How Summit Materials fared in the first quarter

Summit Materials experienced good first-quarter gains in its aggregate business, as net revenues increased $21.2 million to $117.4 million compared with the prior-year period.

Aggregate adjusted cash gross profit margin increased to 41.8 percent in the first quarter. That figure stood at 38.1 percent in the first quarter of 2020.

Additionally, Summit says aggregate sales volumes were up 20.7 percent in the quarter due to organic growth in the company’s West and East segments. Volumes increased in the Intermountain West, Virginia and British Columbia, Canada, but they were partially offset by slight decreases in Kansas and Missouri, where wind farm and flood repair volumes in the first quarter of 2020 did not repeat themselves.

Summit’s average selling prices for aggregate was down 1.9 percent in the first quarter, primarily due to product mix in Kansas and north Texas. On an organic basis, the company says average selling prices for aggregate remained flat.

Anne Noonan, CEO of Summit Materials, offered some commentary to reflect on the company’s first quarter.

“After a strong finish to 2020, Summit has accelerated into 2021 with record first-quarter adjusted EBITDA (earnings before interest, tax, depreciation and amortization),” Noonan says. “Migration activity continues to favor our rural and exurban markets, and most of the state Departments of Transportation that we serve are on solid financial footing.”

According to Noonan, Summit completed one divestiture and made progress on others.

“We remain focused on sustainable growth with investments in greenfields and end markets that are underpinned by strong growth fundamentals,” she says.