NASDAQ$ROAD

Construction Partners Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong profitability driven by vertical integration synergies and effective utilization of resources, despite lower revenues.

Construction Partners, Inc. reported financial results for its third fiscal quarter ended June 30, 2020. The company reported revenues of $217.0 million, gross profit of $36.5 million, net income of $15.7 million, and adjusted EBITDA of $31.9 million.

  • Strong profitability in the third quarter, despite lower revenues.
  • 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 integrated products.
  • Continued to operate without significant delays related to state and local shelter-in-place orders.
  • Project 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.

Headline financials

Total Revenue

$217M

Previous: $227M-4.5%
EPS (adj)

$0.30

Previous: $0.33-9.1%
Adjusted EBITDA Margin

14.7%

No prior period
Capital Expenditures

-$41.5M

Previous: -$31.7M-30.8%
Free Cash Flow

-$25.8M

Previous: -$14.5M-77.3%
Net Income

$15.7M

Previous: $17.2M-8.5%
Operating Income

$20M

Previous: $22.2M-9.7%
Gross Profit

$36.5M

Previous: $38.1M-4.2%
Cash & Equivalents

$78.7M

Previous: $59.6M+31.9%
Total Assets

$574M

Previous: $509M+12.7%
Stock-Based Comp

$390K

Previous: $146K+167.1%

Revenue & EPS history

Construction Partners · Revenue · Quarterly

$217M

Q3 2020-4.5%vs Q3 2019
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Forward guidance

The Company has revised its outlook for fiscal year 2020 with regard to revenue, net income and Adjusted EBITDA.

Tailwinds

  • Revenue of $810 million to $820 million
  • Net income of $36 million to $38 million
  • Adjusted EBITDA of $92.0 million to $94.5 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.9%

Avg return

30 days after

46%

16 / 35 earnings

Positive

+24.8%

Q3 2022

Best reaction

-20.9%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+6.0%-3.5%-16.0%
Q1 2026+11.2%+11.2%+2.9%
Q4 2025-3.6%+1.5%+4.7%
Q2 2025+3.6%+8.3%+19.3%
Q1 2025+2.7%-4.6%-17.8%
Q4 2024+9.5%+9.0%+1.6%
Q3 2024+3.7%+4.1%-2.0%
Q2 2024+2.1%+6.4%-0.4%
Q1 2024-5.7%-5.2%+2.5%
Q4 2023-0.3%+1.7%+3.4%
Q3 2023+15.2%+15.1%+18.8%
Q2 2023+14.7%+16.3%+23.4%
Q1 2023-4.0%+2.3%-8.4%
Q4 2022-15.2%-10.0%-17.2%
Q3 2022+24.8%+25.7%+23.4%
Q2 2022-20.9%-20.3%-12.6%
Q1 2022+4.3%+6.1%+2.1%
Q4 2021-6.1%-8.0%-25.0%
Q3 2021-1.8%+2.4%+2.4%
Q2 2021-3.1%-7.7%+2.5%
Q1 2021-7.1%-10.3%-6.4%
Q4 2020-4.4%-4.9%+15.4%
Q3 2020+14.2%+10.0%-0.1%
Q2 2020-2.1%-17.7%+21.7%
Q1 2020-7.4%-1.8%-1.7%
Q4 2019-16.0%-13.7%-14.4%
Q3 2019+1.4%+8.3%+9.6%
Q2 2019+4.3%+17.9%+22.6%
Q1 2019-2.7%+4.2%+8.3%
Q4 2018-2.7%-7.3%+15.7%
Q3 2017+0.1%+1.3%+2.9%
Q3 2018+0.9%+8.1%+13.6%
Q2 2018-3.2%-4.3%+2.8%
Q2 2017-3.2%-4.3%+2.8%
Q4 2017-3.2%-4.3%+2.8%
Q1 2018
Q1 2017

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