For the three months ended June 29, 2019, the Company reported net income attributable to Summit Inc. of $36.4 million, or $0.32 per basic share, compared to net income attributable to Summit Inc. of $35.5 million, or $0.32 per basic share in the comparable prior year period. Summit reported adjusted diluted net income of $36.0 million, or $0.31 per adjusted diluted share as compared to adjusted diluted net income of $37.1 million, or $0.32 per adjusted diluted share in the prior year period.

Summit's net revenue increased 0.6% in the second quarter of 2019 compared to the comparable 2018 period. Adjusted EBITDA increased to $140.5 million in 2019 as compared to $135.3 million in 2018, as Summit continues to achieve increases in aggregates, cement and asphalt volumes on a year to date basis and pricing increases for aggregates, ready-mix concrete and asphalt. Tom Hill, CEO of Summit Materials, stated "We were very pleased to see the solid increases in our organic sales volumes as well as average sales prices for aggregates that started in the first quarter of 2019, continue into the second quarter." Summit reported a 12.6% increase in aggregate sales volumes combined with a 8.5% increase in aggregates average sales prices during the first six months of 2019 as compared to the same period in 2018. Despite achieving a 1.9% increase in year to date ready-mix concrete average sales prices, Summit reported its ready-mix concrete volumes in 2019 were 5.9% below 2018 levels as wet and cold weather conditions in Houston and the Intermountain geographies adversely impacted volumes.

Hill commented, "While the Mississippi River presented significant barge shipment challenges for our cement segment during the quarter, we were able to ship 2.6% more volume in the second quarter of 2019 compared to 2018. While average sales prices of cement were up slightly in the second quarter, they have been flat compared to the first six months of 2018." Summit's cement segment increased its Adjusted EBITDA from $34.7 million in the second quarter of 2018 to $35.4 million in the same period in 2019.

"Underlying demand conditions in most of our markets remain favorable and are expected to remain so during the remainder of 2019," continued Hill. In Summit's public markets, state transportation funding measures in Texas, coupled with steady increases in federal subsidies, are contributing to increased lettings activity. Single family housing starts and permits remain well below peak levels in Summit's major markets.

Further, Summit reaffirmed its guidance for 2019 capital expenditures of approximately $160 million to $175 million, and noted its cash paid for capital equipment decreased from $131.7 million in the first six months of 2018 to $105.6 million in 2019 as Summit continues to execute on its plan to reduce its leverage ratio by the end of 2019. As expected, given the seasonality of its operations, Summit's leverage ratio decreased slightly over levels reported at the end of the first quarter 2019.

Aggregates Business: Aggregates net revenues increased by 24.1% to $128.7 million in the second quarter 2019, when compared to the prior year period. Aggregates adjusted cash gross profit margin declined to 61.4% in the second quarter 2019, compared to 64.8% in the prior year period, primarily due to operational inefficiencies caused by the loss of a piece of mining equipment used in our Texas operations during the quarter. Aggregate margins in the West region were also adversely impacted by certain stripping and maintenance costs which are not expected to recur in the second half of the year. Organic aggregates sales volumes increased 4.4% in the second quarter 2019, when compared to the prior-year period. Organic average selling prices on aggregates increased 8.0% in the second quarter 2019 when compared to the prior year period due to improvements in prices within both the West and East segments during the period.

Cement Business: Cement segment net revenues increased 3.3% to $84.5 million in the second quarter 2019, when compared to the prior-year period. Cement adjusted cash gross profit margin decreased to 45.8% in the second quarter, compared to 46.5% in the prior-year period, as margins were impacted by lower production levels in 2019 and increased logistics and distribution costs. Organic sales volume of cement increased 2.6% in the second quarter, when compared to the prior year period. Organic average selling prices on cement increased 0.6% in the second quarter, when compared to the prior year period due to changes of the customer mix across our geographies.

Products Business: Net revenues decreased 6.7% to $261.2 million in the second quarter 2019, when compared to the prior year period, primarily due to the sale of a non-core business in the third quarter of 2018. Products adjusted cash gross profit margin slightly increased to 22.3% in the second quarter, versus 22.0% in the prior year period. Our organic average sales price for ready-mix concrete increased 2.9%, which was offset by a 7.2% decrease in organic sales volumes of ready-mix concrete. Our organic average sales price for asphalt increased 6.8% while we had a 2.5% decrease in asphalt organic sales volumes.

Net revenue increased by 0.6% to $552.6 million in the second quarter 2019, versus $549.2 million in the prior year period. The improvement in net revenue was primarily attributable to both organic and acquisition-related contributions in the East segment and to a lesser extent, the Cement segment, offset by a decline in the West segment. The Company reported operating income of $80.4 million in the second quarter 2019, compared to $77.3 million in the prior year period. Net income increased 2.9% to $38.0 million in the second quarter of 2019, compared to $36.9 million in the prior year period. Adjusted EBITDA increased 3.8% to $140.5 million in the second quarter of 2019, compared to $135.3 million in the prior year period.

West Segment: The West Segment reported operating income of $31.6 million in the second quarter 2019, compared to $38.4 million in the prior year period. Adjusted EBITDA decreased to $54.8 million in the first quarter 2019, compared to $61.2 million in the prior year period. The quarterly declines in West Segment operating income and Adjusted EBITDA were primarily attributable to operational inefficiencies related to the loss of a piece of mining equipment in the West, the sale of a non-core business in the third quarter of 2018, along with increased labor and materials costs and cold weather conditions in Texas, Utah and Colorado, partially offset by increases in average selling prices on aggregates, ready-mix concrete and asphalt. Aggregates revenue in the second quarter increased 13.9% over the prior year period as a result of contributions from acquisitions completed in the second half of 2018, resulting in a 4.8% increase in organic volumes and a 4.6% increase in organic average sales prices. Ready-mix concrete revenue in the second quarter 2019 decreased 2.7% over the prior year period, primarily due to a 6.2% decrease in organic volumes, partially offset by a 3.3% increase in organic average sales prices. Asphalt revenue increased by 8.3% in the second quarter 2019 over the prior year period, as our liquid asphalt terminal which had been damaged in Hurricane Harvey was operating in 2019, but not in the comparable period in 2018.

East Segment: The East Segment reported operating income of $33.7 million in the second quarter 2019, compared to $26.9 million in the prior year period. Adjusted EBITDA increased to $54.4 million in the first quarter 2019, compared to $45.4 million in the prior year period. The quarterly improvement in East Segment operating income and Adjusted EBITDA was mainly attributable to increases in net revenue from our acquisition program, increases in average selling prices of aggregates, ready-mix concrete and asphalt, partially offset by decreases in ready-mix concrete volumes. Aggregates revenue increased 25.5%, primarily due to increases resulting from our acquisition program as well as a 4.1% and 10.6% increase in organic volumes and average sales prices, respectively. Ready-mix concrete revenue decreased 8.4% as a result of lower sales volumes, partially offset by an increase in organic average sales prices. Asphalt revenue increased 25.1% primarily as a result of a 14.2% increase in organic average sales prices, partially offset by a 1.1% decrease in organic volumes.

Cement Segment: The Cement Segment reported operating income of $25.5 million in the second quarter 2019, compared to $25.8 million in the prior year period Adjusted EBITDA increased to $35.4 million in the second quarter 2019, compared to $34.7 million in the prior year period, due primarily to the increase of 2.6% and 0.6% in organic sales volumes and organic average selling prices, respectively, during the second quarter 2019 as compared to the prior year period.

Summit Materials will conduct a conference call today at 11:00 a.m. eastern time (9:00 a.m. mountain time) to review the Company's second quarter financial results. A webcast of the conference call and accompanying presentation materials will be available in the Investors section of Summit's website at investors.summit-materials.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

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.

The Securities and Exchange Commission ("SEC") regulates the use of "non-GAAP financial measures," such as Adjusted Net Income (Loss), Adjusted Diluted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Free Cash Flow, Net Leverage and Net Debt which are derived on the basis of methodologies other than in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). We have provided these measures because, among other things, we believe that they provide investors with additional information to measure our performance, evaluate our ability to service our debt and evaluate certain flexibility under our restrictive covenants. Our Adjusted Net Income (Loss), Adjusted Diluted EPS, Adjusted EBITDA, Further Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Free Cash Flow, Net Leverage and Net Debt may vary from the use of such terms by others and should not be considered as alternatives to or more important than net income (loss), operating income (loss), revenue or any other performance measures derived in accordance with U.S. GAAP as measures of operating performance or to cash flows as measures of liquidity.

Adjusted EBITDA, Adjusted EBITDA Margin, and other non-GAAP measures have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of the limitations of Adjusted EBITDA are that these measures do not reflect: (i) our cash expenditures or future requirements for capital expenditures or contractual commitments; (ii) changes in, or cash requirements for, our working capital needs; (iii) interest expense or cash requirements necessary to service interest and principal payments on our debt; and (iv) income tax payments we are required to make. Because of these limitations, we rely primarily on our U.S. GAAP results and use Adjusted EBITDA, Adjusted EBITDA Margin and other non-GAAP measures on a supplemental basis.

Adjusted EBITDA, Further Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cash Gross Profit, Adjusted Cash Gross Profit Margin, Adjusted Net Income (Loss), Adjusted Diluted EPS, Free Cash Flow, Net Leverage and Net Debt reflect additional ways of viewing aspects of our business that, when viewed with our GAAP results and the accompanying reconciliations to U.S. GAAP financial measures included in the tables attached to this press release, may provide a more complete understanding of factors and trends affecting our business. We strongly encourage investors to review our consolidated financial statements in their entirety and not rely on any single financial measure. Reconciliations of the non-GAAP measures used in this press release are included in the attached tables. 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. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.

This press release includes "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. All statements made relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially 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 Summit Inc.'s Annual Report on Form 10-K for the fiscal year ended December 29, 2018 as filed with the Securities and Exchange Commission (the "SEC"), any factors discussed in the section entitled "Risk Factors" in any of our subsequently filed SEC filings, and the following:

All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements. Any forward-looking statement that we make herein speaks only as of the date of this press release. 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.

(1) Net revenue for the cement line of business excludes revenue associated with hazardous and non-hazardous waste, which is processed into fuel and used in the cement plants and is included in services net revenue. Additionally, net revenue from cement swaps and other cement-related products are included in products net revenue.
(2) Adjusted cash gross profit is calculated as net revenue by line of business less net cost of revenue by line of business. Adjusted cash gross profit margin is defined as adjusted cash gross profit divided by net revenue.
(3) The cement adjusted cash gross profit includes the earnings from the waste processing operations, cement swaps and other products. Cement line of business adjusted cash gross profit margin is defined as cement adjusted cash gross profit divided by cement segment net revenue.

(1) Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue.
(2) In the three and six months ended June 29, 2019, we negotiated a $2.0 million reduction in the amount of a contingent liability from one of our acquisitions. In the six months ended June 30, 2018, we negotiated a $6.9 million reduction in the amount of a contingent liability from one of our acquisitions. As we had passed the period to revise the opening balance sheet for this acquisition, the adjustment was recorded in the respective period as other income.

The table below reconciles our net income (loss) per share attributable to Summit Materials, Inc. to adjusted diluted net income (loss) per share for the three and six months ended June 29, 2019 and June 30, 2018. The per share amount of the net income (loss) attributable to Summit Materials, Inc. presented in the table is calculated using the total equity interests for the purpose of reconciling to adjusted diluted net income (loss) per share.