Exhibit 99.1
Summit Materials, Inc. Reports Fourth Quarter and Full Year 2020 Results
- Record 2020 Net Income Attributable to Summit Inc of $138.0 million
- 4Q Net Income Attributable to Summit Inc. of $35.2 million
- Leverage ratio improved to 3.2x
- Record Full Year 2020 Adjusted EBITDA of $485.0 million, an increase of 5.1%
DENVER, CO. - (February 23, 2021) - Summit Materials, Inc. (NYSE: SUM, “Summit,” "Summit Inc." or the “Company”), a leading vertically integrated construction materials company, today announced results for the fourth quarter and full year 2020.
For the three months ended January 2, 2021, the Company reported net income attributable to Summit Inc. of $35.2 million, or $0.31 per basic share, compared to net income attributable to Summit Inc. of $35.7 million, or $0.32 per basic share in the comparable prior year period. Summit reported adjusted diluted net income of $28.8 million, or $0.25 per adjusted diluted share as compared to adjusted diluted net income of $71.5 million, or $0.62 per adjusted diluted share in the prior year period. For the full year 2020, net income attributable to Summit Inc. was $138.0 million, or $1.21 per basic share, compared to $59.1 million, or $0.53 per basic share, in 2019.
Summit's net revenue increased 13.0% in the fourth quarter of 2020 to $571.9 million, compared to $506.3 million in the fourth quarter of 2019, on higher ready-mix concrete, aggregates, asphalt and paving revenue, relative to a year ago. Net revenue increased $104.1 million to $2,134.8 million in the year ended January 2, 2021, resulting from growth in all lines of business other than cement.
The Company reported operating income of $66.2 million in the fourth quarter 2020, compared to $59.9 million in the prior year period, and operating income of $225.2 million in the full year 2020, compared to $213.6 million in 2019. Operating income increased by $11.6 million, or 5.4%, in 2020 as compared to 2019, primarily due to net revenue gains, partially offset by higher G&A costs due in part to a management transition that occurred earlier in the year. Summit's operating margin percentage for the three and twelve months ended January 2, 2021 decreased to 11.6% from 11.8%, and was unchanged at 10.5% respectively, from the comparable period a year ago, due to the factors noted above.
Adjusted EBITDA increased in the fourth quarter to $130.6 million as compared to $121.1 million in the fourth quarter 2019, and for full year 2020 Adjusted EBITDA increased to $485.0 million from $461.5 million in 2019.
For the three months ended January 2, 2021, sales volumes increased 24.7% in aggregates, 4.5% in cement, 6.4% in ready-mix concrete and 20.3% in asphalt relative to the same period last year. Organic average selling prices for aggregates decreased 3.6% in the fourth quarter of 2020 due to changes in product mix relative to a year ago as the fourth quarter 2019 included a contribution from flood repair work. Inclusive of acquisitions, average selling prices in the fourth quarter of 2020 decreased 6.2% in aggregates, and increased 2.8% in cement, 3.2% in ready-mix concrete and 2.1% in asphalt. For the full year 2020, sales volumes increased 9.5% in aggregates, 5.0% in ready-mix concrete and 4.7% in asphalt, and decreased 4.6% in cement. Average selling prices in full year 2020 decreased 2.0% in aggregates due to product mix, and increased 1.5% in cement, 4.7% in ready-mix concrete and 1.4% in asphalt. On a mix-adjusted basis, aggregates prices increased 1.7%.
Anne Noonan, CEO of Summit Materials, commented, "Summit delivered a strong finish to 2020 as migration trends continued to favor our rural and exurban markets, which directly benefited residential construction activity. In many of our key states, public spending activity was resilient and we had more working days. We are reporting record annual net income, Adjusted EBITDA and free cash flow. We are focused on sustainable growth with investments in greenfields and end markets that are underpinned by strong growth fundamentals. Our leverage ratio declined to 3.2x at year end, down from 3.6x a year ago. Most importantly, we continue to vigilantly practice safety and distancing protocols in response to the COVID-19 outbreak."
As of January 2, 2021, the Company had $418.2 million in cash and $1.9 billion in debt outstanding. The Company's $345 million revolving credit facility has $329 million available after letters of credit. For the year ended January 2, 2021, cash flow provided by operations was $408.9 million while cash paid for capital equipment was $177.2 million. Brian Harris, CFO of Summit Materials added, "Record annual net income and improved working capital management resulted in record annual free cash flow of $245.6 million. We ended 2020 at 3.2x leverage, which is the lowest year-end leverage ratio in Summit's history, combined with nearly $750 million in available liquidity."
For the full year 2021, Summit is currently projecting Adjusted EBITDA of approximately $490 million to $520 million.
The Company is announcing 2021 capital expenditure guidance of $200 million to $220 million including approximately $25 million to $35 million for greenfield projects.
Full-Year 2020 | Results by Line of Business
Aggregates Business: Aggregates net revenues were $498.0 million in 2020, compared to $469.7 million the prior year. Aggregates adjusted cash gross profit margin decreased to 59.2% in 2020 compared to 60.2% on a combination of higher volumes, and product mix. Aggregates sales volumes increased 9.5% in 2020, when compared to the prior year period on higher organic volume growth, particularly in Texas, Utah, and Kansas. Average selling prices for aggregates decreased 2.0% in 2020 when compared to the prior year period, which included some
The following information was filed by Summit Materials, Inc. (SUM) on Tuesday, February 23, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.