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ROAD Construction Partners

Construction Partners, Inc. is a vertically integrated civil infrastructure company operating across five southeastern states, with 48 hot-mix asphalt plants, nine aggregate facilities and one liquid asphalt terminal. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The majority of the Company's public projects are maintenance-related. Private sector projects include paving and sitework for office and industrial parks, shopping centers, local businesses and residential developments.

Company profile

Ticker
ROAD
Exchange
CEO
Charles Owens
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Construction Partners, Inc. • C.W. Roberts Contracting, Inc. • Everett Dykes Grassing Co., Inc. • FSC II, LLC • The Scruggs Company • Wiregrass Construction Company, Inc. • *FSC II, LLC ...

ROAD stock data

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Calendar

6 Aug 21
20 Oct 21
30 Sep 22
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Sep 20 Sep 19 Sep 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 Oct 21 Palmer Royce Alan Class A Common Stock Option exercise Acquire M No No 0 10,000 0 33,500
15 Oct 21 Palmer Royce Alan Class B Common Stock Class A Common Stock Conversion Dispose C No No 0 10,000 0 130,209
2 Sep 21 SunTx Capital Management Class A Common Stock Other Dispose J Yes No 0 156,996 0 37,278
2 Sep 21 SunTx Capital Management Class B Common Stock Class A Common Stock Other Acquire J No No 0 535 0 535
2 Sep 21 SunTx Capital Management Class B Common Stock Class A Common Stock Other Acquire J Yes No 0 1,747,062 0 1,747,062
2 Sep 21 SunTx Capital Management Class B Common Stock Class A Common Stock Other Dispose J Yes No 0 802,747 0 1,441,723
2 Sep 21 SunTx Capital Management Class B Common Stock Class A Common Stock Other Dispose J Yes No 0 1,038,919 0 3,083,589
21 Jul 21 SunTx Capital Management Class A Common Stock Sell Dispose S Yes Yes 32.0015 90,000 2.88M 0
20 Jul 21 SunTx Capital Management Class A Common Stock Sell Dispose S Yes Yes 32.0031 15,756 504.24K 90,000
30 Jun 21 Flowers Robert P. Class B Common Stock Class A Common Stock Sell Dispose S No No 30.4 10,500 319.2K 5,990

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

98.8% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 157 158 -0.6%
Opened positions 24 37 -35.1%
Closed positions 25 11 +127.3%
Increased positions 61 69 -11.6%
Reduced positions 53 42 +26.2%
13F shares
Current Prev Q Change
Total value 1.84B 1.39B +31.9%
Total shares 36.05M 34.37M +4.9%
Total puts 121.4K 180K -32.6%
Total calls 10.6K 60.1K -82.4%
Total put/call ratio 11.5 3.0 +282.4%
Largest owners
Shares Value Change
Conestoga Capital Advisors 5.26M $165.14M +0.3%
Wasatch Advisors 3.6M $113.16M +0.1%
Kayne Anderson Rudnick Investment Management 3.1M $97.29M +13.2%
IVZ Invesco 2.11M $66.32M +6682.1%
BLK Blackrock 2.07M $65.09M -5.3%
FMR 1.88M $59.08M +17.1%
Vanguard 1.69M $52.96M -0.3%
Owens Charles E 1.25M $36.39M 0.0%
SunTx Capital Management 857.31K $26.92M -11.0%
BAC Bank Of America 850.87K $26.72M -0.2%
Largest transactions
Shares Bought/sold Change
IVZ Invesco 2.11M +2.08M +6682.1%
Baird Financial 0 -842.91K EXIT
Kayne Anderson Rudnick Investment Management 3.1M +361.34K +13.2%
FMR 1.88M +275.18K +17.1%
Brown Advisory 0 -208.5K EXIT
MS Morgan Stanley 256.13K +197.71K +338.4%
Assenagon Asset Management 19.61K -157.26K -88.9%
BLK Blackrock 2.07M -115.67K -5.3%
SunTx Capital Management 857.31K -105.76K -11.0%
Mirae Asset Global Investments 296.65K +105.39K +55.1%

Financial report summary

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Risks
  • A significant slowdown or decline in economic conditions, particularly in the southeastern United States, could adversely impact our results of operations.
  • Our business depends on federal, state and local government spending for public infrastructure construction, and reductions in government funding could adversely affect our results of operations.
  • Government contracts generally are subject to a variety of governmental regulations, requirements and statutes, the violation or alleged violation of which could have a material adverse effect on our business.
  • The cancellation of a significant number of contracts, our disqualification from bidding on new contracts and the unpredictable timing of new project opportunities could have a material adverse effect on our business.
  • If we are unable to accurately estimate the overall risks, revenues or costs on our projects, we may incur contract losses or achieve lower profits than anticipated.
  • Because our industry is capital-intensive and we have significant fixed and semi-fixed costs, our profitability is sensitive to changes in volume.
  • The success of our business depends, in part, on our ability to execute on our acquisition strategy, to successfully integrate acquired businesses and to retain key employees of acquired businesses.
  • We may lose business to competitors that underbid us and may be unable to compete favorably in our highly competitive industry.
  • We may be unable to obtain or maintain sufficient bonding capacity, which could preclude us from bidding on certain projects.
  • Our business is seasonal and subject to adverse weather conditions, which can adversely impact our business.
  • We depend on our information technology systems and processes, which are subject to cybersecurity and data leakage risks.
  • Design-build contracts subject us to the risk of design errors and omissions.
  • Our continued success requires us to hire, train and retain qualified personnel and subcontractors in a competitive industry.
  • We depend on third parties for equipment and supplies essential to operate our business.
  • We consume natural gas, electricity, diesel fuel, liquid asphalt and other petroleum-based resources that are subject to potential reliability issues, supply constraints and significant price fluctuations.
  • Our contract backlog is subject to reductions in scope and cancellations and therefore could be an unreliable indicator of our future earnings.
  • Failure of our subcontractors to perform as expected could have a negative impact on our results.
  • The construction services industry is highly schedule-driven, and our failure to meet the schedule requirements of our contracts could adversely affect our reputation and/or expose us to financial liability.
  • An inability to secure sufficient aggregate reserves could have a negative impact on our future results of operations.
  • Force majeure events, such as natural disasters, pandemics and terrorist attacks, and unexpected equipment failures could negatively impact our business, which may affect our financial condition, results of operations or cash flows.
  • Our business could be materially and adversely affected by a widespread outbreak of a contagious disease or other similar adverse public health development, such as COVID-19, or fear of such an event, and the measures that federal, state and local governments, agencies, law enforcement and health authorities implement to address it.
  • A failure to obtain or maintain adequate insurance coverage could adversely affect our results of operations.
  • We could incur material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual specifications.
  • Environmental laws and regulations and any changes to, or liabilities arising under, such laws and regulations could have a material adverse effect on our financial condition, results of operations and liquidity.
  • Our operations are subject to special hazards that may cause personal injury or property damage, subjecting us to liabilities and possible losses that may not be covered by insurance.
  • Our substantial indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations.
  • The Credit Agreement restricts our ability to engage in some business and financial transactions.
  • We may need to raise additional capital in the future for working capital, capital expenditures and/or acquisitions, and we may not be able to do so on favorable terms or at all, which could impair our ability to operate our business or achieve our growth objectives.
  • We may be unable to identify and contract with qualified “disadvantaged business enterprises” to perform as subcontractors, which could cause us to breach certain contracts with governmental customers.
  • Failure to maintain safe work sites could result in significant losses, which could materially affect our business and reputation.
  • We may be required to record an impairment charge if we determine that goodwill recorded in connection with prior acquisitions has become impaired, and this determination requires us to make significant judgments and assumptions about the future that are inherently subject to risks and uncertainties.
  • Our earnings are affected by the application of accounting standards and our critical accounting policies, which involve subjective judgments and estimates by our management. Our actual results could differ from the estimates and assumptions used to prepare our consolidated financial statements.
  • The dual class structure of our common stock has the effect of concentrating voting control with SunTx Capital Partners (“SunTx”) and its affiliates, which limits your ability to influence corporate matters.
  • We have incurred, and expect to continue to incur, substantial costs as a result of being a public company, which may significantly affect our financial condition.
  • For so long as we are an “emerging growth company,” we will not be required to comply with certain disclosure requirements that are applicable to other public companies, and the reduced disclosure requirements applicable to emerging growth companies could make our Class A common stock less attractive to investors.
  • If we are unable to maintain effective internal control over financial reporting, investors could lose confidence in our consolidated financial statements and our Company, which could have a material adverse effect on our stock price.
  • Future sales, or the perception of future sales, of Class A common stock by us or our existing stockholders in the public market could cause the market price for our Class A common stock to decline.
  • Affiliates of SunTx control us, and their interests may conflict with ours or yours in the future.
  • We may issue preferred stock with terms that could adversely affect the voting power or value of our Class A common stock.
  • Provisions in our governing documents and Delaware corporate law make it more difficult to effect a change in control of our Company, which could adversely affect the price of our Class A common stock.
  • Because we are a “controlled company” under the listing standards of The Nasdaq Stock Market LLC and the rules of the SEC, our stockholders do not have, and may never have, certain corporate governance protections that are available to stockholders of companies that are not controlled companies.
  • We do not intend to pay cash dividends on our Class A common stock in the foreseeable future, and therefore only appreciation, if any, of the price of our Class A common stock will provide a return to our stockholders.
Management Discussion
  • Revenues. Revenues for the three months ended June 30, 2021 increased $44.7 million, or 20.6%, to $261.7 million from $217.0 million for the three months ended June 30, 2020. The increase included $31.4 million of revenues attributable to acquisitions completed subsequent to June 30, 2020 and an increase of approximately $13.3 million of revenues in our remaining markets from contract work and sales of HMA and aggregates to third parties.
  • Gross Profit. Gross profit for the three months ended June 30, 2021 decreased $0.3 million, or 0.7%, to $36.6 million from $36.9 million for the three months ended June 30, 2020. The lower gross profit was primarily due to lower profit margins on the
  • projects we assumed in connection with (i) the North Carolina acquisitions that were completed during the first quarter of fiscal 2021 and (ii) lower utilization of the asphalt plants and equipment acquired in these acquisitions.
Content analysis
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