Summit Materials Inc (SUM) saw its loss widen to $52.44 million, or $0.50 a share for the quarter ended Apr. 01, 2017. In the previous year period, the company reported a loss of $21.12 million, or $0.42 a share. Revenue during the quarter grew 24.48 percent to $284.28 million from $228.38 million in the previous year period. Gross margin for the quarter expanded 88 basis points over the previous year period to 23.46 percent. Operating margin for the quarter stood at negative 11.53 percent as compared to a negative 12.90 percent for the previous year period.
Operating loss for the quarter was $32.78 million, compared with an operating loss of $29.46 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.63 million compared with $8.41 million in the prior year period. At the same time, adjusted EBITDA margin improved 111 basis points in the quarter to 4.79 percent from 3.68 percent in the last year period.
“Our business performed ahead of expectations during the first quarter, as organic growth in materials sales volumes and average selling prices contributed to strong year-over-year increases in gross margins and Adjusted EBITDA,” stated Tom Hill, chief executive officer of Summit Materials. “Demand within our core early-cycle residential and commercial construction markets continues to accelerate, while a combination of federal and state level funding for critical infrastructure projects remains a significant opportunity for us, particularly in Texas where a combination of FAST Act, Proposition 1 and Proposition 7 funding combine to support robust multi-year investment in public infrastructure.”
Operating cash flow remains negative
Summit Materials Inc has spent $45.54 million cash to meet operating activities during the quarter as against cash outgo of $41.96 million in the last year period. The company has spent $158.09 million cash to meet investing activities during the quarter as against cash outgo of $282.22 million in the last year period. It has incurred capital expenditure of $46.73 million on net basis during the quarter, up 41.16 percent or $13.62 million from year ago period.
Cash flow from financing activities was $216.24 million for the quarter, down 5.80 percent or $13.32 million, when compared with the last year period.
Cash and cash equivalents stood at $156.11 million as on Apr. 01, 2017, up 265.79 percent or $250.27 million from $94.16 million on Apr. 02, 2016.
Working capital increases sharply
Summit Materials Inc has recorded an increase in the working capital over the last year. It stood at $281.59 million as at Apr. 01, 2017, up 31.55 percent or $67.53 million from $214.06 million on Apr. 02, 2016. Current ratio was at 2.16 as on Apr. 01, 2017, up from 2.04 on Apr. 02, 2016.
Cash conversion cycle (CCC) has decreased to 48 days for the quarter from 89 days for the last year period. Days sales outstanding went down to 48 days for the quarter compared with 55 days for the same period last year.
Days inventory outstanding has decreased to 39 days for the quarter compared with 78 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 45 for the same period last year.
Debt remains almost stable
Total debt of Summit Materials Inc remained almost stable for the quarter at $1,519.56 million, when compared with the last year period. Total debt was 51.13 percent of total assets as on Apr. 01, 2017, compared with 58.31 percent on Apr. 02, 2016. Debt to equity ratio was at 1.45 as on Apr. 01, 2017, down from 2.09 as on Apr. 02, 2016.
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