Attached files

file filename
8-K - 8-K - Summit Materials, Inc.d917098d8k.htm

Exhibit 99.1

LOGO

Summit Materials Announces First Quarter 2015 Results

Denver, Colorado (May 5, 2015) — Summit Materials, Inc. (NYSE: SUM, “Summit” or the “Company”), a leading vertically integrated construction materials company, today announced results for the first quarter ended March 28, 2015.

First Quarter 2015 Highlights Compared to First Quarter 2014:

 

    Net revenue grew 28.8% to $175.1 million.

 

    Operating loss of $59.0 million, compared to $35.0 million, due to initial public offering costs.

 

    Adjusted EBITDA improved to a $5.0 million deficit, compared to a $15.5 million deficit.

 

    Gross profit increased 59.3% to $35.7 million.

 

    Aggregates, cement and ready-mixed concrete volumes grew 67.4%, 39.3% and 52.0%, respectively.

 

    Aggregates, cement, ready-mixed concrete and asphalt organic pricing improved 4.5%, 10.7%, 6.3% and 17.5%, respectively.

 

    Completes initial public offering in March 2015 raising net proceeds of $433.0 million.

Tom Hill, the President and CEO of Summit, stated, “We are pleased to report our first quarter results as a public company. We delivered a solid quarter of growth and profitability and improvement throughout our entire business. We experienced improving demand in our markets and also benefitted from the favorable pricing environment across our vertically integrated lines of business. The favorable impact of our acquisitive growth strategy is also evident as we continue to outpace the growth of the U.S. construction industry, realizing the accretive benefits of our strategic platform and bolt-on additions. We expanded our Adjusted EBITDA margin by 860 basis points and improved our gross margin by 390 basis points, reflecting our successful efforts to focus on growing our materials and products revenues and improving margins in our paving and other services. As we move forward in 2015, we are focused on building on the core demand improvements in our markets and sourcing value-enhancing acquisitions in select markets, while remaining disciplined with our costs to generate additional cash flow.”

First Quarter 2015 Operating Results

In the first quarter 2015, net revenue increased 28.8% to $175.1 million, compared to $136.0 million in the prior year quarter. The increase in net revenue was primarily attributable to an increase in volumes in the aggregates, cement and ready-mixed concrete lines of business, largely in the West region. Net revenue grew organically by $6.7 million, or 4.9%, compared to the prior year quarter.

Adjusted EBITDA increased to a $5.0 million deficit, compared to $15.5 million deficit in the prior year quarter. Adjusted EBITDA by region in the first quarter 2015 compared to the prior year quarter was as follows:

 

    The West Region grew $10.1 million, primarily driven by a higher mix of net revenue from aggregates, organic volume growth and the impact of 2014 acquisitions in the Houston and Midland/Odessa, Texas and British Columbia, Canada markets.

 

    The Central Region increased $1.1 million with higher volume and prices in aggregates and cement and higher prices in asphalt, which more than offset lower asphalt volumes and a $2.5 million increase in repair and maintenance expense at the Company’s cement plant.

 

    The East Region improved $1.5 million as a result of an increase in aggregates volumes.

Gross profit increased 59.3% to $35.7 million, compared to $22.4 million in the prior year quarter. As a percentage of net revenue, gross margin improved to 20.4%, compared to 16.5% in the prior year quarter, primarily attributable to a higher mix of net revenue from materials and products as a result of acquisitions completed in 2014.

Materials Results – Net revenue from materials increased 68.0% to $50.1 million, compared to $29.8 million in the prior year quarter. Aggregates volumes grew 67.4% driven by 12.8% organic volume growth and the remainder attributable to acquisitions.


Aggregates organic prices increased 4.5% with the improvement due to higher prices across most markets. Aggregates prices declined 0.9% primarily due to the regional mix effect of acquisitions in markets with lower absolute prices. Cement volumes and prices increased 39.3% and 10.7%, respectively, both driven by additional market demand. Gross profit from materials more than doubled to $10.1 million, compared to $4.3 million in the prior year quarter.

Products Results – Net revenue from products increased 40.5% to $98.8 million, compared to $70.4 million in the prior year quarter. Ready-mixed concrete volumes increased 52.0% driven by organic volume that was up 13.2% with the remainder attributable to acquisitions. Ready-mixed concrete prices increased 8.9%, largely benefitting from the pass through of higher industry cement prices. Asphalt pricing grew 17.5% due to a shift in product mix which included a lower percentage of base materials, while inclement weather resulted in a 30.8% reduction in volumes. Gross profit from products grew 66.7% to $19.0 million, compared to $11.4 million in the prior year quarter.

Liquidity and Capital Resources

In March 2015, Summit completed its initial public offering of Class A common stock, raising net proceeds of approximately $433.0 million, including the full exercise of the underwriter’s option to purchase additional shares. In connection with the offering, Summit increased its revolving credit facility to $235.0 million and extended the maturity date to March 2020. As of March 28, 2015, the Company’s borrowing capacity was fully available on its undrawn revolver (excluding $23.3 million of letters of credit).

At March 28, 2015, the Company had cash of $315.0 million and total outstanding debt of $1,062.7 million, as compared to cash of $13.2 million and total outstanding debt of approximately $1,064.9 million at December 27, 2014.

Subsequent Events

Acquisition Activity

In April 2015, Summit signed a definitive agreement with Lafarge North America Inc. (“Lafarge”) to acquire its 1.2 million short ton capacity cement plant in Davenport, Iowa and seven cement distribution terminals (“Davenport Assets”) for a cash purchase price of $450.0 million plus an exchange of Summit’s Bettendorf, Iowa cement distribution terminal. The transaction is expected to close in the third quarter of 2015, pending final regulatory approval and the closing of the merger of Lafarge’s parent company, Lafarge S.A., with Holcim Ltd.

The Davenport Assets will be integrated with Summit’s Continental Cement Company operations. The combined business is expected to have 2.5 million short tons of cement capacity across two plants located in Hannibal, Missouri and Davenport and eight cement distribution terminals with a total import capacity of 1.5 million short tons from Minneapolis, Minnesota to New Orleans, Louisiana.

The cash purchase price of $450.0 million is expected to be funded primarily by an increase of Summit’s existing term debt facility together with new equity. Under the terms of the agreement, Summit has agreed to pay an initial purchase price of $370.0 million upon closing of the transaction, with the remaining purchase price of $80.0 million due by December 31, 2015.

Liquidity

In April 2015, in connection with its initial public offering, the Company redeemed $288.2 million aggregate principal amount of its outstanding 10 12% Senior Notes due 2020 at a redemption price equal to par, plus an applicable premium of $38.2 million, plus $5.2 million of accrued and unpaid interest.

 

2


Webcast and Conference Call Information

Summit will conduct a conference call at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time) on Tuesday, May 5, 2015 to review first quarter results, discuss recent events, and conduct a question-and-answer period. A webcast of the conference call will be available in the Investors section of Summit’s website at www.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 telephone conference call:

 

Domestic: 1-888-287-5563
International: 1-719-457-2689
Conference ID: 7372603

To listen to a replay of the telephone conference call:

 

Domestic: 1-877-870-5176
International: 1-858-384-5517
Conference ID: 7372603
The playback recording can be accessed through June 5, 2015.

About Summit Materials

Summit Materials is a leading vertically integrated construction materials company that supplies aggregates, cement, ready-mixed concrete and asphalt in the United States and western Canada. Summit is a geographically diverse, aggregates-based business of scale that offers customers a single-source provider of construction materials and related downstream products in the residential, nonresidential, and public infrastructure end markets. Summit has completed more than 30 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 rules of the SEC regulate the use in filings with the SEC of “non-GAAP financial measures,” such as Adjusted EBITDA, Further Adjusted EBITDA, gross profit, adjusted net loss per share, and free cash flow 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 Adjusted EBITDA, Further Adjusted EBITDA, gross profit, adjusted net loss per share, and free cash flow 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. Further Adjusted EBITDA is defined in our senior secured credit facilities and used to measure compliance with covenants, including interest coverage and debt incurrence, and is used to measure our debt incurrence and restricted payment capacity under the indenture governing our senior notes. Our use of the terms Adjusted EBITDA, Further Adjusted EBITDA, gross profit and adjusted net loss per share, may vary from the use of such terms by others and should not be considered as alternatives to 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 and Further Adjusted EBITDA 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 and Further 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; (iv) income tax payments we are required to make; and (v) any cash requirements for the replacement cost of assets being depreciated or amortized. Because of these limitations, we rely primarily on our U.S. GAAP results and use Adjusted EBITDA and Further Adjusted EBITDA only supplementally.

Adjusted EBITDA, Further Adjusted EBITDA, gross profit, adjusted net loss per share, and free cash flow reflect an additional way 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. However, non-GAAP financial measures should not be construed as being more important than other comparable U.S. GAAP financial measures and should be considered in conjunction with the U.S. GAAP measures. In addition, non-GAAP financial measures are not standardized; therefore, it may not be possible to compare such financial measures with other companies’ non-GAAP financial measures having the same or similar names. 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 tables attached to this press release.

 

3


Cautionary Statement Regarding Forward-Looking Statements

This press release contains “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. Any and all statements made relating to the timing, funding of, and expectations for our anticipated purchase of the Davenport Assets, the macroeconomic outlook for our markets, potential acquisition activity, our estimated and projected earnings, margins, costs, expenditures, cash flows, sales volumes and financial results are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those expected. 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 impact 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 achieved. 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 our prospectus dated March 11, 2015, filed with the SEC on March 13, 2015. Such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.

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 otherwise required by law.

 

4


SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Operations

($ in thousands)

 

     Three months ended  
     March 28,     March 29,  
     2015     2014  

Revenue:

    

Product

   $ 148,920      $ 100,168   

Service

     26,219        35,851   
  

 

 

   

 

 

 

Net revenue

  175,139      136,019   

Delivery and subcontract revenue

  18,848      15,072   
  

 

 

   

 

 

 

Total revenue

  193,987      151,091   
  

 

 

   

 

 

 

Cost of revenue (excluding items shown separately below):

Product

  119,791      84,477   

Service

  19,630      29,126   
  

 

 

   

 

 

 

Net cost of revenue

  139,421      113,603   

Delivery and subcontract cost

  18,848      15,072   
  

 

 

   

 

 

 

Total cost of revenue

  158,269      128,675   
  

 

 

   

 

 

 

General and administrative expenses

  67,234      35,488   

Depreciation, depletion, amortization and accretion

  26,126      19,356   

Transaction costs

  1,364      2,591   
  

 

 

   

 

 

 

Operating loss

  (59,006   (35,019

Other expense (income), net

  391      (194

Loss on debt financings

  799      —     

Interest expense

  24,109      18,819   
  

 

 

   

 

 

 

Loss from continuing operations before taxes

  (84,305   (53,644

Income tax benefit

  (4,468   (596
  

 

 

   

 

 

 

Loss from continuing operations

  (79,837   (53,048

Loss from discontinued operations

  —        20   
  

 

 

   

 

 

 

Net loss

  (79,837   (53,068

Net loss attributable to noncontrolling interest in subsidiaries

  (1,982   (2,515
    

 

 

 

Net loss attributable to Summit Holdings

  (67,704 $ (50,553
  

 

 

   

 

 

 

Net loss attributable to Summit Materials, Inc.

$ (10,151
  

 

 

   

Net loss per share of Class A common stock:

Basic

$ (0.38

Diluted

$ (0.38

Weighted average shares of Class A common stock:

Basic

  26,584,738   

Diluted

  26,584,738   

 

5


SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

($ in thousands)

 

     March 28,     December 27,  
     2015     2014  
Assets     

Current assets:

    

Cash

   $ 314,980     $ 13,215  

Accounts receivable, net

     109,941       141,302  

Costs and estimated earnings in excess of billings

     11,836       10,174  

Inventories

     133,307       111,553  

Other current assets

     17,476       17,172  
  

 

 

   

 

 

 

Total current assets

  587,540     293,416  

Property, plant and equipment, less accumulated depreciation, depletion and amortization (March 28, 2015 - $297,187 and December 27, 2014 - $279,375)

  948,129     950,601  

Goodwill

  415,582     419,270  

Intangible assets, less accumulated amortization (March 28, 2015 - $3,623 and December 27, 2014 - $3,073)

  16,891     17,647  

Other assets

  50,112     48,843  
  

 

 

   

 

 

 

Total assets

$ 2,018,254   $ 1,729,777  
  

 

 

   

 

 

 

Liabilities, Redeemable Noncontrolling Interest and Partners’ Interest/Stockholders’ Equity

Current liabilities:

Current portion of debt

$ 5,275   $ 5,275  

Current portion of acquisition-related liabilities

  24,851     18,402  

Accounts payable

  70,840     78,854  

Accrued expenses

  81,612     101,496  

Billings in excess of costs and estimated earnings

  8,309     8,958  
  

 

 

   

 

 

 

Total current liabilities

  190,887     212,985  

Long-term debt

  1,057,418     1,059,642  

Acquisition-related liabilities

  44,245     42,736  

Other noncurrent liabilities

  97,433     93,691  
  

 

 

   

 

 

 

Total liabilities

  1,389,983     1,409,054  
  

 

 

   

 

 

 

Redeemable noncontrolling interest

  —       33,740  

Stockholders’ equity/partners’ interest:

Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 26,584,738 shares issued and outstanding as of March 28, 2015

  266     —    

Class B common stock, par value $0.01 per share; 250,000,000 shares authorized, 69,007,297 shares issued and outstanding as of March 28, 2015

  690     —    

Partners’ interest

  —       285,685  

Additional paid-in capital

  456,406     —    

Accumulated deficit

  (10,151 )   —    

Accumulated other comprehensive loss

  (1,050 )   —    
  

 

 

   

 

 

 

Stockholders’ equity/partners’ interest:

  446,161     285,685  

Noncontrolling interest in consolidated subsidiaries

  1,206     1,298  

Noncontrolling interest in Summit Materials, Inc.

  180,904     —    
  

 

 

   

 

 

 

Total stockholders’ equity/partners’ interest

  628,271     286,983  
  

 

 

   

 

 

 

Total liabilities, redeemable noncontrolling interest and stockholders’ equity/partners’ interest

$ 2,018,254   $ 1,729,777  
  

 

 

   

 

 

 

 

6


SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Cash Flows

($ in thousands)

 

     Three months ended  
     March 28,     March 29,  
     2015     2014  

Cash flow from operating activities:

    

Net loss

   $ (79,837   $ (53,068

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

    

Depreciation, depletion, amortization and accretion

     27,358        20,789   

Share-based compensation expense

     15,217        566   

Deferred income tax benefit

     —          (525

Net gain on asset disposals

     (1,834     (48

Loss on debt financings

     688        —     

Other

     780        558   

Decrease (increase) in operating assets, net of acquisitions:

    

Accounts receivable, net

     30,309        16,989   

Inventories

     (21,413     (13,377

Costs and estimated earnings in excess of billings

     (1,662     (839

Other current assets

     (303     9   

Other assets

     755        3,202   

(Decrease) increase in operating liabilities, net of acquisitions:

    

Accounts payable

     (10,045     (10,239

Accrued expenses

     (20,669     (9,620

Billings in excess of costs and estimated earnings

     (649     (2,728

Other liabilities

     (203     (2,044
  

 

 

   

 

 

 

Net cash used in operating activities

  (61,508   (50,375
  

 

 

   

 

 

 

Cash flow from investing activities:

Acquisitions, net of cash acquired

  —        (182,514

Purchases of property, plant and equipment

  (17,708   (19,941

Proceeds from the sale of property, plant and equipment

  2,741      2,202   

Other

  (276   7   
  

 

 

   

 

 

 

Net cash used for investing activities

  (15,243   (200,246
  

 

 

   

 

 

 

Cash flow from financing activities:

Proceeds from initial public offering

  460,000      —     

Capital issuance costs

  (35,956   —     

Capital contributions by partners

  —        24,350   

Proceeds from debt issuances

  104,000      306,750   

Debt issuance costs

  (4,055   (6,309

Payments on debt

  (106,441   (54,314

Purchase of noncontrolling interest in consolidated subsidiary

  (35,000   —     

Payments on acquisition-related liabilities

  (4,032   (638
  

 

 

   

 

 

 

Net cash provided by financing activities

  378,516      269,839   
  

 

 

   

 

 

 

Net increase in cash

  301,765      19,218   

Cash – beginning of period

  13,215      18,184   
  

 

 

   

 

 

 

Cash – end of period

$ 314,980    $ 37,402   
  

 

 

   

 

 

 

 

7


SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Revenue Data by Region and Product

($ in thousands)

 

     Three months ended  
     March 28,      March 29,  
     2015      2014  

Net Revenue:

     

West region

   $ 117,006       $ 88,264   

Central region

     50,588         41,134   

East region

     7,545         6,621   
  

 

 

    

 

 

 

Total net revenue

$ 175,139    $ 136,019   
  

 

 

    

 

 

 
     Three months ended  
     March 28,      March 29,  
     2015      2014  

Net Revenue by Product

     

Materials

   $ 50,088       $ 29,808   

Products

     98,832         70,360   

Services and other

     26,219         35,851   
  

 

 

    

 

 

 

Net Revenue

$ 175,139    $ 136,019   
  

 

 

    

 

 

 

Gross Profit

Materials

$ 10,137    $ 4,297   

Products

  18,992      11,393   

Services and other

  6,589      6,726   
  

 

 

    

 

 

 

Gross Profit

$ 35,718    $ 22,416   
  

 

 

    

 

 

 

 

8


SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Volume and Price Statistics

(Units in thousands)

 

     Three months ended  
Total Volume (in 000s)    March 28, 2015     March 29, 2014  

Aggregates (tons)

     6,089        3,637   

Cement (tons)

     124        89   

Ready-mixed concrete (cubic yards)

     693        456   

Asphalt (tons)

     296        428   
     Three months ended  
Pricing    March 28, 2015     March 29, 2014  

Aggregates (per ton)

   $ 8.60      $ 8.68   

Cement (per ton)

     95.52        86.27   

Ready-mixed concrete (per cubic yards)

     101.19        92.92   

Asphalt (per ton)

     56.98        48.48   
Quarter over Quarter Comparison    Volume     Pricing  

Aggregates

     67.4     (0.9 )% 

Cement

     39.3     10.7

Ready-mixed concrete

     52.0     8.9

Asphalt

     (30.8 )%      17.5
Quarter over Quarter Comparison    Volume     Pricing  
(Excluding acquisitions)             

Aggregates

     12.8     4.5

Cement

     39.3     10.7

Ready-mixed concrete

     13.2     6.3

Asphalt

     (30.8 )%      17.5

 

9


SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Reconciliations of Non-GAAP Financial Measures

($ in thousands)

The tables below reconcile our net loss to Adjusted EBITDA and present Adjusted EBITDA by segment for the three months ended March 28, 2015 and March 29, 2014.

 

     Three months ended  
Reconciliation of Net Loss to Adjusted EBITDA    March 28,
2015
     March 29,
2014
 

Net loss

   $ (79,837    $ (53,068

Depreciation, depletion and amortization

     25,722         19,149   

Interest expense

     24,109         18,819   

Income tax benefit

     (4,468      (596

Accretion

     404         207   

Initial public offering costs

     28,296         —     

Loss on debt financings

     799         —     

Loss from discontinued operations

     —           20   
  

 

 

    

 

 

 

Adjusted EBITDA

$ (4,975 $ (15,469
  

 

 

    

 

 

 

Adjusted EBITDA by Segment

West

$ 11,869    $ 1,791   

Central

  710      (423

East

  (7,867   (9,338

Corporate

  (9,687   (7,499
  

 

 

    

 

 

 

Adjusted EBITDA

$ (4,975 $ (15,469
  

 

 

    

 

 

 

The table below reconciles our net loss per share to adjusted net loss per share for the three months ended March 28, 2015.

 

Reconciliation of Net Loss Per Share to Adjusted Loss Per Share           Per Share  

Net loss attributable to Summit Materials, Inc.

   $ (10,151    $ (0.38

Initial public offering costs

     7,866         0.29   

Loss on debt financings

     222         0.01   
  

 

 

    

 

 

 

Adjusted net loss

$ (2,063 $ (0.08
  

 

 

    

Weighted average shares of Class A common stock:

Basic

  26,584,738   

Diluted

  26,584,738   

 

10


SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Reconciliations of Non-GAAP Financial Measures

($ in thousands)

The following table reconciles operating income to gross profit for the three months ended March 28, 2015 and March 29, 2014.

 

     Three months ended  
Reconciliation of Operating Loss to Gross Profit    March 28,
2015
    March 29,
2014
 

Operating loss

   $ (59,006   $ (35,019

General and administrative expenses

     67,234        35,488   

Depreciation, depletion, amortization and accretion

     26,126        19,356   

Transaction costs

     1,364        2,591   
  

 

 

   

 

 

 

Gross Profit

$ 35,718    $ 22,416   
  

 

 

   

 

 

 

Gross Margin

  20.4   16.5

 

 

The following table reconciles net cash used for operating activities to free cash flow for the three months ended March 28, 2015 and March 29, 2014.

 

     Three months ended  
     March 28,
2015
     March 29,
2014
 

Net loss

   $ (79,837    $ (53,068

Non-cash items

     42,209         21,340   
  

 

 

    

 

 

 

Net income adjusted for non-cash items

  (37,628   (31,728

Change in working capital accounts

  (23,880   (18,647
  

 

 

    

 

 

 

Net cash used for operating activities

  (61,508   (50,375

Capital expenditures, net of asset sales

  (14,967   (17,739
  

 

 

    

 

 

 

Free cash outflow

$ (76,475 $ (68,114
  

 

 

    

 

 

 

 

11


SUMMIT MATERIALS, INC AND SUBSIDIARIES

Unaudited Reconciliations of Non-GAAP Financial Measures

($ in thousands)

The following table presents a reconciliation of net loss to Further Adjusted EBITDA for the twelve months ended March 28, 2014 and December 27, 2014.

 

     Twelve months ended      Twelve months ended  
     March 28, 2015      December 27, 2014  

Net loss

   $ (33,052    $ (6,282

Interest expense

     92,033         86,742   

Income tax benefit

     (10,854      (6,983

Depreciation, depletion and amortization

     93,528         86,955   

Accretion

     1,068         871   

Initial public offering costs

     28,296         —     

Loss on debt financings

     799         —     

Discontinued operations

     (91      (71
  

 

 

    

 

 

 

Adjusted EBITDA

$ 171,727    $ 161,232   
  

 

 

    

 

 

 

Acquisition transaction expenses

  7,327      8,554   

Management fees and expenses

  5,011      4,933   

Strategic fees and initiatives

  141      419   

Non-cash compensation

  2,434      2,235   

Loss on disposal and impairment of assets

  8,640      8,735   

Severance and relocation costs

  754      1,163   

Other

  3,377      1,762   
  

 

 

    

 

 

 

Further Adjusted EBITDA

$ 199,411    $ 189,033   
  

 

 

    

 

 

 

EBITDA for certain completed acquisitions

  13,389      23,105   
  

 

 

    

 

 

 

Further Adjusted EBITDA (including run-rate for acquisitions)

$ 212,800    $ 212,138   
  

 

 

    

 

 

 

 

Contact: Investor Relations:

303-515-5159

Investorrelations@summit-materials.com

 

12