Summit Materials, Inc. Reports Third Quarter 2024 Results
Summit Materials (NYSE: SUM) reported Q3 2024 results with net revenue up 49.9% to $1.11 billion and operating income increasing 52.1% to $194.7 million. Despite weather challenges, the company achieved record EBITDA margins. However, net income declined 54.8% to $105.2 million, and basic EPS fell 68.9% to $0.60. The company refined its 2024 Adjusted EBITDA guidance to $970-$1,000 million, with projected capital expenditures of $390-$410 million. Summit maintains a strong financial position with nearly $740 million in cash on hand.
Summit Materials (NYSE: SUM) ha riportato i risultati del terzo trimestre 2024 con un incremento del fatturato netto del 49,9% a 1,11 miliardi di dollari e un aumento del reddito operativo del 52,1% a 194,7 milioni di dollari. Nonostante le difficoltà legate al clima, l'azienda ha raggiunto margini EBITDA record. Tuttavia, l'utile netto è diminuito del 54,8% a 105,2 milioni di dollari, e l'EPS base è sceso del 68,9% a 0,60 dollari. L'azienda ha aggiornato la sua previsione per l'EBITDA rettificato 2024 a 970-1.000 milioni di dollari, con spese in conto capitale previste tra 390 e 410 milioni di dollari. Summit mantiene una solida posizione finanziaria con quasi 740 milioni di dollari in cassa.
Summit Materials (NYSE: SUM) reportó los resultados del tercer trimestre de 2024 con un aumento del 49,9% en los ingresos netos hasta 1.11 mil millones de dólares y un incremento del 52,1% en el ingreso operativo hasta 194,7 millones de dólares. A pesar de los desafíos climáticos, la empresa logró márgenes EBITDA récord. Sin embargo, el ingreso neto cayó un 54,8% a 105,2 millones de dólares, y el EPS básico disminuyó un 68,9% a 0,60 dólares. La empresa ajustó su guía de EBITDA ajustado para 2024 a 970-1,000 millones de dólares, con gastos de capital proyectados de 390-410 millones de dólares. Summit mantiene una posición financiera sólida con cerca de 740 millones de dólares en efectivo disponible.
Summit Materials (NYSE: SUM)는 2024년 3분기 실적을 발표하며 순매출이 49.9% 증가하여 11억 1천만 달러, 영업 수익이 52.1% 증가하여 1억 9천4백7십만 달러에 달했다고 보고했습니다. 날씨 문제에도 불구하고 회사는 기록적인 EBITDA 마진을 달성했습니다. 그러나 순이익은 54.8% 감소하여 1억 5백2십만 달러에 이르렀고, 기본 EPS는 68.9% 감소하여 0.60 달러에 그쳤습니다. 회사는 2024년 조정 EBITDA 지침을 970억-1,000억 달러로 수정했으며, 예상 자본 지출은 3억9천만-4억1천만 달러입니다. Summit은 약 7억 4천만 달러의 현금을 보유하여 강력한 재무 상태를 유지하고 있습니다.
Summit Materials (NYSE: SUM) a annoncé les résultats du troisième trimestre 2024 avec une augmentation de 49,9% des revenus nets atteignant 1,11 milliard de dollars et une hausse de 52,1% du revenu opérationnel à 194,7 millions de dollars. Malgré les défis météorologiques, l'entreprise a atteint des marges EBITDA record. Cependant, le revenu net a chuté de 54,8% à 105,2 millions de dollars, tandis que le BPA de base a diminué de 68,9% à 0,60 dollar. L'entreprise a ajusté ses prévisions d'EBITDA ajusté pour 2024 entre 970 et 1 000 millions de dollars, avec des dépenses d'investissement projetées de 390 à 410 millions de dollars. Summit maintient une solide position financière avec près de 740 millions de dollars en liquidités.
Summit Materials (NYSE: SUM) hat die Ergebnisse für das 3. Quartal 2024 bekanntgegeben, mit einem Anstieg des Nettoumsatzes um 49,9% auf 1,11 Milliarden Dollar und einem Anstieg des operativen Einkommens um 52,1% auf 194,7 Millionen Dollar. Trotz wetterbedingter Herausforderungen erzielte das Unternehmen Rekord-EBITDA-Margen. Allerdings verringerte sich der Nettogewinn um 54,8% auf 105,2 Millionen Dollar, und der Basis-EPS fiel um 68,9% auf 0,60 Dollar. Das Unternehmen hat seine Prognose für das bereinigte EBITDA 2024 auf 970 bis 1.000 Millionen Dollar angepasst, mit geplanten Investitionsausgaben von 390 bis 410 Millionen Dollar. Summit hält eine starke finanzielle Position mit fast 740 Millionen Dollar in bar.
- Net revenue increased 49.9% to $1.11 billion
- Operating income grew 52.1% to $194.7 million
- Adjusted EBITDA rose 50.9% to $314.7 million
- Strong cash position with $740 million on hand
- Increased Adjusted EBITDA margin expectations to at least 24% for 2024
- Net income decreased 54.8% to $105.2 million
- Basic EPS declined 68.9% to $0.60
- Adjusted Diluted EPS fell 7.4% to $0.75
- Weather conditions negatively impacted volumes
- Refined guidance midpoint lowered to $985 million
Insights
Summit Materials delivered a mixed Q3 2024 performance with notable revenue growth but challenging bottom-line results.
The refined 2024 EBITDA guidance of
The materials-led strategy is showing resilience, though volume challenges persist. Capital expenditure guidance of
Pricing Momentum Continues
Sets ELEVATE Summit Record for Quality of Earnings
Refining 2024 Guidance
Three months ended | ||||||
($ in thousands, except per share amounts) | September 28, | September 30, | % Chg vs. PY | |||
Net revenue | $ 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
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
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
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
Operating income increased in the third quarter by
Net income attributable to Summit Inc. decreased to
Adjusted EBITDA increased
Third Quarter 2024 | Results by Line of Business
Aggregates Business: Aggregates net revenues increased by
Cement Business: Cement Segment net revenues increased to
Products Business: Products net revenues were
Third Quarter 2024 | Results By Reporting Segment
West Segment: The West Segment operating income increased
East Segment: The East Segment operating income increased
Cement Segment: The Cement Segment operating income increased
Liquidity and Capital Resources
As of September 28, 2024, the Company had
For the nine months ended September 28, 2024, cash flow provided by operations was
As of September 28, 2024, approximately
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
To participate in the live teleconference for third quarter 2024 financial results: | |
North America Toll-Free: | 1-888-330-3416 |
International Toll: | 1-646-960-0820 |
Conference ID: | 1542153 |
Password: | Summit |
To listen to a replay of the teleconference, which will be available through November 7, 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
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
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
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
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 - | 4,293,472 | 1,976,820 | ||
Goodwill | 2,069,495 | 1,224,861 | ||
Intangible assets, less accumulated amortization (September 28, 2024 - | 157,269 | 68,081 | ||
Deferred tax assets, less valuation allowance (September 28, 2024 - | — | 52,009 | ||
Operating lease right-of-use assets | 83,012 | 36,553 | ||
Other assets | 108,543 | 59,134 | ||
Total assets | ||||
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 | 1,757 | 1,196 | ||
Class B common stock, par value | — | — | ||
Preferred Stock, par value | — | — | ||
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 |
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)
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Three months ended | Nine months ended | |||||||
Total Volume | September 28, | September 30, | September 28, | September 30, | ||||
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, | September 30, | September 28, | September 30, | ||||
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)
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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)
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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 | $ 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 | — | 261 | 1,032 | 11,529 | 12,822 | |||||
Other (3) | (511) | 244 | — | (7,646) | (7,913) | |||||
Adjusted EBITDA | $ 128,381 | $ 70,316 | $ 140,079 | $ 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 | — | — | — | 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 | — | 323 | 1,142 | 82,388 | 83,853 | |||||
Other (3) | (1,507) | 732 | — | (20,286) | (21,061) | |||||
Adjusted EBITDA | $ 273,366 | $ 178,346 | $ 340,302 | $ 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 | $ 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 | — | — | — | 17,859 | 17,859 | |||||
Other (3) | (1,189) | 490 | — | (10,856) | (11,555) | |||||
Adjusted EBITDA | $ 255,041 | $ 116,558 | $ 103,237 | $ 441,465 | ||||||
Adjusted EBITDA Margin (1) | 23.3 % | 26.1 % | 35.9 % | 24.1 % |
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(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.
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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 | Net Income | Per Equity | Net Income | Per Equity | Net Income | Per Equity | ||||||||
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 | 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.
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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.
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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.
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