PART I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements reflect significant growth in assets and liabilities driven by acquisitions [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $1.02 billion, driven by acquisitions that also increased total liabilities to $589.6 million Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 (unaudited) | September 30, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$1,020,339** | **$806,620** | | Cash and cash equivalents | $26,079 | $57,251 | | Property, plant and equipment, net | $453,973 | $404,832 | | Goodwill | $124,987 | $85,422 | | **Total Liabilities** | **$589,646** | **$397,721** | | Long-term debt, net | $341,173 | $206,175 | | **Total Stockholders' Equity** | **$430,693** | **$408,899** | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Quarterly and nine-month revenues grew significantly, though nine-month net income declined due to rising costs Financial Performance Highlights (in thousands, except per share data) | Metric | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$380,272** | **$261,656** | **$908,621** | **$631,697** | | Gross Profit | $44,250 | $36,617 | $89,711 | $85,283 | | Operating Income | $17,999 | $14,257 | $14,969 | $18,706 | | **Net Income** | **$12,168** | **$9,340** | **$8,261** | **$12,276** | | Diluted EPS | $0.23 | $0.18 | $0.16 | $0.24 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased to $430.7 million, influenced by net income and Class B stock conversions - Total stockholders' equity grew to **$430.7 million** at June 30, 2022, up from **$408.9 million** at the fiscal year-end 2021[15](index=15&type=chunk) - During the nine months ended June 30, 2022, **4,338,924 shares of Class B common stock** were converted into Class A common stock on a one-for-one basis[15](index=15&type=chunk)[76](index=76&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow turned negative while investing and financing activities increased due to acquisitions Cash Flow Summary (in thousands) | Activity | Nine Months Ended June 30, 2022 | Nine Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash (used by) provided by operating activities | $(9,721) | $9,334 | | Net cash used in investing activities | $(158,607) | $(129,530) | | Net cash provided by financing activities | $137,261 | $106,348 | | **Net change in cash and cash equivalents** | **$(31,067)** | **$(13,848)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail seasonality, acquisition impacts, a new credit agreement, and the use of derivative instruments - The company's business is seasonal, with warmer and drier weather in the third and fourth fiscal quarters typically resulting in higher activity and revenues[22](index=22&type=chunk) - During the nine months ended June 30, 2022, the company completed four acquisitions for a total consideration of **$104.7 million**, funded by its Revolving Credit Facility[62](index=62&type=chunk)[63](index=63&type=chunk)[65](index=65&type=chunk) - On June 30, 2022, the company entered into a new Credit Agreement, providing a **$250.0 million Term Loan**, a **$325.0 million Revolving Credit Facility**, and a **$50.0 million** delayed draw term loan facility[73](index=73&type=chunk) - Subsequent to the quarter end, on August 1, 2022, the company acquired Southern Asphalt, Inc in South Carolina for **$25.2 million**, funded by the delayed draw term loan[116](index=116&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth from acquisitions was offset by margin compression from inflation and supply chain issues [Recent Developments and Inflationary Trends](index=36&type=section&id=Recent%20Developments%20and%20Inflationary%20Trends) The company faces significant cost inflation and supply chain disruptions while securing a new credit facility - The company is experiencing upward trends in inflation-sensitive costs, including wages, raw materials, fuel, concrete, and steel, along with supply chain disruptions[122](index=122&type=chunk) - On June 30, 2022, the company entered into a new credit agreement providing a **$250M Term Loan**, a **$325M Revolving Credit Facility**, and a **$50M** delayed draw term loan[123](index=123&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Strong revenue growth was tempered by declining gross margins due to cost inflation and acquisition mix Q3 2022 vs Q3 2021 Performance (in thousands) | Metric | Q3 2022 | Q3 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $380,272 | $261,656 | 45.3% | | Gross Profit | $44,250 | $36,617 | 20.8% | | Gross Margin | 11.6% | 14.0% | -2.4 p.p. | | Net Income | $12,168 | $9,340 | 30.3% | | Adjusted EBITDA | $37,639 | $29,027 | 29.7% | Nine Months 2022 vs 2021 Performance (in thousands) | Metric | Nine Months 2022 | Nine Months 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $908,621 | $631,697 | 43.8% | | Gross Profit | $89,711 | $85,283 | 5.2% | | Gross Margin | 9.9% | 13.5% | -3.6 p.p. | | Net Income | $8,261 | $12,276 | (32.7)% | | Adjusted EBITDA | $71,820 | $63,506 | 13.1% | - The decrease in gross profit margin was attributed to lower margins on projects from recent acquisitions, increased costs of raw materials, fuel, labor, and trucking, and supply chain issues[135](index=135&type=chunk)[144](index=144&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow decreased due to working capital needs, while a new credit facility supports liquidity - Net cash used by operating activities was **$9.7 million** for the nine months ended June 30, 2022, compared to **$9.3 million provided** by operating activities in the prior-year period[153](index=153&type=chunk)[154](index=154&type=chunk) - As of June 30, 2022, the company had **$208.6 million available** under its Revolving Credit Facility and **$50.0 million** under its delayed draw term loan facility[160](index=160&type=chunk) - Fiscal 2022 capital expenditures are projected to be between **$60.0 million and $65.0 million**[164](index=164&type=chunk) Contractual Obligations as of June 30, 2022 (in thousands) | Obligation Type | Total | Remainder of 2022 | 2023 | 2024-Thereafter | | :--- | :--- | :--- | :--- | :--- | | Debt obligations | $355,100 | $3,125 | $12,500 | $339,475 | | Operating leases | $13,154 | $627 | $2,395 | $10,132 | | Purchase commitments | $8,402 | $2,795 | $4,827 | $780 | | Royalty payments | $2,688 | $12 | $255 | $2,421 | [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages commodity, interest rate, and inflation risks through contracts and derivative instruments - The company uses commodity swaps for diesel fuel and natural gas to fix prices for a portion of its estimated usage through fiscal 2024[171](index=171&type=chunk) - The company is exposed to interest rate risk on **$355.1 million of variable rate debt** as of June 30, 2022, with a hypothetical 1% rate change impacting annual interest expense by **$3.6 million**, before considering hedges[176](index=176&type=chunk) - Subsequent to the quarter, on July 1, 2022, the company entered into a new **$300.0 million notional interest rate swap** agreement with a fixed rate of 1.85% through June 2027[115](index=115&type=chunk)[175](index=175&type=chunk) - Inflation risk is managed by adjusting prices on new bids, but the company has limited ability to pass through increased costs for projects already in its backlog[179](index=179&type=chunk)[180](index=180&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that as of June 30, 2022, the company's disclosure controls and procedures were **effective**[181](index=181&type=chunk) - **No material changes** were made to the internal control over financial reporting during the quarter ended June 30, 2022[181](index=181&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation that is not expected to have a material adverse effect - The company is involved in routine litigation and disputes related to workers' compensation, employment, and contract performance, which management does not consider to be **materially adverse**[184](index=184&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last Annual Report on Form 10-K - **No material changes** have occurred in the company's risk factors since the filing of the 2021 Form 10-K[185](index=185&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales or repurchases of its equity securities during the period - The company did not sell any unregistered equity securities during the quarter[186](index=186&type=chunk) - The company did not purchase any of its equity securities during the quarter[187](index=187&type=chunk) [Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the reporting period - None[188](index=188&type=chunk) [Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety violation information is provided as an exhibit to this quarterly report - Mine safety disclosures are provided in **Exhibit 95.1**[189](index=189&type=chunk) [Other Information](index=55&type=section&id=Item%205.%20Other%20Information) The company did not report any other material information for the period - None[190](index=190&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements and certifications

CONSTRUCTION PARTNERS INVESTOR PRESENTATION SPRING 2022 FORWARD-LOOKING STATEMENTS 2 This presentation contains "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Construction Partners, Inc. (the "Company"), its financial condition, its results of operations and the Company's current views based on information currently available. This information is, where applicable, based on estimates, assumptions and analysis that the Company believes, as of ...

Construction Partners, Inc. (NASDAQ:ROAD) Q2 2022 Earnings Conference Call May 6, 2022 10:30 AM ET Company Participants Rick Black - Investor Relations Jule Smith - Chief Executive Officer Alan Palmer - Chief Financial Officer Ned Fleming - Executive Chairman Conference Call Participants Andy Wittmann - Baird Stanley Elliott - Stifel Josh Wilson - Raymond James Adam Thalhimer - Thompson Davis Brent Thielman - D.A. Davidson Operator Greetings and welcome to the Construction Partners, Inc. Second Quarter Earn ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38479 Construction Partners, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 26-0758017 (S ...

Financial Data and Key Metrics Changes - Construction Partners achieved record quarterly revenue of $285 million, a 49% increase compared to the same quarter last year [12] - Adjusted EBITDA in the first quarter was $26.4 million, up 12% compared to the same quarter last year [13][29] - Net income was $5.5 million for the first quarter, compared to net income of $7.9 million for the same quarter last year [28] Business Line Data and Key Metrics Changes - Approximately 30% of the revenue increase was from organic growth, while 19% was from acquisitions [12] - Gross profit was $33 million, an increase of 7.7% compared to the same quarter last year [28] Market Data and Key Metrics Changes - The company reported a record project backlog of $1.09 billion, compared to $966.2 million at September 30, 2021 [31] - The backlog margins are continuing to grow, which is expected to help future profit margins as the backlog is converted [15] Company Strategy and Development Direction - The company is focused on growing services and market share in current markets, with a strategy of both organic and acquisitive growth [12][25] - Construction Partners plans to capitalize on future infrastructure demand created by the $1.2 trillion bipartisan infrastructure bill passed in November [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from inflation, supply chain disruptions, and labor market issues but expressed confidence in managing through these challenges [18][20] - The leadership team is committed to investing in the right people, processes, and technology to support disciplined growth [37][38] Other Important Information - Capital expenditures for the first quarter were $15.1 million, with expectations for the fiscal year to be in the range of $60 million to $65 million [31] - The company is monitoring the allocation of federal and state funds from the infrastructure bill, anticipating meaningful project demand beginning in late 2022 [17] Q&A Session Summary Question: Year-on-year decline in gross margin - Management noted that the decline was due to supply disruptions, labor market issues, and rising energy prices [44] Question: Labor environment risks to full-year guidance - Management acknowledged the labor market as a challenge but indicated that they have factored this uncertainty into their outlook [55] Question: Drivers of strong organic growth - Organic growth was driven by vertical integration of services, expansion into more markets, and strong demand from both private and public sectors [58][60] Question: Anticipated Q2 cash flow - Management expects a much more positive cash flow in Q2 due to revenue growth and collection of receivables [66] Question: Comfort level on leverage and acquisitions - Management is mindful of using leverage smartly and sees it as a tool for growth, with bank covenants allowing up to 3x cash flow [75] Question: North Carolina DOT business recovery - Management reported a healthy recovery in North Carolina, benefiting from a strong program of lettings and recent acquisitions [95] Question: Trajectory of margins - Management expects margins to improve in the second half of the year as higher margin jobs are completed [100]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38479 Construction Partners, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 26-0758017 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-38479 CONSTRUCTION PARTNERS, INC. (Exact name of registrant as specified in its charter) Delaware (State or Oth ...

Construction Partners, Inc. (NASDAQ:ROAD) Q4 2021 Earnings Conference Call November 23, 2021 10:00 AM ET Company Participants Rick Black - Investor Relations Jule Smith - Chief Executive Officer Alan Palmer - Chief Financial Officer Ned Fleming - Executive Chairman Conference Call Participants Stanley Elliott - Stifel Andy Wittmann - Baird Adam Thalhimer - Thompson Davis Zane Karimi - D.A. Davidson Operator Greetings. And welcome to the Construction Partners Inc. Fourth Quarter Earnings Conference Call. At ...

August 6, 2021 Construction Partners, Inc. Announces Fiscal 2021 Third Quarter Results Company Reports Record Backlog of $823 Million Company Revises FY 2021 Outlook Ranges DOTHAN, Ala., Aug. 6, 2021 /PRNewswire/ -- Construction Partners, Inc. (NASDAQ: ROAD) ("CPI" or the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways across five southeastern states, today reported financial and operating results for the fiscal quarter ended June ...

Financial Data and Key Metrics Changes - The company reported revenue of $261.7 million for the third fiscal quarter of 2021, representing a year-over-year increase of 20.6% [21] - Net income decreased to $9.3 million compared to $15.7 million in the same quarter last year [23] - Adjusted EBITDA for the third fiscal quarter was $29 million, down from $32 million in the previous year [23] - The company revised its fiscal year 2021 outlook, expecting revenue in the range of $940 million to $960 million, adjusted net income between $36.9 million to $38.4 million, and adjusted EBITDA between $105 million to $108.3 million [26] Business Line Data and Key Metrics Changes - The company experienced a gross profit of $36.6 million, slightly down from $36.9 million in the same quarter last year [21] - General and administrative expenses increased to $23.2 million from $16.9 million, primarily due to personnel costs and acquisition-related expenses [22] Market Data and Key Metrics Changes - The company reported a record project backlog of $823 million, up from $650 million a year ago and $773.3 million at the end of the previous quarter [25] - The backlog growth was attributed to strong demand across all markets, particularly in North Carolina due to recovering DOT budgets [94][95] Company Strategy and Development Direction - The company announced two significant acquisitions totaling approximately $113 million, aimed at expanding its geographic footprint and enhancing vertical integration [11][20] - The acquisitions included four hot-mix asphalt plants and five aggregate facilities, which are expected to support operations in Alabama and North Carolina [12][14] - The company is focused on investing in people and technology to prepare for future growth, despite short-term profitability headwinds [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth strategy, despite facing supply chain and labor constraints [9][10] - The company anticipates a potential upside of 20% year-over-year increase in infrastructure spending and substantial federal funding increases for the industry [18] - Management believes that supply chain disruptions will normalize in the coming quarters [10] Other Important Information - The company has a stable cash position with $134.5 million in cash and $214 million available under its revolving credit facility [24] - The company is investing in a new ERP system to enhance operational efficiency [79] Q&A Session Summary Question: How is the company addressing inflationary factors and labor market challenges? - Management indicated that inflation is primarily a pass-through cost, with revised input costs being incorporated into bids [33] Question: What is the impact of project delays on backlog and revenue generation? - Management estimated that project delays could represent a 5% revenue headwind, but the backlog remains strong [90] Question: How do recent acquisitions compare to legacy operations in managing labor relations? - Management noted that both legacy and newly acquired operations face similar labor market challenges, but the company is well-positioned to integrate new markets [38] Question: What is the confidence level for achieving revenue growth in the upcoming quarter? - Management expressed confidence in achieving revenue growth due to improvements in backlog and operational performance [46] Question: How will the company manage its M&A strategy moving forward? - Management stated that while they are cautious, they continue to see opportunities for acquisitions and are preparing for future growth [51]