Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2019 | Feb. 05, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38479 | |
Entity Registrant Name | Construction Partners, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0758017 | |
Entity Address, Address Line One | 290 Healthwest Drive, Suite 2 | |
Entity Address, City or Town | Dothan | |
Entity Address, State or Province | AL | |
Entity Address, Postal Zip Code | 36303 | |
City Area Code | 334 | |
Local Phone Number | 673-9763 | |
Title of 12(b) Security | Class A common stock, par value $0.001 per share | |
Trading Symbol | ROAD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001718227 | |
Current Fiscal Year End Date | --09-30 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 32,705,418 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 19,076,327 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 49,443 | $ 80,619 |
Contracts receivable including retainage, net | 118,548 | 139,882 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 14,152 | 12,030 |
Inventories | 36,271 | 34,291 |
Prepaid expenses and other current assets | 16,087 | 13,144 |
Total current assets | 234,501 | 279,966 |
Property, plant and equipment, net | 229,502 | 205,870 |
Operating lease right-of-use assets | 8,532 | |
Goodwill | 45,467 | 38,546 |
Intangible assets, net | 3,381 | 3,434 |
Investment in joint venture | 39 | 496 |
Other assets | 1,953 | 2,284 |
Deferred income taxes | 1,173 | 1,173 |
Total assets | 524,548 | 531,769 |
Current liabilities: | ||
Accounts payable | 48,627 | 70,442 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 31,169 | 31,115 |
Current portion of operating lease liabilities | 2,930 | |
Current maturities of debt | 8,511 | 7,538 |
Accrued expenses and other current liabilities | 11,649 | 19,078 |
Total current liabilities | 102,886 | 128,173 |
Long-term liabilities: | ||
Long-term debt, net of current maturities | 49,149 | 42,458 |
Operating lease liabilities, net of current portion | 5,818 | |
Deferred income taxes | 11,480 | 11,480 |
Other long-term liabilities | 6,031 | 6,108 |
Total long-term liabilities | 72,478 | 60,046 |
Total liabilities | 175,364 | 188,219 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.001; 10,000,000 shares authorized at December 31, 2019 and September 30, 2019 and no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 243,847 | 243,452 |
Treasury stock, at cost, 2,922,952 shares of Class B common stock, par value $0.001 | (15,603) | (15,603) |
Retained earnings | 120,885 | 115,646 |
Total stockholders’ equity | 349,184 | 343,550 |
Total liabilities and stockholders’ equity | 524,548 | 531,769 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | 33 | 33 |
Total stockholders’ equity | 33 | 33 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | 22 | 22 |
Total stockholders’ equity | $ 22 | $ 22 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Sep. 30, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 32,705,418 | 32,597,736 |
Common stock, shares outstanding (in shares) | 32,705,418 | 32,597,736 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 21,999,279 | 22,106,961 |
Common stock, shares outstanding (in shares) | 19,076,327 | 19,184,009 |
Treasury stock, shares (in shares) | 2,922,952 | 2,922,952 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 175,314 | $ 154,327 |
Cost of revenues | 151,557 | 133,199 |
Gross profit | 23,757 | 21,128 |
General and administrative expenses | (17,113) | (14,431) |
Gain on sale of equipment, net | 309 | 334 |
Operating income | 6,953 | 7,031 |
Interest expense, net | (281) | (515) |
Other income (expense) | 65 | (17) |
Income before provision for income taxes and earnings from investment in joint venture | 6,737 | 6,499 |
Provision for income taxes | 1,319 | 1,651 |
Earnings from investment in joint venture | 43 | 306 |
Net income | $ 5,461 | $ 5,154 |
Net income per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ 0.11 | $ 0.10 |
Diluted (in dollars per share) | $ 0.11 | $ 0.10 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 51,489,211 | 51,414,619 |
Diluted (in shares) | 51,609,380 | 51,414,619 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Class A Common Stock | Class B Common Stock |
Beginning balance (in shares) at Sep. 30, 2018 | 11,950,000,000 | 42,387,571,000 | ||||
Beginning balance at Sep. 30, 2018 | $ 299,469 | $ 242,493 | $ (15,603) | $ 72,525 | $ 12 | $ 42 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,154 | 5,154 | ||||
Ending balance (in shares) at Dec. 31, 2018 | 11,950,000,000 | 42,387,571,000 | ||||
Ending balance at Dec. 31, 2018 | 304,623 | 242,493 | (15,603) | 77,679 | $ 12 | $ 42 |
Beginning balance (in shares) at Sep. 30, 2019 | 32,597,736 | 22,106,961 | ||||
Beginning balance at Sep. 30, 2019 | 343,550 | 243,452 | (15,603) | 115,646 | $ 33 | $ 22 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,461 | 5,461 | ||||
Equity-based compensation expense | $ 395 | |||||
Conversion of Class B common stock to Class A common stock (in shares) | 0 | 107,682 | 107,682 | |||
Ending balance (in shares) at Dec. 31, 2019 | 32,705,418 | 21,999,279 | ||||
Ending balance at Dec. 31, 2019 | $ 349,184 | $ 243,847 | $ (15,603) | $ 120,885 | $ 33 | $ 22 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 5,461 | $ 5,154 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization of long-lived assets | 9,438 | 7,138 |
Amortization of deferred debt issuance costs and debt discount | 36 | 27 |
Provision for bad debt | 145 | 145 |
Gain on sale of equipment | (309) | (334) |
Equity-based compensation expense | 395 | 0 |
Earnings from investment in joint venture | (43) | (306) |
Other non-cash adjustments | (6) | 0 |
Changes in operating assets and liabilities, net of acquisition: | ||
Contracts receivable including retainage, net | 21,981 | 26,174 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (2,122) | (858) |
Inventories | (1,535) | (3,982) |
Prepaid expenses and other current assets | (2,943) | (2,277) |
Other assets | 331 | 298 |
Accounts payable | (21,815) | (25,290) |
Billings in excess of costs and estimated earnings on uncompleted contracts | 54 | 733 |
Accrued expenses and other current liabilities | (7,444) | (5,402) |
Other long-term liabilities | (77) | (9) |
Net cash provided by operating activities, net of acquisition | 1,547 | 1,211 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (23,595) | (7,406) |
Proceeds from sale of equipment | 492 | 536 |
Business acquisition, net of cash acquired | (17,748) | 0 |
Distributions received from investment in joint venture | 500 | 1,800 |
Net cash used in investing activities | (40,351) | (5,070) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt, net of debt issuance costs and discount | 9,777 | 0 |
Repayments of long-term debt | (2,149) | (3,711) |
Net cash provided by (used in) financing activities | 7,628 | (3,711) |
Net change in cash and cash equivalents | (31,176) | (7,570) |
Cash and cash equivalents: | ||
Beginning of period | 80,619 | 99,137 |
End of period | 49,443 | 91,567 |
Supplemental cash flow information: | ||
Cash paid for interest | 496 | 747 |
Cash paid for income taxes | 300 | 60 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 217 | 0 |
Cash paid for operating lease liabilities | 870 | 0 |
Non-cash items: | ||
Property, plant and equipment financed with accounts payable | $ 391 | $ 178 |
General
General | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Business Description Construction Partners, Inc. (the “Company”) is a leading infrastructure and road construction company operating in Alabama, Florida, Georgia, North Carolina and South Carolina through its wholly owned subsidiaries. The Company provides site development, paving, utility and drainage systems services, as well as hot mix asphalt (“HMA”), aggregates, ready-mix concrete, and liquid asphalt cement 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 work is performed under fixed unit price contracts and, to a lesser extent, fixed total price contracts. The Company was formed as a Delaware corporation in 2007 as a holding company for its wholly owned subsidiary, Construction Partners Holdings, Inc., a Delaware corporation incorporated in 1999 that began operations in 2001, to execute an acquisition growth strategy in the HMA paving and construction industry. On December 31, 2019, the Company completed an internal reorganization by merging Construction Partners Holdings, Inc. with and into the Company, with the Company surviving the merger. 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 the Company’s inception. Seasonality The use and consumption of our products and services fluctuate due to seasonality. Our products are used, and our construction operations and production facilities are located, outdoors. Therefore, seasonal changes and other weather-related conditions, in particular extended snowy, rainy or cold weather in the winter, spring or fall and major weather events, such as hurricanes, tornadoes, tropical storms and heavy snows, can adversely affect our business and operations through a decline in both the use of our products and demand for our services. In addition, construction materials production and shipment levels follow activity in the construction industry, which typically occurs in the spring, summer and fall. Warmer and drier weather during the third and fourth quarters of our fiscal year typically result in higher activity and revenues during those quarters. The first and second quarters of our fiscal year typically have lower levels of activity due to adverse weather conditions. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of the Company 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 Securities and Exchange Commission (“SEC”), which permit reduced disclosure for interim periods. The Consolidated Balance Sheet as of September 30, 2019 was derived from audited financial statements for the fiscal year then ended, but does not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“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 and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2019 (the “2019 Form 10-K”). Results for interim periods are not necessarily indicative of the results to be expected for a full fiscal year or for any future period. Management’s Estimates The preparation of the consolidated financial statements in conformity with 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 consolidated financial statements. Estimates are used in accounting for items such as recognition of revenues and cost of revenues, goodwill and other intangible assets, valuation of operating lease right-of-use 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; however, actual results could differ from these 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 included in its 2019 Form 10-K. Emerging Growth Company The Company is an “emerging growth company,” as defined by the Jumpstart Our Business Startups Act (the “JOBS Act”) enacted in April 2012. As an emerging growth company, the Company could have taken advantage of an exemption that would have allowed the Company to wait to comply with new or revised financial accounting standards until the effective date of such standards for private companies. However, the Company has irrevocably elected to opt out of such extended transition period, which means that when a new or revised standard has a different effective date for public and private companies, the Company is required to adopt the standard at the effective date applicable to public companies that are not emerging growth companies. Cash and Cash Equivalents Cash consists principally of currency on hand and demand deposits at commercial banks. Cash equivalents are short-term, highly liquid investments that are both readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents include investments with original maturities of three months or less. The Company maintains demand accounts, money market accounts and certificates of deposit at several banks. From time to time, the account balances have exceeded the maximum available federal deposit insurance coverage limit. The Company has not experienced any losses in such accounts and regularly monitors its credit risk. Contracts Receivable Including Retainage, net Contracts receivable 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 either progress billings or 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, defined as retainage, represent a contract asset and are included on the Consolidated Balance Sheet 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. Contract Assets and Contract Liabilities Billing practices for the Company’s contracts are governed by the contract terms of each project based on (i) progress toward completion approved by the owner, (ii) achievement of milestones or (iii) pre-agreed schedules. Billings do not necessarily correlate with revenues recognized under the cost-to-cost input method (formerly known as the percentage-of-completion method). The Company records contract assets and contract liabilities to account for these differences in timing. The contract asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” arises when the Company recognizes revenues for services performed under its construction projects, but the Company is not yet entitled to bill the customer under the terms of the contract. Amounts billed to customers are excluded from this asset and reflected on the Consolidated Balance Sheet as “Contracts receivable including retainage, net”. Included in costs and estimated earnings on uncompleted contracts are amounts the Company seeks or will seek to collect from customers or others for (i) errors, (ii) changes in contract specifications or design, (iii) contract change orders in dispute, unapproved as to scope and price, or (iv) other customer-related causes of unanticipated additional contract costs (such as claims). Such amounts are recorded to the extent that the amount can be reasonably estimated and recovery is probable. 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 in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company did not recognize any material amounts associated with claims and unapproved change orders during the periods presented. The contract liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents the Company’s obligation to transfer to a customer goods or services for which the Company has been paid by the customer or for which the Company has billed the customer under the terms of the contract. Revenue for future services reflected in this account are recognized, and the liability is reduced, as the Company subsequently satisfies the performance obligation under the contract. Costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts are typically resolved within one year and are not considered significant financing components. 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. The Company monitors concentrations of credit risk associated with these receivables 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 well-known local companies whose reputations are known to management. The Company performs credit checks for significant new customers and generally requires progress payments for significant projects. The Company generally has the ability to file liens against the property if payments are not made on a timely basis. No single customer accounted for more than 10.0% of the Company’s contracts receivable including retainage, net balance at December 31, 2019 or September 30, 2019. Projects performed for various Departments of Transportation accounted for 31.0% and 37.3% of consolidated revenues for each of the three months ended December 31, 2019 and 2018. Two customers accounted for more than 10.0% of consolidated revenues for the three months ended December 31, 2019 and 2018, as follows: % of Consolidated Revenues for the Three Months Ended December 31, 2019 2018 Alabama Department of Transportation 10.8 % 9.6 % North Carolina Department of Transportation 8.5 % 14.2 % Revenues from Contracts with Customers The Company derives all of its revenues from contracts with its customers, predominantly by performing construction services for both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports and commercial and residential developments. These projects are performed for a mix of federal, state, municipal and private customers. In addition, the Company derives revenues from the sale of construction materials, including HMA, aggregates, liquid asphalt cement and ready-mix concrete to third-party public and private customers pursuant to contracts with those customers. The following table reflects, for the periods presented, (i) revenues generated from public infrastructure construction projects and the sale of construction materials to public customers and (ii) revenues generated from private infrastructure construction projects and the sale of construction materials to private customers. % of Consolidated Revenues For the Three Months Ended December 31, 2019 2018 Private 39.4 % 32.1 % Public 60.6 % 67.9 % Revenues derived from construction projects are recognized over time as the Company satisfies its performance obligations by transferring to the customer control of the asset created or enhanced by the project. Recognition of revenues and cost of revenues for construction projects requires significant judgment by management, including, among other things, estimating total costs expected to be incurred to complete a project and measuring progress toward completion. Management reviews contract estimates regularly to assess revisions of estimated costs to complete a project and measurement of progress toward completion. Management believes the Company maintains reasonable estimates based on prior 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 be able to utilize 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 consist of (i) direct costs on contracts, including labor, materials, and amounts payable to subcontractors and (ii) indirect costs related to contract performance, such as insurance, employee benefits, and equipment (primarily depreciation, fuel, maintenance and repairs). Progress toward completion is estimated using the input method, measured by the relationship of total cost incurred through the measurement date to total estimated costs required to complete the project (cost-to-cost method). The Company believes this method best depicts the transfer of goods and services to the customer because it represents satisfaction of the Company’s performance obligation under the contract, which occurs as the Company incurs costs. The Company measures percentage of completion based on the performance of a single performance obligation under its construction projects. Each of the Company’s construction contracts represents a single performance obligation to complete a defined construction project. This is because goods and services promised for delivery to a customer are not distinct, as the customer cannot benefit from any individual portion of the services on its own. All deliverables under a contract are part of a project defined by a customer and represent a series of integrated goods and services that have the same pattern of delivery to the customer and use the same measure of progress toward satisfaction of the performance obligation as the customer’s asset is created or enhanced by the Company. The Company’s obligation is not satisfied until the entire project is complete. Revenue recognized during a reporting period is based on the cost-to-cost input method applied to the total transaction price, including adjustments for variable consideration, such as liquidated damages, penalties or bonuses, related to the timeliness or quality of project performance. The Company includes variable consideration in the estimated transaction price at the most likely amount to which the Company expects to be entitled or the most likely amount the Company expects to incur, in the case of liquidated damages or penalties. Such amounts are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company accounts for changes to the estimated transaction price using a cumulative catch-up adjustment. The majority of the Company’s public construction contracts are fixed unit price contracts. Under fixed unit price contracts, the Company is committed to providing materials or services required by a contract at fixed unit prices (for example, dollars per ton of asphalt placed). The Company’s private customer contracts are primarily fixed total price contracts, also known as lump sum contracts, which require that the total amount of work be performed for a single price. Contract cost is recorded as incurred, and revisions in contract revenue and cost estimates are reflected in the accounting period when known. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract change orders, penalty provisions and final contract settlements, may result in revisions to estimated revenues and cost and are recognized in the period in which the revisions are determined. Change orders are modifications of an original contract that effectively change the existing provisions of the contract and become part of the single performance obligation that is partially satisfied at the date of the contract modification. This is because goods and services promised under change orders are generally not distinct from the remaining goods and services under the existing contract, due to the significant integration of services performed in the context of the contract. Accordingly, change orders are generally accounted for as a modification of the existing contract and single performance obligation. We account for the modification using a cumulative catch-up adjustment. Either the Company or its customers may initiate change orders, which may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work. Revenues derived from the sale of HMA, aggregates, ready-mix concrete, and liquid asphalt are recognized at the point in time at which control of the product is transferred to the customer. Generally, that point in time is when the customer accepts delivery at its facility or receives product in its own transport vehicles from one of the Company’s HMA plants. Upon purchase, the Company generally provides an invoice or similar document detailing the goods transferred to the customer. The Company generally offers payment terms customary in the industry, which typically require payment ranging from point-of-sale to 30 days following purchase. 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 reversed or settled. The effect of a change in tax rates on deferred tax assets and liabilities 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 on a net basis by taxing authority and classified as non-current on the Consolidated Balance Sheet. The Company classifies income tax-related interest and penalties as interest expense and other expenses, respectively. Earnings per Share |
Accounting Standards
Accounting Standards | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards | Accounting Standards Recently Adopted Accounting Pronouncements Accounting Standards Codification (“ASC”) Topic 842 ASC Topic 842, Leases (“Topic 842”) requires lessees to recognize operating lease right-of-use assets and operating lease liabilities on the balance sheet as described below. Prior to adoption of Topic 842, operating leases were expensed on a straight-line basis over the lease term on the Company’s Consolidated Statements of Income, and the Company did not recognize operating lease right-of-use assets and operating lease liabilities on its Consolidated Balance Sheet. The Company adopted Topic 842 effective October 1, 2019 using a modified retrospective transition approach with no prior-period retrospective adjustments. As a result, on the adoption date, the Company recognized (i) a net cumulative decrease to retained earnings of $0.2 million, (ii) additional operating lease right-of-use assets of $9.1 million, (iii) current operating lease liabilities of $2.9 million and (iv) non-current operating lease liabilities of $6.4 million. The Company elected to apply optional practical expedients that allowed the Company to forego reassessments of (i) the classification of leases existing at the date of adoption, (ii) the initial direct costs of any existing leases and (iii) whether any expired or existing contracts are, or contain, leases. In connection with the adoption of Topic 842, the Company implemented several accounting policies relating to the identification and measurement of operating lease right-of-use assets and liabilities. At the inception of a contractual arrangement, the Company determines whether a contract contains a lease by assessing whether the contract conveys to the Company the right to control the use of an identified asset in exchange for consideration over a period of time. If so, the Company measures and records an operating lease liability equal to the present value of the future lease payments. Because most of the Company’s leases do not provide an implicit rate, the Company’s incremental borrowing rate is used in determining the present value of lease payments. The amount of the operating lease right-of-use asset consists of: (i) the amount of the initial measurement of the operating lease liability; (ii) any lease payments made at or before the commencement date, minus any lease incentives received; and (iii) any initial direct costs incurred. The present value calculation may account for options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to apply the recognition requirements to short-term leases (those with terms of 12 months or less) or leases to explore for or use minerals. Instead, for these types of leases, the Company recognizes lease expense in the Consolidated Statements of Income on a straight-line basis over the lease term. |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions On October 1, 2019, a subsidiary of the Company acquired substantially all of the assets of an HMA manufacturing plant and paving company located in Palm City, Florida. The acquired business is expected to benefit from geographic synergies resulting from its proximity to the Company’s preexisting operations in central Florida, including its Okeechobee, Florida HMA plant and office, which the Company acquired in February 2019. The acquisition has been accounted for as a business combination in accordance with ASC Topic 805, Business Combinations . The purchase price of $17.7 million was paid from cash on hand at closing. The provisional allocation of the purchase price to assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, was determined in accordance with the methodology described under Fair Value Measurements in Note 2 - Significant Accounting Policies to the Company’s audited financial statements for the fiscal year ended September 30, 2019. The provisional amounts allocated are $9.6 million of property, plant and equipment, $1.2 million of other current assets and $6.9 million of goodwill. Goodwill, which is deductible for income tax purposes, primarily represents the assembled work force synergies expected to result from the acquisition. Upon finalizing the accounting for this transaction, management expects to ascribe value to other identifiable intangible assets, including customer relationships and customer backlog, which will reduce the preliminary amount allocated to goodwill. The results of operations since the October 1, 2019 acquisition date attributable to this acquisition are included in the consolidated financial statements since the acquisition date and were not material to the Consolidated Statements of Income for the three months ended December 31, 2019. Pro forma results of operations as if the acquisition had been consummated October 1, 2018 would not be material to the Consolidated Statements of Income. |
Contracts Receivable Including
Contracts Receivable Including Retainage, net | 3 Months Ended |
Dec. 31, 2019 | |
Contractors [Abstract] | |
Contracts Receivable Including Retainage, net | Contracts Receivable Including Retainage, net Contracts receivable including retainage, net consisted of the following at December 31, 2019 and September 30, 2019 (in thousands): December 31, 2019 September 30, 2019 (unaudited) Contracts receivable $ 99,095 $ 121,050 Retainage 20,587 19,835 119,682 140,885 Allowance for doubtful accounts (1,134) (1,003) Contracts receivable including retainage, net $ 118,548 $ 139,882 Retainage receivables have been billed, but are not due until contract completion and acceptance by the customer. |
Contract Assets and Liabilities
Contract Assets and Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Liabilities | Contract Assets and Liabilities Costs and estimated earnings compared to billings on uncompleted contracts at December 31, 2019 and September 30, 2019 consisted of the following (in thousands): December 31, 2019 September 30, 2019 (unaudited) Costs on uncompleted contracts $ 997,238 $ 900,880 Estimated earnings to date on uncompleted contracts 131,978 123,256 1,129,216 1,024,136 Billings to date on uncompleted contracts (1,146,233) (1,043,221) Net billings in excess of costs and estimated earnings on uncompleted contracts $ (17,017) $ (19,085) Significant changes to balances of costs and estimated earnings in excess of billings (contract asset) and billings in excess of costs and estimated earnings (contract liability) on uncompleted contracts from September 30, 2019 to December 31, 2019 are presented below (in thousands): Costs and Estimated Earnings in Excess of Billings on Billings in Excess of Costs and Estimated Earnings on Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts September 30, 2019 $ 12,030 $ (31,115) $ (19,085) Changes in revenue billed, contract price or cost estimates $ 2,122 $ (54) $ 2,068 December 31, 2019 (unaudited) $ 14,152 $ (31,169) $ (17,017) |
Property, Plant, and Equipment
Property, Plant, and Equipment | 3 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment at December 31, 2019 and September 30, 2019 consisted of the following (in thousands): December 31, 2019 September 30, 2019 (unaudited) Construction equipment $ 239,486 $ 214,500 Plants 94,743 92,279 Land and improvements 36,325 34,365 Quarry reserves 20,594 20,678 Buildings 16,833 15,458 Furniture and fixtures 5,072 4,864 Leasehold improvements 1,135 1,135 Total property, plant and equipment, gross 414,188 383,279 Accumulated depreciation, depletion and amortization (186,106) (177,927) Construction in progress 1,420 518 Total property, plant and equipment, net $ 229,502 $ 205,870 Depreciation and depletion expense related to property, plant and equipment was $9.4 million and $6.9 million for the three months ended December 31, 2019 and 2018, respectively. |
Debt
Debt | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company maintains various credit facilities from time to time to finance acquisitions, the purchase of real estate, construction equipment, plants and other fixed assets, and for general working capital purposes. This includes, among other things, a credit agreement with BBVA USA as agent, issuing bank and a lender, and certain other lenders (as amended, the “BBVA Credit Agreement”) providing for a $82.0 million term loan (the “Term Loan”) and a $30.0 million revolving credit facility (the “Revolving Credit Facility”). Debt at December 31, 2019 and September 30, 2019 consisted of the following (in thousands): December 31, 2019 September 30, 2019 (unaudited) Long-term debt: BBVA Term Loan $ 52,650 $ 44,700 BBVA Revolving Credit Facility 5,000 5,000 Other long-term debt 464 563 Total long-term debt 58,114 50,263 Deferred debt issuance costs (453) (263) Debt discount (1) (4) Current maturities of long-term debt (8,511) (7,538) Long-term debt, net of current maturities $ 49,149 $ 42,458 |
Equity
Equity | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity Shares of our Class A common stock and Class B common stock are identical in all respects, except with respect to voting rights, conversion rights and transfer restrictions applicable to shares of Class B common stock. The holders of Class A common stock are entitled to one vote per share, and the holders of Class B common stock are entitled to ten votes per share. The holders of Class A common stock and Class B common stock vote together as a single class on all matters submitted to a vote of stockholders, including the election of directors, unless otherwise required by applicable law or the Company’s certificate of incorporation or bylaws. Shares of Class B common stock are convertible into shares of Class A common stock at any time at the option of the holder or upon any transfer, subject to certain limited exceptions. In addition, upon the election of the holders of a majority of the then-outstanding shares of Class B common stock, all outstanding shares of Class B common stock will be converted into shares of Class A common stock. Once converted into shares of Class A common stock, shares of Class B common stock will not be reissued. Class A common stock is not convertible into any other class of the Company’s capital stock. Secondary Offering - Exercise of Over-Allotment Option On October 21, 2019, in conjunction with an underwritten secondary offering of the Company’s Class A common stock, the underwriters of the offering exercised their option to purchase from the selling stockholders in such offering a total of 750,000 shares of the Company’s Class A common stock at a price of $14.25 per share, before selling commissions and discounts. The Company did not receive any proceeds from the offering or the underwriters’ exercise of their over-allotment option. Conversion of Class B Common Stock to Class A Common Stock During the three months ended December 31, 2019, certain stockholders of the Company converted a total of 107,682 shares of Class B common stock into shares of Class A common stock on a one-for-one basis. Following the conversions, there were 32,705,418 shares of Class A common stock and 19,076,327 shares of Class B common stock outstanding. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share As discussed in Note 9 - Equity, the Company has two classes of common stock. The Company has not presented earnings per share under the two-class method, because the earnings per share are the same for both Class A common stock and Class B common stock. The following table summarizes the weighted-average number of basic common shares outstanding and the calculation of basic earnings per share for the periods presented (in thousands, except share and per share amounts): For the Three Months Ended December 31, 2019 2018 Numerator Net income attributable to common shareholders $ 5,461 $ 5,154 Denominator Weighted average number of common shares outstanding, basic 51,489,211 51,414,619 Net income per common share attributable to common shareholders, basic $ 0.11 $ 0.10 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 (in thousands, except share and per share amounts): For the Three Months Ended December 31, 2019 2018 Numerator Net income attributable to common stockholders $ 5,461 $ 5,154 Denominator Weighted average number of basic common shares outstanding, basic 51,489,211 51,414,619 Effect of dilutive securities: Restricted stock grants under 2018 Equity Incentive Plan 120,169 — Weighted average number of diluted common shares outstanding: 51,609,380 51,414,619 Net income per diluted common share attributable to common stockholders $ 0.11 $ 0.10 |
Provision for Income Taxes
Provision for Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Provision for Income Taxes The Company files a consolidated United States federal income tax return and income tax returns in various states. Management evaluated the Company’s tax positions based on appropriate provisions of applicable enacted tax laws and regulations and believes that they are supportable based on their specific technical merits and the facts and circumstances of the respective transactions. The Company’s effective income tax rate for the three months ended December 31, 2019 and 2018 was 19.5% and 24.3%, respectively. The effective income tax rate for the three months ended December 31, 2019 was favorably impacted by the filing of an amended consolidated state return. The Company recorded an amended return benefit of $0.4 million resulting from the utilization of net operating loss carryforwards. |
Related Parties
Related Parties | 3 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties On December 31, 2017, the Company sold an indirect wholly owned subsidiary to an immediate family member of a Senior Vice President of the Company (“Purchaser of Subsidiary”) in consideration for a promissory note in the amount of $1.0 million, which approximated the net book value of the disposed entity. At December 31, 2019, $0.1 million and $0.6 million was reflected on the Company’s Consolidated Balance Sheet within other current assets and other assets, respectively, representing the remaining balances on this note receivable. In connection with this transaction, the Company also received a promissory note from the disposed entity (“Disposed Entity”) on December 31, 2017 in the amount of $1.0 million representing certain accounts payable of the disposed subsidiary that were paid by the Company. At December 31, 2019, $0.1 million and $0.4 million was reflected on the Company’s Consolidated Balance Sheet within other current assets and other assets, respectively, representing the remaining balances on this note receivable. Remaining payments are scheduled to be made in periodic installments during fiscal year 2020 through fiscal year 2026. From time to time, the Company conducts or has conducted business with the following related parties: • Prior to its acquisition by the Company, a current subsidiary of the Company advanced funds to an entity owned by an immediate family member of a Senior Vice President of the Company in connection with a land development project. The obligations of the borrower entity to repay the advances are guaranteed by a separate entity owned by the same family member of the officer. Amounts outstanding under the advances do not bear interest and must be repaid in full no later than March 17, 2021 (“Land Development Project”). • Entities owned by immediate family members of a Senior Vice President of the Company perform subcontract work for a subsidiary of the Company, including trucking and grading services (“Subcontracting Services”). • From time to time, a subsidiary of the Company provides construction services to various companies owned by a family member of a Senior Vice President of the Company (“Construction Services”). • Since June 1, 2014, the Company has been a party to an access agreement with Island Pond Corporate Services, LLC (“Island Pond”), which provides a location for the Company to conduct business development activities from time to time on a property owned by the Executive Chairman of the Company’s Board of Directors. • The Company rents and purchases vehicles from an entity owned by a family member of a Senior Vice President of the Company (“Vehicles”). • Family members of a Senior Vice President of the Company provide consulting services to a subsidiary of the Company (“Consulting Services”). • A subsidiary of the Company leased office space for its Dothan, Alabama office from H&K, Ltd. (“H&K”), an entity partially owned by a Senior Vice President of the Company. The office space was originally leased through early 2020, but the subsidiary terminated the lease in June 2019 and paid $15,000 to H&K as consideration for the early termination. Under the lease agreement, the Company paid a fixed minimum rent per month. • The Company is party to a management services agreement with SunTx, under which the Company pays SunTx $0.25 million per fiscal quarter and reimburses certain travel and other out-of-pocket expenses. The following table presents revenues earned and expenses incurred by the Company during the three months ended December 31, 2019 and 2018, and accounts receivable and payable balances at December 31, 2019 and September 30, 2019, related to transactions with the related parties described above (in thousands): Revenue Earned (Expense Incurred) Accounts Receivable (Payable) For the Three Months Ended December 31, December 31, September 30, 2019 2018 2019 2019 (unaudited) (unaudited) (unaudited) Purchaser of Subsidiary $ — $ — $ 725 $ 756 Disposed Entity $ — $ — $ 462 $ 846 Land Development Project $ — $ — $ 774 $ 774 Subcontracting Services $ (1,578) (1) $ (3,293) (1) $ (316) $ (1,238) Construction Services $ 1,280 $ 113 $ 1,643 $ 2,434 Island Pond $ (80) (2) $ (80) (2) $ — $ — Vehicles $ (253) (2) $ (289) (2) $ — $ — Consulting Services $ (71) (2) $ (67) (2) $ — $ — H&K $ — (2) $ (21) (2) $ — $ — SunTx $ (314) (2) $ (254) (2) $ — $ — (1) Cost is reflected as cost of revenues on the Company’s Consolidated Statements of Income. (2) Cost is reflected as general and administrative expenses on the Company’s Consolidated Statements of Income. |
Settlement Agreement
Settlement Agreement | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Settlement Agreement | Settlement AgreementOn April 19, 2018, certain of the Company’s subsidiaries entered into settlement agreements with a third party arising from a business interruption event not directly related to the Company’s business that the Company does not expect to reoccur (the “Settlement”). The Settlement provides for the Company’s subsidiaries to receive aggregate net payments of approximately $15.7 million 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. The Company recorded a pre-tax gain of $14.8 million during the fiscal year ended September 30, 2018 related to the Settlement. Future payments are reflected on the Consolidated Balance Sheet at December 31, 2019 and September 30, 2019 as other current assets in the amount of $7.8 million. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation During the fiscal year ending September 30, 2019, the Company awarded a total of 292,534 restricted shares of Class A common stock to its non-employee directors under the Construction Partners, Inc. 2018 Equity Incentive Plan in lieu of any cash compensation. The grants are classified as equity awards. The aggregate grant date fair value of these restricted awards was $3.8 million. The grants will vest as to two-thirds of the underlying shares on January 1, 2021 and as to the remaining one-third of the underlying shares on January 1, 2022. During the three months ended December 31, 2019, the Company recorded compensation expense in connection with these grants in the amount of $0.4 million, which is reflected as general and administrative expenses in the Company’s Consolidated Statements of Income. At December 31, 2019, there was approximately $2.8 million of unrecognized compensation expense related to these awards. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases | Leases The Company leases certain facilities, office space, vehicles and equipment. As of December 31, 2019, operating leases under Topic 842 were included in (i) operating lease right-of-use assets, (ii) current portion of operating lease liabilities and (iii) operating lease liabilities, net of current portion on the Company’s Consolidated Balance Sheet in the amounts of $8.5 million, $2.9 million and $5.8 million, respectively. As of December 31, 2019, the Company had no lease contracts that had not yet commenced but created significant rights and obligations. Lease expense was $0.9 million and $2.6 million during the three months ended December 31, 2019 and 2018, respectively, which included operating lease costs related to short-term leases. During the quarter, the Company used cash in the amount of $11.5 million to buy out certain operating lease obligations. As of December 31, 2019, the weighted-average remaining term of the Company’s leases was 8.2 years, and the weighted-average discount rate was 4.00%. As of December 31, 2019, the lease liability was equal to the present value of the remaining lease payments, discounted using the incremental borrowing rate on the Company’s secured debt using a single maturity discount rate, as such rate is not materially different from the discount rate applied to each of the leases in the portfolio. The following table summarizes the Company’s undiscounted lease liabilities outstanding as of December 31, 2019 (in thousands): Fiscal Year Amount Remainder of 2020 $ 2,483 2021 1,999 2022 962 2023 621 2024 596 2025 and thereafter 3,797 Total future minimum lease payments $ 10,458 Less: imputed interest 1,710 Total $ 8,748 As previously disclosed, the Company’s future minimum lease payment obligations as of September 30, 2019 were as follows: Fiscal Year Amount 2020 $ 6,537 2021 3,043 2022 1,041 2023 351 2024 255 Thereafter 58 Total $ 11,285 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe consolidated financial statements include the accounts of the Company 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 Securities and Exchange Commission (“SEC”), which permit reduced disclosure for interim periods. The Consolidated Balance Sheet as of September 30, 2019 was derived from audited financial statements for the fiscal year then ended, but does not include all necessary disclosures required by accounting principles generally accepted in the United States of America (“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 and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2019 (the “2019 Form 10-K”). Results for interim periods are not necessarily indicative of the results to be expected for a full fiscal year or for any future period. |
Management’s Estimates | Management’s Estimates The preparation of the consolidated financial statements in conformity with 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 consolidated financial statements. Estimates are used in accounting for items such as recognition of revenues and cost of revenues, goodwill and other intangible assets, valuation of operating lease right-of-use 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; however, actual results could differ from these estimates. |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined by the Jumpstart Our Business Startups Act (the “JOBS Act”) enacted in April 2012. As an emerging growth company, the Company could have taken advantage of an exemption that would have allowed the Company to wait to comply with new or revised financial accounting standards until the effective date of such standards for private companies. However, the Company has irrevocably elected to opt out of such extended transition period, which means that when a new or revised standard has a different effective date for public and private companies, the Company is required to adopt the standard at the effective date applicable to public companies that are not emerging growth companies. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists principally of currency on hand and demand deposits at commercial banks. Cash equivalents are short-term, highly liquid investments that are both readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents include investments with original maturities of three months or less. The Company maintains demand accounts, money market accounts and certificates of deposit at several banks. From time to time, the account balances have exceeded the maximum available federal deposit insurance coverage limit. The Company has not experienced any losses in such accounts and regularly monitors its credit risk. |
Contracts Receivable Including Retainage, net | Contracts Receivable Including Retainage, net Contracts receivable 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 either progress billings or 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, defined as retainage, represent a contract asset and are included on the Consolidated Balance Sheet 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. |
Contract Assets and Contract Liabilities | Contract Assets and Contract Liabilities Billing practices for the Company’s contracts are governed by the contract terms of each project based on (i) progress toward completion approved by the owner, (ii) achievement of milestones or (iii) pre-agreed schedules. Billings do not necessarily correlate with revenues recognized under the cost-to-cost input method (formerly known as the percentage-of-completion method). The Company records contract assets and contract liabilities to account for these differences in timing. The contract asset, “Costs and estimated earnings in excess of billings on uncompleted contracts,” arises when the Company recognizes revenues for services performed under its construction projects, but the Company is not yet entitled to bill the customer under the terms of the contract. Amounts billed to customers are excluded from this asset and reflected on the Consolidated Balance Sheet as “Contracts receivable including retainage, net”. Included in costs and estimated earnings on uncompleted contracts are amounts the Company seeks or will seek to collect from customers or others for (i) errors, (ii) changes in contract specifications or design, (iii) contract change orders in dispute, unapproved as to scope and price, or (iv) other customer-related causes of unanticipated additional contract costs (such as claims). Such amounts are recorded to the extent that the amount can be reasonably estimated and recovery is probable. 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 in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company did not recognize any material amounts associated with claims and unapproved change orders during the periods presented. The contract liability, “Billings in excess of costs and estimated earnings on uncompleted contracts,” represents the Company’s obligation to transfer to a customer goods or services for which the Company has been paid by the customer or for which the Company has billed the customer under the terms of the contract. Revenue for future services reflected in this account are recognized, and the liability is reduced, as the Company subsequently satisfies the performance obligation under the contract. Costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts are typically resolved within one year and are not considered significant financing components. |
Concentration of Risks | Concentration of RisksFinancial 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. The Company monitors concentrations of credit risk associated with these receivables 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 well-known local companies whose reputations are known to management. The Company performs credit checks for significant new customers and generally requires progress payments for significant projects. The Company generally has the ability to file liens against the property if payments are not made on a timely basis. |
Revenue From Contract with Customers | Revenues from Contracts with Customers The Company derives all of its revenues from contracts with its customers, predominantly by performing construction services for both public and private infrastructure projects, with an emphasis on highways, roads, bridges, airports and commercial and residential developments. These projects are performed for a mix of federal, state, municipal and private customers. In addition, the Company derives revenues from the sale of construction materials, including HMA, aggregates, liquid asphalt cement and ready-mix concrete to third-party public and private customers pursuant to contracts with those customers. The following table reflects, for the periods presented, (i) revenues generated from public infrastructure construction projects and the sale of construction materials to public customers and (ii) revenues generated from private infrastructure construction projects and the sale of construction materials to private customers. % of Consolidated Revenues For the Three Months Ended December 31, 2019 2018 Private 39.4 % 32.1 % Public 60.6 % 67.9 % Revenues derived from construction projects are recognized over time as the Company satisfies its performance obligations by transferring to the customer control of the asset created or enhanced by the project. Recognition of revenues and cost of revenues for construction projects requires significant judgment by management, including, among other things, estimating total costs expected to be incurred to complete a project and measuring progress toward completion. Management reviews contract estimates regularly to assess revisions of estimated costs to complete a project and measurement of progress toward completion. Management believes the Company maintains reasonable estimates based on prior 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 be able to utilize 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 consist of (i) direct costs on contracts, including labor, materials, and amounts payable to subcontractors and (ii) indirect costs related to contract performance, such as insurance, employee benefits, and equipment (primarily depreciation, fuel, maintenance and repairs). Progress toward completion is estimated using the input method, measured by the relationship of total cost incurred through the measurement date to total estimated costs required to complete the project (cost-to-cost method). The Company believes this method best depicts the transfer of goods and services to the customer because it represents satisfaction of the Company’s performance obligation under the contract, which occurs as the Company incurs costs. The Company measures percentage of completion based on the performance of a single performance obligation under its construction projects. Each of the Company’s construction contracts represents a single performance obligation to complete a defined construction project. This is because goods and services promised for delivery to a customer are not distinct, as the customer cannot benefit from any individual portion of the services on its own. All deliverables under a contract are part of a project defined by a customer and represent a series of integrated goods and services that have the same pattern of delivery to the customer and use the same measure of progress toward satisfaction of the performance obligation as the customer’s asset is created or enhanced by the Company. The Company’s obligation is not satisfied until the entire project is complete. Revenue recognized during a reporting period is based on the cost-to-cost input method applied to the total transaction price, including adjustments for variable consideration, such as liquidated damages, penalties or bonuses, related to the timeliness or quality of project performance. The Company includes variable consideration in the estimated transaction price at the most likely amount to which the Company expects to be entitled or the most likely amount the Company expects to incur, in the case of liquidated damages or penalties. Such amounts are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company accounts for changes to the estimated transaction price using a cumulative catch-up adjustment. The majority of the Company’s public construction contracts are fixed unit price contracts. Under fixed unit price contracts, the Company is committed to providing materials or services required by a contract at fixed unit prices (for example, dollars per ton of asphalt placed). The Company’s private customer contracts are primarily fixed total price contracts, also known as lump sum contracts, which require that the total amount of work be performed for a single price. Contract cost is recorded as incurred, and revisions in contract revenue and cost estimates are reflected in the accounting period when known. Changes in job performance, job conditions and estimated profitability, including those changes arising from contract change orders, penalty provisions and final contract settlements, may result in revisions to estimated revenues and cost and are recognized in the period in which the revisions are determined. Change orders are modifications of an original contract that effectively change the existing provisions of the contract and become part of the single performance obligation that is partially satisfied at the date of the contract modification. This is because goods and services promised under change orders are generally not distinct from the remaining goods and services under the existing contract, due to the significant integration of services performed in the context of the contract. Accordingly, change orders are generally accounted for as a modification of the existing contract and single performance obligation. We account for the modification using a cumulative catch-up adjustment. Either the Company or its customers may initiate change orders, which may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work. Revenues derived from the sale of HMA, aggregates, ready-mix concrete, and liquid asphalt are recognized at the point in time at which control of the product is transferred to the customer. Generally, that point in time is when the customer accepts delivery at its facility or receives product in its own transport vehicles from one of the Company’s HMA plants. Upon purchase, the Company generally provides an invoice or similar document detailing the goods transferred to the customer. The Company generally offers payment terms customary in the industry, which typically require payment ranging from point-of-sale to 30 days following purchase. |
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 reversed or settled. The effect of a change in tax rates on deferred tax assets and liabilities 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 on a net basis by taxing authority and classified as non-current on the Consolidated Balance Sheet. The Company classifies income tax-related interest and penalties as interest expense and other expenses, respectively. |
Earnings per Share | Earnings per ShareBasic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share attributable to common stockholders is the same as basic net income per share attributable to common stockholders, but includes dilutive unvested stock awards using the treasury stock method. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Accounting Standards Codification (“ASC”) Topic 842 ASC Topic 842, Leases (“Topic 842”) requires lessees to recognize operating lease right-of-use assets and operating lease liabilities on the balance sheet as described below. Prior to adoption of Topic 842, operating leases were expensed on a straight-line basis over the lease term on the Company’s Consolidated Statements of Income, and the Company did not recognize operating lease right-of-use assets and operating lease liabilities on its Consolidated Balance Sheet. The Company adopted Topic 842 effective October 1, 2019 using a modified retrospective transition approach with no prior-period retrospective adjustments. As a result, on the adoption date, the Company recognized (i) a net cumulative decrease to retained earnings of $0.2 million, (ii) additional operating lease right-of-use assets of $9.1 million, (iii) current operating lease liabilities of $2.9 million and (iv) non-current operating lease liabilities of $6.4 million. The Company elected to apply optional practical expedients that allowed the Company to forego reassessments of (i) the classification of leases existing at the date of adoption, (ii) the initial direct costs of any existing leases and (iii) whether any expired or existing contracts are, or contain, leases. In connection with the adoption of Topic 842, the Company implemented several accounting policies relating to the identification and measurement of operating lease right-of-use assets and liabilities. At the inception of a contractual arrangement, the Company determines whether a contract contains a lease by assessing whether the contract conveys to the Company the right to control the use of an identified asset in exchange for consideration over a period of time. If so, the Company measures and records an operating lease liability equal to the present value of the future lease payments. Because most of the Company’s leases do not provide an implicit rate, the Company’s incremental borrowing rate is used in determining the present value of lease payments. The amount of the operating lease right-of-use asset consists of: (i) the amount of the initial measurement of the operating lease liability; (ii) any lease payments made at or before the commencement date, minus any lease incentives received; and (iii) any initial direct costs incurred. The present value calculation may account for options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to apply the recognition requirements to short-term leases (those with terms of 12 months or less) or leases to explore for or use minerals. Instead, for these types of leases, the Company recognizes lease expense in the Consolidated Statements of Income on a straight-line basis over the lease term. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Concentration Risk | Two customers accounted for more than 10.0% of consolidated revenues for the three months ended December 31, 2019 and 2018, as follows: % of Consolidated Revenues for the Three Months Ended December 31, 2019 2018 Alabama Department of Transportation 10.8 % 9.6 % North Carolina Department of Transportation 8.5 % 14.2 % |
Schedule of Revenue by Major Customers | The following table reflects, for the periods presented, (i) revenues generated from public infrastructure construction projects and the sale of construction materials to public customers and (ii) revenues generated from private infrastructure construction projects and the sale of construction materials to private customers. % of Consolidated Revenues For the Three Months Ended December 31, 2019 2018 Private 39.4 % 32.1 % Public 60.6 % 67.9 % |
Contracts Receivable Includin_2
Contracts Receivable Including Retainage, net (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Contractors [Abstract] | |
Schedule of Contracts Receivable Including Retainage, Net | Contracts receivable including retainage, net consisted of the following at December 31, 2019 and September 30, 2019 (in thousands): December 31, 2019 September 30, 2019 (unaudited) Contracts receivable $ 99,095 $ 121,050 Retainage 20,587 19,835 119,682 140,885 Allowance for doubtful accounts (1,134) (1,003) Contracts receivable including retainage, net $ 118,548 $ 139,882 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Costs and Estimated Earnings Compared to Billings on Uncompleted Contracts | Costs and estimated earnings compared to billings on uncompleted contracts at December 31, 2019 and September 30, 2019 consisted of the following (in thousands): December 31, 2019 September 30, 2019 (unaudited) Costs on uncompleted contracts $ 997,238 $ 900,880 Estimated earnings to date on uncompleted contracts 131,978 123,256 1,129,216 1,024,136 Billings to date on uncompleted contracts (1,146,233) (1,043,221) Net billings in excess of costs and estimated earnings on uncompleted contracts $ (17,017) $ (19,085) Significant changes to balances of costs and estimated earnings in excess of billings (contract asset) and billings in excess of costs and estimated earnings (contract liability) on uncompleted contracts from September 30, 2019 to December 31, 2019 are presented below (in thousands): Costs and Estimated Earnings in Excess of Billings on Billings in Excess of Costs and Estimated Earnings on Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts September 30, 2019 $ 12,030 $ (31,115) $ (19,085) Changes in revenue billed, contract price or cost estimates $ 2,122 $ (54) $ 2,068 December 31, 2019 (unaudited) $ 14,152 $ (31,169) $ (17,017) |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment at December 31, 2019 and September 30, 2019 consisted of the following (in thousands): December 31, 2019 September 30, 2019 (unaudited) Construction equipment $ 239,486 $ 214,500 Plants 94,743 92,279 Land and improvements 36,325 34,365 Quarry reserves 20,594 20,678 Buildings 16,833 15,458 Furniture and fixtures 5,072 4,864 Leasehold improvements 1,135 1,135 Total property, plant and equipment, gross 414,188 383,279 Accumulated depreciation, depletion and amortization (186,106) (177,927) Construction in progress 1,420 518 Total property, plant and equipment, net $ 229,502 $ 205,870 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at December 31, 2019 and September 30, 2019 consisted of the following (in thousands): December 31, 2019 September 30, 2019 (unaudited) Long-term debt: BBVA Term Loan $ 52,650 $ 44,700 BBVA Revolving Credit Facility 5,000 5,000 Other long-term debt 464 563 Total long-term debt 58,114 50,263 Deferred debt issuance costs (453) (263) Debt discount (1) (4) Current maturities of long-term debt (8,511) (7,538) Long-term debt, net of current maturities $ 49,149 $ 42,458 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share | The following table summarizes the weighted-average number of basic common shares outstanding and the calculation of basic earnings per share for the periods presented (in thousands, except share and per share amounts): For the Three Months Ended December 31, 2019 2018 Numerator Net income attributable to common shareholders $ 5,461 $ 5,154 Denominator Weighted average number of common shares outstanding, basic 51,489,211 51,414,619 Net income per common share attributable to common shareholders, basic $ 0.11 $ 0.10 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 (in thousands, except share and per share amounts): For the Three Months Ended December 31, 2019 2018 Numerator Net income attributable to common stockholders $ 5,461 $ 5,154 Denominator Weighted average number of basic common shares outstanding, basic 51,489,211 51,414,619 Effect of dilutive securities: Restricted stock grants under 2018 Equity Incentive Plan 120,169 — Weighted average number of diluted common shares outstanding: 51,609,380 51,414,619 Net income per diluted common share attributable to common stockholders $ 0.11 $ 0.10 |
Related Parties (Tables)
Related Parties (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The following table presents revenues earned and expenses incurred by the Company during the three months ended December 31, 2019 and 2018, and accounts receivable and payable balances at December 31, 2019 and September 30, 2019, related to transactions with the related parties described above (in thousands): Revenue Earned (Expense Incurred) Accounts Receivable (Payable) For the Three Months Ended December 31, December 31, September 30, 2019 2018 2019 2019 (unaudited) (unaudited) (unaudited) Purchaser of Subsidiary $ — $ — $ 725 $ 756 Disposed Entity $ — $ — $ 462 $ 846 Land Development Project $ — $ — $ 774 $ 774 Subcontracting Services $ (1,578) (1) $ (3,293) (1) $ (316) $ (1,238) Construction Services $ 1,280 $ 113 $ 1,643 $ 2,434 Island Pond $ (80) (2) $ (80) (2) $ — $ — Vehicles $ (253) (2) $ (289) (2) $ — $ — Consulting Services $ (71) (2) $ (67) (2) $ — $ — H&K $ — (2) $ (21) (2) $ — $ — SunTx $ (314) (2) $ (254) (2) $ — $ — (1) Cost is reflected as cost of revenues on the Company’s Consolidated Statements of Income. (2) Cost is reflected as general and administrative expenses on the Company’s Consolidated Statements of Income. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Lease Liabilities | The following table summarizes the Company’s undiscounted lease liabilities outstanding as of December 31, 2019 (in thousands): Fiscal Year Amount Remainder of 2020 $ 2,483 2021 1,999 2022 962 2023 621 2024 596 2025 and thereafter 3,797 Total future minimum lease payments $ 10,458 Less: imputed interest 1,710 Total $ 8,748 |
Schedule of Future Lease Liabilities Before Adoption | As previously disclosed, the Company’s future minimum lease payment obligations as of September 30, 2019 were as follows: Fiscal Year Amount 2020 $ 6,537 2021 3,043 2022 1,041 2023 351 2024 255 Thereafter 58 Total $ 11,285 |
Significant Accounting Polici_4
Significant Accounting Policies - Concentration of Risks (Detail) - Revenues - Customer Concentration Risk | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Department of Transportation | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 3100.00% | 3730.00% |
Alabama Department of Transportation | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.80% | 9.60% |
North Carolina Department of Transportation | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 8.50% | 14.20% |
Significant Accounting Polici_5
Significant Accounting Policies - Revenue by Major Customers (Detail) - Revenues - Customer Concentration Risk | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Private | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 39.40% | 32.10% |
Public | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 60.60% | 67.90% |
Accounting Standards (Details)
Accounting Standards (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 8,532 | |
Current portion of operating lease liabilities | 2,930 | |
Operating lease liabilities, net of current portion | $ 5,818 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in retained earnings | $ (222) | |
Operating lease right-of-use assets | 9,100 | |
Current portion of operating lease liabilities | 2,900 | |
Operating lease liabilities, net of current portion | 6,400 | |
Accounting Standards Update 2016-02 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in retained earnings | $ (222) |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 01, 2019 | Dec. 31, 2019 | Sep. 30, 2019 |
Business Acquisition [Line Items] | |||
Goodwill allocation | $ 45,467 | $ 38,546 | |
HMA Manufacturing Plant and Paving Company | |||
Business Acquisition [Line Items] | |||
Cash payment to acquire business | $ 17,700 | ||
Property, plant and equipment allocation | 9,600 | ||
Other current assets allocation | 1,200 | ||
Goodwill allocation | 6,900 | ||
Acquisition related costs | $ 100 |
Contracts Receivable Includin_3
Contracts Receivable Including Retainage, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Contractors [Abstract] | ||
Contracts receivable | $ 99,095 | $ 121,050 |
Retainage | 20,587 | 19,835 |
Contracts receivable including retainage, gross | 119,682 | 140,885 |
Allowance for doubtful accounts | (1,134) | (1,003) |
Contracts receivable including retainage, net | $ 118,548 | $ 139,882 |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities - Cost and Estimated Earnings Compared to Billings on Uncompleted Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Costs on uncompleted contracts | $ 997,238 | $ 900,880 |
Estimated earnings to date on uncompleted contracts | 131,978 | 123,256 |
Costs and estimated earnings to date on uncompleted contracts | 1,129,216 | 1,024,136 |
Billings to date on uncompleted contracts | (1,146,233) | (1,043,221) |
Net billings in excess of costs and estimated earnings on uncompleted contracts | $ (17,017) | $ (19,085) |
Contract Assets and Liabiliti_4
Contract Assets and Liabilities - Reconciliation of Net Billings in Excess of Costs and Estimated Earnings (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | |
Contract asset, beginning balance | $ 12,030 |
Changes in revenue billed, contract price or cost estimates | 2,122 |
Contract asset, ending balance | 14,152 |
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | |
Contract liability, beginning balance | (31,115) |
Changes in revenue billed, contract price or cost estimates | (54) |
Contract liability, ending balance | (31,169) |
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | |
Net billings in excess of costs, beginning balance | (19,085) |
Changes in revenue billed, contract price or cost estimates | 2,068 |
Net billings in excess of costs, Ending balance | $ (17,017) |
Contract Assets and Liabiliti_5
Contract Assets and Liabilities - Narrative (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 456.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 327.2 |
Remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 129.3 |
Remaining performance obligation, expected timing of satisfaction, period |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 414,188 | $ 383,279 |
Accumulated depreciation, depletion and amortization | (186,106) | (177,927) |
Construction in progress | 1,420 | 518 |
Total property, plant and equipment, net | 229,502 | 205,870 |
Construction equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 239,486 | 214,500 |
Plants | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 94,743 | 92,279 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 36,325 | 34,365 |
Quarry reserves | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 20,594 | 20,678 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 16,833 | 15,458 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 5,072 | 4,864 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 1,135 | $ 1,135 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and depletion expense | $ 9.4 | $ 6.9 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 58,114 | $ 50,263 |
Deferred debt issuance costs | (453) | (263) |
Debt discount | (1) | (4) |
Current maturities of long-term debt | (8,511) | (7,538) |
Long-term debt, net of current maturities | 49,149 | 42,458 |
BBVA Term Loan | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 52,650 | 44,700 |
BBVA Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 5,000 | 5,000 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 464 | $ 563 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Oct. 01, 2019 | Sep. 30, 2019 |
BBVA Revolving Credit Facility | |||
Subsequent Event [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 30,000,000 | ||
BBVA Revolving Credit Facility | BBVA Credit Agreement | |||
Subsequent Event [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 54,700,000 | $ 10,000,000 | |
BBVA Term Loan | |||
Subsequent Event [Line Items] | |||
Debt instrument, face amount | $ 82,000,000 | ||
BBVA Term Loan | BBVA Credit Agreement | |||
Subsequent Event [Line Items] | |||
Debt instrument, face amount | 10,000,000 | ||
BBVA Term Loan | BBVA Credit Agreement | Interest Rate Swap | |||
Subsequent Event [Line Items] | |||
Notional amount | $ 5,900,000 | ||
Fixed percentage rate | 158.00% |
Equity (Detail)
Equity (Detail) | Oct. 21, 2019$ / sharesshares | Dec. 31, 2019shares | Sep. 30, 2019shares |
Schedule Of Stockholders Equity [Line Items] | |||
Conversion of Class B common stock to Class A common stock (in shares) | 0 | ||
Class A Common Stock | |||
Schedule Of Stockholders Equity [Line Items] | |||
Shares issued, price per share (in dollars per share) | $ / shares | $ 14.25 | ||
Conversion of Class B common stock to Class A common stock (in shares) | 107,682 | ||
Conversion rate | 1 | ||
Common stock, shares outstanding (in shares) | 32,705,418 | 32,597,736 | |
Class B Common Stock | |||
Schedule Of Stockholders Equity [Line Items] | |||
Conversion of Class B common stock to Class A common stock (in shares) | 107,682 | ||
Common stock, shares outstanding (in shares) | 19,076,327 | 19,184,009 | |
Over-Allotment Option | Class A Common Stock | |||
Schedule Of Stockholders Equity [Line Items] | |||
Issuance of stock (in shares) | 750,000 |
Earnings Per Share - Basic (Det
Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator | ||
Net income attributable to common shareholders | $ 5,461 | $ 5,154 |
Denominator | ||
Weighted average number of basic common shares outstanding (in shares) | 51,489,211 | 51,414,619 |
Net income per common share attributable to common shareholders, basic (in dollars per share) | $ 0.11 | $ 0.10 |
Earnings Per Share - Diluted (D
Earnings Per Share - Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator | ||
Net income attributable to common shareholders | $ 5,461 | $ 5,154 |
Denominator | ||
Weighted average number of basic common shares outstanding (in shares) | 51,489,211 | 51,414,619 |
Effect of dilutive securities: | ||
Weighted average number of diluted common shares outstanding (in shares) | 51,609,380 | 51,414,619 |
Net income per diluted common share attributable to common stockholders (in dollars per share) | $ 0.11 | $ 0.10 |
Restricted Stock | ||
Effect of dilutive securities: | ||
2018 equity incentive plan restricted stock grants (in shares) | 120,169 | 0 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate, percent | 19.50% | 24.30% |
Amended return benefit | $ 0.4 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2017 | |
H&K | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payment to related party | $ 15 | ||
SunTx Capital Partners | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payment to related party | $ 250 | ||
Consideration Note Receivable | |||
Related Party Transaction [Line Items] | |||
Note receivable as consideration for sale of the wholly-owned subsidiary | $ 1,000 | ||
Accounts Payable Note Receivable | |||
Related Party Transaction [Line Items] | |||
Note receivable as consideration for sale of the wholly-owned subsidiary | $ 1,000 | ||
Other Current Assets | Consideration Note Receivable | |||
Related Party Transaction [Line Items] | |||
Note receivable as consideration for sale of the wholly-owned subsidiary | 100 | ||
Other Current Assets | Accounts Payable Note Receivable | |||
Related Party Transaction [Line Items] | |||
Note receivable as consideration for sale of the wholly-owned subsidiary | 100 | ||
Other Assets | Consideration Note Receivable | |||
Related Party Transaction [Line Items] | |||
Note receivable as consideration for sale of the wholly-owned subsidiary | 600 | ||
Other Assets | Accounts Payable Note Receivable | |||
Related Party Transaction [Line Items] | |||
Note receivable as consideration for sale of the wholly-owned subsidiary | $ 400 |
Related Parties - Schedule of R
Related Parties - Schedule of Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Purchaser of Subsidiary | |||
Related Party Transaction [Line Items] | |||
Revenue Earned (Expense Incurred) | $ 0 | $ 0 | |
Accounts Receivable (Payable) | 725 | $ 756 | |
Disposed Entity | |||
Related Party Transaction [Line Items] | |||
Revenue Earned (Expense Incurred) | 0 | 0 | |
Accounts Receivable (Payable) | 462 | 846 | |
Land Development Project | |||
Related Party Transaction [Line Items] | |||
Revenue Earned (Expense Incurred) | 0 | 0 | |
Accounts Receivable (Payable) | 774 | 774 | |
Subcontracting Services | |||
Related Party Transaction [Line Items] | |||
Revenue Earned (Expense Incurred) | (1,578) | (3,293) | |
Accounts Receivable (Payable) | (316) | (1,238) | |
Construction Services | |||
Related Party Transaction [Line Items] | |||
Revenue Earned (Expense Incurred) | 1,280 | 113 | |
Accounts Receivable (Payable) | 1,643 | 2,434 | |
Island Pond | |||
Related Party Transaction [Line Items] | |||
Revenue Earned (Expense Incurred) | (80) | (80) | |
Accounts Receivable (Payable) | 0 | 0 | |
Vehicles | |||
Related Party Transaction [Line Items] | |||
Revenue Earned (Expense Incurred) | (253) | (289) | |
Accounts Receivable (Payable) | 0 | 0 | |
Consulting Services | |||
Related Party Transaction [Line Items] | |||
Revenue Earned (Expense Incurred) | (71) | (67) | |
Accounts Receivable (Payable) | 0 | 0 | |
H&K | |||
Related Party Transaction [Line Items] | |||
Revenue Earned (Expense Incurred) | 0 | (21) | |
Accounts Receivable (Payable) | 0 | 0 | |
SunTx | |||
Related Party Transaction [Line Items] | |||
Revenue Earned (Expense Incurred) | (314) | $ (254) | |
Accounts Receivable (Payable) | $ 0 | $ 0 |
Settlement Agreement (Details)
Settlement Agreement (Details) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Apr. 19, 2018USD ($)installment | |
Loss Contingencies [Line Items] | ||||
Other current assets | $ 16,087 | $ 13,144 | ||
Settlement Agreement | ||||
Loss Contingencies [Line Items] | ||||
Aggregate net payments to be received | $ 15,700 | |||
Number of equal installments payable | installment | 4 | |||
Settlement income | $ 14,800 | |||
Other current assets | $ 7,800 | $ 7,800 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Detail) - Restricted Stock - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate grant date fair value | $ 3.8 | |
Compensation expense | $ 0.4 | |
Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 292,534 | |
Unrecognized compensation expense | $ 2.8 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 8,532 | |
Current portion of operating lease liabilities | 2,930 | |
Operating lease liabilities, net of current portion | 5,818 | |
Lease expense | 900 | |
Lease rent expense | $ 2,600 | |
Cash paid to buy out operating leases | $ 11,500 | |
Weighted-average remaining lease terms | 8 years 2 months 12 days | |
Weighted-average discount rate | 400.00% |
Leases - Future Lease Liabiliti
Leases - Future Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2020 | $ 2,483 |
2021 | 1,999 |
2022 | 962 |
2023 | 621 |
2024 | 596 |
2025 and thereafter | 3,797 |
Total future minimum lease payments | 10,458 |
Less: imputed interest | 1,710 |
Total | $ 8,748 |
Leases - Future Lease Liabili_2
Leases - Future Lease Liabilities Before Adoption (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 6,537 |
2021 | 3,043 |
2022 | 1,041 |
2023 | 351 |
2024 | 255 |
Thereafter | 58 |
Total | $ 11,285 |