Construction Partners, Inc. (ROAD) Reports In-Line Q1 EPS, Revenues Beat; Maintains FY20 Revenue Outlook

Construction Partners, Inc. (NASDAQ: ROAD) reported Q1 EPS of $0.11, in-line with the analyst estimate of $0.11. Revenue for the quarter came in at $175.3 million versus the consensus estimate of $173.44 million.

Key Metrics: First Quarter of Fiscal 2020 Compared to the First Quarter of Fiscal 2019

• Revenue was $175.3 million, up 13.6%
• Gross profit was $23.8 million, up 12.4%
• Net income was $5.5 million, up 6.0%
• Earnings per share were $0.11, up from $0.10
• Adjusted EBITDA (1) was $17.2 million, up 17.0%
• Adjusted EBITDA margin (1) was 9.8%, up 30 bps

Charles E. Owens, the Company’s President and Chief Executive Officer, stated, “We are pleased to report double-digit year-over-year growth in revenue, gross profit and Adjusted EBITDA for the first quarter of fiscal 2020. This growth was driven both by improved performance in our existing markets and by recent strategic acquisitions in Florida and Alabama. We are maintaining our full-year outlook for fiscal 2020 based on our historical experience of generating approximately forty percent of our revenue in the first half of the fiscal year and approximately sixty percent during the second half.”

Project backlog at December 31, 2019 was $539.1 million, compared to $531.6 million at September 30, 2019 and $575.2 million at December 31, 2018. Owens continued, “We maintain a construction backlog composed primarily of recurring, maintenance-related projects of the type that we typically prefer, and we continue to see opportunities to bid on these types of projects in our markets.”

GUIDANCE:

Construction Partners, Inc. sees FY2020 revenue of $830-870 million, versus the consensus of $848.47 million.

The Company maintained its outlook for fiscal year 2020 with regard to revenue, net income and Adjusted EBITDA, as follows:

• Revenue of $830 million to $870 million, compared to $783.2 million actual in FY 2019
• Net income of $39 million to $44 million, compared to $43.1 million actual in FY 2019
• Adjusted EBITDA (1) of $94 million to $102 million, compared to $92.3 million actual in FY 2019

The fiscal year 2020 outlook does not take into account the potential impact of any new federal or state infrastructure or highway-related legislation that could take effect in 2020.

For earnings history and earnings-related data on Construction Partners, Inc. (ROAD) click here.

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