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Condensed Financial Statements of Parent Company
 12 Months Ended
Sep. 30, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Statements of Parent Company
CONSTRUCTION PARTNERS, INC.
PARENT COMPANY ONLY
CONDENSED BALANCE SHEETS
(in thousands, except share and per share data)
September 30,
20212020
ASSETS
Cash and cash equivalents$65,225 $78,041 
Prepaid expenses and other current assets1,063 928 
Total current assets66,288 78,969 
Property, plant and equipment, net5,160 2,994 
Investment in subsidiaries409,245 383,740 
Deferred income taxes, net892 441 
Other assets2,014 6 
Total assets$483,599 $466,150 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Due to subsidiaries$46,542 $75,044 
Accrued expenses and other current liabilities2,970 1,969 
Total current liabilities49,512 77,013 
Long-term liabilities:
Due to subsidiaries24,440 2,234 
Other long-term liabilities748 1,708 
Total long-term liabilities25,188 3,942 
Total liabilities74,700 80,955 
Stockholders’ Equity
Preferred stock, par value $0.001; 10,000,000 shares authorized at September 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, 36,600,639 shares issued and outstanding at September 30, 2021, and 33,875,884 shares issued and outstanding at September 30, 2020
37 34 
Class B common stock, par value 0.001; 100,000,000 shares authorized, 18,614,791 shares issued and 15,691,839 shares outstanding at September 30, 2021, and 20,828,813 shares issued and 17,905,861 shares outstanding at September 30, 2020
19 21 
Additional paid-in capital248,571 245,022 
Treasury stock, at cost, 2,922,952 shares of Class B common stock, par value $0.001
(15,603)(15,603)
Accumulated other comprehensive loss(23)— 
Retained earnings175,898 155,721 
Total stockholders’ equity408,899 385,195 
Total liabilities and stockholders’ equity$483,599 $466,150 
See note to condensed financial statements of parent company.
CONSTRUCTION PARTNERS, INC.
PARENT COMPANY ONLY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except share and per share amounts)
For the Fiscal Year Ended 
September 30,
202120202019
Equity in net income of subsidiaries$25,505 $43,712 $45,679 
Equity-based compensation expense(3,549)(1,570)(957)
General and administrative expenses(2,850)(2,597)(2,666)
Interest expense, net834 (1,218)(153)
Gain on sale of equipment, net— — 1 
Other income 3 — 5 
Income before provision for income taxes19,943 38,327 41,909 
Income tax benefit234 1,970 1,212 
Net income$20,177 $40,297 $43,121 
Other comprehensive (loss), net of tax
Net unrealized (loss) on interest rate swap contract(23)— — 
Other comprehensive (loss)(23)— — 
Comprehensive income$20,154 $40,297 $43,121 
Net income per share attributable to common stockholders:
Basic$0.39 $0.78 $0.84 
Diluted$0.39 $0.78 0.84 
Weighted average number of common shares outstanding:
Basic51,636,955 51,489,211 51,421,159
Diluted51,773,213 51,636,934 51,427,220
See note to condensed financial statements of parent company.
CONSTRUCTION PARTNERS, INC.
PARENT COMPANY ONLY
CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
For the Fiscal Year Ended
September 30,
202120202019
Cash flows from operating activities:
Net income$20,177 $40,297 $43,121 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation, depletion and amortization of long-lived assets475 463 179 
Gain on sale of equipment— — (1)
Loss (gain) on derivative instruments(894)1,397 565 
Equity-based compensation expense3,549 1,570 957 
Equity in net income of subsidiaries(25,505)(43,712)(45,679)
    Deferred income tax (benefit) expense(451)(425)99 
    Other non-cash adjustments9 
Changes in operating assets and liabilities:
Prepaid expenses and other current assets(135)(183)771 
Other assets(2,008)(6)257 
Accrued expenses and other current liabilities1,001 (965)1,662 
Other liabilities(97)— (254)
Net cash (used in) provided by operating activities(3,879)(1,564)1,677 
Cash flows from investing activities:
Purchases of property, plant and equipment (2,641)(1,189)(755)
Proceeds from sale of equipment— — 1 
Investment in subsidiary— (17,303)(19,703)
Net cash (used in) investing activities(2,641)(18,492)(20,457)
Cash flows from financing activities:
Change in amounts due to (from) subsidiaries, net(6,296)34,150 16,959 
Payment of treasury stock purchase obligation— — (569)
Proceeds from sale of stock— — 3 
Net cash (used in) provided by financing activities(6,296)34,150 16,393 
Net change in cash and cash equivalents(12,816)14,094 (2,387)
Cash and cash equivalents:
Beginning of period78,041 63,947 66,334 
End of period$65,225 $78,041 $63,947 
See note to condensed financial statements of parent company.
Note to Condensed Financial Statements of Parent Company
On December 31, 2019, the Company completed an internal reorganization by merging Construction Partners Holdings, Inc. with and into the Company, with the Company surviving the merger. Therefore, the condensed parent company-only financial statements above reflect the retroactive combination of these entities as if it had occurred on October 1, 2018 for comparative purposes. The presentation change for September 30, 2019 had no effect on previously reported net income of the Company.
These condensed parent company-only financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of Construction Partners, Inc. (as defined in Rule 4-08(e)(3) of Regulation S-X) exceed 25% of the consolidated net assets of the Company. The ability of Construction Partners, Inc.’s operating subsidiaries to pay dividends is restricted by the terms of the credit facilities described in Note 11 - Debt.
These condensed parent company-only financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the exception that the parent company accounts for its subsidiaries
using the equity method. These condensed parent company-only financial statements should be read in conjunction with the consolidated financial statements and related notes thereto.