10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-38479

Construction Partners, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	26-0758017
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
290 Healthwest Drive, Suite 2 Dothan, Alabama	36303
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (334) 673-9763

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.001 per share	ROAD	The Nasdaq Stock Market LLC
		(Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No   ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ☐    No  ☒

As of August 4, 2021, the registrant had 36,506,570 shares of Class A common stock, $0.001 par value, and 15,785,908 shares of Class B common stock, $0.001 par value, outstanding.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements related to future events, business strategy, future performance, future operations, backlog, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek,” “anticipate,” “plan,” “continue,” “estimate,” “expect,” “may,” “will,” “project,” “predict,” “potential,” “targeting,” “intend,” “could,” “might,” “should,” “believe,” “outlook” and variations of such words or their negative and similar expressions. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on management’s belief, based on currently available information, as to the outcome and timing of future events. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed in such forward-looking statements. When evaluating forward-looking statements, you should consider the risk factors and other cautionary statements described in this Quarterly Report on Form 10-Q and under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. We believe the expectations reflected in the forward-looking statements contained in this report are reasonable, but no assurance can be given that these expectations will prove to be correct. Forward-looking statements should not be unduly relied upon.

Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to:

•declines in public infrastructure construction and reductions in government funding, including the funding by transportation authorities and other state and local agencies;

•risks related to our operating strategy;

•competition for projects in our local markets;

•risks associated with our capital-intensive business;

•a pandemic, such as the pandemic related to the novel strain of coronavirus known as COVID-19 (“COVID-19”), which may disrupt our business as a result of employee absences, supply chain interruptions or declines or delays in customer demand for our services;

•government inquiries, requirements and initiatives, including those related to funding for public or infrastructure construction, land usage, environmental, health and safety matters, and government contracting requirements and other laws and regulations;

•our ability to successfully identify, manage and integrate acquisitions;

•our ability to obtain sufficient bonding capacity to undertake certain projects;

•our ability to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us;

•the cancellation of a significant number of contracts or our disqualification from bidding for new contracts;

•risks related to adverse weather conditions;

•our substantial indebtedness and the restrictions imposed on us by the terms thereof;

•our ability to maintain favorable relationships with third parties that supply us with equipment and essential supplies;

•our ability to retain key personnel and maintain satisfactory labor relations;

•property damage and other claims and insurance coverage issues;

•the outcome of litigation or disputes, including employment-related, workers’ compensation and breach of contract claims;

•risks related to our information technology systems and infrastructure, including cybersecurity incidents;

•our ability to maintain effective internal control over financial reporting; and

•other events outside of our control.

These factors are not necessarily all of the important factors that could cause actual results or events to differ materially from those expressed in the forward-looking statements. Other unknown or unpredictable factors could also cause actual results or events to differ materially from those expressed in the forward-looking statements. Our future results will depend upon various other risks and uncertainties, including those described in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. All forward-looking statements attributable to us are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date hereof. We undertake no obligation to update or revise any forward-looking statements after the date on which any such statement is made, whether as a result of new information, future events or otherwise, except as required by law.

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION	2
Item 1.	Financial Statements	2
	Consolidated Balance Sheets at June 30, 2021 and September 30, 2020	2
	Consolidated Statements of Income for the three and nine months ended June 30, 2021 and 2020	3
	Consolidated Statements of Stockholders' Equity for the three and nine months ended June 30, 2021 and 2020	4
	Consolidated Statements of Cash Flows for the nine months ended June 30, 2021 and 2020	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30
PART II.	OTHER INFORMATION	31
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
SIGNATURES		33

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

CONSTRUCTION PARTNERS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

	June 30,		September 30,
	2021		2020
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	134,468	$	148,316
Contracts receivable including retainage, net	164,305		131,770
Costs and estimated earnings in excess of billings on uncompleted contracts	15,770		7,873
Inventories	50,841		38,561
Prepaid expenses and other current assets	7,967		5,041
Total current assets	373,351		331,561
Property, plant and equipment, net	296,697		237,230
Operating lease right-of-use assets	6,661		7,383
Goodwill	78,444		46,348
Intangible assets, net	5,134		3,224
Investment in joint venture	108		198
Other assets	6,591		1,784
Deferred income taxes, net	386		386
Total assets	$	767,372	$	628,114
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	82,817	$	64,732
Billings in excess of costs and estimated earnings on uncompleted contracts	31,555		33,704
Current portion of operating lease liabilities	1,501		2,046
Current maturities of debt	10,000		13,000
Accrued expenses and other current liabilities	25,684		22,347
Total current liabilities	151,557		135,829
Long-term liabilities:
Long-term debt, net of current maturities	188,591		79,053
Operating lease liabilities, net of current portion	5,320		5,554
Deferred income taxes, net	14,003		14,003
Other long-term liabilities	8,228		8,480
Total long-term liabilities	216,142		107,090
Total liabilities	367,699		242,919
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001; 10,000,000 shares authorized at June 30, 2021 and September 30, 2020 and no shares issued and outstanding	—		—
Class A common stock, par value $0.001; 400,000,000 shares authorized, 36,506,570 shares issued and outstanding at June 30, 2021, and 33,875,884 shares issued and outstanding at September 30, 2020	36		34
Class B common stock, par value $0.001; 100,000,000 shares authorized, 18,708,860 shares issued and 15,785,908 outstanding at June 30, 2021 and 20,828,813 shares issued and 17,905,861 outstanding at September 30, 2020	19		21
Additional paid-in capital	247,224		245,022
Treasury stock, at cost, 2,922,952 shares of Class B common stock, par value $0.001	(15,603)		(15,603)
Retained earnings	167,997		155,721
Total stockholders’ equity	399,673		385,195
Total liabilities and stockholders’ equity	$	767,372	$	628,114

See notes to consolidated financial statements (unaudited).

2

CONSTRUCTION PARTNERS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited in thousands, except share and per share data)

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Revenues	$	261,656	$	217,041	$	631,697	$	561,034
Cost of revenues	225,039		180,155		546,414		480,217
Gross profit	36,617		36,886		85,283		80,817
General and administrative expenses	(23,195)		(16,852)		(67,754)		(50,786)
Gain on sale of equipment, net	835		390		1,177		1,134
Operating income	14,257		20,424		18,706		31,165
Interest expense, net	(568)		(575)		(1,334)		(2,690)
Other income (expense)	252		251		661		360
Income before provision for income taxes and earnings from investment in joint venture	13,941		20,100		18,033		28,835
Provision for income taxes	(4,600)		(4,772)		(5,767)		(6,622)
Earnings (loss) from investment in joint venture	(1)		419		10		532
Net income	$	9,340	$	15,747	$	12,276	$	22,745
Net income per share attributable to common stockholders:
Basic	$	0.18	$	0.31	$	0.24	$	0.44
Diluted	$	0.18	$	0.30	$	0.24	$	0.44
Weighted average number of common shares outstanding:
Basic	51,686,735		51,489,211		51,620,143		51,489,211
Diluted	51,864,403		51,646,385		51,726,994		51,623,627

See notes to consolidated financial statements (unaudited).

3

CONSTRUCTION PARTNERS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(unaudited in thousands, except share data)

	For the nine months ended June 30, 2021
	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
September 30, 2020	33,875,884	$	34	20,828,813	$	21	$	245,022	$	(15,603)	$	155,721	$	385,195
Net income	—	—		—	—		—		—		7,871		7,871
Equity-based compensation expense	—	—		—	—		395		—		—		395
December 31, 2020	33,875,884	$	34	20,828,813	$	21	$	245,417	$	(15,603)	$	163,592	$	393,461
Net loss	—	—		—	—		—		—		(4,935)		(4,935)
Conversion of Class B common stock to Class A common stock	1,332,952	1		(1,332,952)	(1)		—		—		—		—
Equity-based compensation expense	—	—		—	—		460		—		—		460
Issuance of stock grant awards	510,733	—		—	—		—		—		—		—
March 31, 2021	35,719,569	$	35	19,495,861	$	20	$	245,877	$	(15,603)	$	158,657	$	388,986
Net income	—	—		—	—		—		—		9,340		9,340
Conversion of Class B common stock to Class A common stock	787,001	1		(787,001)	(1)		—		—		—		—
Equity-based compensation expense	—	—		—	—		1,347		—		—		1,347
June 30, 2021	36,506,570	$	36	18,708,860	$	19	$	247,224	$	(15,603)	$	167,997	$	399,673

	For the nine months ended June 30, 2020
	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
September 30, 2019	32,597,736	$	33	22,106,961	$	22	$	243,452	$	(15,603)	$	115,646	$	343,550
Net income	—	—		—	—		—		—		5,461		5,461
Equity-based compensation expense	—	—		—	—		395		—		—		395
Conversion of Class B common stock to Class A common stock	107,682	—		(107,682)	—		—		—		—		—
Effect of adopting ASU Topic 842	—	—		—	—		—		—		(222)		(222)
December 31, 2019	32,705,418	$	33	21,999,279	$	22	$	243,847	$	(15,603)	$	120,885	$	349,184
Net income	—	—		—	—		—		—		1,537		1,537
Equity-based compensation expense	—	—		—	—		390		—		—		390
March 31, 2020	32,705,418	$	33	21,999,279	$	22	$	244,237	$	(15,603)	$	122,422	$	351,111
Net income	—	—		—	—		—		—		15,747		15,747
Equity-based compensation expense	—	—		—	—		390		—		—		390
Conversion of Class B common stock to Class A common stock	724,946	1		(724,946)	(1)		—		—		—		—
June 30, 2020	33,430,364	$	34	21,274,333	$	21	$	244,627	$	(15,603)	$	138,169	$	367,248

See notes to consolidated financial statements (unaudited).

4

CONSTRUCTION PARTNERS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited in thousands)

	For the Nine Months Ended June 30,
	2021		2020
Cash flows from operating activities:
Net income	$	12,276	$	22,745
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization of long-lived assets	36,011		29,065
Amortization of deferred debt issuance costs and debt discount	190		115
Unrealized (gain) loss on derivative instruments	(3,141)		1,989
Provision for bad debt	440		451
Gain on sale of equipment, net	(1,177)		(1,134)
Equity-based compensation expense	2,202		1,175
Earnings from investment in joint venture	(10)		(532)
Distribution of earnings from investment in joint venture	100		139
Deferred income taxes	—		(197)
Other non-cash adjustments	(57)		(12)
Changes in operating assets and liabilities, net of acquisition:
Contracts receivable including retainage, net	(32,975)		6,345
Costs and estimated earnings in excess of billings on uncompleted contracts	(7,897)		(3,574)
Inventories	(8,061)		(1,878)
Prepaid expenses and other current assets	(1,723)		3,867
Other assets	(4,123)		311
Accounts payable	16,789		(12,863)
Billings in excess of costs and estimated earnings on uncompleted contracts	(2,149)		3,396
Accrued expenses and other current liabilities	2,970		2,029
Other long-term liabilities	(331)		(23)
Net cash provided by operating activities, net of acquisitions	9,334		51,414
Cash flows from investing activities:
Purchases of property, plant and equipment	(39,588)		(41,535)
Proceeds from sale of equipment	2,361		2,182
Business acquisitions, net of cash acquired	(92,303)		(30,191)
Return of investment in joint venture	—		361
Net cash used in investing activities	(129,530)		(69,183)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of debt issuance costs and discount	199,198		42,719
Repayments of long-term debt	(92,850)		(26,874)
Net cash provided by financing activities	106,348		15,845
Net change in cash and cash equivalents	(13,848)		(1,924)
Cash and cash equivalents:
Beginning of period	148,316		80,619
End of period	$	134,468	$	78,695
Supplemental cash flow information:
Cash paid for interest	$	1,950	$	1,416
Cash paid for income taxes	$	3,568	$	5,600
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	1,089	$	1,241
Cash paid for operating lease liabilities	$	1,795	$	2,464
Non-cash items:
Property, plant and equipment included with accounts payable at period end	$	778	$	1,073
Non-compete agreements to seller in business combination	$	1,700	$	—
Amounts payable to sellers in business combinations	$	1,296	$	—

See notes to consolidated financial statements (unaudited).

5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 1 - General

Business Description

Construction Partners, Inc. (the “Company”) is a civil infrastructure company that specializes in the construction and maintenance of roadways across Alabama, Florida, Georgia, North Carolina and South Carolina. Through its wholly owned subsidiaries, the Company provides a variety of products and services to both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports, and commercial and residential developments. The Company’s primary operations consist of (i) manufacturing and distributing hot mix asphalt (“HMA”) for both internal use and sales to third parties in connection with construction projects, (ii) paving activities, including the construction of roadway base layers and application of asphalt pavement, (iii) site development, including the installation of utility and drainage systems, (iv) mining aggregates, such as sand and gravel, that are used as raw materials in the production of HMA, and (v) distributing liquid asphalt cement for both internal use and sales to third parties in connection with HMA production.

The Company was formed as a Delaware corporation in 2007 as a holding company for its wholly owned subsidiary, Construction Partners Holdings, Inc., to facilitate an acquisition growth strategy in the HMA paving and construction industry. On December 31, 2019, Construction Partners Holdings, Inc. merged with and into the Company, with the Company surviving the merger. SunTx Capital Partners (“SunTx”), a private equity firm based in Dallas, Texas, is the Company’s majority investor and has owned a controlling interest in the Company’s stock since the Company’s inception.

Seasonality

The use and consumption of the Company’s products and services fluctuate due to seasonality. The Company’s products are used, and its construction operations and production facilities are located, outdoors. Therefore, seasonal changes and other weather-related conditions, in particular, extended snowy, rainy or cold weather in the winter, spring or fall and major weather events, such as hurricanes, tornadoes, tropical storms and heavy snows, can adversely affect the Company’s business and operations through a decline in both the use of the Company’s products and demand for the Company’s services. In addition, construction materials production and shipment levels follow activity in the construction industry, which typically occurs in the spring, summer and fall. Warmer and drier weather during the third and fourth quarters of the Company’s fiscal year typically result in higher activity and revenues during those quarters. The first and second quarters of the Company’s fiscal year typically have lower levels of activity due to less favorable weather conditions.

Note 2 - Significant Accounting Policies

Basis of Presentation

These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. These interim consolidated statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), which permit reduced disclosure for interim periods. The Company's Consolidated Balance Sheets as of September 30, 2020 were derived from the Company's audited financial statements for the fiscal year then ended, but do not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) with respect to annual financial statements. In the opinion of management, these unaudited consolidated financial statements include all recurring adjustments and normal accruals necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the dates and periods presented. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited annual consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2020 (the “2020 Form 10-K”). Results for interim periods are not necessarily indicative of the results to be expected for a full fiscal year or for any future period.

Management’s Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the recorded amounts of assets, liabilities, stockholders’ equity, revenues and expenses during the reporting period, and the disclosure of contingent liabilities at the date of the consolidated financial statements. Estimates are used in accounting for items such as recognition of revenues and cost of revenues, goodwill and other intangible assets, business acquisition accounting estimates, valuation of operating lease right-of-use assets, allowance for doubtful accounts, valuation allowances related to income taxes, accruals for potential liabilities related to lawsuits or insurance claims, the fair value of derivative instruments and the fair value of equity-based compensation awards. Estimates are continually evaluated based on historical information and actual experience; however, actual results could differ from these estimates.

6

A description of certain critical accounting policies of the Company is presented below. Additional critical accounting policies and the underlying judgments and uncertainties are described in the notes to the Company’s annual consolidated financial statements included in the 2020 Form 10-K.

Emerging Growth Company

The Company is an “emerging growth company,” as defined by the Jumpstart Our Business Startups Act enacted in April 2012. As an emerging growth company, the Company could have taken advantage of an exemption that would have allowed the Company to wait to comply with new or revised financial accounting standards until the effective date of such standards for private companies. However, the Company has irrevocably elected to opt out of such extended transition period, which means that when a new or revised standard has a different effective date for public and private companies, the Company is required to adopt the standard on the effective date applicable to public companies that are not emerging growth companies.

Cash and Cash Equivalents

Cash consists principally of currency on hand and demand deposits at commercial banks. Cash equivalents are short-term, highly liquid investments that are both readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents include investments with original maturities of three months or less. The Company maintains demand accounts, money market accounts and certificates of deposit at several banks. From time to time, the account balances have exceeded the maximum available federal deposit insurance coverage limit. The Company has not experienced any losses in such accounts and regularly monitors its credit risk.

Contracts Receivable Including Retainage, net

Contracts receivable are generally based on amounts billed and currently due from customers, amounts currently due but unbilled, and amounts retained by the customer pending completion of a project. It is common in the Company’s industry for a small portion of either progress billings or the contract price, typically 10%, to be withheld by the customer until the Company completes a project to the satisfaction of the customer in accordance with the applicable contract terms. Such amounts, defined as retainage, represent a contract asset and are included on the Company's Consolidated Balance Sheets as “Contracts receivable including retainage, net”. Based on the Company’s experience with similar contracts in recent years, billings for such retainage balances are generally collected within one year of the completion of the project.

Contracts receivable including retainage, net are stated at the amount management expects to collect from outstanding balances. Management provides for uncollectible accounts through a charge to earnings and a credit to the allowance for doubtful accounts based on its assessment of the current status of individual accounts, type of service performed, current economic conditions, historical losses and other information available to management. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and an adjustment to the contract receivable.

Contract Assets and Contract Liabilities

Billing practices for the Company’s contracts are governed by the contract terms of each project and are typically based on (i) progress toward completion approved by the owner or customer, (ii) achievement of milestones or (iii) pre-agreed schedules. Billings do not necessarily correlate with revenues recognized under the cost-to-cost input method (formerly known as the percentage-of-completion method). The Company records contract assets and contract liabilities to account for these differences in timing.

The contract asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” arises when the Company recognizes revenues for services performed under its construction projects, but the Company is not yet entitled to bill the customer under the terms of the contract. Amounts billed to customers are excluded from this asset and reflected on the Consolidated Balance Sheets as “Contracts receivable including retainage, net”. Included in costs and estimated earnings in excess of billings on uncompleted contracts are amounts the Company seeks or will seek to collect from customers or others for (i) errors, (ii) changes in contract specifications or design, (iii) contract change orders in dispute, unapproved as to scope and price, or (iv) other customer-related causes of unanticipated additional contract costs (such as claims). Such amounts are recorded to the extent that the amount can be reasonably estimated and recovery is probable. Claims and unapproved change orders made by the Company may involve negotiation and, in rare cases, litigation. Unapproved change orders and claims also involve the use of estimates, and revenues associated with unapproved change orders and claims are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company did not recognize any material amounts associated with claims and unapproved change orders during the periods presented.

The contract liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents the Company’s obligation to transfer to a customer goods or services for which the Company has been paid by the customer or for which the Company has billed the customer under the terms of the contract. Revenue for future services reflected in this account are recognized, and the liability is reduced, as the Company subsequently satisfies the performance obligation under the contract.

7

Costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts are typically resolved within one year and are not considered significant financing components.

Concentration of Risks

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of contracts receivable including retainage, net. In the normal course of business, the Company provides credit to its customers and does not generally require collateral. The Company monitors concentrations of credit risk associated with these receivables on an ongoing basis. The Company has not historically experienced significant credit losses, due primarily to management’s assessment of customers’ credit ratings. The Company principally deals with recurring customers, state and local governments and well-known local companies whose reputations are known to management. The Company performs credit checks for significant new customers and generally requires progress payments for significant projects. The Company generally has the ability to file liens against the property if payments are not made on a timely basis. No single customer accounted for more than 10% of the Company’s contracts receivable including retainage, net balance at June 30, 2021 or September 30, 2020.

Projects performed for various Departments of Transportation accounted for 35.9% and 36.8% of consolidated revenues for the three months ended June 30, 2021 and 2020, respectively, and for 30.7% and 32.3% of consolidated revenues for the nine months ended June 30, 2021 and 2020, respectively. Customers that accounted for more than 10.0% of consolidated revenues during any of those periods are presented below.

	% of Consolidated Revenues
	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Alabama Department of Transportation	10.9	%	13.2	%	9.3	%	11.1	%
North Carolina Department of Transportation	12.2	%	9.0	%	8.7	%	8.4	%

Revenues from Contracts with Customers

The Company derives all of its revenues from contracts with its customers, predominantly by performing construction services for both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports and commercial and residential developments. These projects are performed for a mix of federal, state, municipal and private customers. In addition, the Company derives revenues from the sale of construction materials, including HMA, aggregates, liquid asphalt cement and ready-mix concrete to third-party public and private customers pursuant to contracts with those customers. The following table reflects, for the periods presented, (i) the percentage of revenues generated from public infrastructure construction projects and the sale of construction materials to public customers and (ii) the percentage of revenues generated from private infrastructure construction projects and the sale of construction materials to private customers.

	% of Consolidated Revenues
	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Private	38.5	%	30.9	%	40.0	%	36.1	%
Public	61.5	%	69.1	%	60.0	%	63.9	%

Revenues derived from construction projects are recognized over time as the Company satisfies its performance obligations by transferring to the customer control of the asset created or enhanced by the project. Recognition of revenues and cost of revenues for construction projects requires significant judgment by management, including, among other things, estimating total costs expected to be incurred to complete a project and measuring progress toward completion. Management reviews contract estimates regularly to assess revisions of estimated costs to complete a project and measurement of progress toward completion.

Management believes the Company maintains reasonable estimates based on prior experience; however, many factors contribute to changes in estimates of contract costs. Accordingly, estimates made with respect to uncompleted projects are subject to change as each project progresses and better estimates of contract costs become available. All contract costs are recorded as incurred, and revisions to estimated total costs are reflected as soon as the obligation to perform is determined. Provisions are recognized for the full amount of estimated losses on uncompleted contracts whenever evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue, regardless of the stage of completion. When the Company incurs additional costs related to work performed by subcontractors, the Company may be able to utilize contractual provisions to back charge the subcontractors for those costs. A reduction to costs related to back charges is recognized when the estimated recovery is probable and the amount can be reasonably estimated. Contract costs consist of (i) direct costs on contracts, including labor, materials, and amounts payable to subcontractors and

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(ii) indirect costs related to contract performance, such as insurance, employee benefits, and equipment (primarily depreciation, fuel, maintenance and repairs).

Progress toward completion is estimated using the input method, measured by the relationship of total cost incurred through the measurement date to total estimated costs required to complete the project (cost-to-cost method). The Company believes this method best depicts the transfer of goods and services to the customer because it represents satisfaction of the Company’s performance obligation under the contract, which occurs as the Company incurs costs. The Company measures percentage of completion based on the performance of a single performance obligation under its construction projects. Each of the Company’s construction contracts represents a single performance obligation to complete a defined construction project. This is because goods and services promised for delivery to a customer are not distinct, as the customer cannot benefit from any individual portion of the services on its own. All deliverables under a contract are part of a project defined by a customer and represent a series of integrated goods and services that have the same pattern of delivery to the customer and use the same measure of progress toward satisfaction of the performance obligation as the customer’s asset is created or enhanced by the Company. The Company’s obligation is not satisfied until the entire project is complete.

Revenue recognized during a reporting period is based on the cost-to-cost input method applied to the total transaction price, including adjustments for variable consideration, such as liquidated damages, penalties or bonuses, related to the timeliness or quality of project performance. The Company includes variable consideration in the estimated transaction price at the most likely amount to which the Company expects to be entitled or, in the case of liquidated damages or penalties, the most likely amount the Company expects to incur. Such amounts are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company accounts for changes to the estimated transaction price using a cumulative catch-up adjustment.

The majority of the Company’s public construction contracts are fixed unit price contracts. Under fixed unit price contracts, the Company is committed to providing materials or services required by a contract at fixed unit prices (for example, dollars per ton of asphalt placed). The Company’s private customer contracts are primarily fixed total price contracts, also known as lump sum contracts, which require that the total amount of work be performed for a single price. Contract cost is recorded as incurred, and revisions in contract revenue and cost estimates are reflected in the accounting period when known. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract change orders, penalty provisions and final contract settlements, may result in revisions to estimated revenues and costs and are recognized in the period in which the revisions are determined.

Change orders are modifications of an original contract that effectively change the existing provisions of the contract and become part of the single performance obligation that is partially satisfied at the date of the contract modification. This is because goods and services promised under change orders are generally not distinct from the remaining goods and services under the existing contract due to the significant integration of services performed in the context of the contract. Accordingly, change orders are generally accounted for as a modification of the existing contract and a single performance obligation. The Company accounts for the modification using a cumulative catch-up adjustment. Either the Company or its customers may initiate change orders, which may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work.

Revenues derived from the sale of HMA, aggregates, ready-mix concrete, and liquid asphalt are recognized at the point in time at which control of the product is transferred to the customer. Usually, that point in time is when the customer accepts delivery at its facility or receives product in its own transport vehicles from one of the Company’s HMA plants. Upon purchase, the Company generally provides an invoice or similar document detailing the goods transferred to the customer. The Company generally offers payment terms customary in the industry, which typically require payment ranging from point-of-sale to 30 days following purchase.

Income Taxes

The provision for income taxes includes federal and state income taxes. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which the temporary differences are expected to be reversed or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period in which the change is enacted. Management evaluates the realization of deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and deferred tax liabilities are presented on a net basis by taxing authority and classified as non-current on the Consolidated Balance Sheets. The Company classifies income tax-related interest and penalties as interest expense and other expenses, respectively.

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Earnings per Share

Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share attributable to common stockholders is the same as basic net income per share attributable to common stockholders, but includes dilutive unvested stock awards using the treasury stock method.

Derivative Instruments

The Company’s derivative instruments consist of commodity and interest rate swap contracts. None of the Company’s derivative instruments are designated as hedges for accounting purposes under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging. Accordingly, the Company records derivative instruments on its Consolidated Balance Sheets as either an asset or liability measured at fair value and records changes in the fair value of derivatives in current earnings in the Consolidated Statements of Income for the period in which the change occurs. Gains and losses on derivatives are included in cash flows from operating activities.

Fair Value Measurements

The Company measures and discloses certain financial assets and liabilities at fair value. ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are classified using the following hierarchy:

Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data.

Level 3. Inputs are unobservable for the asset or liability and include situations in which there is little, if any, market activity for the asset or liability. The inputs used in the determination of fair value are based on the best information available under the circumstances and may require significant management judgment or estimation.

The Company endeavors to utilize the best available information in measuring fair value.

The Company’s financial instruments include cash and cash equivalents, contracts receivable including retainage and accounts payable reflected as current assets and current liabilities on its Consolidated Balance Sheets at June 30, 2021 and September 30, 2020. Due to the short-term nature of these instruments, management considers their carrying value to approximate their fair value.

The Company also has term loans and a revolving credit facility, as described in Note 8 - Debt. The carrying value of amounts outstanding under these credit facilities is reflected as long-term debt, net of current maturities and current maturities of debt on the Company’s Consolidated Balance Sheets at June 30, 2021 and September 30, 2020. Due to the variable rate or short-term nature of these instruments, management considers their carrying value to approximate their fair value.

The Company also has derivative instruments. The fair value of derivative instruments is based on forward and spot prices, as described in Note 16 - Fair Value Measurements.

Management applies fair value measurement guidance to its impairment analysis for tangible and intangible assets.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported net income.

Note 3 - Accounting Standards

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (“Topic 326”), which introduces an impairment model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The amendments pursuant to Topic 326 were effective for fiscal years beginning after December 15, 2019, including

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interim periods within those fiscal years. The Company adopted this guidance effective October 1, 2020 as required and noted no material impact to the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). This ASU requires customers in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. ASU 2018-15 was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this guidance effective October 1, 2020 as required and noted no material impact to the Company’s consolidated financial statements.

Note 4 - Business Acquisitions

North Carolina Acquisitions

During the three months ended December 31, 2021, a subsidiary of the Company purchased four HMA production and paving companies on the following dates and based in the following locations: (i) on October 8, 2020, in Carthage, North Carolina, (ii) on October 30, 2020, in Ahoskie, North Carolina, (iii) on December 3, 2020, in Raleigh, North Carolina, and (iv) on December 18, 2020, in Kitty Hawk, North Carolina . The acquired businesses added thirteen HMA plants in central and eastern North Carolina, providing the Company with access to additional markets and expanding its footprint in the state.

On June 22, 2021, a subsidiary of the Company acquired a grading and site work company in Wilson, North Carolina, complementing other recent acquisitions in the state and further enhancing the Company's vertical integration of construction services across multiple markets in North Carolina.

The acquisitions were accounted for as business combinations in accordance with ASC 805. The provisional allocation of the purchase price to assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, was determined in accordance with the methodology described under the heading “Fair Value Measurements” above in Note 2 - Significant Accounting Policies. Goodwill primarily represents the assembled workforce and synergies expected to result from the acquisition. Upon finalizing the accounting for these transactions, management expects to ascribe value to other identifiable intangible assets, including customer relationships and customer backlog, which will reduce the provisional amount allocated to goodwill.

For these acquisitions, total consideration is $93.6 million, of which $92.3 million has been paid with cash on hand as of June 30, 2021. The total consideration has been provisionally allocated as follows: $4.2 million of inventory, $56.6 million of property, plant and equipment, $32.1 million of goodwill, and $0.7 million of other intangibles, which are expected to be deductible for income tax purposes. Included in total consideration is a payable to sellers of $1.3 million for purchase price adjustments, which is included in accounts payable at June 30, 2021. The Consolidated Statements of Income includes $31.4 million of revenue and $(1.0) million of net loss attributable to the operations of these acquisitions for the three months ended June 30, 2021 and $50.7 million of revenue and $(4.2) million of net loss attributable to the operations of these acquisitions for the nine months ended June 30, 2021 from their respective acquisition dates.

Results of Operations of Acquisitions Completed Subsequent to June 30, 2020

Unaudited consolidated pro forma revenues and net income, as if acquisitions completed by the Company subsequent to June 30, 2020 (including those described above) had been completed as of October 1, 2019 are as follows (in thousands):

	For the Three Months Ended June 30,
	2021		2020
Pro forma revenues	$	268,401	$	255,186
Pro forma net income	$	9,785	$	15,192

	For the Nine Months Ended June 30,
	2021		2020
Pro forma revenues	$	669,616	$	657,461
Pro forma net income	$	13,961	$	20,936

Pro forma information is presented for informational purposes and may not be indicative of revenue or net income that would have been achieved if the acquisitions had actually been completed as of October 1, 2019.

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Note 5 - Contracts Receivable Including Retainage, net

Contracts receivable including retainage, net consisted of the following at June 30, 2021 and September 30, 2020 (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Contracts receivable	$	137,958	$	112,197
Retainage	28,197		21,013
	166,155		133,210
Allowance for doubtful accounts	(1,850)		(1,440)
Contracts receivable including retainage, net	$	164,305	$	131,770

Retainage receivables have been billed, but are not due until contract completion and acceptance by the customer.

Note 6 - Contract Assets and Liabilities

Costs and estimated earnings compared to billings on uncompleted contracts at June 30, 2021 and September 30, 2020 consisted of the following (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Costs on uncompleted contracts	$	979,380	$	876,229
Estimated earnings to date on uncompleted contracts	108,771		101,055
	1,088,151		977,284
Billings to date on uncompleted contracts	(1,103,936)		(1,003,115)
Net billings in excess of costs and estimated earnings on uncompleted contracts	$	(15,785)	$	(25,831)

Significant changes to balances of costs and estimated earnings in excess of billings (contract asset) and billings in excess of costs and estimated earnings (contract liability) on uncompleted contracts from September 30, 2020 to June 30, 2021 are presented below (in thousands):

	Costs and Estimated Earnings in Excess of Billings on  Uncompleted Contracts		Billings in Excess of Costs and Estimated Earnings on  Uncompleted Contracts		Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
September 30, 2020	$	7,873	$	(33,704)	$	(25,831)
Changes in revenue billed, contract price or cost estimates	7,897		2,149		10,046
June 30, 2021 (unaudited)	$	15,770	$	(31,555)	$	(15,785)

At June 30, 2021, the Company had unsatisfied or partially unsatisfied performance obligations under construction project contracts representing approximately $627.5 million in aggregate transaction price. The Company expects to earn revenue as it satisfies its performance obligations under those contracts in the amount of approximately $282.3 million during the remainder of the fiscal year ending September 30, 2021 and $345.2 million thereafter.

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Note 7 - Property, Plant and Equipment

Property, plant and equipment at June 30, 2021 and September 30, 2020 consisted of the following (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Construction equipment	$	301,821	$	253,157
Plants	123,124		102,392
Land and improvements	49,016		38,760
Quarry reserves	24,378		22,092
Buildings	24,379		18,307
Furniture and fixtures	6,054		5,648
Leasehold improvements	1,135		1,135
Total property, plant and equipment, gross	529,907		441,491
Accumulated depreciation, depletion and amortization	(241,061)		(209,532)
Construction in progress	7,851		5,271
Total property, plant and equipment, net	$	296,697	$	237,230

Depreciation and depletion expense related to property, plant and equipment was $12.4 million and $10.0 million for the three months ended June 30, 2021 and 2020, respectively, and $35.6 million and $28.9 million for the nine months ended June 30, 2021 and 2020, respectively.

Note 8 - Debt

The Company maintains credit facilities to finance acquisitions, to fund the purchase of real estate, construction equipment, plants and other fixed assets, and for general working capital purposes. Debt at June 30, 2021 and September 30, 2020 consisted of the following (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Long-term debt:
Term Loan	$	200,000	$	92,850
Revolving Credit Facility	—		—
Total long-term debt	200,000		92,850
Deferred debt issuance costs	(1,409)		(797)
Current maturities of long-term debt	(10,000)		(13,000)
Long-term debt, net of current maturities	$	188,591	$	79,053

Since June 24, 2021, the Company and each of its subsidiaries have been parties to a Second Amended and Restated Credit Agreement with BBVA USA, as administrative agent, joint lead arranger, sole bookrunner and lender, Regions Bank and BofA Securities, Inc., each as a joint arranger, and certain other lenders (as amended and restated, the “Credit Agreement”). The Credit Agreement provides for a term loan in an initial aggregate principal amount of $200 million (the “Term Loan”) and a revolving credit facility in an initial aggregate principal amount of $225 million (the “Revolving Credit Facility”). Among other things, the proceeds of the Term Loan were used to refinance indebtedness of the Company and its subsidiaries under its prior credit facility.

The Term Loan, inclusive of any incremental borrowings made in the form of a term loan, will amortize in quarterly installments commencing on September 30, 2021 in an amount (subject, in each case, to adjustments for prior mandatory and voluntary prepayments of principal) equal to: (a) 1.25% of the original principal amount of the Term Loan on September 30, 2021 and on each of the following eleven quarter-end payment dates, and (b) 1.875% of the original principal amount of the Term Loan on each of the next seven quarter-end payment dates. The annual interest rates applicable to advances will be calculated, at the Company’s option, by using either a base rate or LIBOR, in each case plus an applicable margin percentage that corresponds to the Company’s consolidated net leverage ratio. Upon the occurrence of certain triggering events relating to the end of the LIBOR reference rate, a different benchmark rate will be selected to replace LIBOR as the reference rate for interest accruing on certain advances. All outstanding advances under the Term Loan and Revolving Credit Facility are due and payable in full on June 24, 2026. Subject to various requirements, the Company generally may (and, under certain circumstances, must), prepay all or a portion of the outstanding balance

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of the advances, together with accrued interest thereon, prior to their contractual maturity. The obligations of the Company and its subsidiaries under the Credit Agreement are secured by a first priority security interest in substantially all of the Company’s assets.

Note 9 - Equity

Shares of Class A common stock and Class B common stock are identical in all respects, except with respect to voting rights, conversion rights and transfer restrictions applicable to shares of Class B common stock. The holders of Class A common stock are entitled to one vote per share, and the holders of Class B common stock are entitled to ten votes per share. The holders of Class A common stock and Class B common stock vote together as a single class on all matters submitted to a vote of stockholders, including the election of directors, unless otherwise required by applicable law or the Company’s certificate of incorporation or bylaws. Shares of Class B common stock are convertible into shares of Class A common stock at any time at the option of the holder or upon any transfer, subject to certain limited exceptions. In addition, upon the election of the holders of a majority of the then-outstanding shares of Class B common stock, all outstanding shares of Class B common stock will be converted into shares of Class A common stock. Once converted into shares of Class A common stock, shares of Class B common stock will not be reissued. Class A common stock is not convertible into any other class of the Company’s capital stock.

Conversion of Class B Common Stock to Class A Common Stock

During the three months ended June 30, 2021, certain stockholders of the Company converted a total of 787,001 shares of Class B common stock into shares of Class A common stock on a one-for-one basis. As of June 30, 2021, there were 36,506,570 shares of Class A common stock and 15,785,908 shares of Class B common stock outstanding.

Restricted Stock Awards

During the nine months ended June 30, 2021, the Company awarded a total of 510,733 restricted shares of Class A common stock to Company management under the Construction Partners, Inc. 2018 Equity Incentive Plan (the “Equity Incentive Plan”).

Additional information about these transactions is set forth in Note 13 - Equity-Based Compensation.

Note 10 - Earnings Per Share

As discussed in Note 9 - Equity, the Company has Class A common stock and Class B common stock. Because the only differences between the two classes of common stock are related to voting rights, conversion rights and transfer restrictions applicable to shares of Class B common stock, the Company has not presented earnings per share under the two-class method, as the earnings per share are the same for both Class A common stock and Class B common stock. The following table summarizes the weighted-average number of basic common shares outstanding and the calculation of basic earnings per share for the periods presented (unaudited in thousands, except share and per share amounts):

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Numerator
Net income (loss) attributable to common shareholders	$	9,340	$	15,747	$	12,276	$	22,745
Denominator
Weighted average number of common shares outstanding, basic	51,686,735		51,489,211		51,620,143		51,489,211
Net income (loss) per common share attributable to common shareholders, basic	$	0.18	$	0.31	$	0.24	$	0.44

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The following table summarizes the calculation of the weighted-average number of diluted common shares outstanding and the calculation of diluted earnings per share for the periods presented (unaudited in thousands, except share and per share amounts):

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Numerator
Net income (loss) attributable to common stockholders	$	9,340	$	15,747	$	12,276	$	22,745
Denominator
Weighted average number of basic common shares outstanding, basic	51,686,735		51,489,211		51,620,143		51,489,211
Effect of dilutive securities:
Restricted stock grants under 2018 Equity Incentive Plan	177,668		157,174		106,852		134,416
Weighted average number of diluted common shares outstanding	51,864,403		51,646,385		51,726,994		51,623,627
Net income (loss) per diluted common share attributable to common stockholders	$	0.18	$	0.30	$	0.24	$	0.44

Note 11 - Provision for Income Taxes

The Company files a consolidated United States federal income tax return and income tax returns in various states. Management evaluated the Company’s tax positions based on appropriate provisions of applicable tax laws and regulations and believes that they are supportable based on their specific technical merits and the facts and circumstances of the respective transactions.                                                                

The Company’s effective income tax rate for the three months ended June 30, 2021 and 2020 was 33.0% and 23.3%, respectively. The Company’s effective tax rate for the nine months ended June 30, 2021 and 2020 was 32.0% and 22.5%, respectively. The effective income tax rate for the three and nine months ended June 30, 2021 was unfavorably impacted by a non-deductible legal settlement and related legal expenses, as described in Note 19 - Legal Proceedings.

Note 12 - Related Parties

On December 31, 2017, the Company sold an indirect wholly owned subsidiary to an immediate family member of an executive officer of the Company (“Purchaser of Subsidiary”) in consideration for an interest-bearing note receivable in the amount of $1.0 million, which approximated the net book value of the disposed entity. At June 30, 2021, $0.1 million and $0.5 million was reflected on the Company’s Consolidated Balance Sheets within other current assets and other assets, respectively, representing the remaining balances on this note receivable. In connection with this transaction, the Company also received an interest-bearing note receivable from the disposed entity (“Disposed Entity”) on December 31, 2017 in the amount of $1.0 million representing certain accounts payable of the disposed entity that were paid by the Company. At June 30, 2021, $0.1 million and $0.3 million was reflected on the Company’s Consolidated Balance Sheets within other current assets and other assets, respectively, representing the remaining balances on this note receivable. Remaining principal and interest payments are scheduled to be made in periodic installments during fiscal year 2021 through fiscal year 2026.

Prior to its acquisition by the Company, a current subsidiary of the Company advanced funds to an entity owned by an immediate family member of an officer of the Company in connection with a land development project. The obligations of the borrower entity to repay the advances were guaranteed by a separate entity owned by the same family member of the officer. Amounts outstanding under the advances did not bear interest and matured in full in March 2021. In March 2021, the subsidiary of the Company amended and restated the terms of the repayment obligation, as a result of which the officer personally assumed the remaining balance of the obligation. No new amounts were advanced to the officer by the Company or any subsidiary or affiliate thereof in connection with the transaction. Under the amended and restated terms, the officer executed a promissory note in favor of the Company’s subsidiary in the principal amount of $0.8 million. The note bears simple interest at a rate of 4.0% and requires annual minimum payments of $0.1 million inclusive of principal and accrued interest, with any remaining principal and accrued interest due and payable in full on December 31, 2027. As security for his payment obligations, the officer pledged as collateral 30,000 shares of the 140,389 shares of Class B common stock that had previously been pledged as collateral and 7,500 shares of Class A common stock owned by the officer personally. Amounts outstanding under the note are reflected on the Company’s Consolidated Balance Sheets within other current assets and other assets (“Land Development Project”).

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From time to time, the Company conducts or has conducted business with the following related parties:

•Entities owned by immediate family members of an executive officer of the Company perform subcontract work for a subsidiary of the Company, including trucking and grading services (“Subcontracting Services”).

•From time to time, a subsidiary of the Company provides construction services to various companies owned by family members of an executive officer of the Company (“Construction Services”).

•Since June 1, 2014, the Company has been a party to an access agreement with Island Pond Corporate Services, LLC, which provides a location for the Company to conduct business development activities from time to time on a property owned by the Executive Chairman of the Company’s Board of Directors (“Island Pond”).

•The Company purchases vehicles from an entity owned by a family member of an executive officer of the Company (“Vehicles - Purchases”).

•The Company rents vehicles from an entity owned by a family member of an executive officer of the Company (“Vehicles - Rent Expense”).

•A family member of an executive officer of the Company provides consulting services to a subsidiary of the Company (“Consulting Services”).

•The Company is party to a management services agreement with SunTx, under which the Company pays SunTx $0.27 million per fiscal quarter and reimburses certain travel and other out-of-pocket expenses associated with services rendered under the management services agreement.

The following table presents revenues earned and expenses incurred by the Company during the three and nine months ended June 30, 2021 and 2020, and accounts receivable and payable balances at June 30, 2021 and September 30, 2020, related to transactions with the related parties described above (in thousands):

	Revenue Earned (Expense Incurred)												Accounts Receivable (Payable)
	For the Three Months Ended June 30,						For the Nine Months Ended June 30,						June 30,		September 30,
	2021			2020			2021			2020			2021		2020
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Purchaser of Subsidiary	$	—		$	—		$	—		$	—		$	621	$	621
Disposed Entity	—			—			—			—			396		396
Land Development Project	7			—			8			—			782		774
Subcontracting Services	(2,689)		(1)	(2,983)		(1)	(5,292)		(1)	(5,008)		(1)	(521)		(654)
Construction Services	17		(2)	—		(2)	136		(2)	1,534		(2)	208		123
Island Pond	(80)		(2)	(80)		(2)	(240)		(2)	(240)		(2)	—		—
Vehicles - Purchases	(128)		(3)	(525)		(3)	(536)		(3)	(639)		(3)	—		—
Vehicles - Rent Expense	(31)		(2)	(161)		(2)	(158)		(2)	(562)		(2)	—		—
Consulting Services	—		(2)	(76)		(2)	(32)		(2)	(219)		(2)	—		—
SunTx	(412)		(2)	(355)		(2)	(1,550)		(2)	(1,026)		(2)	—		—
(1) Cost is reflected as cost of revenues on the Company’s Consolidated Statements of Income.
(2) Cost is reflected as general and administrative expenses on the Company’s Consolidated Statements of Income.
(3) Purchases reflected in property, plant and equipment, net, on the Company's Consolidated Balance Sheets.

Note 13 - Equity-Based Compensation

During the fiscal year ended September 30, 2019, the Company awarded a total of 292,534 restricted shares of Class A common stock to its non-employee directors under the Equity Incentive Plan in lieu of any cash compensation. The grants are classified as equity awards. The aggregate grant date fair value of these restricted awards was $3.8 million. During the three and nine months ended June 30, 2021, the Company recorded compensation expense in connection with these grants in the amount of $0.3 million and $1.0 million, respectively, which is reflected as general and administrative expenses in the Company’s Consolidated Statements of Income. At June 30, 2021, there was approximately $0.7 million of unrecognized compensation expense related to these awards.

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During the quarter ended March 31, 2021, the Company awarded a total of 510,733 restricted shares of Class A common stock to Company management under the Equity Incentive Plan. The grants are classified as equity awards. The aggregate grant date fair value of these restricted awards was $13.6 million. During the three and nine months ended June 30, 2021, the Company recorded compensation expense in connection with these grants in the amount of $1.0 million and $1.2 million, respectively, which is reflected as general and administrative expenses in the Company’s Consolidated Statements of Income. At June 30, 2021, there was approximately $12.4 million of unrecognized compensation expense related to these awards.

The underlying shares subject to awards granted under the Equity Incentive Plan vested or will vest, as applicable, as follows:

Fiscal Year	Number of Shares
2021	207,706
2022	110,194
2023	12,683
2024	242,684
2025	230,000
Total	803,267

Note 14 - Leases

The Company leases certain facilities, office space, vehicles and equipment. As of June 30, 2021, operating leases under ASC Topic 842, Leases, were included in (i) operating lease right-of use assets, (ii) current portion of operating lease liabilities and (iii) operating lease liabilities, net of current portion on the Company’s Consolidated Balance Sheets in the amounts of $6.7 million, $1.5 million and $5.3 million, respectively. As of June 30, 2021, the Company had no lease contracts that had not yet commenced but had created significant rights and obligations.

The components of lease expense were as follows for the periods presented (in thousands):

	For the Three Months Ended June 30,
	2021		2020
	(unaudited)		(unaudited)
Operating lease cost	$	593	$	875
Short-term lease cost	3,732		3,229
Total lease expense	$	4,325	$	4,104

	For the Nine Months Ended June 30,
	2021		2020
	(unaudited)		(unaudited)
Operating lease cost	$	1,946	$	2,652
Short-term lease cost	8,857		10,592
Total lease expense	$	10,803	$	13,244

Short-term leases (i.e., those with terms of 12 months or less) are not capitalized but are expensed on a straight-line basis over the lease term. The majority of the Company's short-term leases relate to equipment used on construction projects. These leases are entered into at periodic rental rates for an unspecified duration and typically have a termination for convenience provision. Short-term lease cost includes leases with terms of one month or less.

As of June 30, 2021, the weighted-average remaining term of the Company’s leases was 9.2 years, and the weighted-average discount rate was 3.89%. As of June 30, 2021, the lease liability was equal to the present value of the remaining lease payments, discounted using the incremental borrowing rate on the Company’s secured debt using a single maturity discount rate, as such rate is not materially different from the discount rate applied to each of the leases in the portfolio.

The following table summarizes the Company’s undiscounted lease liabilities outstanding as of June 30, 2021 (in thousands):

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Fiscal Year	Amount (unaudited)
Remainder of 2021	$	511
2022	1,489
2023	1,092
2024	834
2025	663
2026 and thereafter	3,698
Total future minimum lease payments	$	8,287
Less: imputed interest	1,466
Total	$	6,821

The Company has lease agreements associated with quarry facilities under which the Company makes royalty payments. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue was $0.3 million for the three months ended June 30, 2021 and 2020 and $0.7 million and $0.8 million for the nine months ended June 30, 2021 and 2020, respectively.

Note 15 - Investment in Derivative Instruments

The Company’s operations expose it to a variety of market risks, including the effects of changes in commodity prices and changes in interest rates. As part of its risk management process, the Company began entering into commodity swap transactions through regulated commodity exchanges in February 2020. To manage interest rate exposure, the Company has entered into derivative instruments using interest rate swaps. The objective of entering into interest rate swaps is to eliminate the variability of cash flows associated with movements in interest rates over the life of the loans. At June 30, 2021, the aggregate notional value of these interest rate swap agreements was $40.3 million.

The following tables represent the approximate amount of realized and unrealized gains (losses) recognized in earnings on commodity derivative contracts and interest rate swap agreements for the three and nine months ended June 30, 2021 and 2020 and the fair value of these derivatives as of June 30, 2021 and September 30, 2020 (in thousands):

	For the Three Months Ended June 30, 2021 (unaudited)						For the Nine Months Ended June 30, 2021 (unaudited)
	Change in						Change in
Income Statement Classification	Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)		Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)
Cost of revenues	$	302	$	632	$	934	$	257	$	2,390	$	2,647
Interest expense, net	(163)		132		(31)		(511)		751		240
Total	$	139	$	764	$	903	$	(254)	$	3,141	$	2,887

	For the Three Months Ended June 30, 2020 (unaudited)						For the Nine Months Ended June 30, 2020 (unaudited)
	Change in						Change in
Income Statement Classification	Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)		Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)
Cost of revenues	$	(269)	$	394	$	125	$	(290)	$	(403)	$	(693)
Interest expense, net	(217)		(120)		(337)		(266)		(1,586)		(1,852)
Total	$	(486)	$	274	$	(212)	$	(556)	$	(1,989)	$	(2,545)

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	June 30, 2021		September 30, 2020
Balance Sheet Classification	(unaudited)
Prepaid expenses and other current assets	$	1,203	$	—
Other assets	684		—
Accrued expense and other current liabilities - commodity swaps	—		(183)
Other long-term liabilities - commodity swaps	—		(320)
Other long-term liabilities - interest rate swaps	(957)		(1,708)
Net unrealized gain (loss) position	$	930	$	(2,211)

Note 16 - Fair Value Measurements

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and September 30, 2020 under ASC 820 (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
	Level 2		Level 2
Assets
Commodity swaps	$	1,887	$	—
Liabilities
Commodity swaps	$	—	$	503
Interest rate swaps	957		1,708

Derivative liabilities included in Level 2 include commodity and interest rate swap contracts. The fair values of the Company’s Level 2 derivative liabilities are estimated using an analysis of the expected cash flow of the contract in combination with marketable observable inputs, including forward and spot prices for commodity swaps and interest rate curves for interest rate swaps.

Note 17 - Purchase Commitments

As of June 30, 2021, the Company had unconditional purchase commitments for diesel fuel in the normal course of business in the aggregate amount of $0.2 million. As of June 30, 2021, the Company’s purchase commitments for the remainder of fiscal year 2021 and annually thereafter were as follows (in thousands):

Fiscal Year	Amount (unaudited)
Remainder of 2021	$	192
2022	50
Total	$	242

Note 18 - COVID-19 Pandemic

The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business, including how it has impacted and may continue to impact the Company’s customers, employees, suppliers, and vendors. While the Company did not incur significant disruptions in its operations from the COVID-19 pandemic during the three and nine months ended June 30, 2021, due to the uncertainties surrounding the COVID-19 pandemic, it is unable to predict the impact that the COVID-19 pandemic will have on its financial position, operating results and cash flows in future periods.

Note 19 - Legal Proceedings

From time to time, we are subject to various legal proceedings, regulatory matters or fines that arise in the ordinary course of business.

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On April 26, 2021, the Company entered into a settlement agreement with a former stockholder of the Company relating to claims arising out of the former stockholder’s sale of shares of the Company’s common stock in a private transaction prior to the Company's initial public offering. Under the settlement agreement, the Company paid $3.2 million to the former stockholder in two installments in exchange for a release of all claims made by the former stockholder against the Company in the arbitration proceeding. As of June 30, 2021, $1.7 million of the remaining settlement payment was included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. The aforementioned settlement and associated legal expenses were determined to be non-deductible expenses, which resulted in an unfavorable permanent tax difference for the three and nine months ended June 30, 2021.

Note 20 - Subsequent Events

Alabama Acquisition

On July 30, 2021, a subsidiary of the Company acquired the operations of an HMA production and paving company and its affiliated aggregates company headquartered in Cullman, Alabama. As a result of the acquisition, the Company added four HMA plants, four aggregate facilities, and a diverse fleet of trucks and construction equipment to support its operations in central and northern Alabama.

North Carolina Acquisition

On August 2, 2021, a subsidiary of the Company acquired a crushed stone and aggregates facility located near Goldston, North Carolina. The purchase enhanced the Company’s vertical integration strategy of construction materials to support its HMA production operations. The Company expects to use the aggregates mined from this facility to supply multiple HMA plants that the Company acquired during the first quarter of fiscal 2021.

Both acquisitions will be accounted for as business combinations in accordance with ASC 805. The combined purchase price of $112.9 million (exclusive of consideration to the seller for inventory assets acquired at the Goldston, North Carolina facility) was paid from cash on hand at closing. In each case, the provisional allocation of the purchase price to assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, was determined in accordance with the methodology described under Fair Value Measurements above in Note 2 - Significant Accounting Policies. The amount of the purchase price exceeding the preliminary net fair value of identifiable assets acquired and liabilities assumed is expected to be recorded as goodwill, which is deductible for income tax purposes. Goodwill primarily represents the assembled workforce and synergies expected to result from the acquisition. Upon finalizing the accounting for these transactions, management expects to ascribe value to other identifiable intangible assets, including customer relationships and customer backlog, which will reduce the preliminary amount allocated to goodwill.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This discussion and analysis of our financial condition and results of operations is intended to assist in understanding and assessing the trends and significant changes in our results of operations and financial condition during the period covered by this report. Historical results may not be indicative of future performance. This discussion includes forward-looking statements that reflect our plans, estimates and beliefs. Such statements involve risks and uncertainties. Our actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors, including those set forth under the headings “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements.” This discussion should be read in conjunction with our unaudited consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and notes thereto included in the 2020 Form 10-K. In this discussion, we use certain non-GAAP financial measures. Explanations of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are included in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Investors should not consider non-GAAP financial measures in isolation or as substitutes for financial information presented in compliance with GAAP.

Overview

We are a civil infrastructure company that specializes in the building and maintenance of transportation networks. Our operations leverage a highly skilled workforce, strategically located HMA plants, substantial construction assets and select material deposits. We provide construction products and services to both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports and commercial and residential sites in the southeastern United States.

Our public projects are funded by federal, state and local governments and include projects for roads, highways, bridges, airports and other forms of infrastructure. Public transportation infrastructure projects historically have been a relatively stable portion of state and federal budgets and represent a significant share of the United States construction market. Federal funds are allocated on a state-by-state basis, and each state is required to match a portion of the federal funds that it receives. Federal highway spending uses funds predominantly from the Highway Trust Fund, which derives its revenues from fuel taxes and other user fees.

In addition to public infrastructure projects, we provide a wide range of large site work construction and HMA paving services to private construction customers, including commercial and residential developers and local businesses.

Recent Developments

COVID-19

We did not incur significant disruptions from the COVID-19 pandemic during the three or nine months ended June 30, 2021. However, we continue to closely monitor the impact of the pandemic on all aspects of our business, including its impact on our customers, employees, suppliers and vendors. Among the primary risks to our business arising from the pandemic are (i) employee absences, which could adversely affect our productivity and our ability to complete projects in accordance with our contractual obligations, and could require us to temporarily close our facilities or project sites, (ii) potential disruptions in our supply chains for raw materials or equipment, whether as a result of facility closures or otherwise, which could increase our labor and materials costs and impair our ability to manufacture HMA or the ability of our subcontractors to complete their required tasks, and (iii) the impact of the COVID-19 pandemic on our customers, which could cause these customers to cancel or delay current or prospective projects or become delinquent in their payments to us for work that we have performed. These risks have materialized in varying degrees since the beginning of the pandemic, but none of these risks, individually or in the aggregate, have significantly impacted our operations to date. In addition, we continue to monitor the impact of the COVID-19 pandemic on fuel and sales tax revenues, which in turn drive funding levels for public projects in our markets.

The extent to which our operations may be impacted by the COVID-19 pandemic will depend on future developments, which are highly uncertain, including the duration of the pandemic, the emergence of different COVID-19 variants, the efficacy and adoption rates of vaccines, and actions by government authorities to contain the outbreak or mitigate the impact of the pandemic. Due to the continued uncertainties surrounding the COVID-19 pandemic, we are unable to predict the impact that the COVID-19 pandemic will have on our financial position, operating results and cash flows in future periods.

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North Carolina Acquisitions

During the nine months ended June 30, 2021, we acquired the operations of four HMA production and paving companies and a grading and site work contractor in North Carolina. The acquired businesses collectively added thirteen HMA plants in North Carolina, providing us with access to additional markets and expanding our footprint in the state. For further discussion regarding these transactions, see Note 4 - Business Acquisitions to the unaudited consolidated financial statements included elsewhere in this report.

Inflationary Trends

We are subject to the effects of inflation through wage pressures, increases in the cost of raw materials used to produce HMA, and increases in other items, such as fuel, concrete and steel. During the three months ended June 30, 2021, we began to experience an upward trend in several of these inflation-sensitive items. We seek to recover increasing costs by obtaining higher prices for our products or by including the anticipated price increases in the cost of our bids. Due to the relatively short-term duration of our construction contracts, we are generally able to reduce our exposure to price increases on new contracts, but we are limited in our ability to pass through increased costs for projects already in our backlog. Going forward, continued cost inflation in these areas may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand.

How We Assess Performance of Our Business

Revenues

We derive our revenues predominantly by providing construction products and services for both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports and commercial and residential sites. Our projects represent a mix of federal, state, municipal and private customers. We also derive revenues from the sale of HMA, aggregates, ready-mix concrete and liquid asphalt cement to customers. Revenues derived from projects are recognized as performance obligations are satisfied over time, measured according to the relationship of total cost incurred as of a given determination date to the total estimated contract costs. Changes in job performance, job conditions and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to estimated costs and income, and are recognized in the period in which the revisions are determined. Revenues derived from the sale of HMA, aggregates, ready-mix concrete and liquid asphalt cement are recognized when risks associated with ownership have passed to the customer.

Gross Profit

Gross profit represents revenues less cost of revenues. Cost of revenues consists of all direct and indirect costs of construction contracts, including raw materials, labor, equipment costs, depreciation, lease expenses, subcontract costs and other expenses at our HMA plants, aggregate mining facilities and liquid asphalt terminal. Our cost of revenues is directly affected by fluctuations in commodity prices, primarily liquid asphalt and diesel fuel. From time to time, when appropriate, we limit our exposure to changes in commodity prices by entering into forward purchase commitments. In addition, our public infrastructure contracts often provide for price adjustments based on fluctuations in certain commodity-related product costs. These price adjustment provisions are in place for most of our public infrastructure contracts, and we seek to include similar provisions in our private contracts.

Depreciation, Depletion and Amortization

We carry property, plant and equipment on our balance sheet at cost, net of accumulated depreciation, depletion and amortization. Depreciation on property, plant and equipment is computed on a straight-line basis over the estimated useful life of the asset. Amortization expense is the periodic expense related to leasehold improvements and intangible assets. Leasehold improvements are amortized over the lesser of the life of the underlying asset or the remaining lease term. Our intangible assets were recognized as a result of certain acquisitions and are generally amortized on a straight-line basis over the estimated useful lives of the assets. Quarry reserves are depleted in accordance with the units-of-production method as aggregate is extracted, using the initial allocation of cost based on proven and probable reserves.

General and Administrative Expenses

General and administrative expenses include costs related to our operational offices that are not allocated to direct contract costs and expenses related to our corporate offices and consist primarily of salaries and personnel costs for our administration, finance and accounting, legal, information systems, human resources and certain managerial employees. Additional expenses include audit, consulting and professional fees, stock-based compensation expense, travel, insurance, office space rental costs, property taxes and other corporate and overhead expenses.

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Gain on Sale of Equipment, Net

In the normal course of business, we sell construction equipment for various reasons, including when the cost of maintaining the asset exceeds the cost of replacing it. The gain or loss on sale of equipment reflects the difference between the carrying value at the date of disposal of the equipment and the net consideration received from the sale of equipment during the period.

Interest Expense, Net

Interest expense, net primarily represents interest incurred on our long-term debt, such as the Term Loan and the Revolving Credit Facility, as well as the changes in fair values of interest swap agreements and amortization of deferred debt issuance costs. These amounts are partially offset by interest income earned on short-term investments of cash and cash equivalents balances in excess of our current operating needs.

Other Income (Expense)

Other income primarily represents other miscellaneous income items.

Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Net Income

Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision for income taxes, (iii) depreciation, depletion and amortization of long-lived assets, (iv) equity-based compensation expense, (v) loss on extinguishment of debt (vi) certain management fees and expenses and (vii) nonrecurring legal settlement costs and associated legal expenses unrelated to the Company's core operations. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues for each period. Adjusted net income represents net income before nonrecurring legal settlement costs and associated legal expenses unrelated to the Company's core operations. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as an alternative to net income or any other performance measure derived in accordance with GAAP as an indicator of operating performance. We present Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted net income (loss) because management uses these measures as key performance indicators, and we believe that securities analysts, investors and others use these measures to evaluate companies in our industry. Our calculation of these measures may not be comparable to similarly named measures reported by other companies. Potential differences may include differences in capital structures, tax positions and the age and book depreciation of intangible and tangible assets.

The following table presents a reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to Adjusted EBITDA, and the calculation of Adjusted EBITDA Margin for the periods presented (in thousands, except percentages):

	For the Three Months Ended June 30,						For the Nine Months Ended June 30,
	2021			2020			2021			2020
Net income	$	9,340		$	15,747		$	12,276		$	22,745
Interest expense, net	568			575			1,334			2,690
Provision for income taxes	4,600			4,772			5,767			6,622
Depreciation, depletion and amortization of long-lived assets	12,626			10,034			36,011			29,065
Equity-based compensation expense	1,347			390			2,202			1,175
Management fees and expenses (1)	412			355			1,550			1,026
Settlement of legal claim and associated legal expenses (2)	134			119			4,366			216
Adjusted EBITDA	$	29,027		$	31,992		$	63,506		$	63,539
Revenues	$	261,656		$	217,041		$	631,697		$	561,034
Adjusted EBITDA Margin	11.1		%	14.7		%	10.1		%	11.3		%

(1)Reflects fees and reimbursement of certain travel expenses under a management services agreement with SunTx (see Note 12 - Related Parties to the unaudited consolidated financial statements included elsewhere in this Quarterly Report).

(2)Reflects $3.2 million legal settlement and associated legal expenses (see Note 19 - Legal Proceedings to the unaudited consolidated financial statements included elsewhere in this Quarterly Report).

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The following table presents a reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to adjusted net income for the periods presented (in thousands):

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Net income	$	9,340	$	15,747	$	12,276	$	22,745
Settlement of legal claim (1)	—		—		3,200		—
Legal expenses associated with settlement of legal claim	134		119		1,166		216
Adjusted net income	$	9,474	$	15,866	$	16,642	$	22,961

(1)Reflects $3.2 million legal settlement (see Note 19 - Legal Proceedings to the unaudited consolidated financial statements included elsewhere in this Quarterly Report).

Results of Operations

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020

The following table sets forth selected financial data for the three months ended June 30, 2021 and 2020 (in thousands, except percentages):

									Change From the Three Months Ended
	For the Three Months Ended June 30,								June 30, 2020
									to the Three Months Ended
	2021				2020				June 30, 2021
	Dollars		% of Revenues		Dollars		% of Revenues		$  Change		% Change
Revenues	$	261,656	100.0	%	$	217,041	100.0	%	$	44,615	20.6	%
Cost of revenues	225,039		86.0	%	180,155		83.0	%	44,884		24.9	%
Gross profit	36,617		14.0	%	36,886		17.0	%	(269)		(0.7)	%
General and administrative expenses	(23,195)		(8.9)	%	(16,852)		(7.8)	%	(6,343)		37.6	%
Gain on sale of equipment, net	835		0.3	%	390		0.2	%	445		114.1	%
Operating income	14,257		5.4	%	20,424		9.4	%	(6,167)		(30.2)	%
Interest expense, net	(568)		(0.2)	%	(575)		(0.3)	%	7		(1.2)	%
Other income (expense)	252		0.1	%	251		0.2	%	1		0.4	%
Income before provision for income taxes and earnings from investment in joint venture	13,941		5.3	%	20,100		9.3	%	(6,159)		(30.6)	%
Provision for income taxes	(4,600)		(1.8)	%	(4,772)		(2.2)	%	172		(3.6)	%
Earnings from investment in joint venture	(1)		0.1	%	419		0.2	%	(420)		(100.2)	%
Net income	$	9,340	3.6	%	$	15,747	7.3	%	$	(6,407)	(40.7)	%
Adjusted EBITDA	$	29,027	11.1	%	$	31,992	14.7	%	$	(2,965)	(9.3)	%
Adjusted net income	$	9,474	3.6	%	$	15,866	7.3	%	$	(6,392)	(40.3)	%

Revenues. Revenues for the three months ended June 30, 2021 increased $44.7 million, or 20.6%, to $261.7 million from $217.0 million for the three months ended June 30, 2020. The increase included $31.4 million of revenues attributable to acquisitions completed subsequent to June 30, 2020 and an increase of approximately $13.3 million of revenues in our remaining markets from contract work and sales of HMA and aggregates to third parties.

Gross Profit. Gross profit for the three months ended June 30, 2021 decreased $0.3 million, or 0.7%, to $36.6 million from $36.9 million for the three months ended June 30, 2020. The lower gross profit was primarily due to lower profit margins on the

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projects we assumed in connection with (i) the North Carolina acquisitions that were completed during the first quarter of fiscal 2021 and (ii) lower utilization of the asphalt plants and equipment acquired in these acquisitions.

General and Administrative Expenses. General and administrative expenses for the three months ended June 30, 2021 increased $6.3 million, or 37.6%, to $23.2 million from $16.9 million for the three months ended June 30, 2020. The increase in general and administrative expenses for the three months ended June 30, 2021 compared to the three months ended June 30, 2020 was primarily the result of (i) a $1.0 million increase in equity-based compensation expense, (ii) a $2.0 million increase in management personnel payroll and benefits, (iii) a $1.0 million increase attributable to acquisitions completed subsequent to June 30, 2020, and (iv) a $1.6 million increase in various professional fees, primarily driven by business acquisitions, information technology expenses and increased accounting fees.

Interest Expense, Net. Interest expense, net for the three months ended June 30, 2021 decreased 1.2%. The decrease was primarily due to $0.1 million of unrealized gain on interest rate swaps for the three months ended June 30, 2021 compared to unrealized loss on interest rate swaps of $0.1 million for the three months ended June 30, 2020.

Provision for Income Taxes. Our effective tax rate increased to 33.0% for the three months ended June 30, 2021, from 23.3% for the three months ended June 30, 2020. Our higher effective tax rate for the three months ended June 30, 2021 was due to the unfavorable impact of a non-deductible legal settlement and related legal expenses, as described in Note 19 - Legal Proceedings.

Earnings from Investment in Joint Venture. Earnings from investment in joint venture decreased $0.4 million during the three months ended June 30, 2021 compared to the three months ended June 30, 2020, as the construction project from which these earnings were derived had a lower level of activity during the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

Net Income. Net income decreased $6.4 million to $9.3 million for the three months ended June 30, 2021, compared to $15.7 million for the three months ended June 30, 2020. The decrease in net income was primarily a result of lower gross profit and higher general and administrative expenses, all as described above.

Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA and Adjusted EBITDA Margin were $29.0 million and 11.1%, respectively, for the three months ended June 30, 2021, compared to $32.0 million and 14.7%, respectively, for the three months ended June 30, 2020. The decrease in Adjusted EBITDA was the result of lower gross profit and an increase in general and administrative expenses. The lower Adjusted EBITDA Margin was primarily a result of a decrease in Adjusted EBITDA and an increase in revenues, all as described above. See the description of Adjusted EBITDA and Adjusted EBITDA Margin, as well as a reconciliation of Adjusted EBITDA to net income, under the heading “How We Assess Performance of Our Business”.

Adjusted Net Income. Adjusted net income decreased $6.4 million to an adjusted net income of $9.5 million for the three months ended June 30, 2021, compared to adjusted net income of $15.9 million for the three months ended June 30, 2020. The decrease in adjusted net income was primarily a result of lower gross profit and higher general and administrative expenses, all as described above. See the description of Adjusted EBITDA and Adjusted EBITDA Margin, as well as a reconciliation of Adjusted EBITDA to net income, under the heading “How We Assess Performance of Our Business”.

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Nine Months Ended June 30, 2021 Compared to Nine Months Ended June 30, 2020

The following table sets forth selected financial data for the nine months ended June 30, 2021 and 2020 (in thousands, except percentages):

									Change From the Nine Months Ended
	For the Nine Months Ended June 30,								June 30, 2020
									to the Nine Months Ended
	2021				2020				June 30, 2021
	Dollars		% of Revenues		Dollars		% of Revenues		$  Change		% Change
Revenues	$	631,697	100.0	%	$	561,034	100.0	%	$	70,663	12.6	%
Cost of revenues	546,414		86.5	%	480,217		85.4	%	66,197		13.8	%
Gross profit	85,283		13.5	%	80,817		14.5	%	4,466		5.5	%
General and administrative expenses	(67,754)		(10.7)	%	(50,786)		(9.1)	%	(16,968)		33.4	%
Gain on sale of equipment, net	1,177		0.2	%	1,134		0.2	%	43		3.8	%
Operating income	18,706		3.0	%	31,165		5.6	%	(12,459)		(40.0)	%
Interest expense, net	(1,334)		(0.2)	%	(2,690)		(0.5)	%	1,356		(50.4)	%
Other income (expense)	661		0.1	%	360		—	%	301		83.6	%
Income before provision for income taxes and earnings from investment in joint venture	18,033		2.9	%	28,835		5.1	%	(10,802)		(37.5)	%
Provision for income taxes	(5,767)		(1.0)	%	(6,622)		(1.2)	%	855		(12.9)	%
Earnings from investment in joint venture	10		—	%	532		0.2	%	(522)		(98.1)	%
Net income	$	12,276	1.9	%	$	22,745	4.1	%	$	(10,469)	(46.0)	%
Adjusted EBITDA	$	63,506	10.1	%	$	63,539	11.3	%	$	(33)	(0.1)	%
Adjusted net income	$	16,642	2.6	%	$	22,961	4.1	%	$	(6,319)	(27.5)	%

Revenues. Revenues for the nine months ended June 30, 2021 increased $70.7 million, or 12.6%, to $631.7 million from $561.0 million for the nine months ended June 30, 2020. The increase included $58.4 million of revenues attributable to acquisitions completed subsequent to October 1, 2019 and an increase of approximately $12.3 million of revenues in our remaining markets from contract work and sales of HMA and aggregates to third parties.

Gross Profit. Gross profit for the nine months ended June 30, 2021 increased $4.5 million, or 5.5%, to $85.3 million from $80.8 million for the nine months ended June 30, 2020. The increase in gross profit was primarily the result of the increase in revenue for the nine months ended June 30, 2021 compared to the nine months ended June 30, 2020. Additionally, the higher gross profit was the result of an increase in gross profit margin due to (i) efficient utilization of our plants and equipment, (ii) a $2.1 million increase in gross profit attributable to our liquid asphalt terminal, at which we purchase liquid asphalt at wholesale prices, thereby reducing our cost of revenues, (iii) an increase of $2.8 million in unrealized gains on commodity derivative instruments that are included in cost of revenues, and (iv) offset by lower profit margins on the projects we assumed in connection with the North Carolina acquisitions we completed during the first quarter of fiscal 2021 and lower utilization of the asphalt plants and equipment acquired in these acquisitions.

General and Administrative Expenses. General and administrative expenses for the nine months ended June 30, 2021 increased $17.0 million, or 33.4%, to $67.8 million from $50.8 million for the nine months ended June 30, 2020. The increase in general and administrative expenses for the nine months ended June 30, 2021 compared to the nine months ended June 30, 2020 was primarily the result of (i) a $1.0 million increase in equity-based compensation expense, (ii) a $3.2 million legal settlement, as described in Note 19 - Legal Proceedings, and an increase of $0.9 million for legal fees associated with this settlement, (iii) a $5.5 million increase in management personnel payroll and benefits, (iv) a $2.9 million increase attributable to acquisitions completed subsequent to June 30, 2020, and (v) a $2.3 million increase in other professional fees, primarily driven by business acquisitions, information technology expenses and increased accounting fees.

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Interest Expense, Net. Interest expense, net for the nine months ended June 30, 2021 decreased $1.4 million, to $1.3 million compared to $2.7 million for the nine months ended June 30, 2020. The decrease was primarily due to $0.8 million of unrealized gain on interest rate swaps for the nine months ended June 30, 2021, compared to an unrealized loss on interest rate swaps of $1.6 million for the nine months ended June 30, 2020. This change was offset by an increase in interest paid due to the increase in long-term debt at June 30, 2021 compared to June 30, 2020.

Other Income (Expense). Other income (expense) for the nine months ended June 30, 2021 increased $0.3 million, to $0.7 million compared to $0.4 million for the nine months ended June 30, 2020. The increase was primarily attributable to rental income from property acquired in the North Carolina acquisitions completed during the first quarter of fiscal 2021.

Provision for Income Taxes. Our effective tax rate increased to 32.0% for the nine months ended June 30, 2021, from 22.5% for the nine months ended June 30, 2020. Our higher effective tax rate for the three months ended June 30, 2021 was due to the unfavorable impact of a non-deductible legal settlement and related legal expenses, as described in Note 19 - Legal Proceedings.

Earnings from Investment in Joint Venture. Earnings from investment in joint venture decreased $0.5 million during the nine months ended June 30, 2021 compared to the nine months ended June 30, 2020, as the construction project from which these earnings were derived had a lower level of activity during the nine months ended June 30, 2021.

Net Income. Net income decreased $10.5 million, or 46.0%, to $12.3 million for the nine months ended June 30, 2021, compared to $22.7 million for the nine months ended June 30, 2020. The decrease in net income was primarily a result of higher general and administrative expenses, partially offset by an increase in gross profit and a decrease in interest expense, net, all as described above.

Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA and Adjusted EBITDA Margin were $63.5 million and 10.1%, respectively, for the nine months ended June 30, 2021, compared to $63.5 million and 11.3%, respectively, for the nine months ended June 30, 2020. The lower Adjusted EBITDA Margin was a result of an increase in revenues, all as described above. See the description of Adjusted EBITDA and Adjusted EBITDA Margin, as well as a reconciliation of Adjusted EBITDA to net income, under the heading “How We Assess Performance of Our Business”.

Adjusted Net Income. Adjusted net income decreased $6.3 million to adjusted net income of $16.6 million for the nine months ended June 30, 2021, compared to adjusted net income of $23.0 million for the nine months ended June 30, 2020. The decrease in adjusted net income was primarily a result of higher general and administrative expenses, partially offset by an increase in gross profit and decrease in interest expense, net, all as described above.

Inflation and Price Changes

Except as described above under the heading “Inflationary Trends,” inflation had an immaterial impact on our results of operations for the three and nine months ended June 30, 2021 and 2020 due to relatively low inflation in the United States in recent years and our ability to recover increasing costs by obtaining higher prices for our products, including sale price escalator clauses in most of our public infrastructure sector contracts. Inflation risk varies with the level of activity in our industry, the number, size and strength of competitors and the availability of products to supply a local market.

Liquidity and Capital Resources

Cash Flows Analysis

The following table sets forth our cash flows for the periods indicated (in thousands):

	For the Nine Months Ended June 30,
	2021		2020
Net cash provided by operating activities, net of acquisition	$	9,334	$	51,414
Net cash used in investing activities	(129,530)		(69,183)
Net cash provided by (used in) financing activities	106,348		15,845
Net change in cash and cash equivalents	$	(13,848)	$	(1,924)

Operating Activities

During the nine months ended June 30, 2021, cash provided by operating activities, net of acquisitions, was $9.3 million, primarily as a result of:

•net income of $12.3 million, including $36.0 million of depreciation, depletion and amortization of long-lived assets, unrealized gains on derivative instruments of $3.1 million and equity-based compensation expense of $2.2 million;

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•an increase in contracts receivable including retainage, net, of $33.0 million as a result of higher overall revenues due to acquisitions and growth in existing markets;

•an increase in other assets of $4.1 million primarily due to capitalized costs related to the amended Revolving Credit Facility and deposits on property, plant and equipment assets;

•an increase in inventories of $8.1 million due to increased inventories from acquisitions and normal fluctuations in our inventory cycle;

•an increase in accounts payable and accrued expenses and other current liabilities of $19.8 million due to an increase in construction activity as noted above; and

•a net decrease in the difference between costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts of $10.0 million due to the timing of performing and closing projects.

During the nine months ended June 30, 2020, cash provided by operating activities, net of acquisitions, was $51.4 million, primarily as a result of:

•net income of $22.7 million, including $29.1 million of depreciation, depletion and amortization of long-lived assets and unrealized losses on derivative instruments of $2.0 million and equity-based compensation expense of $1.2 million;

•a decrease in contracts receivable including retainage, net, of $6.3 million due to a reduction in the number of projects available for bid in certain of our markets; and;

•a decrease in accounts payable and accrued expenses and other current liabilities of $10.9 million due to decreases related to inventory purchases associated with our liquid asphalt terminal.

Investing Activities

During the nine months ended June 30, 2021, cash used in investing activities was $129.5 million, $92.3 million of which related to acquisitions completed in the period and $39.6 million of which was invested in property, plant and equipment, partially offset by $2.4 million of proceeds from the sale of equipment.

During the nine months ended June 30, 2020, cash used in investing activities was $69.2 million, $30.2 million of which related to acquisitions completed in the period and $41.5 million of which was invested in property, plant and equipment, partially offset by $2.1 million of proceeds from the sale of equipment and a $0.4 million distribution from our investment in a joint venture.

Financing Activities

During the nine months ended June 30, 2021, cash provided by financing activities was $106.3 million. We received $199.1 million from proceeds on long-term debt, net of debt issuance costs and discounts, reflecting a Term Loan advance, net of issuance costs, to fund acquisitions and for liquidity purposes. These proceeds were offset by $92.8 million of repayments of long-term debt.

During the nine months ended June 30, 2020, cash provided by financing activities was $15.8 million. We received $42.7 million from proceeds on long-term debt, net of debt issuance costs and discounts, reflecting (i) a $15.0 million advance under our Revolving Credit Facility primarily used to fund the March 2020 acquisition of two HMA manufacturing plants in Florida and for liquidity purposes, and (ii) $27.7 million of Term Loan advances, net of issuance cost, related to our buyout of certain lease obligations in October 2019 and to pay down the March 2020 $15.0 million advance under the Revolving Credit Facility. These proceeds were offset by $26.9 million of repayments of principal on long-term debt.

Credit Agreement

We and each of our subsidiaries are parties to the Credit Agreement, which provides for the Term Loan and the Revolving Credit Facility. At June 30, 2021 and September 30, 2020, we had $200.0 million and $92.9 million, respectively, of principal outstanding under the Term Loan, $0.0 million and $0.0 million, respectively, of principal outstanding under the Revolving Credit Facility, and availability of $213.9 million and $39.3 million, respectively, under the Revolving Credit Facility, after reduction for outstanding letters of credit. At June 30, 2021, the interest rate on outstanding borrowings under the Term Loan was 1.35%.

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The Credit Agreement requires us to satisfy certain financial covenants, including a minimum fixed charge coverage ratio of 1.20-to-1.00 and a maximum consolidated leverage ratio of 3.00-to-1.00, subject to certain adjustments. At June 30, 2021 and September 30, 2020, our fixed charge coverage ratio was 4.00-to-1.00 and 2.85-to-1.00, respectively, and our consolidated leverage ratio was 1.86-to-1.00 and 1.08-to-1.00, respectively.

From time to time, we have entered into interest rate swap agreements to hedge against the risk of changes in interest rates. These interest rate swap agreements do not meet the criteria for hedge accounting treatment in accordance with GAAP. At June 30, 2021 and September 30, 2020, the aggregate notional value of these interest rate swap agreements was $40.3 million and $46.5 million, respectively, and the fair value was $(1.0) million and $(1.7) million, respectively, which is included within other long-term

liabilities on our Consolidated Balance Sheets.

Capital Requirements and Sources of Liquidity

Our cash requirements include costs related to capital expenditures, purchase of materials, production of materials and organic expansion into new markets. Our working capital needs are driven by the seasonality and growth of our business, with our cash requirements increasing in periods of growth. Additional cash requirements resulting from our growth include the costs of additional personnel, production and distribution facilities, enhancements to our information systems, expenditures related to our compliance with laws and rules applicable to public companies and our integration of any acquired businesses.

During the nine months ended June 30, 2021 and 2020, our capital expenditures were $39.6 million and $41.5 million, respectively. Our capital expenditures are typically made during the same fiscal year in which they are approved. At June 30, 2021, our commitments for capital expenditures were not material to our financial condition or results of operations on a consolidated basis. For fiscal 2021, we expect total capital expenditures to be $47.0 million to $52.0 million. Our capital expenditure budget is an estimate and is subject to change.

We have historically relied upon cash available through credit facilities, in addition to cash from operations, to finance our working capital requirements and to support our growth. We regularly monitor potential capital sources, including the equity and debt markets, in an effort to meet our planned capital expenditures and liquidity requirements. Our future success will depend on our ability to access outside sources of capital.

We believe that our operating cash flow, together with cash on hand and available borrowings under our credit facilities, will be sufficient to fund our operations and planned capital expenditures for at least the next 12 months. However, future cash flows are subject to a number of variables, including the potential impacts of the COVID-19 pandemic, and significant additional capital expenditures will be required to conduct our operations. There can be no assurance that operations and other capital resources will provide cash in sufficient amounts to maintain planned or future levels of capital expenditures. In the event that we make one or more acquisitions and the amount of capital required is greater than the amount of cash on hand we have available for acquisitions at that time, we could be required to reduce the expected level of capital expenditures and/or seek additional capital. If we seek additional capital, we may do so through borrowings under our credit facilities, joint ventures, asset sales, offerings of debt or equity securities or other means. Our ability to engage in any such transactions may be constrained by economic conditions and other factors outside of our control. We cannot guarantee that this additional capital will be available on acceptable terms or at all. If we are unable to obtain the funds we need, we may not be able to complete acquisitions that may be favorable to us or finance the capital expenditures necessary to conduct our operations.

Commodity Price Risk

We are subject to commodity price risk with respect to price changes in liquid asphalt and energy, including fossil fuels and electricity for aggregates and asphalt paving mix production, natural gas for HMA production and diesel fuel for distribution vehicles and production-related mobile equipment. In order to manage or reduce commodity price risk, we monitor the costs of these commodities at the time of bid and price them into our contracts accordingly. Furthermore, liquid asphalt escalator provisions in most of our public contracts, and in some of our private and commercial contracts, limit our exposure to price fluctuations in this commodity. In addition, we enter into various firm purchase commitments, with terms generally less than one year, for certain raw materials.

We have entered into fuel swap contracts to mitigate the financial impact of fluctuations in fuel prices. As of June 30, 2021, we had fuel swap contracts to pay fixed prices for fuel with an aggregate notional amount of 2.7 million gallons, maturing incrementally through fiscal year 2023. The fair value of these derivative contracts was $1.9 million at June 30, 2021. These fuel swap contracts provide a fixed price for less than 50% of our estimated fuel usage for the remainder of fiscal years 2021 through 2023.

Interest Rate Risk

We are exposed to interest rate risk on certain of our short-term and long-term debt obligations used to finance our operations and acquisitions. We have LIBOR-based floating rate borrowings under our credit facilities, which expose us to variability in interest

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payments due to changes in the reference interest rates. From time to time, we use derivative instruments to hedge against the impact of interest rate changes on future earnings and cash flows. In order to hedge against changes in interest rates and to manage fluctuations in cash flows resulting from interest rate risk, we have entered into several amortizing interest rate swap agreements. At June 30, 2021, the aggregate notional value of these interest rate swap agreements was $40.3 million for which we pay a fixed rate ranging from 1.24% to 3.01% and, in each case, under which receive a credit based on the applicable LIBOR rate.

At June 30, 2021, we had a total of $159.7 million of non-hedged variable rate borrowings outstanding.

Contractual Obligations

The following table sets forth certain information about our contractual obligations as of June 30, 2021 (in thousands):

			Payments Due by Fiscal Year
	Total		Remainder of 2021		2022		2023		2024		2025		2026 and Thereafter
Debt obligations	$	200,000	$	2,500	$	10,000	$	10,000	$	11,250	$	15,000	$	151,250
Operating leases	8,287		511		1,489		1,092		834		663		3,698
Purchase commitments	242		192		50		—		—		—		—
Total	$	209,363	$	3,203	$	11,539	$	11,092	$	12,918	$	15,663	$	154,948

Off-Balance Sheet Arrangements

As of June 30, 2021, we had no material off-balance sheet arrangements, except for letters of credit of $11.1 million and purchase commitments for diesel fuel of $0.2 million entered into in the normal course of business.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Pursuant to the Instructions to paragraph (c) of Item 305 of Regulation S-K, information is not required to be disclosed under Item 305(c) of Regulation S-K for interim periods until after the first fiscal year end in which Item 305 is applicable, which for us will be interim periods after September 30, 2021.

Item 4. Controls and Procedures.

Evaluation of Disclosure Control and Procedures

Our management carried out, as of June 30, 2021, with the participation of our Chief Executive Officer and our Chief Financial Officer, an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2021, our disclosure controls and procedures were effective to provide reasonable assurance that material information required to be disclosed by us in reports we file under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes to our internal control over financial reporting during the quarter ended June 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - Other Information

Item 1. Legal Proceedings.

Due to the nature of our business, we are involved in routine litigation or subject to other disputes or claims related to our business activities, including, among other things, (i) workers’ compensation claims, (ii) employment-related disputes and (iii) liability issues or breach of contract or tortious conduct claims in connection with the performance of services and provision of materials. We and our affiliates are also subject to government inquiries in the ordinary course of business seeking information concerning our compliance with government construction contracting requirements and various laws and regulations, the outcome of which cannot be predicted with certainty. In the opinion of our management, after consultation with legal counsel, none of the pending inquiries, litigation, disputes or claims against us, if decided adversely to us, would have a material adverse effect on our financial condition, cash flows or results of operations. Except as described in Note 19 - Legal Proceedings to the consolidated financial statements included elsewhere in this report, there have been no material changes to the legal proceedings disclosed in the 2020 Form 10-K.

Item 1A. Risk Factors.

In addition to the other financial information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors,” in the 2020 Form 10-K that could materially affect our business, financial condition or future operating results. There have been no material changes from the information set forth in Part I, Item 1A, “Risk Factors” in the 2020 Form 10-K. The risks described in the 2020 Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Unregistered Sales of Equity Securities

The Company did not sell any of its equity securities during the period covered by this report that were not registered under the Securities Act.

Issuer Purchases of Equity Securities

During the quarter covered by this report, the Company did not purchase any of its equity securities that are registered under Section 12 of the Exchange Act.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 C.F.R. Part 229.104) is included in Exhibit 95.1 to this Quarterly Report on Form 10-Q.

Item 5. Other Information.

None.

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Item 6. Exhibits.

Exhibit Number	Description
3.1	Amended and Restated Certificate of Incorporation of Construction Partners, Inc. (incorporated by reference to Exhibit 3.1 to Amendment No. 2 to the Registration Statement on Form S-1 (File No. 333-224174) filed on April 27, 2018)
3.2	Amended and Restated Bylaws of Construction Partners, Inc. (incorporated by reference to Exhibit 3.2 to Amendment No. 2 to the Registration Statement on Form S-1 (File No. 333-224174) filed on April 27, 2018)
3.2A	Amendment to Amended and Restated Bylaws of Construction Partners, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 001-38479) filed on June 4, 2020)
4.1	Form of Class A Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 1 to the Registration Statement on Form S-1 (File No. 333-224174) filed on April 23, 2018)
4.2	Registration Rights Agreement, dated June 8, 2007, by and among Construction Partners, Inc. (f/k/a SunTx CPI Growth Company, Inc.) and certain security holders party thereto (incorporated by reference to Exhibit 4.2 to the Registration Statement on Form S-1 (File No. 333-224174) filed on April 6, 2018)
10.1	Second Amended and Restated Credit Agreement, dated June 24, 2021, by and among Construction Partners, Inc. and each of its wholly owned subsidiaries, as borrowers, BBVA USA, as administrative agent, joint lead arranger, sole bookrunner and lender, Regions Bank and BofA Securities, Inc., each as a joint arranger, and certain other lenders party thereto (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-38479) filed on June 25, 2021)
10.2	Second Amendment to Employment Agreement, dated May 5, 2021, by and between Construction Partners, Inc. and Fred J. Smith, III (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-38479) filed on May 7, 2021)
31.1*	Certification of President and Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
31.2*	Certification of Executive Vice President and Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
32.1**	Certification of President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350
32.2**	Certification of Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
95.1*	Mine Safety Disclosures
101.INS*	Inline XBRL Instance Document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
*	Filed herewith.
**	Furnished herewith.

32

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on this 6th day of August, 2021.

	CONSTRUCTION PARTNERS, INC.
By:	/s/ Fred J. Smith, III
	Fred J. Smith, III
	President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name and Signature	Title	Date
/s/ Fred J. Smith, III	President and Chief Executive Officer	August 6, 2021
Fred J. Smith, III	(Principal Executive Officer)
/s/ R. Alan Palmer	Executive Vice President and Chief Financial Officer	August 6, 2021
R. Alan Palmer	(Principal Financial Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Fred J. Smith, III, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Construction Partners, Inc. for the quarterly period ended June 30, 2021;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2021	By:	/s/ Fred J. Smith, III
		Fred J. Smith, III
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, R. Alan Palmer, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Construction Partners, Inc. for the quarterly period ended June 30, 2021;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2021	By:	/s/ R. Alan Palmer
		R. Alan Palmer
		Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Construction Partners, Inc. (the “Company”) for the period ended June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Fred J. Smith, III, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 6, 2021	By:	/s/ Fred J. Smith, III
		Fred J. Smith, III
		President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Construction Partners, Inc. (the “Company”) for the period ended June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, R. Alan Palmer, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 6, 2021	By:	/s/ R. Alan Palmer
		R. Alan Palmer
		Executive Vice President and Chief Financial Officer

EX-95.1

Exhibit 95.1

Mine Safety Disclosures

The operation of our aggregates mines is subject to regulation by the federal Mine Safety and Health Administration (the “MSHA”) under the Federal Mine Safety and Health Act of 1977, 30 U.S.C. § 801 et seq. (the “Mine Act”). Set forth below is the required information regarding certain mining safety and health matters for the fiscal quarter ended June 30, 2021. Citations and orders may be contested and appealed, and in that process, may be reduced in severity and amount, and are sometimes dismissed. The table below includes references to specific sections of the Mine Act.

The information in the table below is presented by mine, consistent with the manner in which we maintain safety and compliance information about our mining operations.

	(A)	(B)	(C)	(D)	(E)	(F)		(G)	(H)
Mine Name / ID	Section 104 S&S	Section 104(b)	Section 104(d)	Section 110(b)(2)	Section 107(a)	Proposed Assessments		Fatalities	Pending Legal Action
Camden / 31-02100	—	—	—	—	—		*	—	—
Riverbend Sand / 09-01023	—	—	—	—	—		—	—	—
Montgomery Sand / 09-00737	—	—	—	—	—		—	—	—
Baldree Sand / 09-01166	—	—	—	—	—		—	—	—
Coosa / 01-03327	—	—	—	—	—		—	—	—
Skyline / 01-03158	—	—	—	—	—		—	—	—
Lambert / 01-03363	—	—	—	—	—		—	—	—
Hickory Bend / 01-03403	—	—	—	—	—		—	—	—
Allstate / 01-03406	—	—	—	—	—		—	—	—
Total	—	—	—	—	—		*	—	—

(A)	The total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard under Section 104 of the Mine Act for which the operator received a citation from the MSHA.
(B)	The total number of orders issued under Section 104(b) of the Mine Act.
(C)	The total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under Section 104(d) of the Mine Act.
(D)	The total number of flagrant violations under Section 110(b)(2) of the Mine Act.
(E)	The total number of imminent danger orders issued under Section 107(a) of the Mine Act.
(F)	The total dollar value of proposed assessments from the MSHA under the Mine Act.
(G)	The total number of mining-related fatalities.
(H)	Any pending legal action before the Federal Mine Safety and Health Review Commission involving the applicable mine(s).
*	As of the date of this report, no proposed assessments related to orders or citations received during the quarter had yet been posted to the MSHA Mine Data Retrieval System or made available to the Company by MSHA.

During the fiscal quarter ended June 30, 2021, our aggregates mines did not receive any written notices of a pattern of violations, or the potential to have such a pattern of violations, under Section 104(e) of the Mine Act.

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Cover Page - shares	9 Months Ended
	Jun. 30, 2021	Aug. 04, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-38479
Entity Registrant Name	Construction Partners, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-0758017
Entity Address, Address Line One	290 Healthwest Drive, Suite 2
Entity Address, City or Town	Dothan
Entity Address, State or Province	AL
Entity Address, Postal Zip Code	36303
City Area Code	334
Local Phone Number	673-9763
Title of 12(b) Security	Class A common stock, par value $0.001 per share
Trading Symbol	ROAD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001718227
Current Fiscal Year End Date	--09-30
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		36,506,570
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		15,785,908

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 134,468	$ 148,316
Contracts receivable including retainage, net	164,305	131,770
Costs and estimated earnings in excess of billings on uncompleted contracts	15,770	7,873
Inventories	50,841	38,561
Prepaid expenses and other current assets	7,967	5,041
Total current assets	373,351	331,561
Property, plant and equipment, net	296,697	237,230
Operating lease right-of-use assets	6,661	7,383
Goodwill	78,444	46,348
Intangible assets, net	5,134	3,224
Investment in joint venture	108	198
Other assets	6,591	1,784
Deferred income taxes, net	386	386
Total assets	767,372	628,114
Current liabilities:
Accounts payable	82,817	64,732
Billings in excess of costs and estimated earnings on uncompleted contracts	31,555	33,704
Current portion of operating lease liabilities	1,501	2,046
Current maturities of debt	10,000	13,000
Accrued expenses and other current liabilities	25,684	22,347
Total current liabilities	151,557	135,829
Long-term liabilities:
Long-term debt, net of current maturities	188,591	79,053
Operating lease liabilities, net of current portion	5,320	5,554
Deferred income taxes, net	14,003	14,003
Other long-term liabilities	8,228	8,480
Total long-term liabilities	216,142	107,090
Total liabilities	367,699	242,919
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001; 10,000,000 shares authorized at June 30, 2021 and September 30, 2020 and no shares issued and outstanding	0	0
Additional paid-in capital	247,224	245,022
Treasury stock, at cost, 2,922,952 shares of Class B common stock, par value $0.001	(15,603)	(15,603)
Retained earnings	167,997	155,721
Total stockholders’ equity	399,673	385,195
Total liabilities and stockholders’ equity	767,372	628,114
Class A Common Stock
Stockholders’ equity:
Common stock, value	36	34
Class B Common Stock
Stockholders’ equity:
Common stock, value	$ 19	$ 21

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Sep. 30, 2020
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	36,506,570	33,875,884
Common stock, shares outstanding (in shares)	36,506,570	33,875,884
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	18,708,860	20,828,813
Common stock, shares outstanding (in shares)	15,785,908	17,905,861
Treasury stock, shares (in shares)	2,922,952	2,922,952

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CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenues	$ 261,656	$ 217,041	$ 631,697	$ 561,034
Cost of revenues	225,039	180,155	546,414	480,217
Gross profit	36,617	36,886	85,283	80,817
General and administrative expenses	(23,195)	(16,852)	(67,754)	(50,786)
Gain on sale of equipment, net	835	390	1,177	1,134
Operating income	14,257	20,424	18,706	31,165
Interest expense, net	(568)	(575)	(1,334)	(2,690)
Other income (expense)	252	251	661	360
Income before provision for income taxes and earnings from investment in joint venture	13,941	20,100	18,033	28,835
Provision for income taxes	(4,600)	(4,772)	(5,767)	(6,622)
Earnings (loss) from investment in joint venture	(1)	419	10	532
Net income	$ 9,340	$ 15,747	$ 12,276	$ 22,745
Earnings Per Share [Abstract]
Basic (in dollars per share)	$ 0.18	$ 0.31	$ 0.24	$ 0.44
Diluted (in dollars per share)	$ 0.18	$ 0.30	$ 0.24	$ 0.44
Weighted average number of common shares outstanding:
Basic (in shares)	51,686,735	51,489,211	51,620,143	51,489,211
Diluted (in shares)	51,864,403	51,646,385	51,726,994	51,623,627

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Class A Common Stock Common Stock	Class B Common Stock Common Stock
Beginning balance (in shares) at Sep. 30, 2019							32,597,736	22,106,961
Beginning balance at Sep. 30, 2019	$ 343,550	$ (222)	$ 243,452	$ (15,603)	$ 115,646	$ (222)	$ 33	$ 22
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	5,461				5,461
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	395		395
Conversion of Class B common stock to Class A common stock (in shares)							107,682	(107,682)
Ending balance (in shares) at Dec. 31, 2019							32,705,418	21,999,279
Ending balance at Dec. 31, 2019	349,184		243,847	(15,603)	120,885		$ 33	$ 22
Beginning balance (in shares) at Sep. 30, 2019							32,597,736	22,106,961
Beginning balance at Sep. 30, 2019	343,550	$ (222)	243,452	(15,603)	115,646	$ (222)	$ 33	$ 22
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	22,745
Ending balance (in shares) at Jun. 30, 2020							33,430,364	21,274,333
Ending balance at Jun. 30, 2020	367,248		244,627	(15,603)	138,169		$ 34	$ 21
Beginning balance (in shares) at Dec. 31, 2019							32,705,418	21,999,279
Beginning balance at Dec. 31, 2019	349,184		243,847	(15,603)	120,885		$ 33	$ 22
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	1,537				1,537
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	390		390
Ending balance (in shares) at Mar. 31, 2020							32,705,418	21,999,279
Ending balance at Mar. 31, 2020	351,111		244,237	(15,603)	122,422		$ 33	$ 22
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	15,747				15,747
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	390		390
Conversion of Class B common stock to Class A common stock (in shares)							724,946	(724,946)
Conversion of Class B common stock to Class A common stock	0						$ 1	$ (1)
Ending balance (in shares) at Jun. 30, 2020							33,430,364	21,274,333
Ending balance at Jun. 30, 2020	367,248		244,627	(15,603)	138,169		$ 34	$ 21
Beginning balance (in shares) at Sep. 30, 2020							33,875,884	20,828,813
Beginning balance at Sep. 30, 2020	385,195		245,022	(15,603)	155,721		$ 34	$ 21
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	7,871				7,871
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	395		395
Ending balance (in shares) at Dec. 31, 2020							33,875,884	20,828,813
Ending balance at Dec. 31, 2020	393,461		245,417	(15,603)	163,592		$ 34	$ 21
Beginning balance (in shares) at Sep. 30, 2020							33,875,884	20,828,813
Beginning balance at Sep. 30, 2020	385,195		245,022	(15,603)	155,721		$ 34	$ 21
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	12,276
Ending balance (in shares) at Jun. 30, 2021							36,506,570	18,708,860
Ending balance at Jun. 30, 2021	399,673		247,224	(15,603)	167,997		$ 36	$ 19
Beginning balance (in shares) at Dec. 31, 2020							33,875,884	20,828,813
Beginning balance at Dec. 31, 2020	393,461		245,417	(15,603)	163,592		$ 34	$ 21
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(4,935)				(4,935)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	460		460
Issuance of stock grant awards (in shares)							510,733
Conversion of Class B common stock to Class A common stock (in shares)							1,332,952	(1,332,952)
Conversion of Class B common stock to Class A common stock	0						$ 1	$ (1)
Ending balance (in shares) at Mar. 31, 2021							35,719,569	19,495,861
Ending balance at Mar. 31, 2021	388,986		245,877	(15,603)	158,657		$ 35	$ 20
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	9,340				9,340
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,347		1,347
Conversion of Class B common stock to Class A common stock (in shares)							787,001	(787,001)
Conversion of Class B common stock to Class A common stock	0						$ 1	$ (1)
Ending balance (in shares) at Jun. 30, 2021							36,506,570	18,708,860
Ending balance at Jun. 30, 2021	$ 399,673		$ 247,224	$ (15,603)	$ 167,997		$ 36	$ 19

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income (loss)	$ 12,276	$ 22,745
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization of long-lived assets	36,011	29,065
Amortization of deferred debt issuance costs and debt discount	190	115
Unrealized (gain) loss on derivative instruments	(3,141)	1,989
Provision for bad debt	440	451
Gain on sale of equipment, net	(1,177)	(1,134)
Equity-based compensation expense	2,202	1,175
Earnings from investment in joint venture	(10)	(532)
Distribution of earnings from investment in joint venture	100	139
Deferred income taxes	0	(197)
Other non-cash adjustments	(57)	(12)
Changes in operating assets and liabilities, net of acquisition:
Contracts receivable including retainage, net	(32,975)	6,345
Costs and estimated earnings in excess of billings on uncompleted contracts	(7,897)	(3,574)
Inventories	(8,061)	(1,878)
Prepaid expenses and other current assets	(1,723)	3,867
Other assets	(4,123)	311
Accounts payable	16,789	(12,863)
Billings in excess of costs and estimated earnings on uncompleted contracts	(2,149)	3,396
Accrued expenses and other current liabilities	2,970	2,029
Other long-term liabilities	(331)	(23)
Net cash provided by operating activities, net of acquisitions	9,334	51,414
Cash flows from investing activities:
Purchases of property, plant and equipment	(39,588)	(41,535)
Proceeds from sale of equipment	2,361	2,182
Business acquisitions, net of cash acquired	(92,303)	(30,191)
Return of investment in joint venture	0	361
Net cash used in investing activities	(129,530)	(69,183)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of debt issuance costs and discount	199,198	42,719
Repayments of long-term debt	(92,850)	(26,874)
Net cash provided by financing activities	106,348	15,845
Net change in cash and cash equivalents	(13,848)	(1,924)
Cash and cash equivalents:
Beginning of period	148,316	80,619
End of period	134,468	78,695
Supplemental cash flow information:
Cash paid for interest	1,950	1,416
Cash paid for income taxes	3,568	5,600
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	1,089	1,241
Cash paid for operating lease liabilities	1,795	2,464
Non-cash items:
Property, plant and equipment included with accounts payable at period end	778	1,073
Non-compete agreements to seller in business combination	1,700	0
Amounts payable to sellers in business combinations	$ 1,296	$ 0

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General

9 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

General

Business Description

Construction Partners, Inc. (the “Company”) is a civil infrastructure company that specializes in the construction and maintenance of roadways across Alabama, Florida, Georgia, North Carolina and South Carolina. Through its wholly owned subsidiaries, the Company provides a variety of products and services to both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports, and commercial and residential developments. The Company’s primary operations consist of (i) manufacturing and distributing hot mix asphalt (“HMA”) for both internal use and sales to third parties in connection with construction projects, (ii) paving activities, including the construction of roadway base layers and application of asphalt pavement, (iii) site development, including the installation of utility and drainage systems, (iv) mining aggregates, such as sand and gravel, that are used as raw materials in the production of HMA, and (v) distributing liquid asphalt cement for both internal use and sales to third parties in connection with HMA production.

The Company was formed as a Delaware corporation in 2007 as a holding company for its wholly owned subsidiary, Construction Partners Holdings, Inc., to facilitate an acquisition growth strategy in the HMA paving and construction industry. On December 31, 2019, Construction Partners Holdings, Inc. merged with and into the Company, with the Company surviving the merger. SunTx Capital Partners (“SunTx”), a private equity firm based in Dallas, Texas, is the Company’s majority investor and has owned a controlling interest in the Company’s stock since the Company’s inception.

Seasonality

The use and consumption of the Company’s products and services fluctuate due to seasonality. The Company’s products are used, and its construction operations and production facilities are located, outdoors. Therefore, seasonal changes and other weather-related conditions, in particular, extended snowy, rainy or cold weather in the winter, spring or fall and major weather events, such as hurricanes, tornadoes, tropical storms and heavy snows, can adversely affect the Company’s business and operations through a decline in both the use of the Company’s products and demand for the Company’s services. In addition, construction materials production and shipment levels follow activity in the construction industry, which typically occurs in the spring, summer and fall. Warmer and drier weather during the third and fourth quarters of the Company’s fiscal year typically result in higher activity and revenues during those quarters. The first and second quarters of the Company’s fiscal year typically have lower levels of activity due to less favorable weather conditions.

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Significant Accounting Policies

9 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

Basis of Presentation

These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. These interim consolidated statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), which permit reduced disclosure for interim periods. The Company's Consolidated Balance Sheets as of September 30, 2020 were derived from the Company's audited financial statements for the fiscal year then ended, but do not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) with respect to annual financial statements. In the opinion of management, these unaudited consolidated financial statements include all recurring adjustments and normal accruals necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the dates and periods presented. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited annual consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2020 (the “2020 Form 10-K”). Results for interim periods are not necessarily indicative of the results to be expected for a full fiscal year or for any future period.

Management’s Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the recorded amounts of assets, liabilities, stockholders’ equity, revenues and expenses during the reporting period, and the disclosure of contingent liabilities at the date of the consolidated financial statements. Estimates are used in accounting for items such as recognition of revenues and cost of revenues, goodwill and other intangible assets, business acquisition accounting estimates, valuation of operating lease right-of-use assets, allowance for doubtful accounts, valuation allowances related to income taxes, accruals for potential liabilities related to lawsuits or insurance claims, the fair value of derivative instruments and the fair value of equity-based compensation awards. Estimates are continually evaluated based on historical information and actual experience; however, actual results could differ from these estimates.

A description of certain critical accounting policies of the Company is presented below. Additional critical accounting policies and the underlying judgments and uncertainties are described in the notes to the Company’s annual consolidated financial statements included in the 2020 Form 10-K.

Emerging Growth Company

The Company is an “emerging growth company,” as defined by the Jumpstart Our Business Startups Act enacted in April 2012. As an emerging growth company, the Company could have taken advantage of an exemption that would have allowed the Company to wait to comply with new or revised financial accounting standards until the effective date of such standards for private companies. However, the Company has irrevocably elected to opt out of such extended transition period, which means that when a new or revised standard has a different effective date for public and private companies, the Company is required to adopt the standard on the effective date applicable to public companies that are not emerging growth companies.

Cash and Cash Equivalents

Cash consists principally of currency on hand and demand deposits at commercial banks. Cash equivalents are short-term, highly liquid investments that are both readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents include investments with original maturities of three months or less. The Company maintains demand accounts, money market accounts and certificates of deposit at several banks. From time to time, the account balances have exceeded the maximum available federal deposit insurance coverage limit. The Company has not experienced any losses in such accounts and regularly monitors its credit risk.

Contracts Receivable Including Retainage, net

Contracts receivable are generally based on amounts billed and currently due from customers, amounts currently due but unbilled, and amounts retained by the customer pending completion of a project. It is common in the Company’s industry for a small portion of either progress billings or the contract price, typically 10%, to be withheld by the customer until the Company completes a project to the satisfaction of the customer in accordance with the applicable contract terms. Such amounts, defined as retainage, represent a contract asset and are included on the Company's Consolidated Balance Sheets as “Contracts receivable including retainage, net”. Based on the Company’s experience with similar contracts in recent years, billings for such retainage balances are generally collected within one year of the completion of the project.

Contracts receivable including retainage, net are stated at the amount management expects to collect from outstanding balances. Management provides for uncollectible accounts through a charge to earnings and a credit to the allowance for doubtful accounts based on its assessment of the current status of individual accounts, type of service performed, current economic conditions, historical losses and other information available to management. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and an adjustment to the contract receivable.

Contract Assets and Contract Liabilities

Billing practices for the Company’s contracts are governed by the contract terms of each project and are typically based on (i) progress toward completion approved by the owner or customer, (ii) achievement of milestones or (iii) pre-agreed schedules. Billings do not necessarily correlate with revenues recognized under the cost-to-cost input method (formerly known as the percentage-of-completion method). The Company records contract assets and contract liabilities to account for these differences in timing.

The contract asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” arises when the Company recognizes revenues for services performed under its construction projects, but the Company is not yet entitled to bill the customer under the terms of the contract. Amounts billed to customers are excluded from this asset and reflected on the Consolidated Balance Sheets as “Contracts receivable including retainage, net”. Included in costs and estimated earnings in excess of billings on uncompleted contracts are amounts the Company seeks or will seek to collect from customers or others for (i) errors, (ii) changes in contract specifications or design, (iii) contract change orders in dispute, unapproved as to scope and price, or (iv) other customer-related causes of unanticipated additional contract costs (such as claims). Such amounts are recorded to the extent that the amount can be reasonably estimated and recovery is probable. Claims and unapproved change orders made by the Company may involve negotiation and, in rare cases, litigation. Unapproved change orders and claims also involve the use of estimates, and revenues associated with unapproved change orders and claims are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company did not recognize any material amounts associated with claims and unapproved change orders during the periods presented.

The contract liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents the Company’s obligation to transfer to a customer goods or services for which the Company has been paid by the customer or for which the Company has billed the customer under the terms of the contract. Revenue for future services reflected in this account are recognized, and the liability is reduced, as the Company subsequently satisfies the performance obligation under the contract.

Costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts are typically resolved within one year and are not considered significant financing components.

Concentration of Risks

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of contracts receivable including retainage, net. In the normal course of business, the Company provides credit to its customers and does not generally require collateral. The Company monitors concentrations of credit risk associated with these receivables on an ongoing basis. The Company has not historically experienced significant credit losses, due primarily to management’s assessment of customers’ credit ratings. The Company principally deals with recurring customers, state and local governments and well-known local companies whose reputations are known to management. The Company performs credit checks for significant new customers and generally requires progress payments for significant projects. The Company generally has the ability to file liens against the property if payments are not made on a timely basis. No single customer accounted for more than 10% of the Company’s contracts receivable including retainage, net balance at June 30, 2021 or September 30, 2020.

Projects performed for various Departments of Transportation accounted for 35.9% and 36.8% of consolidated revenues for the three months ended June 30, 2021 and 2020, respectively, and for 30.7% and 32.3% of consolidated revenues for the nine months ended June 30, 2021 and 2020, respectively. Customers that accounted for more than 10.0% of consolidated revenues during any of those periods are presented below.

	% of Consolidated Revenues
	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Alabama Department of Transportation	10.9	%	13.2	%	9.3	%	11.1	%
North Carolina Department of Transportation	12.2	%	9.0	%	8.7	%	8.4	%

Revenues from Contracts with Customers

The Company derives all of its revenues from contracts with its customers, predominantly by performing construction services for both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports and commercial and residential developments. These projects are performed for a mix of federal, state, municipal and private customers. In addition, the Company derives revenues from the sale of construction materials, including HMA, aggregates, liquid asphalt cement and ready-mix concrete to third-party public and private customers pursuant to contracts with those customers. The following table reflects, for the periods presented, (i) the percentage of revenues generated from public infrastructure construction projects and the sale of construction materials to public customers and (ii) the percentage of revenues generated from private infrastructure construction projects and the sale of construction materials to private customers.

	% of Consolidated Revenues
	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Private	38.5	%	30.9	%	40.0	%	36.1	%
Public	61.5	%	69.1	%	60.0	%	63.9	%

Revenues derived from construction projects are recognized over time as the Company satisfies its performance obligations by transferring to the customer control of the asset created or enhanced by the project. Recognition of revenues and cost of revenues for construction projects requires significant judgment by management, including, among other things, estimating total costs expected to be incurred to complete a project and measuring progress toward completion. Management reviews contract estimates regularly to assess revisions of estimated costs to complete a project and measurement of progress toward completion.

Management believes the Company maintains reasonable estimates based on prior experience; however, many factors contribute to changes in estimates of contract costs. Accordingly, estimates made with respect to uncompleted projects are subject to change as each project progresses and better estimates of contract costs become available. All contract costs are recorded as incurred, and revisions to estimated total costs are reflected as soon as the obligation to perform is determined. Provisions are recognized for the full amount of estimated losses on uncompleted contracts whenever evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue, regardless of the stage of completion. When the Company incurs additional costs related to work performed by subcontractors, the Company may be able to utilize contractual provisions to back charge the subcontractors for those costs. A reduction to costs related to back charges is recognized when the estimated recovery is probable and the amount can be reasonably estimated. Contract costs consist of (i) direct costs on contracts, including labor, materials, and amounts payable to subcontractors and

(ii) indirect costs related to contract performance, such as insurance, employee benefits, and equipment (primarily depreciation, fuel, maintenance and repairs).

Progress toward completion is estimated using the input method, measured by the relationship of total cost incurred through the measurement date to total estimated costs required to complete the project (cost-to-cost method). The Company believes this method best depicts the transfer of goods and services to the customer because it represents satisfaction of the Company’s performance obligation under the contract, which occurs as the Company incurs costs. The Company measures percentage of completion based on the performance of a single performance obligation under its construction projects. Each of the Company’s construction contracts represents a single performance obligation to complete a defined construction project. This is because goods and services promised for delivery to a customer are not distinct, as the customer cannot benefit from any individual portion of the services on its own. All deliverables under a contract are part of a project defined by a customer and represent a series of integrated goods and services that have the same pattern of delivery to the customer and use the same measure of progress toward satisfaction of the performance obligation as the customer’s asset is created or enhanced by the Company. The Company’s obligation is not satisfied until the entire project is complete.

Revenue recognized during a reporting period is based on the cost-to-cost input method applied to the total transaction price, including adjustments for variable consideration, such as liquidated damages, penalties or bonuses, related to the timeliness or quality of project performance. The Company includes variable consideration in the estimated transaction price at the most likely amount to which the Company expects to be entitled or, in the case of liquidated damages or penalties, the most likely amount the Company expects to incur. Such amounts are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company accounts for changes to the estimated transaction price using a cumulative catch-up adjustment.

The majority of the Company’s public construction contracts are fixed unit price contracts. Under fixed unit price contracts, the Company is committed to providing materials or services required by a contract at fixed unit prices (for example, dollars per ton of asphalt placed). The Company’s private customer contracts are primarily fixed total price contracts, also known as lump sum contracts, which require that the total amount of work be performed for a single price. Contract cost is recorded as incurred, and revisions in contract revenue and cost estimates are reflected in the accounting period when known. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract change orders, penalty provisions and final contract settlements, may result in revisions to estimated revenues and costs and are recognized in the period in which the revisions are determined.

Change orders are modifications of an original contract that effectively change the existing provisions of the contract and become part of the single performance obligation that is partially satisfied at the date of the contract modification. This is because goods and services promised under change orders are generally not distinct from the remaining goods and services under the existing contract due to the significant integration of services performed in the context of the contract. Accordingly, change orders are generally accounted for as a modification of the existing contract and a single performance obligation. The Company accounts for the modification using a cumulative catch-up adjustment. Either the Company or its customers may initiate change orders, which may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work.

Revenues derived from the sale of HMA, aggregates, ready-mix concrete, and liquid asphalt are recognized at the point in time at which control of the product is transferred to the customer. Usually, that point in time is when the customer accepts delivery at its facility or receives product in its own transport vehicles from one of the Company’s HMA plants. Upon purchase, the Company generally provides an invoice or similar document detailing the goods transferred to the customer. The Company generally offers payment terms customary in the industry, which typically require payment ranging from point-of-sale to 30 days following purchase.

Income Taxes

The provision for income taxes includes federal and state income taxes. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which the temporary differences are expected to be reversed or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period in which the change is enacted. Management evaluates the realization of deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and deferred tax liabilities are presented on a net basis by taxing authority and classified as non-current on the Consolidated Balance Sheets. The Company classifies income tax-related interest and penalties as interest expense and other expenses, respectively.

Earnings per Share

Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share attributable to common stockholders is the same as basic net income per share attributable to common stockholders, but includes dilutive unvested stock awards using the treasury stock method.

Derivative Instruments

The Company’s derivative instruments consist of commodity and interest rate swap contracts. None of the Company’s derivative instruments are designated as hedges for accounting purposes under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging. Accordingly, the Company records derivative instruments on its Consolidated Balance Sheets as either an asset or liability measured at fair value and records changes in the fair value of derivatives in current earnings in the Consolidated Statements of Income for the period in which the change occurs. Gains and losses on derivatives are included in cash flows from operating activities.

Fair Value Measurements

The Company measures and discloses certain financial assets and liabilities at fair value. ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are classified using the following hierarchy:

Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data.

Level 3. Inputs are unobservable for the asset or liability and include situations in which there is little, if any, market activity for the asset or liability. The inputs used in the determination of fair value are based on the best information available under the circumstances and may require significant management judgment or estimation.

The Company endeavors to utilize the best available information in measuring fair value.

The Company’s financial instruments include cash and cash equivalents, contracts receivable including retainage and accounts payable reflected as current assets and current liabilities on its Consolidated Balance Sheets at June 30, 2021 and September 30, 2020. Due to the short-term nature of these instruments, management considers their carrying value to approximate their fair value.

The Company also has term loans and a revolving credit facility, as described in Note 8 - Debt. The carrying value of amounts outstanding under these credit facilities is reflected as long-term debt, net of current maturities and current maturities of debt on the Company’s Consolidated Balance Sheets at June 30, 2021 and September 30, 2020. Due to the variable rate or short-term nature of these instruments, management considers their carrying value to approximate their fair value.

The Company also has derivative instruments. The fair value of derivative instruments is based on forward and spot prices, as described in Note 16 - Fair Value Measurements.

Management applies fair value measurement guidance to its impairment analysis for tangible and intangible assets.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported net income.

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Accounting Standards

9 Months Ended

Jun. 30, 2021

Accounting Changes and Error Corrections [Abstract]

Accounting Standards

Accounting Standards

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (“Topic 326”), which introduces an impairment model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The amendments pursuant to Topic 326 were effective for fiscal years beginning after December 15, 2019, including

interim periods within those fiscal years. The Company adopted this guidance effective October 1, 2020 as required and noted no material impact to the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). This ASU requires customers in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. ASU 2018-15 was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this guidance effective October 1, 2020 as required and noted no material impact to the Company’s consolidated financial statements.

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Business Acquisitions

9 Months Ended

Jun. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Business Acquisitions

Business Acquisitions

North Carolina Acquisitions

During the three months ended December 31, 2021, a subsidiary of the Company purchased four HMA production and paving companies on the following dates and based in the following locations: (i) on October 8, 2020, in Carthage, North Carolina, (ii) on October 30, 2020, in Ahoskie, North Carolina, (iii) on December 3, 2020, in Raleigh, North Carolina, and (iv) on December 18, 2020, in Kitty Hawk, North Carolina . The acquired businesses added thirteen HMA plants in central and eastern North Carolina, providing the Company with access to additional markets and expanding its footprint in the state.

On June 22, 2021, a subsidiary of the Company acquired a grading and site work company in Wilson, North Carolina, complementing other recent acquisitions in the state and further enhancing the Company's vertical integration of construction services across multiple markets in North Carolina.

The acquisitions were accounted for as business combinations in accordance with ASC 805. The provisional allocation of the purchase price to assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, was determined in accordance with the methodology described under the heading “Fair Value Measurements” above in Note 2 - Significant Accounting Policies. Goodwill primarily represents the assembled workforce and synergies expected to result from the acquisition. Upon finalizing the accounting for these transactions, management expects to ascribe value to other identifiable intangible assets, including customer relationships and customer backlog, which will reduce the provisional amount allocated to goodwill.

For these acquisitions, total consideration is $93.6 million, of which $92.3 million has been paid with cash on hand as of June 30, 2021. The total consideration has been provisionally allocated as follows: $4.2 million of inventory, $56.6 million of property, plant and equipment, $32.1 million of goodwill, and $0.7 million of other intangibles, which are expected to be deductible for income tax purposes. Included in total consideration is a payable to sellers of $1.3 million for purchase price adjustments, which is included in accounts payable at June 30, 2021. The Consolidated Statements of Income includes $31.4 million of revenue and $(1.0) million of net loss attributable to the operations of these acquisitions for the three months ended June 30, 2021 and $50.7 million of revenue and $(4.2) million of net loss attributable to the operations of these acquisitions for the nine months ended June 30, 2021 from their respective acquisition dates.

Results of Operations of Acquisitions Completed Subsequent to June 30, 2020

Unaudited consolidated pro forma revenues and net income, as if acquisitions completed by the Company subsequent to June 30, 2020 (including those described above) had been completed as of October 1, 2019 are as follows (in thousands):

	For the Three Months Ended June 30,
	2021		2020
Pro forma revenues	$	268,401	$	255,186
Pro forma net income	$	9,785	$	15,192

	For the Nine Months Ended June 30,
	2021		2020
Pro forma revenues	$	669,616	$	657,461
Pro forma net income	$	13,961	$	20,936

Pro forma information is presented for informational purposes and may not be indicative of revenue or net income that would have been achieved if the acquisitions had actually been completed as of October 1, 2019.

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Contracts Receivable Including Retainage, net

9 Months Ended

Jun. 30, 2021

Contractors [Abstract]

Contracts Receivable Including Retainage, net

Contracts Receivable Including Retainage, net

Contracts receivable including retainage, net consisted of the following at June 30, 2021 and September 30, 2020 (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Contracts receivable	$	137,958	$	112,197
Retainage	28,197		21,013
	166,155		133,210
Allowance for doubtful accounts	(1,850)		(1,440)
Contracts receivable including retainage, net	$	164,305	$	131,770

Retainage receivables have been billed, but are not due until contract completion and acceptance by the customer.

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Contract Assets and Liabilities

9 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Contract Assets and Liabilities

Contract Assets and Liabilities

Costs and estimated earnings compared to billings on uncompleted contracts at June 30, 2021 and September 30, 2020 consisted of the following (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Costs on uncompleted contracts	$	979,380	$	876,229
Estimated earnings to date on uncompleted contracts	108,771		101,055
	1,088,151		977,284
Billings to date on uncompleted contracts	(1,103,936)		(1,003,115)
Net billings in excess of costs and estimated earnings on uncompleted contracts	$	(15,785)	$	(25,831)

Significant changes to balances of costs and estimated earnings in excess of billings (contract asset) and billings in excess of costs and estimated earnings (contract liability) on uncompleted contracts from September 30, 2020 to June 30, 2021 are presented below (in thousands):

	Costs and Estimated Earnings in Excess of Billings on  Uncompleted Contracts		Billings in Excess of Costs and Estimated Earnings on  Uncompleted Contracts		Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
September 30, 2020	$	7,873	$	(33,704)	$	(25,831)
Changes in revenue billed, contract price or cost estimates	7,897		2,149		10,046
June 30, 2021 (unaudited)	$	15,770	$	(31,555)	$	(15,785)

At June 30, 2021, the Company had unsatisfied or partially unsatisfied performance obligations under construction project contracts representing approximately $627.5 million in aggregate transaction price. The Company expects to earn revenue as it satisfies its performance obligations under those contracts in the amount of approximately $282.3 million during the remainder of the fiscal year ending September 30, 2021 and $345.2 million thereafter.

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Property, Plant, and Equipment

9 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment at June 30, 2021 and September 30, 2020 consisted of the following (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Construction equipment	$	301,821	$	253,157
Plants	123,124		102,392
Land and improvements	49,016		38,760
Quarry reserves	24,378		22,092
Buildings	24,379		18,307
Furniture and fixtures	6,054		5,648
Leasehold improvements	1,135		1,135
Total property, plant and equipment, gross	529,907		441,491
Accumulated depreciation, depletion and amortization	(241,061)		(209,532)
Construction in progress	7,851		5,271
Total property, plant and equipment, net	$	296,697	$	237,230

Depreciation and depletion expense related to property, plant and equipment was $12.4 million and $10.0 million for the three months ended June 30, 2021 and 2020, respectively, and $35.6 million and $28.9 million for the nine months ended June 30, 2021 and 2020, respectively.

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Debt

9 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

Debt

The Company maintains credit facilities to finance acquisitions, to fund the purchase of real estate, construction equipment, plants and other fixed assets, and for general working capital purposes. Debt at June 30, 2021 and September 30, 2020 consisted of the following (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Long-term debt:
Term Loan	$	200,000	$	92,850
Revolving Credit Facility	—		—
Total long-term debt	200,000		92,850
Deferred debt issuance costs	(1,409)		(797)
Current maturities of long-term debt	(10,000)		(13,000)
Long-term debt, net of current maturities	$	188,591	$	79,053

Since June 24, 2021, the Company and each of its subsidiaries have been parties to a Second Amended and Restated Credit Agreement with BBVA USA, as administrative agent, joint lead arranger, sole bookrunner and lender, Regions Bank and BofA Securities, Inc., each as a joint arranger, and certain other lenders (as amended and restated, the “Credit Agreement”). The Credit Agreement provides for a term loan in an initial aggregate principal amount of $200 million (the “Term Loan”) and a revolving credit facility in an initial aggregate principal amount of $225 million (the “Revolving Credit Facility”). Among other things, the proceeds of the Term Loan were used to refinance indebtedness of the Company and its subsidiaries under its prior credit facility.

The Term Loan, inclusive of any incremental borrowings made in the form of a term loan, will amortize in quarterly installments commencing on September 30, 2021 in an amount (subject, in each case, to adjustments for prior mandatory and voluntary prepayments of principal) equal to: (a) 1.25% of the original principal amount of the Term Loan on September 30, 2021 and on each of the following eleven quarter-end payment dates, and (b) 1.875% of the original principal amount of the Term Loan on each of the next seven quarter-end payment dates. The annual interest rates applicable to advances will be calculated, at the Company’s option, by using either a base rate or LIBOR, in each case plus an applicable margin percentage that corresponds to the Company’s consolidated net leverage ratio. Upon the occurrence of certain triggering events relating to the end of the LIBOR reference rate, a different benchmark rate will be selected to replace LIBOR as the reference rate for interest accruing on certain advances. All outstanding advances under the Term Loan and Revolving Credit Facility are due and payable in full on June 24, 2026. Subject to various requirements, the Company generally may (and, under certain circumstances, must), prepay all or a portion of the outstanding balance

of the advances, together with accrued interest thereon, prior to their contractual maturity. The obligations of the Company and its subsidiaries under the Credit Agreement are secured by a first priority security interest in substantially all of the Company’s assets.

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Equity

9 Months Ended

Jun. 30, 2021

Equity [Abstract]

Equity

Equity

Shares of Class A common stock and Class B common stock are identical in all respects, except with respect to voting rights, conversion rights and transfer restrictions applicable to shares of Class B common stock. The holders of Class A common stock are entitled to one vote per share, and the holders of Class B common stock are entitled to ten votes per share. The holders of Class A common stock and Class B common stock vote together as a single class on all matters submitted to a vote of stockholders, including the election of directors, unless otherwise required by applicable law or the Company’s certificate of incorporation or bylaws. Shares of Class B common stock are convertible into shares of Class A common stock at any time at the option of the holder or upon any transfer, subject to certain limited exceptions. In addition, upon the election of the holders of a majority of the then-outstanding shares of Class B common stock, all outstanding shares of Class B common stock will be converted into shares of Class A common stock. Once converted into shares of Class A common stock, shares of Class B common stock will not be reissued. Class A common stock is not convertible into any other class of the Company’s capital stock.

Conversion of Class B Common Stock to Class A Common Stock

During the three months ended June 30, 2021, certain stockholders of the Company converted a total of 787,001 shares of Class B common stock into shares of Class A common stock on a one-for-one basis. As of June 30, 2021, there were 36,506,570 shares of Class A common stock and 15,785,908 shares of Class B common stock outstanding.

Restricted Stock Awards

During the nine months ended June 30, 2021, the Company awarded a total of 510,733 restricted shares of Class A common stock to Company management under the Construction Partners, Inc. 2018 Equity Incentive Plan (the “Equity Incentive Plan”).

Additional information about these transactions is set forth in Note 13 - Equity-Based Compensation.

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Earnings Per Share

9 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

As discussed in Note 9 - Equity, the Company has Class A common stock and Class B common stock. Because the only differences between the two classes of common stock are related to voting rights, conversion rights and transfer restrictions applicable to shares of Class B common stock, the Company has not presented earnings per share under the two-class method, as the earnings per share are the same for both Class A common stock and Class B common stock. The following table summarizes the weighted-average number of basic common shares outstanding and the calculation of basic earnings per share for the periods presented (unaudited in thousands, except share and per share amounts):

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Numerator
Net income (loss) attributable to common shareholders	$	9,340	$	15,747	$	12,276	$	22,745
Denominator
Weighted average number of common shares outstanding, basic	51,686,735		51,489,211		51,620,143		51,489,211
Net income (loss) per common share attributable to common shareholders, basic	$	0.18	$	0.31	$	0.24	$	0.44

The following table summarizes the calculation of the weighted-average number of diluted common shares outstanding and the calculation of diluted earnings per share for the periods presented (unaudited in thousands, except share and per share amounts):

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Numerator
Net income (loss) attributable to common stockholders	$	9,340	$	15,747	$	12,276	$	22,745
Denominator
Weighted average number of basic common shares outstanding, basic	51,686,735		51,489,211		51,620,143		51,489,211
Effect of dilutive securities:
Restricted stock grants under 2018 Equity Incentive Plan	177,668		157,174		106,852		134,416
Weighted average number of diluted common shares outstanding	51,864,403		51,646,385		51,726,994		51,623,627
Net income (loss) per diluted common share attributable to common stockholders	$	0.18	$	0.30	$	0.24	$	0.44

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Provision for Income Taxes

9 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Provision for Income Taxes

Provision for Income Taxes

The Company files a consolidated United States federal income tax return and income tax returns in various states. Management evaluated the Company’s tax positions based on appropriate provisions of applicable tax laws and regulations and believes that they are supportable based on their specific technical merits and the facts and circumstances of the respective transactions.                                                                

The Company’s effective income tax rate for the three months ended June 30, 2021 and 2020 was 33.0% and 23.3%, respectively. The Company’s effective tax rate for the nine months ended June 30, 2021 and 2020 was 32.0% and 22.5%, respectively. The effective income tax rate for the three and nine months ended June 30, 2021 was unfavorably impacted by a non-deductible legal settlement and related legal expenses, as described in Note 19 - Legal Proceedings.

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Related Parties

9 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

Related Parties

Related Parties

On December 31, 2017, the Company sold an indirect wholly owned subsidiary to an immediate family member of an executive officer of the Company (“Purchaser of Subsidiary”) in consideration for an interest-bearing note receivable in the amount of $1.0 million, which approximated the net book value of the disposed entity. At June 30, 2021, $0.1 million and $0.5 million was reflected on the Company’s Consolidated Balance Sheets within other current assets and other assets, respectively, representing the remaining balances on this note receivable. In connection with this transaction, the Company also received an interest-bearing note receivable from the disposed entity (“Disposed Entity”) on December 31, 2017 in the amount of $1.0 million representing certain accounts payable of the disposed entity that were paid by the Company. At June 30, 2021, $0.1 million and $0.3 million was reflected on the Company’s Consolidated Balance Sheets within other current assets and other assets, respectively, representing the remaining balances on this note receivable. Remaining principal and interest payments are scheduled to be made in periodic installments during fiscal year 2021 through fiscal year 2026.

Prior to its acquisition by the Company, a current subsidiary of the Company advanced funds to an entity owned by an immediate family member of an officer of the Company in connection with a land development project. The obligations of the borrower entity to repay the advances were guaranteed by a separate entity owned by the same family member of the officer. Amounts outstanding under the advances did not bear interest and matured in full in March 2021. In March 2021, the subsidiary of the Company amended and restated the terms of the repayment obligation, as a result of which the officer personally assumed the remaining balance of the obligation. No new amounts were advanced to the officer by the Company or any subsidiary or affiliate thereof in connection with the transaction. Under the amended and restated terms, the officer executed a promissory note in favor of the Company’s subsidiary in the principal amount of $0.8 million. The note bears simple interest at a rate of 4.0% and requires annual minimum payments of $0.1 million inclusive of principal and accrued interest, with any remaining principal and accrued interest due and payable in full on December 31, 2027. As security for his payment obligations, the officer pledged as collateral 30,000 shares of the 140,389 shares of Class B common stock that had previously been pledged as collateral and 7,500 shares of Class A common stock owned by the officer personally. Amounts outstanding under the note are reflected on the Company’s Consolidated Balance Sheets within other current assets and other assets (“Land Development Project”).

From time to time, the Company conducts or has conducted business with the following related parties:

•Entities owned by immediate family members of an executive officer of the Company perform subcontract work for a subsidiary of the Company, including trucking and grading services (“Subcontracting Services”).

•From time to time, a subsidiary of the Company provides construction services to various companies owned by family members of an executive officer of the Company (“Construction Services”).

•Since June 1, 2014, the Company has been a party to an access agreement with Island Pond Corporate Services, LLC, which provides a location for the Company to conduct business development activities from time to time on a property owned by the Executive Chairman of the Company’s Board of Directors (“Island Pond”).

•The Company purchases vehicles from an entity owned by a family member of an executive officer of the Company (“Vehicles - Purchases”).

•The Company rents vehicles from an entity owned by a family member of an executive officer of the Company (“Vehicles - Rent Expense”).

•A family member of an executive officer of the Company provides consulting services to a subsidiary of the Company (“Consulting Services”).

•The Company is party to a management services agreement with SunTx, under which the Company pays SunTx $0.27 million per fiscal quarter and reimburses certain travel and other out-of-pocket expenses associated with services rendered under the management services agreement.

The following table presents revenues earned and expenses incurred by the Company during the three and nine months ended June 30, 2021 and 2020, and accounts receivable and payable balances at June 30, 2021 and September 30, 2020, related to transactions with the related parties described above (in thousands):

	Revenue Earned (Expense Incurred)												Accounts Receivable (Payable)
	For the Three Months Ended June 30,						For the Nine Months Ended June 30,						June 30,		September 30,
	2021			2020			2021			2020			2021		2020
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Purchaser of Subsidiary	$	—		$	—		$	—		$	—		$	621	$	621
Disposed Entity	—			—			—			—			396		396
Land Development Project	7			—			8			—			782		774
Subcontracting Services	(2,689)		(1)	(2,983)		(1)	(5,292)		(1)	(5,008)		(1)	(521)		(654)
Construction Services	17		(2)	—		(2)	136		(2)	1,534		(2)	208		123
Island Pond	(80)		(2)	(80)		(2)	(240)		(2)	(240)		(2)	—		—
Vehicles - Purchases	(128)		(3)	(525)		(3)	(536)		(3)	(639)		(3)	—		—
Vehicles - Rent Expense	(31)		(2)	(161)		(2)	(158)		(2)	(562)		(2)	—		—
Consulting Services	—		(2)	(76)		(2)	(32)		(2)	(219)		(2)	—		—
SunTx	(412)		(2)	(355)		(2)	(1,550)		(2)	(1,026)		(2)	—		—
(1) Cost is reflected as cost of revenues on the Company’s Consolidated Statements of Income.
(2) Cost is reflected as general and administrative expenses on the Company’s Consolidated Statements of Income.
(3) Purchases reflected in property, plant and equipment, net, on the Company's Consolidated Balance Sheets.

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Equity-Based Compensation

9 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Equity-Based Compensation

Equity-Based CompensationDuring the fiscal year ended September 30, 2019, the Company awarded a total of 292,534 restricted shares of Class A common stock to its non-employee directors under the Equity Incentive Plan in lieu of any cash compensation. The grants are classified as equity awards. The aggregate grant date fair value of these restricted awards was $3.8 million. During the three and nine months ended June 30, 2021, the Company recorded compensation expense in connection with these grants in the amount of $0.3 million and $1.0 million, respectively, which is reflected as general and administrative expenses in the Company’s Consolidated Statements of Income. At June 30, 2021, there was approximately $0.7 million of unrecognized compensation expense related to these awards.

During the quarter ended March 31, 2021, the Company awarded a total of 510,733 restricted shares of Class A common stock to Company management under the Equity Incentive Plan. The grants are classified as equity awards. The aggregate grant date fair value of these restricted awards was $13.6 million. During the three and nine months ended June 30, 2021, the Company recorded compensation expense in connection with these grants in the amount of $1.0 million and $1.2 million, respectively, which is reflected as general and administrative expenses in the Company’s Consolidated Statements of Income. At June 30, 2021, there was approximately $12.4 million of unrecognized compensation expense related to these awards.

The underlying shares subject to awards granted under the Equity Incentive Plan vested or will vest, as applicable, as follows:

Fiscal Year	Number of Shares
2021	207,706
2022	110,194
2023	12,683
2024	242,684
2025	230,000
Total	803,267

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Leases

9 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

The Company leases certain facilities, office space, vehicles and equipment. As of June 30, 2021, operating leases under ASC Topic 842, Leases, were included in (i) operating lease right-of use assets, (ii) current portion of operating lease liabilities and (iii) operating lease liabilities, net of current portion on the Company’s Consolidated Balance Sheets in the amounts of $6.7 million, $1.5 million and $5.3 million, respectively. As of June 30, 2021, the Company had no lease contracts that had not yet commenced but had created significant rights and obligations.

The components of lease expense were as follows for the periods presented (in thousands):

	For the Three Months Ended June 30,
	2021		2020
	(unaudited)		(unaudited)
Operating lease cost	$	593	$	875
Short-term lease cost	3,732		3,229
Total lease expense	$	4,325	$	4,104

	For the Nine Months Ended June 30,
	2021		2020
	(unaudited)		(unaudited)
Operating lease cost	$	1,946	$	2,652
Short-term lease cost	8,857		10,592
Total lease expense	$	10,803	$	13,244

Short-term leases (i.e., those with terms of 12 months or less) are not capitalized but are expensed on a straight-line basis over the lease term. The majority of the Company's short-term leases relate to equipment used on construction projects. These leases are entered into at periodic rental rates for an unspecified duration and typically have a termination for convenience provision. Short-term lease cost includes leases with terms of one month or less.

As of June 30, 2021, the weighted-average remaining term of the Company’s leases was 9.2 years, and the weighted-average discount rate was 3.89%. As of June 30, 2021, the lease liability was equal to the present value of the remaining lease payments, discounted using the incremental borrowing rate on the Company’s secured debt using a single maturity discount rate, as such rate is not materially different from the discount rate applied to each of the leases in the portfolio.

The following table summarizes the Company’s undiscounted lease liabilities outstanding as of June 30, 2021 (in thousands):

Fiscal Year	Amount (unaudited)
Remainder of 2021	$	511
2022	1,489
2023	1,092
2024	834
2025	663
2026 and thereafter	3,698
Total future minimum lease payments	$	8,287
Less: imputed interest	1,466
Total	$	6,821

The Company has lease agreements associated with quarry facilities under which the Company makes royalty payments. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue was $0.3 million for the three months ended June 30, 2021 and 2020 and $0.7 million and $0.8 million for the nine months ended June 30, 2021 and 2020, respectively.

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Investment in Derivative Instruments

9 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Investment in Derivative Instruments

Investment in Derivative Instruments

The Company’s operations expose it to a variety of market risks, including the effects of changes in commodity prices and changes in interest rates. As part of its risk management process, the Company began entering into commodity swap transactions through regulated commodity exchanges in February 2020. To manage interest rate exposure, the Company has entered into derivative instruments using interest rate swaps. The objective of entering into interest rate swaps is to eliminate the variability of cash flows associated with movements in interest rates over the life of the loans. At June 30, 2021, the aggregate notional value of these interest rate swap agreements was $40.3 million.

The following tables represent the approximate amount of realized and unrealized gains (losses) recognized in earnings on commodity derivative contracts and interest rate swap agreements for the three and nine months ended June 30, 2021 and 2020 and the fair value of these derivatives as of June 30, 2021 and September 30, 2020 (in thousands):

	For the Three Months Ended June 30, 2021 (unaudited)						For the Nine Months Ended June 30, 2021 (unaudited)
	Change in						Change in
Income Statement Classification	Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)		Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)
Cost of revenues	$	302	$	632	$	934	$	257	$	2,390	$	2,647
Interest expense, net	(163)		132		(31)		(511)		751		240
Total	$	139	$	764	$	903	$	(254)	$	3,141	$	2,887

	For the Three Months Ended June 30, 2020 (unaudited)						For the Nine Months Ended June 30, 2020 (unaudited)
	Change in						Change in
Income Statement Classification	Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)		Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)
Cost of revenues	$	(269)	$	394	$	125	$	(290)	$	(403)	$	(693)
Interest expense, net	(217)		(120)		(337)		(266)		(1,586)		(1,852)
Total	$	(486)	$	274	$	(212)	$	(556)	$	(1,989)	$	(2,545)

	June 30, 2021		September 30, 2020
Balance Sheet Classification	(unaudited)
Prepaid expenses and other current assets	$	1,203	$	—
Other assets	684		—
Accrued expense and other current liabilities - commodity swaps	—		(183)
Other long-term liabilities - commodity swaps	—		(320)
Other long-term liabilities - interest rate swaps	(957)		(1,708)
Net unrealized gain (loss) position	$	930	$	(2,211)

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Fair Value Measurements

9 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and September 30, 2020 under ASC 820 (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
	Level 2		Level 2
Assets
Commodity swaps	$	1,887	$	—
Liabilities
Commodity swaps	$	—	$	503
Interest rate swaps	957		1,708

Derivative liabilities included in Level 2 include commodity and interest rate swap contracts. The fair values of the Company’s Level 2 derivative liabilities are estimated using an analysis of the expected cash flow of the contract in combination with marketable observable inputs, including forward and spot prices for commodity swaps and interest rate curves for interest rate swaps.

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Purchase Commitments

9 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Purchase Proceedings

Purchase Commitments As of June 30, 2021, the Company had unconditional purchase commitments for diesel fuel in the normal course of business in the aggregate amount of $0.2 million. As of June 30, 2021, the Company’s purchase commitments for the remainder of fiscal year 2021 and annually thereafter were as follows (in thousands):

Fiscal Year	Amount (unaudited)
Remainder of 2021	$	192
2022	50
Total	$	242

Legal ProceedingsFrom time to time, we are subject to various legal proceedings, regulatory matters or fines that arise in the ordinary course of business.On April 26, 2021, the Company entered into a settlement agreement with a former stockholder of the Company relating to claims arising out of the former stockholder’s sale of shares of the Company’s common stock in a private transaction prior to the Company's initial public offering. Under the settlement agreement, the Company paid $3.2 million to the former stockholder in two installments in exchange for a release of all claims made by the former stockholder against the Company in the arbitration proceeding. As of June 30, 2021, $1.7 million of the remaining settlement payment was included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. The aforementioned settlement and associated legal expenses were determined to be non-deductible expenses, which resulted in an unfavorable permanent tax difference for the three and nine months ended June 30, 2021.

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COVID-19 Pandemic	9 Months Ended
	Jun. 30, 2021
Unusual or Infrequent Items, or Both [Abstract]
COVID-19 Pandemic	COVID-19 PandemicThe Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business, including how it has impacted and may continue to impact the Company’s customers, employees, suppliers, and vendors. While the Company did not incur significant disruptions in its operations from the COVID-19 pandemic during the three and nine months ended June 30, 2021, due to the uncertainties surrounding the COVID-19 pandemic, it is unable to predict the impact that the COVID-19 pandemic will have on its financial position, operating results and cash flows in future periods.

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Legal Proceedings

9 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings

Purchase Commitments As of June 30, 2021, the Company had unconditional purchase commitments for diesel fuel in the normal course of business in the aggregate amount of $0.2 million. As of June 30, 2021, the Company’s purchase commitments for the remainder of fiscal year 2021 and annually thereafter were as follows (in thousands):

Fiscal Year	Amount (unaudited)
Remainder of 2021	$	192
2022	50
Total	$	242

Legal ProceedingsFrom time to time, we are subject to various legal proceedings, regulatory matters or fines that arise in the ordinary course of business.On April 26, 2021, the Company entered into a settlement agreement with a former stockholder of the Company relating to claims arising out of the former stockholder’s sale of shares of the Company’s common stock in a private transaction prior to the Company's initial public offering. Under the settlement agreement, the Company paid $3.2 million to the former stockholder in two installments in exchange for a release of all claims made by the former stockholder against the Company in the arbitration proceeding. As of June 30, 2021, $1.7 million of the remaining settlement payment was included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. The aforementioned settlement and associated legal expenses were determined to be non-deductible expenses, which resulted in an unfavorable permanent tax difference for the three and nine months ended June 30, 2021.

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Subsequent Events

9 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Alabama Acquisition

On July 30, 2021, a subsidiary of the Company acquired the operations of an HMA production and paving company and its affiliated aggregates company headquartered in Cullman, Alabama. As a result of the acquisition, the Company added four HMA plants, four aggregate facilities, and a diverse fleet of trucks and construction equipment to support its operations in central and northern Alabama.

North Carolina Acquisition

On August 2, 2021, a subsidiary of the Company acquired a crushed stone and aggregates facility located near Goldston, North Carolina. The purchase enhanced the Company’s vertical integration strategy of construction materials to support its HMA production operations. The Company expects to use the aggregates mined from this facility to supply multiple HMA plants that the Company acquired during the first quarter of fiscal 2021.

Both acquisitions will be accounted for as business combinations in accordance with ASC 805. The combined purchase price of $112.9 million (exclusive of consideration to the seller for inventory assets acquired at the Goldston, North Carolina facility) was paid from cash on hand at closing. In each case, the provisional allocation of the purchase price to assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, was determined in accordance with the methodology described under Fair Value Measurements above in Note 2 - Significant Accounting Policies. The amount of the purchase price exceeding the preliminary net fair value of identifiable assets acquired and liabilities assumed is expected to be recorded as goodwill, which is deductible for income tax purposes. Goodwill primarily represents the assembled workforce and synergies expected to result from the acquisition. Upon finalizing the accounting for these transactions, management expects to ascribe value to other identifiable intangible assets, including customer relationships and customer backlog, which will reduce the preliminary amount allocated to goodwill.

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Significant Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of PresentationThese consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. These interim consolidated statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), which permit reduced disclosure for interim periods. The Company's Consolidated Balance Sheets as of September 30, 2020 were derived from the Company's audited financial statements for the fiscal year then ended, but do not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) with respect to annual financial statements. In the opinion of management, these unaudited consolidated financial statements include all recurring adjustments and normal accruals necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the dates and periods presented. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited annual consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2020 (the “2020 Form 10-K”). Results for interim periods are not necessarily indicative of the results to be expected for a full fiscal year or for any future period.

Management’s Estimates

Management’s Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the recorded amounts of assets, liabilities, stockholders’ equity, revenues and expenses during the reporting period, and the disclosure of contingent liabilities at the date of the consolidated financial statements. Estimates are used in accounting for items such as recognition of revenues and cost of revenues, goodwill and other intangible assets, business acquisition accounting estimates, valuation of operating lease right-of-use assets, allowance for doubtful accounts, valuation allowances related to income taxes, accruals for potential liabilities related to lawsuits or insurance claims, the fair value of derivative instruments and the fair value of equity-based compensation awards. Estimates are continually evaluated based on historical information and actual experience; however, actual results could differ from these estimates.

A description of certain critical accounting policies of the Company is presented below. Additional critical accounting policies and the underlying judgments and uncertainties are described in the notes to the Company’s annual consolidated financial statements included in the 2020 Form 10-K.

Emerging Growth Company

Emerging Growth Company

The Company is an “emerging growth company,” as defined by the Jumpstart Our Business Startups Act enacted in April 2012. As an emerging growth company, the Company could have taken advantage of an exemption that would have allowed the Company to wait to comply with new or revised financial accounting standards until the effective date of such standards for private companies. However, the Company has irrevocably elected to opt out of such extended transition period, which means that when a new or revised standard has a different effective date for public and private companies, the Company is required to adopt the standard on the effective date applicable to public companies that are not emerging growth companies.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash consists principally of currency on hand and demand deposits at commercial banks. Cash equivalents are short-term, highly liquid investments that are both readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents include investments with original maturities of three months or less. The Company maintains demand accounts, money market accounts and certificates of deposit at several banks. From time to time, the account balances have exceeded the maximum available federal deposit insurance coverage limit. The Company has not experienced any losses in such accounts and regularly monitors its credit risk.

Contracts Receivable Including Retainage, net

Contracts Receivable Including Retainage, net

Contracts receivable are generally based on amounts billed and currently due from customers, amounts currently due but unbilled, and amounts retained by the customer pending completion of a project. It is common in the Company’s industry for a small portion of either progress billings or the contract price, typically 10%, to be withheld by the customer until the Company completes a project to the satisfaction of the customer in accordance with the applicable contract terms. Such amounts, defined as retainage, represent a contract asset and are included on the Company's Consolidated Balance Sheets as “Contracts receivable including retainage, net”. Based on the Company’s experience with similar contracts in recent years, billings for such retainage balances are generally collected within one year of the completion of the project.

Contracts receivable including retainage, net are stated at the amount management expects to collect from outstanding balances. Management provides for uncollectible accounts through a charge to earnings and a credit to the allowance for doubtful accounts based on its assessment of the current status of individual accounts, type of service performed, current economic conditions, historical losses and other information available to management. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and an adjustment to the contract receivable.

Contract Assets and Contract Liabilities

Contract Assets and Contract Liabilities

Billing practices for the Company’s contracts are governed by the contract terms of each project and are typically based on (i) progress toward completion approved by the owner or customer, (ii) achievement of milestones or (iii) pre-agreed schedules. Billings do not necessarily correlate with revenues recognized under the cost-to-cost input method (formerly known as the percentage-of-completion method). The Company records contract assets and contract liabilities to account for these differences in timing.

The contract asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” arises when the Company recognizes revenues for services performed under its construction projects, but the Company is not yet entitled to bill the customer under the terms of the contract. Amounts billed to customers are excluded from this asset and reflected on the Consolidated Balance Sheets as “Contracts receivable including retainage, net”. Included in costs and estimated earnings in excess of billings on uncompleted contracts are amounts the Company seeks or will seek to collect from customers or others for (i) errors, (ii) changes in contract specifications or design, (iii) contract change orders in dispute, unapproved as to scope and price, or (iv) other customer-related causes of unanticipated additional contract costs (such as claims). Such amounts are recorded to the extent that the amount can be reasonably estimated and recovery is probable. Claims and unapproved change orders made by the Company may involve negotiation and, in rare cases, litigation. Unapproved change orders and claims also involve the use of estimates, and revenues associated with unapproved change orders and claims are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company did not recognize any material amounts associated with claims and unapproved change orders during the periods presented.

The contract liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents the Company’s obligation to transfer to a customer goods or services for which the Company has been paid by the customer or for which the Company has billed the customer under the terms of the contract. Revenue for future services reflected in this account are recognized, and the liability is reduced, as the Company subsequently satisfies the performance obligation under the contract.

Costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts are typically resolved within one year and are not considered significant financing components.

Concentration of Risks

Concentration of Risks

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of contracts receivable including retainage, net. In the normal course of business, the Company provides credit to its customers and does not generally require collateral. The Company monitors concentrations of credit risk associated with these receivables on an ongoing basis. The Company has not historically experienced significant credit losses, due primarily to management’s assessment of customers’ credit ratings. The Company principally deals with recurring customers, state and local governments and well-known local companies whose reputations are known to management. The Company performs credit checks for significant new customers and generally requires progress payments for significant projects. The Company generally has the ability to file liens against the property if payments are not made on a timely basis. No single customer accounted for more than 10% of the Company’s contracts receivable including retainage, net balance at June 30, 2021 or September 30, 2020.

Revenue From Contract with Customers

Revenues from Contracts with Customers

The Company derives all of its revenues from contracts with its customers, predominantly by performing construction services for both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports and commercial and residential developments. These projects are performed for a mix of federal, state, municipal and private customers. In addition, the Company derives revenues from the sale of construction materials, including HMA, aggregates, liquid asphalt cement and ready-mix concrete to third-party public and private customers pursuant to contracts with those customers. The following table reflects, for the periods presented, (i) the percentage of revenues generated from public infrastructure construction projects and the sale of construction materials to public customers and (ii) the percentage of revenues generated from private infrastructure construction projects and the sale of construction materials to private customers.

	% of Consolidated Revenues
	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Private	38.5	%	30.9	%	40.0	%	36.1	%
Public	61.5	%	69.1	%	60.0	%	63.9	%

Revenues derived from construction projects are recognized over time as the Company satisfies its performance obligations by transferring to the customer control of the asset created or enhanced by the project. Recognition of revenues and cost of revenues for construction projects requires significant judgment by management, including, among other things, estimating total costs expected to be incurred to complete a project and measuring progress toward completion. Management reviews contract estimates regularly to assess revisions of estimated costs to complete a project and measurement of progress toward completion.

Management believes the Company maintains reasonable estimates based on prior experience; however, many factors contribute to changes in estimates of contract costs. Accordingly, estimates made with respect to uncompleted projects are subject to change as each project progresses and better estimates of contract costs become available. All contract costs are recorded as incurred, and revisions to estimated total costs are reflected as soon as the obligation to perform is determined. Provisions are recognized for the full amount of estimated losses on uncompleted contracts whenever evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue, regardless of the stage of completion. When the Company incurs additional costs related to work performed by subcontractors, the Company may be able to utilize contractual provisions to back charge the subcontractors for those costs. A reduction to costs related to back charges is recognized when the estimated recovery is probable and the amount can be reasonably estimated. Contract costs consist of (i) direct costs on contracts, including labor, materials, and amounts payable to subcontractors and

(ii) indirect costs related to contract performance, such as insurance, employee benefits, and equipment (primarily depreciation, fuel, maintenance and repairs).

Progress toward completion is estimated using the input method, measured by the relationship of total cost incurred through the measurement date to total estimated costs required to complete the project (cost-to-cost method). The Company believes this method best depicts the transfer of goods and services to the customer because it represents satisfaction of the Company’s performance obligation under the contract, which occurs as the Company incurs costs. The Company measures percentage of completion based on the performance of a single performance obligation under its construction projects. Each of the Company’s construction contracts represents a single performance obligation to complete a defined construction project. This is because goods and services promised for delivery to a customer are not distinct, as the customer cannot benefit from any individual portion of the services on its own. All deliverables under a contract are part of a project defined by a customer and represent a series of integrated goods and services that have the same pattern of delivery to the customer and use the same measure of progress toward satisfaction of the performance obligation as the customer’s asset is created or enhanced by the Company. The Company’s obligation is not satisfied until the entire project is complete.

Revenue recognized during a reporting period is based on the cost-to-cost input method applied to the total transaction price, including adjustments for variable consideration, such as liquidated damages, penalties or bonuses, related to the timeliness or quality of project performance. The Company includes variable consideration in the estimated transaction price at the most likely amount to which the Company expects to be entitled or, in the case of liquidated damages or penalties, the most likely amount the Company expects to incur. Such amounts are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company accounts for changes to the estimated transaction price using a cumulative catch-up adjustment.

The majority of the Company’s public construction contracts are fixed unit price contracts. Under fixed unit price contracts, the Company is committed to providing materials or services required by a contract at fixed unit prices (for example, dollars per ton of asphalt placed). The Company’s private customer contracts are primarily fixed total price contracts, also known as lump sum contracts, which require that the total amount of work be performed for a single price. Contract cost is recorded as incurred, and revisions in contract revenue and cost estimates are reflected in the accounting period when known. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract change orders, penalty provisions and final contract settlements, may result in revisions to estimated revenues and costs and are recognized in the period in which the revisions are determined.

Change orders are modifications of an original contract that effectively change the existing provisions of the contract and become part of the single performance obligation that is partially satisfied at the date of the contract modification. This is because goods and services promised under change orders are generally not distinct from the remaining goods and services under the existing contract due to the significant integration of services performed in the context of the contract. Accordingly, change orders are generally accounted for as a modification of the existing contract and a single performance obligation. The Company accounts for the modification using a cumulative catch-up adjustment. Either the Company or its customers may initiate change orders, which may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work.

Revenues derived from the sale of HMA, aggregates, ready-mix concrete, and liquid asphalt are recognized at the point in time at which control of the product is transferred to the customer. Usually, that point in time is when the customer accepts delivery at its facility or receives product in its own transport vehicles from one of the Company’s HMA plants. Upon purchase, the Company generally provides an invoice or similar document detailing the goods transferred to the customer. The Company generally offers payment terms customary in the industry, which typically require payment ranging from point-of-sale to 30 days following purchase.

Income Taxes

Income Taxes

The provision for income taxes includes federal and state income taxes. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which the temporary differences are expected to be reversed or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period in which the change is enacted. Management evaluates the realization of deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and deferred tax liabilities are presented on a net basis by taxing authority and classified as non-current on the Consolidated Balance Sheets. The Company classifies income tax-related interest and penalties as interest expense and other expenses, respectively.

Earnings per Share

Earnings per ShareBasic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share attributable to common stockholders is the same as basic net income per share attributable to common stockholders, but includes dilutive unvested stock awards using the treasury stock method.

Derivative Instruments

Derivative Instruments

The Company’s derivative instruments consist of commodity and interest rate swap contracts. None of the Company’s derivative instruments are designated as hedges for accounting purposes under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging. Accordingly, the Company records derivative instruments on its Consolidated Balance Sheets as either an asset or liability measured at fair value and records changes in the fair value of derivatives in current earnings in the Consolidated Statements of Income for the period in which the change occurs. Gains and losses on derivatives are included in cash flows from operating activities.

Fair Value Measurements

Fair Value Measurements

The Company measures and discloses certain financial assets and liabilities at fair value. ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are classified using the following hierarchy:

Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data.

Level 3. Inputs are unobservable for the asset or liability and include situations in which there is little, if any, market activity for the asset or liability. The inputs used in the determination of fair value are based on the best information available under the circumstances and may require significant management judgment or estimation.

The Company endeavors to utilize the best available information in measuring fair value.

The Company’s financial instruments include cash and cash equivalents, contracts receivable including retainage and accounts payable reflected as current assets and current liabilities on its Consolidated Balance Sheets at June 30, 2021 and September 30, 2020. Due to the short-term nature of these instruments, management considers their carrying value to approximate their fair value.

The Company also has term loans and a revolving credit facility, as described in Note 8 - Debt. The carrying value of amounts outstanding under these credit facilities is reflected as long-term debt, net of current maturities and current maturities of debt on the Company’s Consolidated Balance Sheets at June 30, 2021 and September 30, 2020. Due to the variable rate or short-term nature of these instruments, management considers their carrying value to approximate their fair value.

The Company also has derivative instruments. The fair value of derivative instruments is based on forward and spot prices, as described in Note 16 - Fair Value Measurements.

Management applies fair value measurement guidance to its impairment analysis for tangible and intangible assets.

Reclassifications

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported net income.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (“Topic 326”), which introduces an impairment model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The amendments pursuant to Topic 326 were effective for fiscal years beginning after December 15, 2019, including

interim periods within those fiscal years. The Company adopted this guidance effective October 1, 2020 as required and noted no material impact to the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). This ASU requires customers in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. ASU 2018-15 was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this guidance effective October 1, 2020 as required and noted no material impact to the Company’s consolidated financial statements.

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Significant Accounting Policies (Tables)

9 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Schedule of Customer Concentration Risk

Customers that accounted for more than 10.0% of consolidated revenues during any of those periods are presented below.

	% of Consolidated Revenues
	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Alabama Department of Transportation	10.9	%	13.2	%	9.3	%	11.1	%
North Carolina Department of Transportation	12.2	%	9.0	%	8.7	%	8.4	%

Schedule of Revenue by Major Customers

The following table reflects, for the periods presented, (i) the percentage of revenues generated from public infrastructure construction projects and the sale of construction materials to public customers and (ii) the percentage of revenues generated from private infrastructure construction projects and the sale of construction materials to private customers.

	% of Consolidated Revenues
	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Private	38.5	%	30.9	%	40.0	%	36.1	%
Public	61.5	%	69.1	%	60.0	%	63.9	%

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Business Acquisitions (Tables)

9 Months Ended

Jun. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of pro forma revenues and net income

Unaudited consolidated pro forma revenues and net income, as if acquisitions completed by the Company subsequent to June 30, 2020 (including those described above) had been completed as of October 1, 2019 are as follows (in thousands):

	For the Three Months Ended June 30,
	2021		2020
Pro forma revenues	$	268,401	$	255,186
Pro forma net income	$	9,785	$	15,192

	For the Nine Months Ended June 30,
	2021		2020
Pro forma revenues	$	669,616	$	657,461
Pro forma net income	$	13,961	$	20,936

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Contracts Receivable Including Retainage, net (Tables)

9 Months Ended

Jun. 30, 2021

Contractors [Abstract]

Schedule of Contracts Receivable Including Retainage, Net

Contracts receivable including retainage, net consisted of the following at June 30, 2021 and September 30, 2020 (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Contracts receivable	$	137,958	$	112,197
Retainage	28,197		21,013
	166,155		133,210
Allowance for doubtful accounts	(1,850)		(1,440)
Contracts receivable including retainage, net	$	164,305	$	131,770

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Contract Assets and Liabilities (Tables)

9 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Costs and Estimated Earnings Compared to Billings on Uncompleted Contracts

Costs and estimated earnings compared to billings on uncompleted contracts at June 30, 2021 and September 30, 2020 consisted of the following (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Costs on uncompleted contracts	$	979,380	$	876,229
Estimated earnings to date on uncompleted contracts	108,771		101,055
	1,088,151		977,284
Billings to date on uncompleted contracts	(1,103,936)		(1,003,115)
Net billings in excess of costs and estimated earnings on uncompleted contracts	$	(15,785)	$	(25,831)

Significant changes to balances of costs and estimated earnings in excess of billings (contract asset) and billings in excess of costs and estimated earnings (contract liability) on uncompleted contracts from September 30, 2020 to June 30, 2021 are presented below (in thousands):

	Costs and Estimated Earnings in Excess of Billings on  Uncompleted Contracts		Billings in Excess of Costs and Estimated Earnings on  Uncompleted Contracts		Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
September 30, 2020	$	7,873	$	(33,704)	$	(25,831)
Changes in revenue billed, contract price or cost estimates	7,897		2,149		10,046
June 30, 2021 (unaudited)	$	15,770	$	(31,555)	$	(15,785)

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Property, Plant, and Equipment (Tables)

9 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment at June 30, 2021 and September 30, 2020 consisted of the following (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Construction equipment	$	301,821	$	253,157
Plants	123,124		102,392
Land and improvements	49,016		38,760
Quarry reserves	24,378		22,092
Buildings	24,379		18,307
Furniture and fixtures	6,054		5,648
Leasehold improvements	1,135		1,135
Total property, plant and equipment, gross	529,907		441,491
Accumulated depreciation, depletion and amortization	(241,061)		(209,532)
Construction in progress	7,851		5,271
Total property, plant and equipment, net	$	296,697	$	237,230

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Debt (Tables)

9 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Debt

Debt at June 30, 2021 and September 30, 2020 consisted of the following (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
Long-term debt:
Term Loan	$	200,000	$	92,850
Revolving Credit Facility	—		—
Total long-term debt	200,000		92,850
Deferred debt issuance costs	(1,409)		(797)
Current maturities of long-term debt	(10,000)		(13,000)
Long-term debt, net of current maturities	$	188,591	$	79,053

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Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Summary of Earnings Per Share

The following table summarizes the weighted-average number of basic common shares outstanding and the calculation of basic earnings per share for the periods presented (unaudited in thousands, except share and per share amounts):

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Numerator
Net income (loss) attributable to common shareholders	$	9,340	$	15,747	$	12,276	$	22,745
Denominator
Weighted average number of common shares outstanding, basic	51,686,735		51,489,211		51,620,143		51,489,211
Net income (loss) per common share attributable to common shareholders, basic	$	0.18	$	0.31	$	0.24	$	0.44

The following table summarizes the calculation of the weighted-average number of diluted common shares outstanding and the calculation of diluted earnings per share for the periods presented (unaudited in thousands, except share and per share amounts):

	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2021		2020		2021		2020
Numerator
Net income (loss) attributable to common stockholders	$	9,340	$	15,747	$	12,276	$	22,745
Denominator
Weighted average number of basic common shares outstanding, basic	51,686,735		51,489,211		51,620,143		51,489,211
Effect of dilutive securities:
Restricted stock grants under 2018 Equity Incentive Plan	177,668		157,174		106,852		134,416
Weighted average number of diluted common shares outstanding	51,864,403		51,646,385		51,726,994		51,623,627
Net income (loss) per diluted common share attributable to common stockholders	$	0.18	$	0.30	$	0.24	$	0.44

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Related Parties (Tables)

9 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

Schedule of related party transactions

The following table presents revenues earned and expenses incurred by the Company during the three and nine months ended June 30, 2021 and 2020, and accounts receivable and payable balances at June 30, 2021 and September 30, 2020, related to transactions with the related parties described above (in thousands):

	Revenue Earned (Expense Incurred)												Accounts Receivable (Payable)
	For the Three Months Ended June 30,						For the Nine Months Ended June 30,						June 30,		September 30,
	2021			2020			2021			2020			2021		2020
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Purchaser of Subsidiary	$	—		$	—		$	—		$	—		$	621	$	621
Disposed Entity	—			—			—			—			396		396
Land Development Project	7			—			8			—			782		774
Subcontracting Services	(2,689)		(1)	(2,983)		(1)	(5,292)		(1)	(5,008)		(1)	(521)		(654)
Construction Services	17		(2)	—		(2)	136		(2)	1,534		(2)	208		123
Island Pond	(80)		(2)	(80)		(2)	(240)		(2)	(240)		(2)	—		—
Vehicles - Purchases	(128)		(3)	(525)		(3)	(536)		(3)	(639)		(3)	—		—
Vehicles - Rent Expense	(31)		(2)	(161)		(2)	(158)		(2)	(562)		(2)	—		—
Consulting Services	—		(2)	(76)		(2)	(32)		(2)	(219)		(2)	—		—
SunTx	(412)		(2)	(355)		(2)	(1,550)		(2)	(1,026)		(2)	—		—
(1) Cost is reflected as cost of revenues on the Company’s Consolidated Statements of Income.
(2) Cost is reflected as general and administrative expenses on the Company’s Consolidated Statements of Income.
(3) Purchases reflected in property, plant and equipment, net, on the Company's Consolidated Balance Sheets.

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Equity-Based Compensation (Tables)

9 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Share-based Compensation Arrangements by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding

The underlying shares subject to awards granted under the Equity Incentive Plan vested or will vest, as applicable, as follows:

Fiscal Year	Number of Shares
2021	207,706
2022	110,194
2023	12,683
2024	242,684
2025	230,000
Total	803,267

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Leases (Tables)

9 Months Ended

Jun. 30, 2021

Leases [Abstract]

Lease, Cost

The components of lease expense were as follows for the periods presented (in thousands):

	For the Three Months Ended June 30,
	2021		2020
	(unaudited)		(unaudited)
Operating lease cost	$	593	$	875
Short-term lease cost	3,732		3,229
Total lease expense	$	4,325	$	4,104

	For the Nine Months Ended June 30,
	2021		2020
	(unaudited)		(unaudited)
Operating lease cost	$	1,946	$	2,652
Short-term lease cost	8,857		10,592
Total lease expense	$	10,803	$	13,244

Schedule of Future Lease Liabilities

The following table summarizes the Company’s undiscounted lease liabilities outstanding as of June 30, 2021 (in thousands):

Fiscal Year	Amount (unaudited)
Remainder of 2021	$	511
2022	1,489
2023	1,092
2024	834
2025	663
2026 and thereafter	3,698
Total future minimum lease payments	$	8,287
Less: imputed interest	1,466
Total	$	6,821

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Investment in Derivative Instruments (Tables)

9 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments, Income Statement and Balance Sheet Classification

The following tables represent the approximate amount of realized and unrealized gains (losses) recognized in earnings on commodity derivative contracts and interest rate swap agreements for the three and nine months ended June 30, 2021 and 2020 and the fair value of these derivatives as of June 30, 2021 and September 30, 2020 (in thousands):

	For the Three Months Ended June 30, 2021 (unaudited)						For the Nine Months Ended June 30, 2021 (unaudited)
	Change in						Change in
Income Statement Classification	Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)		Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)
Cost of revenues	$	302	$	632	$	934	$	257	$	2,390	$	2,647
Interest expense, net	(163)		132		(31)		(511)		751		240
Total	$	139	$	764	$	903	$	(254)	$	3,141	$	2,887

	For the Three Months Ended June 30, 2020 (unaudited)						For the Nine Months Ended June 30, 2020 (unaudited)
	Change in						Change in
Income Statement Classification	Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)		Realized Gain (Loss)		Unrealized Gain (Loss)		Total Gain (Loss)
Cost of revenues	$	(269)	$	394	$	125	$	(290)	$	(403)	$	(693)
Interest expense, net	(217)		(120)		(337)		(266)		(1,586)		(1,852)
Total	$	(486)	$	274	$	(212)	$	(556)	$	(1,989)	$	(2,545)

	June 30, 2021		September 30, 2020
Balance Sheet Classification	(unaudited)
Prepaid expenses and other current assets	$	1,203	$	—
Other assets	684		—
Accrued expense and other current liabilities - commodity swaps	—		(183)
Other long-term liabilities - commodity swaps	—		(320)
Other long-term liabilities - interest rate swaps	(957)		(1,708)
Net unrealized gain (loss) position	$	930	$	(2,211)

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Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value, Liabilities Measured on Recurring Basis

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and September 30, 2020 under ASC 820 (in thousands):

	June 30, 2021		September 30, 2020
	(unaudited)
	Level 2		Level 2
Assets
Commodity swaps	$	1,887	$	—
Liabilities
Commodity swaps	$	—	$	503
Interest rate swaps	957		1,708

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Purchase Commitments (Tables)

9 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Unconditional Purchase Commitments

As of June 30, 2021, the Company’s purchase commitments for the remainder of fiscal year 2021 and annually thereafter were as follows (in thousands):

Fiscal Year	Amount (unaudited)
Remainder of 2021	$	192
2022	50
Total	$	242

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Significant Accounting Policies - Revenue by Major Customers (Details) - Revenues - Customer Concentration Risk	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Department of Transportation
Concentration Risk [Line Items]
Concentration risk percentage	35.90%	36.80%	30.70%	32.30%
Alabama Department of Transportation
Concentration Risk [Line Items]
Concentration risk percentage	10.90%	13.20%	9.30%	11.10%
North Carolina Department of Transportation
Concentration Risk [Line Items]
Concentration risk percentage	12.20%	9.00%	8.70%	8.40%
Private
Concentration Risk [Line Items]
Concentration risk percentage	38.50%	30.90%	40.00%	36.10%
Public
Concentration Risk [Line Items]
Concentration risk percentage	61.50%	69.10%	60.00%	63.90%

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Business Acquisitions - Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2021 USD ($) acquisition plant	Sep. 30, 2020 USD ($)
Business Acquisition [Line Items]
Number of businesses acquired | acquisition		4
Number of plants added | plant		13
Goodwill	$ 78,444	$ 78,444	$ 46,348
Net loss	(1,000)	(4,200)
All Acquisitions for Fiscal Year
Business Acquisition [Line Items]
Consideration transferred	93,600
Cash payment to acquire business	92,300
Inventory assumed	4,200	4,200
Property, plant and equipment allocation	56,600	56,600
Goodwill	32,100	32,100
Other intangibles	700	700
Accounts payable	1,300	1,300
Revenues since acquisition date	$ 31,400	$ 50,700

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Business Acquisitions - Proforma Revenue and Net Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Business Combination and Asset Acquisition [Abstract]
Pro forma revenues	$ 268,401	$ 255,186	$ 669,616	$ 657,461
Pro forma net income	$ 9,785	$ 15,192	$ 13,961	$ 20,936

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Contracts Receivable Including Retainage, net (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Contractors [Abstract]
Contracts receivable	$ 137,958	$ 112,197
Retainage	28,197	21,013
Contracts receivable including retainage, gross	166,155	133,210
Allowance for doubtful accounts	(1,850)	(1,440)
Contracts receivable including retainage, net	$ 164,305	$ 131,770

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Contract Assets and Liabilities - Cost and Estimated Earnings Compared to Billings on Uncompleted Contracts (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Costs on uncompleted contracts	$ 979,380	$ 876,229
Estimated earnings to date on uncompleted contracts	108,771	101,055
Costs and estimated earnings to date on uncompleted contracts	1,088,151	977,284
Billings to date on uncompleted contracts	(1,103,936)	(1,003,115)
Net billings in excess of costs and estimated earnings on uncompleted contracts	$ (15,785)	$ (25,831)

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Contract Assets and Liabilities - Reconciliation of Net Billings in Excess of Costs and Estimated Earnings (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2021 USD ($)
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts
Contract asset, beginning balance	$ 7,873
Changes in revenue billed, contract price or cost estimates	7,897
Contract asset, ending balance	15,770
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
Contract liability, beginning balance	(33,704)
Changes in revenue billed, contract price or cost estimates	2,149
Contract liability, ending balance	(31,555)
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
Net billings in excess of costs, beginning balance	(25,831)
Changes in revenue billed, contract price or cost estimates	10,046
Net billings in excess of costs, Ending balance	$ (15,785)

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Contract Assets and Liabilities - Narrative (Details) $ in Millions	Jun. 30, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 627.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 282.3
Remaining performance obligation, expected timing of satisfaction, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 345.2
Remaining performance obligation, expected timing of satisfaction, period

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Property, Plant, and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 529,907	$ 441,491
Accumulated depreciation, depletion and amortization	(241,061)	(209,532)
Construction in progress	7,851	5,271
Total property, plant and equipment, net	296,697	237,230
Construction equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	301,821	253,157
Plants
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	123,124	102,392
Land and improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	49,016	38,760
Quarry reserves
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	24,378	22,092
Buildings
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	24,379	18,307
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	6,054	5,648
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 1,135	$ 1,135

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Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Depreciation and depletion expense	$ 12.4	$ 10.0	$ 35.6	$ 28.9

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Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Long-term debt	$ 200,000	$ 92,850
Deferred debt issuance costs	(1,409)	(797)
Current maturities of long-term debt	(10,000)	(13,000)
Long-term debt, net of current maturities	188,591	79,053
Term Loan
Debt Instrument [Line Items]
Long-term debt	200,000	92,850
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 0

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Debt - Additional Information (Details) - USD ($)	Sep. 30, 2021	Jun. 24, 2021
Revolving Credit Facility
Subsequent Event [Line Items]
Line of credit, maximum borrowing capacity		$ 225,000,000
Term Loan
Subsequent Event [Line Items]
Line of credit, maximum borrowing capacity		$ 200,000,000
Term Loan - 11 Loan Payments | Subsequent Event
Subsequent Event [Line Items]
Interest rate	1.25%
Term Loan - Last 7 Loan Payments | Subsequent Event
Subsequent Event [Line Items]
Interest rate	1.875%

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Equity (Details)	3 Months Ended				9 Months Ended
	Jun. 30, 2021 voting_right shares	Mar. 31, 2021 shares	Jun. 30, 2020 shares	Dec. 31, 2019 shares	Jun. 30, 2021 voting_right shares
Class A Common Stock
Schedule Of Stockholders Equity [Line Items]
Voting rights per share | voting_right	1				1
Class A Common Stock | Restricted Stock | Equity Incentive Plan
Schedule Of Stockholders Equity [Line Items]
Options granted (in shares)	510,733	510,733
Class A Common Stock | Common Stock
Schedule Of Stockholders Equity [Line Items]
Converted shares (in shares)	787,001	1,332,952	724,946	107,682
Stock split, conversion ratio					1
Outstanding shares (in shares)	36,506,570				36,506,570
Options granted (in shares)		510,733
Class B Common Stock
Schedule Of Stockholders Equity [Line Items]
Voting rights per share | voting_right	10				10
Class B Common Stock | Common Stock
Schedule Of Stockholders Equity [Line Items]
Converted shares (in shares)	(787,001)	(1,332,952)	(724,946)	(107,682)
Outstanding shares (in shares)	15,785,908				15,785,908

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Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2021	Jun. 30, 2020
Net Income (Loss) Attributable to Parent [Abstract]
Net income (loss) attributable to common shareholders	$ 9,340	$ (4,935)	$ 7,871	$ 15,747	$ 1,537	$ 5,461	$ 12,276	$ 22,745
Earnings Per Share, Basic [Abstract]
Weighted average number of basic common shares outstanding (in shares)	51,686,735			51,489,211			51,620,143	51,489,211
Net income (loss) per common share attributable to common shareholders, basic (in dollars per share)	$ 0.18			$ 0.31			$ 0.24	$ 0.44

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Earnings Per Share - Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2021	Jun. 30, 2020
Numerator
Net income (loss) attributable to common shareholders	$ 9,340	$ (4,935)	$ 7,871	$ 15,747	$ 1,537	$ 5,461	$ 12,276	$ 22,745
Denominator
Weighted average number of basic common shares outstanding (in shares)	51,686,735			51,489,211			51,620,143	51,489,211
Effect of dilutive securities:
Restricted stock grants under 2018 Equity Incentive Plan (in shares)	177,668			157,174			106,852	134,416
Weighted average number of diluted common shares outstanding (in shares)	51,864,403			51,646,385			51,726,994	51,623,627
Net income (loss) per diluted common share attributable to common stockholders (in dollars per share)	$ 0.18			$ 0.30			$ 0.24	$ 0.44

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Provision for Income Taxes (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective tax rate, percent	33.00%	23.30%	32.00%	22.50%

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Related Parties - Additional Information (Details) - USD ($)	1 Months Ended		9 Months Ended
	Mar. 31, 2021	Dec. 31, 2017	Jun. 30, 2021
Affiliated Entity
Related Party Transaction [Line Items]
Debt instrument, face amount	$ 800,000
Interest rate	4.00%
Annual principal payment	$ 100,000
Affiliated Entity | Class B Common Stock
Related Party Transaction [Line Items]
Shares pledged as collateral (in shares)	30,000	140,389
Affiliated Entity | Class A Common Stock
Related Party Transaction [Line Items]
Shares pledged as collateral (in shares)	7,500
SunTx Capital Partners | Affiliated Entity
Related Party Transaction [Line Items]
Payment to related party			$ 270,000
Consideration Note Receivable
Related Party Transaction [Line Items]
Note receivable as consideration for sale of the wholly-owned subsidiary		$ 1,000,000.0
Accounts Payable Note Receivable
Related Party Transaction [Line Items]
Note receivable as consideration for sale of the wholly-owned subsidiary		$ 1,000,000.0
Other Current Assets | Consideration Note Receivable
Related Party Transaction [Line Items]
Note receivable as consideration for sale of the wholly-owned subsidiary			100,000
Other Current Assets | Accounts Payable Note Receivable
Related Party Transaction [Line Items]
Note receivable as consideration for sale of the wholly-owned subsidiary			100,000
Other Assets | Consideration Note Receivable
Related Party Transaction [Line Items]
Note receivable as consideration for sale of the wholly-owned subsidiary			500,000
Other Assets | Accounts Payable Note Receivable
Related Party Transaction [Line Items]
Note receivable as consideration for sale of the wholly-owned subsidiary			$ 300,000

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Related Parties - Schedule of Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020
Purchaser of Subsidiary
Related Party Transaction [Line Items]
Revenue Earned (Expense Incurred)	$ 0	$ 0	$ 0	$ 0
Accounts Receivable (Payable)	621		621		$ 621
Disposed Entity
Related Party Transaction [Line Items]
Revenue Earned (Expense Incurred)	0	0	0	0
Accounts Receivable (Payable)	396		396		396
Land Development Project
Related Party Transaction [Line Items]
Revenue Earned (Expense Incurred)	7	0	8	0
Accounts Receivable (Payable)	782		782		774
Subcontracting Services
Related Party Transaction [Line Items]
Revenue Earned (Expense Incurred)	(2,689)	(2,983)	(5,292)	(5,008)
Accounts Receivable (Payable)	(521)		(521)		(654)
Construction Services
Related Party Transaction [Line Items]
Revenue Earned (Expense Incurred)	17	0	136	1,534
Accounts Receivable (Payable)	208		208		123
Island Pond
Related Party Transaction [Line Items]
Revenue Earned (Expense Incurred)	(80)	(80)	(240)	(240)
Accounts Receivable (Payable)	0		0		0
Vehicles - Purchases
Related Party Transaction [Line Items]
Revenue Earned (Expense Incurred)	(128)	(525)	(536)	(639)
Accounts Receivable (Payable)	0		0		0
Vehicles - Rent Expense
Related Party Transaction [Line Items]
Revenue Earned (Expense Incurred)	(31)	(161)	(158)	(562)
Accounts Receivable (Payable)	0		0		0
Consulting Services
Related Party Transaction [Line Items]
Revenue Earned (Expense Incurred)	0	(76)	(32)	(219)
Accounts Receivable (Payable)	0		0		0
SunTx
Related Party Transaction [Line Items]
Revenue Earned (Expense Incurred)	(412)	$ (355)	(1,550)	$ (1,026)
Accounts Receivable (Payable)	$ 0		$ 0		$ 0

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Equity-Based Compensation (Details) - Class A Common Stock - Restricted Stock - USD ($) $ in Millions	3 Months Ended		9 Months Ended	12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2021	Sep. 30, 2019
Non-Employee Directors Under the Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)				292,534
Aggregate grant date fair value				$ 3.8
Compensation expense	$ 0.3		$ 1.0
Unrecognized compensation expense	$ 0.7		0.7
Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	510,733	510,733
Aggregate grant date fair value		$ 13.6
Compensation expense	$ 1.0		1.2
Unrecognized compensation expense	$ 12.4		$ 12.4

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Equity-Based Compensation (Vesting Schedule) (Details)	Jun. 30, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested or will vest (in shares)	803,267
2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested or will vest (in shares)	207,706
2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested or will vest (in shares)	110,194
2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested or will vest (in shares)	12,683
2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested or will vest (in shares)	242,684
2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested or will vest (in shares)	230,000

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Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020
Leases [Abstract]
Operating lease right-of-use assets	$ 6,661		$ 6,661		$ 7,383
Current portion of operating lease liabilities	1,501		1,501		2,046
Operating lease liabilities, net of current portion	$ 5,320		$ 5,320		$ 5,554
Weighted-average remaining lease terms	9 years 2 months 12 days		9 years 2 months 12 days
Weighted-average discount rate	3.89%		3.89%
Royalty expense	$ 300	$ 300	$ 700	$ 800

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Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating lease cost	$ 593	$ 875	$ 1,946	$ 2,652
Short-term lease cost	3,732	3,229	8,857	10,592
Total lease expense	$ 4,325	$ 4,104	$ 10,803	$ 13,244

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Leases - Future Lease Liabilities (Details) $ in Thousands	Jun. 30, 2021 USD ($)
Leases [Abstract]
Remainder of 2021	$ 511
2022	1,489
2023	1,092
2024	834
2025	663
2026 and thereafter	3,698
Total future minimum lease payments	8,287
Less: imputed interest	1,466
Total	$ 6,821

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Investment in Derivative Instruments - Narrative (Details) $ in Millions	Jun. 30, 2021 USD ($)
Interest rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	$ 40.3

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Investment in Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Realized Gain (Loss)	$ 139	$ (486)	$ (254)	$ (556)
Unrealized Gain (Loss)	764	274	3,141	(1,989)
Total Gain (Loss)	903	(212)	2,887	(2,545)
Derivative asset, fair value	930		930
Derivative liabilities, fair value					$ (2,211)
Prepaid expenses and other current assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, fair value	1,203		1,203		0
Other assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, fair value	684		684		0
Commodity swaps | Accrued Expense and Other Current Liabilities
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative liabilities, fair value	0		0		(183)
Commodity swaps | Other Noncurrent Liabilities
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative liabilities, fair value	0		0		(320)
Interest rate swaps | Other Noncurrent Liabilities
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative liabilities, fair value	(957)		(957)		$ (1,708)
Cost of revenues
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Realized Gain (Loss)	302	(269)	257	(290)
Unrealized Gain (Loss)	632	394	2,390	(403)
Total Gain (Loss)	934	125	2,647	(693)
Interest expense, net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Realized Gain (Loss)	(163)	(217)	(511)	(266)
Unrealized Gain (Loss)	132	(120)	751	(1,586)
Total Gain (Loss)	$ (31)	$ (337)	$ 240	$ (1,852)

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Fair Value Measurements (Details) - Fair Value, Recurring - Level 2 - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Commodity swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 1,887	$ 0
Liabilities	0	503
Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	$ 957	$ 1,708

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Purchase Commitments (Details) - Public Utilities, Inventory, Fuel $ in Thousands	Jun. 30, 2021 USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]
Remainder of 2021	$ 192
2022	50
Total	$ 242

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Legal Proceedings (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	May 07, 2021	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Litigation settlement, amount awarded to other party	$ 3.2
Litigation settlement, expense		$ 1.7

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Subsequent Events (Details) - Subsequent Event - Alabama and North Carolina Acquisitions $ in Millions	Aug. 02, 2021 USD ($)
Subsequent Events [Abstract]
Consideration transferred	$ 112.9
Subsequent Event [Line Items]
Consideration transferred	$ 112.9

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Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-02 [Member]