Construction Partners, Inc. (ROAD) Tops Q3 EPS by 6c, Revenues Miss; Revised FY20 Revenue Guidance Below Consensus

Construction Partners, Inc. (NASDAQ: ROAD) reported Q3 EPS of $0.30, $0.06 better than the analyst estimate of $0.24. Revenue for the quarter came in at $217.04 million versus the consensus estimate of $236.68 million.

Charles E. Owens, the Company's President and Chief Executive Officer, said, "We are pleased with our strong profitability in the third quarter, despite lower revenues. Our solid results were driven primarily by vertical integration synergies, lower costs of fuel, effective utilization of crews and equipment, a disciplined project bidding strategy and pricing of our integrated products.

Owens continued, "As an essential business engaged in critical infrastructure in each state within our footprint, we have continued to operate without significant delays related to state and local shelter-in-place orders. The resiliency of our employees and the effectiveness of our safety protocols have positioned us to effectively manage pandemic-related challenges in our day-to-day operations. Notwithstanding current top-line pressure from COVID-19 and its related effects in certain of our markets, we remain optimistic about the long-term prospects of our business and industry."

GUIDANCE:

Construction Partners, Inc. sees FY2020 revenue of $810-820 million, versus the consensus of $823.79 million.

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

• Revenue of $810 million to $820 million
• Net income of $36 million to $38 million
• Adjusted EBITDA (1) of $92.0 million to $94.5 million

Ned N. Fleming, III, the Company's Executive Chairman, stated, "This was an excellent quarter, especially given the current economic and COVID-19 backdrop. The team has successfully driven operational efficiencies, generating profitability and cash flow. The entire CPI team has exemplified a commitment to safety during this pandemic, and we remain vigilant in putting the health and welfare of our employees, as well as the communities in which we work, as first priority. With our geographically diverse footprint across the Southeast and vertically integrated business model, we believe that we are well-positioned to continue to execute on our proven strategy for long-term growth and value creation."

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

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