sum_Ex99

Exhibit 99.1

Summit Materials, Inc. Reports First Quarter 2017 Results

- Net Revenue Increased 24.5% Y/Y to $259.0 million

-Generated Positive Organic Price and Volume Growth in Aggregates and Cement

- Raising Full-Year 2017 Adjusted EBITDA Guidance to a Range of $430 million to $445 million

DENVER, CO. - (May 3, 2017) - Summit Materials, Inc. (NYSE: SUM, “Summit” or the “Company”), a leading vertically integrated construction materials company, today announced results for the first quarter 2017.

For the three months ended April 1, 2017, the Company reported a basic loss per share of ($0.50) on a net loss of ($52.4) million, compared to a basic loss per share of ($0.42) on a net loss of ($21.1) million in the prior year period. On an adjusted basis, Summit reported a diluted loss per share of ($0.50) on a net loss of ($54.8) million, versus a diluted loss per share of ($0.42) on a net loss of ($42.5) million in the prior year period.

“Our business performed ahead of expectations during the first quarter, as organic growth in materials sales volumes and average selling prices contributed to strong year-over-year increases in gross margins and Adjusted EBITDA,” stated Tom Hill, CEO of Summit Materials. “Demand within our core early-cycle residential and commercial construction markets continues to accelerate, while a combination of federal and state level funding for critical infrastructure projects remains a significant opportunity for us, particularly in Texas where a combination of FAST Act, Proposition 1 and Proposition 7 funding combine to support robust multi-year investment in public infrastructure.”

“We forecast positive organic materials volume and price growth for the full-year 2017,” continued Hill. “Within our aggregates businesses, Utah, Virginia and the Carolinas are poised for another strong year, while our businesses in Austin and Vancouver have rebounded from prior year levels, with both regions reporting solid organic volume growth in the first quarter. As expected, our Cement Segment has continued to benefit from a combination of steady demand for product within our Mississippi River corridor markets and sustained growth in average selling prices,” continued Hill. “On an organic basis, sales volumes and average selling prices for cement increased 17.6% and 6.3%, respectively, in the first quarter 2017, when compared to the prior year period.”

“On a year-to-date basis, we have completed six acquisitions, including four transactions that have closed since February,” continued Hill. “Together, these four acquisitions bring another 90 million tons of permitted aggregates reserves into our portfolio, while expanding our vertically-integrated aggregates and products businesses in Northeast Houston, South Carolina, Missouri and Vancouver. Our acquisition pipeline remains very active, with more than 20 transactions currently under review, including four potential acquisitions that are in late-stage diligence.”

“Given contributions from recently completed acquisitions, together with expectations for continued organic growth within our business, we have increased our full-year Adjusted EBITDA guidance,” continued Hill. “For the full-year 2017, we project total Adjusted EBITDA in the range of $430 million to $445 million, up from the prior range of $410 million to $425 million. On a year-to-date basis, we have invested $180 million across six transactions, positioning us to meet or possibly exceed our full-year acquired EBITDA target of $40 million to $60 million per year. We are pleased with our strong start to the year and look forward to building on this momentum as we continue to create value for our shareholders.”

“Exiting the first quarter, we had more than $370 million in cash and availability under our revolving credit facility,” stated Brian Harris, CFO of Summit Materials. “Given continued growth in trailing twelve-month free cash flow, together with available cash and liquidity, we are well positioned to support the ongoing growth of our business.”

“Net leverage was 3.7x as of April 1, 2017, versus 4.5x in the prior year period and down from 3.9x at year-end 2016,” continued Harris. “Looking ahead, we continue to target a further reduction in net leverage to approximately 3.0x by year-end 2017, assuming the mid-point of our upwardly revised 2017 Adjusted EBITDA guidance.”

First Quarter 2017 | Financial Performance

Net revenue increased by 24.5% to $259.0 million in the first quarter 2017, versus $208.0 in the prior year period. The improvement in net revenue was primarily attributable to acquisition related sales volumes, higher organic sales volumes of aggregates, cement and asphalt, together with higher organic sales prices on aggregates and cement.

Gross profit increased 29.3% to $66.7 million in the first quarter 2017, versus $51.6 million in the prior year period. Gross profit generated from the Company’s aggregates and cement assets represented 50% of total gross profit in the first quarter 2017, consistent with the prior year period. Adjusted EBITDA increased 62% year-over-year to $13.6 million, versus $8.4 million in the prior year period, in what is typically the seasonally slowest quarter of the year.

Selling, general and administrative expense increased 28.9% to $58.5 million, versus $45.4 million in the prior year period. Increased labor expense was mainly related to increased salaries and benefits resulting from completed acquisitions, coupled with higher employee incentive compensation.

The Company reported an adjusted diluted net loss of ($0.50) per diluted share in the first quarter 2017, using 110.2 million weighted-average total shares. The shares of Class A common stock are issued by Summit Materials, Inc., and as such the earnings and equity interests of non-controlling interests, including LP units, are not included in basic earnings per share. Summit believes adjusted diluted net loss and Adjusted EPS are more representative of earnings performance, as these measures exclude the non-operating impact to earnings per share of any potential exchange of LP units for Class A common stock in any given quarter.

West Segment: Adjusted EBITDA increased by 18.2% to $15.7 million in the first quarter 2017, when compared to the prior year period. Adjusted EBITDA margin increased to 11.9% in the first quarter 2017, versus 11.7% in the prior year period. Improved organic growth in average selling prices for aggregates, strong organic volume growth in asphalt and acquisition-related EBITDA contributions were partially offset by a decline in organic aggregates and ready-mix volumes, along with a slight organic decline in organic ready-mix average selling prices.

East Segment: Adjusted EBITDA increased by 37.0% to $4.3 million in the first quarter 2017, when compared to the prior year period. Adjusted EBITDA margin was down slightly to 5.2% in the first quarter 2017, versus 5.3% in the prior year period. Improved organic growth in average selling prices for aggregates, strong organic volume growth in aggregates and asphalt and acquisition-related EBITDA contributions were partially offset by a slight organic decline in ready-mix concrete volumes.

Cement Segment: Adjusted EBITDA increased to $2.7 million in the first quarter 2017, versus $1.0 million in the prior year period. Adjusted EBITDA margin increased to 6.1% in the first quarter 2017, up from 2.9% in the prior year period. A year-over-year increase in average selling prices, organic sales volumes, improved production efficiencies and cost reductions all contributed to improved results.

First Quarter 2017 | Results by Line of Business

Aggregates Business: Aggregates net revenues increased by 23.5% to $61.6 million the first quarter 2017, when compared to the prior year period. Aggregates gross profit as a percentage of aggregates net revenues increased 70 basis points to 43.6% in the first quarter 2017, versus 42.9% in the prior year period. Organic aggregates sales volumes and average selling prices increased 0.6% and 2.9%, respectively, in the first quarter 2017, when compared to the prior year period. Improved market conditions in the Company’s Austin, North Texas and Vancouver markets, together with continued strength in the Utah markets, contributed to the year-over-year improvement in organic volumes.

Cement Business: Cement segment net revenues increased 29.0% to $43.8 million in the first quarter 2017, when compared to the prior year period. Cement gross profit as a percentage of cement segment net revenues was 14.3% in the first quarter 2017, 150 basis points higher than in the prior year period. Organic sales volumes and average selling prices of cement increased 17.6% and 6.3%, respectively, when compared to the prior year period. Favorable weather conditions and new customer acquisitions contributed to strong organic demand in the first quarter, while continued organic growth in sales prices was attributable to previously announced price increases.

Products Business: Net revenues increased 21.9% to $124.0 million in the first quarter 2017, when compared to the prior year period. Products gross margin as a percentage of net revenues declined 190 basis points to 21.2% in the first quarter 2017, when compared to the prior year period. Organic sales volumes of asphalt and ready-mix concrete increased 64.5% and decreased 11.4%, respectively, when compared to the prior year period. Strong paving activity in the Austin market contributed to increased organic volume growth in asphalt, while lower organic sales volumes of ready-mix concrete was attributable to residential softness in the Houston market.

Acquisition Program Update

The Company has completed six acquisitions on a year-to-date basis, including four acquisitions that have closed since February 2017. In total, these four acquisitions bring to Summit approximately 90 million tons of permitted aggregates reserves, four quarries, three ready-mix concrete plants, one asphalt plant and related paving operations. The four acquisitions represent compelling bolt-on opportunities to existing platform businesses in Texas, South Carolina, Missouri and British Columbia. The total combined acquisition spend on the four acquisitions was approximately $70 million. Together with the previously announced acquisitions of Everist Materials and Razorback Concrete, the combined year-to-date acquisition spend is approximately $180 million.

Hanna’s Bend Aggregate (Texas). Hanna’s Bend is a sand and gravel supplier with significant permitted reserves in northeast Houston. Hanna’s Bend is an ideal fit with Summit’s existing aggregates operations in the Houston market. The Company estimates that Hanna’s Bend’s end-market exposure is largely weighted toward non-residential and residential construction markets.

Carolina Sand (South Carolina). Carolina Sand is a construction and specialty sand supplier that enhances Summit’s existing exposure to the coastal South Carolina market and brings attractive synergy opportunities to the Company’s business in that region. The Company estimates that Carolina Sand’s end-market exposure is entirely weighted toward the private markets, with an emphasis on non-residential construction.

Sandidge Concrete (Missouri). Sandidge is a ready-mix concrete business in southern Missouri that represents an attractive bolt-on acquisition to our existing Con-Agg platform. The Company estimates that Sandidge’s end market exposure is weighted mainly toward private markets with some public market exposure.

Winvan Paving (British Columbia). Vancouver-based Winvan is an asphalt and paving company that represents an attractive bolt-on acquisition to our aggregates business in British Columbia and is consistent with our vertically integrated materials growth strategy. The Company estimates that Winvan’s end-market exposure is weighted equally between private and public markets.

Liquidity and Capital Resources

At April 1, 2017, the Company had cash on hand of $156.1 million and borrowing capacity under its revolving credit facility of $215.4 million. The borrowing capacity on the revolving credit facility is net of $19.6 million of outstanding letters of credit, and is fully available to the Company within the terms and covenant requirements of its credit agreement. As of April 1, 2017, the Company had $1.5 billion in debt outstanding. The Company’s debt instruments are long-dated. The Company’s $235.0 million revolving credit facility has a maturity of March 2020, while the $250 million 8.5% senior unsecured notes and the $650 million 6.125% senior unsecured notes have maturities of April 2022 and July 2023, respectively. The Company also has a $639 million senior secured term loan maturing July 2022. The Company’s weighted average estimated cost of debt was 5.6% as of March 2017.

2017 Financial Guidance & Outlook

The Company is raising its full-year 2017 Adjusted EBITDA guidance from a range of $410.0 million to $425.0 million to a range of $430 million to $445 million. The upwardly revised Adjusted EBITDA outlook assumes organic improvement, coupled with the partial-year impact of the six acquisitions announced since the beginning of 2017. No additional potential acquisitions are included within the Company’s full-year 2017 Adjusted EBITDA guidance.

Including the impact of six acquisitions completed on a year-to-date basis, the Company is raising its gross capital expenditure guidance by $5 million to a range of $140 million to $160 million for the full-year 2017. Revised capital expenditure guidance includes several maintenance and profit-improvement projects. Longer-term, the Company expects gross capital expenditures to approximate 7-8% of net revenue per annum.

Webcast and Conference Call Information

Summit Materials will conduct a conference call today at 11:00 a.m. eastern time (9:00 a.m. mountain time) to review the Company’s first quarter 2017 financial results. 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.

To participate in the live teleconference:


Domestic Live:	1-877-407-0784
International Live:	1-201-689-8560
Conference ID:	86972581

To listen to a replay of the teleconference, which will be available through June 3, 2017:

Domestic Replay:	1-844-512-2921
International Replay:	1-412-317-6671
Conference ID:	13658813

About Summit Materials

Summit Materials is a leading vertically integrated materials-based company that supplies aggregates, cement, ready-mix concrete and asphalt in the United States and British Columbia, Canada. Summit is a geographically diverse, materials-based business of scale that offers customers a single-source provider of construction materials and related downstream products in the public infrastructure, residential and nonresidential, and end markets. Summit has a strong track record of successful acquisitions since its founding and continues to pursue growth opportunities in new and existing markets. For more information about Summit Materials, please visit www.summit-materials.com.

Non-GAAP Financial Measures

The Securities and Exchange Commission (“SEC”) regulates the use of “non-GAAP financial measures,” such as Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, gross profit, free cash flow and net leverage 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, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin and gross profit 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, gross profit, adjusted net income (loss), Adjusted 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. 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.

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Operations

($ in thousands, except share and per share amounts)


	Three months ended
	April 1,		April 2,
	2017		2016
Revenue:
Product	$	225,017	$	180,102
Service		34,027		27,937
Net revenue		259,044		208,039
Delivery and subcontract revenue		25,233		20,340
Total revenue		284,277		228,379
Cost of revenue (excluding items shown separately below):
Product		166,968		132,396
Service		25,371		24,054
Net cost of revenue		192,339		156,450
Delivery and subcontract cost		25,233		20,340
Total cost of revenue		217,572		176,790
General and administrative expenses		58,468		45,370
Depreciation, depletion, amortization and accretion		39,748		32,360
Transaction costs		1,273		3,316
Operating loss		(32,784)		(29,457)
Interest expense		24,969		21,577
Loss on debt financings		190		—
Other income, net		(657)		(334)
Loss from operations before taxes		(57,286)		(50,700)
Income tax benefit		(2,178)		(8,166)
Net loss		(55,108)		(42,534)
Net loss attributable to noncontrolling interest in subsidiaries		(98)		(79)
Net loss attributable to Summit Holdings (1)		(2,566)		(21,337)
Net loss attributable to Summit Inc.	$	(52,444)	$	(21,118)
Loss per share of Class A common stock:
Basic	$	(0.50)	$	(0.42)
Diluted	$	(0.50)	$	(0.42)
Weighted average shares of Class A common stock:
Basic		105,171,661		50,882,663
Diluted		105,171,661		50,882,663

(1)

Represents portion of business owned by private interests

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

($ in thousands, except share and per share amounts)


	April 1,		December 31,
	2017		2016
	(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	156,107	$	143,392
Accounts receivable, net		154,844		162,377
Costs and estimated earnings in excess of billings		14,926		7,450
Inventories		186,998		157,679
Other current assets		12,038		12,800
Total current assets		524,913		483,698
Property, plant and equipment, less accumulated depreciation, depletion and amortization (April 1, 2017 - $518,554 and December 31, 2016 - $484,554)		1,528,259		1,446,452
Goodwill		848,034		782,212
Intangible assets, less accumulated amortization (April 1, 2017 - $5,700 and December 31, 2016 - $7,854)		17,685		17,989
Other assets		52,972		51,115
Total assets	$	2,971,863	$	2,781,466
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of debt	$	6,500	$	6,500
Current portion of acquisition-related liabilities		17,852		24,162
Accounts payable		105,390		81,565
Accrued expenses		100,720		111,605
Billings in excess of costs and estimated earnings		12,860		15,456
Total current liabilities		243,322		239,288
Long-term debt		1,513,057		1,514,456
Acquisition-related liabilities		33,715		32,664
Other noncurrent liabilities		134,049		135,019
Total liabilities		1,924,143		1,921,427

Stockholders’ equity:
Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 106,403,740 and 96,033,222 shares issued and outstanding as of April 1, 2017 and December 31, 2016, respectively		1,065		961
Class B common stock, par value $0.01 per share; 250,000,000 shares authorized, 100 shares issued and outstanding as of April 1, 2017 and December 31, 2016		—		—
Additional paid-in capital		1,068,156		824,304
Accumulated (deficit) earnings		(33,416)		19,028
Accumulated other comprehensive loss		(1,186)		(2,249)
Stockholders’ equity		1,034,619		842,044
Noncontrolling interest in consolidated subsidiaries		1,280		1,378
Noncontrolling interest in Summit Holdings		11,821		16,617
Total stockholders’ equity		1,047,720		860,039
Total liabilities and stockholders’ equity	$	2,971,863	$	2,781,466

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Cash Flows

($ in thousands)


	Three months ended
	April 1,		April 2,
	2017		2016
Cash flow from operating activities:
Net loss	$	(55,108)	$	(42,534)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion, amortization and accretion		43,343		36,817
Share-based compensation expense		4,748		2,036
Deferred income tax benefit		(2,354)		(17)
Net gain on asset disposals		(1,665)		(1,683)
Non-cash loss on debt financings		85		—
Other		783		130
Decrease (increase) in operating assets, net of acquisitions:
Accounts receivable, net		13,847		22,281
Inventories		(24,677)		(25,612)
Costs and estimated earnings in excess of billings		(7,480)		(1,981)
Other current assets		1,494		(9,583)
Other assets		(726)		351
Increase (decrease) in operating liabilities, net of acquisitions:
Accounts payable		4,169		(618)
Accrued expenses		(20,664)		(17,890)
Billings in excess of costs and estimated earnings		(2,703)		(2,552)
Other liabilities		1,369		(1,103)
Net cash used in operating activities		(45,539)		(41,958)
Cash flow from investing activities:
Acquisitions, net of cash acquired		(112,333)		(249,111)
Purchases of property, plant and equipment		(51,056)		(39,125)
Proceeds from the sale of property, plant and equipment		4,325		6,019
Other		974		—
Net cash used for investing activities		(158,090)		(282,217)
Cash flow from financing activities:
Proceeds from equity offerings		237,600		—
Capital issuance costs		(638)		—
Proceeds from debt issuances		—		250,000
Debt issuance costs		(699)		(5,001)
Payments on debt		(3,566)		(3,458)
Payments on acquisition-related liabilities		(16,414)		(11,973)
Distributions from partnership		(79)		—
Other		40		—
Net cash provided by financing activities		216,244		229,568
Impact of foreign currency on cash		100		446
Net increase (decrease) in cash		12,715		(94,161)
Cash and cash equivalents—beginning of period		143,392		186,405
Cash and cash equivalents—end of period	$	156,107	$	92,244

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Revenue Data by Segment and Line of Business

($ in thousands)


	Three months ended						Year ended
	April 1,			April 2,			December 31,			January 2,
	2017			2016			2016			2016

Net Revenue by Segment
West	$	131,974		$	113,847		$	736,573		$	719,485
East		83,235			60,204			470,614			374,997
Cement		43,835			33,988			281,087			195,484
Net Revenue	$	259,044		$	208,039		$	1,488,274		$	1,289,966

Net Revenue by Line of Business
Materials
Aggregates	$	61,622		$	49,908		$	264,609		$	219,040
Cement (1)		39,435			28,536			250,349			167,696
Products		123,960			101,658			708,050			657,107
Total Materials and Products		225,017			180,102			1,223,008			1,043,843
Services		34,027			27,937			265,266			246,123
Net Revenue	$	259,044		$	208,039		$	1,488,274		$	1,289,966

Gross Profit
Materials
Aggregates	$	26,840		$	21,417		$	164,129		$	130,163
Cement (1)		6,262			4,353			127,185			84,187
Products		26,219			23,475			188,611			162,466
Services		7,384			2,344			74,346			65,219
Gross Profit	$	66,705		$	51,589		$	554,271		$	442,035

Gross Profit Margin (2)
Materials
Aggregates		43.6	%		42.9	%		62.0	%		59.4	%
Cement (3)		14.3	%		12.8	%		45.2	%		43.1	%
Products		21.2	%		23.1	%		26.6	%		24.7	%
Services		21.7	%		8.4	%		28.0	%		26.5	%
Total Gross Margin		25.8	%		24.8	%		37.2	%		34.3	%

(1)

Net revenue for the cement line of business excludes revenue associated with the processing of 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. The cement segment gross profit includes the earnings from the waste processing operations, cement swaps and other products.

(2)

Gross profit margin defined as gross profit divided by net revenue.

(3)

Cement gross profit margin defined as cement gross profit divided by cement segment net revenue.

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Volume and Price Statistics

(Units in thousands)


	Three months ended
Total Volume	April 1, 2017			April 2, 2016
Aggregates (tons)		7,963			6,962
Cement (tons)		362			284
Ready-mix concrete (cubic yards)		906			762
Asphalt (tons)		362			217

	Three months ended
Pricing	April 1, 2017			April 2, 2016
Aggregates (per ton)	$	9.84		$	9.34
Cement (per ton)		111.48			103.89
Ready-mix concrete (per cubic yards)		103.04			105.33
Asphalt (per ton)		53.98			58.30

Year over Year Comparison	Volume			Pricing
Aggregates (per ton)		14.4	%		5.4	%
Cement (per ton)		27.5	%		7.3	%
Ready-mix concrete (per cubic yards)		18.9	%		(2.2)	%
Asphalt (per ton)		66.8	%		(7.4)	%

Year over Year Comparison (Excluding acquisitions)	Volume			Pricing
Aggregates (per ton)		0.6	%		2.9	%
Cement (per ton)		17.6	%		6.3	%
Ready-mix concrete (per cubic yards)		(11.4)	%		(1.5)	%
Asphalt (per ton)		64.5	%		(7.3)	%

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Reconciliations of Gross Revenue to Net Revenue by Line of Business

($ and Units in thousands)


	Three months ended April 1, 2017
				Gross Revenue		Intercompany		Net
	Volumes	Pricing		by Product		Elimination/Delivery		Revenue
Aggregates	7,963	$	9.84	$	78,370	$	(16,748)	$	61,622
Cement	362		111.48		40,304		(869)		39,435
Materials				$	118,674	$	(17,617)	$	101,057
Ready-mix concrete	906		103.04		93,358		(181)		93,177
Asphalt	362		53.98		19,562		(61)		19,501
Other Products					57,563		(46,281)		11,282
Products				$	170,483	$	(46,523)	$	123,960

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 loss to Adjusted EBITDA by segment for the three months ended April 1, 2017 and April 2, 2016.


Reconciliation of Net Loss to Adjusted EBITDA	Three months ended April 1, 2017
by Segment	West		East		Cement		Corporate		Consolidated
(in thousands)
Net loss	$	(2,026)	$	(12,093)	$	(4,713)	$	(36,276)	$	(55,108)
Interest expense		1,904		685		(650)		23,030		24,969
Income tax expense (benefit)		2		—		—		(2,180)		(2,178)
Depreciation, depletion and amortization		15,468		15,187		7,990		659		39,304
EBITDA	$	15,348	$	3,779	$	2,627	$	(14,767)	$	6,987
Accretion		195		191		58		—		444
Loss on debt financings		—		—		—		190		190
Transaction costs		37		—		—		1,236		1,273
Non-cash compensation		—		—		—		4,748		4,748
Other		119		378		—		(509)		(12)
Adjusted EBITDA	$	15,699	$	4,348	$	2,685	$	(9,102)	$	13,630
Adjusted EBITDA Margin (1)		11.9%		5.2%		6.1%				5.3%


Reconciliation of Net Loss to Adjusted EBITDA	Three months ended April 2, 2016
by Segment	West		East		Cement		Corporate		Consolidated
(in thousands)
Net loss	$	(4,562)	$	(9,437)	$	(7,462)	$	(21,073)	$	(42,534)
Interest expense		1,986		1,891		3,174		14,526		21,577
Income tax benefit		(61)		—		—		(8,105)		(8,166)
Depreciation, depletion and amortization		15,748		10,273		5,245		634		31,900
EBITDA	$	13,111	$	2,727	$	957	$	(14,018)	$	2,777
Accretion		288		158		14		—		460
Transaction costs		148		—		—		3,168		3,316
Non-cash compensation		—		—		—		2,036		2,036
Other		(268)		288		—		(200)		(180)
Adjusted EBITDA	$	13,279	$	3,173	$	971	$	(9,014)	$	8,409
Adjusted EBITDA Margin (1)		11.7%		5.3%		2.9%				4.0%

(1)

Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of net revenue.

The table below reconciles our net loss per share attributable to Summit Materials, Inc. to adjusted diluted net loss per share for the three months ended April 1, 2017 and April 2, 2016. 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 loss per share.


	Three months ended
	April 1, 2017				April 2, 2016
Reconciliation of Net Loss Per Share to Adjusted Diluted EPS	Net Loss		Per Share		Net Loss		Per Share
Net loss attributable to Summit Materials, Inc.	$	(52,444)	$	(0.48)	$	(21,118)	$	(0.21)
Adjustments:
Net loss attributable to noncontrolling interest		(2,566)		(0.02)		(21,337)		(0.21)
Loss on debt financings, net of tax		190		—		—		—
Adjusted diluted net loss	$	(54,820)	$	(0.50)	$	(42,455)	$	(0.42)
Weighted-average shares:
Class A common stock		105,171,661				50,882,663
LP Units outstanding		5,069,805				50,261,491
Total equity interest		110,241,466				101,144,154

The following table reconciles operating loss to gross profit and gross margin for the three months ended April 1, 2017 and April 2, 2016.


	Three months ended
	April 1,			April 2,
Reconciliation of Operating Loss to Gross Profit	2017			2016
(in thousands)
Operating loss	$	(32,784)		$	(29,457)
General and administrative expenses		58,468			45,370
Depreciation, depletion, amortization and accretion		39,748			32,360
Transaction costs		1,273			3,316
Gross Profit (exclusive of items shown separately)	$	66,705		$	51,589
Gross Margin (exclusive of items shown separately) (1)		25.8	%		24.8	%

(1)

Gross margin is defined as gross profit as a percentage of net revenue.

The following table reconciles net cash used for operating activities to free cash outflow for the three months ended April 1, 2017 and April 2, 2016.


	Three months ended
	April 1,		April 2,
	2017		2016
Net loss	$	(55,108)	$	(42,534)
Non-cash items		44,940		37,283
Net loss adjusted for non-cash items		(10,168)		(5,251)
Change in working capital accounts		(35,371)		(36,707)
Net cash used in operating activities		(45,539)		(41,958)
Capital expenditures, net of asset sales		(46,731)		(33,106)
Free cash outflow	$	(92,270)	$	(75,064)

Contact:

Mr. Noel Ryan

Vice President, Investor Relations

Summit Materials, Inc.

noel.ryan@summit-materials.com