Summit Materials (SUM) has reported 204.67 percent jump in profit for the quarter ended Oct. 01, 2016. The company has earned $44.82 million, or $0.61 a share in the quarter, compared with $14.71 million, or $0.38 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $73.52 million, or $0.73 a share compared with $63.47 million or $0.65 a share, a year ago. 

Revenue during the quarter grew 12.19 percent to $529.44 million from $471.90 million in the previous year period. Gross margin for the quarter expanded 276 basis points over the previous year period to 36.56 percent. Total expenses were 83.33 percent of quarterly revenues, up from 82.34 percent for the same period last year. That has resulted in a contraction of 99 basis points in operating margin to 16.67 percent.

Operating income for the quarter was $88.25 million, compared with $83.36 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $146.19 million compared with $120.41 million in the prior year period. At the same time, adjusted EBITDA margin improved 210 basis points in the quarter to 27.61 percent from 25.51 percent in the last year period.  

"Sustained organic growth in aggregates and cement pricing, coupled with improved cost discipline and margin capture, contributed to significant year-over-year increases in operating cash flow and net income in the third quarter," stated Tom Hill, chief executive officer of Summit Materials. "Materials gross profit increased nearly 30% on a year over year basis, representing more than half of total gross profit in the period. Overall, total gross profit margin increased 290 basis points on a year-over-year basis to 40.3% in the third quarter 2016."

The company has spent $435.69 million cash to meet investing activities during the nine month period as against cash outgo of $565.64 million in the last year period. It has incurred net capital expenditure of $105.72 million on net basis during the nine month period, up 73.92 percent or $44.93 million from year ago period.

Cash flow from financing activities was $196.07 million for the nine month period, down 66.79 percent or $394.27 million, when compared with the last year period.

Cash and cash equivalents stood at $31.64 million as on Oct. 01, 2016, up 66.66 percent or $12.66 million from $18.99 million on Sep. 26, 2015.

Working capital increases sharply
Summit Materials has recorded an increase in the working capital over the last year. It stood at $223.78 million as at Oct. 01, 2016, up 93.80 percent or $108.31 million from $115.47 million on Sep. 26, 2015. Current ratio was at 1.84 as on Oct. 01, 2016, up from 1.38 on Sep. 26, 2015.

Cash conversion cycle (CCC) has increased to 28 days for the quarter from 23 days for the last year period. Days sales outstanding went up to 21 days for the quarter compared with 20 days for the same period last year.

Days inventory outstanding has increased to 22 days for the quarter compared with 20 days for the previous year period. At the same time, days payable outstanding went down to 15 days for the quarter from 16 for the same period last year.