Summit Aggregates Segment Hangs Tough

Oct. 28, 2020 – Summit Materials reported that net revenue increased $38.5 million to $1,562.9 million in the nine months ended Sept. 26, primarily resulting from organic growth in aggregates and ready-mix concrete. Aggregates sales volumes increased 3.1% in the third quarter 2020 when compared to the prior-year period on higher volumes in Texas, partially offset by lower volumes in Missouri, Kentucky and British Columbia. Average selling prices for aggregates decreased 2.2% in the third quarter 2020. On a mix-adjusted basis, Summit estimates that aggregates prices have increased by approximately 2.1% year-to-date in 2020. Anne Noonan, new CEO of Summit Materials, commented, “Our West segment performance was the highlight of the quarter, delivering 16.5% growth in Adjusted EBITDA in Q3, as migration trends favor certain U.S. central and western suburban and exurban markets that we serve. Company-wide, our adjusted cash gross profit margin has held steady. We are focused on consistent organic growth with investment in greenfields and Summit end markets that are underpinned by strong growth fundamentals. Sustainable organic growth serves as a foundation to support strategic acquisitions, such as Multisources of Texas, and Valley Gravel of British Columbia, which we completed in the third quarter while keeping our leverage ratio steady at 3.5x. Most importantly, we continue to vigilantly practice safety and distancing protocols in response to the COVID-19 outbreak.”