ROAD - Earnings call transcript Q1 2020 | Construction Partners, Inc.

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Operator

Greetings, and welcome to the Construction Partners’ First Quarter Earnings Conference Call. [Operator Instructions]

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Rick Black, Investor Relations for Construction Partners. Thank you, sir.

begin. may You

Rick Black

and us operator, review everyone. appreciate We quarter Thank the good Construction joining for XXXX to Partners’ you fiscal you, results. morning, conference first call

also Events and today, only page accessed is This constructionpartners.net. can section Investor as February Presentations webcast this Information link the audio of recorded of be on call on through being Relations the XXXX. of the X, and speaks call

date accurate of any that time-sensitive may as advised of be the replay. be please So any no information longer

I that facts, that future Act of today’s of Private also to performance, remind statements the pursuant Safe you XXXX. or made financial the would like the are Securities to Harbor’s are Litigation made in statements of considered events expectations including Reform discussion or future historical forward-looking not statements provision

will earnings release differ statements making their Actual disclosure are part uncertain call company’s our for today’s Please outside materially. on issued forward-looking refer results nature forward-looking full of press control. that statements. of that the the was by and this morning may be We as to

uncertainties and Commission. described risks and and company’s are the factors These the in detail Exchange filings with other in Securities

forward-looking EBITDA. also our Construction can non-GAAP to will including to statements. no obligation end measures, assumes measures or Partners Management nearest any the earnings update GAAP be adjusted revise the refer at release. found Reconciliations of press publicly to

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

Charles Owens

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

over comments. will and our on a update few then additional an quarter, providing by today for start turn call the Ned will I to I first

your results Alan before financial we our Finally, questions. review take will

our with in and recent EBITDA. in quarter our in by We markets profit and growth growth year-over-year produced that Alabama. and in Florida are improved strategic This was performance adjusted acquisitions revenue, existing both by gross first driven double-digit the pleased performance

historically, are quarter our year, revenue seasonality line our our reduces first annual approximately the XX% of our based half results fiscal with on in these first The of and of expectations. business,

see markets and demand to maintenance continue sustained our We road for XX work. repair across distinct

We this and are for also competition, business competing every work. day see sustained we

and organization project focused achieve throughout is on and growth. efficiencies maximizing construction our profitable work reducing team cost to Our

It us opportunities the out to important pursue is to that equipment. of of flexibility and model point utilization our the will that our workforce allow enhance provides projects to

We that profitability. continue to to projects, the grow all best and private pursue both opportunity public possess

us Operating XX key side, different side I environments states, across other state know private our This DOTs and we and on And multiple of business the bid have allows have entities model. we number we in to projects separate these private that large is exposure to public different markets aspect on a diversity public public diversity. throughout geographic markets. to with work five our both on the maximize our can business economic of side. the integrated vertically local

our acquisitions. to Turning recent

high-growth a which acquisition area mix paving plant of asphalt We a integrated we in made fully Florida the and is company October, have coast. the east in hot

since XXXX. in successfully the founding since May XXXX total completed our XX acquisitions acquisitions a We have now and five business IPO of in

and Alabama. pleased in are performance operations with acquired the the We we of Florida

eastern We state. continue a have to those footprint we see particular, broader the growth now side Florida, where of opportunities markets. the In in in in

for We of our and to growth meaningful equipment close from markets vertical proximity a broad and opportunities diverse to believe capable customers. scale, enhanced with provide range the benefit services. expect our and add are there of performing these drive workforce We fleet integration value

acquisitions our to strategy and core three by primary more utilizing consistently making through we doing levers. fiscal through of controlled progress will in opportunities. we strategic By growth, XXXX, continue expanding profitable work the execute market, greenfield As by

have We conversations potential continue to with candidates. acquisition active

opportunities We our acquisition patient that and best strategy. remain fit with prospects evaluate also

to Ned, X,XXX and also for to senior strategy. enable our the like to for hard call more Before I thank to our like turning dedication would employees their over thank work their and leadership, than our execute management that us I would team

Executive Now call to Ned Fleming, over I’ll turn the additional for comments. our a few Chairman, Ned?

Ned Fleming

quarter. And The an to Thank everyone. Charles. delivered you, morning good team excellent first

expressed a ramps As business year up have the is Charles Alan times, of seasonal both and that and profitability second expands half standpoint a year. throughout during top this and the a line many the from

year are the of So truly and as potential to combination the of future. candidates we excited interest come markets we us, opportunities projected evaluate our throughout results company in our and at about acquisition a to look growth number with first quarter of a

Quite positive them. business supply dynamics in have state deteriorating, remained repair much used federal started the and pretty and since simply, the our same of are local, being government funds XXXX. demand are to CPI Roads we and

today might are the most in. And and maintain the roadways improve in deteriorating has conditions better states help I have which ownership states in worsened. fact, country And more that taking because are exactly implementing and what in we the improved. by those to dynamics have taxes not argue operate happened even their In across all more states, is places road GAAP

which the a work economies projects across flexible we on XX As mini compete. the model, to have enabling private or team in we unique public Charles mentioned,

of others growth markets Some or are right flat. down have our slightly experiencing might less and be now. economic growth Others good

size type to many do geographic differentiates have our us broad competitors. further in consistency from brings ability the crews we which move and our flexibility of company. However, the Also to stability projects, to and the all equipment diversity different and

environments. and business economic XX last the different has years, consistency shown in Over competitive and model resilience our

integrate committed team to drive from opportunities a are efficient and efficiency flexible terrific. revenues is processes to grow organization today The business more improving more continually technology, The processes to utilize margins. benefit to

consistent operators for achieving investment across seasoned the which organization, to a with to our tell experienced results, we As level, and believe provides growth. teams continue Throughout to the continue strategy investors, led profitable to plan we entire CPI at we our thesis. high compelling story a the to controlled very to year, plan deliver strong continue execute by

The value enhance cash for maximize team well all to as as to work our shareholders financial results, continues stakeholders. generation hard the and

turn call I’d with our Alan over like to And Palmer. the to CFO, that, Alan?

Alan Palmer

first strategic in Thank mentioned, existing you, by Ned. Charles And Alabama. Florida to our want was start morning improved growth good the performance highlighting everyone. standpoint, performance in and a in quickly in financial quarter. by acquisitions markets by recent driven metrics I From as key and the our quarter year-over-year first

the over year. Organic approximately attributable revenue revenue quarter up last for approximately ended XX, growth completed Revenue million, subsequent $X.X $XX.X the same million and to the was million, acquisitions XXXX. quarter December million acquisitive increased $XXX.X was quarter to to $XX growth

profit a million, higher Gross higher to $XX.X margin. due revenue $X.X to approximately million up over increased primarily and year, same the last period

million, up $X.X per was to the $X.X were same Earnings income compared year. year. Net to from share compared $X.XX quarter last share last million $X.XX per

Note amending June declined to a decrease quarter the approximately compared of $XXX,XXX rate agreement XXXX. year average credit a expense that same result in in as interest our interest last the due to

The compared income tax to lower amended last $XXX,XXX discrete the of XX.X% related for Our period quarter in effective XX.X% the return. tax a rate tax state year. to was effective reduction due to was tax rate same an

of depreciation, profit increased expenses. XX.X%. rate expect the a to fiscal tax and of resulting and EBITDA of our adjusted for EBITDA X.X% million Adjusted depletion be X.X%, $X.X $XX.X the an and adjusted offset million general remainder year the We by administrative in year. to EBITDA was approximately compared approximately an margin quarter in higher effective combination increase last first gross partially The amortization, higher in to

a last $XX.X primarily compared The result in million million. expenses General of a $XX.X expense. subsequent of increase the administrative $XXX,XXX first to were quarter XX, acquisitions a year in completed of and management in million personnel, $XXX,XXX increase XXXX, stock increase the was to and December million payroll attributable and $X.X compensation $X.X increase XXXX benefits, to

cash revolving Turning after our letters credit million XX, $XX.X sheet. December credit. outstanding million facility balance had of deducting XXXX At now $XX.X we under the million $XX to availability of of and

to at EBITDA debt Our time than [indiscernible]. one less XX months’ ratio trailing was

operating opportunities. XXXX, by to million very three ended XX, compared months our a months to have $X.X December provided from ended We for three sheet million growth strong support $X.X balance was activities XXXX. into Cash XX, December

XXXX in quarter million in million, approximately CapEx $XX.X certain in excluding subject fiscal of previously quarter was to last was operating million to $XX.X compared purchase quarter equipment laces, our same to first $X.X the first the the $XX.X that was year. CapEx million

leases. in fiscal purchase capital $XX of our $XX.X previously XXXX, subject expenditures operating the excluding equipment to was that range $XX we For to million the to expect million million, be of

XX, expected September be was Project $XXX.X in XX% backlog current to million backlog, Of XXXX. compared XXXX December $XXX our million $XXX.X to during at at XX, at of XX, our $XXX or million and XXXX reminder fiscal million year. is the $XXX approximately million completed December

maintain the We primarily we see we in markets, six continue Keep distinct to backlog opportunities bid in of nine in prefer, recurring that our maintenance-related backlog to these of in mind to want construction on to our type projects focus markets. XX have meaning composed a and backlog we of we that on months projects markets. our

we projects backlog overall backlogs months focus or based XX are either the in terms of next market-specific fluctuate in these the health large can of backlog, while several for added amount company-wide our quarter-over-quarter As completed, specific overall aggregated on on market. being each the

and a We in as May. during on February our our strategically backlog third typically these approach second repair disciplined are maintenance let focus and projects to recurring quarters builds Historically, more of also maintained projects. through

year of XX% revenue We outlook fiscal and half fiscal are historical approximately the of for maintaining our of based approximately second first the half. experience our XX% in our on full XXXX the year during generating

to million of XXXX; fiscal results, demand million adjusted first net million to in adjusted fiscal see $XXX with million year year regard we fiscal fiscal in million to $XX million project of income $XXX compared million revenue, positive million with $XX.X and continue to as $XX market $XXX.X trends $XX.X outlook and income year Our $XXX net in fiscal to of we EBITDA year in EBITDA to quarter follows: to compared million XXXX. are summary, and XXXX pleased to XXXX; revenue and our $XX are compared In XXXX.

questions. Operator? With that, now we’ll take

Operator

Feniger Please Michael Please the from Lynch. of [Operator your of with comes question. And with to on Bank Thalhimer line which the comes Instructions] line first Thompson, move Davis. next proceed. question, Merrill with America Our we Adam proceed our of will from question

Adam Thalhimer

Good morning, guys. Nice quarter.

Alan Palmer

Good morning.

Adam Thalhimer

So said like of how on color give you you a to nine of – you’d have give current level more markets, little specific view little backlog in guys color us six more months can you your to a you on can us backlog? the

Alan Palmer

do end it do many of of We much because with in we that we’ve in it. fourth Considering lot our the markets the few next the bid second and to the far in as be that some third not the a with able that expect revenue, of year, and – of be time quarter. coming much the will opportunities to build to front the see typically our more. build of but seen, for up build, then what we’re as like out of there pleased months And as in in going good got backlog we results so the would into second available projects already we’ve January our us

Adam Thalhimer

December picked the expect couple were trend And curious The half. from a in to declined – EBITDA. similar Okay. of of seasonality would that then March, but year? this you last EBITDA up years, the on back Is has

Alan Palmer

Yes.

our of lowest volume year. is generally, January March the our in through volume As quarter, which is the second

repairs we in a and incur in that the January, of they So especially lot equipment of that fixed margin. slowdown, and the impact cost plants

of fairly are have consistent are and lower that we quarter margins incur with costs the accounts year. in the the lot that ones But will revenue. lot fixed job Our equipment a where plants throughout a

gross usually core. that’s profit So lowest our

Adam Thalhimer

Okay. Thank you.

Alan Palmer

you. Thank

Operator

Thank you.

Feniger, with Please Our is next question. question your Mr. live. is proceed from Merrill Lynch. America Bank your Michael line of Feniger with

Michael Feniger

me? hear you Can

Alan Palmer

Yes. Good morning.

Michael Feniger

Good morning.

Sorry that. about

might think I have I – I apologize.

your if the on touch I – sorry, could question just guys I’m made I maybe we you think – here. repeat With SG&A.

the And was maybe it there I seasonal question sales. think I on is high just impact prior. as know there’s lower touched revenue. this a with with pretty But of you percent a cost bit the the acquisitions might the be rest little a aware how of or through that from anything with was first something the new And year? running higher quarter. that in we of trend should

Alan Palmer

quarter, year. first we acquisitions related the the In G&A that $XXX,XXX that last of about had Yes. didn’t we same quarter have to of in was

last that to it. of year part this quarter-over-quarter, So was year,

$XXX,XXX about instead to in chose stock cash. directors directors of – non-cash We their to year also had of some last equity-related – compensation the take

last have the a was same we And year. that so that in quarter did non-cash not

was added Then we’ve primarily the the that staff just level. increase other in administrative in

that expenses our end some that prior safety have in to the other that first generally quarter also paid quarter. to in quarter of and We employee December are first – type occur for awards cost in our of they’re prior

in So additional absent of quarter. any first fourth bumped and down should third that the trend kind quarter, up That that acquisitions. amount second,

overhead So the run should in the highest year. be rate in first for for this the quarter

Michael Feniger

we DOT evolving, Okay. curious September, just And think, as the kind have year. if like a could expires seen industry how flag this any That’s curious all? been Look, you’ve evolve September Act if you in then think at this changes how I I very before. market should this to you long helpful. approach of I’m us we just in the see authorization, FAST budgets guys I’m time,

Charles Owens

This a is bag, to And through anticipate impact it’s any see and gas We these our almost standard until all. of in. But we don’t don’t really We – based lot whether states, that’s tailwind continue kick and things CRs we think usual. expire, going We kind in, model really taxes got to in just new. we of as at slowdown. kicked business so anything Charles. in major have the lot our anything be on obviously, get have of funded they they for still any then a don’t become to just

Alan Palmer

their state the the of bill. democratic and union comment I address about by infrastructure then think the party. rebuttal And first are was We

normal consensus something might a said, spectrum doesn’t, accustomed Act very it certainly that gotten to there’s a to the resolutions DOTs done. last continuing political get in before the So And it. across But the that, all of as get years. FAST are we’re And done if that expires. hopeful part have Charles XX

Michael Feniger

could private mean lot I if a And just squeeze we’re the I sense. one side. on talking public the makes That know side. I about

you any the in construction on Just in I’m on in been some that that concerns private are some book of your if side your just districts non-res you guys side and observing some curious states. alarm. guys business? observing There’s of anything areas the suggests in are

Charles Owens

residential, is we seeing that’s a On the still strictly a the side, of bit little we’re that’s It normal. and hard. kind still private a seeing been ones too lot commercial, chase of residential But to related of don’t development. that we’re business the

very we’re So – because a in, seeing little bit of their cyclicality. But in we’re the still a markets economy. that strong still

lot We’re still being seeing work let. a of

markets And next to is positive we’re months. a so be very far, for that, going the the that that we’re several continuation in,

Michael Feniger

enough. Fair

Operator

next on Wittmann Thank Please from Andrew with to you. move our We’ll W. proceed. which question, Baird. Robert comes

Andrew Wittmann

to is guys. morning, And I my number. probably CapEx Great. first Thanks, the Alan. here question just good I wanted guess for about talk

in you just little could give all last to clearly hoping of type involved on a of be the you could, leases basis. those previously into that going it turn And would or if very rent quantify was were investors buyout. lease a have I quarter things the of us bit you out of was those give here flavor you’d expense that on amount of You depreciation expensed the helpful guys called very operating lease this Alan, go-forward kind to now that’s that expense – leases. for operating

Alan Palmer

$XX.X that value million leases. of Okay. as in the bought The amount October those market we out was fair

out. the million, expense So $X from it then but capital you going go our look were way standards, the you’ll we probably to booked have that whether if subject to exact did would when would do But our a that you of us, to number as the sheet, operating were to I for the balance million amount, be so was, to going million but depreciation assets we also, lease leases an would and asset. say, one those get that our another a – became a because figured analysis new that budget those – equate we $X.X $X.X lease I we And because on exact year. because at other because standpoint, value worth books don’t lease about or I was that it X. XXXX and – see into October we buy of can knew approximately we of

But to bought part that first related all been the of would of the question, equipment we have out. that

enough good bulldozers, a trucks trucks, of we So rollers, been those for operating leased that number had heavy would some were and have leases other then equipment. there

we that on that. quarry that a type be the a in had of asphalt locations on, number that’s sitting a But still So have lease our some things we quarry. leases. have whether outside operating property are of We plants that of or we just it of

in is of the asset. And operating that what so right-of-use that majority is

but there’s not So some additional iron yellow a lot.

Andrew Wittmann

know, going for the That’s you in was the up it. all of of give calculated could flow that get I the you part an have receivables. in number acquisition I of help cash the understand you quarter, of of And days here, fact you some quarter what’s are Thank could the do all here? just that to just that’s but book of if the mechanics imagine here did sequentially. decent revenue the help acquisition, on here, you you that. aspect DSOs just helpful that. But color. that is from I you could behind if kind don’t don’t another kind the Certainly, wondering And

you’d that catch about was quarter, last some we’re you slow DOTs kind you that a how that. up of there paying lot are thought discussion state there and Because of on

that thought have and it bit about status calculation. the quarter relate for talked about to hear some last receivables little here just everyone would DSO so helpful be back of of to the those a you And I it

Alan Palmer

of have our Yes. the the impact lot of go off, specifically, to Unfortunately, us they’d And pay the in to we paying people through January. from have customers the there we delays as said and And A lot the do expect quarter, to weren’t while year. payable first advantage that DOT we accounts December for kept our – are less bills. a the taking holidays. of took holidays

at, past a from we shape is So really what look still standpoint, in there. are due good which we

side. can still certainly get second back off public in won’t And but and write-offs them We week we not quarter we have do receivables for real, where some the or it’s still the – But they DOTs. the is it a paid on have the when track should very of we few little bit last collecting more two, in the of which is like delay on feel we get not from take often the because holidays, increase.

Andrew Wittmann

comments Okay. That’s here has remarks. guess, helpful. the last from And then my question to prepared do the I with just

differently? that competition You sustained business just that that differently you things is you or was a just you but little new upon kind any going I about seeing of bit. growth, saw also kind competition competition. expand entrants, any commentary could Are referring or of helpful. the on if the of Are be continued mentioned the expanding that upon their here thought I – to maybe there’s quarter during pricing would anything see Charles, specifically you state wondering you that?

Charles Owens

is so on business, and we work anything one we and that up we our is efficiencies obviously, to as this – every I was any a guess, been, very basis, to we’re always our normally that point it’s improve brought see, haven’t business anything hard competitive that’s that seen, and From job a we reason really seeing I the understand markets. different normally not that far get as standpoint, that competitive a that competitive but have

can we maximize So profitability. our

Andrew Wittmann

you I’ll much. leave Okay. very with that. Thank

Operator

you. Thank

Our next Grooms Trey question is with Please Stephens. from proceed.

Noah Merkousko

for Hi. Merkousko This Trey. is on morning. actually Noah Good

margins expecting. came about originally was it the in XX first your was expectations? a more EBITDA question, quarter line were the bps, my little the pressured in anything Is adjusted but with in than that like you than there it thought? had So And margin maybe bit up we lower this looks

Alan Palmer

It the the was We We just level were as line more very as and we a had in we through the were and – cost our better expectations much the performed expected. equipment in slightly at that equipment very quarter. with had. the plants good going slightly plants line. far our they in enough volume what Actually, than jobs

and So asphalt sales the overall, were those were that of in We terminal. pleased with our line. the that external performance to contribute liquid

bit due that So little we G&A what that at the expectation a gross line, in year. then, little costs budgeting, were was bit I’ve the equal talked was. fourth when little the bit profit of that a to we’re revenue. is again, actually And anticipated But a than in, that higher we than part higher throughout our we what on those – they’re were quarter more about come that that

So quarter. and acquisition – the almost then in $XXX,XXX, $XXX,XXX, I we cost had of was it think about

expected. So points what – maybe we but XX above overall just overall, the was margin basis

Noah Merkousko

assumption helpful. this follow-up that the That’s How saw that good of then a year? – to implies Is margin we about higher. I Last guide should would Okay. an think be your to that that on for just year, use margin, X% think up? ramping And that, half X% back XX.X%. to EBITDA

Alan Palmer

Yes, that should that in be pretty much line.

going quarter, then is the do you is we to fourth work historically, XX% be average And XX% typical. And third X%, margin to going because be if to quarter it’s your you’re lowest second quarter. of X% when higher. to follow then that in and that The out the going that about generally

higher only higher not be that’s margin be a So on going to going to revenue. that it’s

we’ll we’ll like. course, course, good then, time, that give guidance that And we looks and annual of on our – a still of our when update finish So time, quarter full we an have real second second generally quarter, year about good we feel at guidance. our what know at that

Noah Merkousko

leave All helpful. right. That’s Thanks. there. it will I

Alan Palmer

Thank you, Noah.

Operator

Thank you.

proceed. with Wilson Josh from comes question Raymond James. next Please Our

Josh Wilson

morning. Thanks. good And

Alan Palmer

morning. Good

Josh Wilson

little thought? letting, mega I you talked projects, evolved about going normalizing about projects towards that Is previously how the forward? like you being that’s and a mix had you talked think quarter, you that of maybe what see biased looking last First, as

Alan Palmer

talked quarter, much When related in and and more third Yes. fourth up to we quarter. talking some were as we – that not about I about built the we were the it think as backlog last really it and having

lot of happening a that’s that expected still So the last August, was January lot say, of – in projects see I’d so in, we through we mega – and and year, didn’t out future a period the September the case.

We’re not seeing projects there a eat of large lot of that it. those lot out a up

a are We more return the projects. maintenance-type more and seeing to repair

some happen bit And in little Carolina. projects going that’s the in behind budgets. with of and spent lot to there’s still time before they strongly one on part of mega the was a kind a where their XXXX real got That early North

DOTs, a those stay So big little – boost give busy counties work. don’t backlog contracts keep you generally shifting and they you Those our generally in because able but we’ve to private busy. markets to cities been and are a by but bit more very and smaller

as a think But DOT got to I I states, in outlook the the coming mega that far in up we projects next as our bid, projects any the to in outlook months of XX of we’ve don’t nine single project we’ve see recall. as seen

Josh Wilson

of the, what should there quarter weather like. here of, December note this seasonality were sort you last then And think, it. year, some to headwinds, pretty in significant anything Got of or representative, pretty look the is

Alan Palmer

usually our the revenue a of of this to in of annual much first I was revenue. low think, Yes, our XX% it quarter between closer XX.X% normal, guidance. the somewhere return percentage quarter, of this In end the and XX.X% annual is our was

December good Christmas start week, Year’s disruption more in due the had had We of a October typical. that middle we in and than unfavorable usual. New with of half then And the the falling the very December. some last weather and So of to November, really a was

a we lost momentum little So there.

overall, But say a was quarter. typical bigger first I’d it

Josh Wilson

talked past, up Alabama, back that for in in gas then the you’ve in terms the tax And of the your benefits ramping about still last those one half. me expectation? in Is

Charles Owens

Definitely.

the up what letting, and expected. projects cities got we that they’re and coming We’re seeing in March, February, that’s exactly counties

Josh Wilson

the with luck Good it. Got next quarter.

Charles Owens

you. Thank

Operator

Thank you.

next D.A. Newby Please with proceed your Davidson. from is Bill Our question. question with

Bill Newby

Good you questions. taking morning. for Thank my

Charles Owens

Bill. Yes,

Bill Newby

Charles, starting I see you touch bill you guess have do quickly. I now I into sight activity that if you you any at place. bidding up all, Alabama are have just to that haven’t, begin? market that transportation line on guess in wanted acceleration to in of guys pick when that might

Charles Owens

Yes. we’re is gas place money now, put seeing more Yes, the gas the being seeing tax tax to in and increase. related projects we’re

anticipate we go further. continue we to that as So

in. projects good in don’t And DOT, one kind versus money job you they through thing about before the when making that know, the Alabama a pretty it far place, you sure coming collect time first As do in short they with they put you you get too out, let something disguise go go you it. of a to need of period spend that’s

Bill Newby

year? on – there’s the mix in there IMO are are guess, asphalt you with since market place, dynamics shifting just I cost, that the of quickly beginning that around? are anything I’m seeing on wondering mix then XXXX in guess I moving just the asphalt cost kind and any the of

Charles Owens

of No, it. kind made we haven’t that’s at impact seen to all anything any us about really

As matter now. a fact, of I low right have these fueled back fairly think down

to just so to going anticipate it’s going any from have – that impact anything And our on don’t impact, that’s we business.

Ned Fleming

we’ll to have the when we cement those and where a this the year. asphalt field, That’s we seen winter, lower. the one prices store term extra what during try material the drop, will do winter we’ve normally reason that’s and is Bill, price

typical going as we kind think opposed fuel burn. to The expect Charles were as we’re about price to change, if the IMO has cement going before. there any area change much the of the call And it impact or what So I have in any on was diesel in anyway what the mentioned, been in and may we to ships really, to have big time, was to of prior much because the any talked more happens winter reaction asphalt of XXXX.

we’ve down spike. attribute diesel time. fact, price And China. at just of the lot on mid-November all seen that’s IMO that this we really of cost going oil have But would of trended more some have impact seen in to kind had after any XXXX in course, And and no is of and related a not we that really probably

Bill Newby

That’s helpful Thanks. it. appreciate it. Got great. guys. I Very

Ned Fleming

Yes.

Operator

Thank you.

question Bank Our question. from is a Lynch. Merrill with next America Feniger Please your proceed follow-up Michael with of

Michael Feniger

guys. Hey

try companies with Just looking to discuss the are it the a I’m the there? pipeline to you out that acquisitions, just Or your kind you, businesses kind already or quarters? and of you maybe last Thanks. quick risk get if on in family have curious discussions follow-up, addressed for of to the front played this. few you election with willing election of case guys seeing same accelerating pace of of apologies just is an

Charles Owens

This All right. is Charles. Michael. Thank you,

good big seeing employees these getting decisions to good We’re to is get with the is driver feel about this And things for having of normal year and they good people. as same the We pace. with sellers I’d it’s far someone now. make group to right Obviously, they just conversations – a as obviously, [indiscernible]. a we say lot pace very people. And But it’s steps. done because – positive the this for sure pretty want of a that of kind make do –

where So of that stands. that’s kind

Michael Feniger

Thanks guys.

Operator

time. questions Thank at appears this are there you. no It further

concluding management floor I’d comments. to So any over additional back pass the for to like

Charles Owens

I’d today our conference remain good to the everyone to with thank hope week. focused call, call everyone strategy, next and the I will forward on speaking all a you – we executing like on our Okay. and look and joining has for

Operator

Ladies participation. This does for and thank teleconference. today’s you conclude gentlemen, we your

this your a time, and day. disconnect may at lines You wonderful have

Construction Partners (ROAD) 7 Feb 202020 Q1 Earnings call transcript