10-Q 1 sum-20160702x10q.htm 10-Q sum_Current Folio_10Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


(Mark One)

 

 

 

    

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended July 2, 2016

 

OR

 

 

 

 

    

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                      to                       

 

Commission file numbers:

001-36873 (Summit Materials, Inc.)

333-187556 (Summit Materials, LLC)


SUMMIT MATERIALS, INC.

SUMMIT MATERIALS, LLC

(Exact name of registrants as specified in their charters)


 

 

 

Delaware (Summit Materials, Inc.)

47-1984212

Delaware (Summit Materials, LLC)

26-4138486

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

1550 Wynkoop Street, 3rd Floor

Denver, Colorado

80202

(Address of principal executive offices)

(Zip Code)

 

Registrants’ telephone number, including area code: (303) 893-0012


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Summit Materials, Inc.

Yes  

    

No  

Summit Materials, LLC

Yes  

    

No  

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

Summit Materials, Inc.

Yes  

    

No  

Summit Materials, LLC

Yes  

    

No  

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Summit Materials, Inc.

 

Large accelerated filer    

    

 

Accelerated filer

Non-accelerated filer      

 

(Do not check if a smaller reporting company)

Smaller reporting company

 

Summit Materials, LLC

 

Large accelerated filer    

    

 

Accelerated filer

Non-accelerated filer      

 

(Do not check if a smaller reporting company)

Smaller reporting company

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Summit Materials, Inc.

Yes  

    

No  

Summit Materials, LLC

Yes  

    

No  

 

As of July 27, 2016, the number of shares of Summit Materials, Inc.’s outstanding Class A and Class B common stock, par value $0.01 per share for each class, was 75,430,986 and 28,661,526, respectively.

 

As of July 27, 2016, 100% of Summit Materials, LLC’s outstanding limited liability company interests were held by Summit Materials Intermediate Holdings, LLC, its sole member and an indirect subsidiary of Summit Materials, Inc.

 

 


 

EXPLANATORY NOTE

 

This quarterly report on Form 10-Q (this “report”) is a combined quarterly report being filed separately by two registrants: Summit Materials, Inc. and Summit Materials, LLC. Each registrant hereto is filing on its own behalf all of the information contained in this report that relates to such registrant. Each registrant hereto is not filing any information that does not relate to such registrant, and therefore makes no representation as to any such information. We believe that combining the quarterly reports on Form 10-Q of Summit Materials, Inc. and Summit Materials, LLC into this single report eliminates duplicative and potentially confusing disclosure and provides a more streamlined presentation since a substantial amount of the disclosure applies to both registrants.

 

Unless stated otherwise or the context requires otherwise, references to “Summit Inc.” mean Summit Materials, Inc., a Delaware corporation, and references to “Summit LLC” mean Summit Materials, LLC, a Delaware limited liability company. The references to Summit Inc. and Summit LLC are used in cases where it is important to distinguish between them. We use the terms “we,” “our,” “us” or “the Company” to refer to Summit Inc. and Summit LLC together with their respective subsidiaries, unless otherwise noted or the context otherwise requires.

 

Summit Inc. was formed on September 23, 2014 to be a holding company. As of July 2, 2016, its sole material asset was a 62.9% economic interest in Summit Materials Holdings L.P. (“Summit Holdings”). Summit Inc. has 100% of the voting rights of Summit Holdings, which is the indirect parent of Summit LLC. Summit LLC is a co-issuer of our outstanding 8 1/2% senior notes due 2022 (“2022 Notes”) and our 61/8% senior notes due 2023 (“2023 Notes” and collectively with the 2022 Notes, the "Senior Notes"). Summit Inc.’s only revenue for the three and six months ended July 2, 2016 was that generated by Summit LLC and its consolidated subsidiaries. Summit Inc. controls all of the business and affairs of Summit Holdings and, in turn, Summit LLC, as a result of its reorganization into a holding corporation structure consummated in connection with the initial public offering of its Class A common stock on March 11, 2015 (“IPO”).

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This report 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,” “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 January 2, 2016 (the “Annual Report”), as filed with the Securities and Exchange Commission (the “SEC”), any factors discussed in the section entitled “Risk Factors” of this report, 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, successfully integrate acquisitions with our existing operations and retain key employees of acquired businesses;

 

·

our dependence on securing and permitting aggregate reserves in strategically located areas;

 

·

declines in public infrastructure construction and reductions in governmental funding, including the funding by transportation authorities and other state agencies;

 

·

environmental, health, safety and climate change laws or governmental requirements or policies concerning zoning and land use;

 

·

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;

 

·

our substantial current level of indebtedness;

 

·

our dependence on senior management and other key personnel; and

 

·

interruptions in our information technology systems and infrastructure.

 

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 report. 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.

 

CERTAIN DEFINITIONS

 

As used in this report, unless otherwise noted or the context otherwise requires:

 

·

"Finance Corp." refers to Summit Materials Finance Corp., an indirect wholly-owned subsidiary of Summit LLC and the co-issuer of the Senior Notes;

 

·

the “Issuers” refers to Summit LLC and Finance Corp. as co-issuers of the Senior Notes but not to any of their subsidiaries;

 

·

“Continental Cement” refers to Continental Cement Company, L.L.C.;

 

·

“Harper Contracting” refers collectively to substantially all the assets of Harper Contracting, Inc., Harper Sand and Gravel, Inc., Harper Excavating, Inc., Harper Ready Mix Company, Inc. and Harper Investments, Inc.;

 

·

“Lafarge” refers to Lafarge North America Inc.;

 


 

·

“Mainland” refers to Mainland Sand & Gravel ULC, which is the surviving entity from the acquisition of Rock Head Holdings Ltd., B.I.M Holdings Ltd., Carlson Ventures Ltd., Mainland Sand and Gravel Ltd. and Jamieson Quarries Ltd.; 

 

·

“Lewis & Lewis” refers to Lewis & Lewis, Inc.;

 

·

“Davenport Assets” refers to a cement plant and quarry in Davenport, Iowa and seven cement distribution terminals along the Mississippi River;

 

·

“LeGrand” refers to LeGrand Johnson Construction Co.;

 

·

“Pelican” refers to Pelican Asphalt Company, LLC;

 

·

“AMC" refers to American Materials Company;

 

·

“Boxley” refers to Boxley Materials Company;

 

·

Sierra refers to Sierra Ready Mix, LLC;

 

·

"Oldcastle Assets" refers to the seven aggregates quarries located in central and northwest Missouri acquired from APAC-Kansas, Inc. and APAC-Missouri, Inc., subsidiaries of Oldcastle, Inc.;

 

·

“Blackstone” refers to investment funds associated with or designated by The Blackstone Group L.P. and its affiliates;

 

·

“Silverhawk” refers to certain investment funds affiliated with Silverhawk Summit, L.P.;

 

·

“Sponsors” refers to Blackstone and Silverhawk; and

 

·

“EBITDA” refers to net loss before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense.

 


 

Corporate Structure

The following chart summarizes our organizational structure, equity ownership and our principal indebtedness as of July 2, 2016. This chart is provided for illustrative purposes only and does not show all of our legal entities or all obligations of such entities.

Picture 7

 


 


(1)

SEC registrant.

(2)

Affiliates of Blackstone indirectly held shares of Class B common stock of Summit Inc. that provided them with approximately 37.1% of the combined voting power of Summit Inc.’s outstanding Class A and Class B common stock as of July 2, 2016.

(3)

Guarantor under the senior secured credit facilities, but not the Senior Notes.

(4)

Summit LLC and Finance Corp. are the issuers of the Senior Notes and Summit LLC is the borrower under our senior secured credit facilities. Finance Corp. is an indirect wholly-owned subsidiary of Summit LLC and was formed solely for the purpose of serving as co-issuer of certain indebtedness, including the Senior Notes. Finance Corp. does not and will not have operations of any kind and does not and will not have revenue or assets other than as may be incidental to its activities as a co-issuer of the Senior Notes.

 

 


 

SUMMIT MATERIALS, INC.

SUMMIT MATERIALS, LLC

 

FORM 10-Q

 

TABLE OF CONTENTS

 

 

 

Page No.

PART I—Financial Information 

 

 

 

 

Item 1. 

Financial Statements for Summit Materials, Inc.

 

 

 

 

Consolidated Balance Sheets as of July 2, 2016 (unaudited) and January 2, 2016

 

 

 

 

Unaudited Consolidated Statements of Operations for the three and six months ended July 2, 2016 and June 27, 2015

 

 

 

 

Unaudited Consolidated Statements of Comprehensive Operations for the three and six months ended July 2, 2016 and June 27, 2015

 

 

 

 

Unaudited Consolidated Statements of Cash Flows for the six months ended July 2, 2016 and June 27, 2015

 

 

 

 

Unaudited Consolidated Statements of Changes in Stockholders Equity and Redeemable Noncontrolling Interest for the six months ended July 2, 2016 and June 27, 2015

 

 

 

 

Notes to Unaudited Consolidated Financial Statements

 

 

 

 

Financial Statements for Summit Materials, LLC

23 

 

 

 

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24 

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk

41 

 

 

 

Item 4. 

Controls and Procedures

41 

 

 

 

PART II — Other Information 

 

 

 

 

Item 1. 

Legal Proceedings

43 

 

 

 

Item 1A. 

Risk Factors

43 

 

 

 

Item 2. 

Unregistered Sales of Equity Securities and Use of Proceeds

43 

 

 

 

Item 3. 

Defaults Upon Senior Securities

43 

 

 

 

Item 4. 

Mine Safety Disclosures

43 

 

 

 

Item 5. 

Other Information

43 

 

 

 

Item 6. 

Exhibits

45 

 

 

SIGNATURES 

47 

 

 

 

 


 

PART I—FINANCIAL INFORMATION

 

ITEM 1.FINANCIAL STATEMENTS

 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets 

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

July 2,

 

January 2,

 

 

 

2016

 

2016

 

 

    

(unaudited)

    

(audited)

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

9,168

 

$

186,405

 

Accounts receivable, net

 

 

213,048

 

 

145,544

 

Costs and estimated earnings in excess of billings

 

 

29,026

 

 

5,690

 

Inventories

 

 

174,739

 

 

130,082

 

Other current assets

 

 

8,040

 

 

4,807

 

Total current assets

 

 

434,021

 

 

472,528

 

Property, plant and equipment, less accumulated depreciation, depletion and amortization (July 2, 2016 - $422,017 and January 2, 2016 - $366,505)

 

 

1,439,194

 

 

1,269,006

 

Goodwill

 

 

757,658

 

 

596,397

 

Intangible assets, less accumulated amortization (July 2, 2016 - $6,577 and January 2, 2016 - $5,237)

 

 

25,582

 

 

15,005

 

Other assets

 

 

46,040

 

 

43,243

 

Total assets

 

$

2,702,495

 

$

2,396,179

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Current portion of debt

 

$

20,500

 

$

6,500

 

Current portion of acquisition-related liabilities

 

 

17,731

 

 

20,584

 

Accounts payable

 

 

103,624

 

 

81,397

 

Accrued expenses

 

 

106,960

 

 

92,942

 

Billings in excess of costs and estimated earnings

 

 

9,695

 

 

13,081

 

Total current liabilities

 

 

258,510

 

 

214,504

 

Long-term debt

 

 

1,516,733

 

 

1,273,652

 

Acquisition-related liabilities

 

 

32,533

 

 

39,977

 

Other noncurrent liabilities

 

 

116,461

 

 

100,186

 

Total liabilities

 

 

1,924,237

 

 

1,628,319

 

Commitments and contingencies (see note 11)

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 62,930,986 and 49,745,944 shares issued and outstanding as of July 2, 2016 and January 2, 2016, respectively

 

 

630

 

 

497

 

Class B common stock, par value $0.01 per share; 250,000,000 shares authorized, 69,007,297 shares issued and outstanding as of July 2, 2016 and January 2, 2016

 

 

690

 

 

690

 

Additional paid-in capital

 

 

681,334

 

 

619,003

 

Accumulated earnings

 

 

1,439

 

 

10,870

 

Accumulated other comprehensive loss

 

 

(1,981)

 

 

(2,795)

 

Stockholders’ equity

 

 

682,112

 

 

628,265

 

Noncontrolling interest in consolidated subsidiaries

 

 

1,327

 

 

1,362

 

Noncontrolling interest in Summit Holdings

 

 

94,819

 

 

138,233

 

Total stockholders’ equity

 

 

778,258

 

 

767,860

 

Total liabilities and stockholders’ equity

 

$

2,702,495

 

$

2,396,179

 

 

See notes to unaudited consolidated financial statements.

 

1


 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Operations 

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

 

July 2,

 

June 27,

 

July 2,

 

June 27,

 

 

    

2016

    

2015

    

2016

    

2015

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

341,341

 

$

261,270

 

$

521,443

 

$

410,190

 

Service

 

 

71,295

 

 

67,739

 

 

99,232

 

 

93,958

 

Net revenue

 

 

412,636

 

 

329,009

 

 

620,675

 

 

504,148

 

Delivery and subcontract revenue

 

 

32,638

 

 

35,934

 

 

52,978

 

 

54,782

 

Total revenue

 

 

445,274

 

 

364,943

 

 

673,653

 

 

558,930

 

Cost of revenue (excluding items shown separately below):

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

202,091

 

 

163,632

 

 

334,585

 

 

283,423

 

Service

 

 

50,471

 

 

49,604

 

 

74,525

 

 

69,234

 

Net cost of revenue

 

 

252,562

 

 

213,236

 

 

409,110

 

 

352,657

 

Delivery and subcontract cost

 

 

32,638

 

 

35,934

 

 

52,978

 

 

54,782

 

Total cost of revenue

 

 

285,200

 

 

249,170

 

 

462,088

 

 

407,439

 

General and administrative expenses

 

 

75,644

 

 

39,711

 

 

121,014

 

 

106,945

 

Depreciation, depletion, amortization and accretion

 

 

37,408

 

 

27,386

 

 

69,768

 

 

53,512

 

Transaction costs

 

 

290

 

 

6,376

 

 

3,606

 

 

7,740

 

Operating income (loss)

 

 

46,732

 

 

42,300

 

 

17,177

 

 

(16,706)

 

Other expense, net

 

 

666

 

 

102

 

 

234

 

 

493

 

Loss on debt financings

 

 

 —

 

 

30,873

 

 

 —

 

 

31,672

 

Interest expense

 

 

25,617

 

 

17,395

 

 

47,194

 

 

41,504

 

Income (loss) from operations before taxes

 

 

20,449

 

 

(6,070)

 

 

(30,251)

 

 

(90,375)

 

Income tax benefit

 

 

(1,056)

 

 

(5,345)

 

 

(9,222)

 

 

(9,813)

 

Income (loss) from continuing operations

 

 

21,505

 

 

(725)

 

 

(21,029)

 

 

(80,562)

 

Income from discontinued operations

 

 

 —

 

 

(758)

 

 

 —

 

 

(758)

 

Net income (loss)

 

 

21,505

 

 

33

 

 

(21,029)

 

 

(79,804)

 

Net income (loss) attributable to noncontrolling interest in subsidiaries

 

 

44

 

 

13

 

 

(35)

 

 

(1,969)

 

Net income (loss) attributable to Summit Holdings

 

 

8,090

 

 

225

 

 

(13,247)

 

 

(67,479)

 

Net income (loss) attributable to Summit Inc.

 

$

13,371

 

$

(205)

 

$

(7,747)

 

$

(10,356)

 

Net income (loss) per share of Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.22

 

$

(0.01)

 

$

(0.14)

 

$

(0.38)

 

Diluted

 

$

0.21

 

$

(0.01)

 

$

(0.20)

 

$

(0.39)

 

Weighted average shares of Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

61,607,457

 

 

27,319,846

 

 

55,677,214

 

 

27,319,846

 

Diluted

 

 

62,758,217

 

 

27,319,846

 

 

99,818,541

 

 

29,145,998

 

 

See notes to unaudited consolidated financial statements.

 

2


 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Comprehensive Operations

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

 

July 2,

 

June 27,

 

July 2,

 

June 27,

 

 

    

2016

    

2015

    

2016

    

2015

 

Net income (loss)

 

$

21,505

 

$

33

 

$

(21,029)

 

$

(79,804)

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

635

 

 

1,064

 

 

5,277

 

 

(5,235)

 

Loss on cash flow hedges

 

 

(1,058)

 

 

 —

 

 

(3,292)

 

 

 —

 

Other comprehensive (loss) income

 

 

(423)

 

 

1,064

 

 

1,985

 

 

(5,235)

 

Comprehensive income (loss)

 

 

21,082

 

 

1,097

 

 

(19,044)

 

 

(85,039)

 

Less comprehensive income (loss) attributable to the noncontrolling interest in consolidated subsidiaries

 

 

44

 

 

13

 

 

(35)

 

 

(1,969)

 

Less comprehensive income (loss) attributable to Summit Holdings

 

 

8,051

 

 

225

 

 

(12,076)

 

 

(72,728)

 

Comprehensive income (loss) attributable to Summit Inc.

 

$

12,987

 

$

859

 

$

(6,933)

 

$

(10,342)

 

 

See notes to unaudited consolidated financial statements.

 

 

3


 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Cash Flows

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

 

 

July 2,

 

June 27,

 

 

    

2016

    

2015

 

Cash flow from operating activities:

 

 

 

 

 

 

 

Net loss

 

$

(21,029)

 

$

(79,804)

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

 

76,252

 

 

57,131

 

Share-based compensation expense

 

 

29,817

 

 

17,020

 

Deferred income tax (benefit) expense

 

 

(10,040)

 

 

23

 

Net gain on asset disposals

 

 

(3,717)

 

 

(3,487)

 

Net gain on debt financings

 

 

 -

 

 

(6,926)

 

Other

 

 

129

 

 

1,185

 

(Increase) decrease in operating assets, net of acquisitions:

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(55,489)

 

 

(21,535)

 

Inventories

 

 

(27,948)

 

 

(16,555)

 

Costs and estimated earnings in excess of billings

 

 

(24,542)

 

 

(14,505)

 

Other current assets

 

 

(2,646)

 

 

(2,779)

 

Other assets

 

 

(367)

 

 

53

 

Increase (decrease) in operating liabilities, net of acquisitions:

 

 

 

 

 

 

 

Accounts payable

 

 

9,682

 

 

3,105

 

Accrued expenses

 

 

10,343

 

 

(11,161)

 

Billings in excess of costs and estimated earnings

 

 

(3,523)

 

 

(875)

 

Other liabilities

 

 

(3,422)

 

 

(1,114)

 

Net cash used in operating activities

 

 

(26,500)

 

 

(80,224)

 

Cash flow from investing activities:

 

 

 

 

 

 

 

Acquisitions, net of cash acquired

 

 

(296,664)

 

 

(15,863)

 

Purchases of property, plant and equipment

 

 

(91,669)

 

 

(43,379)

 

Proceeds from the sale of property, plant and equipment

 

 

9,442

 

 

6,039

 

Other

 

 

1,500

 

 

610

 

Net cash used for investing activities

 

 

(377,391)

 

 

(52,593)

 

Cash flow from financing activities:

 

 

 

 

 

 

 

Proceeds from equity offerings

 

 

 -

 

 

460,000

 

Capital issuance costs

 

 

(136)

 

 

(36,398)

 

Proceeds from stock option exercises

 

 

113

 

 

 -

 

Proceeds from debt issuances

 

 

321,000

 

 

242,000

 

Debt issuance costs

 

 

(5,110)

 

 

(5,130)

 

Payments on debt

 

 

(63,676)

 

 

(469,628)

 

Purchase of noncontrolling interests

 

 

 -

 

 

(35,000)

 

Payments on acquisition-related liabilities

 

 

(25,662)

 

 

(11,970)

 

Distributions from partnership

 

 

(373)

 

 

(11,842)

 

Net cash provided by financing activities

 

 

226,156

 

 

132,032

 

Impact of foreign currency on cash

 

 

498

 

 

140

 

Net decrease in cash

 

 

(177,237)

 

 

(645)

 

Cash and cash equivalents—beginning of period

 

 

186,405

 

 

13,215

 

Cash and cash equivalents—end of period

 

$

9,168

 

$

12,570

 

 

See notes to unaudited consolidated financial statements.

 

 

 

4


 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Changes in Stockholders’ Equity and Redeemable Noncontrolling Interest

(In thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summit Materials, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’

 

 

 

Redeemable

 

 

 

 

Noncontrolling

 

Accumulated

 

Other

 

Class A

 

Class B

 

Additional

 

Noncontrolling

 

Equity/

 

 

 

Noncontrolling

 

Partners’

 

Interest in

 

(Loss)

 

Comprehensive

 

Common Stock

 

Common Stock

 

Paid-in

 

Interest in

 

Partners’

 

 

    

Interest

    

Interest

    

Subsidiaries

    

Earnings

    

Operations

    

Shares

    

Dollars

 

Shares

    

Dollars

    

Capital

    

Summit Holdings

    

Interest

 

Balance — January 2, 2016

 

$

 —

 

$

 —

 

$

1,362

 

$

10,870

 

$

(2,795)

 

    

49,745,944

 

$

497

 

    

69,007,297

 

$

690

 

$

619,003

 

$

138,233

 

$

767,860

 

Net loss

 

 

 —

 

 

 —

 

 

(35)

 

 

(7,747)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(13,247)

 

 

(21,029)

 

LP Unit exchanges

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

13,178,792

 

 

132

 

 

 —

 

 

 —

 

 

30,718

 

 

(30,965)

 

 

(115)

 

Other comprehensive income

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

814

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

1,171

 

 

1,985

 

Stock Option Exercises

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

6,250

 

 

1

 

 

 —

 

 

 —

 

 

112

 

 

 —

 

 

113

 

Share-based compensation

 

 

 —

 

 

 —

 

 

 —

 

 

(1,684)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

31,501

 

 

 —

 

 

29,817

 

Distributions from partnership

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

(373)

 

 

(373)

 

Balance — July 2, 2016

 

$

 —

 

$

 —

 

$

1,327

 

$

1,439

 

$

(1,981)

 

 

62,930,986

 

$

630

 

 

69,007,297

 

$

690

 

$

681,334

 

$

94,819

 

$

778,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — December 27, 2014

 

$

33,740

 

$

285,685

 

$

1,298

 

$

 —

 

$

 —

 

 

 —

 

$

 —

 

 

 —

 

$

 —

 

$

 —

 

$

 —

 

$

286,983

 

Accretion/ redemption value adjustment

 

 

32,252

 

 

(32,252)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(32,252)

 

Net loss

 

 

(1,890)

 

 

(41,338)

 

 

(77)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(41,415)

 

Other comprehensive loss

 

 

 —

 

 

(5,249)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(5,249)

 

Share-based compensation

 

 

 —

 

 

424

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

424

 

Balance — March 11, 2015

 

$

64,102

 

$

207,270

 

$

1,221

 

$

 —

 

$

 —

 

 

 —

 

$

 —

 

 

 —

 

$

 —

 

$

 —

 

$

 —

 

$

208,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recording of noncontrolling interest upon reorganization

 

 

 —

 

 

(207,270)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

207,270

 

 

 —

 

Net loss

 

 

 —

 

 

 —

 

 

(2)

 

 

(10,356)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(26,141)

 

 

(36,499)

 

Issuance of Class A Shares

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

25,555,555

 

 

256

 

 

 —

 

 

 —

 

 

423,346

 

 

 —

 

 

423,602

 

Issuance of Class B Shares

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

69,007,397

 

 

690

 

 

(690)

 

 

 —

 

 

 —

 

Other comprehensive income

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

14

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

14

 

Share repurchase

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(100)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Purchase of redeemable noncontrolling interest

 

 

(64,102)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

1,029,183

 

 

10

 

 

 —

 

 

 —

 

 

18,515

 

 

 —

 

 

18,525

 

Share-based compensation

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

16,596

 

 

 —

 

 

16,596

 

Distributions from partnership

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(11,842)

 

 

(11,842)

 

Balance — June 27, 2015

 

$

 —

 

$

 —

 

$

1,219

 

$

(10,356)

 

$

14

 

 

26,584,738

 

$

266

 

 

69,007,297

 

$

690

 

 

457,767

 

$

169,287

 

$

618,887

 

 

See notes to unaudited consolidated financial statements.

 

 

5