Page 1

EX - 99.1 3 exhibit991_earnings033121.htm EX - 99.1 Exhibit 99.1 CPI CONSTRUCTION PARTNERS INC . A LEADING INFRASTRUCTURE COMPANY NEWS RELEASE Construction Partners , Inc. Announces Fiscal 2021 Second Quarter Results Company Reports Record Backlog of $ 773 Million - Company Maintains Fiscal 2021 Outlook DOTHAN , AL , May 7 , 2021 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 March 31 , 2021 . Fred J. ( Jule ) Smith , III , the Company's President and Chief Executive Officer , said , “ In the second fiscal quarter , revenue grew 6.2 % compared to the second fiscal quarter last year . While adverse weather caused significant project delays in the second quarter , we plan to make up that volume in the second half of our fiscal year . As we have stated before , historically we have generated approximately 40 % of our annual revenue in the first half of the fiscal year and approximately 60 % in the second half . Halfway through fiscal 2021 , we are roughly in line with our historical pattern , even with the weather delays . " More importantly , we are very pleased with our record high project backlog of $ 773.3 million at the end of the quarter . As we move into the seasonally stronger second half of our fiscal year , we continue to see strength in infrastructure funding programs and project lettings across our markets . In light of these positive conditions , we are maintaining our outlook for fiscal 2021. " Revenues for the second fiscal quarter of 2021 were $ 179.1 million , an increase of 6.2 % compared to the second quarter of last year . Gross profit was $ 18.1 million in the second fiscal quarter of 2021 , a decrease of 10.4 % compared to the second fiscal quarter of last year . General and administrative expenses were $ 24.5 million ( consisting of a nonrecurring $ 3.2 million legal settlement unrelated to the Company's core operations , associated legal expenses of $ 0.7 million , and $ 20.6 million of other general and administrative expenses ) , compared to general and administrative expenses of $ 16.8 million in the second fiscal quarter of 2020 and $ 20.1 million in the first fiscal quarter of 2021. The settlement and associated legal expenses during the quarter related to claims arising out of a former stockholder's sale of shares of the Company's common stock in a private transaction prior to the Company's initial public offering . In addition to the legal and settlement expenses , the sequential increase in general and administrative expenses was primarily due to payroll increases related to acquisitions completed during the first fiscal quarter of 2021 , new corporate positions and compensation initiatives . On a GAAP basis , the Company had a net loss of $ 4.9 million in the second fiscal quarter , compared to net income of $ 1.5 million in the second fiscal quarter of 2020. On a non - GAAP basis , adjusted net loss ( ¹ ) was $ 2.0 million in the second fiscal quarter of 2021 , compared to adjusted net income of $ 1.6 million in the second fiscal quarter of 2020 . Adjusted EBITDA ( ¹ ) for the second fiscal quarter of 2021 , which includes the nonrecurring legal and settlement expenses described above , was $ 11.0 million , compared to $ 14.3 million for the second fiscal quarter of last year . Project backlog at March 31 , 2021 was $ 773.3 million , compared to $ 665.6 at December 31 , 2020 and $ 579.1 million at March 31 , 2020 . Smith continued , “ We extended our commitment to investing in our people during the quarter as we continue to prepare for future acquisition growth . The most critical component of our success has been , and will continue to be , our people . Acquiring , integrating and enhancing new construction operations , facilities and employees in new markets is essential to our growth strategy . In the past six months , we have added 13 hot - mix asphalt plants and more than 300 employees through acquisitions . Acquired operations frequently create near- term margin headwinds as legacy backlog projects are completed at lower margins . However , historically , within twelve to eighteen months post - acquisition , we have been able to raise project margins and expand market share . As a consolidator in our space , we continue to see tremendous growth opportunities . " Ned N. Fleming , III , the Company's Executive Chairman , stated , “ CPI is well positioned for growth in a highly fragmented market with strong industry demand and growing infrastructure funding . Through our proven strategy , we expect to improve ( 1 ) Adjusted net income ( loss ) and Adjusted EBITDA are financial measures not presented in accordance with generally accepted accounting principles ( " GAAP " ) . Please see " Reconciliation of Non - GAAP Financial Measures " at the end of this press release .