Construction has recently released its 10-K report, offering a detailed look into the company's financial performance and business operations. As a civil infrastructure company, Construction Partners, Inc. specializes in the construction and maintenance of transportation networks, with a focus on highways, roads, bridges, airports, and commercial and residential developments in the Sunbelt region, covering Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee.
In the 10-K report, the company's management's discussion and analysis of financial condition and results of operations highlighted several key aspects. One notable figure is the contract backlog, which stood at a substantial $2.0 billion as of September 30, 2024. This financial measure reflects the dollar value of work that the company expects to perform in the future, including uncompleted work on contracts in progress and low bid/no contract projects.
The report also detailed the company's significant business acquisitions during the 2024 fiscal year. Construction Partners completed eight acquisitions across four states, expanding its operations in Alabama, Georgia, North Carolina, and South Carolina. Notably, the acquisition of Lone Star Paving added significant assets to the company, including 10 HMA plants, four aggregate facilities, and one liquid asphalt terminal.
To finance these acquisitions, the company entered into a Term Loan B Credit Agreement, securing a senior secured first lien term loan facility in the aggregate principal amount of $850.0 million. Additionally, the company amended its existing credit agreement to increase the aggregate commitments under the revolving credit facility from $325.0 million to $400.0 million, demonstrating a strategic approach to funding growth and expansion.
Furthermore, the report highlighted the company's stock repurchase program, which authorized the repurchase of up to $40 million worth of shares of its outstanding Class A common stock through September 30, 2025. During fiscal 2024, Construction Partners repurchased a total of 173,741 shares of Class A common stock for an aggregate purchase price of $10.0 million.
The 10-K report also shed light on the seasonal nature of the company's business, noting that its operations are significantly influenced by seasonal changes and weather-related conditions. The fluctuations in activity due to adverse weather conditions, such as extended snowy, rainy, or cold weather, can impact the company's business and operations.
In terms of financial performance, the report detailed the company's revenue recognition process, gross profit, and the various components of its cost structure, including depreciation, depletion, accretion, and amortization. Additionally, it provided insights into general and administrative expenses, as well as gains on the sale of property, plant, and equipment.
Today the company's shares have moved 1.3% to a price of $101.28. For the full picture, make sure to review Construction's 10-K report.
