(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
290 Healthwest Drive, Suite 2 Dothan, Alabama 36303 (Address of principal executive offices) (ZIP Code) | ||||||||||||||
(334) 673-9763 (Registrant’s telephone number, including area code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
(Nasdaq Global Select Market) |
Exhibit No. | Description | |||||||||||||
99.1** | ||||||||||||||
104* | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
CONSTRUCTION PARTNERS, INC. | ||||||||
Date: May 5, 2023 | By: | /s/ Gregory A. Hoffman | ||||||
Gregory A. Hoffman | ||||||||
Senior Vice President and Chief Financial Officer |
NEWS RELEASE |
For the Three Months Ended March 31, | For the Six Months Ended March 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenues | $ | 324,850 | $ | 243,385 | $ | 666,629 | $ | 528,349 | ||||||||||||||||||
Cost of revenues | 298,570 | 230,888 | 609,853 | 482,888 | ||||||||||||||||||||||
Gross profit | 26,280 | 12,497 | 56,776 | 45,461 | ||||||||||||||||||||||
General and administrative expenses | (31,989) | (25,000) | (61,714) | (49,946) | ||||||||||||||||||||||
Gain on sale of property, plant and equipment | 3,158 | 1,014 | 3,326 | 1,455 | ||||||||||||||||||||||
Gain on facility exchange | — | — | 5,389 | — | ||||||||||||||||||||||
Operating income (loss) | (2,551) | (11,489) | 3,777 | (3,030) | ||||||||||||||||||||||
Interest expense, net | (4,802) | (859) | (8,762) | (2,123) | ||||||||||||||||||||||
Other income | 398 | 43 | 432 | 159 | ||||||||||||||||||||||
Loss before provision for income taxes | (6,955) | (12,305) | (4,553) | (4,994) | ||||||||||||||||||||||
Provision for income taxes | (1,474) | (2,887) | (964) | (1,087) | ||||||||||||||||||||||
Net loss | (5,481) | (9,418) | (3,589) | (3,907) | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Unrealized gain (loss) on interest rate swap contract, net | (3,460) | 5,580 | (4,752) | 7,025 | ||||||||||||||||||||||
Unrealized gain (loss) on restricted investments, net | 81 | (122) | 117 | (122) | ||||||||||||||||||||||
Other comprehensive income (loss) | (3,379) | 5,458 | (4,635) | 6,903 | ||||||||||||||||||||||
Comprehensive income (loss) | $ | (8,860) | $ | (3,960) | $ | (8,224) | $ | 2,996 | ||||||||||||||||||
Net loss per share attributable to common stockholders: | ||||||||||||||||||||||||||
Basic | $ | (0.11) | $ | (0.18) | $ | (0.07) | $ | (0.08) | ||||||||||||||||||
Diluted | $ | (0.11) | $ | (0.18) | $ | (0.07) | $ | (0.08) | ||||||||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||||||||
Basic | 51,827,365 | 51,793,443 | 51,826,143 | 51,744,052 | ||||||||||||||||||||||
Diluted | 51,827,365 | 51,793,443 | 51,826,143 | 51,744,052 | ||||||||||||||||||||||
March 31, | September 30, | ||||||||||
2023 | 2022 | ||||||||||
ASSETS | (unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 30,512 | $ | 35,531 | |||||||
Restricted cash | 119 | 28 | |||||||||
Contracts receivable including retainage, net | 243,261 | 265,207 | |||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 29,126 | 29,271 | |||||||||
Inventories | 86,197 | 74,195 | |||||||||
Prepaid expenses and other current assets | 16,900 | 12,957 | |||||||||
Total current assets | 406,115 | 417,189 | |||||||||
Property, plant and equipment, net | 502,985 | 481,412 | |||||||||
Operating lease right-of-use assets | 16,792 | 13,985 | |||||||||
Goodwill | 163,385 | 129,465 | |||||||||
Intangible assets, net | 15,399 | 15,976 | |||||||||
Investment in joint venture | 87 | 87 | |||||||||
Restricted investments | 11,303 | 6,866 | |||||||||
Other assets | 24,755 | 30,541 | |||||||||
Total assets | $ | 1,140,821 | $ | 1,095,521 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 121,422 | $ | 130,468 | |||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 62,004 | 52,477 | |||||||||
Current portion of operating lease liabilities | 2,243 | 2,209 | |||||||||
Current maturities of long-term debt | 13,500 | 12,500 | |||||||||
Accrued expenses and other current liabilities | 26,158 | 28,484 | |||||||||
Total current liabilities | 225,327 | 226,138 | |||||||||
Long-term liabilities: | |||||||||||
Long-term debt, net of current maturities and deferred debt issuance costs | 408,967 | 363,066 | |||||||||
Operating lease liabilities, net of current portion | 14,982 | 12,059 | |||||||||
Deferred income taxes, net | 24,938 | 26,713 | |||||||||
Other long-term liabilities | 13,919 | 11,666 | |||||||||
Total long-term liabilities | 462,806 | 413,504 | |||||||||
Total liabilities | 688,133 | 639,642 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, par value $0.001; 10,000,000 shares authorized at March 31, 2023 and September 30, 2022 and no shares issued and outstanding | — | — | |||||||||
Class A common stock, par value $0.001; 400,000,000 shares authorized, 41,376,528 shares issued and 41,366,691 shares outstanding at March 31, 2023 and 41,195,730 shares issued and 41,193,024 shares outstanding at September 30, 2022 | 41 | 41 | |||||||||
Class B common stock, par value $0.001; 100,000,000 shares authorized, 14,275,867 shares issued and 11,352,915 shares outstanding at March 31, 2023 and September 30, 2022 | 15 | 15 | |||||||||
Additional paid-in capital | 261,743 | 256,571 | |||||||||
Treasury stock, at cost, 9,837 shares of Class A common stock at March 31, 2023 and 2,706 shares at September 30, 2022, par value $0.001 | (178) | (39) | |||||||||
Treasury stock, at cost, 2,922,952 shares of Class B common stock at March 31, 2023 and September 30, 2022, par value $0.001 | (15,603) | (15,603) | |||||||||
Accumulated other comprehensive income, net | 12,985 | 17,620 | |||||||||
Retained earnings | 193,685 | 197,274 | |||||||||
Total stockholders’ equity | 452,688 | 455,879 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,140,821 | $ | 1,095,521 |
For the Six Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (3,589) | $ | (3,907) | |||||||
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities: | |||||||||||
Depreciation, depletion, accretion and amortization of long-lived assets | 38,233 | 33,047 | |||||||||
Amortization of deferred debt issuance costs and debt discount | 151 | 128 | |||||||||
Unrealized loss (gain) on derivative instruments | 2,286 | (2,130) | |||||||||
Provision for bad debt | 70 | 130 | |||||||||
Gain on sale of property, plant and equipment | (3,326) | (1,455) | |||||||||
Gain on facility exchange | (5,389) | — | |||||||||
Realized losses on restricted investments | 4 | — | |||||||||
Equity-based compensation expense | 5,172 | 3,246 | |||||||||
Deferred income tax benefit | (224) | (245) | |||||||||
Other non-cash adjustments | (69) | 39 | |||||||||
Changes in operating assets and liabilities, net of acquisition: | |||||||||||
Contracts receivable including retainage | 34,092 | (3,821) | |||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 743 | (1,261) | |||||||||
Inventories | (10,152) | (13,665) | |||||||||
Prepaid expenses and other current assets | (3,246) | (8,150) | |||||||||
Other assets | (206) | 350 | |||||||||
Accounts payable | (12,764) | (2,426) | |||||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 7,415 | 12,304 | |||||||||
Accrued expenses and other current liabilities | (6,289) | (11,957) | |||||||||
Other long-term liabilities | 2,784 | 3,067 | |||||||||
Net cash provided by operating activities, net of acquisitions | 45,696 | 3,294 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property, plant and equipment | (60,399) | (34,703) | |||||||||
Proceeds from sale of property, plant and equipment | 8,301 | 3,777 | |||||||||
Proceeds from facility exchange | 36,987 | — | |||||||||
Proceeds from restricted investments | 866 | — | |||||||||
Business acquisitions, net of cash acquired | (77,842) | (102,893) | |||||||||
Purchase of restricted investments | (5,148) | (6,358) | |||||||||
Net cash used in investing activities | (97,235) | (140,177) | |||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from revolving credit facility | 38,000 | 116,000 | |||||||||
Proceeds from issuance of long-term debt, net of debt issuance costs and discount | 15,000 | — | |||||||||
Repayments of long-term debt | (6,250) | (5,000) | |||||||||
Purchase of treasury stock | (139) | (39) | |||||||||
Net cash provided by financing activities | 46,611 | 110,961 | |||||||||
Net change in cash and cash equivalents | (4,928) | (25,922) | |||||||||
Cash, cash equivalents and restricted cash: | |||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 35,559 | 57,251 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 30,631 | $ | 31,329 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | 9,047 | $ | 3,375 | |||||||
Cash paid for income taxes | $ | 626 | $ | 1,076 | |||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 4,062 | $ | 5,983 | |||||||
Cash paid for operating lease liabilities | $ | 1,204 | $ | 1,144 | |||||||
Non-cash items: | |||||||||||
Property, plant and equipment included with accounts payable at period end | $ | 3,448 | $ | 1,042 | |||||||
Amounts payable to seller in business combination | $ | — | $ | 600 |
For the Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net loss | $ | (5,481) | $ | (9,418) | |||||||
Interest expense, net | 4,802 | 859 | |||||||||
Provision for income taxes | (1,474) | (2,887) | |||||||||
Depreciation, depletion, accretion and amortization | 19,858 | 17,144 | |||||||||
Equity-based compensation expense | 2,692 | 1,742 | |||||||||
Management fees and expenses (1) | 359 | 384 | |||||||||
Adjusted EBITDA | $ | 20,756 | $ | 7,824 | |||||||
For the Fiscal Year Ending September 30, 2023 | |||||||||||
Low | High | ||||||||||
Net income | $ | 34,000 | $ | 42,000 | |||||||
Interest expense, net | 19,100 | 19,500 | |||||||||
Provision for income taxes | 11,400 | 14,100 | |||||||||
Depreciation, depletion, accretion and amortization | 77,000 | 77,300 | |||||||||
Equity-based compensation expense | 9,800 | 10,400 | |||||||||
Management fees and expenses (1) | 1,700 | 1,700 | |||||||||
Adjusted EBITDA | $ | 153,000 | $ | 165,000 | |||||||
Cover Page |
May 05, 2023 |
---|---|
Cover [Abstract] | |
Entity Tax Identification Number | 26-0758017 |
Entity File Number | 001-38479 |
Entity Incorporation, State or Country Code | DE |
Entity Registrant Name | CONSTRUCTION PARTNERS, INC. |
Document Period End Date | May 05, 2023 |
Document Type | 8-K |
Amendment Flag | false |
Entity Central Index Key | 0001718227 |
Entity Emerging Growth Company | false |
Security Exchange Name | NASDAQ |
Trading Symbol | ROAD |
Title of 12(b) Security | Class A common stock, $0.001 par value |
Pre-commencement Issuer Tender Offer | false |
Pre-commencement Tender Offer | false |
Soliciting Material | false |
Local Phone Number | (334) 673-9763(Registrant’s telephone number, including area code) |
City Area Code | (334) 673-9763(Registrant’s telephone number, including area code) |
Written Communications | false |
Entity Address, Postal Zip Code | 36303 |
Entity Address, State or Province | AL |
Entity Address, City or Town | Dothan |
Entity Address, Address Line One | 290 Healthwest Drive, Suite 2 |
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