Construction Partners, Inc. (ROAD) Tops Q2 EPS by 3c, Revenues Beat; Offers FY19 Revenue Guidance Above Consensus

Construction Partners, Inc. (NASDAQ: ROAD) reported Q2 EPS of $0.08, $0.03 better than the analyst estimate of $0.05. Revenue for the quarter came in at $164.3 million versus the consensus estimate of $145.17 million.

• Revenue was $164.3 million, up 38.2%
• Gross profit was $19.8 million, up 44.0%
• Net income was $4.2 million, down 62.6% (1)
• Adjusted EBITDA(2) was $13.9 million, up 74.2%

Charles E. Owens, the Company’s President and Chief Executive Officer, stated, “We are pleased with our performance during the second fiscal quarter and are updating our financial outlook for fiscal 2019 to reflect the success we have had to date and the expected impact of the two acquisitions we closed in February. Favorable working conditions led to revenue growth in the second quarter. Consistent with prior years, we are on track to earn forty percent of our annual revenue in the first half of our fiscal year and sixty percent of annual revenue in the second half of our fiscal year due to normal weather patterns, longer workdays and other factors.

“During the second quarter, we grew our construction project backlog to $584.8 million at March 31, 2019. Of this amount, approximately $380.0 million is expected to be completed during the 2019 fiscal year. We will continue to pursue additional opportunities that can be completed both during the current fiscal year and beyond,” said Owens.

GUIDANCE:

Construction Partners, Inc. sees FY2019 revenue of $790-810 million, versus the consensus of $780.81 million.

• Net income of $40.75 million to $44.0 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 (2) of $88.5 million to $92.5 million, compared to $75.5 million reported in FY 2018

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

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