Annual report pursuant to Section 13 and 15(d)

Condensed Financial Statements of Parent Company (Tables)

v3.23.3
Condensed Financial Statements of Parent Company (Tables)
 12 Months Ended
Sep. 30, 2023
Condensed Financial Information Disclosure [Abstract]  
Schedule of condensed balance sheet
CONSTRUCTION PARTNERS, INC.
PARENT COMPANY ONLY
CONDENSED BALANCE SHEETS
(in thousands, except share and per share data)
September 30,
2023 2022
ASSETS
Cash and cash equivalents $ 54,410  $ 43,130 
Prepaid expenses and other current assets 1,411  2,995 
Total current assets 55,821  46,125 
Property, plant and equipment, net 4,643  4,646 
Investment in subsidiaries 524,466  444,473 
Due from subsidiaries 13,015  58,593 
Other assets 30,587  28,140 
Total assets $ 628,532  $ 581,977 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other current liabilities $ 4,123  $ 3,477 
Current maturities of long-term debt 886  1,204 
Total current liabilities 5,009  4,681 
Long-term liabilities:
Due to subsidiaries 87,183  39,275 
Deferred income taxes, net 5,030  4,553 
Long-term debt, net of current maturities and debt issuance costs 14,736  77,589 
Total long-term liabilities 106,949  121,417 
Total liabilities 111,958  126,098 
Stockholders’ Equity
Preferred stock, par value $0.001; 10,000,000 shares authorized at September 30, 2023 and September 30, 2022 and no shares issued and outstanding
 —  — 
Class A common stock, par value $0.001; 400,000,000 shares authorized, 43,760,546 shares issued and 43,727,680 shares outstanding at September 30, 2023, and 41,195,730 shares issued and 41,193,024 shares outstanding at September 30, 2022
 44  41 
Class B common stock, par value $0.001; 100,000,000 shares authorized, 11,921,463 shares issued and 8,998,511 shares outstanding at September 30, 2023, and 14,275,867 shares issued and 11,352,915 shares outstanding at September 30, 2022
 12  15 
Additional paid-in capital 267,330  256,571 
Treasury stock, Class A common stock, par value $0.001, at cost, 32,866 shares at September 30, 2023, and 2,706 shares at September 30, 2022
 (178) (39)
Treasury stock, Class B common stock, par value $0.001, at cost, 2,922,952 shares at September 30, 2023 and 2022
 (15,603) (15,603)
Accumulated other comprehensive loss 18,694  17,620 
Retained earnings 246,275  197,274 
Total stockholders’ equity 516,574  455,879 
Total liabilities and stockholders’ equity $ 628,532  $ 581,977 
See note to condensed financial statements of parent company.
Schedule of condensed income statement
CONSTRUCTION PARTNERS, INC.
PARENT COMPANY ONLY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except share and per share amounts)
For the Fiscal Year Ended 
September 30,
2023 2022 2021
Equity in net income of subsidiaries $ 50,899  $ 24,690  $ 25,505 
General and administrative expenses (2,535) (4,758) (6,399)
Interest expense, net (24) 68  834 
Gain on sale of equipment, net —  6  — 
Other income 4  13  3 
Income before provision for income taxes 48,344  20,019  19,943 
Income tax benefit 657  1,357  234 
Net income $ 49,001  $ 21,376  $ 20,177 
Other comprehensive (loss), net of tax
Unrealized gain (loss) on interest rate swap contract, net 1,297  18,091  (23)
Unrealized (loss) on restricted investments, net (223) (448) — 
Other comprehensive (loss) 1,074  17,643  (23)
Comprehensive income $ 50,075  $ 39,019  $ 20,154 
Net income per share attributable to common stockholders:
Basic $ 0.95  $ 0.41  $ 0.39 
Diluted $ 0.94  $ 0.41  $ 0.39 
Weighted average number of common shares outstanding:
Basic 51,827,001  51,773,559  51,636,955 
Diluted 52,260,206  51,957,420  51,773,213 
See note to condensed financial statements of parent company.
Schedule of condensed cash flow statement
CONSTRUCTION PARTNERS, INC.
PARENT COMPANY ONLY
CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
For the Fiscal Year Ended
September 30,
2023 2022 2021
Cash flows from operating activities:
Net income $ 49,001  $ 21,376  $ 20,177 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation, depletion, accretion and amortization 757  757  475 
Gain on sale of equipment —  (6) — 
Loss (gain) on derivative instruments —  (1,668) (894)
Equity-based compensation expense 10,759  8,000  3,549 
Equity in net income of subsidiaries (50,899) (24,690) (25,505)
    Deferred income tax benefit —  (248) (451)
    Other non-cash adjustments (417) (73) 9 
Changes in operating assets and liabilities:
Prepaid expenses and other current assets 1,584  (1,932) (135)
Other assets (256) (593) (2,008)
Accrued expenses and other current liabilities 646  507  1,001 
Other liabilities —  (748) (97)
Net cash (used in) provided by operating activities 11,175  682  (3,879)
Cash flows from investing activities:
Purchases of property, plant and equipment (737) (243) (2,641)
Proceeds from sale of equipment —  6  — 
Investment in subsidiary (29,317) (10,986) — 
Net cash used in investing activities (30,054) (11,223) (2,641)
Cash flows from financing activities:
Change in amounts due to (from) subsidiaries, net 32,126  (65,622) (6,296)
Purchase of treasury stock (139) (39) — 
Principal payments on long-term debt (1,828) (420) — 
Proceeds from issuance of long-term debt, net of debt issuance costs and discount —  54,527  — 
Net cash (used in) provided by financing activities 30,159  (11,554) (6,296)
Net change in cash and cash equivalents 11,280  (22,095) (12,816)
Cash and cash equivalents:
Beginning of period 43,130  65,225  78,041 
End of period $ 54,410  $ 43,130  $ 65,225 
See note to condensed financial statements of parent company.