Construction Partners, Inc. Announces Preliminary FY23 Financial Results; Sees FY23 Revenue $1.547B-$1.557B Vs $1.55B Est.; Sees FY24 Revenue $1.75B-$1.825B Vs $1.71B Est.

Preliminary Fiscal 2023 Financial Results

Revenue in fiscal 2023 is expected to be in the range of $1.547 billion to 1.557 billion, compared to $1.30 billion in fiscal 2022.

Net income in fiscal 2023 is expected to be in the range of $44.8 million to $47.0 million, compared to $21.4 million in fiscal 2022. 

Adjusted EBITDA(1) in fiscal 2023 is expected to be in the range of $168.0 million to $172.0 million, compared to $111.2 million in fiscal 2022.

Adjusted EBITDA Margin(1) in fiscal 2023 is expected to be in the range of 10.9% to 11.0%, compared to 8.5% in fiscal 2022.

Cash flow from operations in fiscal 2023 is expected to be in the range of $155.0 million to $160.0 million, compared to $16.5 million in fiscal 2022.

Cash at fiscal year-end 2023 is expected to be approximately $55 million, compared to $35.5 million at fiscal year-end 2022.

Net Debt(1) to Adjusted EBITDA(1) at fiscal year-end 2023 is expected to be in the range of 1.87x to 1.92x, compared to 3.06x at fiscal year-end 2022. 

(1) Adjusted EBITDA, Adjusted EBITDA Margin and Net Debt are financial measures not presented in accordance with generally accepted accounting principles ("GAAP"). Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this press release.

The Company's independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to the above preliminary financial information or its audit of the Company's financial statements for the year ended September 30, 2023. The Company's actual results may differ from these estimates as a result of the Company's year-end closing procedures, review adjustments and other developments that may arise between now and the time the Company's financial results for the year ended September 30, 2023 are finalized.

Introducing Fiscal Year 2024 Outlook

The Company's outlook for fiscal year 2024 with regard to revenue, net income, Adjusted EBITDA and Adjusted EBITDA Margin is as follows:

• Revenue in the range of $1.750 billion to $1.825 billion
• Net income in the range of $63 million to $70 million
• Adjusted EBITDA(1) in the range of $197 million to $219 million
• Adjusted EBITDA Margin(1) in the range of 11.3% to 12.0%

Smith commented, "As our Company continues its growth trajectory, we remain focused on expanding margins though enhanced local market performance, further vertical integration of construction materials and services, and scaling corporate costs across the organization. We continue to benefit from opportunities afforded by a generational investment in infrastructure, the fast-growing economy in the Southeast, and numerous organic and acquisitive growth opportunities."