Establishes Summit Records for Revenue and
Profitability
Sets Elevate Summit highs for ROIC and
Adjusted EBITDA Margin
Raises 2023 Guidance
DENVER, Nov. 1, 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 third quarter ended September 30, 2023. All comparisons are versus
the quarter-ended October 1, 2022
unless noted otherwise.
|
|
Three months
ended
|
($ in thousands, except
per share amounts)
|
|
September 30,
2023
|
|
October 1,
2022
|
|
% Chg vs.
PY
|
Net revenue
|
|
$ 741,960
|
|
$ 686,009
|
|
8.2 %
|
Operating
income
|
|
127,983
|
|
127,062
|
|
0.7 %
|
Net income
|
|
232,725
|
|
87,651
|
|
165.5 %
|
Basic EPS
|
|
$
1.93
|
|
$
0.72
|
|
168.1 %
|
|
|
|
|
|
|
|
Adjusted Cash Gross
Profit
|
|
251,638
|
|
217,811
|
|
15.5 %
|
Adjusted
EBITDA
|
|
208,519
|
|
184,888
|
|
12.8 %
|
Adjusted Diluted
EPS
|
|
$
0.81
|
|
$
0.70
|
|
15.7 %
|
"Once again I'm pleased to report we delivered record financial
results this quarter as our sharp executional focus along with
a more powerful, materials-led portfolio drove significant growth
across the P&L," commented Anne
Noonan, Summit Materials President and CEO. Year-to-date
performance and enduring pricing trends allows us to again increase
our 2023 Adjusted EBITDA guidance and carry strong momentum into
2024. Our dedicated teams throughout our footprint deserve the
credit for powering Elevate Summit highs for Adjusted EBITDA margin
and Return on Invested Capital. It's their commitment, together
with our strategic direction that gives us confidence that Summit
is well positioned to better seize the opportunities ahead of
us.
"We look forward to our announced combination with Argos
USA, which accelerates our
materials-led strategy, enhances our scale and reach in cement, and
bolsters our cash flow generation to fuel further
Aggregates-oriented organic and inorganic growth opportunities.
Importantly, we have cleared HSR review and are now on pace to
close the transaction before the end of the first quarter of next
year. When completed, we will be better positioned to capitalize on
strong and durable demand tailwinds while leveraging proven
expertise to materially upgrade profitability through synergy
generation. With enhanced capabilities, world-class talent, and a
strong balance sheet, Summit is well positioned to deliver superior
growth and value creation to all of our shareholders."
2023 Guidance
For the full year 2023, Summit is increasing the low end of its
Adjusted EBITDA guidance range to approximately $560 from $550
previously. The revised outlook is now for $560 million to $570
million in Adjusted EBITDA for the full year 2023. Summit
maintains its outlook for 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.
Third Quarter 2023 | Total Company Results
Net revenue increased $56.0 million, or 8.2% in the
third quarter to $742.0 million, as
increases in average sales prices across all lines of business more
than offset lower volumes.
Operating income increased $0.9 million, or 0.7% in the third quarter to
$128.0 million, driven by increases
in average sales price that more than offset a combination of
inflationary increases in cost of revenue, higher general and
administrative expenses, and increased transaction costs versus the
prior year period. Summit's operating margin percentage for the
three months ended September 30, 2023
decreased to 17.2% from 18.5%, from the comparable period a year
ago primarily reflecting the aforementioned transaction costs
related to the Argos USA
transaction.
Net income attributable to Summit Inc. increased to
$230.0 million, or $1.93 per basic share, compared to $86.5 million, or $0.72 per basic share in the comparable prior
year period due primarily to recognizing a tax receivable benefit
of $153.1 million in connection with
Summit's agreement to acquire all the rights and interest in the
TRA from affiliates of Blackstone Inc. and other TRA holders.
Excluding this gain as well as other customary adjustments, Summit
reported adjusted diluted net income of $97.5 million, or $0.81 per adjusted diluted share, up from
$84.2 million, or $0.70 per adjusted diluted share in the prior
year period.
Adjusted EBITDA increased $23.6 million, or 12.8% to $208.5 million primarily reflecting strong
pricing across all lines of business.
Third Quarter 2023 | Results by Line of
Business
Aggregates Business: Aggregates net revenues
increased by $16.3 million to
$179.8 million in the third quarter.
Aggregates adjusted cash gross profit margin was 59.0% in the third
quarter as compared to 53.3% in the prior year period. Aggregates
sales volume decreased 3.8% in the third quarter despite a positive
impact from acquisitions. Due primarily to reduced residential
activity, organic aggregates sales volumes declined 7.5% as lower
volumes in British Columbia,
Kansas, and Missouri more than offset organic aggregates
volume growth in Virginia and
North Texas. Average selling
prices for aggregates increased 14.4%, maintaining strong levels
and reflecting the cumulative effects of multiple pricing actions
implemented in 2023.
Cement Business: Cement Segment net revenues
increased 1.2% to $121.3 million in
the third quarter. Cement Segment adjusted cash gross profit margin
increased to 46.3% in the third quarter, compared to 42.5% in the
prior year period as strong pricing gains combined with increased
product mix of internally produced cement to more than offset
inflationary cost conditions. Sales volume of cement decreased
11.3% reflecting, in part, a lower proportion of import volume
relative to the prior year as well as wet condition in many
northern markets. Average selling prices increased 13.9% in the
third quarter due to the compounding effects of pricing actions
implemented in January and July of 2023.
Products Business: Products net revenues were
$346.8 million in the third quarter,
up 11.5% versus the prior year period. Products adjusted cash gross
profit margin increased to 20.0% in the third quarter primarily
driven by asphalt margin expansion. Organic average sales price for
ready-mix concrete increased 8.1% driven by pricing growth across
all markets, including our key markets of Houston and Salt
Lake City. Organic sales volumes of ready-mix concrete
decreased 12.2% due to reduced residential activity. Organic
average selling prices for asphalt increased 14.3%, due to pricing
gains in North Texas and the
Intermountain West. Organic asphalt sales volume increased 2.5%
fueled by public infrastructure growth.
Third Quarter 2023 | Results By Reporting
Segment
West Segment: The West Segment operating income
increased $16.5 million to
$89.6 million and Adjusted EBITDA of
$117.8 million in the third quarter
increased 19.9% versus the prior year period. Aggregates revenue
increased 11.8% as 14.7% organic pricing growth was partially
offset by 6.6% organic volume declines. Pricing growth was
strongest in Houston, Intermountain West, and British Columbia. Ready-mix concrete revenue
increased 16.1% as 7.8% organic pricing growth was only partially
offset by lower organic volumes. Asphalt revenue increased 25.0%
due to organic pricing growth of 15.9% including double-digit
growth in North Texas and the
Intermountain West. Asphalt organic volumes increased 3.7% versus
the prior year period.
East Segment: The East Segment operating income of
$34.2 million increased 20.2% versus
the prior year period and Adjusted EBITDA increased 13.5% to
$50.1 million, despite the impact of
divestitures and reflecting constructive pricing conditions across
Summit's markets. Aggregates revenue increased 8.4% versus the
prior year period. Organic aggregates volumes decreased 8.4% as
growth in Virginia and the
Carolinas was more than offset by lower volumes in Kansas and Missouri. Aggregates pricing increased 13.7%
with solid growth across markets. Ready-mix concrete revenue
decreased 7.9% with selling price growth of 9.5% more than offset
by lower volumes. Due primarily to divestitures, asphalt revenue
decreased to $7.8 million.
Cement Segment: The Cement Segment operating income
increased 7.9% to $38.3 million.
Adjusted EBITDA increased $3.8
million as revenue growth and favorable product mix combined
to more than offset inflationary conditions. As noted above, in the
third quarter, the Cement Segment reported a volume decreased of
11.3% and average selling price growth of 13.9%.
Liquidity and Capital Resources
As of September 30, 2023, the
Company had $197.5 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 cash used for payments related to
the purchase of certain TRA interests.
For the quarter ended September 30,
2023, cash flow provided by operations was $243.6 million and cash paid for capital
expenditures was $182.2 million.
As of September 30, 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,
November 2, 2023, at 11:00 a.m. eastern
time (9:00 a.m. mountain time)
to review the Company's third 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 third 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/991348107.
To participate in the live teleconference for third 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 November 9,
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,
- the impact of the COVID-19 pandemic and responses to it,
including vaccine mandates, or any similar crisis, on our
activities; and
- material or adverse effects related to the pending Argos
USA combination.
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
|
|
Nine months
ended
|
|
|
September
30,
|
|
October
1,
|
|
September
30,
|
|
October
1,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
641,778
|
|
$
587,138
|
|
$
1,609,664
|
|
$
1,485,746
|
Service
|
|
100,182
|
|
98,871
|
|
219,939
|
|
224,676
|
Net revenue
|
|
741,960
|
|
686,009
|
|
1,829,603
|
|
1,710,422
|
Delivery and
subcontract revenue
|
|
52,837
|
|
66,738
|
|
129,732
|
|
149,826
|
Total
revenue
|
|
794,797
|
|
752,747
|
|
1,959,335
|
|
1,860,248
|
Cost of revenue
(excluding items shown separately below):
|
|
|
|
|
|
|
|
|
Product
|
|
412,784
|
|
392,187
|
|
1,086,299
|
|
1,042,888
|
Service
|
|
77,538
|
|
76,011
|
|
173,568
|
|
179,807
|
Net cost of
revenue
|
|
490,322
|
|
468,198
|
|
1,259,867
|
|
1,222,695
|
Delivery and
subcontract cost
|
|
52,837
|
|
66,738
|
|
129,732
|
|
149,826
|
Total cost of
revenue
|
|
543,159
|
|
534,936
|
|
1,389,599
|
|
1,372,521
|
General and
administrative expenses
|
|
50,895
|
|
39,232
|
|
150,731
|
|
136,897
|
Depreciation,
depletion, amortization and accretion
|
|
57,452
|
|
52,133
|
|
163,133
|
|
150,483
|
Transaction
costs
|
|
17,442
|
|
727
|
|
19,518
|
|
2,637
|
Gain on sale of
property, plant and equipment
|
|
(2,134)
|
|
(1,343)
|
|
(5,787)
|
|
(6,293)
|
Operating
income
|
|
127,983
|
|
127,062
|
|
242,141
|
|
204,003
|
Interest
expense
|
|
28,013
|
|
21,980
|
|
83,335
|
|
62,728
|
Loss on debt
financings
|
|
—
|
|
—
|
|
493
|
|
—
|
Tax receivable
agreement (benefit) expense
|
|
(153,080)
|
|
—
|
|
(153,080)
|
|
954
|
Gain on sale of
businesses
|
|
—
|
|
(4,115)
|
|
—
|
|
(174,373)
|
Other income,
net
|
|
(3,583)
|
|
(3,283)
|
|
(14,771)
|
|
(4,956)
|
Income from operations
before taxes
|
|
256,633
|
|
112,480
|
|
326,164
|
|
319,650
|
Income tax
expense
|
|
23,908
|
|
24,829
|
|
39,923
|
|
74,033
|
Net income
|
|
232,725
|
|
87,651
|
|
286,241
|
|
245,617
|
Net income attributable
to Summit Holdings (1)
|
|
2,680
|
|
1,162
|
|
3,363
|
|
3,307
|
Net income
attributable to Summit Inc.
|
|
$
230,045
|
|
$
86,489
|
|
$
282,878
|
|
$
242,310
|
Earnings per share of
Class A common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.93
|
|
$
0.72
|
|
$
2.38
|
|
$
2.01
|
Diluted
|
|
$
1.92
|
|
$
0.72
|
|
$
2.37
|
|
$
2.00
|
Weighted average shares
of Class A common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
119,013,331
|
|
119,896,272
|
|
118,874,967
|
|
120,345,015
|
Diluted
|
|
119,725,693
|
|
120,383,312
|
|
119,558,974
|
|
121,078,150
|
________________________________________________________
|
(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)
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
|
(unaudited)
|
|
(audited)
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 197,475
|
|
$ 520,451
|
Accounts receivable,
net
|
|
375,929
|
|
256,669
|
Costs and estimated
earnings in excess of billings
|
|
40,985
|
|
6,510
|
Inventories
|
|
243,136
|
|
212,491
|
Other current
assets
|
|
17,976
|
|
20,787
|
Current assets held
for sale
|
|
1,702
|
|
1,468
|
Total current
assets
|
|
877,203
|
|
1,018,376
|
Property, plant and
equipment, less accumulated depreciation, depletion and
amortization
(September 30, 2023 - $1,387,348 and December 31,
2022 - $1,267,557)
|
|
1,974,532
|
|
1,813,702
|
Goodwill
|
|
1,241,472
|
|
1,132,546
|
Intangible assets, less
accumulated amortization (September 30, 2023 - $18,115
and
December 31, 2022 - $15,503)
|
|
68,814
|
|
71,384
|
Deferred tax assets,
less valuation allowance (September 30, 2023 - $1,113 and
December 31,
2022 - $1,113)
|
|
113,362
|
|
136,986
|
Operating lease
right-of-use assets
|
|
38,380
|
|
37,889
|
Other assets
|
|
51,201
|
|
44,809
|
Total
assets
|
|
$ 4,364,964
|
|
$ 4,255,692
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
debt
|
|
$
3,822
|
|
$
5,096
|
Current portion of
acquisition-related liabilities
|
|
7,028
|
|
13,718
|
Accounts
payable
|
|
173,127
|
|
104,031
|
Accrued
expenses
|
|
147,619
|
|
119,967
|
Current operating
lease liabilities
|
|
8,745
|
|
7,296
|
Billings in excess of
costs and estimated earnings
|
|
8,539
|
|
5,739
|
Total current
liabilities
|
|
348,880
|
|
255,847
|
Long-term
debt
|
|
1,488,069
|
|
1,488,569
|
Acquisition-related
liabilities
|
|
27,633
|
|
29,051
|
Tax receivable
agreement liability
|
|
52,143
|
|
327,812
|
Noncurrent operating
lease liabilities
|
|
34,838
|
|
35,737
|
Other noncurrent
liabilities
|
|
105,668
|
|
106,686
|
Total
liabilities
|
|
2,057,231
|
|
2,243,702
|
Stockholders'
equity:
|
|
|
|
|
Class A common stock,
par value $0.01 per share; 1,000,000,000 shares authorized,
119,112,950 and 118,408,655 shares issued and outstanding as of
September 30, 2023 and
December 31, 2022, respectively
|
|
1,192
|
|
1,185
|
Class B common stock,
par value $0.01 per share; 250,000,000 shares authorized, 99
shares
issued and outstanding as of September 30, 2023 and
December 31, 2022
|
|
—
|
|
—
|
Additional paid-in
capital
|
|
1,415,320
|
|
1,404,122
|
Accumulated
earnings
|
|
873,773
|
|
590,895
|
Accumulated other
comprehensive income
|
|
3,296
|
|
3,084
|
Stockholders'
equity
|
|
2,293,581
|
|
1,999,286
|
Noncontrolling
interest in Summit Holdings
|
|
14,152
|
|
12,704
|
Total stockholders'
equity
|
|
2,307,733
|
|
2,011,990
|
Total liabilities and
stockholders' equity
|
|
$ 4,364,964
|
|
$ 4,255,692
|
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
Unaudited Consolidated
Statements of Cash Flows
($ in
thousands)
|
|
|
|
Nine months
ended
|
|
|
September
30,
|
|
October
1,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$ 286,241
|
|
$ 245,617
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation,
depletion, amortization and accretion
|
|
168,758
|
|
160,162
|
Share-based
compensation expense
|
|
15,116
|
|
15,058
|
Net gain on asset and
business disposals
|
|
(5,790)
|
|
(180,240)
|
Non-cash loss on debt
financings
|
|
161
|
|
—
|
Change in deferred tax
asset, net
|
|
23,540
|
|
58,318
|
Other
|
|
(105)
|
|
(396)
|
Decrease (increase) in
operating assets, net of acquisitions and dispositions:
|
|
|
|
|
Accounts receivable,
net
|
|
(107,349)
|
|
(96,724)
|
Inventories
|
|
(23,935)
|
|
(53,762)
|
Costs and estimated
earnings in excess of billings
|
|
(34,463)
|
|
(32,042)
|
Other current
assets
|
|
4,438
|
|
(6,961)
|
Other
assets
|
|
2,208
|
|
3,432
|
(Decrease) increase in
operating liabilities, net of acquisitions and
dispositions:
|
|
|
|
|
Accounts
payable
|
|
48,524
|
|
44,510
|
Accrued
expenses
|
|
19,034
|
|
(21,780)
|
Billings in excess of
costs and estimated earnings
|
|
2,812
|
|
646
|
Tax receivable
agreement benefit
|
|
(153,080)
|
|
954
|
Other
liabilities
|
|
(2,486)
|
|
(4,601)
|
Net cash provided by
operating activities
|
|
243,624
|
|
132,191
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisitions, net of
cash acquired
|
|
(239,508)
|
|
(1,933)
|
Purchases of property,
plant and equipment
|
|
(182,182)
|
|
(189,008)
|
Proceeds from the sale
of property, plant and equipment
|
|
9,760
|
|
8,298
|
Proceeds from sale of
businesses
|
|
—
|
|
373,790
|
Other
|
|
(3,602)
|
|
(2,214)
|
Net cash (used in)
provided by investing activities
|
|
(415,532)
|
|
188,933
|
Cash flows from
financing activities:
|
|
|
|
|
Debt issuance
costs
|
|
(1,566)
|
|
—
|
Payments on
debt
|
|
(8,520)
|
|
(113,769)
|
Purchase of tax
receivable agreement interests
|
|
(122,935)
|
|
—
|
Payments on
acquisition-related liabilities
|
|
(12,203)
|
|
(12,964)
|
Distributions from
partnership
|
|
(60)
|
|
(399)
|
Repurchases of common
stock
|
|
—
|
|
(100,980)
|
Proceeds from stock
option exercises
|
|
112
|
|
199
|
Other
|
|
(6,011)
|
|
(774)
|
Net cash used in
financing activities
|
|
(151,183)
|
|
(228,687)
|
Impact of foreign
currency on cash
|
|
115
|
|
(1,732)
|
Net (decrease)
increase in cash
|
|
(322,976)
|
|
90,705
|
Cash and cash
equivalents—beginning of period
|
|
520,451
|
|
380,961
|
Cash and cash
equivalents—end of period
|
|
$ 197,475
|
|
$ 471,666
|
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
Unaudited Revenue Data
by Segment and Line of Business
($ in
thousands)
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
October
1,
|
|
September
30,
|
|
October
1,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Segment Net
Revenue:
|
|
|
|
|
|
|
|
|
West
|
|
$
461,094
|
|
$
394,648
|
|
$
1,095,502
|
|
$
983,160
|
East
|
|
159,547
|
|
171,446
|
|
446,790
|
|
467,471
|
Cement
|
|
121,319
|
|
119,915
|
|
287,311
|
|
259,791
|
Net Revenue
|
|
$
741,960
|
|
$
686,009
|
|
$
1,829,603
|
|
$
1,710,422
|
|
|
|
|
|
|
|
|
|
Line of Business - Net
Revenue:
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$
179,819
|
|
$
163,524
|
|
$
505,984
|
|
$
448,397
|
Cement (1)
|
|
115,135
|
|
112,489
|
|
267,755
|
|
241,858
|
Products
|
|
346,824
|
|
311,125
|
|
835,925
|
|
795,491
|
Total Materials and
Products
|
|
641,778
|
|
587,138
|
|
1,609,664
|
|
1,485,746
|
Services
|
|
100,182
|
|
98,871
|
|
219,939
|
|
224,676
|
Net Revenue
|
|
$
741,960
|
|
$
686,009
|
|
$
1,829,603
|
|
$
1,710,422
|
|
|
|
|
|
|
|
|
|
Line of Business - Net
Cost of Revenue:
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$ 73,733
|
|
$ 76,369
|
|
$
251,781
|
|
$
229,767
|
Cement
|
|
58,997
|
|
61,519
|
|
147,400
|
|
146,327
|
Products
|
|
277,498
|
|
250,591
|
|
678,593
|
|
659,342
|
Total Materials and
Products
|
|
410,228
|
|
388,479
|
|
1,077,774
|
|
1,035,436
|
Services
|
|
80,094
|
|
79,719
|
|
182,093
|
|
187,259
|
Net Cost of
Revenue
|
|
$
490,322
|
|
$
468,198
|
|
$
1,259,867
|
|
$
1,222,695
|
|
|
|
|
|
|
|
|
|
Line of Business -
Adjusted Cash Gross Profit (2):
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$
106,086
|
|
$ 87,155
|
|
$
254,203
|
|
$
218,630
|
Cement (3)
|
|
56,138
|
|
50,970
|
|
120,355
|
|
95,531
|
Products
|
|
69,326
|
|
60,534
|
|
157,332
|
|
136,149
|
Total Materials and
Products
|
|
231,550
|
|
198,659
|
|
531,890
|
|
450,310
|
Services
|
|
20,088
|
|
19,152
|
|
37,846
|
|
37,417
|
Adjusted Cash Gross
Profit
|
|
$
251,638
|
|
$
217,811
|
|
$
569,736
|
|
$
487,727
|
|
|
|
|
|
|
|
|
|
Adjusted Cash Gross
Profit Margin (2)
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
59.0 %
|
|
53.3 %
|
|
50.2 %
|
|
48.8 %
|
Cement (3)
|
|
46.3 %
|
|
42.5 %
|
|
41.9 %
|
|
36.8 %
|
Products
|
|
20.0 %
|
|
19.5 %
|
|
18.8 %
|
|
17.1 %
|
Services
|
|
20.1 %
|
|
19.4 %
|
|
17.2 %
|
|
16.7 %
|
Total Adjusted Cash
Gross Profit Margin
|
|
33.9 %
|
|
31.8 %
|
|
31.1 %
|
|
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.
|
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
Unaudited Volume and
Price Statistics
(Units in
thousands)
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
Total
Volume
|
|
September 30,
2023
|
|
October 1,
2022
|
|
September 30,
2023
|
|
October 1,
2022
|
Aggregates
(tons)
|
|
15,654
|
|
16,267
|
|
44,622
|
|
46,489
|
Cement
(tons)
|
|
746
|
|
841
|
|
1,787
|
|
1,887
|
Ready-mix concrete
(cubic yards)
|
|
1,383
|
|
1,326
|
|
3,667
|
|
3,960
|
Asphalt
(tons)
|
|
1,385
|
|
1,459
|
|
2,805
|
|
3,041
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
Pricing
|
|
September 30,
2023
|
|
October 1,
2022
|
|
September 30,
2023
|
|
October 1,
2022
|
Aggregates (per
ton)
|
|
$ 14.28
|
|
$ 12.48
|
|
$
13.81
|
|
$
11.89
|
Cement (per
ton)
|
|
155.79
|
|
136.83
|
|
151.58
|
|
132.22
|
Ready-mix concrete
(per cubic yards)
|
|
154.39
|
|
142.66
|
|
150.66
|
|
133.87
|
Asphalt (per
ton)
|
|
85.20
|
|
73.26
|
|
84.36
|
|
71.74
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
Percentage Change
in
|
|
Percentage Change
in
|
Year over Year
Comparison
|
|
Volume
|
|
Pricing
|
|
Volume
|
|
Pricing
|
Aggregates (per
ton)
|
|
(3.8) %
|
|
14.4 %
|
|
(4.0) %
|
|
16.1 %
|
Cement (per
ton)
|
|
(11.3) %
|
|
13.9 %
|
|
(5.3) %
|
|
14.6 %
|
Ready-mix concrete
(per cubic yards)
|
|
4.3 %
|
|
8.2 %
|
|
(7.4) %
|
|
12.5 %
|
Asphalt (per
ton)
|
|
(5.1) %
|
|
16.3 %
|
|
(7.8) %
|
|
17.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
Percentage Change
in
|
|
Percentage Change
in
|
Year over Year
Comparison (Excluding acquisitions &
divestitures)
|
|
Volume
|
|
Pricing
|
|
Volume
|
|
Pricing
|
Aggregates (per
ton)
|
|
(7.5) %
|
|
13.6 %
|
|
(4.4) %
|
|
15.7 %
|
Cement (per
ton)
|
|
(11.3) %
|
|
13.9 %
|
|
(5.3) %
|
|
14.6 %
|
Ready-mix concrete
(per cubic yards)
|
|
(12.2) %
|
|
8.1 %
|
|
(13.9) %
|
|
12.1 %
|
Asphalt (per
ton)
|
|
2.5 %
|
|
14.3 %
|
|
5.5 %
|
|
15.1 %
|
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
September 30, 2023
|
|
|
|
|
|
|
Gross Revenue
|
|
Intercompany
|
|
Net
|
|
|
Volumes
|
|
Pricing
|
|
by Product
|
|
Elimination/Delivery
|
|
Revenue
|
Aggregates
|
|
15,654
|
|
$
14.28
|
|
$
223,593
|
|
$
(43,774)
|
|
$
179,819
|
Cement
|
|
746
|
|
155.79
|
|
116,285
|
|
(1,150)
|
|
115,135
|
Materials
|
|
|
|
|
|
$
339,878
|
|
$
(44,924)
|
|
$
294,954
|
Ready-mix
concrete
|
|
1,383
|
|
154.39
|
|
213,546
|
|
(221)
|
|
213,325
|
Asphalt
|
|
1,385
|
|
85.20
|
|
117,980
|
|
(85)
|
|
117,895
|
Other
Products
|
|
|
|
|
|
90,830
|
|
(75,226)
|
|
15,604
|
Products
|
|
|
|
|
|
$
422,356
|
|
$
(75,532)
|
|
$
346,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2023
|
|
|
|
|
|
|
Gross Revenue
|
|
Intercompany
|
|
Net
|
|
|
Volumes
|
|
Pricing
|
|
by Product
|
|
Elimination/Delivery
|
|
Revenue
|
Aggregates
|
|
44,622
|
|
$
13.81
|
|
$
616,257
|
|
$
(110,273)
|
|
$
505,984
|
Cement
|
|
1,787
|
|
151.58
|
|
270,916
|
|
(3,161)
|
|
267,755
|
Materials
|
|
|
|
|
|
$
887,173
|
|
$
(113,434)
|
|
$
773,739
|
Ready-mix
concrete
|
|
3,667
|
|
150.66
|
|
552,516
|
|
(843)
|
|
551,673
|
Asphalt
|
|
2,805
|
|
84.36
|
|
236,623
|
|
(284)
|
|
236,339
|
Other
Products
|
|
|
|
|
|
253,342
|
|
(205,429)
|
|
47,913
|
Products
|
|
|
|
|
|
$
1,042,481
|
|
$
(206,556)
|
|
$
835,925
|
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 nine months ended September 30, 2023 and October 1,
2022.
|
|
Reconciliation of Net Income to
Adjusted EBITDA
|
|
Three months ended
September 30, 2023
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 92,652
|
|
$
37,350
|
|
$ 43,347
|
|
$
59,376
|
|
$
232,725
|
Interest (income)
expense
|
|
(4,068)
|
|
(3,055)
|
|
(5,135)
|
|
40,271
|
|
28,013
|
Income tax
expense
|
|
1,644
|
|
—
|
|
—
|
|
22,264
|
|
23,908
|
Depreciation, depletion
and amortization
|
|
28,443
|
|
15,103
|
|
12,123
|
|
1,022
|
|
56,691
|
EBITDA
|
|
$
118,671
|
|
$
49,398
|
|
$ 50,335
|
|
$
122,933
|
|
$
341,337
|
Accretion
|
|
258
|
|
483
|
|
20
|
|
—
|
|
761
|
Tax receivable
agreement benefit
|
|
—
|
|
—
|
|
—
|
|
(153,080)
|
|
(153,080)
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
5,192
|
|
5,192
|
Argos USA acquisition
and integration costs
|
|
—
|
|
—
|
|
—
|
|
17,859
|
|
17,859
|
Other
|
|
(1,083)
|
|
208
|
|
—
|
|
(2,675)
|
|
(3,550)
|
Adjusted
EBITDA
|
|
$
117,846
|
|
$
50,089
|
|
$ 50,355
|
|
$
(9,771)
|
|
$
208,519
|
Adjusted EBITDA Margin
(1)
|
|
25.6 %
|
|
31.4 %
|
|
41.5 %
|
|
|
|
28.1 %
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Three months ended
October 1, 2022
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 76,350
|
|
$
30,225
|
|
$ 40,748
|
|
$ (59,672)
|
|
$ 87,651
|
Interest (income)
expense
|
|
(4,475)
|
|
(2,602)
|
|
(5,110)
|
|
34,167
|
|
21,980
|
Income tax
expense
|
|
1,384
|
|
—
|
|
—
|
|
23,445
|
|
24,829
|
Depreciation, depletion
and amortization
|
|
24,676
|
|
15,063
|
|
10,879
|
|
821
|
|
51,439
|
EBITDA
|
|
$ 97,935
|
|
$
42,686
|
|
$ 46,517
|
|
$
(1,239)
|
|
$
185,899
|
Accretion
|
|
232
|
|
382
|
|
80
|
|
—
|
|
694
|
Loss (gain) on sale of
businesses
|
|
—
|
|
1,005
|
|
—
|
|
(5,120)
|
|
(4,115)
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
4,902
|
|
4,902
|
Other
|
|
114
|
|
46
|
|
—
|
|
(2,652)
|
|
(2,492)
|
Adjusted
EBITDA
|
|
$ 98,281
|
|
$
44,119
|
|
$ 46,597
|
|
$
(4,109)
|
|
$
184,888
|
Adjusted EBITDA Margin
(1)
|
|
24.9 %
|
|
25.7 %
|
|
38.9 %
|
|
|
|
27.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Nine months ended
September 30, 2023
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
179,928
|
|
$
77,936
|
|
$ 88,193
|
|
$ (59,816)
|
|
$
286,241
|
Interest (income)
expense
|
|
(10,777)
|
|
(8,707)
|
|
(14,988)
|
|
117,807
|
|
83,335
|
Income tax
expense
|
|
3,861
|
|
—
|
|
—
|
|
36,062
|
|
39,923
|
Depreciation, depletion
and amortization
|
|
82,450
|
|
45,454
|
|
29,973
|
|
3,044
|
|
160,921
|
EBITDA
|
|
$
255,462
|
|
$
114,683
|
|
$
103,178
|
|
$
97,097
|
|
$
570,420
|
Accretion
|
|
768
|
|
1,385
|
|
59
|
|
—
|
|
2,212
|
Loss on debt
financings
|
|
—
|
|
—
|
|
—
|
|
493
|
|
493
|
Tax receivable
agreement benefit
|
|
—
|
|
—
|
|
—
|
|
(153,080)
|
|
(153,080)
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
15,116
|
|
15,116
|
Argos USA acquisition
and integration costs
|
|
—
|
|
—
|
|
—
|
|
17,859
|
|
17,859
|
Other
|
|
(1,189)
|
|
490
|
|
—
|
|
(10,856)
|
|
(11,555)
|
Adjusted
EBITDA
|
|
$
255,041
|
|
$
116,558
|
|
$
103,237
|
|
$ (33,371)
|
|
$
441,465
|
Adjusted EBITDA Margin
(1)
|
|
23.3 %
|
|
26.1 %
|
|
35.9 %
|
|
|
|
24.1 %
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Nine months ended
October 1, 2022
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
153,857
|
|
$
101,680
|
|
$ 70,958
|
|
$ (80,878)
|
|
$
245,617
|
Interest (income)
expense
|
|
(12,480)
|
|
(8,767)
|
|
(14,932)
|
|
98,907
|
|
62,728
|
Income tax expense
(benefit)
|
|
2,547
|
|
(106)
|
|
—
|
|
71,592
|
|
74,033
|
Depreciation, depletion
and amortization
|
|
70,803
|
|
47,470
|
|
27,760
|
|
2,340
|
|
148,373
|
EBITDA
|
|
$
214,727
|
|
$
140,277
|
|
$ 83,786
|
|
$
91,961
|
|
$
530,751
|
Accretion
|
|
692
|
|
1,185
|
|
233
|
|
—
|
|
2,110
|
Tax receivable
agreement expense
|
|
—
|
|
—
|
|
—
|
|
954
|
|
954
|
Gain on sale of
businesses
|
|
—
|
|
(42,652)
|
|
—
|
|
(131,721)
|
|
(174,373)
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
15,058
|
|
15,058
|
Other
|
|
198
|
|
139
|
|
—
|
|
(2,652)
|
|
(2,315)
|
Adjusted
EBITDA
|
|
$
215,617
|
|
$
98,949
|
|
$ 84,019
|
|
$ (26,400)
|
|
$
372,185
|
Adjusted EBITDA Margin
(1)
|
|
21.9 %
|
|
21.2 %
|
|
32.3 %
|
|
|
|
21.8 %
|
________________________________________________
|
(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 nine months
ended September 30, 2023 and October 1, 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
|
|
Nine months
ended
|
|
|
September 30,
2023
|
|
October 1,
2022
|
|
September 30,
2023
|
|
October 1,
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.
|
|
$
230,045
|
|
$
1.91
|
|
$ 86,489
|
|
$
0.71
|
|
$
282,878
|
|
$
2.36
|
|
$
242,310
|
|
$
1.99
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
2,680
|
|
0.02
|
|
1,162
|
|
0.01
|
|
3,363
|
|
0.03
|
|
3,307
|
|
0.03
|
Argos USA acquisition
and integration costs
|
|
17,859
|
|
0.15
|
|
—
|
|
—
|
|
17,859
|
|
0.15
|
|
—
|
|
—
|
Gain on sale of
businesses, net of tax
|
|
—
|
|
—
|
|
(3,406)
|
|
(0.02)
|
|
—
|
|
—
|
|
(130,975)
|
|
(1.08)
|
Loss on debt
financings
|
|
—
|
|
—
|
|
—
|
|
—
|
|
493
|
|
—
|
|
—
|
|
—
|
Adjusted diluted net
income before tax related adjustments
|
|
250,584
|
|
2.08
|
|
84,245
|
|
0.70
|
|
304,593
|
|
2.54
|
|
114,642
|
|
0.94
|
Tax receivable
agreement (benefit) expense
|
|
(153,080)
|
|
(1.27)
|
|
—
|
|
—
|
|
(153,080)
|
|
(1.28)
|
|
954
|
|
0.01
|
Adjusted diluted net
income
|
|
$ 97,504
|
|
$
0.81
|
|
$ 84,245
|
|
$
0.70
|
|
$
151,513
|
|
$
1.26
|
|
$
115,596
|
|
$
0.95
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Class A common
stock
|
|
118,928,799
|
|
|
|
119,753,806
|
|
|
|
118,780,523
|
|
|
|
120,196,211
|
|
|
LP Units
outstanding
|
|
1,303,990
|
|
|
|
1,312,797
|
|
|
|
1,308,417
|
|
|
|
1,313,603
|
|
|
Total equity
units
|
|
120,232,789
|
|
|
|
121,066,603
|
|
|
|
120,088,940
|
|
|
|
121,509,814
|
|
|
The following table
reconciles operating income to Adjusted Cash Gross Profit and
Adjusted Cash Gross Profit Margin for the three and nine months
ended September 30, 2023 and October 1,
2022.
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
October
1,
|
|
September
30,
|
|
October
1,
|
Reconciliation of Operating Income
to Adjusted Cash Gross Profit
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
($
in thousands)
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
127,983
|
|
$
127,062
|
|
$
242,141
|
|
$
204,003
|
General and
administrative expenses
|
|
50,895
|
|
39,232
|
|
150,731
|
|
136,897
|
Depreciation,
depletion, amortization and accretion
|
|
57,452
|
|
52,133
|
|
163,133
|
|
150,483
|
Transaction
costs
|
|
17,442
|
|
727
|
|
19,518
|
|
2,637
|
Gain on sale of
property, plant and equipment
|
|
(2,134)
|
|
(1,343)
|
|
(5,787)
|
|
(6,293)
|
Adjusted Cash Gross
Profit (exclusive of items shown separately)
|
|
$
251,638
|
|
$
217,811
|
|
$
569,736
|
|
$
487,727
|
Adjusted Cash Gross
Profit Margin (exclusive of items shown separately) (1)
|
|
33.9 %
|
|
31.8 %
|
|
31.1 %
|
|
28.5 %
|
_______________________________________________________
|
(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 nine months ended September 30, 2023 and
October 1, 2022.
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
October
1,
|
|
September
30,
|
|
October
1,
|
($
in thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
|
$ 232,725
|
|
$
87,651
|
|
$ 286,241
|
|
$ 245,617
|
Non-cash
items
|
|
75,262
|
|
66,334
|
|
201,680
|
|
52,902
|
Net income adjusted
for non-cash items
|
|
307,987
|
|
153,985
|
|
487,921
|
|
298,519
|
Change in working
capital accounts
|
|
(158,405)
|
|
(38,048)
|
|
(244,297)
|
|
(166,328)
|
Net cash provided by
operating activities
|
|
149,582
|
|
115,937
|
|
243,624
|
|
132,191
|
Capital expenditures,
net of asset sales
|
|
(51,289)
|
|
(56,557)
|
|
(172,422)
|
|
(180,710)
|
Free cash
flow
|
|
$
98,293
|
|
$
59,380
|
|
$
71,202
|
|
$ (48,519)
|
Contact:
Andy Larkin
VP, Investor Relations
andy.larkin@summit-materials.com
720-618-6013
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SOURCE Summit Materials, Inc.