Construction Partners, Inc. (NASDAQ:ROAD) Q1 2019 Earnings Conference Call Transcript

Feb 12, 2019 • 11:00 am ET


Construction Partners, Inc. (NASDAQ:ROAD) Q1 2019 Earnings Conference Call Transcript


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Greetings, and welcome to Construction Partners, Inc. First Quarter Fiscal 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a remainder, this conference is being recorded.

It is now my pleasure to introduce your host, Rick Black, Investor Relations. Thank you, Mr. Black, you may begin.

Rick Black

Thank you, operator, and good morning, everyone. We appreciate you joining us for the Construction Partners' conference call to review fiscal 2019 first quarter results. This call is also being webcast and can be accessed through the audio link on the Events and Presentations page of the Investor Relations section of Information recorded on this call speaks only as of today February 12, 2019, so please be advised that any time-sensitive information may no longer be accurate as of the date of any replay.

I would also like to remind you that statements made in today's discussion that are not historical facts, including statements of expectations or future events or future financial performance, are forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Act of 1995. We will be making forward-looking statements as part of today's call that by their nature are uncertain and outside of the Company's control. Actual results may differ materially. Please refer to the earnings press release that was issued yesterday for our disclosure on forward-looking statements.

These factors and other risks and uncertainties are described in detail in the Company's filings with the Securities and Exchange Commission. Management will also refer to non-GAAP measures, including adjusted EBITDA. Reconciliations to the nearest GAAP measures can be found at the end of our earnings release. Construction Partners assumes no obligation to publicly update or revise any forward-looking statements.

And now, I would like to turn the call over to Construction Partners' President and CEO, Mr. Charles Owens. Charles?

Charles E. Owens

Thank you, Rick, and good morning, everyone. With me on the call today are Ned Fleming, our Executive Chairman of the Board; and Alan Palmer, our Chief Financial Officer.

In my opening remarks, I will provide comments about our fiscal 2019 first quarter and give an update on our business. I will then turn the call over to Ned for few additional comments. Finally, Alan will review our financial results and discuss our outlook.

During our fiscal first quarter, our construction projects exceeded gross profit percentage expectations, despite delays related to Hurricane Michael in October and sustained rainfall experienced in many of our markets in November and December. Weather improved in January across our markets, allowing for increased productivity. It is important to note that revenue is not lost when weather delays prevent the completion of certain projects. Those projects are simply put forward to be completed. I expect 2019 to be a good year for our Company and we are confirming our outlook for 2019.

Historically, 40% of our annual revenue comes in the first half of our fiscal year, which