Construction Partners, Inc. Annual report pursuant to Section 13 and 15(d)

Condensed Financial Statements of Registrant (Tables)

12 Months Ended

Sep. 30, 2019

CONSTRUCTION PARTNERS, INC.

PARENT COMPANY ONLY

CONDENSED BALANCE SHEETS

(in thousands, except share and per share data)


	September 30,
	2019		2018
ASSETS
Cash and cash equivalents	$	31,610	$	53,352
Investment in subsidiaries	313,277		247,944
Due from subsidiaries	1,020		545
Other assets	551		1,226
Total current assets	346,458		303,067
Property, plant and equipment	606		131
Total assets	$	347,064	$	303,198
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Treasury stock purchase obligation	$	—	$	569
Due to subsidiaries	400		800
Other current liabilities	1,231		183
Total current liabilities	1,631		1,552
Long-term liabilities:
Due to subsidiaries	1,883		2,177
Total long-term liabilities	1,883		2,177
Total liabilities	3,514		3,729
Stockholders’ Equity
Preferred stock, par value $0.001; 10,000,000 shares authorized at September 30, 2019 and September 30, 2018 and no shares issued and outstanding	—		—
Class A common stock, par value $0.001; 400,000,000 shares authorized, 32,597,736 shares issued and outstanding at September 30, 2019, and 11,950,000 shares issued and outstanding at September 30, 2018	33		12
Class B common stock, par value 0.001; 100,000,000 shares authorized, 22,106,961 shares issued and 19,184,009 shares outstanding at September 30, 2019, and 42,387,571 issued and 39,464,619 outstanding at September 30, 2018	22		42

Additional paid-in capital	243,452		242,493
Treasury stock, at cost, 2,922,952 shares of Class B common stock, par value $0.001	(15,603)		(15,603)
Retained earnings	115,646		72,525
Total stockholders’ equity	343,550		299,469
Total liabilities and stockholders’ equity	$	347,064	$	303,198

CONSTRUCTION PARTNERS, INC.

PARENT COMPANY ONLY

CONDENSED STATEMENTS OF INCOME

(in thousands, except per share amounts)


	For the Fiscal Year Ended September 30,
	2019		2018
Equity in net income of subsidiaries	$	45,631	$	51,515
Equity-based compensation expense	(957)		(975)
General and administrative expenses	(3,369)		(1,542)
Interest income, net	373		72
Income before provision for income taxes	41,678		49,070
Income tax benefit	1,443		1,721
Net income	$	43,121	$	50,791
Net income per share attributable to common stockholders:
Basic	$	0.84	$	1.11
Diluted	$	0.84	1.11
Weighted average number of common shares outstanding:
Basic	51,421,159		45,605,845
Diluted	51,427,220		45,919,648

CONSTRUCTION PARTNERS, INC.

PARENT COMPANY ONLY

CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)


	For the Fiscal Year Ended September 30,
	2019		2018
Cash flows from operating activities:
Net income	$	43,121	$	50,791
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of deferred debt issuance costs	6		6


Equity-based compensation expense	957		975
Equity in net income of subsidiaries	(45,631)		(51,515)
Changes in operating assets and liabilities:

Other current assets	675		969
Other liabilities	1,049		(3,369)
Net cash provided by (used in) operating activities	177		(2,143)
Cash flows from investing activities:

Purchases of property, plant and equipment	(475)		(131)
Investment in subsidiary	(19,703)		(34,155)
Net cash (used in) provided by investing activities	(20,178)		(34,286)
Cash flows from financing activities:
Change in amounts due to (from) subsidiaries, net	(1,175)		(6,994)

Payment of treasury stock purchase obligation	(569)		(2,569)
Proceeds from initial public offering of Class A common stock, net of offering costs	—		98,009
Proceeds from sale of stock	3		5

Net cash provided by (used in) financing activities	(1,741)		88,451
Net change in cash and cash equivalents	(21,742)		52,022
Cash and cash equivalents:
Beginning of period	53,352		1,330
End of period	$	31,610	$	53,352