struction Partners(US:ROAD)2025-02-07 21:18Financial Performance - For the three months ended December 31, 2024, the company reported revenues of $561.58 million, an increase from $396.51 million in the same period of 2023, representing a growth of 41.5%[149]. - Adjusted EBITDA for the same period was $68.80 million, up from $40.87 million in 2023, resulting in an Adjusted EBITDA margin of 12.3%, compared to 10.3% in the prior year[149]. - The net income for the three months ended December 31, 2024, was a loss of $3.05 million, compared to a net income of $9.84 million in the same period of 2023[149]. - Adjusted net income for the same period was $13.27 million, compared to $9.84 million in 2023[150]. - Revenues for the three months ended December 31, 2024 increased by $165.1 million, or 41.6%, to $561.6 million from $396.5 million for the same period in 2023[151]. - Gross profit for the three months ended December 31, 2024 increased by $24.7 million, or 47.6%, to $76.6 million from $51.9 million for the same period in 2023[152]. - General and administrative expenses increased by $8.8 million, or 24.9%, to $44.3 million for the three months ended December 31, 2024, primarily due to expenses from acquired businesses[154]. - Acquisition-related expenses rose to $19.6 million for the three months ended December 31, 2024, compared to $0.5 million for the same period in 2023, mainly due to the Lone Star Acquisition[155]. - Net income (loss) decreased by $12.9 million, or 131.0%, resulting in a net loss of $3.1 million for the three months ended December 31, 2024, compared to net income of $9.8 million for the same period in 2023[159]. - Adjusted EBITDA for the three months ended December 31, 2024 was $68.8 million, representing a 68.3% increase from $40.9 million for the same period in 2023[160]. Acquisitions - The company acquired Lone Star Paving, adding 10 HMA plants, four aggregate facilities, and one liquid asphalt terminal during the three months ended December 31, 2024[137]. - On January 2, 2025, the company acquired Overland Corporation, adding eight HMA plants in Oklahoma and expanding its paving services in northern Texas[138]. - The company also acquired Mobile Asphalt Company LLC on February 3, 2025, adding five HMA plants and expanding operations in southwestern Alabama[139]. - The company incurred transformative acquisition expenses of $18.46 million during the three months ended December 31, 2024[149]. Cash Flow and Debt - Cash provided by operating activities, net of acquisitions, was $40.7 million for the three months ended December 31, 2024, down from $60.4 million for the same period in 2023[161]. - Cash used in investing activities increased significantly to $679.0 million for the three months ended December 31, 2024, primarily due to acquisitions[164]. - Cash provided by financing activities was $694.8 million for the three months ended December 31, 2024, mainly from net proceeds of $835.0 million from the Term Loan B[166]. - The company entered into a Term Loan B Credit Agreement for $850 million, fully drawn on November 1, 2024, to finance acquisitions and repay existing debt[140]. - Total debt obligations amount to $1.24 billion, with significant payments due in 2025 and 2026[175]. - The company has a purchase agreement obligation of $116 million due to sellers of Lone Star, payable in 2025[175]. - The company has sufficient operating cash flow and available borrowings to fund operations and capital expenditures for at least the next 12 months[172]. - A hypothetical 1% change in borrowing rates would result in a $12.4 million change in annual interest expense based on variable rate debt[178]. - Projected interest payments for fiscal year 2025 are estimated at $71.5 million based on a weighted average SOFR-based floating rate of 7.03%[180]. - Total contractual obligations amount to $1.41 billion, with significant payments due in 2025 and 2027[175]. - The company may need to seek additional capital if acquisitions require more funds than available cash[173]. Future Outlook - The company expects total capital expenditures for fiscal 2025 to be approximately $130.0 million to $140.0 million[169]. - Future cash flows are subject to inflation and supply chain constraints, which may impact capital expenditures[173]. - The company has $6.6 million in aggregate letters of credit and future purchase commitments of $3.3 million for diesel fuel and $0.4 million for natural gas[176]. - The fair value of the outstanding interest rate swap contract is $15.6 million as of December 31, 2024[178].