Construction Partners, Inc. (NASDAQ: ROAD) reported Q1 EPS of $0.10, $0.04 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $154.3 million versus the consensus estimate of $167.48 million.

• Revenue was $154.3 million, up 2.6%
• Gross profit was $21.1 million, down 7.3%
• Net income was $5.2 million, down 53.1%
• Earnings per share were $0.10, down from $0.26
• Adjusted EBITDA(1) was $14.7 million, down 10.9%

Charles E. Owens, the Company’s President and Chief Executive Officer, stated, “During our fiscal first quarter, our construction projects generally met gross profit percentage expectations, despite delays related to Hurricane Michael in October and sustained rainfall experienced in many of our markets in November and December. Weather improved in January across our markets, allowing for increased productivity. We are confirming our growth outlook for 2019.”

“Historically, forty percent of our annual revenue comes in the first half of our fiscal year, which is seasonally slower than the second half of our fiscal year due to normal weather patterns, shorter workdays and other factors,” continued Owens. “We anticipate that our gross profit percentage will increase during future quarters as our fixed costs are allocated over a larger revenue base due to higher production at our hot mix asphalt plants and increased utilization of equipment.”

“We are proud of our team, and they are focused on executing efficiently on the increased workload that we have in place for the remainder of this fiscal year while continuing to build backlog for future years,” said Owens.

Ned N. Fleming, III, the Company’s Executive Chairman, stated, “The fundamentals of our model are strong and are supported by positive trends throughout our markets. Our outlook for fiscal year 2019 reflects our confidence in our proven strategy to generate annual revenue growth in single to low double digits, while delivering consistent double-digit adjusted EBITDA margins. We believe that the Company represents a compelling investment based on our solid track record of results and vertically integrated operations.”

GUIDANCE:

Construction Partners, Inc. sees FY2019 revenue of $790-810 million, versus the consensus of $774.42 million.

• Net income of $38.0 million to $43.0 million, compared to $50.8 million reported in FY 2018 (inclusive of a non-recurring $10.6 million after-tax settlement during FY 2018)
• Adjusted EBITDA (1) of $85.0 million to $91.5 million, compared to $75.5 million reported in FY 2018

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