Construction Partners, Inc Announces Fiscal 2022 Third Quarter Results.

DOTHAN, Ala: Construction Partners, Inc. (NASDAQ: ROAD) ("CPI" or the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways across five southeastern states, today reported financial and operating results for the fiscal quarter ended June 30, 2022.

Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, "We are pleased with our 3rd quarter results, achieving record revenue and Adjusted EBITDA driven by the continued strong demand for infrastructure services throughout our end markets in both the private and public sectors. Our mix of growth for the quarter consisted of approximately 25 percent organic revenue and approximately 20 percent from recent acquisitions. Revenue was driven by a high volume of project work coupled with favorable weather across our region, as well as our bids reflecting higher project prices due to inflation. We continue to win new project work across our five-state footprint in the southeastern U.S., and we ended the quarter with a new record for project backlog of $1.33 billion. In addition, similar to last quarter, our backlog margins continue to grow, and we anticipate that this healthy backlog margin growth will mean higher future profit margins as backlog is converted. Based on the strong revenue performance in the third quarter and record high backlog, we are raising our FY2022 outlook for revenue."

Revenues for the third fiscal quarter of 2022 were $380.3 million, an increase of 45% compared to the third fiscal quarter of last year. Gross profit was $44.3 million in the third fiscal quarter of 2022, compared to $36.6 million in the third fiscal quarter of last year.

General and administrative expenses were $26.6 million for the third fiscal quarter of 2022, compared to $23.2 million in the third fiscal quarter of last year. General and administrative expenses as a percentage of total revenue in the third quarter of 2022 were 7.0%, compared to 8.9% in the third quarter of last year.

Net income was $12.2 million for the third fiscal quarter of 2022, an increase of 30% compared to net income of $9.3 million in the third fiscal quarter of last year.

Adjusted EBITDA(1) for the third fiscal quarter of 2022 was $37.6 million, an increase of 30% compared to $29.0 million for the third fiscal quarter of last year.

Project backlog was $1.33 billion at June 30, 2022, compared to $822.9 million at June 30, 2021 and $1.28...