Summit Materials Inc (SUM) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.29 million in the quarter, against a net profit of $23.36 million in the last year period. On the other hand, adjusted net income for the quarter stood at $21.06 million, or $0.21 a share compared with $34.44 million or $0.35 a share, a year ago. Revenue during the quarter grew 5.36 percent to $422.97 million from $401.46 million in the previous year period. Gross margin for the quarter expanded 265 basis points over the previous year period to 35.20 percent. Total expenses were 88.51 percent of quarterly revenues, up from 83.06 percent for the same period last year. That has resulted in a contraction of 544 basis points in operating margin to 11.49 percent.
Operating income for the quarter was $48.60 million, compared with $67.99 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $102.02 million compared with $90.33 million in the prior year period. At the same time, adjusted EBITDA margin improved 162 basis points in the quarter to 24.12 percent from 22.50 percent in the last year period.
“Our strong full-year performance further validates the unique competitive advantages afforded by our integrated, materials-based model,” stated Tom Hill, chief executive officer of Summit Materials. “Our leading positions in well-structured, early-cycle markets drove sustained margin expansion throughout all lines of business in 2016, as both gross margin and Adjusted EBITDA margin increased to record levels. Adjusted EBITDA exceeded the high-end of our guided range for the full-year, given sustained growth in materials pricing, contributions from completed acquisitions and improved cost efficiencies.”
Operating cash flow improves significantly Summit Materials Inc has generated cash of $244.86 million from operating activities during the year, up 149.34 percent or $146.66 million, when compared with the last year. The company has spent $470.65 million cash to meet investing activities during the year as against cash outgo of $584.35 million in the last year. It has incurred net capital expenditure of $136.62 million on net basis during the year, up 80.14 percent or $60.78 million from year ago.
Cash flow from financing activities was $182.71 million for the year, down 72.33 percent or $477.63 million, when compared with the last year.
Cash and cash equivalents stood at $143.39 million as on Dec. 31, 2016, down 23.08 percent or $43.01 million from $186.40 million on Jan. 02, 2016.
Working capital declines Summit Materials Inc has witnessed a decline in the working capital over the last year. It stood at $244.41 million as at Dec. 31, 2016, down 5.28 percent or $13.61 million from $258.02 million on Jan. 02, 2016. Current ratio was at 2.02 as on Dec. 31, 2016, down from 2.20 on Jan. 02, 2016.
Debt moves up Summit Materials Inc has witnessed an increase in total debt over the last one year. It stood at $1,520.96 million as on Dec. 31, 2016, up 18.81 percent or $240.80 million from $1,280.15 million on Jan. 02, 2016. Total debt was 54.68 percent of total assets as on Dec. 31, 2016, compared with 53.42 percent on Jan. 02, 2016. Debt to equity ratio was at 1.77 as on Dec. 31, 2016, up from 1.67 as on Jan. 02, 2016. Interest coverage ratio deteriorated to 1.94 for the quarter from 3.04 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
