Establishes Annual Summit Records for Revenue
and Profitability
Record Annual Organic Pricing Growth for
Aggregates and Cement
DENVER, Feb. 14,
2024 /PRNewswire/ -- Summit Materials, Inc. (NYSE:
SUM) ("Summit," "Summit Materials," "Summit Inc." or the
"Company"), market-leading producer of aggregates and cement
company, today announced results for the fourth quarter and full
year ended December 30, 2023. All
comparisons are versus the quarter and full year ended December 31, 2022 unless noted otherwise.
|
|
Three months
ended
|
|
Year
ended
|
($ in thousands, except
per share amounts)
|
|
December 30,
2023
|
|
December 31,
2022
|
|
% Chg vs.
PY
|
|
December 30,
2023
|
|
December 31,
2022
|
|
% Chg vs.
PY
|
Net revenue
|
|
$ 613,133
|
|
$ 511,662
|
|
19.8 %
|
|
$
2,442,736
|
|
$
2,222,084
|
|
9.9 %
|
Operating
income
|
|
68,489
|
|
65,044
|
|
5.3 %
|
|
310,630
|
|
269,047
|
|
15.5 %
|
Net income
|
|
3,385
|
|
30,326
|
|
(88.8) %
|
|
289,626
|
|
275,943
|
|
5.0 %
|
Basic EPS
|
|
$
0.02
|
|
$
0.25
|
|
(92.0) %
|
|
$
2.40
|
|
$
2.27
|
|
5.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Cash Gross
Profit
|
|
187,324
|
|
161,618
|
|
15.9 %
|
|
757,060
|
|
649,345
|
|
16.6 %
|
Adjusted
EBITDA
|
|
136,545
|
|
119,291
|
|
14.5 %
|
|
578,010
|
|
491,476
|
|
17.6 %
|
Adjusted Diluted
EPS
|
|
$
0.31
|
|
$
0.32
|
|
(3.1) %
|
|
$
1.58
|
|
$
1.27
|
|
24.4 %
|
"Summit is at an exciting and pivotal point in our company's
history," commented Anne Noonan,
Summit Materials President and CEO. "Our team has effectively
capitalized on dynamic, yet constructive market conditions to drive
record revenue and profitability. And we're building on our record
setting performance by swiftly and safely advancing our Argos
integration - a move that we expect will only strengthen our
materials-led business. For 2024, with an improved footprint and
increased scale we anticipate delivering another year of strong
growth and returns. Our positive outlook is supported by robust
commercial conditions, an improving demand backdrop, and a full set
of growth opportunities that are unique to Summit Materials.
Crucially, our high-quality execution, financial performance, and
strategic focus has afforded us the balance sheet flexibility to
continue our pursuit of value-accretive capital allocation
priorities. Today and moving forward, we firmly believe Summit is
very well-positioned to generate superior value creation for our
shareholders."
2024 Guidance
For the full year 2024, Summit is currently projecting Adjusted
EBITDA of approximately $950 million
to $1,010 million and expects 2024
capital expenditures of approximately $430
million to $470 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.
Full Year 2023 | Total Company Results
Net revenue increased $220.7 million, or 9.9%, in
2023 to $2.4 billion, as strong
pricing across all lines of business and contributions from
acquisitions more than offset lower volumes and the impact of
divestitures.
Operating income increased $41.6 million, or 15.5% in 2023 to $310.6 million, as higher revenue more than
offset increases in cost of revenue, depreciation, depletion,
amortization and accretion, general and administrative expenses,
and transaction costs. Summit's operating margin percentage for
2023 increased to 12.7% from 12.1% in 2022, due to the factors
noted above.
Net income attributable to Summit Inc. increased to
$285.9 million, or $2.40 per basic share, compared to $272.1 million, or $2.27 per basic share, in the comparable prior
year period. Summit reported adjusted diluted net income of
$189.4 million, or $1.58 per adjusted diluted share, as compared to
$153.9 million, or $1.27 per adjusted diluted share, in the prior
year period.
Adjusted EBITDA increased $86.5 million, or 17.6%, to $578.0 million, due primarily to a strong pricing
environment and, to a lesser extent, contributions from
acquisitions.
Fourth Quarter 2023 | Total Company
Results
Net revenue increased $101.5 million, or 19.8% in
the fourth quarter to $613.1 million,
as average sales prices across all lines of business increased.
Operating income increased $3.4 million, or 5.3% in the fourth quarter to
$68.5 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 and integration
costs versus the prior year period. Summit's operating margin
percentage for the three months ended December 30, 2023, decreased to 11.2% from 12.7%,
from the comparable period a year ago primarily reflecting the
aforementioned transaction and integration costs related to the
Argos USA transaction.
Net income attributable to Summit Inc. increased to
$3.0 million, or $0.02 per basic share, compared to $29.8 million, or $0.25 per basic share in the comparable prior
year period. Summit reported adjusted diluted net income of
$37.8 million, or $0.31 per adjusted diluted share, compared to
$38.3 million, or $0.32 per adjusted diluted share, in the prior
year period.
Adjusted EBITDA increased $17.3 million, or 14.5%, to $136.5 million primarily reflecting strong
pricing across all lines of business.
Full Year 2023 | Results by Line of Business
Aggregates Business: Aggregates net revenues
increased $79.6 million to
$663.6 million in 2023. Aggregates
adjusted cash gross profit margin increased to 49.9% in 2023 as
compared to 48.5% in 2022. Aggregates sales volume decreased 1.9%
in 2023. Excluding acquisitions and divestitures, organic sales
volume decreased 3.1% in 2023, primarily reflecting unfavorable
weather conditions early in the year and soft residential demand.
Average selling prices for aggregates increased 14.6%, fueled by
16.7% pricing growth in the West Segment and 12.0% pricing growth
in the East Segment.
Cement Business: Cement Segment net revenues
increased 7.0% to $382.7 million in
2023. Cement Segment adjusted cash gross profit margin increased to
43.4% in 2023 as compared to 39.6% in 2022. Sales volume of cement
decreased 6.8% and average selling prices increased 13.2% in
2023.
Products Business: Products net revenues increased 10.0%
in 2023. Products adjusted cash gross profit margin of 18.2%
in 2023 increased from 17.1% in 2022. Ready-mix concrete
average selling prices increased 11.2% and organic sales volumes
decreased 12.2%. Average selling prices for asphalt increased
15.6%, and asphalt volume increased 10.1% when excluding the
impacts of acquisitions and divestitures.
Fourth Quarter 2023 | Results by Line of
Business
Aggregates Business: Aggregates net revenues
increased by $22.0 million to
$157.6 million in the fourth quarter.
Aggregates adjusted cash gross profit margin was 48.7% in the
fourth quarter as compared to 47.8% in the prior year period.
Aggregates sales volume increased 5.7% in the fourth quarter.
Organic aggregates sales volumes increased 2.8% reflecting
relatively accommodating weather conditions in many markets.
Average selling prices for aggregates increased 9.2%, maintaining
strong levels and reflecting the cumulative effects of multiple
pricing actions implemented in 2023.
Cement Business: Cement Segment net revenues
decreased 2.7% to $95.3 million in
the fourth quarter. Cement Segment adjusted cash gross profit
margin increased to 48.1% in the fourth quarter, compared to 47.1%
in the prior year period as strong pricing combined with Green
America Recycling performance and reduced mix of import volumes
relative to the prior year period more than offset
inflationary cost conditions. Sales volume of cement decreased
11.1% reflecting, in part, lower imports. Average selling prices
increased 9.4% in the fourth quarter due to the compounding effects
of pricing actions implemented earlier in 2023.
Products Business: Products net revenues were
$282.4 million in the fourth quarter,
up 27.5% versus the prior year period. Products adjusted cash gross
profit margin decreased to 16.5% in the fourth quarter. Organic
average sales price for ready-mix concrete increased 5.8% 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 4.8% due to reduced residential
activity. Organic average selling prices for asphalt increased
9.5%, due to pricing gains both the West and East Segment. Organic
asphalt sales volume increased 27.5%, fueled by public
infrastructure growth.
Full Year 2023 | Results By Reporting Segment
West Segment: The West Segment operating income
increased 19.8% to $217.8 million and
Adjusted EBITDA increased 18.0% to $331.1
million in 2023. Aggregates revenue in 2023 increased 10.8%
driven by a 16.7% increase in average sales prices that was only
partially offset by a 5.0% decrease in volume. Despite lower
volumes in Texas and Utah, ready-mix concrete revenue in 2023
increased 11.3% with average sales price growth of 11.0%, including
double-digit pricing growth in Houston and Salt
Lake City. Asphalt revenue increased by 34.0% as volumes
increased 17.4% and average selling prices increased 14.2% in
2023.
East Segment: The East Segment operating income
increased 34.2% to $86.6 million and
Adjusted EBITDA increased 16.6% to $150.6
million in 2023. Aggregates revenue increased 14.0%, driven
by 12.0% growth in average selling prices as volumes increased
1.8%. Ready-mix concrete revenue decreased 10.3% as volumes
decreased by 18.9% and average selling price increased 10.5%. Due
to divestitures, asphalt revenue decreased 56.7% with volumes down
59.7% and average selling prices up 15.1%.
Cement Segment: The Cement Segment operating
income increased 17.7% to $104.9
million. Adjusted EBITDA increased 14.7% to $144.0 million in 2023 as favorable supply/demand
conditions supported strong pricing growth that more than offset
cost inflation. The segment reported a decrease in sales volumes of
6.8% including the impact of lower import volume while average
selling prices increased of 13.2%.
Fourth Quarter 2023 | Results By Reporting
Segment
West Segment: The West Segment operating income
increased $9.6 million to
$47.8 million and Adjusted EBITDA of
$76.1 million in the fourth quarter
increased 17.2% versus the prior year period. Aggregates revenue
increased 13.9%, including 7.3% pricing growth led by Houston and British Columbia performance.
Volume growth of 6.1% includes the benefit of acquisitions and more
favorable weather conditions in key markets. Ready-mix concrete
revenue increased 26.2% as 5.4% pricing growth combined with 19.8%
volume growth. Asphalt revenue increased 51.3% due to volumes
growth of 39.3%, including organic growth of 31.2%. Asphalt pricing
increased 8.6% with strong gains in North
Texas and the Intermountain West.
East Segment: The East Segment operating income of
$17.9 million increased 17.5% versus
the prior year period and Adjusted EBITDA increased 12.6% to
$34.1 million. Aggregates revenue
increased 17.1% versus the prior year period. Organic aggregates
volumes increased 4.1%, primarily driven by double digit growth in
Georgia. Aggregates pricing
increased 11.3% with solid growth across several markets. Ready-mix
concrete revenue decreased 5.9% and asphalt revenue increased 1.7%
versus the prior year period.
Cement Segment: The Cement Segment operating income
decreased 5.8% to $31.6 million.
Adjusted EBITDA decreased $0.8
million and Adjusted EBITDA margin increased to 42.8%. As
noted above, in the fourth quarter, the Cement Segment reported a
volume decrease of 11.1% and average selling price growth of
9.4%.
Liquidity and Capital Resources
As of December 30, 2023, the
Company had $374.2 million in cash
and $2.3 billion in debt outstanding.
The Company's $800 million in
restricted cash reflects proceeds from the December 2023 issuance of senior notes due 2031
related to the transaction with Argos North America Corporation.
Subsequent to year end, the proceeds were released and used to
consummate the Argos USA
transaction.
In January 2024, the Company
amended the credit agreement governing the Senior Secured Credit
Facilities, which among other things established new term loans in
an aggregate principal amount of $1,010
million and extended the maturity date for the Term Loan
Facility to January 2029. The
proceeds of the new term loans were used to fund a portion of the
cash consideration in connection with the Argos USA closing, refinance the existing term loans
outstanding and pay fees, commissions and expenses. Additionally,
the Company amended its senior secured revolving credit facility,
increasing the total availability from $395
million to $625 million. The
Company's $625 million revolving
credit facility has $604.1 million
available after outstanding letters of credit.
For the year ended December 30,
2023, cash flow provided by operations was $438.9 million and cash paid for capital
expenditures was $255.6 million.
Webcast and Conference Call Information
Summit Materials will conduct a conference call on Thursday,
February 15, 2024, at 11:00 a.m.
eastern time (9:00 a.m. mountain
time) to review the Company's fourth quarter and full year
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 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/139533285.
To participate in the live teleconference for fourth quarter and
full year 2023 financial results:
Participant Toll Dial In:
1-646-968-2525
Participant Toll Free:
1-888-596-4144
Conference ID:
1542153
To listen to a replay of the teleconference, which will be
available through February 23,
2024:
US & Canada Toll-Free: 1-800-770-2030
Conference ID:
1542153
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, 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 30,
2023, 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;
- 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, including the integration of Argos USA, 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 qualified personnel;
- supply constraints or significant price fluctuations in the
electricity, natural gas, and petroleum-based resources that we
use, including diesel and liquid asphalt;
- climate change and climate change legislation or other
regulations;
- unexpected operational difficulties;
- costs associated with pending and future litigation;
- interruptions in our information technology systems and
infrastructure; including cybersecurity and data leakage
risks;
- potential labor disputes, strikes, other forms of work stoppage
or other union activities; and
- 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
Consolidated Statements
of Operations
($ in thousands, except
share and per share amounts)
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
December
30,
|
|
December
31,
|
|
December
30,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
(audited)
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
528,000
|
|
$
447,784
|
|
$
2,137,664
|
|
$
1,933,530
|
Service
|
|
85,133
|
|
63,878
|
|
305,072
|
|
288,554
|
Net revenue
|
|
613,133
|
|
511,662
|
|
2,442,736
|
|
2,222,084
|
Delivery and
subcontract revenue
|
|
47,000
|
|
40,612
|
|
176,732
|
|
190,438
|
Total
revenue
|
|
660,133
|
|
552,274
|
|
2,619,468
|
|
2,412,522
|
Cost of revenue
(excluding items shown separately below):
|
|
|
|
|
|
|
|
|
Product
|
|
362,355
|
|
302,056
|
|
1,448,654
|
|
1,344,944
|
Service
|
|
63,454
|
|
47,988
|
|
237,022
|
|
227,795
|
Net cost of
revenue
|
|
425,809
|
|
350,044
|
|
1,685,676
|
|
1,572,739
|
Delivery and
subcontract cost
|
|
47,000
|
|
40,612
|
|
176,732
|
|
190,438
|
Total cost of
revenue
|
|
472,809
|
|
390,656
|
|
1,862,408
|
|
1,763,177
|
General and
administrative expenses
|
|
59,626
|
|
49,963
|
|
210,357
|
|
186,860
|
Depreciation,
depletion, amortization and accretion
|
|
54,417
|
|
49,967
|
|
217,550
|
|
200,450
|
Transaction and
integration costs
|
|
7,295
|
|
721
|
|
26,813
|
|
3,358
|
Gain on sale of
property, plant and equipment
|
|
(2,503)
|
|
(4,077)
|
|
(8,290)
|
|
(10,370)
|
Operating
income
|
|
68,489
|
|
65,044
|
|
310,630
|
|
269,047
|
Interest
expense
|
|
30,820
|
|
24,241
|
|
114,155
|
|
86,969
|
Loss on debt
financings
|
|
—
|
|
1,737
|
|
493
|
|
1,737
|
Tax receivable
agreement (benefit) expense
|
|
(9,102)
|
|
612
|
|
(162,182)
|
|
1,566
|
(Gain) loss on sale of
businesses
|
|
(14,966)
|
|
1,984
|
|
(14,966)
|
|
(172,389)
|
Other income,
net
|
|
(6,563)
|
|
(5,368)
|
|
(21,334)
|
|
(10,324)
|
Income from operations
before taxes
|
|
68,300
|
|
41,838
|
|
394,464
|
|
361,488
|
Income tax
expense
|
|
64,915
|
|
11,512
|
|
104,838
|
|
85,545
|
Net income
|
|
3,385
|
|
30,326
|
|
289,626
|
|
275,943
|
Net income attributable
to Summit Holdings (1)
|
|
407
|
|
491
|
|
3,770
|
|
3,798
|
Net income
attributable to Summit Inc.
|
|
$
2,978
|
|
$
29,835
|
|
$
285,856
|
|
$
272,145
|
Earnings per share of
Class A common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.02
|
|
$
0.25
|
|
$
2.40
|
|
$
2.27
|
Diluted
|
|
$
0.02
|
|
$
0.25
|
|
$
2.39
|
|
$
2.26
|
Weighted average shares
of Class A common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
119,556,672
|
|
118,542,728
|
|
119,045,393
|
|
119,894,444
|
Diluted
|
|
120,361,499
|
|
119,159,955
|
|
119,774,766
|
|
120,628,459
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
December
30,
|
|
December
31,
|
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 374,162
|
|
$ 520,451
|
Restricted
cash
|
|
800,000
|
|
—
|
Accounts receivable,
net
|
|
287,252
|
|
256,669
|
Costs and estimated
earnings in excess of billings
|
|
10,289
|
|
6,510
|
Inventories
|
|
241,350
|
|
212,491
|
Other current
assets
|
|
17,937
|
|
20,787
|
Current assets held
for sale
|
|
1,134
|
|
1,468
|
Total current
assets
|
|
1,732,124
|
|
1,018,376
|
Property, plant and
equipment, net
|
|
1,976,820
|
|
1,813,702
|
Goodwill
|
|
1,224,861
|
|
1,132,546
|
Intangible assets,
net
|
|
68,081
|
|
71,384
|
Deferred tax
assets
|
|
52,009
|
|
136,986
|
Operating lease
right-of-use assets
|
|
36,553
|
|
37,889
|
Other assets
|
|
59,134
|
|
44,809
|
Total
assets
|
|
$ 5,149,582
|
|
$ 4,255,692
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
debt
|
|
$
3,822
|
|
$
5,096
|
Current portion of
acquisition-related liabilities
|
|
7,007
|
|
13,718
|
Accounts
payable
|
|
123,621
|
|
104,031
|
Accrued
expenses
|
|
171,691
|
|
119,967
|
Current operating
lease liabilities
|
|
8,596
|
|
7,296
|
Billings in excess of
costs and estimated earnings
|
|
8,228
|
|
5,739
|
Total current
liabilities
|
|
322,965
|
|
255,847
|
Long-term
debt
|
|
2,283,639
|
|
1,488,569
|
Acquisition-related
liabilities
|
|
28,021
|
|
29,051
|
Tax receivable
agreement liability
|
|
41,276
|
|
327,812
|
Noncurrent operating
lease liabilities
|
|
33,230
|
|
35,737
|
Other noncurrent
liabilities
|
|
123,871
|
|
106,686
|
Total
liabilities
|
|
2,833,002
|
|
2,243,702
|
Stockholders'
equity:
|
|
|
|
|
Class A common stock,
par value $0.01 per share; 1,000,000,000 shares
authorized,
119,529,380 and
118,408,655 shares issued and outstanding as of December 30,
2023 and
December 31, 2022,
respectively
|
|
1,196
|
|
1,185
|
Class B common stock,
par value $0.01 per share; 250,000,000 shares authorized, 99
shares
issued and outstanding
as of December 30, 2023 and December 31, 2022
|
|
—
|
|
—
|
Additional paid-in
capital
|
|
1,421,813
|
|
1,404,122
|
Accumulated
earnings
|
|
876,751
|
|
590,895
|
Accumulated other
comprehensive income
|
|
7,275
|
|
3,084
|
Stockholders'
equity
|
|
2,307,035
|
|
1,999,286
|
Noncontrolling
interest in Summit Holdings
|
|
9,545
|
|
12,704
|
Total stockholders'
equity
|
|
2,316,580
|
|
2,011,990
|
Total liabilities and
stockholders' equity
|
|
$ 5,149,582
|
|
$ 4,255,692
|
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
Consolidated Statements
of Cash Flows
($ in
thousands)
|
|
|
|
Year
ended
|
|
|
December
30,
|
|
December
31,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$ 289,626
|
|
$ 275,943
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation,
depletion, amortization and accretion
|
|
226,614
|
|
212,501
|
Share-based
compensation expense
|
|
20,326
|
|
18,347
|
Net gain on asset and
business disposals
|
|
(23,259)
|
|
(182,263)
|
Non-cash loss on debt
financings
|
|
161
|
|
915
|
Change in deferred tax
asset, net
|
|
79,142
|
|
69,568
|
Other
|
|
(482)
|
|
(1,447)
|
Decrease (increase) in
operating assets, net of acquisitions and dispositions:
|
|
|
|
|
Accounts receivable,
net
|
|
(26,224)
|
|
10,749
|
Inventories
|
|
(26,351)
|
|
(63,247)
|
Costs and estimated
earnings in excess of billings
|
|
(3,746)
|
|
(4,960)
|
Other current
assets
|
|
13,500
|
|
(7,368)
|
Other
assets
|
|
(33,347)
|
|
(6,946)
|
(Decrease) increase in
operating liabilities, net of acquisitions and
dispositions:
|
|
|
|
|
Accounts
payable
|
|
5,324
|
|
(9,218)
|
Accrued
expenses
|
|
42,327
|
|
(25,200)
|
Billings in excess of
costs and estimated earnings
|
|
2,477
|
|
(768)
|
Tax receivable
agreement (benefit) expense
|
|
(154,167)
|
|
1,264
|
Other
liabilities
|
|
26,939
|
|
(3,772)
|
Net cash provided by
operating activities
|
|
438,860
|
|
284,098
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisitions, net of
cash acquired
|
|
(239,508)
|
|
(22,730)
|
Purchases of property,
plant and equipment
|
|
(255,619)
|
|
(266,733)
|
Proceeds from the sale
of property, plant and equipment
|
|
14,424
|
|
15,374
|
Proceeds from sale of
businesses
|
|
65,576
|
|
373,073
|
Other
|
|
(5,137)
|
|
(3,162)
|
Net cash (used in)
provided by investing activities
|
|
(420,264)
|
|
95,822
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from debt
issuances
|
|
800,000
|
|
—
|
Debt issuance
costs
|
|
(5,599)
|
|
(1,557)
|
Payments on
debt
|
|
(10,380)
|
|
(122,536)
|
Purchase of tax
receivable agreement interests
|
|
(132,449)
|
|
—
|
Payments on
acquisition-related liabilities
|
|
(12,367)
|
|
(13,428)
|
Distributions from
partnership
|
|
(469)
|
|
(678)
|
Repurchases of common
stock
|
|
—
|
|
(100,980)
|
Proceeds from stock
option exercises
|
|
247
|
|
213
|
Other
|
|
(5,199)
|
|
(27)
|
Net cash provided by
(used in) financing activities
|
|
633,784
|
|
(238,993)
|
Impact of foreign
currency on cash
|
|
1,331
|
|
(1,437)
|
Net increase in cash
and cash equivalents and restricted cash
|
|
653,711
|
|
139,490
|
Cash and cash
equivalents and restricted cash—beginning of period
|
|
520,451
|
|
380,961
|
Cash and cash
equivalents and restricted cash—end of period
|
|
$ 1,174,162
|
|
$ 520,451
|
SUMMIT MATERIALS,
INC. AND SUBSIDIARIES
Unaudited Revenue Data
by Segment and Line of Business
($ in
thousands)
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
December
30,
|
|
December
31,
|
|
December
30,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Segment Net
Revenue:
|
|
|
|
|
|
|
|
|
West
|
|
$
377,369
|
|
$
288,881
|
|
$
1,472,871
|
|
$
1,272,041
|
East
|
|
140,425
|
|
124,836
|
|
587,215
|
|
592,307
|
Cement
|
|
95,339
|
|
97,945
|
|
382,650
|
|
357,736
|
Net Revenue
|
|
$
613,133
|
|
$
511,662
|
|
$
2,442,736
|
|
$
2,222,084
|
|
|
|
|
|
|
|
|
|
Line of Business - Net
Revenue:
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$
157,567
|
|
$
135,596
|
|
$
663,551
|
|
$
583,993
|
Cement (1)
|
|
88,031
|
|
90,660
|
|
355,786
|
|
332,518
|
Products
|
|
282,402
|
|
221,528
|
|
1,118,327
|
|
1,017,019
|
Total Materials and
Products
|
|
528,000
|
|
447,784
|
|
2,137,664
|
|
1,933,530
|
Services
|
|
85,133
|
|
63,878
|
|
305,072
|
|
288,554
|
Net Revenue
|
|
$
613,133
|
|
$
511,662
|
|
$
2,442,736
|
|
$
2,222,084
|
|
|
|
|
|
|
|
|
|
Line of Business - Net
Cost of Revenue:
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$ 80,772
|
|
$ 70,809
|
|
$
332,553
|
|
$
300,576
|
Cement
|
|
42,187
|
|
44,511
|
|
189,587
|
|
190,838
|
Products
|
|
235,791
|
|
183,548
|
|
914,384
|
|
842,890
|
Total Materials and
Products
|
|
358,750
|
|
298,868
|
|
1,436,524
|
|
1,334,304
|
Services
|
|
67,059
|
|
51,176
|
|
249,152
|
|
238,435
|
Net Cost of
Revenue
|
|
$
425,809
|
|
$
350,044
|
|
$
1,685,676
|
|
$
1,572,739
|
|
|
|
|
|
|
|
|
|
Line of Business -
Adjusted Cash Gross Profit (2):
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
$ 76,795
|
|
$ 64,787
|
|
$
330,998
|
|
$
283,417
|
Cement (3)
|
|
45,844
|
|
46,149
|
|
166,199
|
|
141,680
|
Products
|
|
46,611
|
|
37,980
|
|
203,943
|
|
174,129
|
Total Materials and
Products
|
|
169,250
|
|
148,916
|
|
701,140
|
|
599,226
|
Services
|
|
18,074
|
|
12,702
|
|
55,920
|
|
50,119
|
Adjusted Cash Gross
Profit
|
|
$
187,324
|
|
$
161,618
|
|
$
757,060
|
|
$
649,345
|
|
|
|
|
|
|
|
|
|
Adjusted Cash Gross
Profit Margin (2)
|
|
|
|
|
|
|
|
|
Materials
|
|
|
|
|
|
|
|
|
Aggregates
|
|
48.7 %
|
|
47.8 %
|
|
49.9 %
|
|
48.5 %
|
Cement (3)
|
|
48.1 %
|
|
47.1 %
|
|
43.4 %
|
|
39.6 %
|
Products
|
|
16.5 %
|
|
17.1 %
|
|
18.2 %
|
|
17.1 %
|
Services
|
|
21.2 %
|
|
19.9 %
|
|
18.3 %
|
|
17.4 %
|
Total Adjusted Cash
Gross Profit Margin
|
|
30.6 %
|
|
31.6 %
|
|
31.0 %
|
|
29.2 %
|
|
|
|
|
|
|
|
|
(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
|
|
Year
ended
|
Total
Volume
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
Aggregates
(tons)
|
|
13,784
|
|
13,036
|
|
58,406
|
|
59,525
|
Cement
(tons)
|
|
574
|
|
646
|
|
2,362
|
|
2,533
|
Ready-mix concrete
(cubic yards)
|
|
1,242
|
|
1,082
|
|
4,909
|
|
5,043
|
Asphalt
(tons)
|
|
920
|
|
683
|
|
3,725
|
|
3,724
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
Pricing
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
Aggregates (per
ton)
|
|
$ 13.87
|
|
$ 12.70
|
|
$
13.83
|
|
$
12.07
|
Cement (per
ton)
|
|
155.05
|
|
141.77
|
|
152.42
|
|
134.66
|
Ready-mix concrete
(per cubic yards)
|
|
155.10
|
|
146.01
|
|
151.79
|
|
136.47
|
Asphalt (per
ton)
|
|
82.76
|
|
76.71
|
|
83.97
|
|
72.65
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
Percentage Change
in
|
|
Percentage Change
in
|
Year over Year
Comparison
|
|
Volume
|
|
Pricing
|
|
Volume
|
|
Pricing
|
Aggregates (per
ton)
|
|
5.7 %
|
|
9.2 %
|
|
(1.9) %
|
|
14.6 %
|
Cement (per
ton)
|
|
(11.1) %
|
|
9.4 %
|
|
(6.8) %
|
|
13.2 %
|
Ready-mix concrete
(per cubic yards)
|
|
14.8 %
|
|
6.2 %
|
|
(2.7) %
|
|
11.2 %
|
Asphalt (per
ton)
|
|
34.7 %
|
|
7.9 %
|
|
— %
|
|
15.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
Percentage Change
in
|
|
Percentage Change
in
|
Year over Year
Comparison (Excluding acquisitions &
divestitures)
|
|
Volume
|
|
Pricing
|
|
Volume
|
|
Pricing
|
Aggregates (per
ton)
|
|
2.8 %
|
|
8.8 %
|
|
(3.1) %
|
|
14.2 %
|
Cement (per
ton)
|
|
(11.1) %
|
|
9.4 %
|
|
(6.8) %
|
|
13.2 %
|
Ready-mix concrete
(per cubic yards)
|
|
(4.8) %
|
|
5.8 %
|
|
(12.2) %
|
|
10.7 %
|
Asphalt (per
ton)
|
|
27.5 %
|
|
9.5 %
|
|
10.1 %
|
|
13.9 %
|
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
December 30, 2023
|
|
|
|
|
|
|
Gross Revenue
|
|
Intercompany
|
|
Net
|
|
|
Volumes
|
|
Pricing
|
|
by Product
|
|
Elimination/Delivery
|
|
Revenue
|
Aggregates
|
|
13,784
|
|
$
13.87
|
|
$
191,216
|
|
$
(33,649)
|
|
$
157,567
|
Cement
|
|
574
|
|
155.05
|
|
89,049
|
|
(1,018)
|
|
88,031
|
Materials
|
|
|
|
|
|
$
280,265
|
|
$
(34,667)
|
|
$
245,598
|
Ready-mix
concrete
|
|
1,242
|
|
155.10
|
|
192,591
|
|
(113)
|
|
192,478
|
Asphalt
|
|
920
|
|
82.76
|
|
76,119
|
|
(74)
|
|
76,045
|
Other
Products
|
|
|
|
|
|
77,175
|
|
(63,296)
|
|
13,879
|
Products
|
|
|
|
|
|
$
345,885
|
|
$
(63,483)
|
|
$
282,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December
30, 2023
|
|
|
|
|
|
|
Gross Revenue
|
|
Intercompany
|
|
Net
|
|
|
Volumes
|
|
Pricing
|
|
by Product
|
|
Elimination/Delivery
|
|
Revenue
|
Aggregates
|
|
58,406
|
|
$
13.83
|
|
$
807,473
|
|
$
(143,922)
|
|
$
663,551
|
Cement
|
|
2,362
|
|
152.42
|
|
359,965
|
|
(4,179)
|
|
355,786
|
Materials
|
|
|
|
|
|
$
1,167,438
|
|
$
(148,101)
|
|
$
1,019,337
|
Ready-mix
concrete
|
|
4,909
|
|
151.79
|
|
745,107
|
|
(956)
|
|
744,151
|
Asphalt
|
|
3,725
|
|
83.97
|
|
312,742
|
|
(358)
|
|
312,384
|
Other
Products
|
|
|
|
|
|
330,517
|
|
(268,725)
|
|
61,792
|
Products
|
|
|
|
|
|
$
1,388,366
|
|
$
(270,039)
|
|
$
1,118,327
|
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 months and
years ended December 30, 2023 and December 31, 2022.
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Three months ended
December 30, 2023
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 67,001
|
|
$
21,756
|
|
$ 37,045
|
|
$
(122,417)
|
|
$
3,385
|
Interest (income)
expense
|
|
(4,692)
|
|
(3,480)
|
|
(5,517)
|
|
44,509
|
|
30,820
|
Income tax
expense
|
|
1,303
|
|
—
|
|
—
|
|
63,612
|
|
64,915
|
Depreciation, depletion
and amortization
|
|
27,690
|
|
15,309
|
|
9,255
|
|
1,243
|
|
53,497
|
EBITDA
|
|
$ 91,302
|
|
$
33,585
|
|
$ 40,783
|
|
$
(13,053)
|
|
$
152,617
|
Accretion
|
|
392
|
|
508
|
|
20
|
|
—
|
|
920
|
Tax receivable
agreement benefit
|
|
—
|
|
—
|
|
—
|
|
(9,102)
|
|
(9,102)
|
Gain on sale of
businesses
|
|
(14,966)
|
|
—
|
|
—
|
|
—
|
|
(14,966)
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
5,210
|
|
5,210
|
Argos USA acquisition
and integration costs
|
|
—
|
|
—
|
|
—
|
|
7,732
|
|
7,732
|
Other
|
|
(633)
|
|
(42)
|
|
—
|
|
(5,191)
|
|
(5,866)
|
Adjusted
EBITDA
|
|
$ 76,095
|
|
$
34,051
|
|
$ 40,803
|
|
$
(14,404)
|
|
$
136,545
|
Adjusted EBITDA Margin
(1)
|
|
20.2 %
|
|
24.2 %
|
|
42.8 %
|
|
|
|
22.3 %
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Three months ended
December 31, 2022
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 42,729
|
|
$
16,955
|
|
$ 39,059
|
|
$
(68,417)
|
|
$ 30,326
|
Interest (income)
expense
|
|
(4,643)
|
|
(3,090)
|
|
(5,531)
|
|
37,505
|
|
24,241
|
Income tax
expense
|
|
478
|
|
—
|
|
—
|
|
11,034
|
|
11,512
|
Depreciation, depletion
and amortization
|
|
26,136
|
|
14,227
|
|
8,208
|
|
893
|
|
49,464
|
EBITDA
|
|
$ 64,700
|
|
$
28,092
|
|
$ 41,736
|
|
$
(18,985)
|
|
$
115,543
|
Accretion
|
|
261
|
|
415
|
|
(173)
|
|
—
|
|
503
|
Loss on debt
financings
|
|
—
|
|
—
|
|
—
|
|
1,737
|
|
1,737
|
Tax receivable
agreement expense
|
|
—
|
|
—
|
|
—
|
|
612
|
|
612
|
Loss on sale of
businesses
|
|
—
|
|
1,700
|
|
—
|
|
284
|
|
1,984
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
3,289
|
|
3,289
|
Other
|
|
(21)
|
|
47
|
|
—
|
|
(4,403)
|
|
(4,377)
|
Adjusted
EBITDA
|
|
$ 64,940
|
|
$
30,254
|
|
$ 41,563
|
|
$
(17,466)
|
|
$
119,291
|
Adjusted EBITDA Margin
(1)
|
|
22.5 %
|
|
24.2 %
|
|
42.4 %
|
|
|
|
23.3 %
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Year ended December
30, 2023
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
246,929
|
|
$
99,692
|
|
$
125,238
|
|
$
(182,233)
|
|
$
289,626
|
Interest (income)
expense
|
|
(15,469)
|
|
(12,187)
|
|
(20,505)
|
|
162,316
|
|
114,155
|
Income tax
expense
|
|
5,164
|
|
—
|
|
—
|
|
99,674
|
|
104,838
|
Depreciation, depletion
and amortization
|
|
110,140
|
|
60,763
|
|
39,228
|
|
4,287
|
|
214,418
|
EBITDA
|
|
$
346,764
|
|
$
148,268
|
|
$
143,961
|
|
$
84,044
|
|
$
723,037
|
Accretion
|
|
1,160
|
|
1,893
|
|
79
|
|
—
|
|
3,132
|
Loss on debt
financings
|
|
—
|
|
—
|
|
—
|
|
493
|
|
493
|
Tax receivable
agreement benefit
|
|
—
|
|
—
|
|
—
|
|
(162,182)
|
|
(162,182)
|
Gain on sale of
businesses
|
|
(14,966)
|
|
—
|
|
—
|
|
—
|
|
(14,966)
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
20,326
|
|
20,326
|
Argos USA acquisition
and integration costs
|
|
—
|
|
—
|
|
—
|
|
25,591
|
|
25,591
|
Other
|
|
(1,822)
|
|
448
|
|
—
|
|
(16,047)
|
|
(17,421)
|
Adjusted
EBITDA
|
|
$
331,136
|
|
$
150,609
|
|
$
144,040
|
|
$
(47,775)
|
|
$
578,010
|
Adjusted EBITDA Margin
(1)
|
|
22.5 %
|
|
25.6 %
|
|
37.6 %
|
|
|
|
23.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
|
|
Year ended December
31, 2022
|
by
Segment
|
|
West
|
|
East
|
|
Cement
|
|
Corporate
|
|
Consolidated
|
($
in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
196,586
|
|
$
118,635
|
|
$
110,017
|
|
$
(149,295)
|
|
$
275,943
|
Interest (income)
expense
|
|
(17,123)
|
|
(11,857)
|
|
(20,463)
|
|
136,412
|
|
86,969
|
Income tax expense
(benefit)
|
|
3,025
|
|
(106)
|
|
—
|
|
82,626
|
|
85,545
|
Depreciation, depletion
and amortization
|
|
96,939
|
|
61,697
|
|
35,968
|
|
3,233
|
|
197,837
|
EBITDA
|
|
$
279,427
|
|
$
168,369
|
|
$
125,522
|
|
$
72,976
|
|
$
646,294
|
Accretion
|
|
953
|
|
1,600
|
|
60
|
|
—
|
|
2,613
|
Loss on debt
financings
|
|
—
|
|
—
|
|
—
|
|
1,737
|
|
1,737
|
Tax receivable
agreement expense
|
|
—
|
|
—
|
|
—
|
|
1,566
|
|
1,566
|
Gain on sale of
businesses
|
|
—
|
|
(40,952)
|
|
—
|
|
(131,437)
|
|
(172,389)
|
Non-cash
compensation
|
|
—
|
|
—
|
|
—
|
|
18,347
|
|
18,347
|
Other
|
|
177
|
|
186
|
|
—
|
|
(7,055)
|
|
(6,692)
|
Adjusted
EBITDA
|
|
$
280,557
|
|
$
129,203
|
|
$
125,582
|
|
$
(43,866)
|
|
$
491,476
|
Adjusted EBITDA Margin
(1)
|
|
22.1 %
|
|
21.8 %
|
|
35.1 %
|
|
|
|
22.1 %
|
|
|
|
|
|
|
|
|
(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 months and years ended December 30,
2023 and December 31, 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
|
|
Year
ended
|
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
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.
|
|
$
2,978
|
|
$
0.02
|
|
$ 29,835
|
|
$
0.25
|
|
$
285,856
|
|
$
2.38
|
|
$
272,145
|
|
$
2.25
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
407
|
|
—
|
|
491
|
|
—
|
|
3,770
|
|
0.03
|
|
3,798
|
|
0.03
|
Argos USA acquisition
and integration costs
|
|
7,732
|
|
0.07
|
|
—
|
|
—
|
|
25,591
|
|
0.22
|
|
—
|
|
—
|
(Gain) loss on sale of
businesses, net of tax
|
|
(9,320)
|
|
(0.08)
|
|
5,601
|
|
0.05
|
|
(9,320)
|
|
(0.08)
|
|
(125,374)
|
|
(1.03)
|
Loss on debt
financings
|
|
—
|
|
—
|
|
1,737
|
|
0.01
|
|
493
|
|
—
|
|
1,737
|
|
0.01
|
Adjusted diluted net
income before tax related adjustments
|
|
1,797
|
|
0.01
|
|
37,664
|
|
0.31
|
|
306,390
|
|
2.55
|
|
152,306
|
|
1.26
|
Tax receivable
agreement (benefit) expense, net of tax
|
|
36,040
|
|
0.30
|
|
612
|
|
0.01
|
|
(117,040)
|
|
(0.97)
|
|
1,566
|
|
0.01
|
Adjusted diluted net
income
|
|
$ 37,837
|
|
$
0.31
|
|
$ 38,276
|
|
$
0.32
|
|
$
189,350
|
|
$
1.58
|
|
$
153,872
|
|
$
1.27
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Class A common
stock
|
|
119,470,163
|
|
|
|
118,399,588
|
|
|
|
118,952,933
|
|
|
|
119,747,056
|
|
|
LP Units
outstanding
|
|
796,165
|
|
|
|
1,312,006
|
|
|
|
1,180,354
|
|
|
|
1,313,203
|
|
|
Total equity
units
|
|
120,266,328
|
|
|
|
119,711,594
|
|
|
|
120,133,287
|
|
|
|
121,060,259
|
|
|
The following table reconciles operating income to Adjusted Cash
Gross Profit and Adjusted Cash Gross Profit Margin for the three
months and years ended December 30,
2023 and December 31,
2022.
|
|
Three months
ended
|
|
Year
ended
|
|
|
December
30,
|
|
December
31,
|
|
December
30,
|
|
December
31,
|
Reconciliation of Operating Income
to Adjusted Cash Gross Profit
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
($
in thousands)
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$ 68,489
|
|
$ 65,044
|
|
$
310,630
|
|
$
269,047
|
General and
administrative expenses
|
|
59,626
|
|
49,963
|
|
210,357
|
|
186,860
|
Depreciation,
depletion, amortization and accretion
|
|
54,417
|
|
49,967
|
|
217,550
|
|
200,450
|
Transaction and
integration costs
|
|
7,295
|
|
721
|
|
26,813
|
|
3,358
|
Gain on sale of
property, plant and equipment
|
|
(2,503)
|
|
(4,077)
|
|
(8,290)
|
|
(10,370)
|
Adjusted Cash Gross
Profit (exclusive of items shown separately)
|
|
$
187,324
|
|
$
161,618
|
|
$
757,060
|
|
$
649,345
|
Adjusted Cash Gross
Profit Margin (exclusive of items shown separately) (1)
|
|
30.6 %
|
|
31.6 %
|
|
31.0 %
|
|
29.2 %
|
|
|
|
|
|
|
|
|
(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 months and years ended
December 30, 2023 and December 31, 2022.
|
|
Three months
ended
|
|
Year
ended
|
|
|
December
30,
|
|
December
31,
|
|
December
30,
|
|
December
31,
|
($
in thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
|
$
3,385
|
|
$
30,326
|
|
$ 289,626
|
|
$ 275,943
|
Non-cash
items
|
|
100,822
|
|
64,719
|
|
302,502
|
|
117,621
|
Net income adjusted
for non-cash items
|
|
104,207
|
|
95,045
|
|
592,128
|
|
393,564
|
Change in working
capital accounts
|
|
91,029
|
|
56,862
|
|
(153,268)
|
|
(109,466)
|
Net cash provided by
operating activities
|
|
195,236
|
|
151,907
|
|
438,860
|
|
284,098
|
Capital expenditures,
net of asset sales
|
|
(68,773)
|
|
(70,649)
|
|
(241,195)
|
|
(251,359)
|
Free cash
flow
|
|
$ 126,463
|
|
$
81,258
|
|
$ 197,665
|
|
$
32,739
|
Contact:
Andy Larkin
VP, Investor Relations
andy.larkin@summit-materials.com
720-618-6013
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SOURCE Summit Materials, Inc.