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Summit Materials (SUM)

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 non-residential 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.

Company profile

Ticker
SUM
Exchange
CEO
Anne P. Noonan
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Alan Ritchey Materials Company • Alleyton Resource Company, LLC • Alleyton Services Company, LLC • American Materials Company, LLC • Austin Materials, LLC • B&B Resources, Inc. • Bourbon Limestone Company • Boxley Materials Company • Buckingham Slate Company, LLC • Buckingham Slate #1, LLC ...

SUM stock data

Calendar

4 Aug 22
28 Sep 22
1 Jan 23
Quarter (USD) Jan 22 Oct 21 Jul 21 Apr 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jan 22 Jan 21 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 380.96M 380.96M 380.96M 380.96M 380.96M 380.96M
Cash burn (monthly) (no burn) 3.1M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 27.67M n/a n/a n/a n/a
Cash remaining n/a 353.29M n/a n/a n/a n/a
Runway (months of cash) n/a 113.9 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 Sep 22 Kekin Ghelani RSU Class A Common Stock Grant Acquire A No No 0 29,001 0 29,001
3 Sep 22 Anderson Karli S. Class A Common Stock Payment of exercise Dispose F No No 28 439 12.29K 14,162
3 Sep 22 Anderson Karli S. Class A Common Stock Option exercise Acquire M No No 0 1,000 0 14,601
3 Sep 22 Anderson Karli S. RSU Class A Common Stock Option exercise Dispose M No No 0 1,000 0 0
30 Jul 22 Brian James Harris Class A Common Stock Payment of exercise Dispose F No No 27.51 5,851 160.96K 191,968
30 Jul 22 Brian James Harris Class A Common Stock Option exercise Acquire M No No 0 13,328 0 197,819
30 Jul 22 Brian James Harris RSU Class A Common Stock Option exercise Dispose M No No 0 13,328 0 0
30 Jul 22 Christopher Burke Gaskill Class A Common Stock Payment of exercise Dispose F No No 27.51 3,067 84.37K 20,414
30 Jul 22 Christopher Burke Gaskill Class A Common Stock Option exercise Acquire M No No 0 6,985 0 23,481
30 Jul 22 Christopher Burke Gaskill RSU Class A Common Stock Option exercise Dispose M No No 0 6,985 0 0

Financial report summary

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Competition
U.S. Concrete
Risks
  • Our business depends on activity within the construction industry and the strength of the economies in which we operate.
  • Our industry is cyclical and requires significant working capital to fund operations.
  • Weather can materially affect our business and we are subject to seasonality.
  • Our industry is capital intensive and we have significant fixed and semi‑fixed costs. Therefore, our profitability is sensitive to changes in volume.
  • Within our local markets, we operate in a highly competitive industry.
  • The success of our business depends in part on our ability to execute on our acquisition and portfolio optimization strategy.
  • The success of our business depends on our ability to successfully integrate acquisitions.
  • The success of our business depends on our ability to retain key employees of our acquired businesses.
  • Our long‑term success is dependent upon securing and permitting aggregate reserves in strategically located areas. The inability to secure and permit such reserves could negatively affect our earnings in the future.
  • A decline in public infrastructure construction and reductions in governmental funding could adversely affect our earnings in the future.
  • Our business relies on private investment in infrastructure, and periods of economic stagnation or recession may adversely affect our earnings in the future.
  • Environmental, health and safety laws and regulations and any changes to, or liabilities or litigation arising under, such laws and regulations could have a material adverse effect on our financial condition, results of operations and liquidity.
  • Shortages of, or increases in prices for, commodities, labor and other production and delivery inputs could restrict our ability to operate our business and could have significant impacts on our operating costs.
  • Difficult and volatile conditions in the credit markets could affect our financial condition, results of operations and liquidity.
  • If we are unable to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us, we may achieve lower than anticipated profits or incur contract losses.
  • We could incur material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual specifications.
  • The cancellation of a significant number of contracts or our disqualification from bidding for new contracts could have a material adverse effect on our financial condition, results of operations and liquidity.
  • Our operations are subject to special hazards that may cause personal injury or property damage, subjecting us to liabilities and possible losses which may not be covered by insurance.
  • Unexpected factors affecting self‑insurance claims and reserve estimates could adversely affect our business.
  • Our substantial leverage could adversely affect our financial condition, our ability to raise additional capital to fund our operations, our ability to operate our business, our ability to react to changes in the economy or our industry and our ability to pay our debts, which could divert our cash flow from operations to debt payments.
  • Despite our current level of indebtedness, we and our subsidiaries may still incur substantially more debt. This could reduce our ability to satisfy our current obligations and further exacerbate the risks to our financial condition described above.
  • We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.
  • The indentures governing the Senior Notes and the Credit Agreement contain covenants and provisions that are restrictive.
  • Our success is dependent on our senior management team and our ability to retain and attract qualified personnel.
  • We use large amounts of electricity, diesel fuel, liquid asphalt and other petroleum‑based resources that are subject to potential reliability issues, supply constraints and significant price fluctuation, which could have a material adverse effect on our financial condition, results of operations and liquidity.
  • Climate change and climate change legislation or regulations may adversely affect our business.
  • Unexpected operational difficulties at our facilities could disrupt operations, raise costs, and reduce revenue and earnings in the affected locations.
  • We may incur significant costs in connection with pending and future litigation.
  • We are dependent on information technology. Our systems and infrastructure face certain risks, including cyber security risks and data leakage risks.
  • Labor disputes, strikes, other forms of work stoppage or slowdown or other union activities could disrupt operations of our businesses.
  • Summit Inc.’s only material asset is its interest in Summit Holdings, and it is accordingly dependent upon distributions from Summit Holdings to pay taxes, make payments under the TRA and pay dividends.
  • Summit Inc. anticipates using certain distributions from Summit Holdings to acquire additional LP Units.
  • Summit Inc. is required to pay exchanging holders of LP Units for most of the benefits relating to any additional tax depreciation or amortization deductions that we may claim as a result of the tax basis step-up we receive in connection with sales or exchanges of LP Units and related transactions.
  • In certain cases, payments under the TRA may be accelerated or significantly exceed the actual benefits Summit Inc. realizes in respect of the tax attributes subject to the TRA.
  • The market price of shares of our Class A common stock has fluctuated significantly, which could cause the value of your investment to decline.
  • Because we have no current plans to pay cash dividends on our Class A common stock, you may not receive any return on investment unless you sell your Class A common stock for a price greater than that which you paid for it.
  • Future issuance of additional Class A common stock, or securities convertible or exchangeable for Class A common stock, may adversely affect the market price of the shares of our Class A common stock.
  • Anti-takeover provisions in our organizational documents and Delaware law might discourage or delay acquisition attempts for us that you might consider favorable.
Management Discussion
  • Operating income reflects our profit from operations after taking into consideration cost of revenue, general and administrative expenses, depreciation, depletion, amortization and accretion and gain on sale of property, plant and equipment. Cost of revenue generally increases ratably with revenue, as labor, transportation costs and subcontractor costs are recorded in cost of revenue. As organic volumes increase, we expect our general and administrative costs as a percentage of revenue to decrease. General and administrative expenses as a percentage of revenue vary throughout the year due to the seasonality of our business.

Content analysis

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Positive
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Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
New words: consummate, exceed, home, loan, phase, repaid, slowdown, unfavorable, wet
Removed: close, coupled, destroyed, Kentucky, overcome, supplemented