Business
Construction Partners, Inc. Announces Fiscal 2020 Third Quarter Results
Company Raises FY 2020 Net Income Outlook and Lowers Revenue DOTHAN, Ala., Aug. 7, 2020 /PRNewswire/ -- Construction Partners, Inc. (NASDAQ: ROAD) (the
About this update from Construction Partners, Inc.
[{"type":"text","content":"Company Raises FY 2020 Net Income Outlook and Lowers Revenue\n\n\nDOTHAN, Ala., Aug. 7, 2020 /PRNewswire/ -- 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 third fiscal quarter ended June 30, 2020. Results for the quarter included revenues of $217.0 million, gross profit of $36.5 million, net income of $15.7 million, and adjusted EBITDA(1) of $31.9 million.\nCharles 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.\nOwens 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.\" \nProject backlog at June 30, 2020 was $651.2 million, compared to $579.1 million at March 31, 2020 and $581.1 million at June 30, 2019. \nRevised Fiscal Year 2020 Outlook\nThe Company has revised its outlook for fiscal year 2020 with regard to revenue, net income and Adjusted EBITDA, as follows:\n– Revenue of $810 million to $820 million \n– Net income of $36 million to $38 million\n– Adjusted EBITDA (1) of $92.0 million to $94.5 million\nNed 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 put...