EX-99.1 2 sum0206198-kexhibit991.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
 
Summit Materials, Inc. Reports Fourth Quarter and Full Year 2018 Results
 
- Net Revenue Growth of 9.0% in Year Ended December 29, 2018, Supported By Acquisitions
- Announced 2019 Adjusted EBITDA Guidance Range For The Full-Year 2019 at $430 - $470 million

DENVER, CO. - (February 6, 2019) - Summit Materials, Inc. (NYSE: SUM, “Summit” or the “Company”), a leading vertically integrated construction materials company, today announced results for the fourth quarter and full year 2018. 
For the three months ended December 29, 2018, the Company reported net loss attributable to Summit Inc. of $(19.2) million, or $(0.17) per basic share, compared to net income attributable to Summit Inc. of $43.0 million, or $0.39 per basic share in the comparable prior year period. Summit reported adjusted diluted net loss of $(18.6) million, or $(0.16) per adjusted diluted share as compared to adjusted diluted net income of $52.1 million, or $0.46 per adjusted diluted share in the prior year period. 
For the year ended December 29, 2018, the Company reported net income attributable to Summit Inc. of $33.9 million, or $0.30 per basic share, compared to net income attributable to Summit Inc. of $121.8 million, or $1.12 per basic share in the comparable prior year period. Summit reported adjusted diluted net income of $17.4 million, or $0.15 per adjusted diluted share as compared to adjusted diluted net income of $104.9 million, or $0.93 per adjusted diluted share in the prior year period. 
Summit's net revenue increased 1.0% in the fourth quarter of 2018 compared to the comparable 2017 period, while net income and Adjusted EBITDA decreased in 2018 as compared to 2017, as a result of the increases in our input costs which exceeded its revenue gains. Summit's net revenue increased 9.0% in the year ended December 29, 2018 as compared to 2017, primarily due to acquisitions, offset by decreases caused by less favorable weather conditions in 2018. Net income and Adjusted EBITDA for the full year 2018 were also lower than in 2017 due to the same factors that impacted our quarterly results. Tom Hill, CEO of Summit Materials, stated "although we continued to face input cost headwinds in the fourth quarter, we were very pleased to see our organic average sales prices for aggregates increased by 6.5% in the fourth quarter as compared to a year ago. We have also announced our cement price increases for 2019 which will go into effect in the next few months. We continue to believe end market fundamentals remain in-tact for the construction industry, as well as cement specifically, going into 2019." Summit noted that according to the USGS, aggregates pricing has increased in 70 of the last 75 years, with average price growth in the low single digits. Further the PCA has reported that cement consumption is still below long-term trend lines, which we believe suggests room for demand expansion in 2019. Hill commented, "we believe these long term industry trends support our expectation for improved average sales prices in 2019."
Summit also announced its 2019 Adjusted EBITDA guidance, as well as guidance regarding capital expenditures. Hill continued. "as we enter 2019, we're pleased to announce Adjusted EBITDA guidance of approximately $430 million to $470 million for 2019." 
“Underlying demand conditions in most of our markets remain favorable and are expected to remain so into 2019,” continued Hill. In Summit's public markets, state transportation funding measures in Texas, coupled with steady increases in federal subsidies, are contributing to increased lettings activity. Single family housing starts and permits remain well below peak levels in Summit's major markets.
During 2018, Summit completed 13 acquisitions for total invested capital of $300 million. Across these 13 transactions, Summit added more than 400 million tons of aggregates reserves to its portfolio.  
Brian Harris, CFO of Summit Materials, stated “our 2019 Adjusted EBITDA guidance reflects an increase from our 2018 results, and we also expect to reduce the level of capital expenditures to approximately $160 million to $175 million, which we believe is more reflective of levels to be incurred in future years." Summit expects to remain disciplined and selective on future acquisitions. As such, Summit expects to generate increased levels of cash flow from operations less capital expenditures in 2019 as compared to 2018, which we expect will allow us to reduce our leverage ratio by the end of 2019.

Full-Year 2018 | Results by Line of Business
 
Aggregates Business: Aggregates net revenues increased by 19.3% to $373.8 million during 2018, when compared to the prior year period. Aggregates adjusted cash gross profit margin declined to 59.4% in 2018, compared to 65.3% in 2017 due to higher variable costs. Organic aggregates sales volumes decreased 0.1% in 2018, as compared to 2017. Summit had growth in organic aggregates sales volumes in the West Region, which were more than offset by a decline in organic aggregates sales volumes in the East Region. Organic average selling prices on aggregates increased 3.3% in 2018 due to improvements in prices within both the West and East segments during the year.

Cement Business: Cement segment net revenues declined 7.6% to $280.8 million during 2018, when compared to 2017. Cement adjusted cash gross profit margin decreased to 44.3% in 2018, compared to 47.1% in 2017, as productivity gains and a 0.6% increase in average sales prices were offset by a higher freight, storage and demurrage costs related to weather-affected cement inventories. Organic sales volume of cement declined 8.6% in 2018, when compared to 2017, due to high levels of precipitation that disrupted project work during the year, as well as increased competition. 

Products Business: Net revenues increased 13.2% to $967.5 million during 2018, when compared to 2017. Products adjusted cash gross profit margin declined to 21.1% in 2018, versus 24.6% in the 2017, as the increases in labor, raw materials and transportation costs exceeded increases in our average sales prices. Organic sales volumes of ready-mix concrete increased 0.2% in 2018, while organic average selling prices increased

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2.0% as compared to 2017.  Organic sales volumes of asphalt decreased 0.4% in 2018, while organic average selling prices increased 2.4% during 2017. 

Fourth Quarter 2018 | Results by Line of Business
 
Aggregates Business: Aggregates net revenues increased by 20.9% to $93.1 million in the fourth quarter 2018, when compared to the prior year period. Aggregates adjusted cash gross profit margin declined to 54.8% in the fourth quarter 2018, compared to 70.5% in the prior year period, due to higher variable costs. Organic aggregates sales volumes decreased 1.9% in the fourth quarter 2018, when compared to the prior-year period.  Organic average selling prices on aggregates increased 6.5% in the fourth quarter 2018 due to improvements in prices within both the West and East segments during the period.
 
Cement Business: Cement segment net revenues declined 9.5% to $67.4 million in the fourth quarter 2018, when compared to the prior-year period. Cement adjusted cash gross profit margin decreased to 46.4% in the fourth quarter, compared to 49.9% in the prior-year period, as margins were impacted by the same factors noted above. Organic sales volume of cement declined 10.1% in the fourth quarter, when compared to the prior year period, due to high levels of precipitation and cold weather that disrupted project work during the quarter, as well as increased competition. Organic average selling prices on cement increased 0.1% in the fourth quarter, when compared to the prior year period.
 
Products Business: Net revenues increased 0.1% to $216.1 million in the fourth quarter 2018, when compared to the prior year period. Products adjusted cash gross profit margin declined to 21.6% in the fourth quarter, versus 23.7% in the prior year period, as the increases in labor, raw materials and transportation costs exceeded increases in our average sales prices. Organic sales volumes of ready-mix concrete decreased 4.8% in the fourth quarter, while organic average selling prices decreased 0.7% as compared to the prior year period.  Organic sales volumes of asphalt decreased 3.0% in the fourth quarter, while organic average selling prices increased 6.4%, over the same period in 2017. 

Full-Year 2018 | Results By Reporting Segment
 
Net revenue increased by 9.0% to $1.9 billion in 2018, versus $1.8 billion in 2017. The improvement in net revenue was attributable to a small amount of organic growth and primarily acquisition-related contributions in the East and West segments, offset by a decline in the Cement segment. The Company reported operating income of $162.5 million in 2018, compared to $220.9 million in the prior year. Adjusted EBITDA was $406.3 million in 2018 compared to $435.8 million in 2017.
 
West Segment: The West Segment reported operating income of $92.1 million in 2018, compared to $130.3 million in 2017. Adjusted EBITDA decreased to $189.0 million in 2018, compared to $203.6 million in 2017. The decreases in West Segment operating income and Adjusted EBITDA were primarily attributable to increases in labor and liquid asphalt costs and low margin construction projects, partially offset by increases in average selling prices on aggregates and ready-mix concrete. Aggregates revenue in 2018 increased 14.2% over 2017 as a result of contributions from acquisitions, a 0.8% increase in organic volumes and a 4.2% increase organic average sales prices. Ready-mix concrete revenue in 2018 increased 23.5% over 2017, as a result of contributions from acquisitions, along with a 2.7% increase in organic volumes and a 2.4% increase in organic average sales prices. Asphalt revenue also increased by 0.1% in 2018, as contributions from our acquisitions exceeded a 0.4% decrease in volumes and a 1.4% decrease in average sales price.
East Segment: The East Segment reported operating income of $59.6 million in 2018, compared to $67.7 million in 2017. Adjusted EBITDA decreased to $138.0 million in 2018, compared to $139.1 million in 2017. The decrease in East Segment operating income was mainly attributable to increases in net revenue from our acquisition program and increases in average selling prices of aggregates, ready-mix concrete and asphalt, partially offset by increased labor and hydrocarbon costs, as well as decreases in ready-mix volumes. Aggregates revenue increased 20.5%, primarily due to increases resulting from our acquisition program as well as an increase in organic average sales prices of 2.7%, offset by a decline in organic sales volumes of 0.9%. Ready-mix concrete revenue increased 4.9% as a result of our acquisition program, partially offset by a decline in organic sales volumes of 6.6%. Asphalt revenue increased 14.2% primarily as a result of acquisition related volumes and increased average sales prices, partially offset by a decrease in organic sales volumes.
Cement Segment: The Cement Segment reported operating income of $75.8 million in 2018, compared to $89.4 million in 2017.  Adjusted EBITDA declined to $111.4 million in 2018, compared to $127.5 million in 2017. The Company experienced slightly higher organic average selling prices as well as declines in organic sales volumes during 2018 due to high levels of precipitation in the Company’s Mississippi River markets.

 Fourth Quarter 2018 | Results By Reporting Segment
 
Net revenue increased by 1.0% to $445.1 million in the fourth quarter 2018, versus $440.6 million in the prior year period. The improvement in net revenue was primarily attributable to both organic and acquisition-related contributions in the East and West segments, offset by a decline in the Cement segment. The Company reported operating income of $28.5 million in the fourth quarter 2018, compared to $57.3 million in the prior year period. Adjusted EBITDA was $93.4 million in the fourth quarter 2018, compared to $114.2 million in the prior year period.
 
West Segment: The West Segment reported operating income of $11.6 million in the fourth quarter 2018, compared to $30.2 million in the prior year period. Adjusted EBITDA decreased to $37.7 million in the third quarter 2018, compared to $50.7 million in the prior year period. The quarterly declines in West Segment operating income and Adjusted EBITDA were primarily attributable to increased labor and hydrocarbon costs, partially offset by increases in average selling prices on aggregates and ready-mix concrete. Aggregates revenue in the fourth quarter

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increased 11.0% over the prior year as a result of contributions from acquisitions, a 0.9% decrease in organic volumes and a 5.4% increase in organic average sales prices. Ready-mix concrete revenue in the fourth quarter 2018 increased 10.0% over the prior year period, as a result of contributions from acquisitions, partially offset by a 1.4% and 1.9% decrease in organic volumes and organic average sales prices, respectively. Asphalt revenue decreased by 1.5% in the fourth quarter, resulting from a 6.6% decrease in volumes, partially offset by a 0.9% increase in average sales price.
East Segment: The East Segment reported operating income of $15.5 million in the fourth quarter 2018, compared to $21.2 million in the prior year period. Adjusted EBITDA decreased to $37.5 million in the third quarter 2018, compared to $39.6 million in the prior year period. The quarterly decline in East Segment operating income was primarily attributable to increases in costs of revenue and general and administrative expenses. The quarterly improvement in East Segment Adjusted EBITDA was mainly attributable to increases in net revenue from our acquisition program, increases in average selling prices of aggregates, ready-mix concrete and asphalt, partially offset increased labor and hydrocarbon costs, as well as decreases in ready-mix volumes. Aggregates revenue increased 25.4%, primarily due to increases resulting from our acquisition program as well as a 7.5% increase in organic average sales prices, partially offset by a 3.0% decline in organic sales volumes. Ready-mix concrete revenue decreased 10.9% as a result of lower sales volumes, partially offset by an increase in organic average sales prices. Asphalt revenue increased 26.8% primarily as a result of a 3.0% and 17.0% increase in organic volumes and organic average sales prices, respectively.
Cement Segment: The Cement Segment reported operating income of $19.3 million in the fourth quarter 2018, compared to $25.8 million in the prior year period.  Adjusted EBITDA declined to $28.8 million in the fourth quarter 2018, compared to $34.2 million in the prior year period. The Company experienced slightly higher organic average selling prices as well as declines in organic sales volumes during fourth quarter 2018 due to high levels of precipitation in the Company’s Mississippi River markets and price-driven competitive pressures.

Acquisitions and Divestitures
 
During 2018, the Company completed 13 acquisitions with a total investment of approximately $300 million.
 
Liquidity and Capital Resources
 
As of December 29, 2018, the Company had cash on hand of $128.5 million and borrowing capacity under its revolving credit facility of $219.6 million. The borrowing capacity on the revolving credit facility is fully available to the Company within the terms and covenant requirements of its credit agreement. As of December 29, 2018, the Company had $1.8 billion in debt outstanding. 
 
Financial Outlook
 
For the full-year 2019, the Company estimates its Adjusted EBITDA to be in the range of $430 million to $470 million. For the full-year 2019, the Company estimates its capital expenditures to be in the range of $160 million to $175 million.

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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 fourth quarter and full year 2018 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:                       57511368
 
To listen to a replay of the teleconference, which will be available through March 6, 2019:
 
Domestic Replay:                   1-844-512-2921
International Replay:              1-412-317-6671
Conference ID:                       13686788

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 Net Income (Loss), Adjusted Diluted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Free Cash Flow, Net Leverage and Net Debt which are derived on the basis of methodologies other than in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). We have provided these measures because, among other things, we believe that they provide investors with additional information to measure our performance, evaluate our ability to service our debt and evaluate certain flexibility under our restrictive covenants. Our Adjusted Net Income (Loss), Adjusted Diluted EPS, Adjusted EBITDA, Further Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Free Cash Flow, Net Leverage and Net Debt 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, Further Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Adjusted Net Income (Loss), Adjusted Diluted EPS, Free Cash Flow, Net Leverage and Net Debt 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.

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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,” “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, 2017 and Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018, each as filed with the Securities and Exchange Commission (the “SEC”), any factors discussed in the section entitled “Risk Factors” in any of our subsequently filed SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 29, 2018, which is expected to be filed on or about the date of this press release, 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 delays or 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;
 
-
 
rising prices for commodities, labor and other production and delivery costs as a result of inflation or otherwise;
 
-
 
conditions in the credit markets;
 
-
 
our ability to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us;
 
-
 
material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual specifications;
 
-
 
cancellation of a significant number of contracts or our disqualification from bidding for new contracts;
 
-
 
special hazards related to our operations that may cause personal injury or property damage not covered by insurance;
 
-
 
our substantial current level of indebtedness;
 
-
 
our dependence on senior management and other key personnel;
 
-
 
supply constraints or significant price fluctuations in electricity and the petroleum-based resources that we use, including diesel and liquid asphalt

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-
 
climate change and climate change legislation or regulations;
 
-
 
unexpected operational difficulties;
 
-
 
interruptions in our information technology systems and infrastructure; and
 
-
 
potential labor disputes;
 
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.

6



SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
($ in thousands, except share and per share amounts)
 
 
 
Three months ended
 
Year ended
 
 
December 29,
 
December 30,
 
December 29,
 
December 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
(unaudited)
 
(unaudited)
 
(audited)
 
(audited)
Revenue:
 
 
 
 
 
 
 
 
Product
 
$
370,563

 
$
361,637

 
$
1,600,159

 
$
1,449,936

Service
 
74,527

 
78,973

 
309,099

 
302,473

Net revenue
 
445,090

 
440,610

 
1,909,258

 
1,752,409

Delivery and subcontract revenue
 
45,940

 
49,414

 
191,744

 
180,166

Total revenue
 
491,030

 
490,024

 
2,101,002

 
1,932,575

Cost of revenue (excluding items shown separately below):
 
 
 
 
 
 
 
 
Product
 
244,378

 
220,420

 
1,058,544

 
898,281

Service
 
54,865

 
48,922

 
225,491

 
203,330

Net cost of revenue
 
299,243

 
269,342

 
1,284,035

 
1,101,611

Delivery and subcontract cost
 
45,940

 
49,414

 
191,744

 
180,166

Total cost of revenue
 
345,183

 
318,756

 
1,475,779

 
1,281,777

General and administrative expenses
 
62,634

 
66,941

 
253,609

 
242,670

Depreciation, depletion, amortization and accretion
 
54,247

 
45,762

 
204,910

 
179,518

Transaction costs
 
421

 
1,259

 
4,238

 
7,733

Operating income
 
28,545

 
57,306

 
162,466

 
220,877

Interest expense
 
29,932

 
28,673

 
116,548

 
108,549

Loss on debt financings
 

 
4,625

 
149

 
4,815

Tax receivable agreement (benefit) expense
 
(22,684
)
 
(232,261
)
 
(22,684
)
 
271,016

Gain on sale of business
 

 

 
(12,108
)
 

Other income, net
 
(3,574
)
 
(1,340
)
 
(15,516
)
 
(5,303
)
Income (loss) from operations before taxes
 
24,871

 
257,609

 
96,077

 
(158,200
)
Income tax expense (benefit)
 
43,498

 
213,099

 
59,747

 
(283,977
)
Net income
 
(18,627
)
 
44,510

 
36,330

 
125,777

Net (loss) income attributable to noncontrolling interest in subsidiaries
 

 

 

 
(27
)
Net income attributable to Summit Holdings (1)
 
536

 
1,500

 
2,424

 
3,974

Net income attributable to Summit Inc.
 
$
(19,163
)
 
$
43,010

 
$
33,906

 
$
121,830

Income per share of Class A common stock:
 
 
 
 
 
 
 
 
Basic
 
$
(0.17
)
 
$
0.39

 
$
0.30

 
$
1.12

Diluted
 
$
(0.17
)
 
$
0.38

 
$
0.30

 
$
1.11

Weighted average shares of Class A common stock:
 
 
 
 
 
 
 
 
Basic
 
111,656,069

 
110,128,357

 
111,380,175

 
108,696,438

Diluted
 
111,656,069

 
111,723,427

 
112,316,646

 
109,490,898

________________________________________________________
(1) Represents portion of business owned by pre-IPO investors rather than by Summit.

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SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ in thousands, except share and per share amounts)
 
 
 
December 29,
 
December 30,
 
 
2018
 
2017
Assets
 
 

 
 

Current assets:
 
 

 
 

Cash and cash equivalents
 
$
128,508

 
$
383,556

Accounts receivable, net
 
214,518

 
198,330

Costs and estimated earnings in excess of billings
 
18,602

 
9,512

Inventories
 
213,851

 
184,439

Other current assets
 
16,061

 
7,764

Total current assets
 
591,540

 
783,601

Property, plant and equipment
 
1,780,132

 
1,615,424

Goodwill
 
1,192,028

 
1,036,320

Intangible assets
 
18,460

 
16,833

Deferred tax assets
 
225,397

 
284,092

Other assets
 
50,084

 
51,063

Total assets
 
$
3,857,641

 
$
3,787,333

Liabilities and Stockholders’ Equity
 
 
 
 
Current liabilities:
 
 
 
 
Current portion of debt
 
$
6,354

 
$
4,765

Current portion of acquisition-related liabilities
 
34,270

 
14,087

Accounts payable
 
107,702

 
98,744

Accrued expenses
 
100,491

 
116,629

Billings in excess of costs and estimated earnings
 
11,840

 
15,750

Total current liabilities
 
260,657

 
249,975

Long-term debt
 
1,807,502

 
1,810,833

Acquisition-related liabilities
 
49,468

 
58,135

Tax receivable agreement liability
 
309,674

 
331,340

Other noncurrent liabilities
 
88,195

 
65,329

Total liabilities
 
2,515,496

 
2,515,612

Stockholders’ equity:
 
 

 
 

Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 111,658,927 and 110,350,594 shares issued and outstanding as of December 29, 2018 and December 30, 2017, respectively
 
1,117

 
1,104

Class B common stock, par value $0.01 per share; 250,000,000 shares authorized, 99 and 100 shares issued and outstanding as of December 29, 2018 and December 30, 2017, respectively
 

 

Additional paid-in capital
 
1,194,204

 
1,154,220

Accumulated earnings
 
129,739

 
95,833

Accumulated other comprehensive income
 
2,681

 
7,386

Stockholders’ equity
 
1,327,741

 
1,258,543

Noncontrolling interest in Summit Holdings
 
14,404

 
13,178

Total stockholders’ equity
 
1,342,145

 
1,271,721

Total liabilities and stockholders’ equity
 
$
3,857,641

 
$
3,787,333



8



SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
($ in thousands)
 
 
Year ended
 
 
December 29,
 
December 30,
 
 
2018
 
2017
Cash flow from operating activities:
 
 
 
 
Net income
 
$
36,330

 
$
125,777

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation, depletion, amortization and accretion
 
208,772

 
193,107

Share-based compensation expense
 
25,378

 
21,140

Net gain on asset disposals
 
(30,093
)
 
(7,638
)
Non-cash loss on debt financings
 

 
3,856

Change in deferred tax asset, net
 
57,490

 
(289,219
)
Other
 
2,018

 
(2,359
)
(Increase) decrease in operating assets, net of acquisitions and dispositions:
 
 
 
 
Accounts receivable, net
 
(5,796
)
 
(3,720
)
Inventories
 
(11,598
)
 
(18,609
)
Costs and estimated earnings in excess of billings
 
(8,702
)
 
(1,825
)
Other current assets
 
(7,159
)
 
8,703

Other assets
 
(106
)
 
(3,103
)
(Decrease) increase in operating liabilities, net of acquisitions and dispositions:
 
 
 
 
Accounts payable
 
(13,403
)
 
6,192

Accrued expenses
 
(16,544
)
 
(7,006
)
Billings in excess of costs and estimated earnings
 
(5,052
)
 
109

Tax receivable agreement liability
 
(21,666
)
 
273,194

Other liabilities
 
(501
)
 
(6,416
)
Net cash provided by operating activities
 
209,368

 
292,183

Cash flow from investing activities:
 
 
 
 
Acquisitions, net of cash acquired
 
(246,017
)
 
(374,930
)
Purchases of property, plant and equipment
 
(220,685
)
 
(194,146
)
Proceeds from the sale of property, plant and equipment
 
21,635

 
17,072

Proceeds from sale of business
 
21,564

 

Other
 
3,804

 
(471
)
Net cash used for investing activities
 
(419,699
)
 
(552,475
)
Cash flow from financing activities:
 
 
 
 
Proceeds from equity offerings
 

 
237,600

Capital issuance costs
 

 
(627
)
Proceeds from debt issuances
 
64,500

 
302,000

Debt issuance costs
 
(550
)
 
(6,416
)
Payments on debt
 
(85,042
)
 
(16,438
)
Purchase of noncontrolling interests
 

 
(532
)
Payments on acquisition-related liabilities
 
(36,504
)
 
(34,650
)
Distributions from partnership
 
(69
)
 
(1,974
)
Proceeds from stock option exercises
 
15,615

 
21,661

Other
 
(1,943
)
 
(869
)
Net cash (used in) provided by financing activities
 
(43,993
)
 
499,755

Impact of foreign currency on cash
 
(724
)
 
701

Net (decrease) increase in cash
 
(255,048
)
 
240,164

Cash and cash equivalents—beginning of period
 
383,556

 
143,392

Cash and cash equivalents—end of period
 
$
128,508

 
$
383,556


9



SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Unaudited Revenue Data by Segment and Line of Business
($ in thousands)
 
 
Three months ended
 
Year ended
 
 
December 29,
 
December 30,
 
December 29,
 
December 30,
 
 
2018
 
2017
 
2018
 
2017
Segment Net Revenue:
 
 
 
 

 
 

 
 

West
 
$
219,180

 
$
224,318

 
$
1,011,155

 
$
899,992

East
 
158,485

 
141,817

 
617,314

 
548,604

Cement
 
67,425

 
74,475

 
280,789

 
303,813

Net Revenue
 
$
445,090

 
$
440,610

 
$
1,909,258

 
$
1,752,409

 
 
 
 
 
 
 
 
 
Line of Business - Net Revenue:
 
 

 
 

 
 

 
 

Materials
 
 

 
 

 
 

 
 

Aggregates
 
$
93,063

 
$
76,946

 
$
373,824

 
$
313,383

Cement (1)
 
61,437

 
68,798

 
258,876

 
282,041

Products
 
216,063

 
215,893

 
967,459

 
854,512

Total Materials and Products
 
370,563

 
361,637

 
1,600,159

 
1,449,936

Services
 
74,527

 
78,973

 
309,099

 
302,473

Net Revenue
 
$
445,090

 
$
440,610

 
$
1,909,258

 
$
1,752,409

 
 
 
 
 
 
 
 
 
Line of Business - Net Cost of Revenue:
 
 

 
 

 
 

 
 

Materials
 
 

 
 

 
 

 
 

Aggregates
 
$
42,091

 
$
22,729

 
$
151,838

 
$
108,729

Cement
 
30,156

 
31,659

 
134,597

 
139,058

Products
 
169,457

 
164,736

 
763,319

 
644,010

Total Materials and Products
 
241,704

 
219,124

 
1,049,754

 
891,797

Services
 
57,539

 
50,218

 
234,281

 
209,814

Net Cost of Revenue
 
$
299,243

 
$
269,342

 
$
1,284,035

 
$
1,101,611

 
 
 
 
 
 
 
 
 
Line of Business - Adjusted Cash Gross Profit (2):
 
 

 
 

 
 

 
 

Materials
 
 

 
 

 
 

 
 

Aggregates
 
$
50,972

 
$
54,217

 
$
221,986

 
$
204,654

Cement (3)
 
31,281

 
37,139

 
124,279

 
142,983

Products
 
46,606

 
51,157

 
204,140

 
210,502

Total Materials and Products
 
128,859

 
142,513

 
550,405

 
558,139

Services
 
16,988

 
28,755

 
74,818

 
92,659

Adjusted Cash Gross Profit
 
$
145,847

 
$
171,268

 
$
625,223

 
$
650,798

 
 
 
 
 
 
 
 
 
Adjusted Cash Gross Profit Margin (2)
 
 

 
 

 
 

 
 

Materials
 
 

 
 

 
 

 
 

Aggregates
 
54.8
%
 
70.5
%
 
59.4
%
 
65.3
%
Cement (3)
 
46.4
%
 
49.9
%
 
44.3
%
 
47.1
%
Products
 
21.6
%
 
23.7
%
 
21.1
%
 
24.6
%
Services
 
22.8
%
 
36.4
%
 
24.2
%
 
30.6
%
Total Adjusted Cash Gross Profit Margin
 
32.8
%
 
38.9
%
 
32.7
%
 
37.1
%
________________________________________________________
(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.


10



SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Unaudited Volume and Price Statistics
(Units in thousands)
 
 
 
Three months ended
 
Year ended
Total Volume
 
December 29, 2018
 
December 30, 2017
 
December 29, 2018
 
December 30, 2017
Aggregates (tons)
 
11,543

 
10,465

 
47,624

 
41,712

Cement (tons)
 
559

 
622

 
2,329

 
2,547

Ready-mix concrete (cubic yards)
 
1,269

 
1,216

 
5,433

 
4,680

Asphalt (tons)
 
1,231

 
1,259

 
5,404

 
5,263

 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Year ended
Pricing
 
December 29, 2018
 
December 30, 2017
 
December 29, 2018
 
December 30, 2017
Aggregates (per ton)
 
$
10.50

 
$
9.76

 
$
10.27

 
$
9.97

Cement (per ton)
 
112.40

 
112.32

 
113.14

 
112.42

Ready-mix concrete (per cubic yards)
 
107.34

 
107.48

 
107.61

 
105.37

Asphalt (per ton)
 
56.32

 
53.04

 
55.57

 
54.19

 
 
 
 
 
 
 
 
 
Year over Year Comparison
 
Volume
 
Pricing
 
Volume
 
Pricing
Aggregates (per ton)
 
10.3
 %
 
7.6
 %
 
14.2
 %
 
3.0
%
Cement (per ton)
 
(10.1
)%
 
0.1
 %
 
(8.6
)%
 
0.6
%
Ready-mix concrete (per cubic yards)
 
4.4
 %
 
(0.1
)%
 
16.1
 %
 
2.1
%
Asphalt (per ton)
 
(2.2
)%
 
6.2
 %
 
2.7
 %
 
2.5
%
 
 
 
 
 
 
 
 
 
Year over Year Comparison (Excluding acquisitions)
 
Volume
 
Pricing
 
Volume
 
Pricing
Aggregates (per ton)
 
(1.9
)%
 
6.5
 %
 
(0.1
)%
 
3.3
%
Cement (per ton)
 
(10.1
)%
 
0.1
 %
 
(8.6
)%
 
0.6
%
Ready-mix concrete (per cubic yards)
 
(4.8
)%
 
(0.7
)%
 
0.2
 %
 
2.0
%
Asphalt (per ton)
 
(3.0
)%
 
6.4
 %
 
(0.4
)%
 
2.4
%



11



SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Unaudited Reconciliations of Gross Revenue to Net Revenue by Line of Business
($ and Units in thousands, except pricing information)
 
 
 
Three months ended December 29, 2018
 
 
 
 
 
 
Gross Revenue
 
Intercompany
 
Net
 
 
Volumes
 
Pricing
 
by Product 
 
Elimination/Delivery 
 
Revenue 
Aggregates
 
11,543

 
$
10.50

 
$
121,195

 
$
(28,132
)
 
$
93,063

Cement
 
559

 
112.40

 
62,822

 
(1,385
)
 
61,437

Materials
 
 
 
 
 
$
184,017

 
$
(29,517
)
 
$
154,500

Ready-mix concrete
 
1,269

 
107.34

 
136,188

 
436

 
136,624

Asphalt
 
1,231

 
56.32

 
69,324

 
(47
)
 
69,277

Other Products
 
 
 
 
 
79,451

 
(69,289
)
 
10,162

Products
 
 
 
 
 
$
284,963

 
$
(68,900
)
 
$
216,063

 
 
 
 
Year ended December 29, 2018
 
 
 
 
 
 
Gross Revenue
 
Intercompany
 
Net
 
 
Volumes
 
Pricing
 
by Product
 
Elimination/Delivery
 
Revenue
Aggregates
 
47,624

 
$
10.27

 
$
489,200

 
$
(115,376
)
 
$
373,824

Cement
 
2,329

 
113.14

 
263,526

 
(4,650
)
 
258,876

Materials
 
 
 
 
 
$
752,726

 
$
(120,026
)
 
$
632,700

Ready-mix concrete
 
5,433

 
107.61

 
584,630

 
(516
)
 
584,114

Asphalt
 
5,404

 
55.57

 
300,286

 
(263
)
 
300,023

Other Products
 
 
 
 
 
366,521

 
(283,199
)
 
83,322

Products
 
 
 
 
 
$
1,251,437

 
$
(283,978
)
 
$
967,459


12



SUMMIT MATERIALS, INC. AND SUBSIDIARIES
Unaudited Reconciliations of Non-GAAP Financial Measures
($ in thousands, except share and per share amounts)
The tables below reconcile our net income (loss) to Adjusted EBITDA by segment for the three months and years ended December 29, 2018 and December 30, 2017.
 
Reconciliation of Net Income (Loss) to Adjusted EBITDA
 
Three months ended December 29, 2018
by Segment
 
West
 
East
 
Cement
 
Corporate
 
Consolidated
($ in thousands)
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
11,738

 
$
16,451

 
$
21,461

 
$
(68,277
)
 
$
(18,627
)
Interest expense (income)
 
950

 
1,094

 
(2,021
)
 
29,909

 
29,932

Income tax (benefit) expense
 
(81
)
 
27

 

 
43,552

 
43,498

Depreciation, depletion and amortization
 
23,627

 
20,191

 
9,345

 
703

 
53,866

EBITDA
 
$
36,234

 
$
37,763

 
$
28,785

 
$
5,887

 
$
108,669

Accretion
 
138

 
260

 
(17
)
 

 
381

Tax receivable agreement benefit
 

 

 

 
(22,684
)
 
(22,684
)
Transaction costs
 
1

 

 

 
420

 
421

Non-cash compensation
 

 

 

 
5,545

 
5,545

Other
 
1,310

 
(488
)
 

 
247

 
1,069

Adjusted EBITDA
 
$
37,683

 
$
37,535

 
$
28,768

 
$
(10,585
)
 
$
93,401

Adjusted EBITDA Margin (1)
 
17.2
%
 
23.7
%
 
42.7
%
 
 
 
21.0
%
 
Reconciliation of Net Income (Loss) to Adjusted EBITDA
 
Three months ended December 30, 2017
by Segment
 
West
 
East
 
Cement
 
Corporate
 
Consolidated
($ in thousands)
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
28,048

 
$
22,237

 
$
27,171

 
$
(32,946
)
 
$
44,510

Interest expense (income)
 
1,338

 
579

 
(1,415
)
 
28,171

 
28,673

Income tax expense (benefit)
 
486

 
(843
)
 

 
213,456

 
213,099

Depreciation, depletion and amortization
 
19,110

 
17,093

 
8,405

 
661

 
45,269

EBITDA
 
$
48,982

 
$
39,066

 
$
34,161

 
$
209,342

 
$
331,551

Accretion
 
215

 
220

 
58

 

 
493

Loss on debt financings
 

 

 

 
4,625

 
4,625

Tax receivable agreement expense
 

 

 

 
(232,261
)
 
(232,261
)
Transaction costs
 
(99
)
 

 

 
1,358

 
1,259

Non-cash compensation
 

 

 

 
6,992

 
6,992

Other
 
1,636

 
311

 

 
(395
)
 
1,552

Adjusted EBITDA
 
$
50,734

 
$
39,597

 
$
34,219

 
$
(10,339
)
 
$
114,211

Adjusted EBITDA Margin (1)
 
22.6
%
 
27.9
%
 
45.9
%
 
 
 
25.9
%

13



Reconciliation of Net Income (Loss) to Adjusted EBITDA
 
Year ended December 29, 2018
by Segment
 
West
 
East
 
Cement
 
Corporate
 
Consolidated
($ in thousands)
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
109,363

 
$
58,579

 
$
83,148

 
$
(214,760
)
 
$
36,330

Interest expense (income)
 
5,064

 
3,491

 
(6,815
)
 
114,808

 
116,548

Income tax expense
 
535

 
32

 

 
59,180

 
59,747

Depreciation, depletion and amortization
 
91,224

 
74,463

 
34,996

 
2,622

 
203,305

EBITDA
 
$
206,186

 
$
136,565

 
$
111,329

 
$
(38,150
)
 
$
415,930

Accretion
 
570

 
970

 
65

 

 
1,605

Loss on debt financings
 

 

 

 
149

 
149

Tax receivable agreement benefit
 

 

 

 
(22,684
)
 
(22,684
)
Gain on sale of business
 
(12,108
)
 

 

 

 
(12,108
)
Transaction costs
 
(3
)
 

 

 
4,241

 
4,238

Non-cash compensation
 

 

 

 
25,378

 
25,378

Other (2)
 
(5,646
)
 
497

 

 
(1,098
)
 
(6,247
)
Adjusted EBITDA
 
$
188,999

 
$
138,032

 
$
111,394

 
$
(32,164
)
 
$
406,261

Adjusted EBITDA Margin (1)
 
18.7
%
 
22.4
%
 
39.7
%
 
 

 
21.3
%
 
 
Reconciliation of Net Income (Loss) to Adjusted EBITDA
 
Year ended December 30, 2017
by Segment
 
West
 
East
 
Cement
 
Corporate
 
Consolidated
($ in thousands)
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
121,390

 
$
68,361

 
$
92,956

 
$
(156,930
)
 
$
125,777

Interest expense (income)
 
6,924

 
3,082

 
(3,760
)
 
102,303

 
108,549

Income tax expense (benefit)
 
1,910

 
(864
)
 

 
(285,023
)
 
(283,977
)
Depreciation, depletion and amortization
 
70,499

 
66,436

 
38,107

 
2,601

 
177,643

EBITDA
 
$
200,723

 
$
137,015

 
$
127,303

 
$
(337,049
)
 
$
127,992

Accretion
 
815

 
816

 
244

 

 
1,875

Loss on debt financings
 

 

 

 
4,815

 
4,815

Tax receivable agreement expense
 

 

 

 
271,016

 
271,016

Transaction costs
 
(76
)
 

 

 
7,809

 
7,733

Non-cash compensation
 

 

 

 
21,140

 
21,140

Other
 
2,128

 
1,277

 

 
(2,199
)
 
1,206

Adjusted EBITDA
 
$
203,590

 
$
139,108

 
$
127,547

 
$
(34,468
)
 
$
435,777

Adjusted EBITDA Margin (1)
 
22.6
%
 
25.4
%
 
42.0
%
 
 
 
24.9
%
_______________________________________________________
(1) Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue.
(2) In the year ended December 29, 2018, we negotiated a $6.9 million reduction in the amount of a contingent liability from one of our acquisitions. As we had passed the period to revise the opening balance sheet for this acquisition, the adjustment was recorded as other income.

14



The table below reconciles our net (loss) income per share attributable to Summit Materials, Inc. to adjusted diluted net (loss) income per share for the three months and years ended December 29, 2018 and December 30, 2017. The per share amount of the net (loss) 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) income per share.
 
 
Three months ended
 
Year ended
 
 
December 29, 2018
 
December 30, 2017
 
December 29, 2018
 
December 30, 2017
Reconciliation of Net Income (Loss) Per Share to Adjusted Diluted EPS
 
Net Loss
 
Per Equity Unit
 
Net Income
 
Per Equity Unit
 
Net Income
 
Per Equity Unit
 
Net Income
 
Per Equity Unit
Net (loss) income attributable to Summit Materials, Inc.
 
$
(19,163
)
 
$
(0.17
)
 
$
43,010

 
$
0.38

 
$
33,906

 
$
0.30

 
$
121,830

 
$
1.08

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interest
 
536

 
0.01

 
1,500

 
0.01

 
2,424

 
0.02

 
3,974

 
0.04

Adjustment to acquisition deferred liability
 

 

 

 

 
(6,947
)
 
(0.06
)
 

 

Gain on sale of business
 

 

 

 

 
(12,108
)
 
(0.11
)
 

 

Loss on debt financings
 

 

 
4,625

 
0.04

 
149

 

 
4,815

 
0.04

Adjusted diluted net (loss) income before tax related adjustments
 
(18,627
)
 
(0.16
)
 
49,135

 
0.43

 
17,424

 
0.15

 
130,619

 
1.16

Tax receivable agreement (benefit) expense
 
(22,684
)
 
(0.20
)
 
(232,261
)
 
(2.04
)
 
(22,684
)
 
(0.20
)
 
271,016

 
2.40

Unrecognized tax benefits
 
22,663

 
0.20

 

 

 
22,663

 
0.20

 

 

Valuation allowance release
 

 

 

 

 

 

 
(531,952
)
 
(4.70
)
Change in Federal statutory tax rates
 

 

 
235,253

 
2.07

 

 

 
235,253

 
2.07

Adjusted diluted net (loss) income
 
$
(18,648
)
 
$
(0.16
)
 
$
52,127

 
$
0.46

 
$
17,403

 
$
0.15

 
$
104,936

 
$
0.93

Weighted-average shares:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic Class A common stock
 
111,656,069

 
 
 
110,128,357

 
 
 
111,380,175

 
 
 
108,696,438

 
 
LP Units outstanding
 
3,435,518

 
 
 
3,803,892

 
 
 
3,512,669

 
 
 
4,371,705

 
 
Total equity units
 
115,091,587

 
 
 
113,932,249

 
 
 
114,892,844

 
 
 
113,068,143

 
 
 
The following table reconciles operating income to Adjusted Cash Gross Profit and Adjusted Cash Gross Profit Margin for the three months and years ended December 29, 2018 and December 30, 2017 
 
 
Three months ended
 
Year ended
 
 
December 29,
 
December 30,
 
December 29,
 
December 30,
Reconciliation of Operating Income to Adjusted Cash Gross Profit
 
2018
 
2017
 
2018
 
2017
($ in thousands)
 
 
 
 
 
 
 
 
Operating income
 
$
28,545

 
$
57,306

 
$
162,466

 
$
220,877

General and administrative expenses
 
62,634

 
66,941

 
253,609

 
242,670

Depreciation, depletion, amortization and accretion
 
54,247

 
45,762

 
204,910

 
179,518

Transaction costs
 
421

 
1,259

 
4,238

 
7,733

Adjusted Cash Gross Profit (exclusive of items shown separately)
 
$
145,847

 
$
171,268

 
$
625,223

 
$
650,798

Adjusted Cash Gross Profit Margin (exclusive of items shown separately) (1)
 
32.8
%
 
38.9
%
 
32.7
%
 
37.1
%
_______________________________________________________
(1) Adjusted Cash Gross Profit Margin is defined as Adjusted Cash Gross Profit as a percentage of net revenue.

15



The following table reconciles net cash provided by operating activities to free cash flow for the three months and years ended December 29, 2018 and December 30, 2017
 
 
Three months ended
 
Year ended
 
 
December 29,
 
December 30,
 
December 29,
 
December 30,
($ in thousands)
 
2018
 
2017
 
2018
 
2017
Net income
 
$
(18,627
)
 
$
44,510

 
$
36,330

 
$
125,777

Non-cash items
 
104,714

 
269,771

 
263,565

 
(81,113
)
Net income adjusted for non-cash items
 
86,087

 
314,281

 
299,895

 
44,664

Change in working capital accounts
 
52,724

 
(154,531
)
 
(90,527
)
 
247,519

Net cash provided by operating activities
 
138,811

 
159,750

 
209,368

 
292,183

Capital expenditures, net of asset sales
 
(33,724
)
 
(42,886
)
 
(199,050
)
 
(177,074
)
Free cash flow
 
$
105,087

 
$
116,864

 
$
10,318

 
$
115,109

 
 
 
Contact:
 
Mr. Brian Harris
Executive Vice President and Chief Financial Officer
Summit Materials, Inc.
brian.harris@summit-materials.com



16