Summit Materials Inc (SUM) Q2 2019 Earnings Call Transcript

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Logo of jester cap with thought bubble.

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Summit Materials Inc (NYSE: SUM)
Q2 2019 Earnings Call
Aug 1, 2019, 11:00 a.m. ET

Contents:

  • Prepared Remarks

  • Questions and Answers

  • Call Participants

Prepared Remarks:

Operator

Greetings and welcome to Summit Materials Second Quarter 2019 Earnings Conference Call. [Operator Instructions]. A question-and-answer session will follow the formal presentation. [Operator Instructions]. I would now like to turn the conference over to your host Mr. Brian Harris, you may start.

Brian J. Harris -- Executive Vice President and Chief Financial Officer

Good morning, this is Brian Harris and I would like to welcome you to Summit Materials second quarter 2019 results conference call. We issued a press release before the market opened this morning detailing our second quarter results. This call will be accompanied by our second quarter 2019 investor presentation and an updated supplemental workbook highlighting key financial and operating data, both of which can be found in the Investors section of our website.

I would like to remind you that management's commentary and responses to questions on today's call may include forward-looking statements, which by their nature are uncertain and outside of Summit Materials' control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ in a material way.

For a discussion of some of the factors that could cause actual results to differ, please see the Risk Factors section of Summit Materials latest Annual Report on Form 10-K which is filed with the SEC. Additionally, you can find reconciliations of the historical non-GAAP financial measure discussed in today's call in this morning's press release. Today's call will begin with remarks from Tom Hill, who will provide an update on our business. Then I will provide a financial review and Tom will finish with an update on our management outlook. At the conclusion of these remarks, we will open the line for questions.

With that, I'll turn the call over to Tom.

Thomas W. Hill -- President and Chief Executive Officer

Good morning, everyone and thank you for joining our call. Turning to Slide 4 of the presentation. Net revenue grew 0.6% in the second quarter and 2.3% in the first half, supported by both organic and acquisition growth from deals completed in 2018. Our aggregates business in particular, continue to deliver strong performance through the first half with mid-single-digit organic volume increases and mid to high single-digit organic price improvement versus the prior year period. Adjusted EBITDA grew 3.8% in the second quarter and 4.4% in the first half, supported by top-line growth and stabilizing costs. Excluding the acquisitions, adjusted EBITDA increased 1.4% in the second quarter and 1% in the first half as a strength of our diversified vertically integrated business model offset the negative impacts of the record precipitation in most of our markets and the catastrophic Mississippi River flooding.