1
Legal Disclaimer
Forward-Looking Statements
This presentation 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,” “outlook,” “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 Materials, Inc.’s (“Summit Inc.”) Annual Report on Form 10-K for the fiscal year ended December 28, 2019
and Quarterly Report on Form 10-Q for the quarterly period ended March 28, 2020, each as filed with the SEC, and any factors discussed in the section entitled “Risk Factors” in any of our subsequently filed SEC filings as
filed with the Securities and Exchange Commission (the “SEC”), and the following: the impact of the coronavirus (“COVID-19”) pandemic on our business, or any similar crisis; 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 particularly if
such are not augmented by federal funding or if the federal government fails to act on a highway infrastructure bill; 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 or future litigation; rising prices for
commodities, labor and other production and delivery inputs as a result of inflation 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 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 electricity and the petroleum-based resources that we use, including diesel fuel and liquid asphalt; climate change and climate change legislation
or regulation; unexpected operational difficulties; interruptions in our information technology systems and infrastructure, including cybersecurity and data leakage; and potential labor disputes, strikes and other forms of work
stoppage and 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 presentation. 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.
Non-GAAP Financial Measures
Included in this presentation are certain non-GAAP financial measures, such as Adjusted EBITDA, Adjusted EBITDA Margin, Further Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Diluted Net Income(Loss0,
Adjusted (Diluted) Earnings Per Share, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Net Debt, Net Leverage, Free Cash Flow, designed to complement the financial information presented in accordance
with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in
accordance with GAAP. Please refer to the appendix of this presentation for a reconciliation of the historical non-GAAP financial measures included in this presentation to the most directly comparable financial measures
prepared in accordance with GAAP.
Reconciliations of the non-GAAP measures used in this presentation are included or described in the tables attached to the appendix. 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.
2
Conference Call Agenda
Safe Harbor Disclosure
Karli Anderson, VP Investor Relations
Business Update
Tom Hill, CEO
Financial Update
Brian Harris, CFO
Management Outlook
Tom Hill, CEO
Q&A
Construction is essential in all of
SUM’s markets
3
▪ Safety and distancing protocols still in place and vital to our operations
▪ COVID-19 precautions are an integral part of our safety program
▪ Working with stakeholders to enhance operations under these new working conditions
❖ Steady demand in our largest markets offset lower demand in some smaller markets
❖ Variable costs adjusted to flex with demand
Q2 Executive Summary
▪ Record Q2 Net Revenue, Operating Income, Net Income and Adjusted EBITDA
❖ July market conditions thus far resemble Q2
❖ July close of Multisources acquisition, a 100% pure play aggregates business
▪ We continue to assess potential future impacts from COVID-19 economic disruption
❖ Summit is not providing Adjusted EBITDA guidance at this time
❖ We are maintaining 2020 capex guidance of $145-$160MM
▪ Successfully withstanding challenges thanks to our unique value proposition
❖ Locally-managed companies that can act quickly and leverage economies of scale
❖ Serving private end markets that are structurally sound and not oversupplied
❖ Supporting essential repair/replace work for public infrastructure
❖ $580MM available Q2 liquidity; pro-forma net of Multisources is ~$490MM
4
Q2 Executive Summary
✓ Residential demand in our markets generally strong; unemployment impacts not seen except in NV
✓ Non-residential growth fueled by windfarms and distribution centers; some airport and retail projects are delayed
✓ Cement volumes expected to be lower in 2H 20 than in 2H 19 on challenging conditions in southern markets
✓ Public activity resilient in TX, KS, UT, VA, CO; challenging in KY, NC, BC
5
2Q Highlights & Early 3Q Indicators
2Q20 Results compared to 2Q19:
Early 3Q indicators:
✓ Net Revenue of $575.2MM, up 4.1%; Net Income of $57.1MM, up 57.2%
✓ Adjusted EBITDA of $160.2 million, up 14.1%
✓ Pricing growth in Cement(+1.2%), Asphalt(+2.3%), Ready Mix(+5.5%)
✓ Aggregates pricing (-0.2%) lapped Q219 comp of +8% (flood work in MO)
✓ 2Q Aggregates margin expanded 250bps to 63.9%(1,2) 1H 20 Mix-adjusted aggregates pricing is +2.5%
(1) See reconciliations of Adjusted Cash Gross Profit Margin in the appendix
(2) Adjusted Cash Gross Profit Margin is defined as Adjusted Cash Gross Profit divided by Net Revenue. In this presentation of the data, Adjusted Cash Gross Profit is calculated by line of
business, less net cost of revenue by line of business
▪ 2Q20 Cement Adjusted EBITDA flat vs 2Q19
❖ Gross margin rebounded by 500 bps to 50.8% on normal weather and shipping conditions
❖ ~$4MM 2Q impact from down time at Green America Recycling; expect similar impact in 3Q 20
❖ Volume declined by ~6% and price increased by 1.2% vs 2Q 19
▪ Price increases enacted June 1, thus not entirely reflected 2Q 20 reported average selling price
▪ Production continues to flex with demand: 2H 20 volume expected to be lower than in 2H 19
❖ PCA 2020 forecasts range from a 5% increase to a 14% decrease in states on the river market
6
Cement UpdateCement was ~22% of SUM’s 2019 Adjusted EBITDA
35.5 35.7
0.8 1.7 4.1
2.5 0.1 5.2 3.8
0
10
20
30
40
Q2 '19 Volume, net ofPurchased
Price Green America Plant costs 2019 Floodcosts
Distributioncosts
Other Q2 '20
Adj
uste
d E
BIT
DA
($M
M)
Cement Segment Bridge 2Q19 to 2Q20
PublicPrivate
7
% of Total ’19 Revenue(1)
Private vs. Public (%)(1)
Current Public Activity
(July 2020)
Texas Missouri
(1) For the fiscal year 2019.
Current Private Activity
(July 2020)
Residential/Non-Residential
Geographic Business Overview38%/31%/31% Public/Res/Non-Res, Mostly Rural & Exurban
Top 5 State Markets = 64% of Total Company Revenue in FY ’19 and 40% of our Total Company Public Infrastructure Work
Kansas Utah
23%13% 12% 8%
40%60% 46%54%
32%
68%
Kentucky
70%
30%
22% 10% 7%
TXDOT awarding jobs
and backlog has not
been interrupted. expect
to receive full Prop 7
allocation in FY21
Houston new res permit
volume +7.6% in May
after a pause in April; non
res resilient
Res & non res bidding
slower in Permian and N.
Texas
State highway fund not
impacted by plan to
address 2021 budget
shortfall; LTM fuel taxes
flat y/y through May
Non-res windfarm
projects throughout
the state; res activity
steady
Lettings activity is
normal; 2020 Backlog
in place. 2nd lowest
unemployment in the
US(May)
DOT steady for now; Less
flood repair work than 2019;
Fuel consumption -4.7%
y/y in May
Non-res windfarm and
warehouse work
continues, residential
steady
Limited letting activity in July;
road fund impacts less severe
than originally estimated
Stable res and non res
activity, small proportion
of KY business
Res activity higher
than in the last couple
of years;.
Non res has backlog
through fall ‘20
25%
75%
8
Outlook by End-MarketDifficult to predict impact of stimulus, employment trends and federal funding
▪ NAHB/Wells Fargo Housing Market Index (HMI) rebounded to pre-pandemic levels in July 1
▪ Mortgage rates at all-time lows2
▪ Buyer traffic and pricing strong in many of our markets, particularly Salt Lake City and Houston
▪ Official unemployment rate of 11.1%3 ; economists expect year-end unemployment in the 11-14% range4
▪ May architectural billings improved relative to April, but are still significantly lower than a year ago5
▪ Windfarms, distribution centers are being completed and new projects are emerging in the Midwest
▪ Several airport expansion projects have been delayed or deferred
▪ We focus on low-rise commercial that follows residential, avoiding volatile high-rise construction
▪ States evaluating future transportation budgets; funding sources and tax revenue impacts vary by state
▪ Both House INVEST Act & Senate’ ATIA Act would increase federal funding for infrastructure
▪ Current FAST Act expires September 30, 2020; continuing resolution likely if no other action
(1) National Association of Home Builders, July 16, 2020.
(2) Freddie Mac Primary Mortgage Market Survey, July 9, 2020.
(3) US Bureau of Labor Statistics, July 2, 2020.
(4) Wall Street Journal Economic Survey May 2020 of 75 economists.
(5) AIA Architectural Billings Index May 2020.
Residential
Non-
Residential
Public
Multisources Sand & Gravel Acquisition
(1) As of July 2020
(2) Line of business split on an EBITDA basis; end market split is an internal estimate
Line of Business(1,2)
End Markets(1,2)
Materials
Products
Private
Public
100%
80%
20%
▪ Investment Highlights
❖ $92MM investment at attractive valuation
❖ Strategically core acquisition → pure-play aggregates in high-growth metro area
❖ Excellent fit with existing footprint
❖ Multiple synergy opportunities
❖ Creates leading aggregates supplier in the Houston market
❖ Transaction closed July 10th
Aggregates
Ready Mix Concrete
Multisources
Color Legend
Shape Legend
Alleyton
9
10
Greenfields
Projects
▪ 5 Aggregates Greenfields completed
❖ Utah, Texas (3 projects), Georgia
❖ 5 Aggregates Greenfields under development
❖ Georgia (2), Carolinas(2), Missouri
▪ Estimated future Greenfields spending:
❖ ~$50-$60MM in 2020
❖ ~$35-$45MM in 2021
▪ ~450 million tons of reservesRecently acquired Aggregates property in Missouri
$0
$10
$20
$30
$40
$50
$0
$50
$100
$150
$200
$250
2014-2018 2019 2020 2021 2022 2023 2024
Greenfields Estimated CapEx1 and Illustrative Adjusted EBITDA2 ($MM)
CapEx Incremental Incremental Adjusted EBITDA
~$45MM Adjusted
EBITDA per year,
run rate by 2024
Cap
Ex
($M
M)
Adjusted E
BIT
DA
($MM
)
Recently commissioned crushing plant, Georgia, October 2019
(1) Does not include deferred consideration.
(2) Adjusted EBITDA contribution by year is a illustrative.
11
Financial Update
Brian Harris, CFO
Capital Structure Overview
12
(2)
(2)
(2)
(2)
1 Revolver Capacity post-usage for (undrawn) Letters of Credit is $329.0M as of 3/27/20. If more than $100 million 6.125% notes are outstanding in April 2023, revolver will
mature in April 2023.
($ in Millions) Q2 '19 Q2 '20
Cash $67.7 $253.4
Debt:
Revolver1-- --
Senior Secured Term Loans $625.8 $621.1
Capital Leases and Other $58.9 $57.4
Senior Secured Debt $684.8 $678.5
Acq.-related Liab. $71.2 $42.3
5.125% Senior Notes $300.0 $300.0
6.5% Senior Notes $300.0 $300.0
6.125% Senior Notes $650.0 $650.0
Senior Unsecured Debt $1,321.2 $1,292.3
Total Debt $2,005.9 $1,970.8
Net Senior Secured Debt $617.1 $425.1
Net Total Debt $1,938.3 $1,717.4
Est. Annual Cash Int. Run Rate $113.9 $97.3
LTM Further Adj. EBITDA $411.9 $491.1
Net Senior Secured Leverage 1.5x 0.9x
Total Net Leverage 4.7x 3.5x
▪ Strongest 2Q-ended financial position in
Company history
❖ Leverage ratio improved to 3.5x at quarter
end Q2 20 from 4.7x at Q2 19
❖ $60.2MM of free cash flow at 2Q end
benefitted from improved working capital,
lower A/R
❖ Over $580MM available liquidity at 2Q end;
$490MM pro-forma liquidity net of
Multisources acquisition, which closed in July
12
13
Cap Ex Update
Cash position reflects seasonality of the business; current liquidity of ~$582.5 MM is the highest ever for 2Q
Enhancing Liquidity Through EBITDA Recovery & Disciplined Use of Capital
2020 Cap Ex Guidance Range $145-$160MM
$145
$50$60
$160
Total - Low End Greenfields Low Greenfields High Total - High End
Estimated Greenfields Cap Ex
is embedded within
Total Cap Ex Range
Greenfields: Deferred ~$10 million to future periods; not
expected to change estimated of 2024 EBITDA contribution
Maintenance: Deferred ~$20-$35 million of maintenance and
discretionary projects
Other considerations: $102MM spent YTD, ~$45MM
estimated to spend in 3Q, ~$10MM to spend in in 4Q
2020 Cap Ex Review Considerations
$US
D M
illio
ns
$0
$200
$400
$600
$800
Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Pro-Formanet of
Multisourcesacquisition
Cash Revolver Capacity
14
Net Revenue Bridge
Net Revenue by Reporting Segment – Q2 2019 vs. Q2 2020 ($MM)
$552.6
$575.2
$25.7
$5.8 $8.9
Q2 2019 West East Cement Q2 2020
15
Adjusted EBITDA Bridge
Q2 2019 Adjusted EBITDA vs Q2 2020 Adjusted EBITDA ($MM)
$140.5
$160.2
$24.1
$0.2 $1.0 $3.5
Q2 2019 West East Cement Corp Q2 2020
16
Key Performance IndicatorsGAAP Financial Metrics
Net Revenue ($MM) Operating Income ($MM)
Net Income - Summit Inc. ($MM) Basic Earnings Per Share(1)
(1) Diluted share count includes all outstanding Class A common stock and LP Units not held by Summit Inc.
$552.6 $575.2
$858.5 $917.6
2Q19 2Q20 1H19 1H20
$80.4
$100.1
$22.8
$58.3
2Q19 2Q20 1H19 1H20
$36.4
$57.1
$(32.4)
$12.1
2Q19 2Q20 1H19 1H20
$0.32
$0.50
2Q19 2Q20
17
Key Performance IndicatorsNon-GAAP Financial Metrics
Adj. Cash Gross Profit ($MM)
& Margin (%)(1,2)
Adj. Diluted Earnings Per Share (1,4)
Adj. EBITDA ($MM)
& Margin (%)(1,3)
(1) See appendix for reconciliation of these non-GAAP metrics to the most comparable GAAP metrics
(2) Adjusted Cash Gross Profit Margin is defined as Adjusted Cash Gross Profit divided by Net Revenue
(3) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Net Revenue
(4) Adjusted diluted share count includes all outstanding Class A common stock and LP Units not held by Summit Inc.
Adj. Diluted Net Income ($MM)(1)
32.9%
$195.4 $220.9
$261.0
$301.9
2Q19 2Q20 1H19 1H20
35.4%38.4%
$140.5 $160.2
$147.1
$176.6
2Q19 2Q20 1H19 1H20
$36.0
$58.9
$(20.9)
$2.6
2Q19 2Q20 1H19 1H20
30.4% 17.1%
19.2%
25.4%27.9%
$0.31
$0.50
2Q19 2Q20
18
Average Selling Price, Excluding Acquisitions
(year-over-year % change)
Average Selling Price, Including Acquisitions
(year-over-year % change)
Sales Volume, Excluding Acquisitions
(year-over-year % change)
Sales Volume, Including Acquisitions
(year-over-year % change)
Aggregates Cement
Aggregates Cement Ready-Mix
ConcreteAsphalt Aggregates Cement
Ready-Mix
Concrete Asphalt
1H19 1H20
Aggregates Cement
Price and Volume Analysis
7.4%
0.0%0.6%1.6%
5.3%
2.2%
-6.5%
1.6%
5.5%
-4.1%
7.9%7.2%
8.5%
0.0%0.6%1.6%
12.6%
2.2%
-5.9%
2.9%5.5%
-4.1%
7.9% 7.2%
19
Adjusted Cash Gross Margin ScorecardMargins expanding in Aggregates, Products and Services
Aggregates Business
Adjusted Cash Gross Profit Margin (%)(1,2)
Cement Segment
Adjusted Cash Gross Profit Margin (%)(1,2)
Products Business
Adjusted Cash Gross Profit Margin (%)(1,2)
Services Business
Adjusted Cash Gross Profit Margin (%)(1,2)
(1) See reconciliations of Adjusted Cash Gross Profit Margin in the appendix
(2) Adjusted Cash Gross Profit Margin is defined as Adjusted Cash Gross Profit divided by Net Revenue. In this presentation of the data, Adjusted Cash Gross Profit is
calculated by line of business, less net cost of revenue by line of business
61.4% 63.9%
54.0%57.0%
2Q19 2Q20 1H19 1H20
22.3%25.4%
19.0%
22.7%
2Q19 2Q20 1H19 1H20
23.0%
31.1%
21.5%
27.1%
2Q19 2Q20 1H19 1H20
45.8%50.8%
32.7% 30.5%
2Q19 2Q20 1H19 1H20
20
Management Outlook
Tom Hill, CEO
$360
$380
$400
$420
$440
$460
$480
$500
Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
Last 12 Months’ Adjusted EBITDA
21
Management Outlook
▪ Positioned for stability today and growth when conditions return to normal:
✓ Strong financial position, flexible cost structure, and entrepreneurial culture
✓ Acquisition of synergistic, 100% aggregates business
✓ Greenfields aggregates projects accretive to EBITDA with discretion in spending today
✓ Bi-partisan support for public highway work with more aid possibly flowing to states
Catalysts to watch for
▪ Progress on the INVEST act, ATIA Act,
infrastructure stimulus and/or FAST act
reauthorization or continuing resolution
▪ Housing inventory in our markets
▪ Growth in low rise non-residential
22
APPENDIX
23
Aggregates Pricing Has Proven to be Resilient Throughout Periods of Demand CyclicalityConsumption and Consumption per Capita Remain Below Long-Term Trendlines and Price has Increased 70 of last 75 Years (1)
EXHIBIT 1Historical Industry Dynamics—Consumption & Price
Cement Outlook Supported by Below Trendline Consumption, High Cost of Entry and Demand Nearing CapacityConsumption and Consumption per Capita Remain Below Long-Term Trendlines(1)
(1) Source: USGS and PCA.
-
2.0
4.0
6.0
8.0
10.0
12.0
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1903
1906
1909
1912
1915
1918
1921
1924
1927
1930
1933
1936
1939
1942
1945
1948
1951
1954
1957
1960
1963
1966
1969
1972
1975
1978
1981
1984
1987
1990
1993
1996
1999
2002
2005
2008
2011
2014
2017
Consumption 116 Yr. Consumption Trendline Consumption per Capita 116 Yr. Consumption per Capita Trendline
-
0.10
0.20
0.30
0.40
0.50
0.60
-
25,000
50,000
75,000
100,000
125,000
150,000
1900
1903
1906
1909
1912
1915
1918
1921
1924
1927
1930
1933
1936
1939
1942
1945
1948
1951
1954
1957
1960
1963
1966
1969
1972
1975
1978
1981
1984
1987
1990
1993
1996
1999
2002
2005
2008
2011
2014
2017
Consumption 118 Yr. Consumption Trendline Consumption per Capita 118 Yr. per Capita Trendline
24
EXHIBIT 2Residential Housing Inventory
• Mortgage rates are at all-time lows
• Permits, starts and sales remain below historical averages on a national level
• Home ownership remains below the historical average
Fundamentals Are In Place for Extended, Steady Growth Once Economic Conditions Stabilize(1)
Estimated Months of Supply In SUM Metro Markets1
Every SUM market had below-average inventory through June 2020
(1) Source: JBREC, July 13, 2020; US National Reflects May 2020, all others reflect June2020
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Dallas, TX Fort Worth, TX Houston, TX Kansas City, MO-KS Las Vegas, NV Lexington, KY Minneapolis, MN-WI Salt Lake City, UT US National (May2020)
Wilmington, NC
June 2020 Inventory Average Inventory
25
EXHIBIT 3Positive Outlook For Infrastructure Funding
(1) Source: FHWA, ARBTA, Bloomberg.
(2) ARTBA - 2020 Transportation Construction Market Forecast, January 2020
Federal Highway Program Could See a ~5% CAGR, 2017-2022
($B) FAST Act Authorization and Additional Appropriations(1)
U.S. Construction Spending Forecast On Highway, Street, Bridge & Tunnel Related Work
Spending Rebounded in 2019 with Stable Growth Forecasted through 2023(2)
$43.3 $48.3 $49.4 $49.6
$54.4 $55.5
FY '17 Enacted FY'18 Enacted FY '19 FAST Act + AdditionalAppropriations
FY' 20 FAST Act + AdditionalAppropriations
FY '21 Projected (ARTBA) FY '22 Projected(ARTBA)
$89.4 $96.9 $98.9 $94.5 $92.3 $101.7 $106.9 $110.0 $113.3 $115.8
$52.3 $57.4 $61.6 $65.2 $67.5
$69.1 $71.8 $73.8 $75.4 $77.0
2014 2015 2016 2017 2018E 2019F 2020F 2021F 2022F 2023F
Public Highway, Steet, Bridge & Tunnel Private Highway, Street & Bridge
$141.7
$154.3
+8.9%
$160.5
+4.0%
$156.7
-.05%
$159.8
+.1%
$170.8
+6.9%
$178.7
+4.6%
$183.8
+2.9%
$188.7
+2.7%
$192.8
+2.2%
EXHIBIT 4Reconciliation of Operating Income to Adjusted Cash Gross Profit
26
(1) Adjusted Cash Gross Profit Margin defined as Adjusted Cash Gross Profit divided by Net Revenue
June 27, June 29, June 27, June 29,
Reconciliation of Operating Income to Adjusted Cash Gross Profit 2020 2019 2020 2019
($ in thousands)
Operating income $ 100,060 $ 80,422 $ 58,340 $ 22,751
General and administrative expenses 66,544 60,961 136,768 128,571
Depreciation, depletion, amortization and accretion 53,928 53,625 105,706 109,013
Transaction costs 319 390 1,072 698
Adjusted Cash Gross Profit (exclusive of items shown separately) $ 220,851 $ 195,398 $ 301,886 $ 261,033
Adjusted Cash Gross Profit Margin (exclusive of items shown separately) (1) 38.4% 35.4% 32.9% 30.4%
Six months endedThree months ended
27
EXHIBIT 5Reconciliation of Gross Revenue to Net Revenue by LOB
Volumes
Aggregates 14,901 $ 11.12 $ 165,648 $ (35,659) $ 129,989
Cement 654 116.29 76,106 (2,813) 73,293
Materials $ 241,754 $ (38,472) $ 203,282
Ready-mix concrete 1,443 116.41 167,964 (82) 167,882
Asphalt 1,755 59.48 104,373 (179) 104,194
Other Products 97,974 (85,072) 12,902
Products $ 370,311 $ (85,333) $ 284,978
Elimination/Delivery Revenue Pricing by Product
Three months ended June 27, 2020
Gross Revenue Intercompany Net
Volumes
Aggregates 26,093 $ 11.00 $ 287,121 $ (60,971) $ 226,150
Cement 954 116.26 110,864 (4,708) 106,156
Materials $ 397,985 $ (65,679) $ 332,306
Ready-mix concrete 2,686 115.31 309,773 (187) 309,586
Asphalt 2,163 58.99 127,616 (228) 127,388
Other Products 167,820 (143,533) 24,287
Products $ 605,209 $ (143,948) $ 461,261
Elimination/Delivery RevenuePricing by Product
Six months ended June 27, 2020
Gross Revenue Intercompany Net
EXHIBIT 6Reconciliation of Net Income (Loss) to Further Adjusted EBITDA
28
(1) Last twelve month (“LTM”) information corresponding to fiscal years (i.e., the periods ended December 28, 2019, December 29, 2018, and December 30, 2017, and reflects our audited historical results for such fiscal years presented in accordance with U.S. GAAP. Information presented for other LTM periods (i.e., June 27, 2020, March 28, 2020, September 28, 2019, June 29, 2019, March 30, 2019, September 29, 2018, June 30, 2018, and March 31, 2018) reflect unaudited trailing four quarter financial information calculated by starting with the results from the most recent audited fiscal year included in such LTM period and then (x) adding quarterly information for subsequent fiscal quarters and (y) subtracting quarterly information for the corresponding prior year period. For example, LTM June 27, 2020 has been calculated by starting with the data from the twelve months ended December 28, 2019 and then adding data for the six months ended June 27, 2020, followed by subtracting data for the six months ended June 29, 2019. This presentation is not in accordance with U.S. GAAP. However, we believe this information is useful to investors as we use it to evaluate our financial performance for ongoing planning purposes, including a continuous assessment of our financial performance in comparison to budgets and internal projections. We also use such LTM financial data to test compliance with covenants under our senior secured credit facilities. This presentation has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Please see our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q for the relevant periods for the historical amounts used to calculate the LTM information presented.
(2) EBITDA for certain completed acquisitions, net of dispositions, is pro forma for all acquisitions completed as of the date listed. (3) Further Adjusted EBITDA is calculated using trailing four quarter financial data to test compliance with covenants under our senior secured credit facilities.(4) Adjusted EBITDA Margin defined as Adjusted EBITDA as a percentage of net revenue(5) Net Leverage defined as net debt divided by Further Adjusted EBITDA
($ in millions) June 27, June 29, June 27, June 29, June 27, March 28, December 28, September 28, June 29, March 30, December 29, September 29, June 30, March 31, December 30,
2020 2019 2020 2019 2020 2020 2019 2019 2019 2019 2018 2018 2018 2018 2017
Net income (loss) 59$ 38$ 12$ (34)$ 107$ 86$ 61$ 6$ 22$ 21$ 36$ 99$ 110$ 125$ 126
Interest expense 26 29 53 59 110 114 117 118 118 118 117 115 115 112 109
Income tax (benefit) expense 17 17 (6) (11) 23 22 17 78 53 48 60 229 (290) (299) (284)
Depreciation, depletion, amortization, and accretion expense 54 54 106 109 214 213 217 218 217 214 205 197 192 187 180
IPO/ Legacy equity modification costs - - - - - - - - - - - - - - -
Loss on debt financings - - - 15 - - 15 15 15 15 - 5 5 5 5
Gain on sale of business - - - - - - - - (12) (12) (12) (12) - - -
Goodwill impairment - - - - - - - - - - - - - - 0
Tax receivable agreement expense - - - - 16 16 16 (23) (23) (23) (23) (232) 269 271 271
Acquisition transaction expenses - - 1 1 3 3 2 2 2 3 4 5 6 8 8
Non-cash compensation 5 5 10 11 20 19 20 21 22 23 25 27 26 25 21
Other (1) (3) 1 (3) (2) (2) (4) (1) (2) - (6) (6) (5) (6) -
Adjusted EBITDA 160$ 140$ 177$ 147$ 491$ 471$ 461$ 434$ 412$ 407$ 406$ 427$ 428$ 428$ 436$
EBITDA for certain completed acquisitions (2) - - - - - 1 2 6 11 22 17
Further Adjusted EBITDA (3) 491$ 471$ 461$ 434$ 412$ 408$ 408$ 433$ 439$ 450$ 453$
Net Revenue 575$ 553$ 918$ 859$ 2,090$ 2,067$ 2,031$ 1,969$ 1,929$ 1,925$ 1,909$ 1,905$ 1,854$ 1,783$ 1,752$
Adjusted EBITDA Margin (4) 27.9% 25.4% 19.2% 17.1% 23.5% 22.8% 22.7% 22.0% 21.4% 21.2% 21.3% 22.4% 23.1% 24.0% 24.9%
Net Debt 1,717$ 1,774$ 1,667$ 1,820$ 1,938$ 1,940$ 1,828$ 1,845$ 1,866$ 1,760$ 1,551$
Total Net Leverage (5) 3.5x 3.8x 3.6x 4.2x 4.7x 4.8x 4.5x 4.3x 4.3x 3.9x 3.4x
Three months ended Six months ended Last Twelve Months Ended (1)
EXHIBIT 7Non-GAAP Reconciliation of Long-Term Debt to Net Debt
29
Reconciliation of Long-term Debt to Net Debt
($ in millions) Q2'20 Q1'20 Q4'19 Q3'19 Q2'19 Q1'19 Q4'18 Q3'18 Q2'18 Q1'18 Q4'17
Long-term debt, including current portion 1,871$ 1,873$ 1,874$ 1,876$ 1,876$ 1,877$ 1,831$ 1,831$ 1,832$ 1,834$ 1,835$
Acquisition related liabilities 42 42 48 71 71 72 77 37 38 60 64
Finance leases and other 57 58 56 56 59 56 49 42 46 44 36
Less: Cash and cash equivalents (253) (199) (311) (183) (68) (65) (129) (65) (50) (178) (384)
Net debt 1,717$ 1,774$ 1,667$ 1,820$ 1,938$ 1,940$ 1,828$ 1,845$ 1,866$ 1,760$ 1,551$
EXHIBIT 8Non-GAAP Reconciliation of Net Income (Loss) to Adj. EBITDA
30(1) Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue
Reconciliation of Net Income (Loss) to Adjusted
EBITDA by Segment
($ in thousands)
Net income (loss) $ 57,040 $ 32,206 $ 29,386 $ (59,745) $ 58,887
Interest expense (income) (709) (433) (3,116) 29,866 25,608
Income tax expense 1,054 (36) — 16,163 17,181
Depreciation, depletion and amortization 22,050 21,014 9,291 992 53,347
EBITDA $ 79,435 $ 52,751 $ 35,561 $ (12,724) $ 155,023
Accretion 115 380 86 — 581
Transaction costs — — — 319 319
Non-cash compensation — — — 4,892 4,892
Other (607) 253 — (229) (583)
Adjusted EBITDA $ 78,943 $ 53,384 $ 35,647 $ (7,742) $ 160,232
Adjusted EBITDA Margin (1) 26.4% 26.6% 47.1% 27.9%
East Cement Corporate ConsolidatedWest
Three months ended June 27, 2020
Reconciliation of Net Income (Loss) to Adjusted
EBITDA by Segment
($ in thousands)
Net income (loss) $ 30,739 $ 35,175 $ 27,917 $ (55,841) $ 37,990
Interest expense 751 1,047 (2,345) 29,948 29,401
Income tax expense (benefit) 777 64 — 15,866 16,707
Depreciation, depletion and amortization 22,784 19,540 9,719 992 53,035
EBITDA $ 55,051 $ 55,826 $ 35,291 $ (9,035) $ 137,133
Accretion 140 300 150 — 590
Loss on debt financings — — — — —
Transaction costs 11 — — 379 390
Non-cash compensation — — — 4,699 4,699
Other (382) (1,714) — (250) (2,346)
Adjusted EBITDA $ 54,820 $ 54,412 $ 35,441 $ (4,207) $ 140,466
Adjusted EBITDA Margin (1) 20.1% 27.9% 41.9% 25.4%
CementEast
Three months ended June 29, 2019
Corporate ConsolidatedWest
EXHIBIT 9Non-GAAP Reconciliation of Net Income (Loss) to Adj. EBITDA
31(1) Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue
Reconciliation of Net Income (Loss) to Adjusted
EBITDA by Segment
($ in thousands)
Net loss $ 57,538 $ 21,139 $ 17,108 $ (83,624) $ 12,161
Interest expense (income) (1,287) (1,002) (6,292) 62,007 53,426
Income tax expense (benefit) 587 (165) — (6,142) (5,720)
Depreciation, depletion and amortization 43,734 41,734 17,099 1,981 104,548
EBITDA $ 100,572 $ 61,706 $ 27,915 $ (25,778) $ 164,415
Accretion 231 756 171 — 1,158
Transaction costs — — — 1,072 1,072
Non-cash compensation — — — 9,797 9,797
Other 608 495 — (899) 204
Adjusted EBITDA $ 101,411 $ 62,957 $ 28,086 $ (15,808) $ 176,646
Adjusted EBITDA Margin (1) 21.0% 19.6% 24.7% 19.2%
Six months ended June 27, 2020
West East Cement Corporate Consolidated
Reconciliation of Net Income (Loss) to Adjusted
EBITDA by Segment
($ in thousands)
Net income (loss) $ 21,187 $ 16,808 $ 17,349 $ (88,855) $ (33,511)
Interest expense (income) 1,494 2,055 (4,664) 60,621 59,506
Income tax expense (benefit) 334 118 — (11,782) (11,330)
Depreciation, depletion and amortization 46,580 39,445 19,873 1,944 107,842
EBITDA $ 69,595 $ 58,426 $ 32,558 $ (38,072) $ 122,507
Accretion 269 606 296 — 1,171
Loss on debt financings — — — 14,565 14,565
Transaction costs 11 — — 687 698
Non-cash compensation — — — 10,605 10,605
Other (757) (1,378) — (357) (2,492)
Adjusted EBITDA $ 69,118 $ 57,654 $ 32,854 $ (12,572) $ 147,054
Adjusted EBITDA Margin (1) 15.7% 19.5% 27.0% 17.1%
Six months ended June 29, 2019
West East Cement Corporate Consolidated
EXHIBIT 10Non-GAAP Reconciliation of Net Income(Loss) to Adj. Diluted Net Income (Loss)
32
(In thousands, except share and per share amounts)
Net income (loss) attributable to Summit Materials, Inc. $ 57,064 $ 0.49 $ 36,410 $ 0.32 $ 12,085 $ 0.10 $ (32,362) $ (0.28)
Adjustments:
Net income (loss) attributable to noncontrolling
interest 1,823 0.01 1,580 0.01 76 — (1,149) (0.01)
Adjustment to acquisition deferred liability — — (2,000) (0.02) — — (2,000) (0.02)
Loss on debt financings — — — — — — 14,565 0.13
Adjusted diluted net income (loss) before tax related
adjustments 58,887 0.50 35,990 0.31 12,161 0.10 (20,946) (0.18)
Changes in unrecognized tax benefits — — — — (9,537) (0.08) — —
Adjusted diluted net income (loss) $ 58,887 $ 0.50 $ 35,990 $ 0.31 $ 2,624 $ 0.02 $ (20,946) $ (0.18)
Weighted-average shares:
Basic Class A common stock 114,111,204 112,070,009 113,856,657 111,940,844
LP Units outstanding 3,053,115 3,418,018 3,103,672 3,422,318
Total equity units 117,164,319 115,488,027 116,960,329 115,363,162
Per Equity Unit Net Loss Per Equity UnitNet Income Per Equity Unit Net Income Per Equity Unit Net Income
Three months ended Six months endedReconciliation of Net Income (Loss) Per Share to
Adjusted Diluted EPS June 29, 2019 June 27, 2020 June 29, 2019June 27, 2020
EXHIBIT 11Non-GAAP Reconciliation of Adj. Cash Gross Profit by LOB
33
(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 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 defined as cement adjusted
cash gross profit divided by cement segment net revenue.
($ in thousands)
Segment Net Revenue:
West $ 299,024 $ 273,306 $ 483,516 $ 441,535
East 200,554 194,738 320,543 295,153
Cement 75,662 84,547 113,587 121,853
Net Revenue $ 575,240 $ 552,591 $ 917,646 $ 858,541
Line of Business - Net Revenue:
Materials
Aggregates $ 129,989 $ 128,650 $ 226,150 $ 216,522
Cement (1) 73,293 77,799 106,156 110,298
Products 284,978 261,188 461,261 412,458
Total Materials and Products 488,260 467,637 793,567 739,278
Serv ices 86,980 84,954 124,079 119,263
Net Revenue $ 575,240 $ 552,591 $ 917,646 $ 858,541
Line of Business - Net Cost of Revenue:
Materials
Aggregates $ 46,923 $ 49,652 $ 97,186 $ 99,542
Cement 34,891 39,112 71,542 70,463
Products 212,661 203,035 356,588 333,890
Total Materials and Products 294,475 291,799 525,316 503,895
Serv ices 59,914 65,394 90,444 93,613
Net Cost of Revenue $ 354,389 $ 357,193 $ 615,760 $ 597,508
Line of Business - Adjusted Cash Gross Profit (2):
Materials
Aggregates $ 83,066 $ 78,998 $ 128,964 $ 116,980
Cement (3) 38,402 38,687 34,614 39,835
Products 72,317 58,153 104,673 78,568
Serv ices 27,066 19,560 33,635 25,650
Adjusted Cash Gross Profit $ 220,851 $ 195,398 $ 301,886 $ 261,033
Adjusted Cash Gross Profit Margin (2)
Materials
Aggregates 63.9% 61.4% 57.0% 54.0%
Cement (3) 50.8% 45.8% 30.5% 32.7%
Products 25.4% 22.3% 22.7% 19.0%
Serv ices 31.1% 23.0% 27.1% 21.5%
Total Adjusted Cash Gross Profit Margin 38.4% 35.4% 32.9% 30.4%
Three months ended
June 27, June 29,
2020 2019
June 29,
Six months ended
2020 2019
June 27,
EXHIBIT 12Free Cash Flow
34
($ in thousands)
Net income (loss) $ 58,887 $ 37,990 $ 12,161 $ (33,511)
Non-cash items 74,346 71,751 110,013 107,830
Net income (loss) adjusted for non-cash items 133,233 109,741 122,174 74,319
Change in working capital accounts (32,601) (63,117) (60,473) (58,371)
Net cash provided by operating activities 100,632 46,624 61,701 15,948
Capital expenditures, net of asset sales (40,448) (38,173) (99,117) (97,564)
Free cash flow $ 60,184 $ 8,451 $ (37,416) $ (81,616)
June 27, June 29,
2020 2019 2020 2019
June 27, June 29,
Six months endedThree months ended
35
Summit Materials, LLC Financials
Capital Structure Slide
($ in Millions) Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Int. Rates Maturity
Cash $67.7 $182.6 $311.3 $199.1 $253.4 0.36% n/a
Debt:
Revolver1-- -- -- -- -- 3.45% Feb-2024
Senior Secured Term Loans $625.8 $625.8 $624.3 $622.7 $621.1 2.17% Nov-2024
Capital Leases and Other $58.9 $56.4 $56.4 $58.0 $57.4 5.50% Various
Senior Secured Debt $684.8 $682.2 $680.7 $680.7 $678.5 2.46%
Acq.-related Liab. $71.2 $70.5 $47.9 $41.7 $42.3 10.00% Various
5.125% Senior Notes $300.0 $300.0 $300.0 $300.0 $300.0 5.125% Jun-2025
6.5% Senior Notes $300.0 $300.0 $300.0 $300.0 $300.0 6.50% Mar-2027
6.125% Senior Notes $650.0 $650.0 $650.0 $650.0 $650.0 6.125% Jul-2023
Senior Unsecured Debt $1,321.2 $1,320.5 $1,297.9 $1,291.7 $1,292.3 6.11%
Total Debt $2,005.9 $2,002.8 $1,978.5 $1,972.4 $1,970.8 4.85%
Net Senior Secured Debt $617.1 $499.6 $369.4 $481.6 $425.1
Net Total Debt $1,938.3 $1,820.2 $1,667.2 $1,773.3 $1,717.4
Est. Annual Cash Int. Run Rate $113.9 $111.5 $107.4 $102.4 $97.3
LTM Further Adj. EBITDA $411.9 $434.0 $461.5 $471.3 $491.1
Net Senior Secured Leverage 1.5x 1.2x 0.8x 1.0x 0.9x
Total Net Leverage 4.7x 4.2x 3.6x 3.8x 3.5x
1 Revolver Capacity post-usage for (undrawn) Letters of Credit is $329.1M as of 6/27/20
EXHIBIT 13Capital Structure