Business
Construction Partners, Inc. Announces Fiscal 2020 Second Quarter Results
Q2 Year-over-Year Revenue Up 2.7% and Gross Profit Up 5.9% Company Revises and Narrows FY 2020 Outlook DOTHAN, Ala., May 08, 2020 (GLOBE NEWSWIRE) --
About this update from Construction Partners, Inc.
[{"type":"text","content":"Q2 Year-over-Year Revenue Up 2.7% and Gross Profit Up 5.9% Company Revises and Narrows FY 2020 Outlook\n DOTHAN, Ala., May 08, 2020 (GLOBE NEWSWIRE) -- Construction Partners, Inc. (NASDAQ: ROAD) (the “Company”), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways across five southeastern states, today reported financial and operating results for its second fiscal quarter ended March 31, 2020. Results for the quarter included revenues of $168.7 million, an increase of 2.7%, gross profit of $21.0 million, an increase of 5.9%, net income of $1.5 million, a decrease of 63.5%, and adjusted EBITDA(1) of $14.2 million, an increase of 2.0%, compared to the same quarter last year. Charles E. Owens, the Company’s President and Chief Executive Officer, stated, “We are pleased with our second quarter results. Notwithstanding the positive start to the year, we are all responding and adjusting to the unprecedented global health and economic impacts from COVID-19. First and foremost, we are focused on the safety and welfare of our employees, our customers, and the general public. In early March, we implemented additional safety protocols in response to the COVID-19 outbreak. As an essential business, we continued to work throughout the crisis, and we did not incur significant disruptions during the second quarter.” Alan Palmer, the Company’s Executive Vice President and Chief Financial Officer, commented, “Our second quarter net income was adversely affected by a $1.4 million non-cash charge to interest expense related to interest swaps on our outstanding debt and a $0.8 million non-cash charge to other expense related to fuel swaps that we entered during the quarter to take advantage of historically low diesel fuel prices. We record these derivative instruments at their fair value and record changes in the fair value in current earnings.” Project backlog at March 31, 2020 was $579.1 million, compared to $539.1 million at December 31, 2019 and $584.8 million at March 31, 2019. Palmer continued, “We maintain a construction backlog consisting primarily of recurring maintenance projects, and we continue to see opportunities to bid on these projects in our markets.” Owens commented, “During the second quarter, we acquired two hot mix asphalt plants in the Florida panhandle. The Pensacol...