2Q17 Results Overview Investor Presentation August 2, 2017
Legal Disclaimer Forward-Looking Statements This presentation 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,” “trends,” “plans,” “estimates,” “projects” or “anticipates” or similar expressions that concern our strategy, plans, expectations or intentions. Any and all statements made relating to the macroeconomic outlook for our markets, potential acquisition activity, our estimated and projected earnings, margins, costs, expenditures, cash flows, sales volumes 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 Annual Report on Form 10-K filed with the SEC on February 28, 2017. Such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. 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. Non-GAAP Financial Measures Included in this presentation are certain non-GAAP financial measures, such as Adjusted EBITDA, Further Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Earnings Per Share, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Net Debt, Net Leverage and 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. 1
Conference Call Agenda Introduction Noel Ryan, IR Business Update Tom Hill, CEO Financial Update Brian Harris, CFO Conclusion & Outlook Tom Hill, CEO Q&A 2
Business Update Tom Hill, CEO 3
Executive Summary 2Q17 Results | 2017 Outlook Second Quarter 2017 | Results – Net Revenue +15.9% Y/Y; Operating Income +75.6% Y/Y; Net Income +142.2% Y/Y – Adj. Cash Gross Profit +17.5% Y/Y Adj. Cash Gross Profit Margin +50 bps y/y to 39.3% (1) – Adj. EBITDA +17.9% y/y to $135.2 million; Adj. EBITDA Margin +50 bps y/y to 28.3% (2) – Organically generated Adj. EBITDA contributed 33% of the y/y overall Adj. EBITDA growth in 2Q17 – Strong organic volume growth across all LOB; organic aggregates ASP down y/y due to sales mix – Completed four acquisitions for combined invested capital of $130 million (3) Full-Year 2017 | Outlook – Increasing FY17 Adj. EBITDA guidance by $10 million to a range of $440 to $455 million – Reiterate FY17 Gross CAPEX guidance to be in a range of $140 to $160 million – Increasing FY17 acquired EBITDA guidance by $10 million to be in a range of $50 to $70 million – More than 20 potential transactions currently under review as of Aug. 2, 2017 – Anticipate net leverage of 3.0x to 3.5x by year-end 2017, subject to pace of acquisitions (1) Adjusted Cash Gross Profit Margin defined as Adjusted Cash Gross Profit divided by Net Revenue (2) Adjusted EBITDA margin defined as Adjusted EBITDA divided by Net Revenue (3) Companies acquired since May 2017 include Ready Mix of Somerset, Great Southern Ready-Mix, Northwest Ready Mix and Glasscock Company 4
Key Financial Metrics Y/Y Growth In Net Revenue, Operating and Net Income Operating Income ($MM) Net Revenue ($MM) & Margin (%) (1) 17.2% $1,605.0 $1,406.5 $82.4 11.4% $46.9 $478.4 $412.6 2Q16 2Q17 LTM 2Q16 LTM 2Q17 2Q16 2Q17 Basic Earnings Per Share Reported Net Income Attributable to Summit, Inc. ($MM) $50.0 $0.47 +274% $0.21 +124% y/y $13.4 y/y 2Q16 2Q17 2Q16 2Q17 (1) Operating Margin defined as Operating Income divided by Net Revenue 5
Key Financial Metrics (Non-GAAP) Strong Cash Generation, Margin Expansion, Income Growth Adjusted Cash Gross Profit ($MM) Adjusted EBITDA ($MM) & Margin (%) (1,2) & Margin (%) (1,3) 37.2% 24.7% 35.7% 23.7% $597.4 $397.1 $502.3 $333.9 28.3% 39.3% 27.8% 38.8% $135.2 $188.2 $114.7 $160.1 2Q16 2Q17 LTM 2Q16 LTM 2Q17 2Q16 2Q17 LTM 2Q16 LTM 2Q17 Adjusted Diluted Net Income ($MM) (1) Adjusted Diluted Earnings Per Share (1,4) $53.6 $0.48 +16% y/y $46.2 +7% $0.45 y/y 2Q16 2Q17 2Q16 2Q17 (1) See appendix for reconciliation of these non-GAAP metrics to the most comparable GAAP metrics (2) Adjusted Cash Gross Profit Margin defined as Adjusted Cash Gross Profit divided by Net Revenue (3) Adjusted EBITDA margin defined as Adjusted EBITDA divided by Net Revenue (4) Adjusted diluted share count includes all outstanding Class A common stock and LP Units 6
Price and Volume Analysis Broad-Based Y/Y Recovery In Organic Sales Volumes Average Selling Price, Excluding Acquisitions Average Selling Price, Including Acquisitions (y/y % change) (y/y % change) Aggregates Cement Aggregates Cement 6.7% 10.7% 9.5% 3.0% 2.9% -0.5% -1.7% Sales Volume, Excluding Acquisitions Sales Volume, Including Acquisitions (y/y % change) (y/y % change) Ready-Mix Ready-Mix Aggregates Cement Asphalt Aggregates Cement Asphalt Concrete Concrete 114.7% 9.2% 7.1% 6.1% 3.6% 29.8% -5.4% 16.6% 15.3% -9.7% 10.9% 9.4% 8.3% 1.1% -19.2% 2Q17 2Q16 7
Cement Segment Remains A Key Growth Engine Advantaged Northern Tier Market Footprint ~ 80% of SUM’s Cement Volume Sold In MN, MO, IA Positive Cement Demand Outlook In MN, MO, IA Northern Tier Market Concentration Projected Growth In Cement Demand (Y/Y % Change) (1) 8.0% 14% 6.0% 4.0% 2.0% 85% 0.0% 2017 E 2018 E 2019 E 2020 E 2021 E Minnesota Missouri Iowa Minnesota, Missouri, Iowa Other States Apparent Cement End Use Analysis In MN, MO, IA Cement Segment Adjusted EBITDA & Margin Demand (Tons) By Residential, Non-Residential & Public (1) ($MM) (2) 52.0% 18% $43.8 47.2% 48% $37.6 34% 2Q16 2Q17 Residential Demand Non-Residential Demand Public Demand (1) Source: Portland Cement Association, July 2017 (2) See reconciliation of Adjusted EBITDA to Net Income in the appendix 8
Anticipate Cement Imports To Increase As U.S. Approaches Full Capacity Utilization Cement Imports Have Supplied An Average of 18% of U.S. Cement Demand Over The Last 20 Years (1) (Cement Imports as % of U.S. Cement Demand) 35% 30% 25% 20% Long-Term Average = 18% 15% 10% 5% 0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (1) Source: Portland Cement Association; Company estimates 9
Adjusted Cash Gross Margin Scorecard LTM 2Q17 Margins Increased Across all Lines of Business Aggregates Business Cement Segment Adjusted Cash Gross Profit Margin (%) (1,2) Adjusted Cash Gross Profit Margin (%) ( 1,2) 57.4% 52.2% 68.3% 46.0% 43.7% 63.3% 62.9% 60.5% 2Q16 2Q17 LTM 2Q16 LTM 2Q17 2Q16 2Q17 LTM 2Q16 LTM 2Q17 Products Business Services Business Adjusted Cash Gross Profit Margin (%) (1,2) Adjusted Cash Gross Profit Margin (%) (1,2) 29.5% 26.9% 27.7% 25.8% 26.5% 25.6% 25.6% 26.3% 2Q16 2Q17 LTM 2Q16 LTM 2Q17 2Q16 2Q17 LTM 2Q16 LTM 2Q17 (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 10
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