DENVER -- (Business Wire)
Summit Materials, Inc. (NYSE:SUM)(“Summit” or the “Company”), a
leading vertically integrated construction materials company, today
announced results for the first quarter ended March 28, 2015.
First Quarter 2015 Highlights Compared to First Quarter 2014:
• Net revenue grew 28.8% to $175.1 million.
• Operating loss of $59.0 million, compared to $35.0 million, due to
initial public offering costs.
• Adjusted EBITDA improved to a $5.0 million deficit, compared to a
$15.5 million deficit.
• Gross profit increased 59.3% to $35.7 million.
• Aggregates, cement and ready-mixed concrete volumes grew 67.4%, 39.3%
and 52.0%, respectively.
• Aggregates, cement, ready-mixed concrete and asphalt organic pricing
improved 4.5%, 10.7%, 6.3% and 17.5%, respectively.
• Completes initial public offering in March 2015 raising net proceeds
of $433.0 million.
Tom Hill, the President and CEO of Summit, stated, “We are pleased to
report our first quarter results as a public company. We delivered a
solid quarter of growth and profitability and improvement throughout our
entire business. We experienced improving demand in our markets and also
benefitted from the favorable pricing environment across our vertically
integrated lines of business. The favorable impact of our acquisitive
growth strategy is also evident as we continue to outpace the growth of
the U.S. construction industry, realizing the accretive benefits of our
strategic platform and bolt-on additions. We expanded our Adjusted
EBITDA margin by 860 basis points and improved our gross margin by 390
basis points, reflecting our successful efforts to focus on growing our
materials and products revenues and improving margins in our paving and
other services. As we move forward in 2015, we are focused on building
on the core demand improvements in our markets and sourcing
value-enhancing acquisitions in select markets, while remaining
disciplined with our costs to generate additional cash flow.”
First Quarter 2015 Operating Results
In the first quarter 2015, net revenue increased 28.8% to $175.1
million, compared to $136.0 million in the prior year quarter. The
increase in net revenue was primarily attributable to an increase in
volumes in the aggregates, cement and ready-mixed concrete lines of
business, largely in the West region. Net revenue grew organically by
$6.7 million, or 4.9%, compared to the prior year quarter.
Adjusted EBITDA increased to a $5.0 million deficit, compared to $15.5
million deficit in the prior year quarter. Adjusted EBITDA by region in
the first quarter 2015 compared to the prior year quarter was as follows:
• The West Region grew $10.1 million, primarily driven by a higher mix
of net revenue from aggregates, organic volume growth and the impact of
2014 acquisitions in the Houston and Midland/Odessa, Texas and British
Columbia, Canada markets.
• The Central Region increased $1.1 million with higher volume and
prices in aggregates and cement and higher prices in asphalt, which more
than offset lower asphalt volumes and a $2.5 million increase in repair
and maintenance expense at the Company’s cement plant.
• The East Region improved $1.5 million as a result of an increase in
aggregates volumes.
Gross profit increased 59.3% to $35.7 million, compared to $22.4 million
in the prior year quarter. As a percentage of net revenue, gross margin
improved to 20.4%, compared to 16.5% in the prior year quarter,
primarily attributable to a higher mix of net revenue from materials and
products as a result of acquisitions completed in 2014.
Materials Results – Net revenue from materials increased 68.0% to
$50.1 million, compared to $29.8 million in the prior year quarter.
Aggregates volumes grew 67.4% driven by 12.8% organic volume growth and
the remainder attributable to acquisitions. Aggregates organic prices
increased 4.5% with the improvement due to higher prices across most
markets. Aggregates prices declined 0.9% primarily due to the regional
mix effect of acquisitions in markets with lower absolute prices. Cement
volumes and prices increased 39.3% and 10.7%, respectively, both driven
by additional market demand. Gross profit from materials more than
doubled to $10.1 million, compared to $4.3 million in the prior year
quarter.
Products Results – Net revenue from products increased 40.5% to
$98.8 million, compared to $70.4 million in the prior year quarter.
Ready-mixed concrete volumes increased 52.0% driven by organic volume
that was up 13.2% with the remainder attributable to acquisitions.
Ready-mixed concrete prices increased 8.9%, largely benefitting from the
pass through of higher industry cement prices. Asphalt pricing grew
17.5% due to a shift in product mix which included a lower percentage of
base materials, while inclement weather resulted in a 30.8% reduction in
volumes. Gross profit from products grew 66.7% to $19.0 million,
compared to $11.4 million in the prior year quarter.
Liquidity and Capital Resources
In March 2015, Summit completed its initial public offering of Class A
common stock, raising net proceeds of approximately $433.0 million,
including the full exercise of the underwriter’s option to purchase
additional shares. In connection with the offering, Summit increased its
revolving credit facility to $235.0 million and extended the maturity
date to March 2020. As of March 28, 2015, the Company’s borrowing
capacity was fully available on its undrawn revolver (excluding $23.3
million of letters of credit).
At March 28, 2015, the Company had cash of $315.0 million and total
outstanding debt of $1,062.7 million, as compared to cash of $13.2
million and total outstanding debt of approximately $1,064.9 million at
December 27, 2014.
Subsequent Events
Acquisition Activity
In April 2015, Summit signed a definitive agreement with Lafarge North
America Inc. (“Lafarge”) to acquire its 1.2 million short ton capacity
cement plant in Davenport, Iowa and seven cement distribution terminals
(“Davenport Assets”) for a cash purchase price of $450.0 million plus an
exchange of Summit’s Bettendorf, Iowa cement distribution terminal. The
transaction is expected to close in the third quarter of 2015, pending
final regulatory approval and the closing of the merger of Lafarge’s
parent company, Lafarge S.A., with Holcim Ltd.
The Davenport Assets will be integrated with Summit’s Continental Cement
Company operations. The combined business is expected to have
2.5 million short tons of cement capacity across two plants located in
Hannibal, Missouri and Davenport and eight cement distribution terminals
with a total import capacity of 1.5 million short tons from Minneapolis,
Minnesota to New Orleans, Louisiana.
The cash purchase price of $450.0 million is expected to be funded
primarily by an increase of Summit’s existing term debt facility
together with new equity. Under the terms of the agreement, Summit has
agreed to pay an initial purchase price of $370.0 million upon closing
of the transaction, with the remaining purchase price of $80.0 million
due by December 31, 2015.
Liquidity
In April 2015, in connection with its initial public offering, the
Company redeemed $288.2 million aggregate principal amount of its
outstanding 10 1⁄2% Senior Notes due 2020 at
a redemption price equal to par, plus an applicable premium of $38.2
million, plus $5.2 million of accrued and unpaid interest.
Webcast and Conference Call Information
Summit will conduct a conference call at 11:00 a.m. Eastern Time (9:00
a.m. Mountain Time) on Tuesday, May 5, 2015 to review first quarter
results, discuss recent events, and conduct a question-and-answer
period. A webcast of the conference call will be available in the
Investors section of Summit’s website at www.summit-materials.com.
To listen to a live broadcast, go to the site at least 15 minutes prior
to the scheduled start time in order to register, download, and install
any necessary audio software.
To participate in the telephone conference call:
Domestic:
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1-888-287-5563
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International:
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1-719-457-2689
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Conference ID:
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7372603
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To listen to a replay of the telephone conference call:
Domestic:
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1-877-870-5176
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International:
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1-858-384-5517
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Conference ID:
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7372603
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The playback recording can be accessed through June 5, 2015.
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About Summit Materials
Summit Materials is a leading vertically integrated construction
materials company that supplies aggregates, cement, ready-mixed concrete
and asphalt in the United States and western Canada. Summit is a
geographically diverse, aggregates-based business of scale that offers
customers a single-source provider of construction materials and related
downstream products in the residential, nonresidential, and public
infrastructure end markets. Summit has completed more than 30
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 rules of the SEC regulate the use in filings with the SEC of
“non-GAAP financial measures,” such as Adjusted EBITDA, Further Adjusted
EBITDA, gross profit, adjusted net loss per share, 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 Adjusted EBITDA, Further Adjusted EBITDA, gross profit,
adjusted net loss per share, and free cash flow 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. Further Adjusted EBITDA is defined in our senior secured
credit facilities and used to measure compliance with covenants,
including interest coverage and debt incurrence, and is used to measure
our debt incurrence and restricted payment capacity under the indenture
governing our senior notes. Our use of the terms Adjusted EBITDA,
Further Adjusted EBITDA, gross profit and adjusted net loss per share,
may vary from the use of such terms by others and should not be
considered as alternatives to 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 and Further Adjusted EBITDA 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
and Further 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; (iv) income tax payments we are required to make; and
(v) any cash requirements for the replacement cost of assets being
depreciated or amortized. Because of these limitations, we rely
primarily on our U.S. GAAP results and use Adjusted EBITDA and Further
Adjusted EBITDA only supplementally.
Adjusted EBITDA, Further Adjusted EBITDA, gross profit, adjusted net
loss per share, and free cash flow reflect an additional way 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. However,
non-GAAP financial measures should not be construed as being more
important than other comparable U.S. GAAP financial measures and should
be considered in conjunction with the U.S. GAAP measures. In addition,
non-GAAP financial measures are not standardized; therefore, it may not
be possible to compare such financial measures with other companies’
non-GAAP financial measures having the same or similar names. 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 tables attached to this press release.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the
meaning of the federal securities laws, which involve risks and
uncertainties. Forward-looking statements include all statements that do
not relate solely to historical or current facts, and you can identify
forward-looking statements because they contain words such as
“believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,”
“trends,” “plans,” “estimates,” “projects” or “anticipates” or similar
expressions that concern our strategy, plans, expectations or
intentions. Any and all statements made relating to the timing, funding
of, and expectations for our anticipated purchase of the Davenport
Assets, the macroeconomic outlook for our markets, potential acquisition
activity, our estimated and projected earnings, margins, costs,
expenditures, cash flows, sales volumes and financial results are
forward-looking statements. These forward-looking statements are subject
to risks and uncertainties that may change at any time, and, therefore,
our actual results may differ materially from those expected. 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 impact 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 achieved. 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 our prospectus dated March 11, 2015, filed with the SEC on March 13,
2015. Such factors may be updated from time to time in our periodic
filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.
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 otherwise required by law.
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SUMMIT MATERIALS, INC. AND SUBSIDIARIES |
Unaudited Consolidated Statements of Operations
|
($ in thousands)
|
|
| |
| | Three months ended |
| | March 28, |
| March 29, |
| | 2015 | | 2014 |
Revenue:
| | | | |
Product
| |
$
|
148,920
| | |
$
|
100,168
| |
Service
| |
|
26,219
|
| |
|
35,851
|
|
| | | |
|
Net revenue
| | |
175,139
| | | |
136,019
| |
Delivery and subcontract revenue
| |
|
18,848
|
| |
|
15,072
|
|
| | | |
|
Total revenue
| |
|
193,987
|
| |
|
151,091
|
|
| | | |
|
Cost of revenue (excluding items shown separately below):
| | | | |
Product
| | |
119,791
| | | |
84,477
| |
Service
| |
|
19,630
|
| |
|
29,126
|
|
| | | |
|
Net cost of revenue
| | |
139,421
| | | |
113,603
| |
Delivery and subcontract cost
| |
|
18,848
|
| |
|
15,072
|
|
| | | |
|
Total cost of revenue
| |
|
158,269
|
| |
|
128,675
|
|
| | | |
|
General and administrative expenses
| | |
67,234
| | | |
35,488
| |
Depreciation, depletion, amortization and accretion
| | |
26,126
| | | |
19,356
| |
Transaction costs
| |
|
1,364
|
| |
|
2,591
|
|
| | | |
|
Operating loss
| | |
(59,006
|
)
| | |
(35,019
|
)
|
Other expense (income), net
| | |
391
| | | |
(194
|
)
|
Loss on debt financings
| | |
799
| | | |
-
| |
Interest expense
| |
|
24,109
|
| |
|
18,819
|
|
| | | |
|
Loss from continuing operations before taxes
| | |
(84,305
|
)
| | |
(53,644
|
)
|
Income tax benefit
| |
|
(4,468
|
)
| |
|
(596
|
)
|
| | | |
|
Loss from continuing operations
| | |
(79,837
|
)
| | |
(53,048
|
)
|
Loss from discontinued operations
| |
|
-
|
| |
|
20
|
|
| | | |
|
Net loss
| | |
(79,837
|
)
| | |
(53,068
|
)
|
| | | |
|
Net loss attributable to noncontrolling interest in subsidiaries
| | |
(1,982
|
)
| |
|
(2,515
|
)
|
| | | |
|
Net loss attributable to Summit Holdings
| |
|
(67,704
|
)
| |
$
|
(50,553
|
)
|
| | | |
|
Net loss attributable to Summit Materials, Inc.
| |
$
|
(10,151
|
)
| | |
| | | |
|
| | | |
|
Net loss per share of Class A common stock:
| | | | |
Basic
| |
$
|
(0.38
|
)
| | |
Diluted
| |
$
|
(0.38
|
)
| | |
Weighted average shares of Class A common stock:
| | | | |
Basic
| | |
26,584,738
| | | |
Diluted
| | |
26,584,738
| | | |
| | | | |
|
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SUMMIT MATERIALS, INC. AND SUBSIDIARIES |
Consolidated Balance Sheets
|
($ in thousands)
|
|
| |
| |
| | March 28, | | December 27, |
| | 2015 | | 2014 |
Assets | | | | |
Current assets:
| | | | |
Cash
| |
$
|
314,980
| | |
$
|
13,215
|
Accounts receivable, net
| | |
109,941
| | | |
141,302
|
Costs and estimated earnings in excess of billings
| | |
11,836
| | | |
10,174
|
Inventories
| | |
133,307
| | | |
111,553
|
Other current assets
| |
|
17,476
|
| |
|
17,172
|
| | | |
|
Total current assets
| | |
587,540
| | | |
293,416
|
| | | |
|
Property, plant and equipment, less accumulated depreciation,
depletion and amortization (March 28, 2015 - $297,187 and
December 27, 2014 - $279,375)
| | |
948,129
| | | |
950,601
|
Goodwill
| | |
415,582
| | | |
419,270
|
Intangible assets, less accumulated amortization (March 28, 2015 -
$3,623 and December 27, 2014 - $3,073)
| | |
16,891
| | | |
17,647
|
Other assets
| |
|
50,112
|
| |
|
48,843
|
| | | |
|
Total assets
| |
$
|
2,018,254
|
| |
$
|
1,729,777
|
| | | |
|
| | | |
|
Liabilities, Redeemable Noncontrolling Interest and Partners’
Interest/Stockholders’ Equity | | | | |
Current liabilities:
| | | | |
Current portion of debt
| |
$
|
5,275
| | |
$
|
5,275
|
Current portion of acquisition-related liabilities
| | |
24,851
| | | |
18,402
|
Accounts payable
| | |
70,840
| | | |
78,854
|
Accrued expenses
| | |
81,612
| | | |
101,496
|
Billings in excess of costs and estimated earnings
| |
|
8,309
|
| |
|
8,958
|
| | | |
|
Total current liabilities
| | |
190,887
| | | |
212,985
|
| | | |
|
Long-term debt
| | |
1,057,418
| | | |
1,059,642
|
Acquisition-related liabilities
| | |
44,245
| | | |
42,736
|
Other noncurrent liabilities
| |
|
97,433
|
| |
|
93,691
|
| | | |
|
Total liabilities
| |
|
1,389,983
|
| |
|
1,409,054
|
| | | |
|
Redeemable noncontrolling interest
| | |
-
| | | |
33,740
|
Stockholders’ equity/partners’ interest:
| | | | |
Class A common stock, par value $0.01 per share; 1,000,000,000
shares authorized, 26,584,738 shares issued and outstanding as of
March 28, 2015
| | |
266
| | | |
-
|
Class B common stock, par value $0.01 per share; 250,000,000 shares
authorized, 69,007,297 shares issued and outstanding as of March 28,
2015
| | |
690
| | | |
-
|
Partners’ interest
| | |
-
| | | |
285,685
|
Additional paid-in capital
| | |
456,406
| | | |
-
|
Accumulated deficit
| | |
(10,151
|
)
| | |
-
|
Accumulated other comprehensive loss
| |
|
(1,050
|
)
| |
|
-
|
| | | |
|
Stockholders’ equity/partners’ interest:
| | |
446,161
| | | |
285,685
|
Noncontrolling interest in consolidated subsidiaries
| | |
1,206
| | | |
1,298
|
Noncontrolling interest in Summit Materials, Inc.
| |
|
180,904
|
| |
|
-
|
| | | |
|
Total stockholders’ equity/partners’ interest
| |
|
628,271
|
| |
|
286,983
|
| | | |
|
Total liabilities, redeemable noncontrolling interest and
stockholders’ equity/partners’ interest
| |
$
|
2,018,254
|
| |
$
|
1,729,777
|
| | | | | | |
|
|
SUMMIT MATERIALS, INC. AND SUBSIDIARIES |
Unaudited Consolidated Statements of Cash Flows
|
($ in thousands)
|
|
| |
| |
| | Three months ended |
| | March 28, | | March 29, |
| | 2015 | | 2014 |
Cash flow from operating activities:
| | | | |
Net loss
| |
$
|
(79,837
|
)
| |
$
|
(53,068
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
| | | | |
Depreciation, depletion, amortization and accretion
| | |
27,358
| | | |
20,789
| |
Share-based compensation expense
| | |
15,217
| | | |
566
| |
Deferred income tax benefit
| | |
-
| | | |
(525
|
)
|
Net gain on asset disposals
| | |
(1,834
|
)
| | |
(48
|
)
|
Loss on debt financings
| | |
688
| | | |
-
| |
Other
| | |
780
| | | |
558
| |
Decrease (increase) in operating assets, net of acquisitions:
| | | | |
Accounts receivable, net
| | |
30,309
| | | |
16,989
| |
Inventories
| | |
(21,413
|
)
| | |
(13,377
|
)
|
Costs and estimated earnings in excess of billings
| | |
(1,662
|
)
| | |
(839
|
)
|
Other current assets
| | |
(303
|
)
| | |
9
| |
Other assets
| | |
755
| | | |
3,202
| |
(Decrease) increase in operating liabilities, net of acquisitions:
| | | | |
Accounts payable
| | |
(10,045
|
)
| | |
(10,239
|
)
|
Accrued expenses
| | |
(20,669
|
)
| | |
(9,620
|
)
|
Billings in excess of costs and estimated earnings
| | |
(649
|
)
| | |
(2,728
|
)
|
Other liabilities
| |
|
(203
|
)
| |
|
(2,044
|
)
|
| | | |
|
Net cash used in operating activities
| |
|
(61,508
|
)
| |
|
(50,375
|
)
|
| | | |
|
| | | |
|
Cash flow from investing activities:
| | | | |
Acquisitions, net of cash acquired
| | |
-
| | | |
(182,514
|
)
|
Purchases of property, plant and equipment
| | |
(17,708
|
)
| | |
(19,941
|
)
|
Proceeds from the sale of property, plant and equipment
| | |
2,741
| | | |
2,202
| |
Other
| |
|
(276
|
)
| |
|
7
|
|
| | | |
|
Net cash used for investing activities
| |
|
(15,243
|
)
| |
|
(200,246
|
)
|
| | | |
|
| | | |
|
Cash flow from financing activities:
| | | | |
Proceeds from initial public offering
| | |
460,000
| | | |
-
| |
Capital issuance costs
| | |
(35,956
|
)
| | |
-
| |
Capital contributions by partners
| | |
-
| | | |
24,350
| |
Proceeds from debt issuances
| | |
104,000
| | | |
306,750
| |
Debt issuance costs
| | |
(4,055
|
)
| | |
(6,309
|
)
|
Payments on debt
| | |
(106,441
|
)
| | |
(54,314
|
)
|
Purchase of noncontrolling interest in consolidated subsidiary
| | |
(35,000
|
)
| | |
-
| |
Payments on acquisition-related liabilities
| |
|
(4,032
|
)
| |
|
(638
|
)
|
| | | |
|
Net cash provided by financing activities
| |
|
378,516
|
| |
|
269,839
|
|
| | | |
|
Net increase in cash
| | |
301,765
| | | |
19,218
| |
Cash – beginning of period
| |
|
13,215
|
| |
|
18,184
|
|
| | | |
|
Cash – end of period
| |
$
|
314,980
|
| |
$
|
37,402
|
|
| | | | | | | |
|
|
SUMMIT MATERIALS, INC. AND SUBSIDIARIES |
Unaudited Revenue Data by Region and Product
|
($ in thousands)
|
|
| |
| |
| | Three months ended |
| | March 28, | | March 29, |
| | 2015 | | 2014 |
Net Revenue:
| | | | |
West region
| |
$
|
117,006
| |
$
|
88,264
|
Central region
| | |
50,588
| | |
41,134
|
East region
| |
|
7,545
| |
|
6,621
|
| | | |
|
Total net revenue
| |
$
|
175,139
| |
$
|
136,019
|
| | | |
|
| |
|
| | Three months ended |
| | March 28, | | March 29, |
| | 2015 | | 2014 |
Net Revenue by Product
| | | | |
Materials
| |
$
|
50,088
| |
$
|
29,808
|
Products
| | |
98,832
| | |
70,360
|
Services and other
| |
|
26,219
| |
|
35,851
|
| | | |
|
Net Revenue
| |
$
|
175,139
| |
$
|
136,019
|
| | | |
|
| | | |
|
Gross Profit
| | | | |
Materials
| |
$
|
10,137
| |
$
|
4,297
|
Products
| | |
18,992
| | |
11,393
|
Services and other
| |
|
6,589
| |
|
6,726
|
| | | |
|
Gross Profit
| |
$
|
35,718
| |
$
|
22,416
|
|
SUMMIT MATERIALS, INC. AND SUBSIDIARIES |
Unaudited Volume and Price Statistics
|
(Units in thousands)
|
|
| |
| |
| | Three months ended |
Total Volume (in 000s) | | March 28, 2015 | | March 29, 2014 |
Aggregates (tons)
| | |
6,089
| | | |
3,637
| |
Cement (tons)
| | |
124
| | | |
89
| |
Ready-mixed concrete (cubic yards)
| | |
693
| | | |
456
| |
Asphalt (tons)
| | |
296
| | | |
428
| |
| |
|
| | Three months ended |
Pricing | | March 28, 2015 | | March 29, 2014 |
Aggregates (per ton)
| |
$
|
8.60
| | |
$
|
8.68
| |
Cement (per ton)
| | |
95.52
| | | |
86.27
| |
Ready-mixed concrete (per cubic yards)
| | |
101.19
| | | |
92.92
| |
Asphalt (per ton)
| | |
56.98
| | | |
48.48
| |
| | | |
|
Quarter over Quarter Comparison | | Volume | | Pricing |
Aggregates
| | |
67.4
|
%
| | |
(0.9
|
)%
|
Cement
| | |
39.3
|
%
| | |
10.7
|
%
|
Ready-mixed concrete
| | |
52.0
|
%
| | |
8.9
|
%
|
Asphalt
| | |
(30.8
|
)%
| | |
17.5
|
%
|
| | | |
|
Quarter over Quarter Comparison | | Volume | | Pricing |
(Excluding acquisitions) | | | | |
Aggregates
| | |
12.8
|
%
| | |
4.5
|
%
|
Cement
| | |
39.3
|
%
| | |
10.7
|
%
|
Ready-mixed concrete
| | |
13.2
|
%
| | |
6.3
|
%
|
Asphalt
| | |
(30.8
|
)%
| | |
17.5
|
%
|
| | | | | | | |
|
|
| |
SUMMIT MATERIALS, INC. AND SUBSIDIARIES |
Unaudited Reconciliations of Non-GAAP Financial Measures
|
($ in thousands)
|
|
The tables below reconcile our net loss to Adjusted EBITDA and
present Adjusted EBITDA by segment for the three months ended
March 28, 2015 and March 29, 2014.
|
| |
|
| | Three months ended |
| | March 28, |
| March 29, |
Reconciliation of Net Loss to Adjusted EBITDA | | 2015 | | 2014 |
Net loss
| |
$
|
(79,837
|
)
| |
$
|
(53,068
|
)
|
Depreciation, depletion and amortization
| | |
25,722
| | | |
19,149
| |
Interest expense
| | |
24,109
| | | |
18,819
| |
Income tax benefit
| | |
(4,468
|
)
| | |
(596
|
)
|
Accretion
| | |
404
| | | |
207
| |
Initial public offering costs
| | |
28,296
| | | |
-
| |
Loss on debt financings
| | |
799
| | | |
-
| |
Loss from discontinued operations
| |
|
-
|
| |
|
20
|
|
| | | |
|
Adjusted EBITDA
| |
$
|
(4,975
|
)
| |
$
|
(15,469
|
)
|
| | | |
|
| | | |
|
Adjusted EBITDA by Segment | | | | |
West
| |
$
|
11,869
| | |
$
|
1,791
| |
Central
| | |
710
| | | |
(423
|
)
|
East
| | |
(7,867
|
)
| | |
(9,338
|
)
|
Corporate
| |
|
(9,687
|
)
| |
|
(7,499
|
)
|
| | | |
|
Adjusted EBITDA
| |
$
|
(4,975
|
)
| |
$
|
(15,469
|
)
|
| | | |
|
The table below reconciles our net loss per share to adjusted net
loss per share for the three months ended March 28, 2015.
|
| | | |
|
Reconciliation of Net Loss Per Share to Adjusted Loss Per Share | | | | Per Share |
Net loss attributable to Summit Materials, Inc.
| |
$
|
(10,151
|
)
| |
$
|
(0.38
|
)
|
Initial public offering costs
| | |
7,866
| | | |
0.29
| |
Loss on debt financings
| |
|
222
|
| |
|
0.01
|
|
| | | |
|
Adjusted net loss
| |
$
|
(2,063
|
)
| |
$
|
(0.08
|
)
|
| | | |
|
Weighted average shares of Class A common stock:
| | | | |
Basic
| | |
26,584,738
| | | |
Diluted
| | |
26,584,738
| | | |
| | | | | |
|
The following table reconciles operating income to gross profit for the
three months ended March 28, 2015 and March 29, 2014.
|
| |
| |
| | Three months ended |
| | March 28, | | March 29, |
Reconciliation of Operating Loss to Gross Profit | | 2015 | | 2014 |
Operating loss
| |
$
|
(59,006
|
)
| |
$
|
(35,019
|
)
|
General and administrative expenses
| | |
67,234
| | | |
35,488
| |
Depreciation, depletion, amortization and accretion
| | |
26,126
| | | |
19,356
| |
Transaction costs
| |
|
1,364
|
| |
|
2,591
|
|
| | | |
|
Gross Profit
| |
$
|
35,718
|
| |
$
|
22,416
|
|
| | | |
|
| | | |
|
Gross Margin
| | |
20.4
|
%
| | |
16.5
|
%
|
| | | | | | | |
|
The following table reconciles net cash used for operating activities to
free cash flow for the three months ended March 28, 2015 and March 29,
2014.
|
| |
| |
| | Three months ended |
| | March 28, | | March 29, |
| | 2015 | | 2014 |
Net loss
| |
$
|
(79,837
|
)
| |
$
|
(53,068
|
)
|
Non-cash items
| |
|
42,209
|
| |
|
21,340
|
|
| | | |
|
Net income adjusted for non-cash items
| | |
(37,628
|
)
| | |
(31,728
|
)
|
Change in working capital accounts
| |
|
(23,880
|
)
| |
|
(18,647
|
)
|
| | | |
|
Net cash used for operating activities
| | |
(61,508
|
)
| | |
(50,375
|
)
|
Capital expenditures, net of asset sales
| |
|
(14,967
|
)
| |
|
(17,739
|
)
|
| | | |
|
Free cash outflow
| |
$
|
(76,475
|
)
| |
$
|
(68,114
|
)
|
| | | | | | | |
|
|
| |
| |
SUMMIT MATERIALS, INC AND SUBSIDIARIES |
Unaudited Reconciliations of Non-GAAP Financial Measures
|
($ in thousands)
|
|
The following table presents a reconciliation of net loss to
Further Adjusted EBITDA for the twelve months ended March 28, 2014
and December 27, 2014.
|
| | | |
|
| | Twelve months ended | | Twelve months ended |
| | March 28, 2015 | | December 27, 2014 |
Net loss
| |
$
|
(33,052
|
)
| |
$
|
(6,282
|
)
|
Interest expense
| | |
92,033
| | | |
86,742
| |
Income tax benefit
| | |
(10,854
|
)
| | |
(6,983
|
)
|
Depreciation, depletion and amortization
| | |
93,528
| | | |
86,955
| |
Accretion
| | |
1,068
| | | |
871
| |
Initial public offering costs
| | |
28,296
| | | |
-
| |
Loss on debt financings
| | |
799
| | | |
-
| |
Discontinued operations
| |
|
(91
|
)
| |
|
(71
|
)
|
| | | |
|
Adjusted EBITDA
| |
$
|
171,727
|
| |
$
|
161,232
|
|
| | | |
|
Acquisition transaction expenses
| | |
7,327
| | | |
8,554
| |
Management fees and expenses
| | |
5,011
| | | |
4,933
| |
Strategic fees and initiatives
| | |
141
| | | |
419
| |
Non-cash compensation
| | |
2,434
| | | |
2,235
| |
Loss on disposal and impairment of assets
| | |
8,640
| | | |
8,735
| |
Severance and relocation costs
| | |
754
| | | |
1,163
| |
Other
| |
|
3,377
|
| |
|
1,762
|
|
| | | |
|
Further Adjusted EBITDA
| |
$
|
199,411
|
| |
$
|
189,033
|
|
| | | |
|
EBITDA for certain completed acquisitions
| |
|
13,389
|
| |
|
23,105
|
|
| | | |
|
Further Adjusted EBITDA (including run-rate for acquisitions)
| |
$
|
212,800
|
| |
$
|
212,138
|
|
| | | | | | | |
|
Contacts:
Summit Materials, Inc.
Investor Relations:
303-515-5159
Investorrelations@summit-materials.com
Source: Summit Materials, Inc.
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