Summit Materials (SUM)

Karli Anderson Head of IR
Anne Noonan CEO
Brian Harris CFO
Stanley Elliott Stifel
Phil Ng Jefferies
Kathryn Thompson Thompson Research
Noah Merkousko Stephens
Garik Shmois Loop Capital
Joe Nolan Longbow Research
Anthony Pettinari Citi
Mike Dahl RBC Capital Markets
Jerry Revich Goldman Sachs
Call transcript
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Ladies and gentlemen, thank you for standing by, and welcome to the Summit Materials First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be question and answer session. [Operator Instructions] I'll now turn the conference over to Karli Anderson. Please go ahead.

Karli Anderson

first results Materials' call. Summit to quarter conference XXXX Welcome detailing release and We press afternoon our issued a yesterday financial operating results. This presentation and key by Investors section our supplemental on website. are accompanied data, highlighting our which operating financial call workbook and the of posted of an is updated all investor to on control. call nature, outside Summit Materials may uncertain commentary are forward-looking statements, Management's and questions and include responses their today's which, by of

may expectations Although in these based are way. beliefs, a differ forward-looking results on management's material and actual current statements

For of actual is Summit which Form discussion Factors see some a on that of of of could results the filed the with cause Materials' section please report each factors latest the annual to SEC. differ, XX-K, Risk

in will our release. provide and Anne Harris, You provide can find a with reconciliations begin Noonan, of Brian review the from call discussed than Today's press today's our call historical will financial business measures concluding a update non-GAAP CFO, CEO, remarks. will our and Anne financial

We the line Anne. [Operator the I'll questions. will then that, call to open Instructions] turn over With for

Anne Noonan

our joining quarter Good call. presentation first thank of and an you our morning, the begin for of overview on quarter We'll XXXX Slide everyone, performance. X with earnings first

single Summit our of on important Before actions I the results, would our consistent core with practices daily and brief you value the all at to by most operating safety. providing is on Safety financial start normal driving like I Summit, employees. an update

X,XXX safety uphold return every and workday. highest after that Our our highest the home priority is for standards of employees all safely approximately

that improving of recordable the year-to-date. remote we place are our performance to communities core safety employees And every company that our the have pleased of protocols I serve in day ensure of zero safe. workers essential a have Safety distancing few to and business, is closed of guidelines. that incident is to achieved seriously. COVID-XX, remain to to minute our Summit, keep zero Our local subject culture. incidents still ours focus in we continues driving companies on and at A committed report throughout an journey Enhanced many that operating to responsibility a take every am we a to are offices continue value. response and our be we safety and

XXXX However, we expect over transition base in financial months, After the the provided turn employee our to to results. to that I'll next and Migration few into record complete favor conditions health that working activity and strong person of and the are our transportation local footing. financial serve results. to the most operating state entire to improve. now a continue to finish accelerated Summit first quarter departments XXXX, we continues solid with rural has exurban on markets of

Summit for and early full with are greenfields investments strategy, Elevate QX that adjusted record fundamentals. on in of results by delivered on We strong are focused remain our signs in we underpinned and growth markets We mode seeing net are implementation success. We and EBITDA. sustainable revenue growth end

have one robust on Summit hit aggregate began strategic quarter the strategy, the in ground X.X%; ready-mix dollar asphalt, were throughout lowest and cash we up in quarter there XX.X%. gross We cement expanded our several impressive volume the of million with the year several Elevate we divestiture quarter up Though left two an was which margin Our weeks price to XX.X% growth ago volumes for volumes initiatives from of volumes year the when work and announced up up XX.X%, gate. running XX.X%, our out only the in in typically $XX more. of completed effect. over annual QX outcome adjusted is profit with yet an when the quarter, XX.X% expansion taken Volume increases terms, not quarter,

at Our a and we've ROIC level. quarter. on our flat On Slide EBITDA performance remained our X, segment versus highlighted last XX-month margin and basis, the trailing leverage improved

Our of the West and ready-mix quarter in Columbia largest financial and segment is up residential higher the revenue in XX% which conditions aggregates Utah record improving. contributor strength in first all XX% EBITDA on adjusted continued reported still to Market the drove of results. are our It Texas demand. markets, and net British

up reported X% records set segment which and demand. projects up Our had We farm which East by asphalt record demand was fewer EBITDA, wind partially ready-mix when net to offset QX higher was revenue, XXXX. aggregates XX%, for driven adjusted by and compared

where the early adjusted adjusted sold start in terms, volume product East of growth bottom of over but increasing a dollar $XX.X contractors in the the the in report the XX.X% XX-month both construction adjusted average impact Summit QX price for to affected contributed up negatively cash than year-ago material continues to and whole year Cement change base EBITDA The Cement's mix ago segment demand and mix we gross is as aggregate increase as season. significant profit margin the a a quarter. X.X%. had line more also an In quarter. business XX.X%. XX% segments in selling Kansas, We EBITDA, an with trailing up got reported million to revenue This at

up currently well expand is full Our the ramping The Green is underway. to also to production. America facility Green Recycling America facility project back

our Slide X. to Summit presented weeks ago, Seven we Elevate strategy. Turning

success long-term continuous better understand We are creativity encouraging that deliver and road but to seeing growth. execution, sustained ahead require as discipline the signs returns organic will of early

We to and enterprise. Summit business construction excellence centers excellence of and across asphalt across created of on lines ready-mix excellence business. the Operational aggregates, entire commercial four focus of critical and capabilities have our for lines

practices asset improve agility results. productivity in our optimize developing technology structure optimizing return of like required We invested best-in-class across the tools are drive will assets. results across to business utilization of all of decision-making cost the standardizing and areas and and consistency purchasing, on and Standardization overall capital and while our

each number more are two people in strategic First, key migrating and shine rural our markets. want continue of and homes, where priorities: X to are of population These enhancing one we operating our and have to the will number by them roads. week. We leveraging leadership. ships construction local we strength reminder, the a the and require markets schools or market new These exurban As brands be to companies

to of team This a and knowledge portfolio. million. combination ground gain expertise Market leadership aggregates value the QX, business, greater leadership and margin tight and is to Glass our driver sourcing on relationships strategically a We team. divestiture targeted of integration positioned the on core than not was metrics the than in a portfolio million Summit's In as and our well disposition provide regional greater pricing selective ROIC. our of in of transaction development XX% generated as are expand completed where to corporate $XX which targeted development divestiture will into through the deliver optimizing $XX.X divestitures portfolio will growth. long-term continue markets, through to key best targeted markets. regional from on cash optimization fosters of Summit's EBITDA excellent The we and of key XX% our corporate with the proceeds teams deal includes be drive growth our flexibility Summit to total strategically

We goals. will our Elevate capital strategically alignment Summit allocate in intentionally with and

owner. efficiently deploying the where business capital an we are asset-intensive rightful Shortly more approach. We an end, quarter were after asset-light we not divested with also successfully

and we not number have ownership upstream, versus different with near XX downstream And the aggregate our contract competed customer we we finally, we business the deployed Summit, complexity an medium-term meet rolled strengthening when greater of a aggregates relationship the transaction, part our counterparty where than ROIC. long-term March committed had greater XX% while growth low XX% did to than financial supply contract. not with and asset thus in one of it the the goals long-term on a capability two, under isolated of approach. This to with were downstream divestiture It spoke the that the supply or an to market or reducing a our number of As asset-light met existing pull-through capital our the was opportunity out in competitors business. criteria our EBITDA

We drivers our on company, process baseline the social our stakeholders. across key and we'll become that reporting the other and integrated provider. establish land has to standardizing the We're responsibility, the to performance. and human to understand behind do, emissions all importance develop it to because have impact, right responsible significant most thing not data is to construction use COX map service social measurements use to committed We and started only of material socially road a the to our lead but it also

expanding Green to We facility it have expect this and completed our Recycling are year. America

bring to With tell customers they building value regards to the overall and that to increased emission customers through innovative there ESG, and with our Our enhancing stringent serve ESG. of an opportunities delivery products us lower we codes challenges is for opportunity valued and and our solutions commitment to the to communities increasingly our while and demands of services, meet business. performance financial face quality

innovation. fourth our Finally, commitment in priority to invest a strategic is

partnerships. the and or beginning towards already products university an projects to assign sell with that to We and of resources are developing and function industry we have inventory working been

of Slide our one transportation demand will KDOT product, On benefiting than you'll energy, Summit reliant margins from to for line plan be more that in greater reduces a is help innovative Buildex-Lightweight one our the less X, and horizons. we geography business during example, execution strategic our graphic and XX% solutions deliverables drive summarizes introduced Innovation aggregates because or For costs. see Summit labor greener, towards over on business three our long term. us that the Investor Day Elevate EBITDA and

while and which and divesting the Slide value We bottom at creation. on completed X. review are are businesses focusing underperforming X, key our the currently of We've noncore process in in of Horizon detailed of drivers is portfolio

improve of our looking cost cultivating capital and are more at that sustainable, drive to and our with profitable ways processes across structure do less can to excellence a company culture intensity. agility across growth portfolio. we We the Standardizing underlying

in compelling are develop innovation strategic roadmap. responsibility social and We resources starting a goals establishing talent recruit and to invest to specific for

through that we We will X% of XX% be strategy the on EBITDA way. a X multi March we long-term XX, the along implementation and less towards XX% progress presented than horizon and expect we of drive financial told the an regular you these of Summit's pursued would to leverage. ROIC us Horizon When approximately and X adjusted report efforts to times margin strategy goals that

on pledge, through on update X. an we that Slide Following have

at strategic great cause may that portfolio example progress fluctuations not each in to our trajectory priorities. be as a the of through is want quarter we sights due We to to take opportunity the I playing As our long are are our expectations. these within it on but the goals may level set I clearly assets game. Day, nature results divestiture upward we said Investor linear A believe of optimization. the

we promise and While promise line we transparency our can perfect relentless steady can't goals, on a focus towards execution.

to off are We a good start.

Based our leverage X.X is major what times, a from quarter leverage December we year from Keeping unchanged distance ratio times our this of year increases X reported lowest X.X times leverage in Summit is because a EBITDA is achieving notable unchanged the that year. we less also Elevate typically the of has the ratio ago. usually it Our our first striking leverage than conditions because believe ratio in and business improvement calendar today, contribution. goal on within

acquiring a pursue points improved allocation Of achieving leaders We've for course, charge market be teams taking to invested by is the goal less positioned months with we to challenging to X.X% our on it priorities by basis more and our capital our trailing in XX times other this makes metric, their leverage with an on change better but X way, assets at seen XX a and efficient, capital along balance asset-light or where approach from capital Return X%. the close. cultural regional than divesting Summit to be will sense. ratio

XX positions months margin than We ROIC of XX go towards in in Adjusted XX.X% expanded points fluctuate XXXX. XX% XX.X% April as basis through may target. a from X, this well a bit ended we calendar XXXX, divesting EBITDA believe the we expect our greater assets, but us period that to strategy trailing drive to

we've results top in up roughly the strength projecting permits states teams from TXDOT and XX% U.S. February drove housing update relative commercial lettings In is X, than in with for year-over-year, March up XXXX nonresidential. substantial conditions revenue. Demand XX% is end residential Texas, are Slide of housing XX% to current impact year. markets robust, a $X.X XX% billion an weakness likely in today offset Summit's a COVID-related a X.X% increase in current stemming provided February. reflecting combination in from fiscal and unfavorable market ago. Our our weather the year public, end-use last lost by XXXX, of that year, more the and five of conditions production late On

at billion Texas of than Nonresidential addition, Salt and remain most December XX% residential the markets, and we diverse year-over-year. Panhandle single-family state. projects upon in to as parts of in in later expected recovery are combination month and has this suburban lettings Houston up in the new signs country's area from the homes were in stimulus, in In of March still of construction By many year-over-year growth year other inventory to entire up of integrated lows is and less one greenfields continue in for been some passed a over in fewer year area. $X.X home March the City where legislation billion one highest deliver is past reported. one recent exurban March market Lake we TXDOT Basin $X.X its permits billion the great and a and vertically to across XXXX. Kansas, is historical the with permits leveraged Kansas activity in growing where March spending resilient ongoing of may companies markets, organic Summit, inventories of receive addition X is which seeing stimulus. fully are markets to highest permits see of some Permian and growth UDOT some highest sustainable and were budget, X.X% XXXX current embarks contrast, a XXXX. up Single-family fiscal of large the reflects operating fiscal current Utah to growth in revenue modest million and of markets leverage is expected are excellent state XX% its in deliver example an year-over-year. $X.X Single-family is planning of our of positioned growth. increase in KDOT Utah well for for and $XXX its fiscal for year forecasting to of In investments is model is is to our the

previously Transportation worth of million $XXX While revenue of plans announced have deploy a decline to been of $XXX up XX%, Missouri's approximately expected Missouri receive Department estimated they approximately million tax projects recently is deferred. initially stimulus. to to in also have that of

$X.XX the are budget the current reflects of year-over-year in expected an over in receive up permits XX% on XX. year. billion is Finally, Single-family Wrapping increase Virginia, while the state of XX% prior up Slide stimulus. March, to

on an growth Investments are pursuing strong fundamentals. are that We markets organic aggregates greenfield development to strategy these targeted markets key focused underpinned sustainable growth. in growth is by delivering

are will a greenfield For the example, Atlanta job a has major favorable in with in with our state growth, in mobility and in presence expanding aggregates funding location that trends mid-XXXX migration That Georgia start-up strong profile we DOT program. an and ex-serves.

These another cumulative greenfield in full as greenfields our of projects million avenue our $XX generated and million $XX.X The long-term XXXX in that, million estimated million the We basis discussion have our part It advanced the the annualized Carolinas, South rapidly to turn to greenfield financial approximately are on will markets existing generate of country. of that fastest-growing results. a conditions investment call once for are expand North and XXXX. sustainable also adjusted operation the in improving growth. which Carolina. X both in DOT million over on of XXXX projects state by with they $XXX Brian business is in spending Summit greenfield. well in in an from of $XX presence capital these EBITDA Expected $XX I'll With complement development another provide will in funding for

Brian Harris

to due revenue in a $XXX.X we've markets. to in On million and year net quarter higher million the you, compared aggregates, our XXXX to Thank concrete, revenue most XXXX. Summit's QX ago first and the XXXX revenue demand ready-mix in asphalt Slide bridge XX.X% $XX.X relative $XXX.X provided XXXX comparing paving on cement, strong Anne. to QX or XX, to net of increased million of quarter first

organic on the segment volumes, aggregate incremental revenue an particularly and West and Our Texas. higher million way, Utah in $XX.X net contributing led ready-mix

We Texas, acquisitions and last $XX.X with of in from of million third year. Columbia revenue an incremental quarter in also British that closed in benefited associated the operations

up million of net segment a parts Virginia, East in we volumes Our Kansas higher revenue Kentucky $X.X as was relative to ago. had and year

earlier Our Cement in of particularly barge was up traffic. southern the QX net on the stronger quarter markets prior revenue river $X.X and in year North for demand, segment million relative the to opening the band

EBITDA The XX. million, ago, the year adjusted to We from a QX $XX.X were ago. segment a to West returns up the our XXX% drivers increase at cement. Slide over from Turning quarter performance as bridge. of organic higher ended record We provided as biggest well relative year

Slide to Turning XX.

to $XX improvement of XXXX with million organizational Reported efficiencies. professional fees Summit, attributable optimizing quarter $X.XX net to was basic or XX% share $XX $XX.X we first and a Inc. We of of than year business the XXXX, key substantially West and increased an the together sale as on of exceeded per increase in which operating or an higher reported of business lines in more see general GAAP $XX.X performance a period. $X.X a costs million to ago basic gains segment $X.XX expenses, a in You'll revenue cost a with administrative unit. loss an revenue reflected improvement severance in financial year prior gain increases compared included million Net This loss ago, loss well year associated million operating in loss million in million in per metrics. a $XX.X million and of relative all and of our of an as reported of related first $XX to XX.X% share. net quarter relative offset

Slide net XX. metrics Turning by XXXX impressive from we XX% a non-GAAP we presented XXX aggregates, XX-month in We for XX.X%, an QX a XXX quarter, $XX.X Adjusted combination EBITDA trailing and an higher of our in gross XXXX margin cash profit compare on to trailing as on on of points the QX in markets. XX-month first well margins per basis XXX QX nearly to by price and loss the to expanded trailing financial asphalt expanded and where volume basis quarter points as $X.XX XX-month several comparison. basis basis of to relative which million is basis basis, ready-mix XXXX. increase points. expanded Adjusted at points share all diluted improvements improved are or Adjusted QX XXXX a XX the and

the Turning of for X.X% QX to average concrete quarter versus selling Slide for our unchanged provided aggregates of in XXXX X.X% XXXX a comparison XXXX. and in cement, X.X% increased in and in volume first XX. the were We've quarter first price Organic and asphalt. prices ready-mixed

markets low last relative XX.X% don't average to X% and go acquisitions. than quarter North a aggregate, period start of selling company-wide While year in on material volumes Texas first in X. concrete Summit's April reported in until of which selling in in increases reported our the our to our mix in volumes the prior Sales increased aggregates ready-mix well product average for XXXX, recent resulted as as price Kansas strong typically a period. most the the and XX.X% the way prices asphalt X% markets price season, in same higher impact of demand higher the traditionally annual By the in reminder, in of is lower range geographies base most the into of year in of effect X.X% XX.X% first cement, quarter in

QX of first gross comparison Slide geographies. aggregates points in XX-month quarter in expanded to by first as cash XXX as basis, trailing quarter On XX.X%, stronger the declined Aggregates our points. a to basis XXXX in in most margin adjusted XX-month margin pricing basis percentage versus reflecting Turning the XXX well of the lines XXXX business. the all We margins trailing XX. provided

gross margin increased actual However, $XX.X million. dollars by

costs. businesses, points volume positive XX-month Texas. basis business first strong to as for by points expanded XXXX XXXX, lower our products basis basis experienced unseasonably from reflecting QX trailing X.X% in the points, we points Margins Our QX by services Utah to growth QX reflecting in volumes trailing in XX.X% resulted level sustained significantly activity. and months our basis in for of particularly in for the Texas margins an and The improved pricing months of XX the XXX expanded and in XXX for moving XX XXX margins margin and quarter expanded as downstream significantly, strength our plant negative markets. XXX underlying higher trailing Cement X.X% unit

transaction changes Slide we in to for to administrative fixed were overhead expenses costs. in in quarter and than in XXXX. earlier or gross proportion revenue. XX% and America experienced following Transaction will costs divest transparency our river assets. our Recycling increase continue the XX-month production continues operating been downstream costs, Beginning growth northern these to in into movement greenfield ramp guidance facility Previously, foster to in weeks will materials we reported pursue production brand are and trailing reopened slight Green adjusted allowed And We our we like to inventory. shipping reporting believe we which North have greater overhead as G&A. and included expect loss changes some an of comparability general measure And explosion our April to Our fixed as our cash strategy, highlight occurred income G&A from X performance. earlier products our production previously expenses. an of traffic in moved XX% up as customers reporting expenses engage peers our to to our underperforming for in profit, production that of which reporting be overhead which of a I'd comprised the to EBITDA of XXXX. year and related On structure normal, organic from resulted M&A markets, contribution full first increasing the Materials modifications XX, fixed XXXX, for cost we

purposes of now DD&A million we $XX interest for $XX million We XXXX, to $XX estimate be to a million of be million. modeling $XX that expense in will million. to range be million $XX G&A a that $XX should should in quarterly range estimate For and

the shares For includes the million, million and which $XXX Class diluted per X.X calculating count please of share LP XXX.X earnings share purposes adjusted use of A units.

see structure. Turning summary of a capital Summit's to you'll XX, Slide

leverage QX ratio was times quarter at from X.X lowest X.X is first history. ratio XXXX, down by XXXX Our which times in Summit's leverage QX the

first leverage ratio lowest capital in high QX the Our and EBITDA the typically as the of year increases contribution quarter relatively has expenditure.

However, proceeds from the to constant. sale of a financial business unit allowed leverage combined performance ratio the with a us strong hold

following had and fundamentals. flow liquidity higher end over undrawn Combined first $XXX the operating cash operating available Summit was from an of XXXX. in strengthening to BAX cash robust position our which upgraded of quarter. profile performance, Corporate the in QX Summit $XXX from million, Materials increase closing predictability Our BX, steady family credit over million $XXX.X Summit in citing free with rating continued million was revolver, Materials improvement Moody's LLC the at of

over and Our we closing that Summit And back within X is turn Anne call with in I'll our for goal Elevate is leverage, that, the less believe her XXXX. remarks. than to times sights

Anne Noonan

Slide Thanks, from provided year the call. on for earnings 'XX, unchanged we last provided is our this guidance our Brian. On we've which outlook

to the year forecast progresses. expect We as this revisit

at to of million, For its $XXX $XXX to generate of which million XXXX. X% midpoint XXXX, growth over we EBITDA assumes expect adjusted

$XX to to to million $XX CapEx, $XXX greenfield. spend which million expect be million related to will We $XXX million on of

aggregates increases low price We of in increases volume cement continue to single-digit low those for and expect and business. to mid-single-digit lines

and volume We to be expect flat. asphalt relatively pricing

was year QX While quarter it's our midpoint just adjusted our of excellent, important first to full acknowledge EBITDA X% our that performance outlook. of represents the

XX, would the for and Elevate into turning at learned, believe on and early Slide adjustments we listened strategy. days action. is premature. this that stage Summit We've we making be So Concluding it feedback are

stakeholders Operator? asset that, moment, We management plates approach, leadership, and this lot to over our our at With as on the a light approach, will time. a results to I'd consistent the but more it for believe like we, operator deliver and to team, social responsibility collective questions. market innovation over better turn have


from [Operator Instructions] Stifel. Our Stanley comes first with question Elliott

Stanley Elliott

the I business. margins, glass they Could below more market key that corporate downstream were Curious on what penetration it isolated, listen. strategy. and color hang-up And you has on would a part give if us of they Elevate a believe, if running I'll these in the somewhat focus was little common, have the average in divestitures, I were know aggregates been

Anne Noonan

Thanks for your question.

divestiture first get glass aggregates that growth market, basically business the a that. and in example low a that's business, the did color It So was bit and we on a was owner. just supply that And to we've actually we that agreement limited weren't would rightful targets a was an meet ability long-term and tied to our just really set more of little the place. to margins our underperforming the ROIC we the point in

the the proceeds gain. In business, million strategically either core million in and get on better. wasn't this it $XX much it was to sell So case, $XX.X

we a to medium-term a And we a both where near-term investment. where relationship one and get and have we agreement what ROIC with, end looked divested supply things over candidly, didn't as win-win net ag said common number the margins we one path It we for was haven't at that double The about I were better to it was quarter. other part or asset-light a we're to the five. we where talked could approach, develop of downstream, have really the parties. see without it had but number business the in was about four our of XX% talked It customer after digit significant long-term

asset-light would it So fit sweet that in said right use approach. really we we an spot of where


Phil question from next comes And with Ng Jefferies. your

Phil Ng

year. a start the to on Congratulations great quarter a impressive really and

organic get activity? implies on as seems guidance shaping lag unchanged you the of things on on Your given which deferred money work the called volume how the call Missouri any pretty for to some color are up out perhaps color for any letting so curious out But on that conservative, far. well? volume declines stimulus aggregates, just And and on bidding anything

Anne Noonan


couple a of Just things.

midpoint, of color on backlog that. low bidding a the And we we're fact did price year to little and a volume. a Panhandle, such seeing for guidance, in assumption in comments clear talk some aggregates little asphalt continues -- expect keep the a we're activity. that Texas We cement strong we our is Permian. our did for on had bit of a because be volume very, and we seeing about single-digit the for low but on mid-single-digit So flat decrease assumption just on a bigger very and price to the prepared in in strong very in us

So overall, for is Texas strong us. just very

look As Lake Missouri, across strong strong now the projects very And then next continues $XXX all back this year, year. put was million more of markets, stimulus has stimulus. Kansas, perspective, be million. million has to and that billion deferred million of Salt been we $X.X in $XXX our funding into public budget, $X.X $XXX from city

we're spending at be that that widespread today seen. where the volumes. it's through money, see some And to volumes think point time. that cautiously for not seeing look board. at the levels time stimulus I the say going seeing as take would we grow. we've not sit this really we course, that's public we're on about our when But growth in across So I optimistic saying to actually at but work we We're normal


with Our Thompson next Thompson question comes Kathryn from Research.

Kathryn Thompson

as such the as the with allocation U.S. challenges that, over clarify a next tight And does what look Texas months? you're supply earnings? quarterly certain for on a markets you how of really along supply This facing any now. impacted like seeing first, broader question. if chain and Texas are the could How that standpoint? are supply fees parts speaking, cement, Broadly surround several chain And you with you planning with from

Anne Noonan

weeks, Texas because impact indeed us, Thanks we for two strong it job a another ended The impact business but was in Kathryn. strong freeze, and up for about team and had with quarter, up the that's earnings. a back really delivering year-round did catching phenomenal

in on in definitely seen chain very dynamics our we've markets, shows our supply From So I QX. perspective, chain it And this that any that robustness significant demand particularly have point we supply just business. not in cement are we the supply allocation. of seen a of at on key will say few time. tightened, impacts a have

with very have our We suppliers. relationships strong

So we great watching a able cement doing in play And very to manage But But -- strong so that. nationally certain is definitely downstream job far, and teams the through are presidents but it, we we working able to overall is -- our we're regional closely. the in markets. tight. doing why it our -- this are in markets,

the supply is able price with are it customers along, cement pass and working very to and to our focused price chain. We through execution team that on our drive


from with comes Trey question Grooms Stephens. Next

Noah Merkousko

This is for Merkousko Noah Trey. actually on

think reach end in I I goal? when wanted the to your can ask, margin X give the high any you margin So was you on think you update the quarter timing for it's EBITDA Can XX%. Horizon really impressive. us of

Anne Noonan

when lot bit. you specific We overlap to will of these it timing three progress, horizons, me really haven't given good horizons at minute, for we're depend how step and the point little that in a very will I get a let look A this back really time. we will schedule. on our at making say

the on X, get the said into we're on of how it we to and business. depend many in we've reinvest The how So XX% and to horizon, XX% get trying it as because range. done in get first Horizon proceeds will it that those a divestitures reason back we we've quickly ranged

continued we've I very shareholders sacrificing and towards price So us generation will fast. also, we're say, The as bring but so, value focus we're margins quarter. great heavily in team shown moving, is a for not this doing our would on job, improving doing obviously,


from with Capital. Next Loop Shmois question Garik comes

Garik Shmois

tight supply the Cement. discussed situation, You

second peers then aggregates in curious if of potential later same from heard year? price aggregates, provide this pricing increase on several And as could price any any we've your regarding additional the thoughts you Just in to thoughts well? midyear targeted increases,

Anne Noonan

me, So Cement, of all, Garik. let first address

price So increase know, here QX, we that's coming April. just as you and in in play into announced a

river they how and in on the actually QX. execution robust see our So are price along the as we'll QX, proceeds be able that were to volumes not in as goes. Clearly, as quarter here report

is rule it's supply competitive also, I before, the not But out important cement. watching. the in about would price dynamics. very tightness our we've to demand of many in So segments we're understand talked something another times we increase as market,

value on very focused is Our pricing. team

make down course, Of working customers the drive can chain. our supply with to sure it they that

volume our From would that our reported quarter, to first aggregates remarks, quarter we most said had as continue our our in as are we'll in comes double-digit little growth numbers, price mix. Most It's year-over-year at of first go. look and prepared coming report just of in say by out So we price we increases down our Because impacted in low perspective, margins bring some as an our were frankly, by a and in such base aggregates had in And -- I most again. by, X% our basis the we that increases. price markets. regions, X% to in overall Texas, is we XX.X%, that pricing, points. obviously, expanding aggregate material adjusted volume did gross to were quarter, XXX the we but profit see very sold we Kansas thing in encouraged increase North of April. it's cash a

to though, look increases that year and and will proceed. and Right continue, dynamics of price intentional we're mid-single-digit market but progresses. competitive we'll will We low conditions price, we guidance very report our to as on be as monitor closely we sticking the with strategic to now, at


with Your Longbow next comes MacGregor question from Research. David

Joe Nolan

buckets for wanted is inflation, some on Congrats when Nolan any can the just you're And provide there year. about peak? I of how And David. you just Joe might This remaining just different there? for a the great on think quarter. those about of you ask just cost the to detail thinking

Brian Harris

and in we inflationary any the on We're closely cement opportunity price. increases markets, in very of get if on we a into we that this At that, pass obviously numbers. the for that levels We're see Thanks your we're question. obviously, baked -- watching guidance point, seeing the increases. original days topic our an had hot strongest not Joe. we where it inflation. price would seeing will obviously these anything Thanks, reactive to exceed be It's

we We our increase are were able and things about to guidance pass that that we on an care, in in X% original ready-mix health when increase. approximately saw the which demand baked saw in the assumptions X% where Other labor, market into our we is strong.

actual to on of guidance. else we favorability anything the made not we costs into input really And above We've broadly. was cement assumptions And that about everything in the compared our showing in bit right a prices now, original seeing energy did else we're the diesel. be on QX, assumptions. Now would price X% really prior our running year. bake increases obviously in that little at our the And hedged we're

far very So obviously our something watching inflation stable fairly that we’re that closely.


question Next Pettinari from with Anthony comes Citi.

Anthony Pettinari

Last quarter, to I potential factor. wind as a pointed swing think of nonrepeat the you farm work

broadly. that full you're if to in ultimately And just year the kind of more factors to circling any other you that higher any maybe trends there Just end back end then wondering of get the or end call might swing that you'd seeing range? Are market? lower guidance the out

Anne Noonan

Yes, Anthony.

the for question. thanks So

than of some prior quarter that because had X we the of if wind we had for So But that business. did nice obviously, farm this you call wind a we was farm impacted work, we In look quarter. negatively frankly, XXXX number projects a the mix, basis, year, farm actually is price on this as out last are more that. wind saying QX, that had where pricing

as So construct. little of year, we're we in we the And type this win basically we And the job we is that. said, a bumpy. and work it's watching bid and

Longer aggregates see our as moving So term, good continue our forward. use we nice a look to this and very of we work business and at that.

at and at and it assumptions guidance say of for some talked -- minor within we've lower If as we demand the guidance. energy. drive On will decreased look would or weather year our alternative pricing pricing the volume perspective, impacts. midpoint more low be a our low-end maybe are the to driven that what So by full end, and we look would typically would we

On have to address question, across of our of mid-digit there lines an maybe the higher business. the business. to also And assumption all across your though, of of having all lines growth of end, specifically volume we would single prices

lowest we guidance. think we you get quarter the the But be past guidance year, So our of kind thoughtful and that guys give they'd we how about about procedure when kind swing be the number. factors as continue very as we our of of of assess to will range year


RBC question Dahl next comes from Your Capital Markets. Mike with

Mike Dahl

And I on divestiture to kind the follow-up of wanted plan.

time, high progressed. from the thinking receive more question publicly have the of, level have discussions to out the market, two of the how to that had I went you ago. some of so details guess view I'm to additional as And some assets? the into bucket to Has investors started ultimately proactive of that that inquiries months since you And standpoint with My And you've changed inbound it's whether assets, in fall of more inquiry. extent your number discussions, specifics which assets of on around your reverse any proceeds might divestitures? the or is,

Anne Noonan

question. Yes, for your Mike, thanks

And quoted proceeds So $XXX XX our with you're a at out that to do estimate absolutely We number million with assets. over XX I time. best correct. in think, come

in would that. some I say, XX saying respect view. assets divest. process starting. a we this changed actually at have though, are identified some think we've lot we set really moves are in completed your really that this this we XX But Horizon QX, and I I and discussed, regret that where point completed March hasn't that one past our X, it very inbounds as we announced XX for meeting was several clear that, no With our in inbounds, get that we and to we question we're us this first to because more As to have on of actually just are another that one, that received around

perfectly an asset today our at And optimize our seem long-term in look future it. belong continually and may not in portfolio that will good We the portfolio may portfolio.

stakeholder increase their they for the base. So strong to I overall believe value how can constantly portfolio see businesses and their shareholders assess

will acquisitions. continue and make as look at change as we firm decisions we update or you divestitures to So around we that and


And our Revich Goldman next from Sachs. comes question Jerry with

Jerry Revich

get for easier on the do seems it second I'm in X-year coming tough and like course you a volume the on wondering the aggregates touch stack cadence comps of business the the were if you Optically, basis can pretty in comps of the quarter. business, quarter. your over off

over the understand April how So just the the flow on look comment just help I'm course us if wondering you quarter cadence. could and to on touch demand of

Anne Noonan

XXXX, that. QX, and into got at last QX end strong we we hit were the had as somewhat of volumes demand impact into also of robust XXXX as we very our COVID year. cadence, into continued volume here because right we different in we and that went our Well, had QX. we in Obviously, XXXX record did But were comps

getting So very actually we're positive our and in from migration of level about from we're spend. fundamental the that public growth

there's really that. wouldn't beyond say I cadence a So

of clearly We a not volume. go continue. -- us the see level demand residential, strong. that will nothing into much say for we QX, bigger on comp that continuing public we spending, And demand As our have to

that pretty impact. in we said, numbers But to with volume correct, overall, QX. funding, I pointing thing a little bit at something That you're cadence But funding, shape levels out of respect bumpiness levels, in we happen our be have provide I perspective drastic say nonres, may would to a only be normal that As I high in expect is of would right good tougher might public at farms wind the from would it comp steady us. Jerry, which for a times. call it that a would should not unless now, is and


will turn over for now the concludes remarks. question-and-answer I Anne Noonan closing This session. to back our call

Anne Noonan

operator, I'd with and all joining you us. thank Thank three like you, you for to leave messages.

in at coalescing paving concrete, thereof. combination all in and aggregates, First, require and right ready right some form mixed are of a asphalt the place is time. the key and/or cement, Summit Summit’s markets Megatrends

simplify we quarter strategic culture responsibility goals. be and business are we our a trajectory be of are across not lead the Elevate that geography. due a any linear on sustainable call. good focused day. innovation upward our is Summit It for drive creating success relentlessly And to Second, market every standardize will or in to social transparent our excellence may towards priorities, That nature Thank signs also dependent on you, have concludes of will a and long-term growth finally, and to Summit but of early one not and that we the seeing execution. and


concludes call. participating. Thank conference this gentlemen, for and Ladies you today's

may You now disconnect.