Financial Data and Key Metrics Changes - Revenue for Q2 2019 was $164.3 million, an increase of 38.2% compared to the same quarter last year [8] - Gross profit was $19.8 million, up 44% year-over-year [9] - Adjusted EBITDA increased to $13.9 million, a rise of 74.2% compared to the previous year [9] - Net income was $4.2 million, down from the same period last year, but adjusted for a nonrecurring settlement, it was up $3.7 million [25] - Earnings per share decreased to $0.08 from $0.27, impacted by the legal settlement last year [26] - Adjusted EBITDA margin improved to 8.5% from 6.7% year-over-year [26] Business Line Data and Key Metrics Changes - The company reported strong project opportunities across all markets, with no specific geographic market standing out [43] - The backlog grew to $584.8 million, with approximately $380 million expected to be completed during the current fiscal year [9][32] - The company continues to focus on maintenance-type projects, which are recurring and supported by increased state funding [47] Market Data and Key Metrics Changes - Alabama's recent gas tax increase is expected to generate approximately $320 million in additional annual funding for infrastructure projects [13] - The company operates in fast-growing southeastern states, benefiting from ongoing road repair projects and increased public funding [19] Company Strategy and Development Direction - The company is pursuing growth through strategic acquisitions and greenfield expansions [12] - Recent acquisitions include a liquid asphalt terminal and an asphalt production company, enhancing vertical integration and geographic presence [11] - The company aims to maximize efficiencies through scale and flexibility in operations [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable project demand and funding environment, with a strong growth outlook for 2019 and beyond [22] - The company anticipates achieving margin improvements through the use of the new asphalt terminal [27] - The effective tax rate for 2019 is expected to be approximately 25%, compared to 17.2% in the previous fiscal year [38] Other Important Information - The company has a strong balance sheet with $61.9 million in cash and a debt-to-EBITDA ratio of 0.88 [33] - Capital expenditures for fiscal 2019 are expected to be in the range of $38 million to $42 million [35] Q&A Session Summary Question: Where were you seeing the upside in the quarter? - Management noted that all markets had favorable working conditions, contributing to performance [43] Question: What are you seeing on the private side of the business? - The company has a strong backlog in commercial private work, having intentionally lowered residential work [44] Question: Can you break down the public business? - The core business remains maintenance-type projects, with no significant changes in large project participation [47] Question: What is the outlook for labor and freight costs? - Labor costs are stable, and while trucking is tight, the company does not foresee significant issues [50] Question: How confident are you in capturing the remaining work needed for the year? - Management expressed confidence, noting that the remaining backlog is comparable to previous years [54] Question: What are the opportunities for future growth? - The company is seeing activity in potential acquisitions and greenfield expansions, remaining selective in its approach [56] Question: What was the rationale behind the conversion of Class B shares to Class A shares? - The conversion was aimed at qualifying for key indices, which is considered beneficial for the company [61] Question: What is the current state of the balance sheet and liquidity for potential transactions? - The company has substantial liquidity and could incur additional debt while maintaining a strong balance sheet [75] Question: Are there any state legislative initiatives being tracked? - All states the company operates in have passed funding increases in recent years, with built-in escalators for future growth [77]

Raymond James Institutional Investors Conference March 2019 NASDAQ: ROAD FORWARD-LOOKING STATEMENTS This presentation contains "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Construction Partners, Inc. (the "Company" or "CPI"), 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 ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements show a decline in net income and operating cash flow, with details on ASC 606 adoption Consolidated Balance Sheets (in thousands) | | December 31, 2018 (unaudited) | September 30, 2018 | | :--- | :--- | :--- | | **Total current assets** | $240,683 | $267,455 | | **Total assets** | $467,812 | $496,310 | | **Total current liabilities** | $104,645 | $134,541 | | **Total liabilities** | $163,189 | $196,841 | | **Total stockholders' equity** | $304,623 | $299,469 | Consolidated Statements of Income (in thousands, except per share data) | | For the Three Months Ended December 31, | | :--- | :--- | :--- | | | **2018** | **2017** | | **Revenues** | $154,327 | $150,421 | | **Gross profit** | $21,128 | $22,798 | | **Operating income** | $7,031 | $10,517 | | **Net income** | $5,154 | $10,996 | | **Basic and diluted EPS** | $0.10 | $0.26 | Consolidated Statements of Cash Flows (in thousands) | | For the Three Months Ended December 31, | | :--- | :--- | :--- | | | **2018** | **2017** | | **Net cash provided by operating activities** | $1,211 | $19,490 | | **Net cash used in investing activities** | ($5,070) | ($9,318) | | **Net cash used in financing activities** | ($3,711) | ($7,500) | | **Net change in cash and cash equivalents** | ($7,570) | $2,672 | - The company adopted the new revenue recognition standard **ASC 606** on October 1, 2018, with no material impact on opening retained earnings[48](index=48&type=chunk) - Unsatisfied performance obligations (backlog) totaled **$505.0 million** at December 31, 2018, with **$391.5 million** expected as revenue in fiscal year 2019[54](index=54&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a 2.6% revenue increase from acquisition, but a 53.1% decline in net income due to lower gross profit and higher expenses Results of Operations Comparison (in thousands) | | Three Months Ended Dec 31, 2018 | Three Months Ended Dec 31, 2017 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $154,327 | $150,421 | $3,906 | 2.6% | | **Gross profit** | $21,128 | $22,798 | ($1,670) | (7.3)% | | **Operating income** | $7,031 | $10,517 | ($3,486) | (33.1)% | | **Net income** | $5,154 | $10,996 | ($5,842) | (53.1)% | | **Adjusted EBITDA** | $14,712 | $16,511 | ($1,799) | (10.9)% | - Revenue growth was driven by **$16.3 million** from the Scruggs acquisition, but organic revenue declined due to adverse weather conditions[86](index=86&type=chunk) - Gross profit decreased due to lower HMA production and equipment utilization, leading to under-absorption of fixed costs[87](index=87&type=chunk) - General and administrative expenses increased by **16.1%** to **$14.4 million**, driven by the Scruggs acquisition and public company costs[88](index=88&type=chunk) - The effective tax rate was **24.3%** compared to **(7.8)%** in the prior-year quarter, which included a **$3.5 million** tax benefit from the Tax Cuts and Jobs Act[90](index=90&type=chunk) - Total capital expenditures for fiscal year 2019 are projected to be approximately **$39.0 million to $42.0 million**[103](index=103&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is not required to provide quantitative and qualitative market risk disclosures - The company, as a smaller reporting entity, is exempt from providing quantitative and qualitative market risk disclosures[111](index=111&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective due to material weaknesses in IT general controls and financial reporting processes - Management concluded that disclosure controls and procedures were not effective at the reasonable assurance level[113](index=113&type=chunk) - Material weaknesses were identified in internal control over financial reporting, including IT general controls and financial reporting processes[114](index=114&type=chunk) - Remediation measures are underway, including hiring staff, engaging third-party assistance, and formalizing processes[115](index=115&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation, which management believes will not materially impact its financial condition or operations - The company is subject to routine litigation, disputes, and government inquiries related to its business activities[118](index=118&type=chunk) - Management believes no pending litigation will have a material adverse effect on the company's financial position[118](index=118&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the company's 2018 Form 10-K for a comprehensive discussion of risk factors affecting the business - Readers are referred to the company's 2018 Form 10-K for a comprehensive discussion of risk factors[119](index=119&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no unregistered equity sales or repurchases, and IPO proceeds use remains materially unchanged during the quarter - No unregistered sales of equity securities occurred during the reporting period[120](index=120&type=chunk) - The planned use of IPO proceeds remains materially unchanged[121](index=121&type=chunk) - The company did not repurchase any of its equity securities during the quarter[122](index=122&type=chunk) [Defaults Upon Senior Securities](index=30&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[123](index=123&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures, as required by the Dodd-Frank Act, are included in Exhibit 95.1 of this quarterly report - Mine safety disclosures required by the Dodd-Frank Act are included in Exhibit 95.1[124](index=124&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) No other information is reported for this item - None[125](index=125&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO/CFO certifications and mine safety disclosures - The report lists all filed exhibits, including corporate governance documents and CEO/CFO certifications[126](index=126&type=chunk)