Summit Materials, Inc. Reports Fourth Quarter and Full Year 2021 Results

Record Full Year 2021 Net Revenue of $2.2 billion, an increase of 4.6%

Record Full Year 2021 Net income attributable to Summit Inc. of $152.2 million, an increase of 10.3%

Record Full Year 2021 Adjusted EBITDA of $520.1 million, an increase of 7.8%

Net Leverage ratio improved to an all-time low

Summit Materials, Inc. (NYSE: SUM) (“Summit,” “Summit Materials,” "Summit Inc." or the “Company”), a leading vertically integrated construction materials company, today announced results for the fourth quarter and full year ended January 1, 2022 (“fourth quarter” or "full year"). All comparisons are versus the quarter or year ended January 2, 2021 unless noted otherwise.

 

 

Three months ended

 

Year ended

($ in thousands)

 

January 1,

2022

 

January 2,

2021

 

% Chg vs. PY

 

January 1,

2022

 

January 2,

2021

 

% Chg vs. PY

Net revenue

 

$

553,426

 

$

571,862

 

(3.2

) %

 

$

2,232,696

 

$

2,134,754

 

4.6

%

Operating income

 

 

57,184

 

 

66,216

 

(13.6

) %

 

 

253,065

 

 

225,173

 

12.4

%

Net income

 

 

44,390

 

 

36,310

 

22.3

%

 

 

154,281

 

 

141,240

 

9.2

%

Basic EPS

 

$

0.37

 

$

0.31

 

19.4

%

 

$

1.29

 

$

1.21

 

6.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Cash Gross Profit

 

 

161,604

 

 

172,442

 

(6.3

) %

 

 

673,259

 

 

621,797

 

8.3

%

Adjusted EBITDA

 

 

124,272

 

 

129,413

 

(4.0

) %

 

 

520,082

 

 

482,289

 

7.8

%

"Our fourth quarter and full year 2021 results are evidence that our Elevate Summit strategy is driving improved execution and financial performance," said Summit Materials CEO Anne Noonan. "Today we are setting new annual records for Net Revenue, Net Income, Adjusted Cash Gross Profit and Adjusted EBITDA. With these results, we are either on track or have already achieved our Horizon One targets. That momentum continues into 2022 as we continue to optimize our portfolio, pursue self-help initiatives to improve performance, and drive market leadership to #1 or #2 positions in targeted exurban, higher growth communities underpinned by strong demand fundamentals."

Brian Harris, CFO of Summit Materials added, "We continue to advance each of our strategic priorities, including our market leadership and asset light model with eight strategic divestitures already closed and more in progress. These divestitures, together with continued organic growth and a stronger balance sheet as evidenced by a Summit-best net leverage ratio, provides us the financial flexibility to support further greenfield investments and pursue attractive opportunities to further optimize our portfolio."

During 2021, Summit received $128.3 million in proceeds from a total of eight divestitures as part of its Elevate Summit strategy.

2022 Guidance

For the full year 2022, Summit is currently projecting Adjusted EBITDA of approximately $535 million to $565 million and expects 2022 capital expenditure of approximately $270 million to $290 million including greenfield projects.

Full Year 2021 | Total Company Results

Net Revenue increased $97.9 million, or 4.6% in 2021 to $2.2 billion, despite one fewer reporting week in 2021 and reflects revenue growth in aggregates, cement, and ready-mix underpinned by strong demand conditions in most markets.

Operating income increased $27.9 million, or 12.4% in 2021 to $253.1 million, primarily due to higher revenue that more than offset higher cost of revenue and general and administrative expenses primarily associated with optimizing organizational efficiencies and implementing the Elevate Summit strategy. Summit's operating margin percentage for 2021 increased to 11.3% from 10.5% in 2020, due to the factors noted above.

Net income attributable to Summit Inc. increased to $152.2 million, or $1.29 per basic share, compared to $138.0 million, or $1.21 per basic share in the comparable prior year period. Summit reported adjusted diluted net income of $133.5 million, or $1.12 per adjusted diluted share as compared to $95.3 million, or $0.81 per adjusted diluted share in the prior year period.

Adjusted EBITDA increased $37.8 million, or 7.8% to $520.1 million reflecting strong operating results.

Fourth Quarter 2021 | Total Company Results

Net Revenue decreased $18.4 million, or 3.2% in the fourth quarter to $553.4 million.

Operating income decreased $9.0 million, or 13.6% in the fourth quarter to $57.2 million, as our costs of revenue increased. This was partially offset by lower depreciation, depletion, amortization and accretion expenses. Summit's operating margin percentage for the three months ended January 1, 2022 decreased to 10.3% from 11.6%, from the comparable period a year ago.

Net income attributable to Summit Inc. increased to $43.8 million, or $0.37 per basic share, compared to $35.2 million, or $0.31 per basic share in the comparable prior year period. Summit reported adjusted diluted net income of $32.9 million, or $0.27 per adjusted diluted share as compared to $28.8 million, or $0.25 per adjusted diluted share in the prior year period.

Adjusted EBITDA decreased $5.1 million, or 4.0% to $124.3 million.

Full Year 2021 | Results by Line of Business

Aggregates Business: Aggregates net revenues increased by $75.2 million to $573.2 million in 2021. Aggregates adjusted cash gross profit margin increased to 51.7% in 2021 as compared to 51.4% in 2020. Aggregates sales volume increased 8.6% in 2021 with organic growth in both the East and West segments. By market, volume growth in the Intermountain West, Virginia, Carolinas, Georgia, and British Columbia were partially offset by lower volumes in Kentucky. Average selling prices for aggregates increased 3.6% in 2021 with strong growth across both the East and West segments.

Cement Business: Cement segment net revenues increased 10.2% to $298.2 million in 2021. Cement segment adjusted cash gross profit margin increased to 39.9% in 2021, compared to 39.6% in 2020. The Green America Recycling facility is operational and continues to ramp up production after completing repair and commissioning activities late in the third quarter 2021 after its prolonged shutdown due to an explosion in April 2020. Sales volume of cement increased 6.3% and average selling prices increased 2.9% in 2021.

Products Business: Products net revenues of $1.1 billion in 2021 were relatively unchanged versus 2020. Products adjusted cash gross profit margin decreased to 18.3% in 2021, down from 19.2% in 2020. Ready-mix concrete average selling prices increased 3.4% and sales volumes increased 1.6% primarily reflecting a strong demand environment in the Intermountain West market that more than offset wet conditions in Texas. Average selling prices for asphalt increased 2.2%, with pricing growth across both reporting segments. Asphalt volume decreased 13.2% due to the divestiture of a paving business in 2021.

Fourth Quarter 2021 | Results by Line of Business

Aggregates Business: Aggregates net revenues increased by $6.5 million to $142.0 million in the fourth quarter. Aggregates adjusted cash gross profit margin decreased to 45.7% in the fourth quarter as compared to 49.9% in the fourth quarter 2020. Aggregates sales volume decreased 5.5% in the fourth quarter, due to the negative impact from comparisons to a 53rd week in 2020. Excluding this impact, volume growth was primarily driven by the East Segment, led by growth in Virginia and Missouri. Average selling prices for aggregates increased 8.6% in the fourth quarter with strong growth across both reporting segments.

Cement Business: Cement segment net revenues increased 9.8% to $79.2 million in the fourth quarter. Cement segment adjusted cash gross profit margin decreased to 42.7% in the fourth quarter, compared to 47.4% in the prior year period. Sales volume of cement increased 5.8% and average selling prices increased 2.7% in the fourth quarter.

Products Business: Products net revenues were $263.2 million in the fourth quarter, compared to $286.0 million in the prior year period. Products adjusted cash gross profit margin decreased to 18.3% in the fourth quarter, versus 19.6% in the prior year period. Average sales price for ready-mix concrete increased 3.5% driven primarily by pricing growth in the Intermountain West market. Sales volumes of ready-mix concrete decreased 4.8%, despite strong demand and favorable weather conditions, particularly in Houston. Average selling prices for asphalt increased 4.2%, driven by strong pricing growth across the East Segment markets that was partially offset by lower pricing in North Texas and Salt Lake City. Asphalt volume decreased 25.7% due largely to a paving business divestiture earlier in the year.

Full Year 2021 | Results By Reporting Segment

West Segment: The West Segment operating income decreased 3.0% to $171.2 million and Adjusted EBITDA increased 0.2% to $271.6 million in 2021. Aggregates revenue in 2021 increased 16.9% as volumes and average sales prices increased 13.8% and 2.7%, respectively. Ready-mix concrete revenue in 2021 increased 9.0% with volume growth of 5.4% and average sales prices growth of 3.5% on favorable demand and weather conditions in Salt Lake City. Asphalt revenue decreased by 25.8% as volumes decreased 24.4% due to a divestiture in the second quarter 2021 that was only partially offset by 2.5% growth in average selling prices in 2021.

East Segment: The East Segment operating income increased 29.5% to $90.4 million and Adjusted EBITDA increased 11.8% to $181.5 million in 2021. Aggregates revenue increased 9.1%, on volume growth of 3.8% and 5.1% growth in average selling prices with higher pricing across all markets. Ready-mix concrete revenue decreased 6.4% as volumes decreased by 9.2%, partially offset by average selling price growth of 3.1%. Lower ready-mix concrete volumes were primarily due to Kansas wind farm projects in the 2020 period that were not fully replaced in 2021. Asphalt revenue increased 27.7% as volumes increased 17.0% on volume growth in Kentucky, Kansas, and Virginia. Asphalt average selling prices increased 4.4% on higher liquid asphalt index prices across several markets.

Cement Segment: The Cement Segment operating income increased 19.5% to $66.1 million. Adjusted EBITDA increased 26.0% to $117.2 million in 2021 on volume and pricing growth. The segment reported growth in sales volumes and average selling prices of 6.3% and 2.9%, respectively in 2021.

Fourth Quarter 2021 | Results By Reporting Segment

West Segment: The West Segment operating income decreased 24.9% to $35.5 million and Adjusted EBITDA decreased 19.3% to $59.8 million in the fourth quarter. Lower operating income and Adjusted EBITDA were primarily due to the impact from a divestiture. Aggregates revenue in the fourth quarter decreased 4.9% as volumes declined 10.2% more than offsetting average sales price growth of 5.8%. Ready-mix concrete revenue in the fourth quarter decreased 0.3% with volumes down 4.3%, which was mostly offset by 4.2% pricing growth. Asphalt revenue decreased 39.1% in the fourth quarter as volumes decreased 37.0%, due to a divestiture in the second quarter. Asphalt sales prices increased 3.3% in the period.

East Segment: The East Segment operating income increased 1.8% to $21.2 million and Adjusted EBITDA increased 2.3% to $43.4 million in the fourth quarter. Despite unfavorable comparisons with an extra week in 2020, operating income and Adjusted EBITDA growth reflects strong pricing gains across all lines of business. Aggregates revenue increased 9.7%, as volumes decreased 0.4% and average selling prices increased 10.1%. Ready-mix concrete revenue decreased 4.7% as volumes decreased by 6.2%, partially offset by average selling price growth of 1.7%. Asphalt revenue increased 15.1% as volumes increased 1.1% on strong volume growth in Kentucky that more than offset volume declines elsewhere. Asphalt average selling prices increased 9.4% on higher liquid asphalt index prices across our markets.

Cement Segment: The Cement Segment operating income decreased 1.9% to $20.4 million in the fourth quarter. Adjusted EBITDA increased 17.1% to $34.9 million on higher volumes and pricing growth. In fourth quarter, the Cement Segment reported volume growth of 5.8% and average selling price growth of 2.7%.

Liquidity and Capital Resources

As of January 1, 2022, the Company had $381.0 million in cash and $1.6 billion in debt outstanding. The Company's $345 million revolving credit facility has $327.1 million available after outstanding letters of credit. For the year ended January 1, 2022, cash flow provided by operations was $361.9 million and cash paid for capital expenditures was $212.0 million.

On September 27, 2021, Summit redeemed all $300.0 million of the 5.125% senior notes due June 1, 2025 using existing cash on hand. As a result of the redemption, charges of $6.0 million were recognized in the quarter ended October 2, 2021, which included charges of $3.9 million for the applicable redemption premium and $2.1 million for the write-off of the deferred financing fees.

Webcast and Conference Call Information

Summit Materials will conduct a conference call on Thursday, February 24, 2022, at 11:00 a.m. eastern time (9:00 a.m. mountain time) to review the Company’s fourth quarter and full year 2021 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 for fourth quarter and full year 2021 financial results:

Domestic Live: 1-877-823-8690

International Live: 1-825-312-2236

Conference ID: 1944867

Password: Summit

To listen to a replay of the teleconference, which will be available through March 3, 2022:

Domestic Replay: 1-800-585-8367

International Replay: 1-416-621-4642

Conference ID: 1944867

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 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 Net Income, 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 Net Income, 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 Net Income, 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 January 2, 2021, as filed with the SEC, and any factors discussed in the section entitled “Risk Factors” in any of our subsequently filed SEC filings.

  • the impact of the COVID-19 pandemic, and responses to it, including vaccine mandates, or any similar crisis, on our business;
  • 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;
  • our reliance on private investment in infrastructure, which may be adversely affected by periods of economic stagnation and recession;
  • environmental, health, safety and climate change laws or governmental requirements or policies concerning zoning and land use;
  • costs associated with pending and future litigation;
  • rising prices for, or more limited availability of, commodities, labor and other production and delivery inputs as a result of inflation, supply chain challenges 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;
  • unexpected factors affecting self-insurance claims and reserve estimates;
  • our substantial current level of indebtedness, including our exposure to variable interest rate risk;
  • our dependence on senior management and other key personnel, and our ability to retain and attract qualified personnel;
  • supply constraints or significant price fluctuations in the electricity and 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; including cybersecurity and data leakage risks; and
  • potential labor disputes, strikes, other forms of work stoppage or other union activities.

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

 

Year ended

 

 

January 1,

 

January 2,

 

January 1,

 

January 2,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

(unaudited)

 

(unaudited)

 

(audited)

 

(audited)

Revenue:

 

 

 

 

 

 

 

 

Product

 

$

479,313

 

 

$

490,208

 

 

$

1,923,285

 

 

$

1,824,679

 

Service

 

 

74,113

 

 

 

81,654

 

 

 

309,411

 

 

 

310,075

 

Net revenue

 

 

553,426

 

 

 

571,862

 

 

 

2,232,696

 

 

 

2,134,754

 

Delivery and subcontract revenue

 

 

43,242

 

 

 

52,771

 

 

 

176,973

 

 

 

197,697

 

Total revenue

 

 

596,668

 

 

 

624,633

 

 

 

2,409,669

 

 

 

2,332,451

 

Cost of revenue (excluding items shown separately below):

 

 

 

 

 

 

 

 

Product

 

 

334,371

 

 

 

331,465

 

 

 

1,314,416

 

 

 

1,254,849

 

Service

 

 

57,451

 

 

 

67,955

 

 

 

245,021

 

 

 

258,108

 

Net cost of revenue

 

 

391,822

 

 

 

399,420

 

 

 

1,559,437

 

 

 

1,512,957

 

Delivery and subcontract cost

 

 

43,242

 

 

 

52,771

 

 

 

176,973

 

 

 

197,697

 

Total cost of revenue

 

 

435,064

 

 

 

452,191

 

 

 

1,736,410

 

 

 

1,710,654

 

General and administrative expenses

 

 

50,274

 

 

 

50,488

 

 

 

196,728

 

 

 

182,873

 

Depreciation, depletion, amortization and accretion

 

 

55,715

 

 

 

57,560

 

 

 

229,366

 

 

 

221,320

 

Gain on sale of property, plant and equipment

 

 

(1,569

)

 

 

(1,822

)

 

 

(5,900

)

 

 

(7,569

)

Operating income

 

 

57,184

 

 

 

66,216

 

 

 

253,065

 

 

 

225,173

 

Interest expense

 

 

19,704

 

 

 

25,546

 

 

 

92,240

 

 

 

103,595

 

Loss on debt financings

 

 

 

 

 

 

 

 

6,016

 

 

 

4,064

 

Tax receivable agreement benefit

 

 

(6,779

)

 

 

(7,559

)

 

 

(6,779

)

 

 

(7,559

)

Gain on sale of businesses

 

 

(4,692

)

 

 

 

 

 

(20,011

)

 

 

 

Other income, net

 

 

(6,317

)

 

 

(1,229

)

 

 

(17,038

)

 

 

(3,982

)

Income from operations before taxes

 

 

55,268

 

 

 

49,458

 

 

 

198,637

 

 

 

129,055

 

Income tax expense (benefit)

 

 

10,878

 

 

 

13,148

 

 

 

44,356

 

 

 

(12,185

)

Net income

 

 

44,390

 

 

 

36,310

 

 

 

154,281

 

 

 

141,240

 

Net income attributable to Summit Holdings (1)

 

 

552

 

 

 

1,158

 

 

 

2,097

 

 

 

3,273

 

Net income attributable to Summit Inc.

 

$

43,838

 

 

$

35,152

 

 

$

152,184

 

 

$

137,967

 

Earnings per share of Class A common stock:

 

 

 

 

 

 

 

 

Basic

 

$

0.37

 

 

$

0.31

 

 

$

1.29

 

 

$

1.21

 

Diluted

 

$

0.37

 

 

$

0.31

 

 

$

1.28

 

 

$

1.20

 

Weighted average shares of Class A common stock:

 

 

 

 

 

 

 

 

Basic

 

 

118,825,027

 

 

 

114,613,695

 

 

 

117,650,080

 

 

 

114,227,192

 

Diluted

 

 

119,713,597

 

 

 

115,146,597

 

 

 

118,741,932

 

 

 

114,631,768

 

 

(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)

 

 

 

 

 

 

 

January 1,

 

January 2,

 

 

2022

 

2021

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

380,961

 

$

418,181

Accounts receivable, net

 

 

287,226

 

 

254,696

Costs and estimated earnings in excess of billings

 

 

7,600

 

 

8,666

Inventories

 

 

180,760

 

 

200,308

Other current assets

 

 

13,063

 

 

11,428

Total current assets

 

 

869,610

 

 

893,279

Property, plant and equipment

 

 

1,842,908

 

 

1,850,169

Goodwill

 

 

1,163,750

 

 

1,201,291

Intangible assets

 

 

69,396

 

 

47,852

Deferred tax assets

 

 

204,566

 

 

231,877

Operating lease right-of-use assets

 

 

30,150

 

 

28,543

Other assets

 

 

58,745

 

 

55,000

Total assets

 

$

4,239,125

 

$

4,308,011

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Current portion of debt

 

$

6,354

 

$

6,354

Current portion of acquisition-related liabilities

 

 

13,110

 

 

10,265

Accounts payable

 

 

128,232

 

 

120,813

Accrued expenses

 

 

147,476

 

 

160,570

Current operating lease liabilities

 

 

6,497

 

 

8,188

Billings in excess of costs and estimated earnings

 

 

7,401

 

 

16,499

Total current liabilities

 

 

309,070

 

 

322,689

Long-term debt

 

 

1,591,019

 

 

1,892,347

Acquisition-related liabilities

 

 

33,369

 

 

12,246

Tax receivable agreement liability

 

 

326,548

 

 

321,680

Noncurrent operating lease liabilities

 

 

28,880

 

 

21,500

Other noncurrent liabilities

 

 

127,027

 

 

121,281

Total liabilities

 

 

2,415,913

 

 

2,691,743

Stockholders’ equity:

 

 

 

 

Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 118,705,108 and 114,390,595 shares issued and outstanding as of January 1, 2022 and January 2, 2021, respectively

 

 

1,188

 

 

1,145

Class B common stock, par value $0.01 per share; 250,000,000 shares authorized, 99 shares issued and outstanding as of January 1, 2022 and January 2, 2021

 

 

 

 

Additional paid-in capital

 

 

1,326,340

 

 

1,264,681

Accumulated earnings

 

 

478,956

 

 

326,772

Accumulated other comprehensive income

 

 

7,083

 

 

5,203

Stockholders’ equity

 

 

1,813,567

 

 

1,597,801

Noncontrolling interest in Summit Holdings

 

 

9,645

 

 

18,467

Total stockholders’ equity

 

 

1,823,212

 

 

1,616,268

Total liabilities and stockholders’ equity

 

$

4,239,125

 

$

4,308,011

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

($ in thousands)

 

 

 

Year ended

 

 

January 1,

 

January 2,

 

 

2022

 

2021

Cash flow from operating activities:

 

 

 

 

Net income

 

$

154,281

 

 

$

141,240

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation, depletion, amortization and accretion

 

 

235,278

 

 

 

227,817

 

Share-based compensation expense

 

 

19,705

 

 

 

28,857

 

Net gain on asset and business disposals

 

 

(25,559

)

 

 

(7,548

)

Non-cash loss on debt financings

 

 

2,116

 

 

 

4,064

 

Change in deferred tax asset, net

 

 

24,685

 

 

 

(18,384

)

Other

 

 

(2,249

)

 

 

619

 

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

 

 

 

 

Accounts receivable, net

 

 

(31,292

)

 

 

5,467

 

Inventories

 

 

3,815

 

 

 

3,339

 

Costs and estimated earnings in excess of billings

 

 

(394

)

 

 

4,535

 

Other current assets

 

 

(2,483

)

 

 

472

 

Other assets

 

 

7,748

 

 

 

10,264

 

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

 

 

 

 

Accounts payable

 

 

4,593

 

 

 

(4,231

)

Accrued expenses

 

 

(7,030

)

 

 

15,476

 

Billings in excess of costs and estimated earnings

 

 

(7,138

)

 

 

2,616

 

Tax receivable agreement liability

 

 

4,868

 

 

 

(5,285

)

Other liabilities

 

 

(19,015

)

 

 

(449

)

Net cash provided by operating activities

 

 

361,929

 

 

 

408,869

 

Cash flow from investing activities:

 

 

 

 

Acquisitions, net of cash acquired

 

 

(19,513

)

 

 

(123,477

)

Purchases of property, plant and equipment

 

 

(211,982

)

 

 

(177,249

)

Proceeds from the sale of property, plant and equipment

 

 

11,674

 

 

 

14,018

 

Proceeds from sale of businesses

 

 

128,337

 

 

 

 

Other

 

 

236

 

 

 

1,121

 

Net cash used in investing activities

 

 

(91,248

)

 

 

(285,587

)

Cash flow from financing activities:

 

 

 

 

Proceeds from debt issuances

 

 

 

 

 

700,000

 

Debt issuance costs

 

 

 

 

 

(9,605

)

Payments on debt

 

 

(329,010

)

 

 

(674,045

)

Payments on acquisition-related liabilities

 

 

(10,360

)

 

 

(33,257

)

Proceeds from stock option exercises

 

 

32,451

 

 

 

1,043

 

Other

 

 

(1,008

)

 

 

(907

)

Net cash used in financing activities

 

 

(307,927

)

 

 

(16,771

)

Impact of foreign currency on cash

 

 

26

 

 

 

351

 

Net (decrease) increase in cash

 

 

(37,220

)

 

 

106,862

 

Cash and cash equivalents—beginning of period

 

 

418,181

 

 

 

311,319

 

Cash and cash equivalents—end of period

 

$

380,961

 

 

$

418,181

 

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Revenue Data by Segment and Line of Business

($ in thousands)

 

 

 

Three months ended

 

Year ended

 

 

January 1,

 

January 2,

 

January 1,

 

January 2,

 

 

2022

 

2021

 

2022

 

2021

Segment Net Revenue:

 

 

 

 

 

 

 

 

West

 

$

282,530

 

 

$

312,895

 

 

$

1,169,466

 

 

$

1,147,921

 

East

 

 

191,653

 

 

 

186,806

 

 

 

764,996

 

 

 

716,211

 

Cement

 

 

79,243

 

 

 

72,161

 

 

 

298,234

 

 

 

270,622

 

Net Revenue

 

$

553,426

 

 

$

571,862

 

 

$

2,232,696

 

 

$

2,134,754

 

 

 

 

 

 

 

 

 

 

Line of Business - Net Revenue:

 

 

 

 

 

 

 

 

Materials

 

 

 

 

 

 

 

 

Aggregates

 

$

141,956

 

 

$

135,461

 

 

$

573,157

 

 

$

498,007

 

Cement (1)

 

 

74,128

 

 

 

68,775

 

 

 

282,081

 

 

 

257,629

 

Products

 

 

263,229

 

 

 

285,972

 

 

 

1,068,047

 

 

 

1,069,043

 

Total Materials and Products

 

 

479,313

 

 

 

490,208

 

 

 

1,923,285

 

 

 

1,824,679

 

Services

 

 

74,113

 

 

 

81,654

 

 

 

309,411

 

 

 

310,075

 

Net Revenue

 

$

553,426

 

 

$

571,862

 

 

$

2,232,696

 

 

$

2,134,754

 

 

 

 

 

 

 

 

 

 

Line of Business - Net Cost of Revenue:

 

 

 

 

 

 

 

 

Materials

 

 

 

 

 

 

 

 

Aggregates

 

$

77,103

 

 

$

67,913

 

 

$

276,756

 

 

$

242,082

 

Cement

 

 

40,308

 

 

 

34,535

 

 

 

163,108

 

 

 

150,533

 

Products

 

 

215,127

 

 

 

230,050

 

 

 

872,132

 

 

 

864,041

 

Total Materials and Products

 

 

332,538

 

 

 

332,498

 

 

 

1,311,996

 

 

 

1,256,656

 

Services

 

 

59,284

 

 

 

66,922

 

 

 

247,441

 

 

 

256,301

 

Net Cost of Revenue

 

$

391,822

 

 

$

399,420

 

 

$

1,559,437

 

 

$

1,512,957

 

 

 

 

 

 

 

 

 

 

Line of Business - Adjusted Cash Gross Profit (2):

 

 

 

 

 

 

 

 

Materials

 

 

 

 

 

 

 

 

Aggregates

 

$

64,853

 

 

$

67,548

 

 

$

296,401

 

 

$

255,925

 

Cement (3)

 

 

33,820

 

 

 

34,240

 

 

 

118,973

 

 

 

107,096

 

Products

 

 

48,102

 

 

 

55,922

 

 

 

195,915

 

 

 

205,002

 

Total Materials and Products

 

 

146,775

 

 

 

157,710

 

 

 

611,289

 

 

 

568,023

 

Services

 

 

14,829

 

 

 

14,732

 

 

 

61,970

 

 

 

53,774

 

Adjusted Cash Gross Profit

 

$

161,604

 

 

$

172,442

 

 

$

673,259

 

 

$

621,797

 

 

 

 

 

 

 

 

 

 

Adjusted Cash Gross Profit Margin (2)

 

 

 

 

 

 

 

 

Materials

 

 

 

 

 

 

 

 

Aggregates

 

 

45.7

%

 

 

49.9

%

 

 

51.7

%

 

 

51.4

%

Cement (3)

 

 

42.7

%

 

 

47.4

%

 

 

39.9

%

 

 

39.6

%

Products

 

 

18.3

%

 

 

19.6

%

 

 

18.3

%

 

 

19.2

%

Services

 

 

20.0

%

 

 

18.0

%

 

 

20.0

%

 

 

17.3

%

Total Adjusted Cash Gross Profit Margin

 

 

29.2

%

 

 

30.2

%

 

 

30.2

%

 

 

29.1

%

 

(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 ended

 

Year ended

Total Volume

 

January 1,

2022

 

January 2,

2021

 

January 1,

2022

 

January 2,

2021

Aggregates (tons)

 

 

15,701

 

 

 

16,622

 

 

 

64,185

 

 

 

59,098

 

Cement (tons)

 

 

635

 

 

 

600

 

 

 

2,431

 

 

 

2,286

 

Ready-mix concrete (cubic yards)

 

 

1,450

 

 

 

1,523

 

 

 

5,831

 

 

 

5,740

 

Asphalt (tons)

 

 

1,151

 

 

 

1,550

 

 

 

5,062

 

 

 

5,831

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year ended

Pricing

 

January 1,

2022

 

January 2,

2021

 

January 1,

2022

 

January 2,

2021

Aggregates (per ton)

 

$

11.15

 

 

$

10.27

 

 

$

11.16

 

 

$

10.77

 

Cement (per ton)

 

 

121.60

 

 

 

118.44

 

 

 

120.24

 

 

 

116.80

 

Ready-mix concrete (per cubic yards)

 

 

122.04

 

 

 

117.86

 

 

 

120.47

 

 

 

116.47

 

Asphalt (per ton)

 

 

62.48

 

 

 

59.95

 

 

 

61.05

 

 

 

59.76

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year ended

 

 

Percentage Change in

 

Percentage Change in

Year over Year Comparison

 

Volume

 

Pricing

 

Volume

 

Pricing

Aggregates (per ton)

 

 

(5.5

) %

 

 

8.6

%

 

 

8.6

%

 

 

3.6

%

Cement (per ton)

 

 

5.8

%

 

 

2.7

%

 

 

6.3

%

 

 

2.9

%

Ready-mix concrete (per cubic yards)

 

 

(4.8

) %

 

 

3.5

%

 

 

1.6

%

 

 

3.4

%

Asphalt (per ton)

 

 

(25.7

) %

 

 

4.2

%

 

 

(13.2

) %

 

 

2.2

%

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year ended

 

 

Percentage Change in

 

Percentage Change in

Year over Year Comparison (Excluding acquisitions)

 

Volume

 

Pricing

 

Volume

 

Pricing

Aggregates (per ton)

 

 

(6.3

) %

 

 

8.9

%

 

 

1.8

%

 

 

4.9

%

Cement (per ton)

 

 

5.8

%

 

 

2.7

%

 

 

6.3

%

 

 

2.9

%

Ready-mix concrete (per cubic yards)

 

 

(4.8

) %

 

 

3.5

%

 

 

1.6

%

 

 

3.4

%

Asphalt (per ton)

 

 

(25.7

) %

 

 

4.2

%

 

 

(13.2

) %

 

 

2.2

%

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 January 1, 2022

 

 

 

 

 

 

Gross Revenue

 

Intercompany

 

Net

 

 

Volumes

 

Pricing

 

by Product

 

Elimination/Delivery

 

Revenue

Aggregates

 

15,701

 

$

11.15

 

$

175,109

 

$

(33,153

)

 

$

141,956

Cement

 

635

 

 

121.60

 

 

77,271

 

 

(3,143

)

 

 

74,128

Materials

 

 

 

 

 

$

252,380

 

$

(36,296

)

 

$

216,084

Ready-mix concrete

 

1,450

 

 

122.04

 

 

176,917

 

 

(63

)

 

 

176,854

Asphalt

 

1,151

 

 

62.48

 

 

71,897

 

 

(62

)

 

 

71,835

Other Products

 

 

 

 

 

 

90,459

 

 

(75,919

)

 

 

14,540

Products

 

 

 

 

 

$

339,273

 

$

(76,044

)

 

$

263,229

 

 

Year ended January 1, 2022

 

 

 

 

 

 

Gross Revenue

 

Intercompany

 

Net

 

 

Volumes

 

Pricing

 

by Product

 

Elimination/Delivery

 

Revenue

Aggregates

 

64,185

 

$

11.16

 

$

716,021

 

$

(142,864

)

 

$

573,157

Cement

 

2,431

 

 

120.24

 

 

292,295

 

 

(10,214

)

 

 

282,081

Materials

 

 

 

 

 

$

1,008,316

 

$

(153,078

)

 

$

855,238

Ready-mix concrete

 

5,831

 

 

120.47

 

 

702,402

 

 

(340

)

 

 

702,062

Asphalt

 

5,062

 

 

61.05

 

 

309,035

 

 

(308

)

 

 

308,727

Other Products

 

 

 

 

 

 

374,263

 

 

(317,005

)

 

 

57,258

Products

 

 

 

 

 

$

1,385,700

 

$

(317,653

)

 

$

1,068,047

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 January 1, 2022 and January 2, 2021.

 

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

Three months ended January 1, 2022

by Segment

 

West

 

East

 

Cement

 

Corporate

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

38,913

 

 

$

30,393

 

 

$

29,417

 

 

$

(54,333

)

 

$

44,390

 

Interest (income) expense

 

 

(3,635

)

 

 

(2,739

)

 

 

(4,778

)

 

 

30,856

 

 

 

19,704

 

Income tax expense (benefit)

 

 

337

 

 

 

(95

)

 

 

 

 

 

10,636

 

 

 

10,878

 

Depreciation, depletion and amortization

 

 

23,962

 

 

 

19,880

 

 

 

10,150

 

 

 

976

 

 

 

54,968

 

EBITDA

 

$

59,577

 

 

$

47,439

 

 

$

34,789

 

 

$

(11,865

)

 

$

129,940

 

Accretion

 

 

221

 

 

 

437

 

 

 

89

 

 

 

 

 

 

747

 

Tax receivable agreement benefit

 

 

 

 

 

 

 

 

 

 

 

(6,779

)

 

 

(6,779

)

Loss (gain) on sale of businesses

 

 

53

 

 

 

(4,745

)

 

 

 

 

 

 

 

 

(4,692

)

Non-cash compensation

 

 

 

 

 

 

 

 

 

 

 

4,830

 

 

 

4,830

 

Other

 

 

(13

)

 

 

239

 

 

 

 

 

 

 

 

 

226

 

Adjusted EBITDA

 

$

59,838

 

 

$

43,370

 

 

$

34,878

 

 

$

(13,814

)

 

$

124,272

 

Adjusted EBITDA Margin (1)

 

 

21.2

%

 

 

22.6

%

 

 

44.0

%

 

 

 

 

22.5

%

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

Three months ended January 2, 2021

by Segment

 

West

 

East

 

Cement

 

Corporate

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

48,051

 

 

$

22,629

 

 

$

25,052

 

 

$

(59,422

)

 

$

36,310

 

Interest (income) expense

 

 

(2,968

)

 

 

(1,505

)

 

 

(4,110

)

 

 

34,129

 

 

 

25,546

 

Income tax expense

 

 

2,763

 

 

 

75

 

 

 

 

 

 

10,310

 

 

 

13,148

 

Depreciation, depletion and amortization

 

 

26,572

 

 

 

20,424

 

 

 

8,752

 

 

 

1,022

 

 

 

56,770

 

EBITDA

 

$

74,418

 

 

$

41,623

 

 

$

29,694

 

 

$

(13,961

)

 

$

131,774

 

Accretion

 

 

212

 

 

 

488

 

 

 

90

 

 

 

 

 

 

790

 

Tax receivable agreement benefit

 

 

 

 

 

 

 

 

 

 

 

(7,559

)

 

 

(7,559

)

Non-cash compensation

 

 

 

 

 

 

 

 

 

 

 

5,738

 

 

 

5,738

 

Other

 

 

(459

)

 

 

264

 

 

 

 

 

 

(1,135

)

 

 

(1,330

)

Adjusted EBITDA

 

$

74,171

 

 

$

42,375

 

 

$

29,784

 

 

$

(16,917

)

 

$

129,413

 

Adjusted EBITDA Margin (1)

 

 

23.7

%

 

 

22.7

%

 

 

41.3

%

 

 

 

 

22.6

%

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

Year ended January 1, 2022

by Segment

 

West

 

East

 

Cement

 

Corporate

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

181,253

 

 

$

122,321

 

 

$

95,352

 

 

$

(244,645

)

 

$

154,281

 

Interest (income) expense

 

 

(11,460

)

 

 

(8,872

)

 

 

(17,217

)

 

 

129,789

 

 

 

92,240

 

Income tax expense

 

 

2,697

 

 

 

114

 

 

 

 

 

 

41,545

 

 

 

44,356

 

Depreciation, depletion and amortization

 

 

98,596

 

 

 

84,912

 

 

 

38,685

 

 

 

4,249

 

 

 

226,442

 

EBITDA

 

$

271,086

 

 

$

198,475

 

 

$

116,820

 

 

$

(69,062

)

 

$

517,319

 

Accretion

 

 

874

 

 

 

1,711

 

 

 

339

 

 

 

 

 

 

2,924

 

Loss on debt financings

 

 

 

 

 

 

 

 

 

 

 

6,016

 

 

 

6,016

 

Tax receivable agreement benefit

 

 

 

 

 

 

 

 

 

 

 

(6,779

)

 

 

(6,779

)

Gain on sale of businesses

 

 

(355

)

 

 

(19,656

)

 

 

 

 

 

 

 

 

(20,011

)

Non-cash compensation

 

 

 

 

 

 

 

 

 

 

 

19,705

 

 

 

19,705

 

Other

 

 

(45

)

 

 

953

 

 

 

 

 

 

 

 

 

908

 

Adjusted EBITDA

 

$

271,560

 

 

$

181,483

 

 

$

117,159

 

 

$

(50,120

)

 

$

520,082

 

Adjusted EBITDA Margin (1)

 

 

23.2

%

 

 

23.7

%

 

 

39.3

%

 

 

 

 

23.3

%

Reconciliation of Net Income (Loss) to Adjusted EBITDA

 

Year ended January 2, 2021

by Segment

 

West

 

East

 

Cement

 

Corporate

 

Consolidated

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

178,460

 

 

$

74,781

 

 

$

69,484

 

 

$

(181,485

)

 

$

141,240

 

Interest (income) expense

 

 

(5,447

)

 

 

(3,156

)

 

 

(13,795

)

 

 

125,993

 

 

 

103,595

 

Income tax expense (benefit)

 

 

4,287

 

 

 

(283

)

 

 

 

 

 

(16,189

)

 

 

(12,185

)

Depreciation, depletion and amortization

 

 

93,279

 

 

 

84,504

 

 

 

36,917

 

 

 

3,982

 

 

 

218,682

 

EBITDA

 

$

270,579

 

 

$

155,846

 

 

$

92,606

 

 

$

(67,699

)

 

$

451,332

 

Accretion

 

 

587

 

 

 

1,701

 

 

 

350

 

 

 

 

 

 

2,638

 

Loss on debt financings

 

 

 

 

 

 

 

 

 

 

 

4,064

 

 

 

4,064

 

Tax receivable agreement benefit

 

 

 

 

 

 

 

 

 

 

 

(7,559

)

 

 

(7,559

)

Non-cash compensation

 

 

 

 

 

 

 

 

 

 

 

28,857

 

 

 

28,857

 

Other

 

 

(114

)

 

 

4,728

 

 

 

 

 

 

(1,657

)

 

 

2,957

 

Adjusted EBITDA

 

$

271,052

 

 

$

162,275

 

 

$

92,956

 

 

$

(43,994

)

 

$

482,289

 

Adjusted EBITDA Margin (1)

 

 

23.6

%

 

 

22.7

%

 

 

34.3

%

 

 

 

 

22.6

%

 

(1) Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue.

The table below reconciles our net income attributable to Summit Materials, Inc. to adjusted diluted net income per share for the three months and years ended January 1, 2022 and January 2, 2021. 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

 

Year ended

 

 

January 1, 2022

 

January 2, 2021

 

January 1, 2022

 

January 2, 2021

Reconciliation of Net Income Per Share to Adjusted Diluted EPS

 

Net Income

 

Per Equity

Unit

 

Net Income

 

Per Equity

Unit

 

Net Income

 

Per Equity

Unit

 

Net Income

 

Per Equity

Unit

Net income attributable to Summit Materials, Inc.

 

$

43,838

 

 

$

0.37

 

 

$

35,152

 

 

$

0.30

 

 

$

152,184

 

 

$

1.28

 

 

$

137,967

 

 

$

1.18

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interest

 

 

552

 

 

 

 

 

 

1,158

 

 

 

0.01

 

 

 

2,097

 

 

 

0.02

 

 

 

3,273

 

 

 

0.03

 

Gain on sale of businesses

 

 

(4,692

)

 

 

(0.04

)

 

 

 

 

 

 

 

 

(20,011

)

 

 

(0.17

)

 

 

 

 

 

 

Loss on debt financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,016

 

 

 

0.05

 

 

 

4,064

 

 

 

0.03

 

Adjusted diluted net income before tax related adjustments

 

 

39,698

 

 

 

0.33

 

 

 

36,310

 

 

 

0.31

 

 

 

140,286

 

 

 

1.18

 

 

 

145,304

 

 

 

1.24

 

Tax receivable agreement (benefit) expense

 

 

(6,779

)

 

 

(0.06

)

 

 

(7,559

)

 

 

(0.06

)

 

 

(6,779

)

 

 

(0.06

)

 

 

(7,559

)

 

 

(0.06

)

Changes in unrecognized tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(42,422

)

 

 

(0.37

)

Adjusted diluted net income

 

$

32,919

 

 

$

0.27

 

 

$

28,751

 

 

$

0.25

 

 

$

133,507

 

 

$

1.12

 

 

$

95,323

 

 

$

0.81

 

Weighted-average shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Class A common stock

 

 

118,624,315

 

 

 

 

 

114,213,808

 

 

 

 

 

117,436,234

 

 

 

 

 

114,014,749

 

 

 

LP Units outstanding

 

 

1,378,141

 

 

 

 

 

2,986,226

 

 

 

 

 

1,867,853

 

 

 

 

 

3,060,248

 

 

 

Total equity units

 

 

120,002,456

 

 

 

 

 

117,200,034

 

 

 

 

 

119,304,087

 

 

 

 

 

117,074,997

 

 

 

The following table reconciles operating income to Adjusted Cash Gross Profit and Adjusted Cash Gross Profit Margin for the three months and years ended January 1, 2022 and January 2, 2021.

 

 

 

Three months ended

 

Year ended

 

 

January 1,

 

January 2,

 

January 1,

 

January 2,

Reconciliation of Operating Income to Adjusted Cash Gross Profit

 

2022

 

2021

 

2022

 

2021

($ in thousands)

 

 

 

 

 

 

 

 

Operating income

 

$

57,184

 

 

$

66,216

 

 

$

253,065

 

 

$

225,173

 

General and administrative expenses

 

 

50,274

 

 

 

50,488

 

 

 

196,728

 

 

 

182,873

 

Depreciation, depletion, amortization and accretion

 

 

55,715

 

 

 

57,560

 

 

 

229,366

 

 

 

221,320

 

Gain on sale of property, plant and equipment

 

 

(1,569

)

 

 

(1,822

)

 

 

(5,900

)

 

 

(7,569

)

Adjusted Cash Gross Profit (exclusive of items shown separately)

 

$

161,604

 

 

$

172,442

 

 

$

673,259

 

 

$

621,797

 

Adjusted Cash Gross Profit Margin (exclusive of items shown separately) (1)

 

 

29.2

%

 

 

30.2

%

 

 

30.2

%

 

 

29.1

%

 

(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 January 1, 2022 and January 2, 2021.

 

 

 

Three months ended

 

Year ended

 

 

January 1,

 

January 2,

 

January 1,

 

January 2,

($ in thousands)

 

2022

 

2021

 

2022

 

2021

Net income

 

$

44,390

 

 

$

36,310

 

 

$

154,281

 

 

$

141,240

 

Non-cash items

 

 

59,211

 

 

 

77,799

 

 

 

253,976

 

 

 

235,425

 

Net income adjusted for non-cash items

 

 

103,601

 

 

 

114,109

 

 

 

408,257

 

 

 

376,665

 

Change in working capital accounts

 

 

50,955

 

 

 

76,721

 

 

 

(46,328

)

 

 

32,204

 

Net cash provided by operating activities

 

 

154,556

 

 

 

190,830

 

 

 

361,929

 

 

 

408,869

 

Capital expenditures, net of asset sales

 

 

(39,065

)

 

 

(32,073

)

 

 

(200,308

)

 

 

(163,231

)

Free cash flow

 

$

115,491

 

 

$

158,757

 

 

$

161,621

 

 

$

245,638

 

 

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