Pricing Momentum Continues
Sets ELEVATE Summit Record for Quality of
Earnings
Refining 2024 Guidance
DENVER, Oct. 30,
2024 /PRNewswire/ -- Summit Materials, Inc.
(NYSE: SUM) ("Summit," "Summit Materials," "Summit Inc." or the
"Company"), a market-leading producer of aggregates and cement
company, today announced results for the third quarter ended
September 28, 2024. All comparisons
are versus the quarter ended September 30,
2023 unless noted otherwise.
|
|
Three months
ended
|
|
($ in thousands, except
per share amounts)
|
|
September 28,
2024
|
|
September 30,
2023
|
|
% Chg vs.
PY
|
|
Net revenue
|
|
$ 1,111,846
|
|
$ 741,960
|
|
49.9 %
|
|
Operating
income
|
|
194,651
|
|
127,983
|
|
52.1 %
|
|
Net income
|
|
105,178
|
|
232,725
|
|
(54.8) %
|
|
Basic EPS
|
|
$
0.60
|
|
$
1.93
|
|
(68.9) %
|
|
|
|
|
|
|
|
|
Adjusted Cash Gross
Profit
|
|
382,827
|
|
251,638
|
|
52.1 %
|
|
Adjusted
EBITDA
|
|
314,672
|
|
208,519
|
|
50.9 %
|
|
Adjusted Diluted
EPS
|
|
$
0.75
|
|
$
0.81
|
|
(7.4) %
|
"Our materials-led portfolio delivered another resilient quarter
of financial results, even amid significant rainfall and severe
weather events that impacted many of our key markets," commented
Anne Noonan, Summit Materials
President and CEO. "I'm incredibly proud of our teams that
responded safely and with agility to produce an Elevate-era record
for EBITDA margins and take valuable steps towards achieving our
strategic agenda. Today, due to volumes below prior expectations
and including valuable self-help offsets, we are refining the
mid-point of our full year guide to $985
million. Concurrently and thanks to strong execution, we are
increasing our Adjusted EBITDA margin expectations to at least 24%
in 2024. Without question, our Summit team has successfully
navigated a dynamic environment to strengthen our business, improve
our commercial and operational capabilities, and critically, build
momentum as we focus on the fourth quarter and our path forward in
2025."
Scott Anderson, Executive Vice
President and CFO of Summit Materials added, "Our capital
allocation strategy is designed to unlock growth in a disciplined,
returns-focused manner. With nearly $740 million in cash on
hand and a capable balance sheet, Summit is well-equipped to invest
in top growth prospects, both organic and inorganic, driving
long-term sustainable returns for our shareholders."
2024 Guidance
For the full year 2024, Summit is refining its Adjusted EBITDA
guidance to incorporate performance over the first nine months,
including the impact of unfavorable weather conditions. The Company
is now projecting Adjusted EBITDA of approximately $970 million to $1
billion. Summit also currently projects 2024 capital
expenditures of approximately $390
million to $410 million.
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 2024 | Total Company Results
Net revenue increased $369.9 million, or 49.9%, in
the third quarter to $1,111.8
million. In the quarter, $403.4
million of net revenue was due to acquisitions, primarily
the Argos USA transaction.
Divestitures decreased net revenue by $43.6
million in the period. All lines of business experienced
organic pricing growth.
Operating income increased in the third quarter by
52.1% to $194.7 million largely
due to the Argos USA transaction.
Summit's operating margin percentage for the three months ended
September 28, 2024, increased to
17.5% from 17.2%.
Net income attributable to Summit Inc. decreased to
$105.2 million, or $0.60 per basic share, compared to $230.0 million, or $1.93 per basic share in the prior year period.
The decrease is due primarily to the tax receivable benefit
recognized in the third quarter of 2023 of $153.1 million. Summit reported adjusted diluted
net income of $131.2 million, or
$0.75 per adjusted diluted share,
compared to an adjusted diluted net income of $97.5 million, or $0.81 per adjusted diluted share, in the prior
year period.
Adjusted EBITDA increased $106.2 million, or 50.9%, to $314.7 million reflecting the contribution from
the Argos USA assets, continued
pricing gains, and operational improvements across the enterprise,
including integration synergies.
Third Quarter 2024 | Results by Line of
Business
Aggregates Business: Aggregates net revenues
increased by $12.5 million to
$192.3 million in the third quarter.
Aggregates adjusted cash gross profit margin decreased to 58.5% in
the third quarter as compared to 59.0% in the prior year period.
Aggregates sales volume decreased 1.8% in the third quarter as a
result of divestitures. Organic aggregates sales volumes increased
0.7% primarily driven by Utah,
British Columbia, and the
Carolinas. Average selling prices for aggregates increased 7.4%,
with organic pricing growth of 6.9%. Pricing growth was strong
throughout the footprint and led by the East Segment, which
increased 8.3% versus the prior year period.
Cement Business: Cement Segment net revenues
increased to $323.2 million in the
third quarter. Cement Segment adjusted cash gross profit margin
increased to 47.2% in the third quarter, compared to 46.3% in the
prior year period. Sales volume of cement increased 203.1% while
organic sales volumes decreased 11.3% due to a combination of
adverse weather conditions and moderating demand leading to, in
part, lower imported volumes versus the prior year period. Organic
average selling prices increased 3.9% in the third quarter,
primarily reflecting increases implemented earlier in the
year.
Products Business: Products net revenues were
$516.4 million in the third quarter,
up 48.9% versus the prior year period. Products adjusted cash gross
profit margin decreased to 17.8% in the third quarter. Organic
average sales price for ready-mix concrete increased 5.5%, with
pricing growth in both segments. Organic sales volumes of ready-mix
concrete decreased 10.0% due to unfavorable weather conditions and
subdued private end-market activity. Organic average selling prices
for asphalt increased 4.5%. Organic sales volume increased 0.4%,
driven by growth in North Texas.
Third Quarter 2024 | Results By Reporting
Segment
West Segment: The West Segment operating income
increased $6.2 million to
$95.8 million. Adjusted EBITDA
increased $10.5 million, or
8.9%, to $128.4 million in the third
quarter. Aggregates revenue increased 1.5%, driven by continued
pricing growth. Pricing grew 6.2% over the prior period led by
double-digit growth in certain Texas markets, as well as Arizona. Ready-mix concrete revenue increased
10.6% on 3.3% pricing growth and 7.1% volume growth. Organic
ready-mix pricing increased 5.4%. Restrained private construction
activity and weather headwinds drove organic ready-mix volumes down
10.4% in the period. Asphalt revenue increased 4.9% reflecting a
volume increase of 0.4% and pricing growth of 4.5%.
East Segment: The East Segment operating income
increased $16.5 million to
$50.7 million and Adjusted EBITDA
increased $20.2 million to
$70.3 million. Aggregates revenue
increased 9.5% versus the prior year period. Organic Aggregates
volumes increased 1.1%, with the Carolinas and Missouri markets offsetting softness in
Kansas. Aggregates pricing
increased 8.3% with most markets realizing high single-digit or
double-digit growth. Ready-mix concrete revenue increased
$142.3 million to $165.4 million due to the acquisition of the
Argos USA ready-mix concrete
operations in Florida,
Georgia, and the Carolinas.
Asphalt revenue decreased $7.8
million versus the prior year period due to divestiture of
asphalt assets.
Cement Segment: The Cement Segment operating income
increased 142.5% to $92.8 million.
Adjusted EBITDA increased $89.7
million, primarily from the Argos USA transaction. Adjusted EBITDA margin
increased to 43.3% from 41.5%. As noted above, the Cement Segment
reported an organic volume decrease of 11.3% and organic selling
price growth of 3.9%.
Liquidity and Capital Resources
As of September 28, 2024, the
Company had $737.5 million in cash
and $2.8 billion in debt outstanding.
The Company's $625 million revolving
credit facility has $592.7 million available after outstanding
letters of credit.
For the nine months ended September
28, 2024, cash flow provided by operations was $344.2 million and cash paid for capital
expenditures was $275.1 million.
As of September 28, 2024,
approximately $149.0 million remained
available for share repurchases under the share repurchase
program.
Webcast and Conference Call Information
Summit Materials will conduct a conference call on Thursday,
October 31, 2024, at 11:00 a.m. eastern
time (9:00 a.m. mountain time)
to review the Company's third quarter 2024 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 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/353405932
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To participate in the
live teleconference for third quarter 2024 financial
results:
|
|
|
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North America
Toll-Free:
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1-888-330-3416
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International Toll:
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1-646-960-0820
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Conference ID:
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1542153
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Password:
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Summit
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To listen to a replay
of the teleconference, which will be available through November 7,
2024:
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US & Canada
Toll-Free:
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1-800-770-2030
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Conference ID:
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1542153
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About Summit Materials
Summit Materials is a market-leading producer of aggregates and
cement with vertically integrated operations that supply ready-mix
concrete and asphalt in select markets. Summit is a geographically
diverse, materials-led business of scale that offers customers in
the United States and British Columbia, Canada high quality products
and services for the public infrastructure, residential and
non-residential end markets. Summit has a strong track record of
successful acquisitions since its founding and continues to pursue
high-return 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 (Loss), 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 (Loss),
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, Adjusted EBITDA Margin and other
non-GAAP measures 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 (Loss), 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 30,
2023, and Quarterly Report on Form 10-Q for the fiscal
quarter ended March 30, 2024, each 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;
- risks related to the integration of Argos USA and realization of intended benefits
within the intended timeframe;
- our ability to execute on our acquisition strategy and
portfolio optimization strategy and, successfully integrate
acquisitions with our existing operations;
- our dependence on securing and permitting aggregate reserves in
strategically located areas;
- the impact of rising interest rates;
- 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 and safety 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;
- 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;
- potential incurrence of substantially more debt;
- restrictive covenants in the instruments governing our debt
obligations;
- our dependence on senior management and other key personnel,
and our ability to retain 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;
- evolving corporate governance and corporate disclosure
regulations and expectations, including with respect to
environmental, social and governance matters;
- unexpected operational failures or 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
- material or adverse effects related to the 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
28,
|
|
September
30,
|
|
September
28,
|
|
September
30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
1,013,646
|
|
$
641,778
|
|
$
2,736,081
|
|
$
1,609,664
|
|
Service
|
|
98,200
|
|
100,182
|
|
224,465
|
|
219,939
|
|
Net revenue
|
|
1,111,846
|
|
741,960
|
|
2,960,546
|
|
1,829,603
|
|
Delivery and
subcontract revenue
|
|
59,291
|
|
52,837
|
|
133,868
|
|
129,732
|
|
Total
revenue
|
|
1,171,137
|
|
794,797
|
|
3,094,414
|
|
1,959,335
|
|
Cost of revenue
(excluding items shown separately below):
|
|
|
|
|
|
|
|
|
|
Product
|
|
658,901
|
|
412,784
|
|
1,865,009
|
|
1,086,299
|
|
Service
|
|
70,118
|
|
77,538
|
|
163,453
|
|
173,568
|
|
Net cost of
revenue
|
|
729,019
|
|
490,322
|
|
2,028,462
|
|
1,259,867
|
|
Delivery and
subcontract cost
|
|
59,291
|
|
52,837
|
|
133,868
|
|
129,732
|
|
Total cost of
revenue
|
|
788,310
|
|
543,159
|
|
2,162,330
|
|
1,389,599
|
|
General and
administrative expenses
|
|
78,916
|
|
50,895
|
|
231,317
|
|
150,731
|
|
Depreciation,
depletion, amortization and accretion
|
|
99,159
|
|
57,452
|
|
299,527
|
|
163,133
|
|
Transaction and
integration costs
|
|
13,656
|
|
17,442
|
|
86,129
|
|
19,518
|
|
Gain on sale of
property, plant and equipment
|
|
(3,555)
|
|
(2,134)
|
|
(7,583)
|
|
(5,787)
|
|
Operating
income
|
|
194,651
|
|
127,983
|
|
322,694
|
|
242,141
|
|
Interest
expense
|
|
50,916
|
|
28,013
|
|
155,657
|
|
83,335
|
|
Loss on debt
financings
|
|
7,157
|
|
—
|
|
12,610
|
|
493
|
|
Tax receivable
agreement benefit
|
|
—
|
|
(153,080)
|
|
—
|
|
(153,080)
|
|
Loss (gain) on sale of
businesses
|
|
7,083
|
|
—
|
|
(11,660)
|
|
—
|
|
Other income,
net
|
|
(9,224)
|
|
(3,583)
|
|
(26,188)
|
|
(14,771)
|
|
Income from operations
before taxes
|
|
138,719
|
|
256,633
|
|
192,275
|
|
326,164
|
|
Income tax
expense
|
|
33,541
|
|
23,908
|
|
48,292
|
|
39,923
|
|
Net income
|
|
105,178
|
|
232,725
|
|
143,983
|
|
286,241
|
|
Net income attributable
to Summit Holdings (1)
|
|
—
|
|
2,680
|
|
(404)
|
|
3,363
|
|
Net income
attributable to Summit Inc.
|
|
$
105,178
|
|
$
230,045
|
|
$
144,387
|
|
$
282,878
|
|
Earnings per share of
Class A common stock:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.60
|
|
$
1.93
|
|
$
0.84
|
|
$
2.38
|
|
Diluted
|
|
$
0.60
|
|
$
1.92
|
|
$
0.83
|
|
$
2.37
|
|
Weighted average shares
of Class A common stock:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
175,635,388
|
|
119,013,331
|
|
172,899,150
|
|
118,874,967
|
|
Diluted
|
|
176,287,257
|
|
119,725,693
|
|
173,649,453
|
|
119,558,974
|
|
________________________________________________________
|
|
(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
28,
|
|
December
30,
|
|
|
2024
|
|
2023
|
|
|
(unaudited)
|
|
(audited)
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 737,541
|
|
$ 374,162
|
|
Restricted
cash
|
|
—
|
|
800,000
|
|
Accounts receivable,
net
|
|
570,917
|
|
287,252
|
|
Costs and estimated
earnings in excess of billings
|
|
35,263
|
|
10,289
|
|
Inventories
|
|
345,215
|
|
241,350
|
|
Other current
assets
|
|
24,964
|
|
17,937
|
|
Current assets held
for sale
|
|
1,495
|
|
1,134
|
|
Total current
assets
|
|
1,715,395
|
|
1,732,124
|
|
Property, plant and
equipment, less accumulated depreciation, depletion and
amortization (September 28, 2024 - $1,568,591 and December 30, 2023
- $1,399,468)
|
|
4,293,472
|
|
1,976,820
|
|
Goodwill
|
|
2,069,495
|
|
1,224,861
|
|
Intangible assets, less
accumulated amortization (September 28, 2024 - $50,670 and December
30, 2023 - $18,972)
|
|
157,269
|
|
68,081
|
|
Deferred tax assets,
less valuation allowance (September 28, 2024 - $1,113 and December
30, 2023 - $1,113)
|
|
—
|
|
52,009
|
|
Operating lease
right-of-use assets
|
|
83,012
|
|
36,553
|
|
Other assets
|
|
108,543
|
|
59,134
|
|
Total
assets
|
|
$ 8,427,186
|
|
$ 5,149,582
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current portion of
debt
|
|
$
10,100
|
|
$
3,822
|
|
Current portion of
acquisition-related liabilities
|
|
8,996
|
|
7,007
|
|
Accounts
payable
|
|
274,957
|
|
123,621
|
|
Accrued
expenses
|
|
226,310
|
|
171,691
|
|
Current operating
lease liabilities
|
|
17,134
|
|
8,596
|
|
Billings in excess of
costs and estimated earnings
|
|
15,334
|
|
8,228
|
|
Total current
liabilities
|
|
552,831
|
|
322,965
|
|
Long-term
debt
|
|
2,776,918
|
|
2,283,639
|
|
Acquisition-related
liabilities
|
|
21,230
|
|
28,021
|
|
Tax receivable
agreement liability
|
|
47,667
|
|
41,276
|
|
Deferred tax
liabilities
|
|
206,168
|
|
15,854
|
|
Noncurrent operating
lease liabilities
|
|
75,287
|
|
33,230
|
|
Other noncurrent
liabilities
|
|
300,459
|
|
108,017
|
|
Total
liabilities
|
|
3,980,560
|
|
2,833,002
|
|
Stockholders'
equity:
|
|
|
|
|
|
Class A common stock,
par value $0.01 per share; 1,000,000,000 shares authorized,
175,596,314 and 119,529,380 shares issued and outstanding as of
September 28, 2024 and December 30, 2023, respectively
|
|
1,757
|
|
1,196
|
|
Class B common stock,
par value $0.01 per share; 250,000,000 shares authorized, 0 and 99
shares issued and outstanding as of September 28, 2024 and December
30, 2023, respectively
|
|
—
|
|
—
|
|
Preferred Stock, par
value $0.01 per share; 250,000,000 shares authorized, 1 and 0
shares issued and outstanding as of September 28, 2024 and December
30, 2023, respectively
|
|
—
|
|
—
|
|
Additional paid-in
capital
|
|
3,419,477
|
|
1,421,813
|
|
Accumulated
earnings
|
|
1,021,138
|
|
876,751
|
|
Accumulated other
comprehensive income
|
|
4,254
|
|
7,275
|
|
Stockholders'
equity
|
|
4,446,626
|
|
2,307,035
|
|
Noncontrolling
interest in Summit Holdings
|
|
—
|
|
9,545
|
|
Total stockholders'
equity
|
|
4,446,626
|
|
2,316,580
|
|
Total liabilities and
stockholders' equity
|
|
$ 8,427,186
|
|
$ 5,149,582
|
|
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
Unaudited Consolidated
Statements of Cash Flows
($ in
thousands)
|
|
|
Nine months
ended
|
|
|
September
28,
|
|
September
30,
|
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
|
$ 143,983
|
|
$ 286,241
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation,
depletion, amortization and accretion
|
|
310,216
|
|
168,758
|
|
Share-based
compensation expense
|
|
20,862
|
|
15,116
|
|
Net gain on asset and
business disposals
|
|
(19,246)
|
|
(5,790)
|
|
Non-cash loss on debt
financings
|
|
12,439
|
|
161
|
|
Change in deferred tax
asset, net
|
|
31,055
|
|
23,540
|
|
Other
|
|
1,801
|
|
(105)
|
|
Decrease (increase) in
operating assets, net of acquisitions and dispositions:
|
|
|
|
|
|
Accounts receivable,
net
|
|
(129,153)
|
|
(107,349)
|
|
Inventories
|
|
(10,422)
|
|
(23,935)
|
|
Costs and estimated
earnings in excess of billings
|
|
(25,366)
|
|
(34,463)
|
|
Other current
assets
|
|
6,994
|
|
4,438
|
|
Other
assets
|
|
6,395
|
|
2,208
|
|
(Decrease) increase in
operating liabilities, net of acquisitions and
dispositions:
|
|
|
|
|
|
Accounts
payable
|
|
24,999
|
|
48,524
|
|
Accrued
expenses
|
|
(26,846)
|
|
19,034
|
|
Billings in excess of
costs and estimated earnings
|
|
7,541
|
|
2,812
|
|
Tax receivable
agreement (benefit) expense
|
|
6,227
|
|
(153,080)
|
|
Other
liabilities
|
|
(17,279)
|
|
(2,486)
|
|
Net cash provided by
operating activities
|
|
344,200
|
|
243,624
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Acquisitions, net of
cash acquired
|
|
(1,064,987)
|
|
(239,508)
|
|
Purchases of property,
plant and equipment
|
|
(275,137)
|
|
(182,182)
|
|
Purchase of
intellectual property
|
|
(21,400)
|
|
—
|
|
Proceeds from the sale
of property, plant and equipment
|
|
21,041
|
|
9,760
|
|
Proceeds from sale of
businesses
|
|
98,868
|
|
—
|
|
Other
|
|
(2,959)
|
|
(3,602)
|
|
Net cash used in
investing activities
|
|
(1,244,574)
|
|
(415,532)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from debt
issuances
|
|
1,007,475
|
|
—
|
|
Debt issuance
costs
|
|
(17,933)
|
|
(1,566)
|
|
Payments on
debt
|
|
(511,181)
|
|
(8,520)
|
|
Purchase of tax
receivable agreement interests
|
|
—
|
|
(122,935)
|
|
Payments on
acquisition-related liabilities
|
|
(6,938)
|
|
(12,203)
|
|
Distributions from
partnership
|
|
—
|
|
(60)
|
|
Proceeds from stock
option exercises
|
|
1,601
|
|
112
|
|
Other
|
|
(8,238)
|
|
(6,011)
|
|
Net cash provided by
(used in) financing activities
|
|
464,786
|
|
(151,183)
|
|
Impact of foreign
currency on cash
|
|
(1,033)
|
|
115
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
|
(436,621)
|
|
(322,976)
|
|
Cash and cash
equivalents and restricted cash—beginning of period
|
|
1,174,162
|
|
520,451
|
|
Cash and cash
equivalents and restricted cash—end of period
|
|
$ 737,541
|
|
$ 197,475
|
|
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
Unaudited Revenue Data
by Segment and Line of Business
($ in
thousands)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
28,
|
|
September
30,
|
|
September
28,
|
|
September
30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Segment Net
Revenue:
|
|
|
|
|
|
|
|
|
|
West
|
|
$
492,006
|
|
$
461,094
|
|
$
1,199,291
|
|
$
1,095,502
|
|
East
|
|
296,616
|
|
159,547
|
|
881,427
|
|
446,790
|
|
Cement
|
|
323,224
|
|
121,319
|
|
879,828
|
|
287,311
|
|
Net Revenue
|
|
$
1,111,846
|
|
$
741,960
|
|
$
2,960,546
|
|
$
1,829,603
|
|
|
|
|
|
|
|
|
|
|
Line of Business - Net
Revenue:
|
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$
192,312
|
|
$
179,819
|
|
$
524,923
|
|
$
505,984
|
|
Cement (1)
|
|
304,953
|
|
115,135
|
|
840,238
|
|
267,755
|
|
Products
|
|
516,381
|
|
346,824
|
|
1,370,920
|
|
835,925
|
|
Total Materials and
Products
|
|
1,013,646
|
|
641,778
|
|
2,736,081
|
|
1,609,664
|
|
Services
|
|
98,200
|
|
100,182
|
|
224,465
|
|
219,939
|
|
Net Revenue
|
|
$
1,111,846
|
|
$
741,960
|
|
$
2,960,546
|
|
$
1,829,603
|
|
|
|
|
|
|
|
|
|
|
Line of Business - Net
Cost of Revenue:
|
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$ 79,867
|
|
$ 73,733
|
|
$
252,226
|
|
$
251,781
|
|
Cement
|
|
152,379
|
|
58,997
|
|
456,298
|
|
147,400
|
|
Products
|
|
424,590
|
|
277,498
|
|
1,149,193
|
|
678,593
|
|
Total Materials and
Products
|
|
656,836
|
|
410,228
|
|
1,857,717
|
|
1,077,774
|
|
Services
|
|
72,183
|
|
80,094
|
|
170,745
|
|
182,093
|
|
Net Cost of
Revenue
|
|
$
729,019
|
|
$
490,322
|
|
$
2,028,462
|
|
$
1,259,867
|
|
|
|
|
|
|
|
|
|
|
Line of Business -
Adjusted Cash Gross Profit (2):
|
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$
112,445
|
|
$
106,086
|
|
$
272,697
|
|
$
254,203
|
|
Cement (3)
|
|
152,574
|
|
56,138
|
|
383,940
|
|
120,355
|
|
Products
|
|
91,791
|
|
69,326
|
|
221,727
|
|
157,332
|
|
Total Materials and
Products
|
|
356,810
|
|
231,550
|
|
878,364
|
|
531,890
|
|
Services
|
|
26,017
|
|
20,088
|
|
53,720
|
|
37,846
|
|
Adjusted Cash Gross
Profit
|
|
$
382,827
|
|
$
251,638
|
|
$
932,084
|
|
$
569,736
|
|
|
|
|
|
|
|
|
|
|
Adjusted Cash Gross
Profit Margin (2)
|
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
|
Aggregates
|
|
58.5 %
|
|
59.0 %
|
|
51.9 %
|
|
50.2 %
|
|
Cement (3)
|
|
47.2 %
|
|
46.3 %
|
|
43.6 %
|
|
41.9 %
|
|
Products
|
|
17.8 %
|
|
20.0 %
|
|
16.2 %
|
|
18.8 %
|
|
Services
|
|
26.5 %
|
|
20.1 %
|
|
23.9 %
|
|
17.2 %
|
|
Total Adjusted Cash
Gross Profit Margin
|
|
34.4 %
|
|
33.9 %
|
|
31.5 %
|
|
31.1 %
|
|
________________________________________________________
|
|
(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 28,
2024
|
|
September 30,
2023
|
|
September 28,
2024
|
|
September 30,
2023
|
|
Aggregates
(tons)
|
|
15,368
|
|
15,654
|
|
41,780
|
|
44,622
|
|
Cement
(tons)
|
|
2,261
|
|
746
|
|
6,375
|
|
1,787
|
|
Ready-mix concrete
(cubic yards)
|
|
2,254
|
|
1,383
|
|
6,527
|
|
3,667
|
|
Asphalt
(tons)
|
|
1,292
|
|
1,385
|
|
2,523
|
|
2,805
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
Pricing
|
|
September 28,
2024
|
|
September 30,
2023
|
|
September 28,
2024
|
|
September 30,
2023
|
|
Aggregates (per
ton)
|
|
$ 15.34
|
|
$ 14.28
|
|
$ 15.18
|
|
$ 13.81
|
|
Cement (per
ton)
|
|
155.76
|
|
155.79
|
|
153.89
|
|
151.58
|
|
Ready-mix concrete
(per cubic yards)
|
|
166.85
|
|
154.39
|
|
165.71
|
|
150.66
|
|
Asphalt (per
ton)
|
|
89.47
|
|
85.20
|
|
87.77
|
|
84.36
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
Percentage Change
in
|
|
Percentage Change
in
|
|
Year over Year
Comparison
|
|
Volume
|
|
Pricing
|
|
Volume
|
|
Pricing
|
|
Aggregates (per
ton)
|
|
(1.8) %
|
|
7.4 %
|
|
(6.4) %
|
|
9.9 %
|
|
Cement (per
ton)
|
|
203.1 %
|
|
— %
|
|
256.7 %
|
|
1.5 %
|
|
Ready-mix concrete
(per cubic yards)
|
|
63.0 %
|
|
8.1 %
|
|
78.0 %
|
|
10.0 %
|
|
Asphalt (per
ton)
|
|
(6.7) %
|
|
5.0 %
|
|
(10.1) %
|
|
4.0 %
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
0.7 %
|
|
6.9 %
|
|
(5.5) %
|
|
9.3 %
|
|
Cement (per
ton)
|
|
(11.3) %
|
|
3.9 %
|
|
(11.8) %
|
|
5.6 %
|
|
Ready-mix concrete
(per cubic yards)
|
|
(10.0) %
|
|
5.5 %
|
|
(13.0) %
|
|
6.3 %
|
|
Asphalt (per
ton)
|
|
0.4 %
|
|
4.5 %
|
|
(1.1) %
|
|
3.1 %
|
|
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 28, 2024
|
|
|
|
|
|
|
Gross Revenue
|
|
Intercompany
|
|
Net
|
|
|
Volumes
|
|
Pricing
|
|
by Product
|
|
Elimination/Delivery
|
|
Revenue
|
|
Aggregates
|
|
15,368
|
|
$
15.34
|
|
$
235,718
|
|
$
(43,406)
|
|
$
192,312
|
|
Cement
|
|
2,261
|
|
155.76
|
|
352,146
|
|
(47,193)
|
|
304,953
|
|
Materials
|
|
|
|
|
|
$
587,864
|
|
$
(90,599)
|
|
$
497,265
|
|
Ready-mix
concrete
|
|
2,254
|
|
166.85
|
|
376,081
|
|
(87)
|
|
375,994
|
|
Asphalt
|
|
1,292
|
|
89.47
|
|
115,607
|
|
(69)
|
|
115,538
|
|
Other
Products
|
|
|
|
|
|
85,997
|
|
(61,148)
|
|
24,849
|
|
Products
|
|
|
|
|
|
$
577,685
|
|
$
(61,304)
|
|
$
516,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 28, 2024
|
|
|
|
|
|
|
Gross Revenue
|
|
Intercompany
|
|
Net
|
|
|
Volumes
|
|
Pricing
|
|
by Product
|
|
Elimination/Delivery
|
|
Revenue
|
|
Aggregates
|
|
41,780
|
|
$
15.18
|
|
$
634,363
|
|
$
(109,440)
|
|
$
524,923
|
|
Cement
|
|
6,375
|
|
153.89
|
|
981,115
|
|
(140,877)
|
|
840,238
|
|
Materials
|
|
|
|
|
|
$
1,615,478
|
|
$
(250,317)
|
|
$
1,365,161
|
|
Ready-mix
concrete
|
|
6,527
|
|
165.71
|
|
1,081,530
|
|
(211)
|
|
1,081,319
|
|
Asphalt
|
|
2,523
|
|
87.77
|
|
221,427
|
|
(280)
|
|
221,147
|
|
Other
Products
|
|
|
|
|
|
240,465
|
|
(172,011)
|
|
68,454
|
|
Products
|
|
|
|
|
|
$
1,543,422
|
|
$
(172,502)
|
|
$
1,370,920
|
|
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 and Adjusted EBITDA
Margin by segment and on a consolidated basis for the three and
nine months ended September 28, 2024 and September 30,
2023.
|
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Three months ended
September 28, 2024
|
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
103,334
|
|
$
49,444
|
|
$ 99,531
|
|
$
(147,131)
|
|
$
105,178
|
|
Interest (income)
expense
|
|
(8,330)
|
|
(5,597)
|
|
(6,563)
|
|
71,406
|
|
50,916
|
|
Income tax
expense
|
|
1,611
|
|
—
|
|
—
|
|
31,930
|
|
33,541
|
|
Depreciation, depletion
and amortization
|
|
31,766
|
|
18,284
|
|
46,044
|
|
1,922
|
|
98,016
|
|
EBITDA
|
|
$
128,381
|
|
$
62,131
|
|
$
139,012
|
|
$ (41,873)
|
|
$
287,651
|
|
Accretion
|
|
452
|
|
656
|
|
35
|
|
—
|
|
1,143
|
|
Loss on debt
financings
|
|
—
|
|
—
|
|
—
|
|
7,157
|
|
7,157
|
|
Loss on sale of
businesses
|
|
59
|
|
7,024
|
|
—
|
|
—
|
|
7,083
|
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
6,729
|
|
6,729
|
|
Argos USA acquisition
and integration costs (2)
|
|
—
|
|
261
|
|
1,032
|
|
11,529
|
|
12,822
|
|
Other (3)
|
|
(511)
|
|
244
|
|
—
|
|
(7,646)
|
|
(7,913)
|
|
Adjusted
EBITDA
|
|
$
128,381
|
|
$
70,316
|
|
$
140,079
|
|
$ (24,104)
|
|
$
314,672
|
|
Adjusted EBITDA Margin
(1)
|
|
26.1 %
|
|
23.7 %
|
|
43.3 %
|
|
|
|
28.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (3)
|
|
(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
|
|
Nine months ended
September 28, 2024
|
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
205,223
|
|
$
135,369
|
|
$
223,311
|
|
$
(419,920)
|
|
$
143,983
|
|
Interest (income)
expense
|
|
(22,827)
|
|
(15,577)
|
|
(19,203)
|
|
213,264
|
|
155,657
|
|
Income tax expense
(benefit)
|
|
3,420
|
|
—
|
|
—
|
|
44,872
|
|
48,292
|
|
Depreciation, depletion
and amortization
|
|
91,484
|
|
63,684
|
|
134,931
|
|
6,259
|
|
296,358
|
|
EBITDA
|
|
$
277,300
|
|
$
183,476
|
|
$
339,039
|
|
$
(155,525)
|
|
$
644,290
|
|
Accretion
|
|
1,342
|
|
1,706
|
|
121
|
|
—
|
|
3,169
|
|
Loss on debt
financings
|
|
—
|
|
—
|
|
—
|
|
12,610
|
|
12,610
|
|
Gain on sale of
businesses
|
|
(3,769)
|
|
(7,891)
|
|
—
|
|
—
|
|
(11,660)
|
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
20,862
|
|
20,862
|
|
Argos USA acquisition
and integration costs (2)
|
|
—
|
|
323
|
|
1,142
|
|
82,388
|
|
83,853
|
|
Other (3)
|
|
(1,507)
|
|
732
|
|
—
|
|
(20,286)
|
|
(21,061)
|
|
Adjusted
EBITDA
|
|
$
273,366
|
|
$
178,346
|
|
$
340,302
|
|
$ (59,951)
|
|
$
732,063
|
|
Adjusted EBITDA Margin
(1)
|
|
22.8 %
|
|
20.2 %
|
|
38.7 %
|
|
|
|
24.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (2)
|
|
—
|
|
—
|
|
—
|
|
17,859
|
|
17,859
|
|
Other (3)
|
|
(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 %
|
|
________________________________________________
|
|
(1)
Adjusted EBITDA Margin is defined as Adjusted EBITDA as a
percentage of net revenue.
|
|
(2) The
adjustment for acquisition and integration costs related to the
transaction is comprised of finder's fees, advisory, legal and
professional fees incurred relating to the transaction.
|
|
(3)
Consists primarily of interest income earned on cash
balances.
|
|
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 28, 2024 and September 30, 2023. 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 28,
2024
|
|
September 30,
2023
|
|
September 28,
2024
|
|
September 30,
2023
|
|
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.
|
|
$
105,178
|
|
$
0.60
|
|
$
230,045
|
|
$
1.91
|
|
$
144,387
|
|
$
0.83
|
|
$
282,878
|
|
$
2.36
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to noncontrolling interest
|
|
—
|
|
—
|
|
2,680
|
|
0.02
|
|
(404)
|
|
—
|
|
3,363
|
|
0.03
|
|
Argos USA acquisition
and integration costs, net of tax
|
|
11,181
|
|
0.07
|
|
17,859
|
|
0.15
|
|
69,487
|
|
0.41
|
|
17,859
|
|
0.15
|
|
Loss on sale of
businesses, net of tax
|
|
7,728
|
|
0.04
|
|
—
|
|
—
|
|
395
|
|
—
|
|
—
|
|
—
|
|
Loss on debt
financings
|
|
7,157
|
|
0.04
|
|
—
|
|
—
|
|
12,610
|
|
0.07
|
|
493
|
|
—
|
|
Adjusted diluted net
income before tax related adjustments
|
|
131,244
|
|
0.75
|
|
250,584
|
|
2.08
|
|
226,475
|
|
1.31
|
|
304,593
|
|
2.54
|
|
Tax receivable
agreement (benefit) expense, net of tax
|
|
—
|
|
—
|
|
(153,080)
|
|
(1.27)
|
|
—
|
|
—
|
|
(153,080)
|
|
(1.28)
|
|
Adjusted diluted net
income
|
|
$
131,244
|
|
$
0.75
|
|
$ 97,504
|
|
$
0.81
|
|
$
226,475
|
|
$
1.31
|
|
$
151,513
|
|
$
1.26
|
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Class A common
stock
|
|
175,588,180
|
|
|
|
118,928,799
|
|
|
|
172,848,097
|
|
|
|
118,780,523
|
|
|
|
LP Units
outstanding
|
|
—
|
|
|
|
1,303,990
|
|
|
|
170,522
|
|
|
|
1,308,417
|
|
|
|
Total equity
units
|
|
175,588,180
|
|
|
|
120,232,789
|
|
|
|
173,018,619
|
|
|
|
120,088,940
|
|
|
|
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 28, 2024 and September 30,
2023.
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
28,
|
|
September
30,
|
|
September
28,
|
|
September
30,
|
|
Reconciliation of Operating Income
to Adjusted Cash Gross Profit
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
194,651
|
|
$
127,983
|
|
$
322,694
|
|
$
242,141
|
|
General and
administrative expenses
|
|
78,916
|
|
50,895
|
|
231,317
|
|
150,731
|
|
Depreciation,
depletion, amortization and accretion
|
|
99,159
|
|
57,452
|
|
299,527
|
|
163,133
|
|
Transaction and
integration costs
|
|
13,656
|
|
17,442
|
|
86,129
|
|
19,518
|
|
Gain on sale of
property, plant and equipment
|
|
(3,555)
|
|
(2,134)
|
|
(7,583)
|
|
(5,787)
|
|
Adjusted Cash Gross
Profit (exclusive of items shown separately)
|
|
$
382,827
|
|
$
251,638
|
|
$
932,084
|
|
$
569,736
|
|
Adjusted Cash Gross
Profit Margin (exclusive of items shown separately) (1)
|
|
34.4 %
|
|
33.9 %
|
|
31.5 %
|
|
31.1 %
|
|
_______________________________________________________
|
|
(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 28, 2024 and
September 30, 2023.
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
28,
|
|
September
30,
|
|
September
28,
|
|
September
30,
|
|
($
in thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
|
$ 105,178
|
|
$ 232,725
|
|
$ 143,983
|
|
$ 286,241
|
|
Non-cash
items
|
|
149,507
|
|
75,262
|
|
357,127
|
|
201,680
|
|
Net income adjusted
for non-cash items
|
|
254,685
|
|
307,987
|
|
501,110
|
|
487,921
|
|
Change in working
capital accounts
|
|
(21,889)
|
|
(158,405)
|
|
(156,910)
|
|
(244,297)
|
|
Net cash provided by
operating activities
|
|
232,796
|
|
149,582
|
|
344,200
|
|
243,624
|
|
Capital expenditures,
net of asset sales
|
|
(92,353)
|
|
(51,289)
|
|
(254,096)
|
|
(172,422)
|
|
Free cash
flow
|
|
$ 140,443
|
|
$
98,293
|
|
$
90,104
|
|
$
71,202
|
Contact:
Andy Larkin
VP, Investor Relations
andy.larkin@summit-materials.com
720-618-6013
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SOURCE Summit Materials, Inc.