UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 8, 2013
SUMMIT MATERIALS, LLC
(Exact name of registrant as specified in its charter)
Delaware | 333-187556 | 24-4138486 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
1550 Wynkoop Street, 3rd Floor Denver, Colorado |
80202 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code: (303) 893-0012
2900 K Street NW, Suite 100, Harbourside North Tower Building, Washington, D.C. 20007
(Former Name or Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On August 8, 2013, Summit Materials, LLC (the Company) issued a press release announcing its financial results for the quarter ended June 29, 2013. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information being furnished pursuant to this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other document filed by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. |
Description | |
99.1 | Press Release of Summit Materials, LLC dated August 8, 2013. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SUMMIT MATERIALS, LLC | ||||||
Date: August 8, 2013 | ||||||
By: | /s/ John Murphy | |||||
Name: | John Murphy | |||||
Title: | Interim Chief Financial Officer |
Exhibit 99.1
Summit Materials, LLC
August 8, 2013
Summit Materials, LLC Reports Second Quarter 2013 Results
| Operating margin increases 190 bps to 5.4% |
| 23.9% Adjusted EBITDA growth to $32.9 million |
| Increase in average selling price, offset by volume declines |
DENVER, CO - Summit Materials, LLC (Summit Materials) today reported financial results for the second quarter ended June 29, 2013. Notable items for the quarter include (all comparisons, unless noted, are with the prior years second quarter):
| Revenues of $254.8 million, slight decline of 0.3%. |
| Operating earnings up $4.7 million driven by improved pricing and completion of low margin projects. |
| Year-to-date pricing increased while volumes declined among the aggregate, asphalt and ready mix products. |
| Year-to-date cement volumes increased 6.3% from sales to a new, high-volume customer. |
On April 1, 2013, Summit Materials acquired certain assets of Lafarge in Wichita, Kansas and membership interests of Westroc near Salt Lake City, Utah. These acquisitions and related transaction fees were funded through borrowings under our senior secured revolving credit facility.
Tom Hill, the CEO of Summit Materials, stated, Summit Materials will continue to pursue acquisitions in regions of the country that allow for synergies with our current operations and areas that have promising outlooks. The market overall is showing signs of improvement in the residential and private non-residential sectors. Demand in Texas, Colorado and Utah seem poised to lead a recovery.
Financial Results
Mr. Hill continued, This winters inclement weather led to a slight decline in our revenue as compared to the first half of 2012. All of our operations were impacted by adverse weather, but the construction and paving services were most directly affected. Pricing increases across our aggregate, asphalt and ready mix products somewhat offset these declines, which is a positive indication of the opportunity in the business once demand recovers.
This quarter our operating margin was 5.4%, an improvement from 3.5% last year. The increased margin was largely driven by the realization of price improvement and the completion of low margin projects, including grading and structural work in the West region.
Central Region Results
Revenue in the Central region increased 7.9% this quarter. Revenue contribution from the Lafarge acquisition offset the severe winter that lowered activity and resulted in decreased aggregate, asphalt and ready mix volumes. From a shift in product mix, asphalt prices decreased 12.4% in the first half of 2013 compared to 2012. Cement volumes increased; however, the additional sales were to a new, high-volume customer at a reduced price.
West Region Results
The West regions revenue declined 7.1% this quarter due to colder, wetter weather, as compared to 2012, and a strategic business decision to reduce grading and structural projects. These declines were partially offset by the Westroc acquisition. Even though we had fewer sales in the region, our Adjusted EBITDA increased $5.8 million this quarter compared to the second quarter in 2012. This inverse relationship was primarily driven by higher prices in aggregates, asphalt and ready mix and improved performance in Texas due to the completion of low margin grading and structural work.
East Region Results
This quarter the East regions revenue and Adjusted EBITDA increased $1.7 million and $1.6 million, respectively. With low margin legacy contracts behind us and the disposal of non-core businesses, the East region was able to realign its focus on its primary operations. Operating margin in the East region improved 180 basis points due to improved pricing and cost savings initiatives implemented in 2012, including organizational restructuring.
Backlog
Compared to this time last year, our aggregate backlog is up 36% with Texas, Missouri and Kansas particularly busy. Asphalt backlogs are down slightly, but this is primarily due to a large, low-margin highway project in Austin, Texas that we inherited from an acquisition and was completed in late 2012. Excluding this project, our asphalt backlog is actually up 9%. Our ready mix and paving and construction backlogs are slightly ahead of last year. In addition, the margin imbedded in the paving and construction backlog has improved as we have exited certain non-core, low-margin businesses, added Mr. Hill.
Liquidity and Capital Resources
Our primary sources of liquidity include cash on-hand, cash provided by our operations and amounts available for borrowing under our credit facilities. As of June 29, 2013, we had $7.7 million in cash and working capital of $124.9 million as compared to cash and working capital of $27.4 million and $114.4 million at December 29, 2012, respectively. We calculate working capital as current assets less current liabilities, excluding the current portion of long term debt and outstanding borrowings on our revolver facility.
Given the seasonality of our business, we typically experience significant fluctuations in working capital needs and balances throughout the year; these amounts are converted to cash as our operating cycle is completed each fiscal year. Our working capital requirements generally increase during the first half of the year as we build-up inventory and focus on repair and maintenance and other set-up costs for the upcoming season. Working capital levels then decrease as we wind down the construction season and enter the winter months, which is when we see significant inflows of cash from the collection of receivables during the peak months of the season.
Free cash outflow utilization, a non-GAAP measure defined as operating cash outflow less net capital expenditures, was $81.2 million and $50.2 million in the six month periods ended June 29, 2013 and June 30, 2012, respectively. Free cash outflow in 2013, as compared to 2012, was impacted by an additional $15.7 million of interest payments related to the timing and terms of our January 2012 refinancing and increased investment of $11.7 million in capital projects. In 2013, we have continued to develop an underground mine and storage dome at our cement plant in Hannibal, Missouri and are bringing a new hot mix asphalt plant on-line in Austin, Texas.
Our growth strategy contemplates future acquisitions for which we believe we have sufficient capital through committed funds from our sponsors, Blackstone Capital Partners V L.P. and Silverhawk Summit, L.P., and our borrowing capacity. Our remaining borrowing capacity on our revolving credit facility, net of $14.5 million of outstanding letters of credit, as of June 29, 2013 was $30.5 million, which is below normal levels as a result of funding the 2013 acquisitions with the revolver.
About Summit Materials, LLC
We are a leading, vertically-integrated, geographically-diverse, heavy-side building materials company. We supply aggregates, cement and related downstream products such as ready mixed concrete, asphalt paving mix, concrete products and paving and related construction services to a variety of end-uses in the U.S. construction industry, including public infrastructure projects, as well as private residential and non-residential construction. Summit has executed 27 transactions worth an enterprise value greater than $1.0 billion. Our nine operating companies make up our three distinct geographic regions that span 20 states and 23 metropolitan statistical areas.
For more information about Summit Materials, LLC refer to the Companys website at http://www.summit-materials.com. The information contained on our website is not incorporated herein by reference.
Conference Call Information
The Company will conduct a conference call to discuss the financial results, forward-looking information and other matters at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time) on Thursday, August 8, 2013. The conference call will be recorded and archived on the Companys website after the call.
The conference call may be accessed at:
Webcast for Q2 2013 Summit Materials Earnings Call
Conference ID: | 4633538 | |
Domestic: | 1-877-941-4774 | |
International: | 1-480-629-9760 |
Non-GAAP Financial Measures
Our chief operating decision maker evaluates the performance of our segments and allocates resources to them based on several factors including a measure we call segment profit, or Adjusted EBITDA by segment. We define Adjusted EBITDA as net income (loss) before income (loss) from discontinued operations, income tax expense (benefit), interest expense and depreciation, depletion, amortization and accretion. Accretion expense is recognized on our asset retirement obligations and reflects the time value of money. Given that accretion is similar in nature to interest expense, it is treated consistently with interest expense in determining Adjusted EBITDA. Adjusted EBITDA is determined before considering the loss from discontinued operations as results from discontinued operations is not viewed by management as part of our core business when management assesses the performance of our segments or allocation of resources. Therefore, it is not included in Adjusted EBITDA.
Adjusted EBITDA reflects an additional way of viewing aspects of our business that, when viewed with our GAAP results and the accompanying reconciliations to GAAP financial measures included in the tables below, may provide a more complete understanding of factors and trends affecting our business. However, it should not be construed as being more important than other comparable GAAP measures and must be considered in conjunction with the GAAP measures. In addition, non-GAAP financial measures are not standardized; therefore, it may not be possible to compare such financial measures with other companies non-GAAP financial measures having the same or similar names. We strongly encourage investors to review our consolidated interim financial statements in their entirety and not rely on any single financial measure.
The reconciliation to net income (loss) is included in the tables attached to this press release.
Cautionary Statement Regarding Forward-Looking Statements
This report contains 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, should, seeks, intends, plans, estimates, projects or anticipates or similar expressions that concern our strategy, plans or intentions. Any and 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 and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those expected. 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 impact 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 achieved. 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 our prospectus dated June 10, 2013 (the Prospectus), filed with the Securities and Exchange Commission (the SEC) in accordance with Rule 424(b) of the Securities Act of 1933, as amended, on June 10, 2013 and other filings with the SEC.
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.
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 otherwise required by law.
SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
June 29, | December 29, | |||||||
2013 | 2012 | |||||||
(unaudited) | (audited) | |||||||
Assets | ||||||||
Current assets: |
||||||||
Cash |
$ | 7,655 | $ | 27,431 | ||||
Accounts receivable, net |
119,557 | 100,298 | ||||||
Costs and estimated earnings in excess of billings |
24,356 | 11,575 | ||||||
Inventories |
110,153 | 92,977 | ||||||
Other current assets |
11,996 | 10,068 | ||||||
|
|
|
|
|||||
Total current assets |
273,717 | 242,349 | ||||||
Property, plant and equipment, less accumulated depreciation, depletion and amortization (June 29, 2013 - $183,094 and December 29, 2012 - $156,313) |
858,519 | 813,607 | ||||||
Goodwill |
192,505 | 179,120 | ||||||
Intangible assets, less accumulated amortization (June 29, 2013 - $1,712 and December 29, 2012 - $1,354) |
15,595 | 8,606 | ||||||
Other assets |
36,429 | 37,531 | ||||||
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|
|
|
|||||
Total assets |
$ | 1,376,765 | $ | 1,281,213 | ||||
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|
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Liabilities, Redeemable Noncontrolling Interest and Members Interest | ||||||||
Current liabilities: |
||||||||
Current portion of debt |
$ | 108,165 | $ | 4,000 | ||||
Current portion of acquisition-related liabilities |
11,115 | 9,525 | ||||||
Accounts payable |
75,828 | 61,634 | ||||||
Accrued expenses |
56,263 | 49,822 | ||||||
Billings in excess of costs and estimated earnings |
5,583 | 6,926 | ||||||
|
|
|
|
|||||
Total current liabilities |
256,954 | 131,907 | ||||||
Long-term debt |
660,241 | 635,843 | ||||||
Acquisition-related liabilities |
28,052 | 23,919 | ||||||
Other noncurrent liabilities |
81,133 | 84,266 | ||||||
|
|
|
|
|||||
Total liabilities |
1,026,380 | 875,935 | ||||||
|
|
|
|
|||||
Redeemable noncontrolling interest |
23,150 | 22,850 | ||||||
Members interest: |
||||||||
Members equity |
485,698 | 484,584 | ||||||
Accumulated deficit |
(150,362 | ) | (94,085 | ) | ||||
Accumulated other comprehensive loss |
(9,130 | ) | (9,130 | ) | ||||
|
|
|
|
|||||
Members interest |
326,206 | 381,369 | ||||||
Noncontrolling interest |
1,029 | 1,059 | ||||||
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|
|
|||||
Total members interest |
327,235 | 382,428 | ||||||
|
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|
|
|||||
Total liabilities, redeemable noncontrolling interest and members interest |
$ | 1,376,765 | $ | 1,281,213 | ||||
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|
SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
(In thousands)
Three Months Ended | Six Months Ended | |||||||||||||||
June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
|||||||||||||
Revenue: |
||||||||||||||||
Product |
$ | 169,041 | $ | 166,436 | $ | 237,181 | $ | 233,996 | ||||||||
Service |
85,801 | 89,120 | 124,490 | 141,443 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenue |
254,842 | 255,556 | 361,671 | 375,439 | ||||||||||||
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|
|||||||||
Cost of revenue (exclusive of items shown separately below): |
||||||||||||||||
Product |
115,960 | 123,655 | 181,932 | 186,967 | ||||||||||||
Service |
65,883 | 71,126 | 95,984 | 118,576 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of revenue |
181,843 | 194,781 | 277,916 | 305,543 | ||||||||||||
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|
|
|
|||||||||
General and administrative expenses |
39,392 | 34,923 | 73,395 | 65,917 | ||||||||||||
Depreciation, depletion, amortization and accretion |
18,894 | 17,240 | 36,026 | 33,603 | ||||||||||||
Transaction costs |
982 | (403 | ) | 2,464 | 1,532 | |||||||||||
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|
|||||||||
Operating income (loss) |
13,731 | 9,015 | (28,130 | ) | (31,156 | ) | ||||||||||
Other (income) expense, net |
(269 | ) | 587 | 163 | 941 | |||||||||||
(Gain) loss on debt financings |
| (879 | ) | 3,115 | 8,160 | |||||||||||
Interest expense |
14,482 | 14,713 | 27,849 | 28,826 | ||||||||||||
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|
|||||||||
Loss from continuing operations before taxes |
(482 | ) | (5,406 | ) | (59,257 | ) | (69,083 | ) | ||||||||
Income tax (benefit) expense |
(726 | ) | 215 | (3,347 | ) | (1,963 | ) | |||||||||
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Income (loss) from continuing operations |
244 | (5,621 | ) | (55,910 | ) | (67,120 | ) | |||||||||
Income (loss) from discontinued operations |
26 | (2,221 | ) | (97 | ) | (1,724 | ) | |||||||||
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Net income (loss) |
270 | (7,842 | ) | (56,007 | ) | (68,844 | ) | |||||||||
Net income (loss) attributable to noncontrolling interest |
1,939 | (175 | ) | (1,518 | ) | (519 | ) | |||||||||
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Net loss attributable to member of Summit Materials, LLC |
$ | (1,669 | ) | $ | (7,667 | ) | $ | (54,489 | ) | $ | (68,325 | ) | ||||
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SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Consolidated Statements of Cash Flows
(In thousands)
Six months ended | ||||||||
June 29, | June 30, | |||||||
2013 | 2012 | |||||||
Cash flow from operating activities: |
||||||||
Net loss |
$ | (56,007 | ) | $ | (68,844 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation, depletion, amortization and accretion |
39,033 | 37,512 | ||||||
Share-based compensation expense |
1,114 | 1,419 | ||||||
Deferred income tax benefit |
(2,969 | ) | (540 | ) | ||||
Loss on property, plant and equipment disposals and revaluations |
5,574 | 340 | ||||||
Loss on debt financings |
2,989 | 8,160 | ||||||
Other |
755 | 1,194 | ||||||
(Increase) decrease in operating assets, net of acquisitions: |
||||||||
Account receivable |
(11,610 | ) | (23,788 | ) | ||||
Inventories |
(13,222 | ) | (6,044 | ) | ||||
Costs and estimated earnings in excess of billings |
(13,688 | ) | (10,247 | ) | ||||
Other current assets |
(491 | ) | (1,701 | ) | ||||
Other assets |
(118 | ) | 2,226 | |||||
Increase (decrease) in operating liabilities, net of acquisitions: |
||||||||
Accounts payable |
6,691 | 15,736 | ||||||
Accrued expenses |
(4,722 | ) | 16,787 | |||||
Billings in excess of costs and estimated earnings |
(1,493 | ) | 1,133 | |||||
Other liabilities |
404 | (1,796 | ) | |||||
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|
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Net cash used in operating activities |
(47,760 | ) | (28,453 | ) | ||||
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Cash flow from investing activities: |
||||||||
Acquisitions, net of cash acquired |
(60,779 | ) | (42,933 | ) | ||||
Purchases of property, plant and equipment |
(40,528 | ) | (24,669 | ) | ||||
Proceeds from the sale of property, plant and equipment |
7,086 | 2,946 | ||||||
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|
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Net cash used for investing activities |
(94,221 | ) | (64,656 | ) | ||||
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Cash flow from financing activities: |
||||||||
Net proceeds from debt issuance |
186,974 | 693,434 | ||||||
Payments on long-term debt |
(61,343 | ) | (618,441 | ) | ||||
Payments on acquisition-related liabilities |
(3,426 | ) | (2,670 | ) | ||||
Other |
| (701 | ) | |||||
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|
|
|
|||||
Net cash provided by financing activities |
122,205 | 71,622 | ||||||
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|
|
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Net decrease in cash |
(19,776 | ) | (21,487 | ) | ||||
Cash beginning of period |
27,431 | 42,790 | ||||||
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|
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Cash end of period |
$ | 7,655 | $ | 21,303 | ||||
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SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Financial Highlights
(In thousands)
Three months ended | Six months ended | |||||||||||||||
June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
|||||||||||||
Revenue by product:* |
||||||||||||||||
Aggregates |
$ | 47,439 | $ | 42,735 | $ | 68,304 | $ | 66,681 | ||||||||
Asphalt |
55,857 | 62,960 | 75,208 | 82,166 | ||||||||||||
Ready mix |
33,279 | 30,942 | 46,412 | 46,537 | ||||||||||||
Cement |
21,474 | 21,096 | 30,914 | 31,377 | ||||||||||||
Construction and paving |
125,536 | 130,750 | 171,946 | 184,087 | ||||||||||||
Other |
(28,743 | ) | (32,927 | ) | (31,113 | ) | (35,409 | ) | ||||||||
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|
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Total revenue |
$ | 254,842 | $ | 255,556 | $ | 361,671 | $ | 375,439 | ||||||||
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|
* | Revenue by product includes intercompany sales transferred at market value. The elimination of intercompany transactions is included in Other |
Three months ended | Six months ended | |||||||||||||||
June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
|||||||||||||
Revenue by region: |
||||||||||||||||
Central region |
$ | 92,780 | $ | 86,006 | $ | 128,680 | $ | 128,497 | ||||||||
West region |
119,656 | 128,867 | 179,719 | 196,125 | ||||||||||||
East region |
42,406 | 40,683 | 53,272 | 50,817 | ||||||||||||
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|
|
|
|
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|
|
|||||||||
Total revenue |
$ | 254,842 | $ | 255,556 | $ | 361,671 | $ | 375,439 | ||||||||
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|
Six Months Ended June 29, 2013 |
Six Months Ended June 30, 2012 |
Percentage Change in | ||||||||||||||||||||||
Volume (1) (in thousands) |
Average Selling Price (2) |
Volume (1) (in thousands) |
Average Selling Price (2) |
Volume | Average Selling Price |
|||||||||||||||||||
Aggregate |
7,542 | $ | 9.06 | 7,556 | $ | 8.45 | (0.2 | %) | 7.2 | % | ||||||||||||||
Asphalt |
1,366 | 54.65 | 1,670 | 49.23 | (18.2 | %) | 11.0 | % | ||||||||||||||||
Ready mix |
500 | 92.76 | 512 | 90.91 | (2.3 | %) | 2.0 | % | ||||||||||||||||
Cement |
407 | 80.61 | 383 | 86.18 | 6.3 | % | (6.5 | %) |
(1) | Volumes are shown in tons for aggregates, asphalt and cement and in cubic yards for ready mix. |
(2) | Average selling prices are shown on a per ton basis for aggregates, asphalt and cement and on a per cubic yard basis for ready mix. |
SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Non-GAAP Financial Measures
(In thousands)
The tables below reconcile our net income (loss) to Adjusted EBITDA and illustrate Adjusted EBITDA by segment for the three and six month periods ended June 29, 2013 and June 30, 2012.
Three Months Ended | Six Months Ended | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA | June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
||||||||||||
(in thousands) | ||||||||||||||||
Net income (loss) |
$ | 270 | $ | (7,842 | ) | $ | (56,007 | ) | $ | (68,844 | ) | |||||
Income (benefit) tax expense |
(726 | ) | 215 | (3,347 | ) | (1,963 | ) | |||||||||
Interest expense |
14,482 | 14,713 | 27,849 | 28,826 | ||||||||||||
Depreciation, depletion and amortization |
18,714 | 17,098 | 35,674 | 33,354 | ||||||||||||
Accretion |
180 | 142 | 352 | 249 | ||||||||||||
(Income) loss from discontinued operations |
(26 | ) | 2,221 | 97 | 1,724 | |||||||||||
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Adjusted EBITDA |
$ | 32,894 | $ | 26,547 | $ | 4,618 | $ | (6,654 | ) | |||||||
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Adjusted EBITDA by Segment | ||||||||||||||||
(in thousands) | ||||||||||||||||
Central |
$ | 25,136 | $ | 23,901 | $ | 19,182 | $ | 22,617 | ||||||||
West |
6,807 | 980 | 85 | (9,650 | ) | |||||||||||
East |
7,155 | 5,575 | (2,377 | ) | (8,573 | ) | ||||||||||
Corporate |
(6,204 | ) | (3,909 | ) | (12,272 | ) | (11,048 | ) | ||||||||
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Adjusted EBITDA |
$ | 32,894 | $ | 26,547 | $ | 4,618 | $ | (6,654 | ) | |||||||
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The following table sets forth a reconciliation of free cash outflow for the six month period ended June 29, 2013 and June 30, 2012.
Six Months Ended | ||||||||
June 29, 2013 |
June 30, 2012 |
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Net loss |
$ | (56,007 | ) | $ | (68,844 | ) | ||
Non- cash items |
46,496 | 48,085 | ||||||
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Loss, net of non-cash items |
(9,511 | ) | (20,759 | ) | ||||
Change in working capital accounts |
(38,249 | ) | (7,694 | ) | ||||
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Net cash used in operating activities |
(47,760 | ) | (28,453 | ) | ||||
Capital expenditures, net of asset sales |
(33,442 | ) | (21,723 | ) | ||||
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Free cash flow |
$ | (81,202 | ) | $ | (50,176 | ) | ||
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SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Financial Highlights
(In millions)
The following is a summary of our credit statistics:
June 29, 2013 | December 29, 2012 | |||||||
Cash & Cash Equivalents |
$ | 7.7 | $ | 27.4 | ||||
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Debt |
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Revolving Credit Facility ($150M Capacity) |
$ | 105.0 | $ | | ||||
Senior Secured Term Loan |
421.0 | 398.0 | ||||||
Capital Leases |
5.4 | 3.1 | ||||||
Other Debt |
3.3 | 0.6 | ||||||
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Total Senior Secured Debt |
$ | 534.7 | $ | 401.7 | ||||
Senior Notes |
250.0 | 250.0 | ||||||
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Total Debt |
$ | 784.7 | $ | 651.7 | ||||
Leverage Ratio Calculations |
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Senior Secured Net Debt |
$ | 527.0 | $ | 374.3 | ||||
Total Net Debt |
$ | 777.0 | $ | 624.3 | ||||
Pro Forma Adjusted EBITDA |
$ | 128.2 | $ | 120.3 | ||||
Senior Secured Net Leverage |
4.11 | x | 3.1 | x | ||||
Covenant Senior Secured Net Leverage Limit |
4.75 | x | 4.75 | x | ||||
Total Net Leverage |
6.1 | x | 5.2 | x |
Contact: | info@summit-materials.com | |
303-893-0012 |