Summit Materials, which describes itself as "a vertically integrated construction materials company,"grew its net revenue by 4.1% year-on-year to $575.2 million in the second quarter of 2020.
Aggregates volumes increased 2.6% during the same period and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 14.1% to $160.2 million.
According to a statement on the financial markets: "Summit's net revenue increased 4.1% in the second quarter of 2020 compared to the second quarter of 2019, as ready mix and aggregates contributed the largest proportion of incremental net revenue.
"The Company reported operating income of $100.1 million in the second quarter 2020, compared to $80.4 million in the prior year.
"Summit's operating margin improved to 17.4% in the three months ended June 27, 2020 from 14.6% in the comparable prior year period on net revenue gains in excess of our cost of revenue, partially offset by increases in general and administrative expenses.
"Adjusted EBITDA increased 14.1% in the second quarter to $160.2 million as compared to $140.5 million in 2019.
"For the three months ended June 27, 2020, organic sales volumes increased 2.6% in aggregates, 3.2% in ready-mix concrete, and 10.0% in asphalt ... but decreased (6.3)% in cement relative to the same period last year.
"Organic average selling prices in the second quarter of 2020 decreased (0.2)% in aggregates, and increased 1.2% in cement, 5.5% in ready-mix concrete, and 2.3% in asphalt relative to the prior year period."
Tom Hill, CEO of Summit Materials, said: "Despite economic uncertainty, Summit experienced resilient demand and favorable weather conditions, particularly in Utah and Kansas, which led to record 2Q net revenue, net income, and adjusted EBITDA.
"While our average selling price for aggregates declined relative to the second quarter of 2019, our aggregates adjusted cash gross profit margin expanded by 250 basis points, reflecting a different sales mix, particularly for levee repair work, than a year ago.
"Most importantly, we have been vigilant in practicing safety and distancing protocols in response to the COVID-19 outbreak.
"Construction is essential in all of Summit's markets, and the health and safety of our workforce, customers and local communities continues to remain our highest priority."
Summit has also recently acquired Multisources Sand & Gravel, a pure play, 100% aggregates supplier in West and North Houston. Combined with Summit's existing footprint, this acquisition creates the leading aggregates supplier in Houston with 14 plants, the company claims.
