Exhibit 99.1
Construction Partners, Inc. Announces
Fiscal 2020 Fourth Quarter and Year-End Results
Company Provides Fiscal 2021 Outlook
DOTHAN, AL, December 11, 2020 Construction Partners, Inc. (NASDAQ: ROAD) (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 its fourth quarter and fiscal year ended September 30, 2020.
Key Metrics: Fiscal Year 2020 Compared to Fiscal Year 2019
Revenue was $785.7 million, up 0.3%
Gross profit was $122.2 million, up 3.6%
Net income was $40.3 million, down 6.5%
Adjusted EBITDA(1) was $98.4 million, up 6.6%
Adjusted EBITDA margin(1) was 12.5%, up 70 bps
Project backlog at September 30, 2020 was $608.1 million, compared to $531.6 million at September 30, 2019.
Charles E. Owens, the Company’s President and Chief Executive Officer, said, “We are pleased with our strong profitability in fiscal 2020. Our successful year was primarily driven by our disciplined approach to productivity at the project level and bidding processes, effective utilization of crews and equipment, vertical integration synergies and lower fuel costs. While 2020 presented economic and business challenges, primarily stemming from the global pandemic, I am extremely proud of our employees and the organization’s resiliency.
Owens continued, “Heading into fiscal year 2021, our organization is well-positioned for continued growth. We see strength in the state funding programs across our geographic footprint, where the demand for road repair and maintenance are ongoing. We also have expanded with the acquisition of 13 hot-mix asphalt plants in the past 10 months, and we now operate 46 hot-mix asphalt plants, representing distinct markets across our five southeastern states. Based on this increased hot-mix asphalt plant coverage, sustained state funding programs, CPI’s backlog and near-term visibility of the business, we are initiating our fiscal 2021 outlook indicating strong growth in the coming year.”
Fiscal Year 2021 Outlook
The Company announced its outlook for fiscal year 2021 with regard to revenue, net income and Adjusted EBITDA, as follows:
Revenue of $950 million to $1.0 billion
Net income of $42.0 million to $46.5 million
Adjusted EBITDA (1) of $109.0 million to $118.0 million
Ned N. Fleming, III, the Company’s Executive Chairman, stated, “Our management team and leaders across the company did an outstanding job of navigating through this incredibly difficult year. They remained focused on our strategy of profitable growth and effectively implemented new safety protocols as they managed disruptions from COVID-19. In addition, recent acquisitions demonstrate the Company’s position as a premier consolidator in a highly fragmented industry. We remain
(1) Adjusted EBITDA and Adjusted EBITDA margin 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.

confident about organic and acquisitive growth opportunities as the team continues to execute on short- and longer-term strategies.”
Conference Call
The Company will conduct a conference call today at 9:00 a.m. Central Time to discuss financial and operating results for the quarter and fiscal year ended September 30, 2020. To access the call live by phone, dial (412) 902-0003 and ask for the Construction Partners call at least 10 minutes prior to the start time. A telephonic replay will be available through December 18, 2020 by calling (201) 612-7415 and using passcode 13712186#. A webcast of the call will also be available live and for later replay on the Company’s Investor Relations website at www.constructionpartners.net.
About Construction Partners, Inc.
Construction Partners, Inc. is a vertically integrated civil infrastructure company operating across five southeastern states, with 46 hot-mix asphalt plants, nine aggregate facilities and one liquid asphalt terminal. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The majority of the Company’s public projects are maintenance-related. Private sector projects include paving and sitework for office and industrial parks, shopping centers, local businesses and residential developments. To learn more, visit www.constructionpartners.net.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as “may,” “will,” “expect,” “should,” “anticipate,” “intend,” “project,” “outlook,” “believe” and “plan.” The forward-looking statements contained in this press release include, without limitation, statements related to financial projections, future events, business strategy, future performance, future operations, backlog, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management. These and other forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Important factors could cause actual results to differ materially from those expressed in the forward-looking statements, including, among others: our ability to successfully manage and integrate acquisitions; failure to realize the expected economic benefits of acquisitions, including future levels of revenues being lower than expected and costs being higher than expected; failure or inability to implement growth strategies in a timely manner; declines in public infrastructure construction and reductions in government funding, including the funding by transportation authorities and other state and local agencies; risks related to our operating strategy; competition for projects in our local markets; risks associated with our capital-intensive business; government requirements and initiatives, including those related to funding for public or infrastructure construction, land usage and environmental, health and safety matters; unfavorable economic conditions and restrictive financing markets; our ability to obtain sufficient bonding capacity to undertake certain projects; our ability to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us; the cancellation of a significant number of contracts or our disqualification from bidding for new contracts; risks related to adverse weather conditions; our substantial indebtedness and the restrictions imposed on us by the terms thereof; our ability to maintain favorable relationships with third parties that supply us with equipment and essential supplies; our ability to retain key personnel and maintain satisfactory labor relations; property damage, results of litigation and other claims and insurance coverage issues; risks related to our information technology systems and infrastructure; our ability to maintain effective internal control over financial reporting; risks from the COVID-19 pandemic, and the risks, uncertainties and factors set forth under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and its subsequently filed Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable law.

Rick Black / Ken Dennard
Dennard Lascar Investor Relations
(713) 529-6600
- Financial Statements Follow –

Construction Partners, Inc.
Consolidated Statements of Income
(in thousands, except share and per share data)

For the Three Months Ended September 30,For the Fiscal Year Ended September 30,
$224,645 $237,317 $785,679 $783,238 
Cost of revenues
183,653 198,385 663,467 665,285 
Gross profit
40,992 38,932 122,212 117,953 
General and administrative expenses
Gain on sale of equipment, net
482 824 1,616 1,909 
Operating income
23,663 22,202 55,231 57,138 
Interest expense, net
Other income
379 120 336 416 
Income before provision for income taxes and earnings from investment in joint venture
23,619 21,970 52,454 55,693 
Provision for income taxes
6,138 5,829 12,760 13,909 
Earnings from investment in joint venture
71 412 603 1,337 
Net income
$17,552 $16,553 $40,297 $43,121 
Net income per share attributable to common stockholders:
$0.34 $0.32 $0.78 $0.84 
$0.34 $0.32 $0.78 $0.84 
Weighted average number of common shares outstanding:
51,489,211 51,440,564 51,489,211 51,421,159 
51,673,510 51,457,906 51,636,934 51,427,220 

Construction Partners, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)

September 30,
Current assets:
       Cash and cash equivalents$148,316 $80,619 
       Contracts receivable including retainage, net131,770 139,882 
       Costs and estimated earnings in excess of billings on uncompleted contracts7,873 12,030 
       Inventories38,561 34,291 
       Prepaid expenses and other current assets5,041 13,144 
Total current assets331,561 279,966 
Property, plant and equipment, net237,230 205,870 
Operating lease right-of-use assets7,383 — 
Goodwill46,348 38,546 
Intangible assets, net3,224 3,434 
Investment in joint venture198 496 
Other assets1,784 2,284 
Deferred income taxes, net386 1,173 
Total assets$628,114 $531,769 
Current liabilities:
       Accounts payable$64,732 $70,442 
       Billings in excess of costs and estimated earnings on uncompleted contracts33,704 31,115 
       Current portion of operating lease liabilities2,046 — 
       Current maturities of long-term debt13,000 7,538 
       Accrued expenses and other current liabilities22,347 19,078 
Total current liabilities135,829 128,173 
Long-term liabilities:
       Long-term debt, net of current maturities79,053 42,458 
       Operating lease liabilities, net of current portion5,554 — 
       Deferred income taxes, net14,003 11,480 
       Other long-term liabilities8,480 6,108 
Total long-term liabilities107,090 60,046 
Total liabilities242,919 188,219 
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001; 10,000,000 shares authorized at September 30, 2020 and September 30, 2019 and no shares issued and outstanding— — 
Class A common stock, par value $0.001; 400,000,000 shares authorized, 33,875,884 shares issued and outstanding at September 30, 2020, and 32,597,736 shares issued and outstanding at September 30, 201934 33 
Class B common stock, par value $0.001; 100,000,000 shares authorized, 20,828,813 shares issued and 17,905,861 shares outstanding at September 30, 2020, and 22,106,961 shares issued and 19,184,009 shares outstanding at September 30, 201921 22 
Additional paid-in capital245,022 243,452 
Treasury stock, at cost, 2,922,952 shares of Class B common stock, par value $0.001(15,603)(15,603)
Retained earnings155,721 115,646 
Total stockholders’ equity385,195 343,550 
Total liabilities and stockholders’ equity$628,114 $531,769 

Construction Partners, Inc.
Consolidated Statements of Cash Flows
(in thousands)
For the Fiscal Year Ended
September 30,
Cash flows from operating activities:
     Net income$40,297 $43,121 
     Adjustments to reconcile net income to net cash provided by operating activities:
          Depreciation, depletion and amortization of long-lived assets39,301 31,231 
          Amortization of deferred debt issuance costs170 109 
          Loss on derivative instruments1,900 565 
          Provision for bad debt705 995 
          Gain on sale of equipment(1,616)(1,909)
          Equity-based compensation expense1,570 957 
          Earnings from investment in joint venture(603)(1,337)
          Distribution of earnings from investment in joint venture540 — 
          Deferred income taxes3,310 2,997 
          Other non-cash adjustments(5)— 
Changes in operating assets and liabilities:
     Contracts receivable including retainage, net7,407 (20,586)
     Costs and estimated earnings in excess of billings on uncompleted contracts4,157 (2,696)
     Prepaid expenses and other current assets8,103 993 
     Other assets500 7,986 
     Accounts payable(5,710)6,932 
     Billings in excess of costs and estimated earnings on uncompleted contracts2,589 (7,623)
     Accrued expenses and other current liabilities3,086 2,117 
     Other long-term liabilities655 248 
           Net cash provided by operating activities, net of acquisitions105,173 55,274 
Cash flows from investing activities:
     Purchases of property, plant and equipment(52,574)(42,479)
     Acquisition of liquid asphalt terminal assets— (10,848)
     Proceeds from sale of equipment3,041 4,456 
     Business acquisitions, net of cash acquired(30,191)(13,854)
     Distributions received from investment in joint venture361 2,500 
          Net cash used in investing activities(79,363)(60,225)
Cash flows from financing activities:
     Proceeds from issuance of long-term debt, net of debt issuance costs and discount72,299 — 
     Principal payments of long-term debt(30,412)(13,001)
     Payment of treasury stock purchase obligation— (569)
     Proceeds from sale of stock— 
          Net cash provided by (used in) financing activities41,887 (13,567)
          Net change in cash and cash equivalents67,697 (18,518)
Cash and cash equivalents:
     Beginning of period80,619 99,137 
     End of period$148,316 $80,619 
Supplemental cash flow information:
     Cash paid for interest$2,041 $2,639 
     Cash paid for income taxes$9,905 $9,119 
     Cash paid for operating lease liabilities$3,228 $— 
     Non-cash items:
         Operating lease right-of-use assets obtained in exchange for operating lease liabilities$1,516 $— 
          Property, plant and equipment financed with accounts payable$2,761 $904 

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (iii) depreciation, depletion and amortization of long-lived assets, (iv) equity-based compensation expense, (v) loss on extinguishment of debt and (vi) certain management fees and expenses, and excludes income recognized in connection with a legal settlement between certain of the Company’s subsidiaries and a third party that did not directly relate to the Company’s business and that the Company does not expect to reoccur. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues for each period. Adjusted EBITDA and Adjusted EBITDA Margin are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP as an indicator of our operating performance. Management uses Adjusted EBITDA and Adjusted EBITDA Margin as key performance indicators, and we believe they are measures frequently used by securities analysts, investors and other parties to evaluate companies in our industry. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP.

Our calculation of Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to similarly named measures reported by other companies. Potential differences may include differences in capital structures, tax positions and the age and book depreciation of intangible and tangible assets.

The following tables present a reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to Adjusted EBITDA, and the calculation of Adjusted EBITDA Margin for each of the periods presented:
Construction Partners, Inc.
Net Income to Adjusted EBITDA Reconciliation
Fiscal Year Ended September 30, 2020 and 2019
(in thousands, except percentages)

  For the Fiscal Year Ended
September 30,
  2020 2019
Net income $40,297 $43,121 
Interest expense, net 3,113 1,861 
Provision for income taxes 12,760 13,909 
Depreciation, depletion and amortization of long-lived assets 39,301 31,231 
Equity-based compensation expense 1,570 957 
Management fees and expenses (1)
 1,403 1,252 
          Adjusted EBITDA $98,444 $92,331 
Revenues $785,679 $783,238 
Adjusted EBITDA Margin 12.5%11.8%
(1) Reflects fees and reimbursement of certain out-of-pocket expenses under a management services agreement with an affiliate of SunTx Capital Partners, the Company’s controlling stockholder.

Construction Partners, Inc.
Net Income to Adjusted EBITDA Reconciliation
Fiscal Year 2021 Outlook
(in thousands)

  For the Fiscal Year Ending September 30, 2021
  Low High
Net income $42,000 $46,500 
Interest expense, net 2,500 2,700 
Provision for income taxes 14,000 15,600 
Depreciation, depletion and amortization of long-lived assets 47,600 50,200 
Equity-based compensation expense 1,570 1,600 
Management fees and expenses (1)
 1,330 1,400 
Adjusted EBITDA $109,000 $118,000 

(1) Reflects fees and reimbursement of certain out-of-pocket expenses under a management services agreement with an affiliate of SunTx Capital Partners, the Company’s controlling stockholder.