Construction Partners, Inc. Announces Fiscal 2024 Fourth Quarter and Full Year Results
Construction Partners (NASDAQ: ROAD) reported strong financial results for fiscal 2024. Revenue increased 17% to $1.82 billion, while net income grew 41% to $68.9 million. The company achieved an Adjusted EBITDA of $220.6 million, up 28% from 2023, with a margin of 12.1%. Project backlog reached a record $1.96 billion. The company completed eight acquisitions during the year, including Lone Star Paving in Texas. For fiscal 2025, CPI projects revenue between $2.48-2.58 billion and net income of $97-113 million.
Construction Partners (NASDAQ: ROAD) ha riportato risultati finanziari solidi per l'anno fiscale 2024. Il fatturato è aumentato del 17% raggiungendo 1,82 miliardi di dollari, mentre l'utile netto è cresciuto del 41% arrivando a 68,9 milioni di dollari. L'azienda ha ottenuto un EBITDA rettificato di 220,6 milioni di dollari, in aumento del 28% rispetto al 2023, con un margine del 12,1%. Il portafoglio di progetti ha raggiunto un record di 1,96 miliardi di dollari. Durante l'anno, l'azienda ha completato otto acquisizioni, inclusa Lone Star Paving in Texas. Per l'anno fiscale 2025, CPI prevede un fatturato tra 2,48 e 2,58 miliardi di dollari e un utile netto tra 97 e 113 milioni di dollari.
Construction Partners (NASDAQ: ROAD) informó resultados financieros sólidos para el año fiscal 2024. Los ingresos aumentaron un 17% alcanzando 1.82 mil millones de dólares, mientras que la utilidad neta creció un 41% hasta 68.9 millones de dólares. La compañía logró un EBITDA ajustado de 220.6 millones de dólares, un incremento del 28% en comparación con 2023, con un margen del 12.1%. El backlog de proyectos alcanzó un récord de 1.96 mil millones de dólares. Durante el año, la empresa completó ocho adquisiciones, incluyendo Lone Star Paving en Texas. Para el año fiscal 2025, CPI proyecta ingresos entre 2.48 y 2.58 mil millones de dólares y una utilidad neta de 97 a 113 millones de dólares.
Construction Partners (NASDAQ: ROAD)는 2024 회계연도에 대한 강력한 재무 결과를 보고했습니다. 매출은 17% 증가하여 18억 2천만 달러에 도달했으며, 순이익은 41% 증가하여 6천 890만 달러가 되었습니다. 회사는 2023년 대비 28% 증가한 2억 2천 6백만 달러의 조정 EBITDA를 달성했으며, 마진은 12.1%입니다. 프로젝트 적체는 19억 6천만 달러로 기록을 세웠습니다. 이 회사는 올해 동안 텍사스의 Lone Star Paving을 포함하여 8건의 인수를 완료했습니다. 2025 회계연도를 위해 CPI는 매출을 24억 8천만에서 25억 8천만 달러 사이로, 순이익을 9천 7백만에서 1억 1천 3백만 달러로 예상하고 있습니다.
Construction Partners (NASDAQ: ROAD) a annoncé de solides résultats financiers pour l'exercice 2024. Les revenus ont augmenté de 17 % atteignant 1,82 milliard de dollars, tandis que le bénéfice net a connu une hausse de 41 % pour atteindre 68,9 millions de dollars. L'entreprise a réalisé un EBITDA ajusté de 220,6 millions de dollars, en hausse de 28 % par rapport à 2023, avec une marge de 12,1 %. Le carnet de commandes a atteint un niveau record de 1,96 milliard de dollars. Au cours de l'année, l'entreprise a finalisé huit acquisitions, dont Lone Star Paving au Texas. Pour l'exercice 2025, CPI prévoit des revenus compris entre 2,48 et 2,58 milliards de dollars et un bénéfice net de 97 à 113 millions de dollars.
Construction Partners (NASDAQ: ROAD) berichtete über starke Finanzergebnisse für das Geschäftsjahr 2024. Der Umsatz stieg um 17% auf 1,82 Milliarden US-Dollar, während der Nettoertrag um 41% auf 68,9 Millionen US-Dollar wuchs. Das Unternehmen erzielte ein bereinigtes EBITDA von 220,6 Millionen US-Dollar, was einem Anstieg von 28% im Vergleich zu 2023 entspricht, mit einer Marge von 12,1%. Der Projektstau erreichte mit 1,96 Milliarden US-Dollar einen Rekord. Im Laufe des Jahres schloss das Unternehmen acht Übernahmen ab, darunter Lone Star Paving in Texas. Für das Geschäftsjahr 2025 erwartet CPI einen Umsatz zwischen 2,48 und 2,58 Milliarden US-Dollar sowie einen Nettoertrag von 97 bis 113 Millionen US-Dollar.
- Revenue growth of 17% to $1.82 billion in FY2024
- Net income increase of 41% to $68.9 million
- Adjusted EBITDA growth of 28% to $220.6 million
- Record backlog of $1.96 billion, up from $1.60 billion in 2023
- Strategic expansion through eight acquisitions
- Strong FY2025 guidance with projected revenue of $2.48-2.58 billion
- Q4 net income decreased 5.2% to $29.3 million
- General and administrative expenses increased to 8.3% of revenue from 8.1% in FY2023
- Q4 Adjusted EBITDA margin declined to 14.3% from 14.5% year-over-year
Insights
The fiscal 2024 results demonstrate remarkable financial performance with revenue growing 17% to
The strategic acquisition of Lone Star Paving in Texas positions CPI for accelerated growth, reflected in the robust FY25 guidance projecting revenue between
The Sunbelt region's infrastructure development presents a compelling growth narrative for CPI. The company's strategic expansion through eight acquisitions in FY24, particularly the Lone Star Paving deal, targets high-growth metropolitan areas. This positions CPI to capitalize on the region's population growth and infrastructure needs.
The company's vertical integration model and focus on local markets provide competitive advantages in securing and executing projects efficiently. The substantial backlog increase of
Revenue Up
Net Income Up
Adjusted EBITDA Up
Record Backlog of
Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, "We are pleased to report significant growth in fiscal year 2024, led by the strong operational performance of our family of companies throughout the Sunbelt. We are proud of the contributions from our more than 5,000 employees that helped deliver a record fiscal year and generated revenue growth of
Fiscal 2024 revenues were
Gross profit was
General and administrative expenses were
Net income was
Adjusted EBITDA(1) for fiscal 2024 was
Project backlog was
Smith added, "Earlier this month, we acquired Lone Star Paving, our new platform company in
"In fiscal 2025, we continue to project growth and enhanced profitability, supported by eleven months of
Fiscal 2025 Outlook
As previously announced, CPI's outlook for fiscal 2025 with regard to revenue, net income, Adjusted EBITDA and Adjusted EBITDA Margin is as follows:
- Revenue in the range of
$2.48 billion $2.58 billion - Net income in the range of
$97 million $113 million - Adjusted EBITDA(1) in the range of
$347 million $377 million - Adjusted EBITDA Margin(1) in the range of
14.0% to14.6%
Ned N. Fleming, III, the Company's Executive Chairman, stated, "We are excited to enter
Conference Call
The Company will conduct a conference call today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss financial and operating results for the fiscal quarter and year ended September 30, 2024. To access the call live by phone, dial (412) 902-0003 and ask for the Construction Partners call at least 10 minutes prior to the start time. A telephonic replay will be available through November 28, 2024 by calling (201) 612-7415 and using passcode ID: 13748361#. A webcast of the call will also be available live and for later replay on the Company's Investor Relations website at www.constructionpartners.net.
About Construction Partners, Inc.
Construction Partners, Inc. is a vertically integrated civil infrastructure company operating in local markets throughout the Sunbelt in
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "project," "outlook," "believe" and "plan." The forward-looking statements contained in this press release include, without limitation, statements related to financial projections, future events, business strategy, future performance, future operations, backlog, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management. These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Important factors could cause actual results to differ materially from those expressed in the forward-looking statements, including, among others: our ability to successfully manage and integrate acquisitions; failure to realize the expected economic benefits of acquisitions, including future levels of revenues being lower than expected and costs being higher than expected; failure or inability to implement growth strategies in a timely manner; 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; government requirements and initiatives, including those related to funding for public or infrastructure construction, land usage and environmental, health and safety matters; unfavorable economic conditions and restrictive financing markets; 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, results of litigation and other claims and insurance coverage issues; risks related to our information technology systems and infrastructure; our ability to maintain effective internal control over financial reporting; and the risks, uncertainties and factors set forth under "Risk Factors" in the Company's most recent Annual Report on Form 10-K and its subsequently filed Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable law.
Contacts:
Rick Black / Ken Dennard
Dennard Lascar Investor Relations
ROAD@DennardLascar.com
(713) 529-6600
(1) Adjusted EBITDA and Adjusted EBITDA Margin are financial measures not presented in accordance with generally accepted accounting principles ("GAAP"). Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this press release. |
- Financial Statements Follow -
Construction Partners, Inc. | ||||||||
Consolidated Statements of Comprehensive Income | ||||||||
(in thousands, except share and per share data) | ||||||||
For the Three Months Ended September 30, | For the Fiscal Year Ended September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenues | $ 538,163 | $ 475,026 | $ 1,823,889 | $ 1,563,548 | ||||
Cost of revenues | 454,082 | 399,489 | 1,565,635 | 1,367,163 | ||||
Gross profit | 84,081 | 75,537 | 258,254 | 196,385 | ||||
General and administrative expenses | (39,836) | (33,002) | (151,497) | (126,947) | ||||
Gain on sale of property, plant and equipment | 1,523 | 2,223 | 4,483 | 7,048 | ||||
Gain on facility exchange | — | — | — | 5,389 | ||||
Operating income | 45,768 | 44,758 | 111,240 | 81,875 | ||||
Interest expense, net | (6,084) | (3,545) | (19,071) | (17,346) | ||||
Other (expense) income | (117) | (50) | (70) | 875 | ||||
Income before provision for income taxes and | 39,567 | 41,163 | 92,099 | 65,404 | ||||
Provision for income taxes | 10,256 | 10,250 | 23,161 | 16,403 | ||||
Loss from investment in joint venture | (3) | — | (3) | — | ||||
Net income | $ 29,308 | $ 30,913 | $ 68,935 | $ 49,001 | ||||
Other comprehensive (loss) income, net of tax | ||||||||
Unrealized (loss) gain on interest rate swap contract, net | (6,722) | 1,922 | (11,889) | 1,297 | ||||
Unrealized gain (loss) on restricted investments, net | 418 | (211) | 697 | (223) | ||||
Other comprehensive (loss) income, net | (6,304) | 1,711 | (11,192) | 1,074 | ||||
Comprehensive income | $ 23,004 | $ 32,624 | $ 57,743 | $ 50,075 | ||||
Net income per share attributable to common | ||||||||
Basic | $ 0.57 | $ 0.60 | $ 1.33 | $ 0.95 | ||||
Diluted | $ 0.56 | $ 0.59 | $ 1.31 | $ 0.94 | ||||
Weighted average number of common shares | ||||||||
Basic | 51,792,183 | 51,828,257 | 51,883,760 | 51,827,001 | ||||
Diluted | 52,590,344 | 52,406,501 | 52,574,503 | 52,260,206 | ||||
Construction Partners, Inc. | |||
Consolidated Balance Sheets | |||
(in thousands, except share and per share data) | |||
September 30, | |||
2024 | 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 74,686 | $ 48,243 | |
Restricted cash | 1,998 | 837 | |
Contracts receivable including retainage, net | 350,811 | 303,704 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 25,966 | 27,296 | |
Inventories | 106,704 | 84,038 | |
Prepaid expenses and other current assets | 24,841 | 9,306 | |
Total current assets | 585,006 | 473,424 | |
Property, plant and equipment, net | 629,924 | 505,095 | |
Operating lease right-of-use assets | 38,932 | 14,485 | |
Goodwill | 231,656 | 159,270 | |
Intangible assets, net | 20,549 | 19,520 | |
Investment in joint venture | 84 | 87 | |
Restricted investments | 18,020 | 15,079 | |
Other assets | 17,964 | 32,705 | |
Total assets | $ 1,542,135 | $ 1,219,665 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 182,572 | $ 151,406 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | 120,065 | 78,905 | |
Current portion of operating lease liabilities | 9,065 | 2,338 | |
Current maturities of long-term debt | 26,563 | 15,000 | |
Accrued expenses and other current liabilities | 42,189 | 31,534 | |
Total current liabilities | 380,454 | 279,183 | |
Long-term liabilities: | |||
Long-term debt, net of current maturities and deferred debt issuance costs | 486,961 | 360,740 | |
Operating lease liabilities, net of current portion | 30,661 | 12,649 | |
Deferred income taxes, net | 53,852 | 37,121 | |
Other long-term liabilities | 16,467 | 13,398 | |
Total long-term liabilities | 587,941 | 423,908 | |
Total liabilities | 968,395 | 703,091 | |
Commitments and contingencies | |||
Stockholders' Equity: | |||
Preferred stock, par value | — | — | |
Class A common stock, par value | 44 | 44 | |
Class B common stock, par value | 12 | 12 | |
Additional paid-in capital | 278,065 | 267,330 | |
Treasury stock, Class A common stock, par value | (11,490) | (178) | |
Treasury stock, Class B common stock, par value | (15,603) | (15,603) | |
Accumulated other comprehensive income, net | 7,502 | 18,694 | |
Retained earnings | 315,210 | 246,275 | |
Total stockholders' equity | 573,740 | 516,574 | |
Total liabilities and stockholders' equity | $ 1,542,135 | $ 1,219,665 | |
Construction Partners, Inc. | |||
Consolidated Statements of Cash Flows | |||
(in thousands) | |||
For the Fiscal Year Ended | |||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 68,935 | $ 49,001 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion, accretion and amortization | 92,920 | 79,100 | |
Amortization of deferred debt issuance costs | 362 | 299 | |
Unrealized loss (gain) on derivative instruments | 184 | 342 | |
Provision (recovery) for bad debt | 491 | 456 | |
Gain on sale of property, plant and equipment | (4,483) | (7,048) | |
Gain on facility exchange | — | (5,389) | |
Realized losses on restricted investments | 53 | 30 | |
Share-based compensation expense | 14,412 | 10,759 | |
Loss (earnings) from investment in joint venture | 3 | — | |
Deferred income taxes | 22,681 | 11,165 | |
Other non-cash adjustments | (300) | (263) | |
Changes in operating assets and liabilities: | |||
Contracts receivable including retainage | (6,627) | (25,961) | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 5,531 | 2,573 | |
Inventories | (15,480) | (7,320) | |
Prepaid expenses and other current assets | (13,015) | 3,650 | |
Other assets | (522) | (129) | |
Accounts payable | 13,433 | 17,220 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | 24,869 | 24,099 | |
Accrued expenses and other current liabilities | 4,828 | 2,340 | |
Other long-term liabilities | 804 | 2,233 | |
Net cash provided by operating activities, net of acquisitions | 209,079 | 157,157 | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (87,930) | (97,810) | |
Proceeds from sale of property, plant and equipment | 14,059 | 17,698 | |
Proceeds from facility exchange | — | 36,987 | |
Business acquisitions, net of cash acquired | (231,777) | (91,787) | |
Proceeds from the sale of restricted investments | 3,553 | 2,900 | |
Purchases of restricted investments | (5,490) | (11,360) | |
Net cash used in investing activities | (307,585) | (143,372) | |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt, net of debt issuance costs | 210,235 | 103,000 | |
Principal payments of long-term debt | (72,813) | (103,125) | |
Purchase of treasury stock | (11,312) | (139) | |
Net cash provided by (used in) financing activities | 126,110 | (264) | |
Net change in cash, cash equivalents and restricted cash | 27,604 | 13,521 | |
Cash, cash equivalents and restricted cash: | |||
Beginning of year | 49,080 | 35,559 | |
End of year | $ 76,684 | $ 49,080 | |
Supplemental cash flow information: | |||
Cash paid for interest | $ 21,680 | $ 19,157 | |
Cash paid for income taxes | $ 5,447 | $ 1,009 | |
Cash paid for operating lease liabilities | $ 6,874 | $ 3,029 | |
Non-cash items: | |||
Operating lease right-of-use assets obtained in exchange for operating lease | $ 29,097 | $ 3,109 | |
Property, plant and equipment financed with accounts payable | $ 7,227 | $ 2,459 | |
Amounts (receivable) payable to sellers in business combinations | $ (153) | $ — | |
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (iii) depreciation, depletion, accretion and amortization, (iv) share-based compensation expense, (v) loss on the extinguishment of debt, and (vi) expenses associated with non-routine acquisitions. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues for each period. 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 our operating performance. We present Adjusted EBITDA and Adjusted EBITDA Margin 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 Adjusted EBITDA and Adjusted EBITDA Margin 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 tables present 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 applicable periods.
Construction Partners, Inc. | |||
Net Income to Adjusted EBITDA Reconciliation | |||
Fiscal Years Ended September 30, 2024 and 2023 | |||
(in thousands, except percentages) | |||
For the Fiscal Year Ended September 30, | |||
2024 | 2023 (2) | ||
Net income | $ 68,935 | $ 49,001 | |
Interest expense, net | 19,071 | 17,346 | |
Provision for income taxes | 23,161 | 16,403 | |
Depreciation, depletion, accretion and amortization | 92,920 | 79,100 | |
Share-based compensation expense | 15,031 | 10,759 | |
Acquisition-related expenses (1) | 1,455 | — | |
Adjusted EBITDA | $ 220,573 | $ 172,609 | |
Revenues | $ 1,823,889 | $ 1,563,548 | |
Adjusted EBITDA Margin | 12.1 % | 11.0 % | |
(1) | Reflects expenses associated with the acquisition of Lone Star Paving, which management views as a non-routine acquisition. |
(2) | In periods commencing prior to September 30, 2023, the Company historically included within the definition of Adjusted EBITDA an adjustment for management fees and expenses related to the Company's management services agreement with an affiliate of SunTx Capital Partners, a member of the Company's control group. Effective October 1, 2023, the term of the management services agreement was extended to October 1, 2028. As a result of the term extension, the Company no longer views the management fees and expenses paid under the management services agreement as a non-recurring expense. Accordingly, periods commencing subsequent to September 30, 2023 do not include an adjustment for management fees and expenses, and the Company has recast comparative Adjusted EBITDA and Adjusted EBITDA Margin for the quarter and fiscal year ended September 30, 2023 to conform to the current definition. |
Construction Partners, Inc. | |||
Net Income to Adjusted EBITDA Reconciliation | |||
Three Months Ended September 30, 2024 and 2023 | |||
(in thousands, except percentages) | |||
For the Three Months Ended September 30, | |||
2024 | 2023 (2) | ||
Net income | $ 29,308 | $ 30,913 | |
Interest expense, net | 6,084 | 3,545 | |
Provision for income taxes | 10,256 | 10,250 | |
Depreciation, depletion, accretion and amortization | 25,452 | 21,331 | |
Share-based compensation expense | 4,445 | 2,850 | |
Acquisition expenses(1) | 1,455 | — | |
Adjusted EBITDA | $ 77,000 | $ 68,889 | |
Revenues | $ 538,163 | $ 475,026 | |
Adjusted EBITDA Margin | 14.3 % | 14.5 % | |
(1) | Reflects expenses associated with the acquisition of Lone Star Paving, which management views as a non-routine acquisition. |
(2) | In periods commencing prior to September 30, 2023, the Company historically included within the definition of Adjusted EBITDA an adjustment for management fees and expenses related to the Company's management services agreement with an affiliate of SunTx Capital Partners, a member of the Company's control group. Effective October 1, 2023, the term of the management services agreement was extended to October 1, 2028. As a result of the term extension, the Company no longer views the management fees and expenses paid under the management services agreement as a non-recurring expense. Accordingly, periods commencing subsequent to September 30, 2023 do not include an adjustment for management fees and expenses, and the Company has recast comparative Adjusted EBITDA and Adjusted EBITDA Margin for the quarter and fiscal year ended September 30, 2023 to conform to the current definition. |
Construction Partners, Inc. | |||
Net Income to Adjusted EBITDA Reconciliation | |||
Fiscal Year 2025 Outlook | |||
(unaudited, in thousands, except percentages) | |||
For the Fiscal Year Ending | |||
Low | High | ||
Net income | $ 97,000 | $ 113,000 | |
Interest expense, net | 64,072 | 62,715 | |
Provision for income taxes | 32,471 | 38,432 | |
Depreciation, depletion, accretion and amortization | 128,957 | 138,353 | |
Share-based compensation expense | 21,500 | 21,500 | |
Acquisition expenses | 3,000 | 3,000 | |
Adjusted EBITDA | $ 347,000 | $ 377,000 | |
Revenues | $ 2,480,000 | $ 2,580,000 | |
Adjusted EBITDA Margin | 14.0 % | 14.6 % | |
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SOURCE Construction Partners, Inc.
FAQ
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