Summit Materials, Inc. Announces Stock Repurchase Program
March 02 2022 - 4:28PM
Business Wire
Board authorizes repurchase of up to $250
million of Summit’s Class A common stock
Complements Summit’s M&A program
Reflects Summit’s Commitment to Sound Capital
Allocation
Summit Materials, Inc. (NYSE: SUM) (“Summit,” “Summit
Materials,” "Summit Inc." or the “Company”), a leading vertically
integrated construction materials company, announces that its Board
of Directors has authorized a share repurchase program of up to
$250 million of Summit’s Class A common stock.
"With our Elevate Summit strategy driving improved execution and
financial performance as evidenced by record 2021 results, we
believe Summit’s common stock currently represents a very
compelling value, and it makes sense to allocate some capital to
share repurchases," said Summit Materials CEO Anne Noonan. "For the
first time in Summit’s history, we have the financial flexibility
to balance the pursuit of acquisition and greenfield opportunities
with other strategic uses of capital. Our improved performance,
including record 2021 reported Net Revenue, Net Income, Adjusted
Cash Gross Profit and Adjusted EBITDA, provides multiple avenues to
drive shareholder value creation. This buyback program complements
our 2022 roadmap which involves optimizing our portfolio, pursuing
self-help initiatives to improve performance, and driving market
leadership to #1 or #2 positions in targeted exurban, higher growth
communities underpinned by strong demand fundamentals."
Brian Harris, CFO of Summit Materials added, "Summit concluded
2021 with its best ever net leverage ratio and a stronger balance
sheet. Our attractive cash position and low leverage now provides
us the financial flexibility to expand our capital allocation
priorities to include acquisitions, greenfields, debt repayment,
and now a share buyback program. We are encouraged by the strength
in all three of Summit’s end-markets, and continued organic growth
opportunities as well."
The timing and actual number of shares repurchased will depend
on a variety of factors, including price, available liquidity,
general business and market conditions and alternative investment
opportunities. Under the stock repurchase program, repurchases can
be made from time to time using a variety of methods, including but
not limited to open market purchases and privately negotiated
transactions, all in compliance with the rules and regulations of
the Securities and Exchange Commission ("SEC") and other applicable
legal requirements.
The repurchase program does not obligate the Company to acquire
any specific dollar amount or number of shares of Class A common
stock, and the repurchase program may be suspended or discontinued
at any time at the Company's discretion.
About Summit Materials
Summit Materials is a leading vertically integrated
materials-based company that supplies aggregates, cement, ready-mix
concrete and asphalt in the United States and British Columbia,
Canada. Summit is a geographically diverse, materials-based
business of scale that offers customers a single-source provider of
construction materials and related downstream products in the
public infrastructure, residential and nonresidential end markets.
Summit has a strong track record of successful acquisitions since
its founding and continues to pursue growth opportunities in new
and existing markets. For more information about Summit Materials,
please visit www.summit-materials.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release 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. These forward-looking statements
are subject to risks, uncertainties and other factors that may
cause our actual results, performance or achievements to be
different from future results, performance or achievements
expressed or implied by such forward-looking statements. 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 effect 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 realized. 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 for the
fiscal year ended January 1, 2022. Such factors may be updated from
time to time in our periodic filings with the Securities and
Exchange Commission ("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 required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220302005972/en/
Karli Anderson EVP, Chief Environmental, Social & Governance
Officer and Head of Investor Relations
karli.anderson@summit-materials.com 303-875-3886
Summit Materials (NYSE:SUM)
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