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2/6/2019

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--(BUSINESS WIRE)-- 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 intact 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 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 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.

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.

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 •

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.

            SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

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

  Three months endedYear endedDecember 29,       December 30,December 29,       December 30,2018201720182017(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.                             SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

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

  December 29,December 30,20182017Assets 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                   SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

($ in thousands)

  Year endedDecember 29,           December 30,20182017 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                   SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Revenue Data by Segment and Line of Business

($ in thousands)

  Three months endedYear endedDecember 29,       December 30,December 29,       December 30,2018201720182017 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.                 SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Volume and Price Statistics

(Units in thousands)

  Three months endedYear endedTotal VolumeDecember 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 endedYear endedPricingDecember 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 ComparisonVolumePricingVolumePricing 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)VolumePricingVolumePricing 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 %           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       NetVolumesPricingby ProductElimination/DeliveryRevenue 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, 2018Gross RevenueIntercompanyNetVolumesPricingby ProductElimination/DeliveryRevenue 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           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 EBITDAThree months ended December 29, 2018by SegmentWest       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 EBITDAThree months ended December 30, 2017by SegmentWestEastCementCorporateConsolidated ($ 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 %     Reconciliation of Net Income (Loss) to Adjusted EBITDAYear ended December 29, 2018by SegmentWestEastCementCorporateConsolidated ($ 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 EBITDAYear ended December 30, 2017by SegmentWestEastCementCorporateConsolidated ($ 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.               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 endedYear endedDecember 29, 2018     December 30, 2017December 29, 2018     December 30, 2017Reconciliation of Net Income (Loss) Per Share to Adjusted Diluted EPSNet 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 endedYear endedDecember 29,       December 30,December 29,       December 30,Reconciliation of Operating Income to Adjusted Cash Gross Profit2018201720182017 ($ 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.                 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 endedYear endedDecember 29,       December 30,December 29,       December 30, ($ in thousands) 2018201720182017 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     View source version on businesswire.com: https://www.businesswire.com/news/home/20190206005169/en/

Mr. Brian HarrisExecutive Vice President and Chief Financial OfficerSummit Materials, Inc.brian.harris@summit-materials.com

Source: Summit Materials, Inc.

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1/29/2019

Summit Materials Announces Fourth Quarter and Full-Year 2018 Results Conference Call Date

DENVER--(BUSINESS WIRE)-- Summit Materials, Inc. (NYSE: SUM, “Summit” or the “Company”), a leading vertically integrated construction materials company, today announced that it will release fourth quarter and full-year 2018 financial results before the market opens on Wednesday, February 6, 2019. A conference call will be held that same day at 11:00 a.m. eastern time (9:00 a.m. mountain time) to review Summit’s financial results, discuss recent events and conduct a question-and-answer session.

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, Inc.

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 non-residential 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.

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 expectations for our anticipated benefits from recent acquisitions, 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 Annual Report on Form 10-K for the fiscal year ended December 30, 2017 and any factors discussed in the section entitled “Risk Factors” in our quarterly reports on Form 10-Q or other SEC filings. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190129005975/en/

Mr. Brian HarrisExecutive Vice President and Chief Financial OfficerSummit Materials, Inc.brian.harris@summit-materials.com

Source: Summit Materials, Inc.

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11/6/2018

Summit Materials, Inc. Reports Third Quarter 2018 Results

- Net Revenue Growth of 8.8% in Three Month Period Ended September 29, 2018, Supported By Organic Volume Improvements

- Completed Two Materials-Based Bolt-on Acquisitions For Total Invested Capital of $72 million Since August 2018

- Reduced Midpoint of Adjusted EBITDA Guidance Range For The Full-Year 2018 By 14%

DENVER--(BUSINESS WIRE)-- Summit Materials, Inc. (NYSE: SUM, “Summit” or the “Company”), a leading vertically integrated construction materials company, today announced results for the third quarter 2018.

For the three months ended September 29, 2018, the Company reported net income attributable to Summit Inc. of $71.3 million or $0.64 per basic share, compared to net income attributable to Summit Inc. of $81.3 million or $0.74 per basic share in the comparable prior year period. Summit reported adjusted diluted net income of $61.9 million or $0.54 per adjusted diluted share as compared to adjusted diluted net income of $54.0 million or $0.48 per adjusted diluted share in the prior year period.

Summit's net revenue increased 11.6% in the first nine months of 2018 as compared to the same period in 2017, primarily due to acquisitions. Tom Hill, CEO of Summit Materials, stated, "We experienced significant inclement weather in the third quarter, as well as continued inflationary cost pressures in our businesses beyond our expectations. While we achieved organic volume and price increases in our aggregates and products during the third quarter, our net income declined and our Adjusted EBITDA remained flat in the third quarter of 2018 as compared to the third quarter of 2017, reflecting lower contributions from our cement segment and Houston operations together with inflation in our variable costs. We had expected normal weather going into the third quarter; instead, weather patterns continued to have a significant negative impact on most of our operating geographies.”

Organic sales volumes in Summit's cement segment were impacted by a combination of high precipitation levels, together with competitive pressures along the Mississippi River corridor. Further, Summit's Houston operations were affected by a wetter than normal third quarter, as rainfall in many parts of Texas reached all-time record levels in September. Summit's average selling prices on both materials and products gained traction through the third quarter, which partially offset these higher raw materials, freight, labor and fuel costs. As the inflationary cost increases have exceeded Summit's price increases, and the persistent weather conditions impacted operations, Summit reduced 2018 guidance for Adjusted EBITDA to $400 million to $410 million.

“Underlying demand conditions in most of our markets are healthy 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.

Since August 2018, Summit has completed two aggregates-based acquisitions for total invested capital of $72 million. During 2018 to date, Summit has completed 13 acquisitions for total invested capital of $300 million. Across these 13 transactions, Summit has added more than 400 million tons of aggregates reserves to its portfolio.

“While our guidance for Adjusted EBITDA has been reduced, we continue to generate significant free cash flow from operations that is helping to support the overall growth of our business,” stated Brian Harris, CFO of Summit Materials. The Company expects its net leverage ratio to approximate current levels at year end, based on the midpoint of the revised guidance. Summit plans to reduce its leverage during 2019 through a disciplined capital allocation program, reducing its capital expenditures and implementing an increasingly selective acquisition strategy.

Third Quarter 2018 | Results by Line of Business

Aggregates Business: Aggregates net revenues increased by 21.0% to $109.6 million in the third quarter 2018, when compared to the prior year period. Aggregates adjusted cash gross profit margin declined to 69.2% in the third quarter, compared to 73.0% in the prior year period, due to higher variable costs. Organic aggregates sales volumes increased 3.9% in the third quarter 2018, when compared to the prior-year period. Organic growth in aggregates sales volumes was due to higher volumes in the West Region, which more than offset a decline in organic aggregates sales volumes in the East Region. Organic average selling prices on aggregates increased 1.5% in the third quarter 2018 due to improvements in prices within both the West and East segments during the period.

Cement Business: Cement segment net revenues declined 7.2% to $94.0 million in the third quarter 2018, when compared to the prior-year period. Cement adjusted cash gross profit margin increased slightly to 50.7% in the third quarter, compared to 50.6% in the prior-year period, as productivity gains were mostly offset by a reduction in average selling price, coupled with higher freight, storage and demurrage costs related to weather-affected cement inventories. Organic sales volume of cement declined 6.4% in the third quarter, when compared to the prior year period, due to high levels of precipitation that continued to disrupt project work during the period, as well as increased competition. Organic average selling prices on cement decreased 1.0% in the third quarter, when compared to the prior year period, as competitive pressures continued in our markets.

Products Business: Net revenues increased 12.6% to $315.3 million in the third quarter 2018, when compared to the prior year period. Products adjusted cash gross profit margin declined to 22.5% in the third quarter, versus 26.1% 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 increased 3.2% in the third quarter, while organic average selling prices increased 2.3% as compared to the prior year period. Organic sales volumes of asphalt increased 3.2% in the third quarter, while organic average selling prices increased 3.6%, over the same period in 2017.

Third Quarter 2018 | Results By Reporting Segment

Net revenue increased by 8.8% to $625.0 million in the third quarter 2018, versus $574.4 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 $108.2 million in the third quarter 2018, compared to $113.9 million in the prior year period. Adjusted EBITDA was $172.0 million in the third quarter 2018, compared to $172.7 million in the prior year period.

West Segment: The West Segment reported operating income of $48.2 million in the third quarter 2018, compared to $57.5 million in the prior year period. Adjusted EBITDA decreased to $73.9 million in the third quarter 2018, compared to $76.6 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 third quarter increased 19.0% over the prior year as a result of contributions from acquisitions, a 10.0% increase in organic volumes and a 2.0% increase in organic average sales prices. Ready-mix concrete revenue in the third quarter 2018 increased 26.1% over the prior year period, as a result of contributions from acquisitions, along with a 7.6% increase in organic volumes and a 2.8% increase in organic average sales prices. Asphalt revenue also increased by 2.5% in the third quarter, resulting from a 4.9% increase in volumes, offset by a 1.0% decrease in average sales price.

East Segment: The East Segment reported operating income of $38.0 million in the third quarter 2018, compared to $36.9 million in the prior year period. Adjusted EBITDA increased to $58.3 million in the third quarter 2018, compared to $56.4 million in the prior year period. The quarterly improvement in East Segment operating income and Adjusted EBITDA were 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 by increased labor and hydrocarbon costs, as well as decreases in ready-mix volumes. Aggregates revenue increased 20.1%, primarily due to increases resulting from our acquisition program as well as increases in average sales prices as organic sales volumes were flat. Ready-mix concrete revenue decreased 1.1% as a result of lower sales volumes, partially offset by an increase in organic average sales prices. Asphalt revenue increased 18.8% 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 $33.5 million in the third quarter 2018, compared to $35.1 million in the prior year period. Adjusted EBITDA declined to $44.3 million in the third quarter 2018, compared to $46.9 million in the prior year period. The Company experienced slightly lower organic average selling prices as well as declines in organic sales volumes during the three month period ended September 29, 2018 due to high levels of precipitation in the Company’s Mississippi River markets and price-driven competitive pressures.

Acquisitions and Divestitures

As of November 6, 2018, the Company has completed 13 acquisitions in 2018, including two transactions that have closed since the Company’s last quarterly update on August 1, 2018. Total investment across the 13 acquisitions completed in 2018 was approximately $300 million, including approximately $72 million for the two bolt-on acquisitions completed since the last update.

Walker Sand & Gravel (Idaho). Walker Sand & Gravel is an aggregates business that expands the Company's market position and reserve base in Idaho. Summit closed on the acquisition in October.

Aggregate Reserves (Georgia). Summit acquired property in the greater Atlanta, Georgia area containing over 100 million tons of permitted reserves and an active quarry which is currently leased to a third party through mid 2021. Initially, Summit will receive royalty payments through the end of the lease, at which time Summit will take over quarry operations. Summit closed on the acquisition in October.

In the third quarter of 2018, the Company divested a non-core business in the West segment, receiving $21.6 million in cash proceeds, and recorded a gain of $12.1 million related to this transaction.

Liquidity and Capital Resources

As of September 29, 2018, the Company had cash on hand of $64.9 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 September 29, 2018, the Company had $1.8 billion in debt outstanding.

Financial Outlook

For the full-year 2018, the Company has reduced its Adjusted EBITDA guidance from a range of $460 million to $480 million to a range of $400 million to $410 million, including acquisition-related contributions from two transactions that closed since the Company’s last update in August 2018. No additional potential acquisitions are included within the Company’s full-year 2018 Adjusted EBITDA guidance. For the full-year 2018, the Company has revised its capital expenditure guidance to be in the range of $225 million to $235 million.

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 third quarter 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 December 6, 2018:

Domestic Replay:         1-844-512-2921 International Replay: 1-412-317-6671 Conference ID: 13684335   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. This press release also includes certain unaudited financial information for the last twelve months (“LTM”) ended September 29, 2018, which is calculated as the nine months ended September 29, 2018 plus the actual results for the year-ended December 30, 2017 less the actual results for the nine months ended September 30, 2017. This presentation is not in accordance with GAAP. However, we believe that this information is useful to investors as we use LTM financial information to evaluate our financial performance for ongoing planning purposes, including a continuous assessment of our financial performance in comparison to budgets and internal projections. In addition, we use such LTM financial information to test compliance with covenants under our senior secured credit facilities.

Adjusted EBITDA, Adjusted EBITDA Margin, LTM financial information 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.

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 (the “Annual Report”) and Summit Inc.'s 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 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; 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; unexpected operational difficulties; interruptions in our information technology systems and infrastructure; potential labor disputes; and rising prices for commodities, labor and other production and delivery costs as a result of inflation or otherwise. 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.

  SUMMIT MATERIALS, INC. AND SUBSIDIARIES Consolidated Statements of Operations

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

      Three months ended     Nine months endedSeptember 29,     September 30,September 29,     September 30,2018201720182017 Revenue: Product $ 512,822 $ 465,556 $ 1,229,596 $ 1,088,299 Service 112,195   108,831   234,572   223,500   Net revenue 625,017 574,387 1,464,168 1,311,799 Delivery and subcontract revenue 69,644   59,794   145,804   130,752   Total revenue 694,661   634,181   1,609,972   1,442,551   Cost of revenue (excluding items shown separately below): Product 321,586 277,301 814,166 677,861 Service 80,573   72,450   170,626   154,408   Net cost of revenue 402,159 349,751 984,792 832,269 Delivery and subcontract cost 69,644   59,794   145,804   130,752   Total cost of revenue 471,803   409,545   1,130,596   963,021   General and administrative expenses 59,457 59,175 190,975 175,729 Depreciation, depletion, amortization and accretion 53,974 48,969 150,663 133,756 Transaction costs 1,260   2,581   3,817   6,474   Operating income 108,167 113,911 133,921 163,571 Interest expense 28,889 28,921 86,616 79,876 Loss on debt financings — — 149 190 Tax receivable agreement expense — 501,752 — 503,277 Gain on sale of business (12,108 ) — (12,108 ) — Other income, net (3,371 ) (2,716 ) (11,942 ) (3,963 ) Income (loss) from operations before taxes 94,757 (414,046 ) 71,206 (415,809 ) Income tax expense (benefit) 20,765   (498,333 ) 16,249   (497,076 ) Net income 73,992 84,287 54,957 81,267 Net income (loss) attributable to noncontrolling interest in subsidiaries — 59 — (27 ) Net income attributable to Summit Holdings (1) 2,703   2,964   1,888   2,474   Net income attributable to Summit Inc. $ 71,289   $ 81,264   $ 53,069   $ 78,820   Income per share of Class A common stock: Basic $ 0.64 $ 0.74 $ 0.48 $ 0.73 Diluted $ 0.64 $ 0.73 $ 0.47 $ 0.72 Weighted average shares of Class A common stock: Basic 111,641,344 109,545,111 111,288,211 108,219,132 Diluted 111,940,067 110,824,468 112,472,724 108,848,680 ________________________________________________________ (1)   Represents portion of business owned by pre-IPO investors rather than by Summit.     SUMMIT MATERIALS, INC. AND SUBSIDIARIES Consolidated Balance Sheets

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

          September 29,     December 30,20182017(unaudited)(audited)Assets Current assets: Cash and cash equivalents $ 64,930 $ 383,556 Accounts receivable, net 301,670 198,330 Costs and estimated earnings in excess of billings 47,629 9,512 Inventories 229,761 184,439 Other current assets 15,690   7,764 Total current assets 659,680 783,601 Property, plant and equipment, less accumulated depreciation, depletion and amortization (September 29, 2018 - $748,265 and December 30, 2017 - $631,841) 1,751,810 1,615,424 Goodwill 1,147,588 1,036,320 Intangible assets, less accumulated amortization (September 29, 2018 - $7,819 and December 30, 2017 - $6,698) 18,892 16,833 Deferred tax assets, less valuation allowance (September 29, 2018 and December 30, 2017 - $1,675) 267,532 284,092 Other assets 50,832   51,063 Total assets $ 3,896,334   $ 3,787,333 Liabilities and Stockholders’ Equity Current liabilities: Current portion of debt $ 4,765 $ 4,765 Current portion of acquisition-related liabilities 14,148 14,087 Accounts payable 140,174 98,744 Accrued expenses 114,257 116,629 Billings in excess of costs and estimated earnings 13,072   15,750 Total current liabilities 286,416 249,975 Long-term debt 1,808,190 1,810,833 Acquisition-related liabilities 29,129 58,135 Tax receivable agreement liability 333,152 331,340 Other noncurrent liabilities 80,577   65,329 Total liabilities 2,537,464 2,515,612 Stockholders’ equity: Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 111,654,552 and 110,350,594 shares issued and outstanding as of September 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 September 29, 2018 and December 30, 2017, respectively — — Additional paid-in capital 1,188,707 1,154,220 Accumulated earnings 148,902 95,833 Accumulated other comprehensive income 6,134   7,386 Stockholders’ equity 1,344,860 1,258,543 Noncontrolling interest in Summit Holdings 14,010   13,178 Total stockholders’ equity 1,358,870   1,271,721 Total liabilities and stockholders’ equity $ 3,896,334   $ 3,787,333     SUMMIT MATERIALS, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows

($ in thousands)

          Nine months endedSeptember 29,     September 30,20182017 Cash flow from operating activities: Net income $ 54,957 $ 81,267 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, amortization and accretion 152,829 140,634 Share-based compensation expense 19,833 14,148 Net gain on asset disposals (27,261 ) (6,063 ) Non-cash loss on debt financings — 85 Change in deferred tax asset, net 12,577 (498,816 ) Other 873 (855 ) (Increase) decrease in operating assets, net of acquisitions and dispositions: Accounts receivable, net (90,481 ) (98,961 ) Inventories (26,027 ) (12,835 ) Costs and estimated earnings in excess of billings (37,643 ) (31,606 ) Other current assets (6,819 ) 6,026 Other assets (1,217 ) (3,141 ) Increase (decrease) in operating liabilities, net of acquisitions and dispositions: Accounts payable 24,978 38,357 Accrued expenses (2,197 ) 3,854 Billings in excess of costs and estimated earnings (3,850 ) 2,386 Tax receivable agreement liability 1,812 503,277 Other liabilities (1,807 ) (5,324 ) Net cash provided by operating activities 70,557   132,433   Cash flow from investing activities: Acquisitions, net of cash acquired (210,894 ) (371,479 ) Purchases of property, plant and equipment (183,752 ) (147,478 ) Proceeds from the sale of property, plant and equipment 18,426 13,290 Proceeds from sale of business 21,564 — Other 2,660   182   Net cash used for investing activities (351,996 ) (505,485 ) 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 ) (5,317 ) Payments on debt (79,027 ) (12,887 ) Payments on acquisition-related liabilities (35,321 ) (22,616 ) Distributions from partnership (69 ) (109 ) Proceeds from stock option exercises 15,615 18,810 Other (1,913 ) (846 ) Net cash (used in) provided by financing activities (36,765 ) 516,008   Impact of foreign currency on cash (422 ) 734 Net (decrease) increase in cash (318,626 ) 143,690   Cash and cash equivalents—beginning of period 383,556   143,392   Cash and cash equivalents—end of period $ 64,930   $ 287,082       SUMMIT MATERIALS, INC. AND SUBSIDIARIES Unaudited Revenue Data by Segment and Line of Business

($ in thousands)

      Three months ended     Nine months ended     Twelve Months EndedSeptember 29,   September 30,September 29,   September 30,September 29,   September 30,201820172018201720182017 Segment Net Revenue: West $ 329,346 $ 293,851 $ 791,975 $ 675,674 $ 1,016,293 $ 853,759 East 201,699 179,262 458,829 406,787 600,646 538,172 Cement 93,972   101,274   213,364   229,338   287,839   307,257   Net Revenue $ 625,017   $ 574,387   $ 1,464,168   $ 1,311,799   $ 1,904,778   $ 1,699,188     Line of Business - Net Revenue: Materials Aggregates $ 109,621 $ 90,594 $ 280,761 $ 236,437 $ 357,707 $ 299,829 Cement (1) 87,909 94,915 197,439 213,243 266,237 283,934 Products 315,292   280,047   751,396   638,619   967,289   819,865   Total Materials and Products 512,822   465,556   1,229,596   1,088,299   1,591,233   1,403,628   Services 112,195   108,831   234,572   223,500   313,545   295,560   Net Revenue $ 625,017   $ 574,387   $ 1,464,168   $ 1,311,799   $ 1,904,778   $ 1,699,188     Line of Business - Net Cost of Revenue: Materials Aggregates $ 33,793 $ 24,478 $ 109,747 $ 86,000 $ 132,476 $ 109,036 Cement 40,294 43,715 104,441 107,399 136,100 140,732 Products 244,410   206,911   593,862   479,274   758,598   613,169   Total Materials and Products 318,497   275,104   808,050   672,673   1,027,174   862,937   Services 83,662   74,647   176,742   159,596   226,960   207,792   Net Cost of Revenue $ 402,159   $ 349,751   $ 984,792   $ 832,269   $ 1,254,134   $ 1,070,729     Line of Business - Adjusted Cash Gross Profit (2): Materials Aggregates $ 75,828 $ 66,116 $ 171,014 $ 150,437 $ 225,231 $ 190,793 Cement (3) 47,615 51,200 92,998 105,844 130,137 143,202 Products 70,882   73,136   157,534   159,345   208,691   206,696   Total Materials and Products 194,325   190,452   421,546   415,626   564,059   540,691   Services 28,533   34,184   57,830   63,904   86,585   87,768   Adjusted Cash Gross Profit $ 222,858   $ 224,636   $ 479,376   $ 479,530   $ 650,644   $ 628,459     Adjusted Cash Gross Profit Margin (2) Materials Aggregates 69.2 % 73.0 % 60.9 % 63.6 % 63.0 % 63.6 % Cement (3) 50.7 % 50.6 % 43.6 % 46.2 % 45.2 % 46.6 % Products 22.5 % 26.1 % 21.0 % 25.0 % 21.6 % 25.2 % Services 25.4 % 31.4 % 24.7 % 28.6 % 27.6 % 29.7 % Total Adjusted Cash Gross Profit Margin 35.7 % 39.1 % 32.7 % 36.6 % 34.2 % 37.0 % ________________________________________________________ (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.     SUMMIT MATERIALS, INC. AND SUBSIDIARIES Unaudited Volume and Price Statistics

(Units in thousands)

      Three months ended     Nine months endedTotal VolumeSeptember 29,2018

    September 30,2017

September 29,2018

    September 30,2017

Aggregates (tons) 14,116 11,998 36,081 31,247 Cement (tons) 796 850 1,770 1,925 Ready-mix concrete (cubic yards) 1,519 1,320 4,164 3,463 Asphalt (tons) 2,212 2,124 4,173 4,004   Three months endedNine months endedPricingSeptember 29,2018

September 30,2017

September 29,2018

September 30,2017

Aggregates (per ton) $ 10.41 $ 10.23 $ 10.20 $ 10.04 Cement (per ton) 112.03 113.15 113.37 112.45 Ready-mix concrete (per cubic yards) 108.75 106.09 107.69 104.63 Asphalt (per ton) 56.34 54.37 55.35 54.55         Year over Year ComparisonVolumePricingVolumePricing Aggregates (per ton) 17.7 % 1.8 % 15.5 % 1.6 % Cement (per ton) (6.4 )% (1.0 )% (8.1 )% 0.8 % Ready-mix concrete (per cubic yards) 15.1 % 2.5 % 20.2 % 2.9 % Asphalt (per ton) 4.1 % 3.6 % 4.2 % 1.5 %         Year over Year Comparison (Excluding acquisitions)VolumePricingVolumePricing Aggregates (per ton) 3.9 % 1.5 % 0.6 % 2.3 % Cement (per ton) (6.4 )% (1.0 )% (8.1 )% 0.8 % Ready-mix concrete (per cubic yards) 3.2 % 2.3 % 2.0 % 3.0 % Asphalt (per ton) 3.2 % 3.6 % 0.4 % 1.2 %     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 September 29, 2018         Gross Revenue     Intercompany     NetVolumesPricingby ProductElimination/DeliveryRevenue Aggregates 14,116 $ 10.41 $ 146,913 $ (37,292 ) $ 109,621 Cement 796   112.03   89,224   (1,315 ) 87,909 Materials $ 236,137   $ (38,607 ) $ 197,530 Ready-mix concrete 1,519 108.75 165,204 (337 ) 164,867 Asphalt 2,212 56.34 124,622 48 124,670 Other Products 116,410   (90,655 ) 25,755 Products $ 406,236   $ (90,944 ) $ 315,292     Nine months ended September 29, 2018Gross RevenueIntercompanyNetVolumesPricingby ProductElimination/DeliveryRevenue Aggregates 36,081 $ 10.20 $ 368,005 $ (87,244 ) $ 280,761 Cement 1,770   113.37   200,704   (3,265 ) 197,439 Materials $ 568,709   $ (90,509 ) $ 478,200 Ready-mix concrete 4,164 107.69 448,442 (952 ) 447,490 Asphalt 4,173 55.35 230,962 (216 ) 230,746 Other Products 287,069   (213,909 ) 73,160 Products $ 966,473   $ (215,077 ) $ 751,396     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 and nine months ended September 29, 2018 and September 30, 2017.

Reconciliation of Net Income (Loss) to Adjusted EBITDA     Three months ended September 29, 2018by SegmentWest   East   Cement   Corporate   Consolidated ($ in thousands) Net income (loss) $ 61,021 $ 37,351 $ 35,326 $ (59,706 ) $ 73,992 Interest expense (income) 1,380 844 (1,709 ) 28,374 28,889 Income tax expense 567 275 — 19,923 20,765 Depreciation, depletion and amortization 23,144   19,154   10,622   574   53,494   EBITDA $ 86,112   $ 57,624   $ 44,239   $ (10,835 ) $ 177,140   Accretion 145 275 60 — 480 Gain on sale of business (12,108 ) — — — (12,108 ) Transaction costs 2 — — 1,258 1,260 Non-cash compensation — — — 5,643 5,643 Other (235 ) 406   —   (580 ) (409 ) Adjusted EBITDA $ 73,916   $ 58,305   $ 44,299   $ (4,514 ) $ 172,006   Adjusted EBITDA Margin (1) 22.4 % 28.9 % 47.1 % 27.5 %     Reconciliation of Net Income (Loss) to Adjusted EBITDAThree months ended September 30, 2017by SegmentWestEastCementCorporateConsolidated ($ in thousands) Net income (loss) $ 54,839 $ 37,617 $ 36,056 $ (44,225 ) $ 84,287 Interest expense (income) 1,839 889 (1,011 ) 27,204 28,921 Income tax expense (benefit) 889 — — (499,222 ) (498,333 ) Depreciation, depletion and amortization 18,697   17,416   11,751   619   48,483   EBITDA $ 76,264   $ 55,922   $ 46,796   $ (515,624 ) $ (336,642 ) Accretion 210 212 64 — 486 Tax receivable agreement expense — — — 501,752 501,752 Transaction costs 14 — — 2,567 2,581 Non-cash compensation — — — 4,724 4,724 Other 149   263   —   (612 ) (200 ) Adjusted EBITDA $ 76,637   $ 56,397   $ 46,860   $ (7,193 ) $ 172,701   Adjusted EBITDA Margin (1) 26.1 % 31.5 % 46.3 % 30.1 %     Reconciliation of Net Income (Loss) to Adjusted EBITDA     Nine months ended September 29, 2018by SegmentWest   East   Cement   Corporate   Consolidated ($ in thousands) Net income (loss) $ 97,625 $ 42,128 $ 61,687 $ (146,483 ) $ 54,957 Interest expense (income) 4,114 2,397 (4,794 ) 84,899 86,616 Income tax expense 616 5 — 15,628 16,249 Depreciation, depletion and amortization 67,597   54,272   25,651   1,919   149,439   EBITDA $ 169,952   $ 98,802   $ 82,544   $ (44,037 ) $ 307,261   Accretion 432 710 82 — 1,224 Loss on debt financings — — — 149 149 Gain on sale of business (12,108 ) — — — (12,108 ) Transaction costs (4 ) — — 3,821 3,817 Non-cash compensation — — — 19,833 19,833 Other (2) (6,956 ) 985   —   (1,345 ) (7,316 ) Adjusted EBITDA $ 151,316   $ 100,497   $ 82,626   $ (21,579 ) $ 312,860   Adjusted EBITDA Margin (1) 19.1 % 21.9 % 38.7 % 21.4 %     Reconciliation of Net Income (Loss) to Adjusted EBITDANine months ended September 30, 2017by SegmentWestEastCementCorporateConsolidated ($ in thousands) Net income (loss) $ 93,342 $ 46,124 $ 65,785 $ (123,984 ) $ 81,267 Interest expense (income) 5,586 2,503 (2,345 ) 74,132 79,876 Income tax expense (benefit) 1,424 (21 ) — (498,479 ) (497,076 ) Depreciation, depletion and amortization 51,389   49,343   29,702   1,940   132,374   EBITDA $ 151,741   $ 97,949   $ 93,142   $ (546,391 ) $ (203,559 ) Accretion 600 596 186 — 1,382 Loss on debt financings — — — 190 190 Tax receivable agreement expense — — — 503,277 503,277 Transaction costs 23 — — 6,451 6,474 Non-cash compensation — — — 14,148 14,148 Other 492   966   —   (1,804 ) (346 ) Adjusted EBITDA $ 152,856   $ 99,511   $ 93,328   $ (24,129 ) $ 321,566   Adjusted EBITDA Margin (1) 22.6 % 24.5 % 40.7 % 24.5 % _______________________________________________________ (1)   Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue. (2) In the nine months ended September 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.     The table below reconciles our net income per share attributable to Summit Materials, Inc. to adjusted diluted net income per share for the three and nine months ended September 29, 2018 and September 30, 2017. 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 income per share.

    Three months ended     Nine months endedSeptember 29, 2018   September 30, 2017September 29, 2018   September 30, 2017Reconciliation of Net Income Per Share to Adjusted Diluted EPSNet Income   Per EquityUnit

Net Income   Per EquityUnit

Net Income   Per EquityUnit

Net Income   Per EquityUnit

Net income attributable to Summit Materials, Inc. $ 71,289 $ 0.62 $ 81,264 $ 0.71 $ 53,069 $ 0.46 $ 78,820 $ 0.70 Adjustments: Net income attributable to noncontrolling interest 2,703 0.03 2,964 0.03 1,888 0.02 2,474 0.02 Adjustment to acquisition deferred liability — — — — (6,947 ) (0.06 ) — — Gain on sale of business (12,108 ) (0.11 ) — — (12,108 ) (0.11 ) — — Loss on debt financings —   —   —   —   149   —   190   —   Adjusted diluted net income before tax related adjustments 61,884   0.54   84,228   0.74   36,051   0.31   81,484   0.72   Tax receivable agreement expense — — 501,752 4.42 — — 503,277 4.46 Valuation allowance release —   —   (531,952 ) (4.68 ) —   —   (531,952 ) (4.71 ) Adjusted diluted net income $ 61,884   $ 0.54   $ 54,028   $ 0.48   $ 36,051   $ 0.31   $ 52,809   $ 0.47   Weighted-average shares: Basic Class A common stock 111,641,344 109,545,111 111,288,211 108,219,132 LP Units outstanding 3,448,343   4,039,020   3,538,385   4,560,976   Total equity units 115,089,687   113,584,131   114,826,596   112,780,108       The following table reconciles operating income to Adjusted Cash Gross Profit and Adjusted Cash Gross Profit Margin for the three and nine months ended September 29, 2018 and September 30, 2017.

    Three months ended     Nine months endedSeptember 29,     September 30,September 29,     September 30,Reconciliation of Operating Income to Adjusted Cash Gross Profit2018201720182017 ($ in thousands) Operating income $ 108,167 $ 113,911 $ 133,921 $ 163,571 General and administrative expenses 59,457 59,175 190,975 175,729 Depreciation, depletion, amortization and accretion 53,974 48,969 150,663 133,756 Transaction costs 1,260   2,581   3,817   6,474   Adjusted Cash Gross Profit (exclusive of items shown separately) $ 222,858   $ 224,636   $ 479,376   $ 479,530   Adjusted Cash Gross Profit Margin (exclusive of items shown separately) (1) 35.7 % 39.1 % 32.7 % 36.6 % _______________________________________________________ (1)   Adjusted Cash Gross Profit Margin is defined as Adjusted Cash Gross Profit as a percentage of net revenue.     The following table reconciles net cash provided by operating activities to free cash flow for the three and nine months ended September 29, 2018 and September 30, 2017.

    Three months ended     Nine months endedSeptember 29,     September 30,September 29,     September 30, ($ in thousands) 2018201720182017 Net income $ 73,992 $ 84,287 $ 54,957 $ 81,267 Non-cash items 60,379   (448,206 ) 158,851   (350,867 ) Net income adjusted for non-cash items 134,371 (363,919 ) 213,808 (269,600 ) Change in working capital accounts (30,096 ) 485,203   (143,251 ) 402,033   Net cash provided by operating activities 104,275 121,284 70,557 132,433 Capital expenditures, net of asset sales (47,779 ) (33,511 ) (165,326 ) (134,188 ) Free cash flow $ 56,496   $ 87,773   $ (94,769 ) $ (1,755 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20181106005247/en/

Summit Materials, Inc.Mr. Brian HarrisExecutive Vice President and Chief Financial Officerbrian.harris@summit-materials.com

Source: Summit Materials, Inc.

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10/26/2018

Summit Materials Announces Third Quarter 2018 Results Conference Call Date

DENVER--(BUSINESS WIRE)-- Summit Materials, Inc. (NYSE: SUM, “Summit” or the “Company”), a leading vertically integrated construction materials company, today announced that it will release third quarter 2018 financial results before the market opens on Tuesday, November 6, 2018. A conference call will be held that same day at 11:00 a.m. eastern time (9:00 a.m. mountain time) to review Summit’s financial results, discuss recent events and conduct a question-and-answer session.

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 December 6, 2018:

Domestic Replay:         1-844-512-2921 International Replay:

1-412-317-6671 Conference ID: 13684335   About Summit Materials, Inc.

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 non-residential 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.

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 expectations for our anticipated benefits from recent acquisitions, 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 Annual Report on Form 10-K for the fiscal year ended December 30, 2017 and any factors discussed in the section entitled “Risk Factors” in our quarterly reports on Form 10-Q or other SEC filings. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20181026005501/en/

Summit Materials, Inc.Mr. Brian HarrisExecutive Vice President and Chief Financial Officerbrian.harris@summit-materials.com

Source: Summit Materials, Inc.Summit Materials

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