Summit Materials stumbles 12% post Q3 earnings
Oct. 28, 2020 By: Akanksha Bakshi, SA News Editor
Summit Materials (SUM -12.7%) reported Q3 revenue decline of 3.1% Y/Y to $709.62M, reflecting lower east segment and cement revenue relative to a year ago.
Organic sales volume of cement decreased 11.3% Y/Y in Q3 and organic average selling prices increased 0.5%.
Revenue by segments: West $351.51M (+6% Y/Y); East $208.86M (-11.3% Y/Y); and Cement $84.87M (-14.3% Y/Y).
Company’s operating margin percentage for the quarter decreased to 15.6% from 19.7%.
Q3 Adj. cash gross profit was $240.62M (-3.1% Y/Y) and margin was 37.3% down 10 bps.
Adj. EBITDA decreased 8.1%Y/Y to $177.7M; and margin declined by 150 bps to 27.5%.
Company had cash on hand of $288.8M and borrowing capacity under its $345M revolving credit facility of $329M, as of September 26, 2020.
Company expanded its previously announced FY20 capex guidance to $175M-$185M, including $50M-$60M for greenfield projects.