Annual report pursuant to Section 13 and 15(d)

Condensed Financial Statements of Registrant

v3.20.2
Condensed Financial Statements of Registrant
12 Months Ended
Sep. 30, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Statements of Registrant
CONSTRUCTION PARTNERS, INC.
PARENT COMPANY ONLY
CONDENSED BALANCE SHEETS
(in thousands, except share and per share data)
September 30,
2020 2019
ASSETS
Cash and cash equivalents $ 78,041  $ 63,947 
Prepaid expenses and other current assets 928  745 
Total current assets 78,969  64,692 
Property, plant and equipment, net 2,994  2,268 
Investment in subsidiaries 383,740  322,947 
Deferred income taxes, net 441  16 
Other assets — 
Total assets $ 466,150  $ 389,923 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Due to subsidiaries $ 75,044  $ 35,303 
Accrued expenses and other current liabilities 1,969  2,934 
Total current liabilities 77,013  38,237 
Long-term liabilities:
Due to subsidiaries 2,234  7,825 
Other long-term liabilities 1,708  311 
Total long-term liabilities 3,942  8,136 
Total liabilities 80,955  46,373 
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, 2019
34  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, 2019
21  22 
Additional paid-in capital 245,022  243,452 
Treasury stock, at cost, 2,922,952 shares of Class B common stock, par value $0.001
(15,603) (15,603)
Retained earnings 155,721  115,646 
Total stockholders’ equity 385,195  343,550 
Total liabilities and stockholders’ equity $ 466,150  $ 389,923 
See note to condensed financial statements of parent company.
CONSTRUCTION PARTNERS, INC.
PARENT COMPANY ONLY
CONDENSED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
For the Fiscal Year Ended 
September 30,
2020 2019
Equity in net income of subsidiaries $ 43,712  $ 45,679 
Equity-based compensation expense (1,570) (957)
General and administrative expenses (2,597) (2,666)
Interest expense, net (1,218) (153)
Gain on sale of equipment, net — 
Other income — 
Income before provision for income taxes 38,327  41,909 
Income tax benefit 1,970  1,212 
Net income $ 40,297  $ 43,121 
Net income per share attributable to common stockholders:
Basic $ 0.78  $ 0.84 
Diluted $ 0.78  0.84 
Weighted average number of common shares outstanding:  
Basic 51,489,211  51,421,159
Diluted 51,636,934  51,427,220
See note to condensed financial statements of parent company.
CONSTRUCTION PARTNERS, INC.
PARENT COMPANY ONLY
CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
For the Fiscal Year Ended
September 30,
2020 2019
Cash flows from operating activities:
Net income $ 40,297  $ 43,121 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation, depletion and amortization of long-lived assets 463  179 
Gain on sale of equipment —  (1)
Equity-based compensation expense 1,570  957 
Equity in net income of subsidiaries (43,712) (45,679)
    Deferred income tax (benefit) expense (425) 99 
Changes in operating assets and liabilities:
Prepaid expenses and other current assets (183) 771 
Other assets (6) 257 
Accrued expenses and other current liabilities (965) 1,662 
Other liabilities 1,397  311 
Net cash (used in) provided by operating activities (1,564) 1,677 
Cash flows from investing activities:
Purchases of property, plant and equipment (1,189) (755)
Proceeds from sale of equipment — 
Investment in subsidiary (17,303) (19,703)
Net cash (used in) investing activities (18,492) (20,457)
Cash flows from financing activities:
Change in amounts due to (from) subsidiaries, net 34,150  16,959 
Payment of treasury stock purchase obligation —  (569)
Proceeds from sale of stock — 
Net cash provided by financing activities 34,150  16,393 
Net change in cash and cash equivalents 14,094  (2,387)
Cash and cash equivalents:
Beginning of period 63,947  66,334 
End of period $ 78,041  $ 63,947 
See note to condensed financial statements of parent company.
Note to Condensed Financial Statements of Parent Company
On December 31, 2019, the Company completed an internal reorganization by merging Construction Partners Holdings, Inc. with and into the Company, with the Company surviving the merger. Therefore, the condensed parent company-only financial statements above reflect the retroactive combination of these entities as if it had occurred on October 1, 2018 for comparative purposes. The presentation change for September 30, 2019 had no effect on previously reported net income of the Company.
These condensed parent company-only financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of Construction Partners, Inc. (as defined in Rule 4-08(e)(3) of Regulation S-X) exceed 25% of the consolidated net assets of the Company. The ability of Construction Partners, Inc.’s operating subsidiaries to pay dividends is restricted by the terms of the credit facilities described in Note 11 - Debt.
These condensed parent company-only financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the exception that the parent company accounts for its subsidiaries using the equity method. These condensed parent company-only financial statements should be read in conjunction with the consolidated financial statements and related notes thereto.