Summit Materials Inc. announced results for the second quarter 2017. For the three months ended July 1, 2017, the company reported basic earnings per share of $0.47 on net income of $50.0 million, compared to basic earnings per share of $0.21 on net income of $13.4 million in the prior year period. Operating income increased by 75. percent to $82.4 million in the second quarter 2017, versus $46.9 million in the prior year period.
“We delivered exceptional growth in net revenue, operating income and net income during the second quarter, driven by a combination of strong seasonal demand across all lines of business, together with contributions from recently completed acquisitions,” said Tom Hill, CEO of Summit Materials. “Adjusted EBITDA increased 17.9 percent year-over-year to $135.2 million, supported by favorable market conditions in our West region and in our Cement segment. Organic growth contributed one-third of the year-over-year improvement in Adjusted EBITDA, as supported by ongoing price, volume and cost optimization initiatives at each of our operating companies.
“Organic sales volumes within our materials lines of business have exceeded our expectations coming into the year,” continued Hill. “Organic cement and aggregates sales volumes increased 7.1 percent and 6.1 percent, respectively, in the second quarter 2017, when compared to the prior year period. Cement sales volumes in our northern Mississippi River markets increased nearly 25 percent year-over-year, while aggregates demand in Texas and Utah benefited from a combination of favorable demographic trends and recent state-level funding initiatives that support multi-year investments in transportation infrastructure.”
“Organic cement pricing increased 3.0 percent year-over-year, in-line with expectations, while organic aggregates pricing declined on a year-over-year basis due to a less favorable sales mix in our Vancouver and Austin markets, given increased sales of lower priced products. Outside of Austin and Vancouver, organic aggregates pricing increased on a year-over-year basis in nearly all of our other platform markets,” stated Hill.
Aggregates net revenues increased by 15.3 percent to $84.2 million in the second quarter 2017, when compared to the prior year period. Aggregates adjusted cash gross profit margin increased to 68.3 percent in the second quarter 2017, versus 63.3 percent in the prior year period.
Organic aggregates sales volumes increased 6.1 percent in the second quarter 2017, due mainly to increased demand in Texas, Utah, Virginia and Vancouver. Organic aggregates average selling prices declined 1.7 percent in the second quarter, due in part to an unfavorable sales mix in the Vancouver and Austin markets. Excluding the Vancouver and Austin markets, organic aggregates average selling prices increased 3.5 percent on a year-over-year basis.