Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Aug. 10, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ROAD | |
Entity Registrant Name | Construction Partners, Inc. | |
Entity Central Index Key | 1,718,227 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,950,000 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 39,464,619 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash | $ 75,183 | $ 27,547 |
Contracts receivable including retainage, net | 115,679 | 120,984 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 12,747 | 4,592 |
Inventories | 25,145 | 17,487 |
Other current assets | 14,417 | 4,520 |
Total current assets | 243,171 | 175,130 |
Property, plant and equipment, net | 177,222 | 115,911 |
Goodwill | 34,398 | 30,600 |
Intangible assets, net | 2,325 | 2,550 |
Investment in joint venture | 1,066 | |
Other assets | 14,562 | 2,483 |
Deferred income taxes, net | 1,619 | 1,876 |
Total assets | 474,363 | 328,550 |
Current liabilities: | ||
Accounts payable | 48,104 | 52,402 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 39,520 | 32,108 |
Current maturities of debt | 14,788 | 10,000 |
Accrued expenses and other current liabilities | 23,059 | 20,036 |
Total current liabilities | 125,471 | 114,546 |
Long-term liabilities: | ||
Long-term debt, net of current maturities | 51,786 | 47,136 |
Deferred income taxes, net | 7,980 | 9,667 |
Other long-term liabilities | 4,801 | 5,020 |
Total long-term liabilities | 64,567 | 61,823 |
Total liabilities | 190,038 | 176,369 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, par value $0.001; 1,000,000 shares authorized and no shares issued and outstanding | ||
Additional paid-in capital | 242,493 | 142,385 |
Treasury stock, at cost | (15,603) | (11,983) |
Retained earnings | 57,381 | 21,734 |
Total stockholders' equity | 284,325 | 152,181 |
Total liabilities and stockholders' equity | 474,363 | 328,550 |
Class A Common Stock [Member] | ||
Stockholders' equity | ||
Common stock, value | 12 | |
Total stockholders' equity | 12 | |
Class B Common Stock [Member] | ||
Stockholders' equity | ||
Common stock, value | 42 | |
Total stockholders' equity | $ 42 | |
Common Stock Undefined [Member] | ||
Stockholders' equity | ||
Common stock, value | 45 | |
Total stockholders' equity | $ 45 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Sep. 30, 2017 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 0 |
Common stock, shares issued | 11,950,000 | 0 |
Common stock, shares outstanding | 11,950,000 | 0 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 0 |
Common stock, shares issued | 42,387,571 | 0 |
Common stock, shares outstanding | 39,464,619 | 0 |
Common Stock Undefined [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 0 | 126,000,000 |
Common stock, shares issued | 0 | 44,987,575 |
Common stock, shares outstanding | 0 | 44,987,575 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | $ 195,075 | $ 148,099 | $ 464,395 | $ 380,585 |
Cost of revenues | 165,606 | 124,117 | 398,379 | 323,513 |
Gross profit | 29,469 | 23,982 | 66,016 | 57,072 |
General and administrative expenses | (14,788) | (12,477) | (40,572) | (34,005) |
Gain on sale of equipment, net | 86 | 238 | 1,117 | 2,675 |
Operating income | 14,767 | 11,743 | 41,364 | 25,742 |
Interest expense, net | (406) | (659) | (956) | (2,802) |
Loss on extinguishment of debt | (1,638) | (1,638) | ||
Other income (expense) | 15 | (3) | (45) | (134) |
Income before provision for income taxes and earnings from investment in joint venture | 14,376 | 9,443 | 40,363 | 21,168 |
Provision for income taxes | 1,409 | 3,031 | 5,382 | 7,395 |
Earnings from investment in joint venture | 436 | 666 | ||
Net income | $ 13,403 | $ 6,412 | $ 35,647 | $ 13,773 |
Net income per share attributable to common stockholders: | ||||
Basic | $ 0.29 | $ 0.15 | $ 0.82 | $ 0.33 |
Diluted | $ 0.29 | $ 0.15 | $ 0.81 | $ 0.33 |
Weighted average number of common shares outstanding: | ||||
Basic | 46,557,785 | 41,538,989 | 43,648,309 | 41,514,656 |
Diluted | 46,988,359 | 41,566,344 | 43,932,546 | 41,541,447 |
Subsidiaries [Member] | Settlement Agreement [Member] | ||||
Settlement income | $ 14,803 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 9 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Common Stock Undefined [Member] | Common Stock Undefined [Member]Converted From Common Stock To Common Class B [Member] | Class A Common Stock [Member] | Class A Common Stock [Member]Converted From Common Class B To Common Class A [Member] | Class B Common Stock [Member] | Class B Common Stock [Member]Converted From Common Stock To Common Class B [Member] | Class B Common Stock [Member]Converted From Common Class B To Common Class A [Member] |
Beginning balance at Sep. 30, 2017 | $ 152,181 | $ 142,385 | $ (11,983) | $ 21,734 | $ 45 | ||||||
Beginning balance, shares at Sep. 30, 2017 | (3,296,034) | 44,987,575 | 0 | 0 | |||||||
Conversion of stock Value | $ (45) | $ 45 | |||||||||
Conversion of stock shares (convented) | (44,987,575) | (44,987,575) | 44,987,571 | 44,987,571 | |||||||
Conversion of Class B common stock to Class A common stock in connection with initial public offering of Class A common stock | $ 3 | $ (3) | |||||||||
Conversion of Class B common stock to Class A common stock in connection with initial public offering of Class A common stock, Shares | 2,600,000 | 2,600,000 | 2,600,000 | 2,600,000 | |||||||
Conversion of Class B common stock to Class A common stock in connection with initial public offering of Class A common stock, Shares | (2,600,000) | (2,600,000) | (2,600,000) | (2,600,000) | |||||||
Initial public offering of Class A common stock, net of offering costs | 98,009 | $ 98,000 | $ 9 | ||||||||
Initial public offering of Class A common stock, net of offering costs,Shares | 98,000 | 9,350,000 | |||||||||
Equity-based compensation expense | 975 | $ 975 | |||||||||
Sale of treasury stock | 5 | (453) | $ 458 | ||||||||
Cashless option exercise | (2,492) | 1,586 | (4,078) | ||||||||
Net income | 35,647 | 35,647 | |||||||||
Ending balance at Jun. 30, 2018 | $ 284,325 | $ 242,493 | $ (15,603) | $ 57,381 | $ 12 | $ 42 | |||||
Ending balance, shares at Jun. 30, 2018 | (2,922,952) | 0 | 11,950,000 | 39,464,619 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 35,647 | $ 13,773 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization of long-lived assets | 17,929 | 15,709 |
Amortization of deferred debt issuance costs | 60 | 632 |
Loss on extinguishment of debt | 1,638 | |
Provision for bad debt | 435 | 435 |
Gain on sale of equipment, net | (1,117) | (2,675) |
Equity-based compensation expense | 975 | 513 |
Earnings from investment in joint venture | (666) | |
Deferred income taxes | (1,430) | (52) |
Changes in operating assets and liabilities, net of acquisition: | ||
Contracts receivable including retainage, net | 14,055 | 12,902 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (6,128) | (2,196) |
Inventories | (3,335) | (3,098) |
Other current assets | (9,165) | (4,063) |
Other assets | (12,079) | (1,481) |
Accounts payable | (7,944) | (4,033) |
Billings in excess of costs and estimated earnings on uncompleted contracts | 2,823 | 562 |
Accrued expenses and other current liabilities | (6,048) | (5,448) |
Other long-term liabilities | (352) | (1,840) |
Net cash provided by operating activities | 23,660 | 21,278 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (33,460) | (18,786) |
Proceeds from sales of equipment | 2,889 | 3,744 |
Business acquisition, net of cash acquired | (51,319) | |
Investment in joint venture | (400) | |
Net cash used in investing activities | (82,290) | (15,042) |
Cash flows from financing activities: | ||
Repayments of revolving credit facility | (5,000) | (5,410) |
Proceeds from revolving credit facility | 312 | |
Proceeds from issuance of long-term debt, net of deferred issuance costs | 21,917 | 54,616 |
Repayments of long-term debt | (8,665) | (58,139) |
Proceeds from initial public offering of Class A common stock, net of offering costs | 98,009 | |
Proceeds from sale of treasury stock | 5 | 497 |
Common stock dividend paid | (31,292) | |
Net cash provided by (used in) financing activities | 106,266 | (39,416) |
Net change in cash | 47,636 | (33,180) |
Cash: | ||
Beginning of period | 27,547 | 51,085 |
End of period | 75,183 | 17,905 |
Supplemental cash flow information: | ||
Cash paid for interest | 1,578 | 2,688 |
Cash paid for income taxes | 12,557 | 9,325 |
Non-cash investing activities: | ||
Property, plant and equipment financed with accounts payable | $ 152 | $ 142 |
General
General | 9 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
General | Note 1 - General Business Description Construction Partners, Inc. (the “Company”) is a leading infrastructure and road construction company operating in Alabama, Florida, Georgia, South Carolina and North Carolina through its wholly-owned subsidiaries. The Company provides site development, paving, utility and drainage systems, as well as hot mix asphalt supply. The Company executes projects for a mix of private, municipal, state, and federal customers that are both privately and publicly funded. The majority of the projects are performed under fixed unit price contracts where the ultimate contract amount is based on the fixed unit price applied to actual units of work completed on the project. To a lesser extent, the Company also performs some fixed total price contracts. Company History The Company was formed as a Delaware corporation in 2007 as a holding company for its wholly-owned subsidiary, Construction Partners Holdings, Inc. (“Construction Partners Holdings”), a Delaware corporation incorporated in 1999 and which began operations in 2001 to execute an acquisition growth strategy in the hot mix asphalt paving and construction industry. SunTx Capital Partners (“SunTx”), a private equity firm based in Dallas, Texas, is the Company’s majority investor and has owned a controlling interest in the Company’s stock since its inception. On September 20, 2017, the Company changed its name from SunTx CPI Growth Company, Inc. to Construction Partners, Inc. In May 2018, the Company completed an initial public offering of its Class A common stock (the “IPO”), as further described in Note 2. Seasonality The use and consumption of our products and services fluctuate some due to seasonality, although the Company is able to perform construction projects during all twelve months in all of its markets. Warmer and drier weather during the third and fourth quarters of its fiscal year (April 1 - September 30) typically result in higher activity and revenues during those quarters. The first and second quarters of the Company’s fiscal year (October 1 - March 31) typically have lower levels of activity due to adverse weather conditions. The results of operations and cash flows for any fiscal quarter may not be indicative of future results or of the results of operations or cash flows for a full fiscal year. These interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes thereto for the fiscal year ended September 30, 2017 included in the IPO Prospectus. |
Initial Public Offering
Initial Public Offering | 9 Months Ended |
Jun. 30, 2018 | |
Text Block [Abstract] | |
Initial Public Offering | Note 2 – Initial Public Offering On April 23, 2018, the Company amended and restated its certificate of incorporation to effectuate a dual class common stock structure consisting of Class A common stock and Class B common stock, as a result of which each share of common stock, par value $0.001 per share, was reclassified and changed into 25.2 shares of Class B common stock so that all holders of outstanding common shares became the holders of 41,817,537 shares of Class B common stock and shares held by the Company in treasury became 3,170,034 shares of Class B treasury shares (the “Reclassification”). The amended and restated certificate of incorporation authorizes 400,000,000 shares of Class A common stock and 100,000,000 shares of Class B common stock. All share and per share amounts have been retroactively adjusted for all periods presented to give effect to the 25.2 to 1 split of the common stock as part of the Reclassification (the “Stock Split”). On May 8, 2018, the Company completed an IPO of 11,250,000 shares of Class A common stock for $12.00 per share. Of these shares, 9,000,000 were sold by the Company, for which the Company received approximately $100.4 million in proceeds, after deducting underwriting discounts and commissions of approximately $7.6 million, and prior to additional total offering expenses of approximately $6.3 million. Of the $6.3 million additional offering expenses, $2.2 million are reflected as capitalized equity issuance costs included within other current assets on the Consolidated Balance Sheet at September 30, 2017. All $6.3 million of equity issuance costs were reclassified to additional paid-in On May 24, 2018, the underwriters of the IPO partially exercised their over-allotment option to purchase an additional 700,000 shares of our Class A common stock at the IPO price of $12.00 per share less the underwriting discount and commissions. Of these shares, 350,000 were sold by the Company for which the Company received approximately $3.9 million in proceeds, after deducting underwriting discounts and commissions of approximately $0.3 million. The remaining 350,000 shares were sold by the holders of Class B common stock, which shares upon sale automatically converted into 350,000 shares of Class A common stock, which reduced the issued and outstanding shares of Class B common stock to 42,387,571 and 39,217,537, respectively. The Company did not receive any proceeds from the sale of shares sold by the holders of Class B common stock. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 3 - Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Construction Partners, Inc. and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. These interim consolidated statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), which permit reduced disclosure for interim periods. The Consolidated Balance Sheet at September 30, 2017 was derived from audited financial statements for the year then ended, but does not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) with respect to annual financial statements. In the opinion of management, the unaudited consolidated financial statements include all recurring adjustments and normal accruals necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the dates and periods presented. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited annual consolidated financial statements for the year ended September 30, 2017 and notes thereto included in the IPO Prospectus. Results for interim periods are not necessarily indicative of the results to be expected for a full fiscal year or for any future period. Common share and per share amounts have been retroactively adjusted for all periods presented to give effect to the Stock Split described in Note 2— Initial Public Offering Management’s Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the recorded amounts of assets, liabilities, stockholders’ equity, revenues and expenses during the reporting period, and the disclosure of contingent liabilities at the date of the financial statements. Estimates are used in accounting for items such as recognition of revenues and cost of revenues, goodwill and intangible assets, allowance for doubtful accounts, valuation allowances related to income taxes, accruals for potential liabilities related to lawsuits or insurance claims, and the fair value of equity-based compensation awards. Estimates are continually evaluated based on historical information and actual experience. Actual results could differ materially from those estimates. A description of certain critical accounting policies of the Company is presented below. Additional critical accounting policies and the underlying judgments and uncertainties are described in the notes to the Company’s annual consolidated financial statements for the fiscal year ended September 30, 2017 included in the IPO Prospectus. Emerging Growth Company Construction Partners, Inc. is an “emerging growth company” as defined by the Jumpstart Our Business Startups Act, or “JOBS Act” which was enacted in April 2012. As an emerging growth company, the Company may take advantage of an exemption from being required to comply with new or revised financial accounting standards until the effective date of such standards is applicable to private companies. The JOBS Act provides that a company may elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging Contracts Receivable Including Retainage, net Contracts receivable including retainage, net are generally based on amounts billed and currently due from customers, amounts currently due but unbilled, and amounts retained by the customer pending completion of a project. It is common in the Company’s industry for a small portion of progress billings of the contract price, typically 10%, to be withheld by the customer until the Company completes a project to the satisfaction of the customer in accordance with contract terms. Such amounts are also included as contracts receivable including retainage, net. Based on the Company’s experience with similar contracts in recent years, billings for such retainage balances are generally collected within one year of the completion of the project. The carrying value of contracts receivable including retainage, net of the allowance for doubtful accounts, represents their estimated net realizable value. Management provides for uncollectible accounts through a charge to earnings and a credit to the allowance for doubtful accounts based on its assessment of the current status of individual accounts, type of service performed, and current economic conditions. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and an adjustment of the contract receivable. Costs and Estimated Earnings on Uncompleted Contracts Billing practices for the Company’s contracts are governed by the contract terms of each project based on progress toward completion approved by the owner, achievement of milestones or pre-agreed percentage-of-completion The current asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” represents revenues that have been recognized in amounts which have not been billed under the terms of the contracts. Included in costs and estimated earnings in excess of billings on uncompleted contracts are amounts the Company seeks or will seek to collect from customers or others for errors, changes in contract specifications or design, contract change orders in dispute, unapproved as to scope and price, or other customer related causes of unanticipated additional contract costs (claims and unapproved change orders). Such amounts are recorded at estimated net realizable value when realization is probable and can be reasonably estimated. Claims and unapproved change orders made by the Company may involve negotiation and, in rare cases, litigation. Unapproved change orders and claims also involve the use of estimates, and revenues associated with unapproved change orders and claims are included when realization is probable and amounts can be reliably determined. The Company did not recognize any material amounts associated with claims and unapproved change orders during the periods presented. The current liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents billings to customers in excess of revenues recognized. Concentration of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of contracts receivable including retainage. In the normal course of business, the Company provides credit to its customers and does not generally require collateral. Concentrations of credit risk associated with these receivables are monitored on an ongoing basis. The Company has not historically experienced significant credit losses due primarily to management’s assessment of customers’ credit ratings. The Company principally deals with recurring customers, state and local governments and local companies whose reputations are known to the Company. Credit checks are performed for significant new customers. Progress payments are generally required for significant projects. The Company generally has the ability to file liens against the customer’s property if payments are not made on a timely basis. No customer accounted for more than 10% of the Company’s contracts receivable including retainage, net balance at June 30, 2018 or September 30, 2017. Projects performed for various Departments of Transportation accounted for 45.6% and 43.7% of consolidated revenues for the three months ended June 30, 2018 and June 30, 2017, respectively, and 40.9% and 38.7% of consolidated revenues for the nine months ended June 30, 2018 and June 30, 2017, respectively. Two customers accounted for more than 10% of consolidated revenues for the periods presented below (unaudited): % of consolidated % of consolidated revenues revenues for the three months ended for the nine months ended 2018 2017 2018 2017 Alabama Department of Transportation 17.0 % 13.6 % 14.8 % 12.8 % North Carolina Department of Transportation 14.8 % 16.6 % 13.5 % 13.2 % Revenues and Cost Recognition Revenues from the Company’s contracts are recognized on the percentage-of-completion (cost-to-cost The accuracy of revenues and cost of revenues reported on the consolidated financial statements depends on, among other things, management’s estimates of total costs to complete projects. The Company maintains reasonable estimates based on management’s experience; however, many factors contribute to changes in estimates of contract costs. Accordingly, estimates made with respect to uncompleted projects are subject to change as each project progresses and better estimates of contract costs become available. All contract costs are recorded as incurred and revisions to estimated total costs are reflected as soon as the obligation to perform is determined. Provisions are recognized for the full amount of estimated losses on uncompleted contracts whenever evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue, regardless of the stage of completion. When the Company incurs additional costs related to work performed by subcontractors, the Company may have contractual provisions to back charge the subcontractors for those costs. A reduction to costs related to back charges is recognized when the estimated recovery is probable and the amount can be reasonably estimated. Contract costs include direct labor and material, amounts paid to subcontractors, direct overhead costs and equipment costs (primarily depreciation, fuel, maintenance and repairs). As more fully described in the Notes to Consolidated Financial Statements for the year ended September 30, 2017, the Financial Accounting Standards Board issued ASU No. 2014-09, Income Taxes The provision for income taxes includes federal and state income taxes. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the realization of deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and deferred tax liabilities are presented net by taxing authority and classified as non-current The Company’s policy is to classify income tax related interest and penalties in interest expense and other expenses, respectively. Equity Issuance Costs The Company capitalizes certain third-party fees that are directly associated with in-process paid-in |
Contracts Receivable Including
Contracts Receivable Including Retainage, Net | 9 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Contracts Receivable Including Retainage, Net | Note 4 - Contracts Receivable Including Retainage, Net Contracts receivable including retainage, net are comprised of the following at June 30, 2018 and September 30, 2017 (in thousands): June 30, 2018 September 30, 2017 (unaudited) Contracts receivable $ 102,673 $ 109,538 Retainage 14,482 13,180 117,155 122,718 Allowance for doubtful accounts (1,476 ) (1,734 ) Contracts receivable including retainage, net $ 115,679 $ 120,984 Retainage receivables have been billed, but are not due until contract completion and acceptance by the customer. |
Costs and Estimated Earnings on
Costs and Estimated Earnings on Uncompleted Contracts | 9 Months Ended |
Jun. 30, 2018 | |
Contractors [Abstract] | |
Costs and Estimated Earnings on Uncompleted Contracts | Note 5 - Costs and Estimated Earnings on Uncompleted Contracts Costs and estimated earnings compared to billings on uncompleted contracts at June 30, 2018 and September 30, 2017 consist of the following (in thousands): June 30, 2018 September 30, 2017 (unaudited) Costs on uncompleted contracts $ 677,833 $ 489,661 Estimated earnings to date on uncompleted contracts 88,222 62,193 766,055 551,854 Billings to date on uncompleted contracts (792,828 ) (579,370 ) Net billings in excess of costs and estimated earnings on uncompleted contracts $ (26,773 ) $ (27,516 ) Reconciliation of net billings in excess of costs and estimated earnings on uncompleted contracts to amounts reflected on the Company’s Consolidated Balance Sheets at June 30, 2018 and September 30, 2017 is as follows (in thousands): June 30, 2018 September 30, 2017 (unaudited) Costs and estimated earnings in excess of billings on uncompleted contracts $ 12,747 $ 4,592 Billings in excess of costs and estimated earnings on uncompleted contracts (39,520 ) (32,108 ) Net billings in excess of costs and estimated earnings on uncompleted contracts $ (26,773 ) $ (27,516 ) |
Business Acquisition
Business Acquisition | 9 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Acquisition | Note 6 – Business Acquisition On May 15, 2018, the Company executed a stock purchase agreement (the “Stock Purchase Agreement”) to complete the acquisition of 100% of the common shares and voting interest of The Scruggs Company (“Scruggs”), a privately-owned infrastructure and road construction company headquartered in Hahira, Georgia, which operates three hot mix asphalt plants, three aggregate mines and one industrial plant (“Scruggs Acquisition”). The Scruggs Acquisition complemented the Company’s vertically integrated Southeastern U.S. operations, providing new bidding areas in the expanding Georgia market. The Company funded the purchase price with cash on hand plus an additional $22.0 million borrowed under its existing Term Loan as described in Note 9. The purchase price of $51.3 million, excluding cash acquired, was paid in cash at closing. This acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations. The following presents the provisional allocation of the purchase price to assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, determined in accordance with the methodology described under Fair Value Measurements Contracts receivable, including retainage $ 9,184 Costs and estimated earnings in excess of billings on uncompleted contracts 2,027 Inventory 4,323 Other current assets (1) 731 Property, plant and equipment Land and improvements 7,302 Quarry reserves 13,986 Asphalt plants 6,917 Buildings 1,552 Construction equipment 17,571 Goodwill 3,798 Accounts payable (3,646 ) Billings in excess of costs and estimated earnings on uncompleted contracts (4,589 ) Current maturities of long-term debt (388 ) Other current liabilities (1,638 ) Due to seller (4,940 ) Long-term debt, net of current maturities (738 ) Other liabilities (133 ) $ 51,319 (1) Other current assets excludes cash acquired The $3.8 million of purchase price exceeding the net fair value of identifiable assets acquired and liabilities assumed was recorded as goodwill. Under the terms of the Stock Purchase Agreement, the selling stockholders made a Section 338(h)(10) election under the Internal Revenue Code. Accordingly, goodwill allocated to the purchase price and the step-up The Consolidated Statements of Income for the three and nine months ended June 30, 2018 includes $11.4 million of revenue and $1.0 million of net income attributable to operations of Scruggs since the acquisition date of May 15, 2018. The Company recorded certain costs to effect the acquisition as they were incurred, which are reflected as general and administrative expenses on the Consolidated Statements of Income in the amount of $0.2 million for the three and nine months ended June 30, 2018. The following presents pro forma revenues and net income as though the Scruggs Acquisition had occurred on October 1, 2016 (unaudited, in thousands): For the three months ended June 30, For the nine months ended June 30, 2018 2017 2018 2017 Revenues $ 206,924 $ 173,663 $ 519,735 $ 450,484 Net income $ 15,379 $ 8,775 $ 40,653 $ 20,582 Pro forma financial information is presented as if the operations of Scruggs had been included in the consolidated results of the Company since October 1, 2016, and gives effect to transactions that are directly attributable to the Scruggs Acquisition, including adjustments to: a) Include the pro forma results of operations of Scruggs for the three and nine months ended June 30, 2018 and June 30, 2017 b) Include additional depreciation and depletion expense related to the fair value of acquired property, plant and equipment and quarry reserves, as applicable, as if such assets were acquired on October 1, 2016 and consistently applied to the Company’s depreciation and depletion methodologies. c) Include interest expense under the Company’s Term Loan as if the $22.0 million borrowed to partially finance the purchase price was borrowed on October 1, 2016. Interest expense calculations further assume that no principal payments were made applicable to the $22.0 million borrowed during the period from October 1, 2016 through June 30, 2018, and that the interest rate in effect on the date the Company made the additional $22.0 million borrowing on May 15, 2018 was in effect for the period from October 1, 2016 through June 30, 2018. d) Exclude $0.2 million of acquisition-related expenses from the three and nine months ended June 30, 2018, as though such expenses were incurred prior to the pro forma acquisition date of October 1, 2016. Pro forma information is presented for informational purposes and may not be indicative of revenue or net income that would have been achieved if the Scruggs Acquisition had occurred on October 1, 2016. |
Settlement Agreement
Settlement Agreement | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Settlement Agreement | Note 7 – Settlement Agreement On April 19, 2018, certain of the Company’s subsidiaries entered into settlement agreements with a third party, pursuant to which they will receive aggregate net payments of approximately $15.7 million, payable in four equal installments between January 2019 and July 2020, in exchange for releasing and waiving all current and future claims against the third party relating to compensation to the Company for a business interruption event that occurred more than five years ago, which did not directly relate to the Company’s business and which has not, and is not expected to, recur (the “Settlement”). The Company recorded a pre-tax |
Joint Venture
Joint Venture | 9 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture | Note 8 – Joint Venture In November 2017, one of the Company’s wholly-owned subsidiaries entered into a joint venture agreement (the “JV”) with a third-party for the sole purpose of bidding on and, if awarded, performing a construction project for the Alabama Department of Transportation. The Company and the third-party each own a 50% partnership interest in the JV and share revenue and expenses on a 50/50 basis. The JV is jointly managed by representatives of the Company and the third-party and all labor, material and equipment required to perform the contract is subcontracted to parties which may include both the subsidiary of the Company that is party to the JV and the third-party. The Company accounts for this joint venture as an equity method investment in accordance with U.S. GAAP. Through June 30, 2018, the Company invested approximately $0.4 million into the JV, which is reflected as investment in joint venture on the Consolidated Balance Sheet. During the three and nine months ended June 30, 2018, the Company recognized $0.4 million and $0.7 million of pre-tax |
Debt
Debt | 9 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 - Debt The Company maintains various credit facilities from time to time to finance acquisitions, the purchase of real estate, construction equipment, asphalt plants and other fixed assets, and for general working capital purposes. Debt at June 30, 2018 and September 30, 2017 consisted of the following (in thousands): June 30, 2018 September 30, 2017 (unaudited) Long-term debt: Compass Term Loan $ 60,900 $ 47,500 Compass Revolving Credit Facility 5,000 10,000 Other long-term debt 1,061 — Total long-term debt 66,961 57,500 Deferred debt issuance costs (387 ) (364 ) Current maturities of long-term debt (14,788 ) (10,000 ) Long-term debt, net of current maturities $ 51,786 $ 47,136 Current maturities of debt: Current maturities of long-term debt $ 14,788 $ 10,000 Total current maturities of debt $ 14,788 $ 10,000 In connection with the Scruggs Acquisition described in Note 6 – Business Acquisition |
Equity
Equity | 9 Months Ended |
Jun. 30, 2018 | |
Federal Home Loan Banks [Abstract] | |
Equity | Note 10 - Equity As described in Note 2 – Initial Public Offering Shares of outstanding Class B Common Stock at June 30, 2018 include 63,000 shares of unvested restricted stock, which were issued on February 23, 2018 and vest on July 1, 2018 (see Note 11 – Equity-based Compensation In June 2018, employees holding options under 2010 Non-Plan paid-in The following presents changes to the Company’s outstanding shares of common stock, treasury shares and additional paid-in Treasury Shares Common Shares Class A Class B Additional Paid- in Capital Shares Cost Balance, September 30, 2017 41,691,541 — — $ 142,385 (3,296,034 ) $ (11,983 ) Issuance of restricted shares from treasury 126,000 — — (453 ) 126,000 458 Reclassification of common stock (41,817,541 ) — 41,817,537 — — — Conversion of Class B common stock to Class A common stock in connection with initial public offering of Class A common stock — 2,600,000 (2,600,000 ) — — — Initial public offering of Class A common stock, net of offering costs — 9,350,000 — 98,000 — — Cashless option exercise — — 247,082 1,586 247,082 (4,078 ) Equity-based compensation expense — — — 975 — — Balance, June 30, 2018 (unaudited) — 11,950,000 39,464,619 $ 242,493 (2,922,952 ) $ (15,603 ) |
Equity-based Compensation
Equity-based Compensation | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-based Compensation | Note 11 - Equity-based Compensation Restricted Stock Awards On February 23, 2018, the Company granted to certain employees an aggregate of 126,000 restricted shares of common stock at a purchase price of $0.04 per share. The Company recorded proceeds of $5,000 from the sale of these restricted shares, which were issued from treasury shares. The Company recorded a reduction to additional paid-in Half of the shares granted vested on the award date and the remaining 50% of the shares vest on July 1, 2018, subject to continuous employment. The grant date fair value of the shares was estimated to be $7.78 per share. During the three and nine months ended June 30, 2018, the Company recorded compensation expense in connection with these grants in the amount of $0.4 million and $1.0 million, respectively, which is reflected as general and administrative expenses on the Company’s Consolidated Statements of Income. At June 30, 2018, there was no unrecognized compensation expense related to these awards. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 12 - Earnings per Share As described in Note 2 – Initial Public Offering Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average of aggregate shares of pre-Reclassification For the three months ended June 30, For the nine months ended June 30, 2018 2017 2018 2017 Numerator Net income attributable to common stockholders $ 13,403 $ 6,412 $ 35,647 $ 13,773 Denominator Weighted average number of basic common shares outstanding 46,557,785 41,538,989 43,648,309 41,514,656 Net income per basic common share attributable to common stockholders $ 0.29 $ 0.15 $ 0.82 $ 0.33 Diluted earnings per share is calculated by dividing net income attributable to common stockholders by the weighted-average number of common shares and potential dilutive common shares outstanding during the period, including options and shares of unvested restricted stock, determined using the treasury stock method. Securities are excluded from the calculation of diluted earnings per share for any period during which the effect of their inclusion would be anti-dilutive. The following table summarizes the calculation of the weighted-average number of diluted common shares outstanding and the calculation of diluted earnings per share for the periods presented (unaudited in thousands, except share and per share amounts): For the three months ended June 30, For the nine months ended June 30, 2018 2017 2018 2017 Numerator Net income attributable to common stockholders $ 13,403 $ 6,412 $ 35,647 $ 13,773 Denominator Weighted average number of basic common shares outstanding 46,557,785 41,538,989 43,648,309 41,514,656 Effect of dilutive securities: 2016 Equity Incentive Plan options — 27,355 — 26,791 2010 Non-Plan 387,892 — 271,163 — 2018 Restricted Stock grants 42,682 — 13,074 — Weighted average number of diluted common shares outstanding: 46,988,359 41,566,344 43,932,546 41,541,447 Net income per diluted common share attributable to common stockholders $ 0.29 $ 0.15 $ 0.81 $ 0.33 The Company had 768,984 common stock equivalents which were excluded from the calculation of diluted earnings per share for the three months and nine months ended June 30, 2017 because they were anti-dilutive. There were no anti-dilutive common stock equivalents during the three months or nine months ended June 30, 2018. |
Provision for Income Taxes
Provision for Income Taxes | 9 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Note 13 - Provision for Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation known as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes broad and complex changes to the U.S. tax code, including a reduction in the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018. For the fiscal year ending September 30, 2018, the Company will record its income tax provision based on a blended U.S. statutory tax rate of 24.5%, which is based on a proration of the applicable tax rates before and after the effective date of the Tax Act, and the effect of applicable state income taxes. The federal statutory rate of 21% will apply for fiscal years beginning after September 30, 2018. During the three months and nine months ended June 30, 2018, the Company recorded a provisional discrete tax benefit of $0.9 million and $4.4 million, respectively, related to the Tax Act, primarily due to adjusting its U.S. deferred tax liabilities by the same amount, reflecting the reduction in the U.S. federal corporate tax rate. This net reduction in deferred tax liabilities also included the estimated impact on the Company’s net state deferred tax assets. The Company’s effective tax rate for the three months ended June 30, 2018 and 2017 was 9.5% and 32.1%, respectively. The effective tax rate for the three months ended June 30, 2018 was lower than the comparable prior year period primarily due to the decrease in the federal corporate tax rate and the benefit of a tax credit recorded during the three months ended June 30, 2018 related to the enactment of the Tax Act. Similarly, the Company’s effective tax rate for the nine months ended June 30, 2018 and 2017 was 13.1% and 34.9%, respectively, due primarily to the decrease in the federal corporate tax rate and the benefit of a tax credit recorded during the nine months ended June 30, 2018 related to the enactment of the Tax Act. The effective tax rate for the three and nine months ended June 30, 2018 was also reduced by a $1.3 million permanent tax benefit resulting from the deduction of the excess fair market value of options exercised under 2010 Non-Plan Equity |
Related Parties
Related Parties | 9 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 14 - Related Parties On December 31, 2017, the Company sold a wholly-owned subsidiary to an immediate family member of a Senior Vice President of the Company in consideration for a note receivable in the amount of $1.0 million, which approximated the net book value of the disposed entity. At June 30, 2018, $0.9 million was reflected on the Company’s Consolidated Balance Sheets representing the remaining balance on this note. In connection with this transaction, the Company also received a note receivable on December 31, 2017 in the amount of $0.9 million representing certain accounts payable of the disposed subsidiary that were paid by the Company. At June 30, 2018, $0.9 million was reflected on the Company’s Consolidated Balance Sheets representing the remaining balance on this note. Principal and interest payments are scheduled to be made in periodic installments from January 2018 through December 2023. On January 30, 2015, the Company entered into a master services subcontract with Austin Trucking, LLC (“Austin Trucking”), an entity owned by an immediate family member of a Senior Vice President of the Company. Pursuant to the agreement, Austin Trucking performs subcontract work for the Company, including trucking services. For these subcontract services, the Company incurred costs of approximately $4.3 million and $3.3 million during each of the three months ended June 30, 2018 and 2017, respectively, and approximately $8.6 million and $7.7 million during the nine months ended June 30, 2018 and 2017, respectively, which was included as cost of revenues on the Consolidated Statements of Income. At June 30, 2018 and September 30, 2017, the Company had $0.5 million and $1.0 million, respectively, due to Austin Trucking reflected as accounts payable on its Consolidated Balance Sheets. From time to time, the Company provides construction services to various companies owned by a family member of a Senior Vice President of the Company. For these services, the Company earned no revenue during the three months ended June 30, 2018, approximately $1.6 million during the three months ended June 30, 2017, and approximately $1.5 million and $3.1 million during the nine months ended June 30, 2018 and 2017, respectively, which was included as revenues on the Consolidated Statements of Income. At June 30, 2018 and September 30, 2017, the Company had $3.2 million and $5.3 million, respectively, due from these companies reflected as contracts receivable including retainage, net on its Consolidated Balance Sheets. From time to time, the Company provides construction services to various companies owned by a family member of a Senior Vice President of the Company. For these services, the Company earned no revenue during the three months ended June 30, 2018, approximately $0.2 million during the three months ended June 30, 2017, and approximately $0.2 million during each the nine months ended June 30, 2018, and 2017, which was included as revenues on the Consolidated Statements of Income. At June 30, 2018 and September 30, 2017, the Company had $0.6 million and $1.0 million, respectively, due from this company reflected as contracts receivable including retainage, net on its Consolidated Balance Sheets. The Company is party to a management services agreement with SunTx under which the Company pays SunTx $0.25 million per fiscal quarter, as well as reimbursement of certain out-of-pocket In the normal course of business, the Company maintains relationships and engages in transactions with other related parties. Transaction amounts during the three and nine months ended June 30, 2018 and 2017 are not material to the Consolidated Statements of Income or to cash flows for those periods. Amounts due to or from such related parties are not material to the Company’s Consolidated Balance Sheets at June 30, 2018 or September 30, 2017. The nature of these relationships and transactions are described in Note 16 to the Company’s audited consolidated financial statements for the year ended September 30, 2017 included in the IPO Prospectus. |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Construction Partners, Inc. and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. These interim consolidated statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), which permit reduced disclosure for interim periods. The Consolidated Balance Sheet at September 30, 2017 was derived from audited financial statements for the year then ended, but does not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) with respect to annual financial statements. In the opinion of management, the unaudited consolidated financial statements include all recurring adjustments and normal accruals necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the dates and periods presented. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited annual consolidated financial statements for the year ended September 30, 2017 and notes thereto included in the IPO Prospectus. Results for interim periods are not necessarily indicative of the results to be expected for a full fiscal year or for any future period. Common share and per share amounts have been retroactively adjusted for all periods presented to give effect to the Stock Split described in Note 2— Initial Public Offering |
Management's Estimates | Management’s Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the recorded amounts of assets, liabilities, stockholders’ equity, revenues and expenses during the reporting period, and the disclosure of contingent liabilities at the date of the financial statements. Estimates are used in accounting for items such as recognition of revenues and cost of revenues, goodwill and intangible assets, allowance for doubtful accounts, valuation allowances related to income taxes, accruals for potential liabilities related to lawsuits or insurance claims, and the fair value of equity-based compensation awards. Estimates are continually evaluated based on historical information and actual experience. Actual results could differ materially from those estimates. A description of certain critical accounting policies of the Company is presented below. Additional critical accounting policies and the underlying judgments and uncertainties are described in the notes to the Company’s annual consolidated financial statements for the fiscal year ended September 30, 2017 included in the IPO Prospectus. |
Emerging Growth Company | Emerging Growth Company Construction Partners, Inc. is an “emerging growth company” as defined by the Jumpstart Our Business Startups Act, or “JOBS Act” which was enacted in April 2012. As an emerging growth company, the Company may take advantage of an exemption from being required to comply with new or revised financial accounting standards until the effective date of such standards is applicable to private companies. The JOBS Act provides that a company may elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging |
Contracts Receivable Including Retainage, net | Contracts Receivable Including Retainage, net Contracts receivable including retainage, net are generally based on amounts billed and currently due from customers, amounts currently due but unbilled, and amounts retained by the customer pending completion of a project. It is common in the Company’s industry for a small portion of progress billings of the contract price, typically 10%, to be withheld by the customer until the Company completes a project to the satisfaction of the customer in accordance with contract terms. Such amounts are also included as contracts receivable including retainage, net. Based on the Company’s experience with similar contracts in recent years, billings for such retainage balances are generally collected within one year of the completion of the project. The carrying value of contracts receivable including retainage, net of the allowance for doubtful accounts, represents their estimated net realizable value. Management provides for uncollectible accounts through a charge to earnings and a credit to the allowance for doubtful accounts based on its assessment of the current status of individual accounts, type of service performed, and current economic conditions. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and an adjustment of the contract receivable. |
Costs and Estimated Earnings on Uncompleted Contracts | Costs and Estimated Earnings on Uncompleted Contracts Billing practices for the Company’s contracts are governed by the contract terms of each project based on progress toward completion approved by the owner, achievement of milestones or pre-agreed percentage-of-completion The current asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” represents revenues that have been recognized in amounts which have not been billed under the terms of the contracts. Included in costs and estimated earnings in excess of billings on uncompleted contracts are amounts the Company seeks or will seek to collect from customers or others for errors, changes in contract specifications or design, contract change orders in dispute, unapproved as to scope and price, or other customer related causes of unanticipated additional contract costs (claims and unapproved change orders). Such amounts are recorded at estimated net realizable value when realization is probable and can be reasonably estimated. Claims and unapproved change orders made by the Company may involve negotiation and, in rare cases, litigation. Unapproved change orders and claims also involve the use of estimates, and revenues associated with unapproved change orders and claims are included when realization is probable and amounts can be reliably determined. The Company did not recognize any material amounts associated with claims and unapproved change orders during the periods presented. The current liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents billings to customers in excess of revenues recognized. |
Concentration of Risks | Concentration of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of contracts receivable including retainage. In the normal course of business, the Company provides credit to its customers and does not generally require collateral. Concentrations of credit risk associated with these receivables are monitored on an ongoing basis. The Company has not historically experienced significant credit losses due primarily to management’s assessment of customers’ credit ratings. The Company principally deals with recurring customers, state and local governments and local companies whose reputations are known to the Company. Credit checks are performed for significant new customers. Progress payments are generally required for significant projects. The Company generally has the ability to file liens against the customer’s property if payments are not made on a timely basis. No customer accounted for more than 10% of the Company’s contracts receivable including retainage, net balance at June 30, 2018 or September 30, 2017. Projects performed for various Departments of Transportation accounted for 45.6% and 43.7% of consolidated revenues for the three months ended June 30, 2018 and June 30, 2017, respectively, and 40.9% and 38.7% of consolidated revenues for the nine months ended June 30, 2018 and June 30, 2017, respectively. Two customers accounted for more than 10% of consolidated revenues for the periods presented below (unaudited): % of consolidated % of consolidated revenues revenues for the three months ended for the nine months ended 2018 2017 2018 2017 Alabama Department of Transportation 17.0 % 13.6 % 14.8 % 12.8 % North Carolina Department of Transportation 14.8 % 16.6 % 13.5 % 13.2 % |
Revenues and Cost Recognition | Revenues and Cost Recognition Revenues from the Company’s contracts are recognized on the percentage-of-completion (cost-to-cost The accuracy of revenues and cost of revenues reported on the consolidated financial statements depends on, among other things, management’s estimates of total costs to complete projects. The Company maintains reasonable estimates based on management’s experience; however, many factors contribute to changes in estimates of contract costs. Accordingly, estimates made with respect to uncompleted projects are subject to change as each project progresses and better estimates of contract costs become available. All contract costs are recorded as incurred and revisions to estimated total costs are reflected as soon as the obligation to perform is determined. Provisions are recognized for the full amount of estimated losses on uncompleted contracts whenever evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue, regardless of the stage of completion. When the Company incurs additional costs related to work performed by subcontractors, the Company may have contractual provisions to back charge the subcontractors for those costs. A reduction to costs related to back charges is recognized when the estimated recovery is probable and the amount can be reasonably estimated. Contract costs include direct labor and material, amounts paid to subcontractors, direct overhead costs and equipment costs (primarily depreciation, fuel, maintenance and repairs). As more fully described in the Notes to Consolidated Financial Statements for the year ended September 30, 2017, the Financial Accounting Standards Board issued ASU No. 2014-09, |
Income Taxes | Income Taxes The provision for income taxes includes federal and state income taxes. Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying values and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the realization of deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and deferred tax liabilities are presented net by taxing authority and classified as non-current The Company’s policy is to classify income tax related interest and penalties in interest expense and other expenses, respectively. |
Equity Issuance Costs | Equity Issuance Costs The Company capitalizes certain third-party fees that are directly associated with in-process paid-in |
Significant Accounting Polici22
Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation of Revenues | Two customers accounted for more than 10% of consolidated revenues for the periods presented below (unaudited): % of consolidated % of consolidated revenues revenues for the three months ended for the nine months ended 2018 2017 2018 2017 Alabama Department of Transportation 17.0 % 13.6 % 14.8 % 12.8 % North Carolina Department of Transportation 14.8 % 16.6 % 13.5 % 13.2 % |
Contracts Receivable Includin23
Contracts Receivable Including Retainage, Net (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Contracts Receivable Including Retainage, Net | Contracts receivable including retainage, net are comprised of the following at June 30, 2018 and September 30, 2017 (in thousands): June 30, 2018 September 30, 2017 (unaudited) Contracts receivable $ 102,673 $ 109,538 Retainage 14,482 13,180 117,155 122,718 Allowance for doubtful accounts (1,476 ) (1,734 ) Contracts receivable including retainage, net $ 115,679 $ 120,984 |
Costs and Estimated Earnings 24
Costs and Estimated Earnings on Uncompleted Contracts (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Contractors [Abstract] | |
Costs and Estimated Earnings Compared to Billings on Uncompleted Contracts | Costs and estimated earnings compared to billings on uncompleted contracts at June 30, 2018 and September 30, 2017 consist of the following (in thousands): June 30, 2018 September 30, 2017 (unaudited) Costs on uncompleted contracts $ 677,833 $ 489,661 Estimated earnings to date on uncompleted contracts 88,222 62,193 766,055 551,854 Billings to date on uncompleted contracts (792,828 ) (579,370 ) Net billings in excess of costs and estimated earnings on uncompleted contracts $ (26,773 ) $ (27,516 ) |
Reconciliation of Net Billings in Excess of Costs and Estimated Earnings to Amounts Reflected on Company's Consolidated Balance Sheet | Reconciliation of net billings in excess of costs and estimated earnings on uncompleted contracts to amounts reflected on the Company’s Consolidated Balance Sheets at June 30, 2018 and September 30, 2017 is as follows (in thousands): June 30, 2018 September 30, 2017 (unaudited) Costs and estimated earnings in excess of billings on uncompleted contracts $ 12,747 $ 4,592 Billings in excess of costs and estimated earnings on uncompleted contracts (39,520 ) (32,108 ) Net billings in excess of costs and estimated earnings on uncompleted contracts $ (26,773 ) $ (27,516 ) |
Business Acquisition (Tables)
Business Acquisition (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Provisional Allocation of the Purchase Price to Assets Acquired and Liabilities | The following presents the provisional allocation of the purchase price to assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, determined in accordance with the methodology described under Fair Value Measurements Contracts receivable, including retainage $ 9,184 Costs and estimated earnings in excess of billings on uncompleted contracts 2,027 Inventory 4,323 Other current assets (1) 731 Property, plant and equipment Land and improvements 7,302 Quarry reserves 13,986 Asphalt plants 6,917 Buildings 1,552 Construction equipment 17,571 Goodwill 3,798 Accounts payable (3,646 ) Billings in excess of costs and estimated earnings on uncompleted contracts (4,589 ) Current maturities of long-term debt (388 ) Other current liabilities (1,638 ) Due to seller (4,940 ) Long-term debt, net of current maturities (738 ) Other liabilities (133 ) $ 51,319 (1) Other current assets excludes cash acquired |
Proforma of Revenues and Net Income | The following presents pro forma revenues and net income as though the Scruggs Acquisition had occurred on October 1, 2016 (unaudited, in thousands): For the three months ended June 30, For the nine months ended June 30, 2018 2017 2018 2017 Revenues $ 206,924 $ 173,663 $ 519,735 $ 450,484 Net income $ 15,379 $ 8,775 $ 40,653 $ 20,582 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at June 30, 2018 and September 30, 2017 consisted of the following (in thousands): June 30, 2018 September 30, 2017 (unaudited) Long-term debt: Compass Term Loan $ 60,900 $ 47,500 Compass Revolving Credit Facility 5,000 10,000 Other long-term debt 1,061 — Total long-term debt 66,961 57,500 Deferred debt issuance costs (387 ) (364 ) Current maturities of long-term debt (14,788 ) (10,000 ) Long-term debt, net of current maturities $ 51,786 $ 47,136 Current maturities of debt: Current maturities of long-term debt $ 14,788 $ 10,000 Total current maturities of debt $ 14,788 $ 10,000 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Company's Outstanding Shares of Common Stock, Treasury Shares and Additional Paid-in Capital | The following presents changes to the Company’s outstanding shares of common stock, treasury shares and additional paid-in Treasury Shares Common Shares Class A Class B Additional Paid- in Capital Shares Cost Balance, September 30, 2017 41,691,541 — — $ 142,385 (3,296,034 ) $ (11,983 ) Issuance of restricted shares from treasury 126,000 — — (453 ) 126,000 458 Reclassification of common stock (41,817,541 ) — 41,817,537 — — — Conversion of Class B common stock to Class A common stock in connection with initial public offering of Class A common stock — 2,600,000 (2,600,000 ) — — — Initial public offering of Class A common stock, net of offering costs — 9,350,000 — 98,000 — — Cashless option exercise — — 247,082 1,586 247,082 (4,078 ) Equity-based compensation expense — — — 975 — — Balance, June 30, 2018 (unaudited) — 11,950,000 39,464,619 $ 242,493 (2,922,952 ) $ (15,603 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of the Weighted Average Number of Basic and Diluted Common Shares Outstanding and the Calculation of Basic and Diluted Earnings Per Share | The following summarizes the weighted-average number of basic common shares outstanding and the calculation of basic earnings per share for the periods presented (unaudited in thousands, except share and per share amounts): For the three months ended June 30, For the nine months ended June 30, 2018 2017 2018 2017 Numerator Net income attributable to common stockholders $ 13,403 $ 6,412 $ 35,647 $ 13,773 Denominator Weighted average number of basic common shares outstanding 46,557,785 41,538,989 43,648,309 41,514,656 Net income per basic common share attributable to common stockholders $ 0.29 $ 0.15 $ 0.82 $ 0.33 The following table summarizes the calculation of the weighted-average number of diluted common shares outstanding and the calculation of diluted earnings per share for the periods presented (unaudited in thousands, except share and per share amounts): For the three months ended June 30, For the nine months ended June 30, 2018 2017 2018 2017 Numerator Net income attributable to common stockholders $ 13,403 $ 6,412 $ 35,647 $ 13,773 Denominator Weighted average number of basic common shares outstanding 46,557,785 41,538,989 43,648,309 41,514,656 Effect of dilutive securities: 2016 Equity Incentive Plan options — 27,355 — 26,791 2010 Non-Plan 387,892 — 271,163 — 2018 Restricted Stock grants 42,682 — 13,074 — Weighted average number of diluted common shares outstanding: 46,988,359 41,566,344 43,932,546 41,541,447 Net income per diluted common share attributable to common stockholders $ 0.29 $ 0.15 $ 0.81 $ 0.33 |
Initial Public Offering - Addit
Initial Public Offering - Additional Information (Detail) $ / shares in Units, $ in Thousands | May 24, 2018USD ($)$ / sharesshares | May 08, 2018USD ($)$ / sharesshares | Apr. 23, 2018$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares |
Initial Public Offering [Line Items] | ||||||
Common stock split conversion ratio | 25.2 | |||||
Stockholders equity note, stock split | All share and per share amounts have been retroactively adjusted for all periods presented to give effect to the 25.2 to 1 split of the common stock as part of the Reclassification (the "Stock Split") | |||||
Share price | $ / shares | $ 12 | |||||
Proceeds from issuance initial public offering | $ | $ 98,009 | |||||
Other Current Assets [Member] | ||||||
Initial Public Offering [Line Items] | ||||||
Offering Cost reflected as capitalized equity issuance costs | $ | $ 2,200 | |||||
Additional Paid-in Capital [Member] | ||||||
Initial Public Offering [Line Items] | ||||||
Common stock shares issued | 98,000 | |||||
issuance costs reclassified to additional paid-in capital | $ | $ 6,300 | |||||
Class Aand Class B Common Stock [Member] | ||||||
Initial Public Offering [Line Items] | ||||||
Common stock par value | $ / shares | $ 0.001 | |||||
Class B Common Stock [Member] | ||||||
Initial Public Offering [Line Items] | ||||||
Common stock par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Conversion rate to reclassify common stock to class B shares | 25.2 | |||||
Conversion of Common stock B into shares of common stock A | 350,000 | 2,250,000 | 41,817,537 | |||
Common stock shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 0 | ||
Common stock shares issued | 42,387,571 | 42,737,571 | 42,387,571 | 42,387,571 | 0 | |
Common stock shares outstanding | 39,217,537 | 39,567,537 | 39,464,619 | 39,464,619 | 0 | |
Class A Common Stock [Member] | ||||||
Initial Public Offering [Line Items] | ||||||
Common stock par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Common stock shares authorized | 400,000,000 | 400,000,000 | 400,000,000 | 0 | ||
Common stock shares issued | 700,000 | 11,250,000 | 9,350,000 | |||
Share price | $ / shares | $ 12 | |||||
Common stock shares issued | 11,950,000 | 11,950,000 | 0 | |||
Common stock shares outstanding | 11,950,000 | 11,950,000 | 0 | |||
Class A Common Stock [Member] | Directly Sold by The Company [Member] | ||||||
Initial Public Offering [Line Items] | ||||||
Common stock shares issued | 350,000 | 9,000,000 | ||||
Proceeds from issuance initial public offering | $ | $ 3,900 | $ 100,400 | ||||
Underwriting discounts and commissions | $ | $ 300 | 7,600 | ||||
Estimated offering expenses | $ | $ 6,300 | |||||
Class A Common Stock [Member] | Common ClassB Shareholders [Member] | ||||||
Initial Public Offering [Line Items] | ||||||
Common stock shares issued | 350,000 | 2,250,000 | ||||
Treasury Shares Class B [Member] | ||||||
Initial Public Offering [Line Items] | ||||||
Conversion of Common stock B into shares of common stock A | 3,170,034 |
Significant Accounting Polici30
Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017 | Jun. 30, 2018Customer | Jun. 30, 2017Customer | Sep. 30, 2017USD ($)Customer | |
Summary Of Accounting Policies [Line Items] | |||||
Percentage of progress billings or contract price, to be withheld by customer until project completed in accordance with contract terms | 10.00% | 10.00% | |||
Prepaid Expense [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Capitalized equity issuance costs | $ | $ 2.2 | ||||
Additional Paid-in Capital [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Reclassified from prepaid expenses to additional paid-in capital | $ | $ 6.3 | ||||
Revenues [Member] | Customer Concentration Risk [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Number of customers accounted for more than 10% | Customer | 2 | 2 | |||
Revenues [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Revenues [Member] | Customer Concentration Risk [Member] | Department of Transportation [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Concentration risk percentage | 45.60% | 43.70% | 40.90% | 38.70% | |
Contract Receivable Retainage [Member] | Credit Concentration Risk [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Number of customers accounted for more than 10% | Customer | 0 | 0 | |||
Contract Receivable Retainage [Member] | Credit Concentration Risk [Member] | Maximum [Member] | |||||
Summary Of Accounting Policies [Line Items] | |||||
Concentration risk percentage | 10.00% | 10.00% |
Significant Accounting Polici31
Significant Accounting Policies - Consolidation of Revenues (Detail) - Revenues [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Alabama Department of Transportation [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 17.00% | 13.60% | 14.80% | 12.80% |
North Carolina Department of Transportation [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 14.80% | 16.60% | 13.50% | 13.20% |
Contracts Receivable includin32
Contracts Receivable including Retainage, net - Schedule of Contracts Receivable Including Retainage, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Receivables [Abstract] | ||
Contracts receivable | $ 102,673 | $ 109,538 |
Retainage | 14,482 | 13,180 |
Contracts receivable including retainage, gross | 117,155 | 122,718 |
Allowance for doubtful accounts | (1,476) | (1,734) |
Contracts receivable including retainage, net | $ 115,679 | $ 120,984 |
Costs and Estimated Earnings 33
Costs and Estimated Earnings on Uncompleted Contracts - Cost and Estimated Earnings Compared to Billings on Uncompleted Contracts (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Contractors [Abstract] | ||
Costs on uncompleted contracts | $ 677,833 | $ 489,661 |
Estimated earnings to date on uncompleted contracts | 88,222 | 62,193 |
Costs and estimated earnings to date on uncompleted contracts | 766,055 | 551,854 |
Billings to date on uncompleted contracts | (792,828) | (579,370) |
Net billings in excess of costs and estimated earnings on uncompleted contracts | $ (26,773) | $ (27,516) |
Costs and Estimated Earnings 34
Costs and Estimated Earnings on Uncompleted Contracts - Reconciliation of Net Billings in Excess of Costs and Estimated Earnings to Amounts Reflected on the Company's Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Contractors [Abstract] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 12,747 | $ 4,592 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (39,520) | (32,108) |
Net billings in excess of costs and estimated earnings on uncompleted contracts | $ (26,773) | $ (27,516) |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | May 15, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | May 15, 2017 |
Business Acquisition [Line Items] | |||||||
Purchase price of business acquired settled in cash | $ 51,319 | ||||||
Goodwill recognized in connection with the acquisition | $ 34,398 | 34,398 | $ 30,600 | ||||
Revenues | 195,075 | $ 148,099 | 464,395 | $ 380,585 | |||
Net income | 13,403 | 6,412 | 35,647 | 13,773 | |||
General and administrative expenses | 14,788 | $ 12,477 | 40,572 | $ 34,005 | |||
Scruggs Company [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acuisition of common shares and voting interest | 100.00% | ||||||
Purchase price of business acquired settled in cash | $ 51,300 | ||||||
Goodwill recognized in connection with the acquisition | 3,800 | $ 3,798 | |||||
Revenues | 11,400 | 11,400 | |||||
Net income | 1,000 | 1,000 | |||||
General and administrative expenses | 200 | 200 | |||||
Acquisition-related expenses excluded from pro forma | $ 200 | 200 | |||||
Scruggs Company [Member] | Compass Term Loan [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding of purchase price through borrowed term loan | $ 22,000 | ||||||
Scruggs Company [Member] | Term A Loan Facility [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding of purchase price through borrowed term loan | $ 22,000 |
Business Acquisition - Schedule
Business Acquisition - Schedule of Provisional Allocation of the Purchase Price to Assets Acquired and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | May 15, 2018 | Sep. 30, 2017 | May 15, 2017 | |
Property, plant and equipment | |||||
Goodwill | $ 34,398 | $ 30,600 | |||
Scruggs Company [Member] | |||||
Business Acquisition [Line Items] | |||||
Contracts receivable, including retainage | $ 9,184 | ||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 2,027 | ||||
Inventory | 4,323 | ||||
Other current assets | [1] | 731 | |||
Property, plant and equipment | |||||
Quarry reserves | 13,986 | ||||
Goodwill | $ 3,800 | 3,798 | |||
Accounts payable | (3,646) | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (4,589) | ||||
Current maturities of long-term debt | (388) | ||||
Other current liabilities | (1,638) | ||||
Due to seller | (4,940) | ||||
Long-term debt, net of current maturities | (738) | ||||
Other liabilities | (133) | ||||
Total | 51,319 | ||||
Scruggs Company [Member] | Land and Improvements [Member] | |||||
Property, plant and equipment | |||||
Asphalt plants | 7,302 | ||||
Scruggs Company [Member] | Asphalt Plants [Member] | |||||
Property, plant and equipment | |||||
Asphalt plants | 6,917 | ||||
Scruggs Company [Member] | Buildings [Member] | |||||
Property, plant and equipment | |||||
Asphalt plants | 1,552 | ||||
Scruggs Company [Member] | Construction Equipment [Member] | |||||
Property, plant and equipment | |||||
Asphalt plants | $ 17,571 | ||||
[1] | (1) Other current assets excludes cash acquired |
Business Acquisition - Proforma
Business Acquisition - Proforma of Revenues and Net Income (Detail) - Scruggs Company [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Revenues | $ 206,924 | $ 173,663 | $ 519,735 | $ 450,484 |
Net income | $ 15,379 | $ 8,775 | $ 40,653 | $ 20,582 |
Settlement Agreement - Addition
Settlement Agreement - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018USD ($) | Apr. 19, 2018USD ($)Installments | |
Component Of Other Income And Expense [Line Items] | ||
Other current receivables | $ 3,900 | |
Other non current receivables | 10,900 | |
Subsidiaries [Member] | Settlement Agreement [Member] | ||
Component Of Other Income And Expense [Line Items] | ||
Settlement agreements, receivable | $ 15,700 | |
Settlement agreements, number of equal installments | Installments | 4 | |
Gain related to litigation settlement before tax | $ 14,803 |
Joint Venture - Additional Info
Joint Venture - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment | $ 1,066 | $ 1,066 |
Earnings from equity method investment | $ 436 | $ 666 |
Joint Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Partnership interest | 50.00% | 50.00% |
Equity method investment description of principal activities | share revenue and expenses on a 50/50 basis. | |
Equity method investment | $ 400 | $ 400 |
Earnings from equity method investment | $ 400 | $ 700 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Long-term debt: | ||
Other long-term debt | $ 1,061 | |
Total long-term debt | 66,961 | $ 57,500 |
Deferred debt issuance costs | (387) | (364) |
Current maturities of long-term debt | (14,788) | (10,000) |
Long-term debt, net of current maturities | 51,786 | 47,136 |
Current maturities of debt: | ||
Current maturities of long-term debt | 14,788 | 10,000 |
Total current maturities of debt | 14,788 | 10,000 |
Compass Term Loan [Member] | ||
Long-term debt: | ||
Total long-term debt | 60,900 | 47,500 |
Compass Revolving Credit Facility [Member] | ||
Long-term debt: | ||
Total long-term debt | $ 5,000 | $ 10,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Shares Issued And Outstanding [Line Items] | ||
Additional Borrowing | $ 242,493 | $ 142,385 |
Interest Rate Swap [Member] | ||
Shares Issued And Outstanding [Line Items] | ||
Swap agreement, notional amount | $ 11,000 | |
Term Loan, fixed percentage rate | 3.01% | |
Scruggs Company [Member] | ||
Shares Issued And Outstanding [Line Items] | ||
Additional Borrowing | $ 22,000 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2018 | May 24, 2018 | May 08, 2018 | Sep. 30, 2017 | |
Schedule Of Stockholders Equity [Line Items] | |||||
Repurchase of shares, price per share | $ 12 | ||||
Additional paid-in capital, exercise prices | $ 242,493 | $ 242,493 | $ 142,385 | ||
Unvested Restricted Stock [Member] | |||||
Schedule Of Stockholders Equity [Line Items] | |||||
Common Stock, Shares, Outstanding | 63,000 | 63,000 | |||
2010 Non-Plan Stock Options Agreement Options [Member] | |||||
Schedule Of Stockholders Equity [Line Items] | |||||
Treasury shares issued, price per share | $ 3.64 | ||||
Additional paid-in capital, exercise prices | $ 4,400 | $ 4,400 | |||
Payroll tax liability | $ 2,500 | $ 2,500 | |||
Class A Common Stock [Member] | |||||
Schedule Of Stockholders Equity [Line Items] | |||||
Common Stock, vote per share | One vote per share | ||||
Common Stock, Shares, Outstanding | 11,950,000 | 11,950,000 | 0 | ||
Repurchase of shares, price per share | $ 12 | ||||
Class A Common Stock [Member] | 2010 Non-Plan Stock Options Agreement Options [Member] | |||||
Schedule Of Stockholders Equity [Line Items] | |||||
Repurchase of shares, price per share | $ 13.17 | $ 13.17 | |||
Class B Common Stock [Member] | |||||
Schedule Of Stockholders Equity [Line Items] | |||||
Common Stock, vote per share | Ten vote per share | ||||
Common Stock, Shares, Outstanding | 39,464,619 | 39,464,619 | 39,217,537 | 39,567,537 | 0 |
Class B Common Stock [Member] | 2010 Non-Plan Stock Options Agreement Options [Member] | |||||
Schedule Of Stockholders Equity [Line Items] | |||||
Stock option exercised, options | 768,984 | ||||
Stock option exercised, price per share | $ 5.70 | ||||
Repurchase of shares, shares | 521,902 | ||||
Increase in class B common shares outstanding | 247,082 | 247,082 |
Equity - Schedule of Company's
Equity - Schedule of Company's Outstanding Shares of Common Stock, Treasury Shares and Additional Paid-in Capital (Detail) - USD ($) $ in Thousands | May 24, 2018 | May 08, 2018 | Jun. 30, 2018 |
Schedule Of Stockholders Equity [Line Items] | |||
Beginning balance | $ 152,181 | ||
Issuuance of restricted shares from treasury, Value | 5 | ||
Cashless option exercise | (2,492) | ||
Equity-based compensation expense | 975 | ||
Ending balance | 284,325 | ||
Additional Paid-in Capital [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Beginning balance | 142,385 | ||
Issuuance of restricted shares from treasury, Value | $ (453) | ||
Initial public offering of Class A common stock, net of offering costs | 98,000 | ||
Cashless option exercise | $ 1,586 | ||
Equity-based compensation expense | 975 | ||
Ending balance | 242,493 | ||
Treasury Stock [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Beginning balance | $ (11,983) | ||
Beginning balance, shares | (3,296,034) | ||
Issuuance of restricted shares from treasury, share | 126,000 | ||
Issuuance of restricted shares from treasury, Value | $ 458 | ||
Cashless option exercise | $ (4,078) | ||
Cashless option exercise, share | 247,082 | ||
Ending balance | $ (15,603) | ||
Ending balance, shares | (2,922,952) | ||
Common Stock Undefined [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Beginning balance | $ 45 | ||
Beginning balance, shares | 44,987,575 | ||
Issuuance of restricted shares from treasury, share | 126,000 | ||
Reclassification of common stock, shares | (44,987,575) | ||
Ending balance, shares | 0 | ||
Class A Common Stock [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Beginning balance, shares | 0 | ||
Conversion of Class B common stock to Class A common stock in connection with initial public offering of Class A common stock,Shares | 2,600,000 | ||
Conversion of Class B common stock to Class A common stock in connection with initial public offering of Class A common stock,Shares | (2,600,000) | ||
Initial public offering of Class A common stock, net of offering costs | 700,000 | 11,250,000 | 9,350,000 |
Ending balance | $ 12 | ||
Ending balance, shares | 11,950,000 | ||
Class B Common Stock [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Beginning balance, shares | 0 | ||
Reclassification of common stock, shares | 44,987,571 | ||
Conversion of Class B common stock to Class A common stock in connection with initial public offering of Class A common stock,Shares | 2,600,000 | ||
Conversion of Class B common stock to Class A common stock in connection with initial public offering of Class A common stock,Shares | (2,600,000) | ||
Cashless option exercise, share | 247,082 | ||
Ending balance | $ 42 | ||
Ending balance, shares | 39,217,537 | 39,567,537 | 39,464,619 |
Equity-based Compensation - Add
Equity-based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Feb. 23, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from reissuance of treasury stock | $ 5,000 | $ 497,000 | ||
Issuance of restricted shares from treasury | 5,000 | |||
Additional Paid-in Capital [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of restricted shares from treasury | $ (453,000) | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 126,000 | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 0.04 | $ 7.78 | ||
Unrecognized compensation expense | $ 0 | $ 0 | ||
Restricted Stock [Member] | General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 400,000 | $ 1,000,000 | ||
Restricted Stock [Member] | Share-based Compensation Award, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 50.00% | |||
Restricted Stock [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 50.00% | |||
Share-based compensation arrangement by share-based payment award, award vesting rights | 50% of the shares vest on July 1, 2018 |
Earnings per Share - Summary of
Earnings per Share - Summary of Weighted Average Number of Basic Common Shares Outstanding and the Calculation of Basic Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator | ||||
Net income attributable to common stockholders | $ 13,403 | $ 6,412 | $ 35,647 | $ 13,773 |
Denominator | ||||
Weighted average number of basic common shares outstanding | 46,557,785 | 41,538,989 | 43,648,309 | 41,514,656 |
Net income per basic common share attributable to common stockholders | $ 0.29 | $ 0.15 | $ 0.82 | $ 0.33 |
Earnings per Share - Summary 46
Earnings per Share - Summary of Calculation of the Weighted Average Number of Diluted Common Shares Outstanding and the Calculation of Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator | ||||
Net income attributable to common stockholders | $ 13,403 | $ 6,412 | $ 35,647 | $ 13,773 |
Denominator | ||||
Weighted average number of basic common shares outstanding | 46,557,785 | 41,538,989 | 43,648,309 | 41,514,656 |
Effect of dilutive securities: | ||||
Weighted average number of diluted common shares outstanding: | 46,988,359 | 41,566,344 | 43,932,546 | 41,541,447 |
Net income per diluted common share attributable to common stockholders | $ 0.29 | $ 0.15 | $ 0.81 | $ 0.33 |
Restricted Stock [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive options | 42,682 | 13,074 | ||
2016 Equity Incentive Plan Options [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive options | 27,355 | 26,791 | ||
2010 Non-Plan Stock Options Agreement Options [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive options | 387,892 | 271,163 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Common stock excluded from calculation of diluted earnings per share | 0 | 768,984 | 0 | 768,984 |
Provision for Income Taxes - Ad
Provision for Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | |
Corporate tax rate | 9.50% | 35.00% | 32.10% | 13.10% | 34.90% | |
Provisional discrete tax benefit | $ 0.9 | $ 4.4 | ||||
2010 Non-Plan Stock Options Agreement Options [Member] | ||||||
Employee service share-based compensation, tax benefit from compensation expense | $ 1.3 | $ 1.3 | ||||
Scenario, Plan [Member] | ||||||
Corporate tax rate | 21.00% | |||||
Income tax provision based on a blended U.S. statutory tax rate | 24.50% |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | |
Related Party Transaction [Line Items] | ||||||
Cost of revenues | $ 165,606,000 | $ 124,117,000 | $ 398,379,000 | $ 323,513,000 | ||
Accounts payable | 48,104,000 | 48,104,000 | $ 52,402,000 | |||
Related Parties [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Note receivable as consideration for sale of the wholly-owned subsidiary | $ 1,000,000 | |||||
Related Parties [Member] | Construction Services One [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue | 0 | 1,600,000 | 1,500,000 | 3,100,000 | ||
Contract receivable | 3,200,000 | 3,200,000 | 5,300,000 | |||
Related Parties [Member] | Construction Services Two [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue | 0 | 200,000 | 200,000 | 200,000 | ||
Contract receivable | 600,000 | 600,000 | 1,000,000 | |||
Austin Trucking [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of revenues | 4,300,000 | 3,300,000 | 8,600,000 | 7,700,000 | ||
Accounts payable | 500,000 | 500,000 | $ 1,000,000 | |||
SunTx [Member] | Management Service Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expense | 250,000 | |||||
Payment to related party | 500,000 | $ 300,000 | 1,100,000 | $ 1,000,000 | ||
Accounts Payable [Member] | Related Parties [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Note receivable as consideration for sale of the wholly-owned subsidiary | $ 900,000 | $ 900,000 |