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Summit: Behind the Numbers


RR103119 SummitLogoOct. 31, 2019 – Summit Materials reported third-quarter numbers, and aggregates net revenues increased by 25.5% to $137.5 million in the third quarter 2019, when compared to the prior-year period. Organic aggregates sales volumes increased 11.4% in the third quarter 2019, when compared to the prior-year period on higher organic volume growth in both the East and West segments. Operating income across product lines in those segments were discussed in the report.

East Segment: The East Segment reported operating income of $55.5 million in the third quarter 2019, compared to $38.0 million in the prior-year period. Adjusted EBITDA increased to $76.8 million in the third quarter 2019, compared to $58.3 million in the prior-year period. Aggregates revenue increased 28.5% due to increases resulting from a 18.7% and 8.3% increase in organic volumes and average sales prices, respectively, driven by growth in Missouri and Kansas. Ready-mixed concrete revenue increased 8.1% due to an increase in organic volumes. Asphalt revenue increased 20.2% as a result of a 9.3% increase in organic volumes and a 6.2% increase in organic average sales prices.

West Segment: The West Segment reported operating income of $58.5 million in the third quarter 2019, compared to $48.2 million in the prior-year period. Adjusted EBITDA increased to $81.9 million in the third quarter 2019, compared to $73.9 million in the prior-year period. Improvements in operating income and Adjusted EBITDA are due in part to the realization of higher operational efficiencies under improved weather conditions. Aggregates revenue in the third quarter increased 10.6% over the prior-year period from a combination of acquisition performance and organic growth, including a 3.5% increase in organic volumes and a 4.1% increase in organic average sales prices, particularly in Texas. Ready-mixed concrete revenue in the third quarter 2019 increased 3.6% over the prior-year period, as a 1.0% decrease in organic volumes, was offset by a 3.7% increase in organic average sales prices. Asphalt revenue increased by 11.3% in the third quarter 2019 over the prior-year period, as our liquid asphalt terminal which had been damaged in Hurricane Harvey was operating in 2019, but not in the comparable period in 2018.