
Adjusted EBITDA is a non-GAAP measure. Refer to the "Non-GAAP
Financial Measures" section for more information. 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.
Second Quarter 2023 | Total Company Results
Net revenue increased $48.5 million, or 7.7% in the
second quarter to $680.4 million, as
increases in average sales prices across all lines of business more
than offset lower volumes.
Operating income increased $18.4 million, or 16.5% in the second quarter to
$129.6 million, driven by a
combination of increases in average sales price that more than
offset inflationary increases in cost of revenue and higher general
and administrative expenses versus the prior year period. Summit's
operating margin percentage for the three months ended July 1, 2023 increased to 19.1% from 17.6%, from
the comparable period a year ago.
Net income attributable to Summit Inc. decreased to
$83.6 million, or $0.70 per basic share, compared to $190.1 million, or $1.58 per basic share in the comparable prior
year period due primarily to gain on sale of business in the prior
year period. Summit reported adjusted diluted net income of
$84.7 million, or $0.71 per adjusted diluted share as compared to
$71.8 million, or $0.59 per adjusted diluted share in the prior
year period.
Adjusted EBITDA increased $27.7 million, or 16.9% to $191.7 million primarily reflecting strong
pricing across all lines of business.
Second Quarter 2023 | Results by Line of
Business
Aggregates Business: Aggregates net revenues
increased by $21.0 million to
$182.5 million in the second quarter.
Aggregates adjusted cash gross profit margin was 53.6% in the
second quarter as compared to 53.7% in the prior year period.
Aggregates sales volume decreased 2.5% in the second quarter due,
in part, to divestitures in the East Segment. Organic aggregates
sales volumes declined 2.0% as unfavorable weather conditions and
residential softness in the West Segment more than offset organic
aggregates volume growth from the East Segment. Average selling
prices for aggregates increased 14.5%, sustaining strong levels and
reflecting the cumulative effects of January
1, 2023 pricing actions and those implemented in the second
quarter.
Cement Business: Cement Segment net revenues
increased 19.5% to $111.9 million in
the second quarter. Cement Segment adjusted cash gross profit
margin increased to 52.8% in the second quarter, compared to 48.6%
in the prior year period as strong pricing gains coupled with a
greater contribution from Green America Recycling more than offset
inflationary cost conditions. Despite solid demand conditions,
sales volume of cement decreased 0.3% reflecting sold-out
conditions along the Mississippi River market. Average selling
prices increased 16.0% in the second quarter due to the compounding
effects of mid-year 2022 and January 1,
2023 pricing actions.
Products Business: Products net revenues were
$309.6 million in the second quarter,
up 5.1% versus the prior year period. Products adjusted cash gross
profit margin increased 3 percentage points to 21.2% in the second
quarter reflecting margin expansion for both ready-mix concrete and
asphalt relative to the year-ago period. Organic average sales
price for ready-mix concrete increased 13.7% driven by strong,
double-digit pricing growth across all markets, including our key
residential markets of Houston and
Salt Lake City. Organic sales
volumes of ready-mix concrete decreased 11.0% due to reduced
residential activity. Organic average selling prices for asphalt
increased 15.0%, due to pricing gains in North Texas and the Intermountain West.
Organic asphalt sales volume increased 2.1% fueled by growth in
North Texas and public
infrastructure demand.
Second Quarter 2023 | Results By Reporting
Segment
West Segment: The West Segment operating income
increased $12.1 million to
$74.7 million and Adjusted EBITDA of
$104.5 million in the second quarter
increased 23.5% versus the prior year period. Aggregates revenue
increased 12.8% as 17.6% organic pricing growth was partially
offset by 6.6% organic volume declines. Pricing growth was
strongest in Texas followed by
British Columbia and then the
Intermountain West. Ready-mix concrete revenue increased 10.2% as
13.5% organic pricing growth was more than offset by lower volumes,
particularly in Houston while
activity in Salt Lake City
demonstrated robust sequential recovery. Asphalt revenue increased
25.6% due to organic pricing growth of 17.2% and organic volume
growth of 3.8% driven by the North
Texas market and, to a lesser extent, the Intermountain
West.
East Segment: The East Segment operating income of
$31.6 million was essentially flat to
the prior year period and Adjusted EBITDA increased 2.0% to
$47.6 million, despite the impact of
divestitures and reflective of a favorable pricing and demand
environment. Aggregates revenue increased 10.4% versus the prior
year period. Organic aggregates volumes increased 3.4% driven by
strong growth in Kansas and
Virginia. Aggregates pricing
increased 10.3% with solid growth across markets. Ready-mix
concrete revenue increased 1.6% due to average selling price growth
of 14.2% that more than offset lower volumes. Due primarily to
divestitures, asphalt revenue decreased to $9.2 million.
Cement Segment: The Cement Segment operating income
increased 27.6% to $43.0 million.
Adjusted EBITDA increased $9.6
million as revenue growth combined with greater contribution
from Green America Recycling to more than offset inflationary
conditions. In the second quarter, the Cement Segment reported a
volume decreased of 0.3% and average selling price growth of
16.0%.
Liquidity and Capital Resources
As of July 1, 2023, the Company
had $230.0 million in cash and
$1.5 billion in debt outstanding. The
Company's $395 million revolving
credit facility has $374.1 million available after outstanding
letters of credit. The reduction in the Company's cash
position relative to the period ending April
1, 2023 primarily reflects acquisitions made in the second
quarter of 2023.
For the quarter ended July 1,
2023, cash flow provided by operations was $94.0 million and cash paid for capital
expenditures was $126.9 million.
As of July 1, 2023, approximately
$149.0 million remained available for
share repurchase under the Company's existing share repurchase
program.
Webcast and Conference Call Information
Summit Materials will conduct a conference call on Thursday,
August 3, 2023, at 12:00 p.m. eastern
time (10:00 a.m. mountain
time) to review the Company's second quarter 2023 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.
A webcast of the second quarter results conference call and
accompanying presentation materials will be available in the
Investors section of Summit's website at
investors.summit-materials.com or at the following link:
https://events.q4inc.com/attendee/210795718.
To participate in the live teleconference for second quarter
2023 financial results:
Domestic
Live:
1-888-330-3416
International
Live:
1-646-960-0820
Conference
ID:
1542153
To listen to a replay of the teleconference, which will be
available through August 10,
2023:
Domestic
Replay:
1-800-770-2030
International
Replay:
1-647-362-9199
Conference
ID:
1542153
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, and Free Cash Flow 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, Adjusted EBITDA Margin,
Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, and
Free Cash Flow 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, Adjusted EBITDA Margin, Adjusted Cash Gross
Profit, Adjusted Cash Gross Profit Margin, Adjusted Net Income
(Loss), Adjusted Diluted Net Income, Adjusted Diluted EPS, and Free
Cash Flow 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.
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," "outlook," "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 December 31,
2022, as filed with the SEC, and any factors discussed in
the section entitled "Risk Factors" in any of our subsequently
filed SEC filings; and the following:
- our dependence on the construction industry and the strength of
the local economies in which we operate, including
residential;
- 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 and
portfolio optimization 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;
- the impact of rising interest rates, and diminished liquidity
and credit availability in the market generally;
- declines in public infrastructure construction and delays or
reductions in governmental funding, including the funding by
transportation authorities, the federal government and other state
agencies particularly;
- 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;
- rising prices for, or more limited availability of,
commodities, labor and other production and delivery inputs as a
result of inflation, supply chain challenges 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 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 other
regulations;
- unexpected operational difficulties;
- costs associated with pending and future litigation;
- interruptions in our information technology systems and
infrastructure; including cybersecurity and data leakage
risks;
- potential labor disputes, strikes, other forms of work stoppage
or other union activities; and
- the impact of the COVID-19 pandemic and responses to it,
including vaccine mandates, or any similar crisis, on our
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.
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
|
Unaudited Consolidated
Statements of Operations
|
($ in thousands, except
share and per share amounts)
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
July
1,
|
|
July
2,
|
|
July
1,
|
|
July
2,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
595,714
|
|
$
542,939
|
|
$
967,886
|
|
$
898,608
|
Service
|
|
84,659
|
|
88,979
|
|
119,757
|
|
125,805
|
Net revenue
|
|
680,373
|
|
631,918
|
|
1,087,643
|
|
1,024,413
|
Delivery and
subcontract revenue
|
|
48,777
|
|
54,636
|
|
76,895
|
|
83,088
|
Total
revenue
|
|
729,150
|
|
686,554
|
|
1,164,538
|
|
1,107,501
|
Cost of revenue
(excluding items shown separately below):
|
|
|
|
|
|
|
|
|
Product
|
|
377,634
|
|
360,356
|
|
673,515
|
|
650,701
|
Service
|
|
65,992
|
|
69,213
|
|
96,030
|
|
103,796
|
Net cost of
revenue
|
|
443,626
|
|
429,569
|
|
769,545
|
|
754,497
|
Delivery and
subcontract cost
|
|
48,777
|
|
54,636
|
|
76,895
|
|
83,088
|
Total cost of
revenue
|
|
492,403
|
|
484,205
|
|
846,440
|
|
837,585
|
General and
administrative expenses
|
|
55,550
|
|
47,651
|
|
101,912
|
|
99,575
|
Depreciation,
depletion, amortization and accretion
|
|
54,787
|
|
47,157
|
|
105,681
|
|
98,350
|
Gain on sale of
property, plant and equipment
|
|
(3,223)
|
|
(3,695)
|
|
(3,653)
|
|
(4,950)
|
Operating
income
|
|
129,633
|
|
111,236
|
|
114,158
|
|
76,941
|
Interest
expense
|
|
27,902
|
|
20,599
|
|
55,322
|
|
40,748
|
Loss on debt
financings
|
|
—
|
|
—
|
|
493
|
|
—
|
Tax receivable
agreement expense
|
|
—
|
|
954
|
|
—
|
|
954
|
Gain on sale of
businesses
|
|
—
|
|
(156,053)
|
|
—
|
|
(170,258)
|
Other income,
net
|
|
(5,478)
|
|
(977)
|
|
(11,188)
|
|
(1,673)
|
Income from operations
before taxes
|
|
107,209
|
|
246,713
|
|
69,531
|
|
207,170
|
Income tax
expense
|
|
22,481
|
|
53,947
|
|
16,015
|
|
49,204
|
Net income
|
|
84,728
|
|
192,766
|
|
53,516
|
|
157,966
|
Net loss attributable
to Summit Holdings (1)
|
|
1,091
|
|
2,653
|
|
683
|
|
2,145
|
Net income
attributable to Summit Inc.
|
|
$
83,637
|
|
$
190,113
|
|
$
52,833
|
|
$
155,821
|
Earnings per share of
Class A common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.70
|
|
$
1.58
|
|
$
0.44
|
|
$
1.29
|
Diluted
|
|
$
0.70
|
|
$
1.58
|
|
$
0.44
|
|
$
1.28
|
Weighted average shares
of Class A common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
118,931,914
|
|
120,222,094
|
|
118,805,785
|
|
120,569,387
|
Diluted
|
|
119,393,709
|
|
120,660,721
|
|
119,431,604
|
|
121,374,168
|
________________________________________________________
(1) Represents portion of business owned by pre-IPO
investors rather than by Summit.
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
|
Consolidated Balance
Sheets
|
($ in thousands, except
share and per share amounts)
|
|
|
|
July
1,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
|
(unaudited)
|
|
(audited)
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 230,010
|
|
$ 520,451
|
Accounts receivable,
net
|
|
370,504
|
|
256,669
|
Costs and estimated
earnings in excess of billings
|
|
35,315
|
|
6,510
|
Inventories
|
|
246,275
|
|
212,491
|
Other current
assets
|
|
22,336
|
|
20,787
|
Current assets held
for sale
|
|
1,862
|
|
1,468
|
Total current
assets
|
|
906,302
|
|
1,018,376
|
Property, plant and
equipment, less accumulated depreciation, depletion and
amortization
(July 1, 2023 - $1,352,008 and December 31, 2022 -
$1,267,557)
|
|
1,979,986
|
|
1,813,702
|
Goodwill
|
|
1,228,468
|
|
1,132,546
|
Intangible assets, less
accumulated amortization (July 1, 2023 - $17,321 and
December 31, 2022
- $15,503)
|
|
69,714
|
|
71,384
|
Deferred tax assets,
less valuation allowance (July 1, 2023 - $1,113 and
December 31, 2022
- $1,113)
|
|
126,817
|
|
136,986
|
Operating lease
right-of-use assets
|
|
36,013
|
|
37,889
|
Other assets
|
|
48,187
|
|
44,809
|
Total
assets
|
|
$ 4,395,487
|
|
$ 4,255,692
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
debt
|
|
$
5,096
|
|
$
5,096
|
Current portion of
acquisition-related liabilities
|
|
7,243
|
|
13,718
|
Accounts
payable
|
|
171,221
|
|
104,031
|
Accrued
expenses
|
|
148,660
|
|
119,967
|
Current operating
lease liabilities
|
|
7,707
|
|
7,296
|
Billings in excess of
costs and estimated earnings
|
|
7,054
|
|
5,739
|
Total current
liabilities
|
|
346,981
|
|
255,847
|
Long-term
debt
|
|
1,487,289
|
|
1,488,569
|
Acquisition-related
liabilities
|
|
23,503
|
|
29,051
|
Tax receivable
agreement liability
|
|
322,624
|
|
327,812
|
Noncurrent operating
lease liabilities
|
|
33,563
|
|
35,737
|
Other noncurrent
liabilities
|
|
107,563
|
|
106,686
|
Total
liabilities
|
|
2,321,523
|
|
2,243,702
|
Stockholders'
equity:
|
|
|
|
|
Class A common stock,
par value $0.01 per share; 1,000,000,000 shares authorized,
118,886,274 and 118,408,655 shares issued and outstanding as of
July 1, 2023 and
December 31, 2022, respectively
|
|
1,190
|
|
1,185
|
Class B common stock,
par value $0.01 per share; 250,000,000 shares authorized,
99 shares issued and outstanding as of July 1, 2023 and
December 31, 2022
|
|
—
|
|
—
|
Additional paid-in
capital
|
|
1,409,364
|
|
1,404,122
|
Accumulated
earnings
|
|
643,728
|
|
590,895
|
Accumulated other
comprehensive income
|
|
6,326
|
|
3,084
|
Stockholders'
equity
|
|
2,060,608
|
|
1,999,286
|
Noncontrolling
interest in Summit Holdings
|
|
13,356
|
|
12,704
|
Total stockholders'
equity
|
|
2,073,964
|
|
2,011,990
|
Total liabilities and
stockholders' equity
|
|
$ 4,395,487
|
|
$ 4,255,692
|
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
|
Unaudited Consolidated
Statements of Cash Flows
|
($ in
thousands)
|
|
|
|
Six months
ended
|
|
|
July
1,
|
|
July
2,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$
53,516
|
|
$ 157,966
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation,
depletion, amortization and accretion
|
|
110,659
|
|
107,511
|
Share-based
compensation expense
|
|
9,924
|
|
10,156
|
Net gain on asset and
business disposals
|
|
(3,655)
|
|
(174,902)
|
Non-cash loss on debt
financings
|
|
161
|
|
—
|
Change in deferred tax
asset, net
|
|
9,350
|
|
44,160
|
Other
|
|
(21)
|
|
(357)
|
Decrease (increase) in
operating assets, net of acquisitions and dispositions:
|
|
|
|
|
Accounts receivable,
net
|
|
(101,119)
|
|
(57,797)
|
Inventories
|
|
(27,115)
|
|
(58,092)
|
Costs and estimated
earnings in excess of billings
|
|
(28,760)
|
|
(36,165)
|
Other current
assets
|
|
(1,070)
|
|
(2,130)
|
Other
assets
|
|
1,732
|
|
(593)
|
(Decrease) increase in
operating liabilities, net of acquisitions and
dispositions:
|
|
|
|
|
Accounts
payable
|
|
52,157
|
|
39,602
|
Accrued
expenses
|
|
19,048
|
|
(11,108)
|
Billings in excess of
costs and estimated earnings
|
|
1,299
|
|
(737)
|
Tax receivable
agreement liability
|
|
(531)
|
|
954
|
Other
liabilities
|
|
(1,533)
|
|
(2,214)
|
Net cash provided by
operating activities
|
|
94,042
|
|
16,254
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisitions, net of
cash acquired
|
|
(237,666)
|
|
(1,933)
|
Purchases of property,
plant and equipment
|
|
(126,893)
|
|
(129,580)
|
Proceeds from the sale
of property, plant and equipment
|
|
5,760
|
|
5,427
|
Proceeds from sale of
businesses
|
|
—
|
|
341,741
|
Other
|
|
(1,852)
|
|
(1,098)
|
Net cash (used in)
provided by investing activities
|
|
(360,651)
|
|
214,557
|
Cash flows from
financing activities:
|
|
|
|
|
Debt issuance
costs
|
|
(1,566)
|
|
—
|
Payments on
debt
|
|
(6,720)
|
|
(86,821)
|
Payments on
acquisition-related liabilities
|
|
(11,539)
|
|
(11,577)
|
Distributions from
partnership
|
|
—
|
|
(25)
|
Repurchases of common
stock
|
|
—
|
|
(47,509)
|
Proceeds from stock
option exercises
|
|
84
|
|
123
|
Other
|
|
(4,838)
|
|
(187)
|
Net cash used in
financing activities
|
|
(24,579)
|
|
(145,996)
|
Impact of foreign
currency on cash
|
|
747
|
|
(461)
|
Net (decrease)
increase in cash
|
|
(290,441)
|
|
84,354
|
Cash and cash
equivalents—beginning of period
|
|
520,451
|
|
380,961
|
Cash and cash
equivalents—end of period
|
|
$ 230,010
|
|
$ 465,315
|
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
|
Unaudited Revenue Data
by Segment and Line of Business
|
($ in
thousands)
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
July
1,
|
|
July
2,
|
|
July
1,
|
|
July
2,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Segment Net
Revenue:
|
|
|
|
|
|
|
|
|
West
|
|
$
400,038
|
|
$
352,510
|
|
$
634,408
|
|
$
588,512
|
East
|
|
168,460
|
|
185,757
|
|
287,243
|
|
296,025
|
Cement
|
|
111,875
|
|
93,651
|
|
165,992
|
|
139,876
|
Net Revenue
|
|
$
680,373
|
|
$
631,918
|
|
$
1,087,643
|
|
$
1,024,413
|
|
|
|
|
|
|
|
|
|
Line of Business - Net
Revenue:
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$
182,512
|
|
$
161,480
|
|
$
326,165
|
|
$
284,873
|
Cement (1)
|
|
103,607
|
|
86,815
|
|
152,620
|
|
129,369
|
Products
|
|
309,595
|
|
294,644
|
|
489,101
|
|
484,366
|
Total Materials and
Products
|
|
595,714
|
|
542,939
|
|
967,886
|
|
898,608
|
Services
|
|
84,659
|
|
88,979
|
|
119,757
|
|
125,805
|
Net Revenue
|
|
$
680,373
|
|
$
631,918
|
|
$
1,087,643
|
|
$
1,024,413
|
|
|
|
|
|
|
|
|
|
Line of Business - Net
Cost of Revenue:
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$ 84,713
|
|
$ 74,789
|
|
$
178,048
|
|
$
153,398
|
Cement
|
|
44,568
|
|
41,323
|
|
88,403
|
|
84,808
|
Products
|
|
243,854
|
|
241,098
|
|
401,095
|
|
408,751
|
Total Materials and
Products
|
|
373,135
|
|
357,210
|
|
667,546
|
|
646,957
|
Services
|
|
70,491
|
|
72,359
|
|
101,999
|
|
107,540
|
Net Cost of
Revenue
|
|
$
443,626
|
|
$
429,569
|
|
$
769,545
|
|
$
754,497
|
|
|
|
|
|
|
|
|
|
Line of Business -
Adjusted Cash Gross Profit (2):
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$ 97,799
|
|
$ 86,691
|
|
$
148,117
|
|
$
131,475
|
Cement (3)
|
|
59,039
|
|
45,492
|
|
64,217
|
|
44,561
|
Products
|
|
65,741
|
|
53,546
|
|
88,006
|
|
75,615
|
Total Materials and
Products
|
|
222,579
|
|
185,729
|
|
300,340
|
|
251,651
|
Services
|
|
14,168
|
|
16,620
|
|
17,758
|
|
18,265
|
Adjusted Cash Gross
Profit
|
|
$
236,747
|
|
$
202,349
|
|
$
318,098
|
|
$
269,916
|
|
|
|
|
|
|
|
|
|
Adjusted Cash Gross
Profit Margin (2)
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
53.6 %
|
|
53.7 %
|
|
45.4 %
|
|
46.2 %
|
Cement (3)
|
|
52.8 %
|
|
48.6 %
|
|
38.7 %
|
|
31.9 %
|
Products
|
|
21.2 %
|
|
18.2 %
|
|
18.0 %
|
|
15.6 %
|
Services
|
|
16.7 %
|
|
18.7 %
|
|
14.8 %
|
|
14.5 %
|
Total Adjusted Cash
Gross Profit Margin
|
|
34.8 %
|
|
32.0 %
|
|
29.2 %
|
|
26.3 %
|
________________________________________________________
(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.
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
|
Unaudited Volume and
Price Statistics
|
(Units in
thousands)
|
|
|
|
Three months
ended
|
|
Six months
ended
|
Total
Volume
|
|
July 1,
2023
|
|
July 2,
2022
|
|
July 1,
2023
|
|
July 2,
2022
|
Aggregates
(tons)
|
|
16,396
|
|
16,820
|
|
28,968
|
|
30,223
|
Cement
(tons)
|
|
703
|
|
705
|
|
1,041
|
|
1,046
|
Ready-mix concrete
(cubic yards)
|
|
1,333
|
|
1,394
|
|
2,284
|
|
2,635
|
Asphalt
(tons)
|
|
1,096
|
|
1,321
|
|
1,420
|
|
1,582
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
Pricing
|
|
July 1,
2023
|
|
July 2,
2022
|
|
July 1,
2023
|
|
July 2,
2022
|
Aggregates (per
ton)
|
|
$ 13.65
|
|
$ 11.92
|
|
$
13.56
|
|
$
11.58
|
Cement (per
ton)
|
|
149.10
|
|
128.57
|
|
148.55
|
|
128.52
|
Ready-mix concrete
(per cubic yards)
|
|
149.91
|
|
131.63
|
|
148.41
|
|
129.45
|
Asphalt (per
ton)
|
|
83.90
|
|
71.16
|
|
83.54
|
|
70.33
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
Percentage Change
in
|
|
Percentage Change
in
|
Year over Year
Comparison
|
|
Volume
|
|
Pricing
|
|
Volume
|
|
Pricing
|
Aggregates (per
ton)
|
|
(2.5) %
|
|
14.5 %
|
|
(4.2) %
|
|
17.1 %
|
Cement (per
ton)
|
|
(0.3) %
|
|
16.0 %
|
|
(0.5) %
|
|
15.6 %
|
Ready-mix concrete
(per cubic yards)
|
|
(4.4) %
|
|
13.9 %
|
|
(13.3) %
|
|
14.6 %
|
Asphalt (per
ton)
|
|
(17.0) %
|
|
17.9 %
|
|
(10.2) %
|
|
18.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
Percentage Change
in
|
|
Percentage Change
in
|
Year over Year
Comparison (Excluding acquisitions &
divestitures)
|
|
Volume
|
|
Pricing
|
|
Volume
|
|
Pricing
|
Aggregates (per
ton)
|
|
(2.0) %
|
|
14.4 %
|
|
(2.6) %
|
|
17.0 %
|
Cement (per
ton)
|
|
(0.3) %
|
|
16.0 %
|
|
(0.5) %
|
|
15.6 %
|
Ready-mix concrete
(per cubic yards)
|
|
(11.0) %
|
|
13.7 %
|
|
(14.8) %
|
|
14.4 %
|
Asphalt (per
ton)
|
|
2.1 %
|
|
15.0 %
|
|
8.5 %
|
|
16.0 %
|
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
July 1, 2023
|
|
|
|
|
|
|
Gross Revenue
|
|
Intercompany
|
|
Net
|
|
|
Volumes
|
|
Pricing
|
|
by Product
|
|
Elimination/Delivery
|
|
Revenue
|
Aggregates
|
|
16,396
|
|
$
13.65
|
|
$
223,727
|
|
$
(41,215)
|
|
$
182,512
|
Cement
|
|
703
|
|
149.10
|
|
104,889
|
|
(1,282)
|
|
103,607
|
Materials
|
|
|
|
|
|
$
328,616
|
|
$
(42,497)
|
|
$
286,119
|
Ready-mix
concrete
|
|
1,333
|
|
149.91
|
|
199,826
|
|
(256)
|
|
199,570
|
Asphalt
|
|
1,096
|
|
83.90
|
|
91,926
|
|
(118)
|
|
91,808
|
Other
Products
|
|
|
|
|
|
92,275
|
|
(74,058)
|
|
18,217
|
Products
|
|
|
|
|
|
$
384,027
|
|
$
(74,432)
|
|
$
309,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
July 1, 2023
|
|
|
|
|
|
|
Gross Revenue
|
|
Intercompany
|
|
Net
|
|
|
Volumes
|
|
Pricing
|
|
by Product
|
|
Elimination/Delivery
|
|
Revenue
|
Aggregates
|
|
28,968
|
|
$
13.56
|
|
$
392,664
|
|
$
(66,499)
|
|
$
326,165
|
Cement
|
|
1,041
|
|
148.55
|
|
154,631
|
|
(2,011)
|
|
152,620
|
Materials
|
|
|
|
|
|
$
547,295
|
|
$
(68,510)
|
|
$
478,785
|
Ready-mix
concrete
|
|
2,284
|
|
148.41
|
|
338,970
|
|
(622)
|
|
338,348
|
Asphalt
|
|
1,420
|
|
83.54
|
|
118,643
|
|
(199)
|
|
118,444
|
Other
Products
|
|
|
|
|
|
162,512
|
|
(130,203)
|
|
32,309
|
Products
|
|
|
|
|
|
$
620,125
|
|
$
(131,024)
|
|
$
489,101
|
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 income to Adjusted EBITDA by segment for the
three and six months ended July 1, 2023 and July 2,
2022.
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Three months ended
July 1, 2023
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 78,354
|
|
$
34,648
|
|
$ 47,871
|
|
$ (76,145)
|
|
$ 84,728
|
Interest (income)
expense
|
|
(3,378)
|
|
(2,890)
|
|
(4,890)
|
|
39,060
|
|
27,902
|
Income tax
expense
|
|
1,478
|
|
—
|
|
—
|
|
21,003
|
|
22,481
|
Depreciation, depletion
and amortization
|
|
27,884
|
|
15,254
|
|
9,870
|
|
1,034
|
|
54,042
|
EBITDA
|
|
$
104,338
|
|
$
47,012
|
|
$ 52,851
|
|
$ (15,048)
|
|
$
189,153
|
Accretion
|
|
260
|
|
464
|
|
21
|
|
—
|
|
745
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
5,216
|
|
5,216
|
Other
|
|
(81)
|
|
141
|
|
—
|
|
(3,429)
|
|
(3,369)
|
Adjusted
EBITDA
|
|
$
104,517
|
|
$
47,617
|
|
$ 52,872
|
|
$ (13,261)
|
|
$
191,745
|
Adjusted EBITDA Margin
(1)
|
|
26.1 %
|
|
28.3 %
|
|
47.3 %
|
|
|
|
28.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to
Adjusted EBITDA
|
|
Three months ended
July 2, 2022
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 65,606
|
|
$
64,089
|
|
$ 38,641
|
|
$
24,430
|
|
$
192,766
|
Interest (income)
expense
|
|
(4,035)
|
|
(2,714)
|
|
(4,860)
|
|
32,208
|
|
20,599
|
Income tax
expense
|
|
987
|
|
—
|
|
—
|
|
52,960
|
|
53,947
|
Depreciation, depletion
and amortization
|
|
21,779
|
|
14,523
|
|
9,383
|
|
770
|
|
46,455
|
EBITDA
|
|
$ 84,337
|
|
$
75,898
|
|
$ 43,164
|
|
$
110,368
|
|
$
313,767
|
Accretion
|
|
233
|
|
392
|
|
77
|
|
—
|
|
702
|
Tax receivable
agreement expense
|
|
—
|
|
—
|
|
—
|
|
954
|
|
954
|
Gain on sale of
businesses
|
|
—
|
|
(29,452)
|
|
—
|
|
(126,601)
|
|
(156,053)
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
4,734
|
|
4,734
|
Other
|
|
74
|
|
(144)
|
|
—
|
|
—
|
|
(70)
|
Adjusted
EBITDA
|
|
$ 84,644
|
|
$
46,694
|
|
$ 43,241
|
|
$ (10,545)
|
|
$
164,034
|
Adjusted EBITDA Margin
(1)
|
|
24.0 %
|
|
25.1 %
|
|
46.2 %
|
|
|
|
26.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Six months ended
July 1, 2023
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 87,276
|
|
$
40,586
|
|
$ 44,846
|
|
$
(119,192)
|
|
$ 53,516
|
Interest (income)
expense
|
|
(6,709)
|
|
(5,652)
|
|
(9,853)
|
|
77,536
|
|
55,322
|
Income tax
expense
|
|
2,217
|
|
—
|
|
—
|
|
13,798
|
|
16,015
|
Depreciation, depletion
and amortization
|
|
54,007
|
|
30,351
|
|
17,850
|
|
2,022
|
|
104,230
|
EBITDA
|
|
$
136,791
|
|
$
65,285
|
|
$ 52,843
|
|
$ (25,836)
|
|
$
229,083
|
Accretion
|
|
510
|
|
902
|
|
39
|
|
—
|
|
1,451
|
Loss on debt
financings
|
|
—
|
|
—
|
|
—
|
|
493
|
|
493
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
9,924
|
|
9,924
|
Other
|
|
(106)
|
|
282
|
|
—
|
|
(8,181)
|
|
(8,005)
|
Adjusted
EBITDA
|
|
$
137,195
|
|
$
66,469
|
|
$ 52,882
|
|
$ (23,600)
|
|
$
232,946
|
Adjusted EBITDA Margin
(1)
|
|
21.6 %
|
|
23.1 %
|
|
31.9 %
|
|
|
|
21.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Six months ended
July 2, 2022
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 77,507
|
|
$
71,455
|
|
$ 30,210
|
|
$ (21,206)
|
|
$
157,966
|
Interest (income)
expense
|
|
(8,005)
|
|
(6,165)
|
|
(9,822)
|
|
64,740
|
|
40,748
|
Income tax expense
(benefit)
|
|
1,163
|
|
(106)
|
|
—
|
|
48,147
|
|
49,204
|
Depreciation, depletion
and amortization
|
|
46,127
|
|
32,407
|
|
16,881
|
|
1,519
|
|
96,934
|
EBITDA
|
|
$
116,792
|
|
$
97,591
|
|
$ 37,269
|
|
$
93,200
|
|
$
344,852
|
Accretion
|
|
460
|
|
803
|
|
153
|
|
—
|
|
1,416
|
Tax receivable
agreement expense
|
|
—
|
|
—
|
|
—
|
|
954
|
|
954
|
Gain on sale of
businesses
|
|
—
|
|
(43,657)
|
|
—
|
|
(126,601)
|
|
(170,258)
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
10,156
|
|
10,156
|
Other
|
|
84
|
|
93
|
|
—
|
|
—
|
|
177
|
Adjusted
EBITDA
|
|
$
117,336
|
|
$
54,830
|
|
$ 37,422
|
|
$ (22,291)
|
|
$
187,297
|
Adjusted EBITDA Margin
(1)
|
|
19.9 %
|
|
18.5 %
|
|
26.8 %
|
|
|
|
18.3 %
|
________________________________________________
(1) Adjusted EBITDA Margin is defined as Adjusted
EBITDA as a percentage of net revenue.
The table below reconciles our net income attributable to Summit
Materials, Inc. to adjusted diluted net income per share for the
three and six months ended July 1,
2023 and July 2, 2022. The per
share amount of the net income 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
income per share.
|
|
Three months
ended
|
|
Six months
ended
|
|
|
July 1,
2023
|
|
July 2,
2022
|
|
July 1,
2023
|
|
July 2,
2022
|
Reconciliation of Net Income
Per Share to Adjusted Diluted
EPS
|
|
Net
Income
|
|
Per Equity
Unit
|
|
Net
Income
|
|
Per Equity
Unit
|
|
Net
Income
|
|
Per Equity
Unit
|
|
Net
Income
|
|
Per Equity
Unit
|
Net income attributable
to Summit Materials, Inc.
|
|
$ 83,637
|
|
$
0.70
|
|
$
190,113
|
|
$
1.57
|
|
$ 52,833
|
|
$
0.44
|
|
$
155,821
|
|
$
1.28
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
1,091
|
|
0.01
|
|
2,653
|
|
0.02
|
|
683
|
|
0.01
|
|
2,145
|
|
0.02
|
Gain on sale of
businesses, net of tax
|
|
—
|
|
—
|
|
(121,935)
|
|
(1.01)
|
|
—
|
|
—
|
|
(127,569)
|
|
(1.05)
|
Loss on debt
financings
|
|
—
|
|
—
|
|
—
|
|
—
|
|
493
|
|
—
|
|
—
|
|
—
|
Adjusted diluted net
income before tax related adjustments
|
|
84,728
|
|
0.71
|
|
70,831
|
|
0.58
|
|
54,009
|
|
0.45
|
|
30,397
|
|
0.25
|
Tax receivable
agreement expense
|
|
—
|
|
—
|
|
954
|
|
0.01
|
|
—
|
|
—
|
|
954
|
|
0.01
|
Adjusted diluted net
income
|
|
$ 84,728
|
|
$
0.71
|
|
$ 71,785
|
|
$
0.59
|
|
$ 54,009
|
|
$
0.45
|
|
$ 31,351
|
|
$
0.26
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Class A common
stock
|
|
118,848,214
|
|
|
|
120,078,273
|
|
|
|
118,706,385
|
|
|
|
120,417,414
|
|
|
LP Units
outstanding
|
|
1,310,004
|
|
|
|
1,314,006
|
|
|
|
1,310,630
|
|
|
|
1,314,006
|
|
|
Total equity
units
|
|
120,158,218
|
|
|
|
121,392,279
|
|
|
|
120,017,015
|
|
|
|
121,731,420
|
|
|
The following table reconciles operating income to Adjusted Cash
Gross Profit and Adjusted Cash Gross Profit Margin for the three
and six months ended July 1, 2023 and
July 2, 2022.
|
|
Three months
ended
|
|
Six months
ended
|
|
|
July
1,
|
|
July
2,
|
|
July
1,
|
|
July
2,
|
Reconciliation of Operating Income
to Adjusted Cash Gross Profit
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
($
in thousands)
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
129,633
|
|
$
111,236
|
|
$
114,158
|
|
$ 76,941
|
General and
administrative expenses
|
|
55,550
|
|
47,651
|
|
101,912
|
|
99,575
|
Depreciation,
depletion, amortization and accretion
|
|
54,787
|
|
47,157
|
|
105,681
|
|
98,350
|
Gain on sale of
property, plant and equipment
|
|
(3,223)
|
|
(3,695)
|
|
(3,653)
|
|
(4,950)
|
Adjusted Cash Gross
Profit (exclusive of items shown separately)
|
|
$
236,747
|
|
$
202,349
|
|
$
318,098
|
|
$
269,916
|
Adjusted Cash Gross
Profit Margin (exclusive of items shown separately) (1)
|
|
34.8 %
|
|
32.0 %
|
|
29.2 %
|
|
26.3 %
|
_______________________________________________________
(1) Adjusted Cash Gross Profit Margin is defined as
Adjusted Cash Gross Profit as a percentage of net revenue.
The following table reconciles net cash provided by operating
activities to free cash flow for the three and six months ended
July 1, 2023 and July 2, 2022.
|
|
Three months
ended
|
|
Six months
ended
|
|
|
July
1,
|
|
July
2,
|
|
July
1,
|
|
July
2,
|
($
in thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
|
$
84,728
|
|
$ 192,766
|
|
$
53,516
|
|
$ 157,966
|
Non-cash
items
|
|
75,986
|
|
(50,041)
|
|
126,418
|
|
(13,432)
|
Net income adjusted
for non-cash items
|
|
160,714
|
|
142,725
|
|
179,934
|
|
144,534
|
Change in working
capital accounts
|
|
(67,007)
|
|
(109,758)
|
|
(85,892)
|
|
(128,280)
|
Net cash provided by
operating activities
|
|
93,707
|
|
32,967
|
|
94,042
|
|
16,254
|
Capital expenditures,
net of asset sales
|
|
(59,326)
|
|
(67,818)
|
|
(121,133)
|
|
(124,153)
|
Free cash
flow
|
|
$
34,381
|
|
$ (34,851)
|
|
$ (27,091)
|
|
$
(107,899)
|
Contact:
Andy
Larkin
VP, Investor Relations
andy.larkin@summit-materials.com
720-618-6013
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SOURCE Summit Materials, Inc.