Construction Partners, Inc. (NASDAQ:ROAD) Q4 2019 Earnings Conference Call - Final Transcript

Dec 10, 2019 • 11:00 am ET


Construction Partners, Inc. (NASDAQ:ROAD) Q4 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Construction Partners Inc. Fourth Quarter Earnings Conference Call. [Operator Instructions] A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

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 fourth quarter and fiscal year-end 2019 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 December, 10, 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 the 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 Reform 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 detailed -- 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 press 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 and Alan Palmer, our Chief Financial Officer.

In my opening remarks today, I will provide comments about our fiscal 2019 and provide an update on our business. I will then turn the call over to Ned for a few additional comments. Finally, Alan will review our financial results and discuss our 2020 outlook before we take your questions.

We are pleased with our fiscal 2019 performance. Revenue for the year was $783.2 million, up 15.2% compared to last year and led to a strong growth in adjusted EBITDA to $92.3 million, up 22.2% compared to last year. In addition, our adjusted EBITDA margin increased to 11.8%, up 70 basis points over the last year. These increases were driven by sustained demand across our 33 distinct market areas for road repairs and maintenance projects coupled with our acquisition of two hot mix asphalt plants and favorable working conditions in the last six months of fiscal 2019.

The margin growth was fueled by strong operational performance, an increased utilization of hot mix asphalt