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EX - 99.1 2 exhibit991_earnings063021.htm EX - 99.1 CPI CONSTRUCTION PARTNERS INC . A LEADING INFRASTRUCTURE COMPANY Exhibit 99.1 NEWS RELEASE Construction Partners , Inc. Announces Fiscal 2021 Third Quarter Results Company Reports Record Backlog of $ 823 Million Company Revises FY 2021 Outlook Ranges DOTHAN , AL , August 6 , 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 June 30 , 2021 . Fred J. ( Jule ) Smith , III , the Company's President and Chief Executive Officer , said , “ Our business performed very well in the quarter , generating top - line revenue growth of more than 20 % versus the comparable prior year quarter . Across our footprint , we continued to win new project work , and importantly , we grew backlog to a record $ 823 million by the end of the third quarter . This growth of backlog , combined with a bright outlook for infrastructure funding at both the state and federal levels , has compelled us to invest this fiscal our people and technology to prepare for and support future growth . While this investment for future growth adversely impacts profitability in the short term , we see these investments as vital as we continue to scale the business and grow through organic expansion and acquisition opportunities . " year in Revenues for the third fiscal quarter of 2021 were $ 261.7 million , an increase of 20.6 % compared to the third fiscal quarter of last year . Gross profit was $ 36.6 million in the third fiscal quarter of 2021 , compared to $ 36.9 million in the third fiscal quarter of last year . General and administrative expenses were $ 23.2 million for the third fiscal quarter of 2021 , compared to $ 16.9 million in the third fiscal quarter of last year . The increase in general and administrative expenses was primarily due to additional payroll costs associated with acquisitions completed during fiscal 2021 , as well as compensation - related initiatives . Net income was $ 9.3 million for the third fiscal quarter of 2021 , compared to net income of $ 15.8 million in the third fiscal quarter of last year . Adjusted EBITDA ( ¹ ) for the third fiscal quarter of 2021 was $ 29.0 million , compared to $ 32.0 million for the third fiscal quarter of last year . Project backlog was $ 822.9 million at June 30 , 2021 , compared to $ 651.2 million at June 30 , 2020 and $ 773.3 million at March 31 , 2021 . Smith continued , “ Customer demand , project funding , and bidding activity remained strong throughout the quarter . However , similar to many construction and infrastructure businesses , we experienced project delays due to supply chain and labor constraints affecting CPI operations as well as our subcontractors and vendors . While CPI has a stable and experienced local workforce in our markets and strong purchasing power across our company , we are not immune to these current industry constraints . We believe supply chain disruptions will subside in the coming quarters as we move through fiscal 2022. Today , we have revised our fiscal 2021 financial outlook to reflect these transitory issues ; however , our long - term growth strategy remains firmly intact . ” Revised Fiscal Year 2021 Outlook The Company revised its outlook for fiscal year 2021 with regard to revenue , Adjusted net income and Adjusted EBITDA , as follows : • Revenue of $ 940 million to $ 960 million , compared to the prior range of $ 950 million to $ 1.0 billion . Revenue for fiscal year 2020 was $ 785.7 million . Adjusted net income ( ¹ ) of $ 36.9 million to $ 38.4 million , compared to the prior range for net income of $ 42.0 million to $ 46.5 million . Net income for fiscal year 2020 was $ 40.3 million . ( 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 .