Construction Partners, Inc. · NASDAQ:ROAD
Construction Partners — Merger or Acquisition (October 2024)
17 slides from Construction Partners's merger presentation, Oct 21, 2024
Slide 1: Investor Update October 21, 2024
Exhibit 99.3 Investor Update October 21, 2024
Slide 2: Cautionary Statements About this Presentation
Cautionary Statements About this Presentation The information in this presentation is current only as of the date on its cover. For any time after the cover date of this presentation, the information, including information concerning the business, financial condition, results of operations and prosp
Slide 3: Cautionary Statements (cont'd)
Cautionary Statements (cont’d) Use of Non-GAAP Financial Information The Company presents Adjusted EBITDA and Adjusted EBTIDA Margin to help the Company describe its operating and financial performance. These financial measures do not conform to accounting principles generally accepted in the United
Slide 4: CPI Enters into Definitive Agreement to Acquire Platform Company in Texas
Construction Partners, Inc. Enters into Definitive Agreement to Acquire Platform Company in Texas • CPI to acquire Lone Star Paving (LSP) in Austin, Texas for $654mm in cash and 3mm shares of CPI Class A common (1) stock • Transaction expected to close in 1Q25 and be immediately accretive to earning
Slide 5: Introduction of Lone Star Paving
Introduction of Lone Star Paving Strategic Footprint Around Growing MSAs • Lone Star Paving is a vertically integrated infrastructure company providing construction materials and paving services to public and HMA private customers in Central and South Texas Plants • Headquartered in Austin, TX, the
Slide 6: Transformational Transaction Expanding CPI into Texas
Transformational Transaction Expanding CPI into Texas Complementary Geographic Expansion in Attractive Texas Market ü • Adds a new platform to the Family of CPI Companies that will serve as a growth engine in TX Private Private 47% • Texas is the most well-funded state DOT; attractive “Texas 37% Tri
Slide 7: Vertical Integration Driving Higher Margin Profile
Vertical Integration Driving Higher Margin Profile Aggregate Liquid Hot Mix Asphalt Paving Production Asphalt Production Services ~33% of aggregate internally ~3 million tons paved ~86% of liquid asphalt internally HMA internally sourced from 10 sourced from 4 LSP aggregates annually by 16 LSP pavin
Slide 8: Welcome to Texas
Welcome to Texas Texas Funding Overview Government Funding (1) • High-growth state with the largest State & Local Government Contract Awards for Highways transportation funding program in the U.S. $89.5bn $81.9bn • TxDOT let to contract $13.6 billion in FY 24 $64.6bn $61.5bn $58.1bn • Prop 1 – TxDOT
Slide 9: Highly Attractive Texas Geography
Highly Attractive Texas Geography (1) Primarily Serving Three of Fastest Growing Metropolitan Areas in the U.S. Current Addressable Market MSAs vs 10 Largest Populated MSAs (2023A – 2033 CAGR) 2.0% Austin Houston 1.5% Phoenix Temple-Killeen 1.0% Waco Miami San Antonio Dallas Atlanta 0.5% Washington
Slide 10: Combined CPI & LSP At-A-Glance
Combined CPI & LSP At-A-Glance $2.42-2.52bn $338-368mm 14.0-14.6% ~61% 5,625+ 105 FY25 Guidance FY25 Guidance FY25 Guidance Revenue from Publicly- Employees Production Facilities (1) (1) Revenue Adj. EBITDA Adj. EBITDA Margin funded Projects Asphalt-Centered Infrastructure Company Regionally Focused
Slide 11: Financial Outlook
Financial Outlook
Slide 12: CPI Initial Guidance: FY25 Revenue and Net Income
CPI Initial Guidance: FY25 (1) (1) Revenue Net Income +35% | Midpoint Growth +43% | Midpoint Growth $90-106mm $2.42-2.52bn $372-413mm LSP (9 months) $1.821-1.825bn $68-70mm $12-19mm LSP (9 months) FY24E FY25E FY24E FY25E Note: CPI has assumed for purposes of the FY25 outlook that the pending acquisi
Slide 13: CPI Initial Guidance: FY25 Adjusted EBITDA and Margin
CPI Initial Guidance: FY25 (1) (1) Adjusted EBITDA Margin Adjusted EBITDA +18% | Midpoint Growth +60% | Midpoint Growth $338-368mm 14.0-14.6% 12.0-12.2% +1.9% LSP (9 months) $89-98mm LSP (9 months) $219-222mm FY24E FY25E FY24E FY25E Note: CPI has assumed for purposes of the FY25 outlook that the pen
Slide 14: Appendix
Appendix
Slide 15: Net Income to Reported EBITDA Reconciliation
Net Income to Reported EBITDA Reconciliation (1) Lone Star Paving - 12 Months Ended June 30, 2024 For the 12 Months Ended June 30, 2024 Net income $ 82,902 Interest expense, net 6,464 Provision for income taxes 861 Depreciation, depletion, accretion and amortization 22,174 Reported EBITDA $ 112,401
Slide 16: Net Income to Adjusted EBITDA Reconciliation - FY2024 Updated Outlook
Net Income to Adjusted EBITDA Reconciliation Construction Partners, Inc. - Fiscal Year 2024 Updated Outlook For the Fiscal Year Ended September 30, 2024 Low High Net income $ 68,000 $ 70,000 Interest expense, net 18,750 18,900 Provision (benefit) for income taxes 22,850 23,000 Depreciation, depletio
Slide 17: Net Income to Adjusted EBITDA Reconciliation - FY2025 Outlook
Net Income to Adjusted EBITDA Reconciliation Construction Partners, Inc. - Fiscal Year 2025 Outlook For the Fiscal Year Ended September 30, 2025 Low High Net income $ 90,363 $ 105,636 Interest expense, net 65,000 65,000 Provision (benefit) for income taxes 30,137 35,864 Depreciation, depletion, and
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