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84 • ROCK products • August 2018 www.rockproducts.com The acquisition is part of Colas' long-term strategy to continue its development in North America. The acquisition will allow Colas to expand its Canadian geographic coverage, strengthening its presence in Ontario. "This acquisition, once closed, will be a great opportunity for two groups of dedicated employees to merge their knowledge and experience and to continue to deliver, in a safe manner, exceptional work quality and excellence for overall customer satisfaction across Canada," said Louis Gabanna, Colas North America managing director, at the time of the announcement on Aug. 31, 2017. 1 COMPANY SPOTLIGHT Martin Marietta experienced a 5.0 percent decrease in total revenue in Q1 2018 when com- pared to the prior-year period. Aggregates volume also declined 8.0 percent when compared to the prior-year period. The quarterly decrease in aggregates volume was due to winter weather limiting outdoor construction activity in key geographies. Railroad inefficiencies also contributed to the decline in aggregates volume, reducing shipments in the Southeast and West Groups. Ward Nye, chairman, president and CEO of Martin Marietta, stated, "As we start the year, we are encouraged by ongoing customer optimism and our first-quarter results, both of which are consistent with our expectations. Additionally, while we remain on track to achieve our original 2018 guidance, we are updating and increasing that outlook to reflect the con- tribution we expect from our acquisition of Bluegrass Materials Company … We believe the United States is in the midst of a steady, multi-year construction recovery. Our leading positions in attractive, high-growth markets allow us to benefit from anticipated increased demand for both public and private construction activity in 2018 and beyond. Long term, we remain focused on elevating Martin Marietta from an aggregates industry leader to a globally recognized world-class organization, allowing us to further enhance shareholder value." 2 Net revenue for Summit Materials increased by 12 percent to $289.9 million in Q1 2018 compared to the prior year period. The increase in revenue was primarily due to acquisition-related contributions. Adjusted EBITDA declined to $5.5 million in the first quarter 2018, versus $13.6 million in the prior-year period. "On a year-to-date basis, we have completed seven acquisitions for total invested capital of $154 million," stated Tom Hill, CEO of Summit Materials. "Recent acquisitions have served to further establish our leadership in well-structured, materi- als-based markets in Utah, Texas, Oklahoma, Kansas, Kentucky and Missouri. The acquisition pipeline remains very active as we look ahead to the remainder of the year, with multiple transactions currently in various stages of diligence." Brian Harris, CFO of Summit Materials, said, "As of March 31, 2018, we had $397.9 million in cash and availability under our revolving credit facility to support our acquisition strategy and the general growth of the business. We anticipate net leverage to remain between approxi- mately 3.0x and 4.0x for the duration of the year, assuming the mid-point of our upwardly revised Adjusted EBITDA guidance and subject to the pace of acquisitions." Summit's aggregates business experienced an increase of 10 percent in net revenues while its cement business experienced a 14 percent decrease compared to the prior-year period. 3 CONSTRUCTION MATERIALS UPDATE Construction input prices increased 0.8 percent in March and are up 6.0 percent on a year-over-year basis, according to an Associated Builders and Contractors (ABC) analysis of data recently released by the U.S. Bureau of Labor Statistics. Aggregates Industry Almanac Agg Industry Market Report